A01_PWS for Tugboat_Revised_RD25.pdf

PERFORMANCE WORK STATEMENT (PWS)

MARITIME VESSEL – TUG BOAT

12TH LITTORAL LOGISTICS BATTALON (LLB)

1.0 BACKGROUND

The purpose of this Performance Work Statement (PWS) is to outline the requirement of a tug boat in support of Resolute Dragon 2025 (RD25), which is 12th Littoral Logistics Battalion (12th LLB) Initial Operational Capability (IOC) event. The requested vessel is in support of the Autonomous Low-Profile Vessel (ALPV). 12th LLB will pilot the ALPV from Okinawa to Amami-Oshima for MLR sensing efforts.

Once the ALPV travels to the Northernthe Northern side of Amami Oshima, the ALPV will route course to Tokunishima at Maedomari Fishing Port and conduct a re-supply. Upon completion of the Tokunishima resupply, the ALPV will conduct movement back to Okinawa (U.S. Naval Base, White Beach). The ALPV will refuel in Okinawa and conduct a long-range movement from Okinawa around Yonaguni, and return to Okinawa, Japan at U.S. Naval Base, White Beach. Currently, there is an administrative requirement to have the ALPV followed by a safety vessel capable of recovering it whenever it is in the water. The ALPV is primarily controlled from the Ground Control Station that can pilot the ALPV from anywhere in the world.

While entering and exiting ports, the ALPV is controlled by the in-person ALPV operators through the controller pack.

2.0 OBJECTIVE/SCOPE

12th LLB requires one safety vessel capable of tugging the 30,000lb that is required to follow the ALPV from Okinawa to Okinawa, Japan at U.S. Naval Base White Beach to Amami Oshima, to Tokunishima, and around the Sakishima Islands, looping in between Yonaguni and Irimote, and returning to Okinawa during RD25. The overall objective is to meet the administrative requirement of a safety vessel following in trace of the ALPV as it independently conducts the transit.

3.0 PERFORMANCE REQUIREMENTS:

3.1. The Contractor shall provide a safety vessel capable of making the transit from Okinawa to around Amami Oshima without port call.

3.2. The Contractor shall provide a safety vessel capable of making the transit from Amami Oshima to Tokunishima at Maedomari Port with an offload of cargo from the ALPV without port call.

3.3. The Contractor shall provide a safety vessel capable of making the transit from Tokunishima, Maedomari Port to Okinawa, Japan, U.S. Naval Base, White Beach with a port call.

3.4. The Contractor shall provide a safety vessel capable of making the transit from Okinawa, Japan, U.S.

Naval Base, White Beach Yonaguni, looping in between Yonaguni and Irimote, taking a route to the south of the Sakishima Islands with no port call and returning to Okinawa, Japan, U.S. Naval Base, White Beach.

3.5.3.4. The Contractor shall provide a safety vessel capable of tugging the 30,000lb (pounds) ALPV back to Okinawa if it breaks down in the open water during transit.

3.6.3.5. The Contractor shall provide licensed operator(s) with up-to-date vessel certificates in accordance with all local and required regulations.

3.7.3.6. The Contractor shall provide fuel, and any additional requirements needed to operate the tug boat, quoted price must be inclusive of all operating costs.

3.8.3.7. Riding Crew (other than contracted personnel). The Contractor shall facilitate the (5) five personnel aboard with their associated cargo (x1 Combat Rubber Raiding Craft 4.7 meters by 1.9 meters, 320 pounds) for the entire duration of the time. There will be no food or water provided to the five personnel. The government personnel will supply their own subsistence. The vendor shall have documentation stating the amount of people allowed to be on the ship and will provide the adequate safety equipment for the additional personnel.

3.9.3.8. Providing personnel (other than a riding crew) to go aboard. For the purpose of the resulting contract, the government representative shall be allowed to ride aboard the vessel during a government ordered emergency situation and or take over operations of the vessel in the event the contractor cannot support due to the nature of emergency or classification.

3.10.3.9. The Contractor shall provide an emergency telephone contact number that the Government can use to contact the Contractor during non-work hours (nights and weekends). The Contractor may provide the number of an answering machine or pager to receive such calls, provided the Contractor respond within two hours of the time that the Government places a call to the Contractors designated emergency number.

3.11.3.10. SERVICE DELIVERY SCHEDULE

The place and time of initial delivery and redelivery shall be as stated in the following box:

Period Delivery/Redelivery Commencement End Date

Port Date

Primary Naval Base White Beach, Okinawa

13 September 2025 22 September 202516 September 2025

Delivery.

(a) The vessel and all Associated Equipment shall be delivered in the condition described below to the Government at a port or place indicated above not later than 0800 hours local time (place of delivery) on the commencement date stated. The Contractor shall give written notice of readiness during office hours to the Government representative at the port or place of delivery. Government inspection of the Vessel shall be completed within a reasonable amount of time (4) hours, thereafter, not exceeding twelve (12) hours after proper tender of the notice of readiness. Government shall have the liberty to cancel this service at no cost to the Government should the vessel and/or Associated Equipment not be ready in accordance with the provisions hereof by the commencement date. Nothing in this paragraph shall limit any remedy of the Government otherwise available at Law, in Equity or under this Tug Services contract.

(b) Condition. The Vessel and all Associated Equipment shall be seaworthy, properly and efficiently manned and trained, equipped, supplied, and in every way suitable and adequately fitted for and in all respects ready for the service contemplated herein. Any Associated Equipment shall, upon delivery, be as described in this Vessel service contract and all equipment shall be operable. The Contractor shall exercise due diligence to maintain the Vessel and Associated Equipment in such state during the period of performance.

3.12.3.11. Redelivery. Unless lost, the Vessel shall be redelivered at a port or place stated in the contract. The Government shall notify Contractor of the place and date of redelivery no later than the time shown in the Performance Work Statement.

3.13.3.12. Authorized Vessels. There is a wide range vessel(s) used for performance of this contract.

Paragraph 3.14 provides the minimum characteristics for the type of vessel which may be used. The contractor must provide detailed vessel specifications in the responding quote, confirming that the vessel meets the minimum requirements, and the government accepts those specifications.

3.14.3.13. Vessel Specifications and Characteristics: The vessel must be capable of towing with the associated capacity for a 65-foot length, 8-foot width, and 30,000 pounds.

3.15.3.14. Substitution of Vessels: Once a vessel has been identified by the vendor, and accepted by the USMC, substitution of vessels is authorized, but only for good cause shown and upon proper notice to the Government Representative and approval of the Contracting Officer. Notice of intent to substitute by the Contractor shall identify the vessel being substituted and the vessel for which substitution is being made and shall provide the Government Representative with sufficient information on which to base a determination regarding good cause for substitution and the acceptability of the nominated substitute vessel. Notice shall be submitted in writing and shall be submitted sufficiently (4 hrs.) in advance to permit the Contracting Officer to make a reasoned determination regarding good cause and Government Representative approved substitute tug suitability. If unforeseen circumstances require oral notification, said notice shall provide all the above required information and shall include a statement of circumstances that preclude a written notice prior to substitution. Confirmation of the information given in an oral notice shall be submitted to the Contracting Officer/Government Representative in writing within forty-eight (48) hours of the giving of oral notification.

(a) The Contractor shall fix and deploy a substitute vessel within a period of six (6) hours of submission of notice of substitution or within six (6) hours of the commencement of any off hire whichever occurs first.

(See section entitled “Off-hire” below).

(b) Any vessel offered as a substitute shall meet the minimum specifications identified in 3.14 above and have substantially the same characteristics, i.e., shall be similarly fitted and otherwise equal or superior in performance. Any vessel substituted under this Clause shall result in no additional cost increase to the Government and substitution shall result in no operation delay for Charterer except as provided above. It shall not otherwise excuse any other performance required under this PWS.

(c) Government Representative notice of acceptance or rejection of the substitute tug shall be made within reasonable time (4 hrs.) not to exceed 6 hrs. Following Contractor’s nomination thereof, provided that the Government Representative have furnished sufficient information on which to base such a determination.

Silence of the Government Representative shall not be construed as acceptance of any nominated tug.

(d) Notwithstanding the Government Representative prior acceptance of any substitute tug under this paragraph, the Government may at any time reject any previously accepted substitute vessel if it is determined that the characteristics of that substitute tug were misrepresented by the Contractor or are otherwise unsuited to the requirements of this contract.

3.16.3.15. Vessel Complement and Crew:

(a) Vessel personnel shall have at least (1) English speaking member aboard. The Master, Officers and crew of the vessel(s) shall be appointed or hired by the Contractor and shall be deemed to be the servants and agents of the Contractor at all times except as otherwise expressly specified in this contract.

(b) Physical security equipment required to meet port security plans shall be Contractor-furnished

(c) All contractor employees shall have in their possession photo identification at all times when working under this service contract.

(d) If the Government shall have reason to be dissatisfied with the conduct or performance of the Master, Officers, or crew, the Contractor shall, on receiving particulars of the complaint, investigate the matter and, if necessary to alleviate the cause of the complaint, make a change in personnel.

(e) Security Clearances. Reference section 8.0 Contractor Qualifications/requirements

3.17. Typical Services

(a) The following list is provided for illustrative purposes only and describes some of the services that may be performed as requested on the basis of a 24 hour per day readiness, including but not limited to:

i. Mooring, berthing, docking, streaming, shifting, and assisting CRRCs/RHIBs when applicable.

ii. Transfers of pilots and Government Personnel (other than a riding crew) to go aboard a vessel.

iii. Emergency support services, including responses to weather conditions threatening government units ashore, or other medical emergencies.

(b) Contractor shall provide adequate staff and communications to promptly respond to Government's requests for services under this contract on a 24-hour per day basis

3.18. Other Services, Responsibilities, Plans and Reports:

(a) INCIDENT REPORTS. In all instances in which any vessel being handled by Owner’s vessel results in damage to government property or bodily injury or death, Owner shall secure a report from the Officer acting as pilot, and from any licensed pilot aboard the vessel being handled. Contractor shall submit said report to the Contracting Officer within 1 hour following said incident, reporting the facts, listing deaths, reporting the extent of damages to property and any bodily injuries, and listing recommendations to prevent recurrence.

(b) Requests for services within the scope but not outlined in the vessel service contract may be issued only by Contracting Officer

3.19. Off Hire:

(a) General: In the event of the loss of time resulting from deficiency and/or default of employee (workers) including but not limited to misconduct, illness, injury, strikes, labor disruptions, lockouts; deficiency of stores; fire; breakdown of or damage to hull, machinery, or equipment; collision; stranding; grounding;

detention by authorities; average accidents to Vessel or cargo unless resulting from inherent vice, quality, or defect of the cargo; repairs; inspections; all dry-dockings including those for the purpose of examination/inspection or painting bottom but not for those dry-dockings under the Alterations clause contained herein; or deviation for the purpose of landing any ill or injured person on board other than any passenger, supercargo, or military personnel who may be carried at Governments request; or by any other cause whatsoever preventing the full working of the Vessel, the payment of hire shall cease for all time lost until the Vessel is again, at a position not less favorable to the Government than that at which such loss of time commenced, ready and in a fully efficient state to resume its service. Should the Vessel deviate or put back during a voyage contrary to the orders or directions of the Government for any reason, the hire is to be suspended from the time of deviating or putting back until it is again, at a position not less favorable to the Government than that at which such loss of time commenced, ready and in a fully efficient state to resume her service. When the period of time lost to the Government on any one occasion is less than two (2) consecutive hours, the hire shall not be reduced for such period, provided no missions were missed during that period of time.

(b) Cost for Contractor: The cost of fuel consumed while the Vessel is off hire, as well as all port charges, pilotages, and other expenses incurred during such period and consequent upon the putting in to any port or place other than that to which the Vessel is bound, shall be borne by the Owner. All fuel used by the Vessel being driven into port or to shallow harbors or to rivers or ports with bars, or during transit periods when contracted time begins, the delay of the Vessel and/or expenses resulting there from shall be for Government’s account.

(c) Delays/Excessive Fuel Consumption. If upon any passage the Vessel fails to make the warranted speed or if warranted fuel consumption exceeds that offered due to defect in or breakdown of any part of the hull, machinery, or equipment; casualty; or inefficiency of Master, Officers, or crew or their failure to proceed with utmost dispatch, and if the Vessel is delayed more than two (2) hours, provided no training value was missed during that period of time, the hire for the time lost and any cost of extra fuel consumed, if any, shall be borne by the Contractor.

3.20. Loss of Vessel: Should a vessel be either lost or missing, or become a constructive total loss, the portion of the charter for such vessel shall terminate and hire shall cease to be payable at the time of the loss or, if said time is unknown, at the time of the vessel’s last received communication. If the vessel should be off hire or missing when a payment of hire would otherwise be due, such payment shall be postponed until the off-hire period ceases or the safety of the vessel is ascertained, as the case may be.

3.21. Waiving of Salvage Claim: In providing these services, the contractor, agrees to waive all claims for salvage “award”, “pure” or “bonus” salvage for any assistance to the vessel being escorted.

4.0 PLACE OF PERFORMANCE

4.1 The place of performance shall be in the geographical region of Southwest Island chain of Japan and the surrounding navigable waters, including from Naval Base, White beach to Amami Oshima, Tokunishima to the Sakishima Islands. Within this geographical region, the vessel may be ordered to transit at various speeds, directions, and distances based on the need the Government may direct, provided the vessel can lie always afloat except in harbors or waters where it is customary and safe in the port to work aground.

5.0 PERIOD OF PERFORMANCE

5.1. This period of performance is 13 to 22 16 September 2025, exact execution in the time period will be dictated by sea-state.

5.2 Vessel Period - Shall be for the periods designated in section 5.1 above, commencing upon the date shown or the Governments acceptance of the vessel, whichever occurs later, and continuing until either the date of completion or the completion of the voyage then current, at the Government’s sole option.

5.3. TIME LOST - Tacking to the End of vessel period. Any time lost by the Vessel during the period of performance (POP) (including during any option period) due to breakdown of machinery, interference by authority, collision, stranding, fire or other accidents or damage to the Vessel; or repairs, inspections, overhaul and alterations, preventing the work of the Vessel, shall be added to the vessel period at Government's sole option, declarable at least five (5) hours prior to the termination of the charter period. Hire for such additional declarable period shall be at the same rate as in effect as of the date said declaration was made.

5.4. Excessive Time Lost. The Government may by written notice cancel this Contract at no cost to the Government whenever, in any given 1-day period, for any reason whatsoever, more than six (6) hours are lost.

5.5. Relationship to Other Remedies. No remedy conferred by this paragraph upon the Government is intended to be exclusive of any other remedy, but every such remedy shall be cumulative and shall be in addition to every other remedy already conferred by this vessel services contract now or hereafter existing at Law or in Equity or by statute.

6.0 GOVERNMENT FURNISHED PROPERTY AND SERVICES

6.1. MATERIALS & EQUIPMENT. The Government will provide equipment required for piloting the ALPV. The Government will not provide equipment required for tugging the ALPV.

6.2. GENERAL SERVICES. The Government will not provide any general services.

6.3. FACILITIES & UTILITIES. The Government will provide a suitable pier side location at Naval Base, White Beach for the on load of personnel and supplies.

7.0 QUALITY ASSURANCE

7.1. The Contractor is responsible for implementing and maintaining a Quality Control Program (QCP) to ensure that the work performed meets or exceeds contract requirements and results in the correction of potential and actual problems. The QCP shall be implemented on the first day of contract performance and shall describe what will be reviewed and outline actions to be taken by the Contractor, should review(s) and/or inspections identify areas requiring remedial action.

7.2. Notwithstanding the Contractor’s QCP, the Government will administer a Performance Risk Summary (PRS) as part of this PWS. The PRS shall outline what deliverables will be surveyed by the Government and the method and periodicity of surveillance to ensure the quality of deliverables as outlined in this PWS.

7.3. Periodic Progress Meetings: The Government Representative, as appropriate may meet with the Contractor to review the Contractor's performance. At this meeting(s), the Government Representative will apprise the Contractor of how the Government views the Contractor's performance and the Contractor will apprise the Government of problems, if any, being experienced. Appropriate action shall be taken to resolve outstanding issues. These meetings shall be at no additional cost to the government.

8.0 CONTRACTOR QUALIFICATIONS/REQUIREMENTS

8.1. The Contractor shall provide trained personnel fully capable of providing the deliverables requested and have the knowledge, skills and expertise to meet the requirements specified in this PWS. All work performed shall be in accordance with Federal, and local laws, regulations and procedures.

8.2. Security Requirements: This contract does not require a security clearance level and clearance granted by the Defense Security Service (DSS). Should contractor personnel receive or suspect they have learned of classified information beyond their level of clearance, the Contractor shall identify and report suspicions to the Government Representative.

8.3. U.S. Citizenship is not required for facility access. The Contractor shall provide proof of compliances with this requirement upon request of the Government Representative.

8.4. Base Access: Personnel will not be permitted to access Naval Base, White Beach aside from pier side mooring to embark government personnel and supplies.

9.0 CONTRACTOR PERSONNEL

9.1. The Contractor shall furnish sufficient personnel to perform all work specified within this PWS. Services shall be provided during the times outlined herein except Federal holidays or when the Government facility is closed due to local or national emergencies, administrative closings, or similar Government directed facility closings. The Contractor must at all times maintain an adequate work force for the uninterrupted performance of all tasks defined within this PWS when the Government facility is not closed for the above reasons.

9.2. OPERATING HOURS: Government normal operating hours are between 6:30 AM to 3:30 PM Monday through Friday, excluding Federal holidays and weekends.

(a) Federal Holidays (US):

New Year’s Day - 1st of January Dr. Martin Luther King’s Birthday - 3rd Monday in January President’s Day - 3rd Monday in February Memorial Day - 5th Monday in May Juneteenth - 19th of June Independence Day - 4th of July Labor Day - 1st Monday in September Columbus Day - 2nd Monday in October Veteran’s Day - 11th of November Thanksgiving Day - 4th Thursday in November Christmas Day - 25th of December

(b) If the federal holiday falls on a Saturday, the holiday is observed on the proceeding Friday. If the federal holiday falls on a Sunday, the holiday is observed on the following Monday.

9.3. When performing work associated with this PWS, the Contractor shall make clear to all individuals they deal with that they are Contractor employees and not DOD personnel when working in any situation where their contractor status is not obvious to third parties. Contractor employees shall clearly identify themselves as a Contractor (i.e. company shirt, pin, visible company identification, etc.) in a visible location as to who their employer is, to avoid creating an impression that they are government personnel.

9.4. Contractor personnel shall not manage, supervise, direct, or task US military, DOD civilians or other personnel not associated with the Contractor while performing the tasks within this PWS.

9.5. Contractor personnel shall not make any commitment which commits the expenditure of US Government resources.

9.6. The Contractor performing services shall be required to comply with all US Navy/US Government rules, regulations, and training that is applicable to conduct, safety, security, and procedures governing site entry and exit.

9.7. Contractor personnel shall not establish an employee-employer relationship with any DOD activities under this PWS.

9.8. The Contractor shall not provide personal services to DOD activities. If Contractor employees are directed by any government employee at any time to perform services not covered under this contract, the Contractor shall immediately notify the Contracting Officer.

9.9. All Contractor personnel who show evidence of any type of reportable infection shall not be permitted to perform work under this contract until such deficiencies are corrected. CDC guidelines must be adhered to;

personnel with any suspected communicable diseases must present medical clearance by a physician acceptable to medical authority before performing work under this contract. Removal or dismissal for such cause does not relieve the Contractor of the requirement to provide sufficient personnel to adequately perform the services specified.

10.0 INSURANCE

10.1 Vessel Owner’s Insurance. The Vessel Owner shall maintain marine insurance coverage on the Vessel on each vessel, if more than one, performing under this Contract, Hull and Machinery, Protection and Indemnity (P&I), Pollution Liability, War Risk Hull and Machinery, War Risk P&I, Second Seamen's War Risk and Government Personnel Training Insurance (shall cover hands-on operation of the vessel equipment by Government personnel while training to operate the vessel under the Emergency Situations and Training clause) if applicable to Japanese law. Except as otherwise provided in this Contract, the expense for such insurance coverages shall be for the Owner's account and shall be deemed to be included in the hire payable under this Contract. Except as provided herein, the Owner shall be responsible for the cost of such insurance, including deductibles, premia, additional premia, calls, commissions, advancements, assessments, and overspill claims where applicable. Within 5 calendar days following award of the contract, the Owner shall notify the Contracting Officer in writing that the required insurance has been obtained.

10.2 Limitation of Liability. Except as otherwise specifically provided herein, the Government shall not be liable for any loss, damage, expense, cost, or liability whatsoever and howsoever incurred by the Vessel’s Owner or Vessel, or which are imposed upon the Vessel’s Owner or Vessel by operation of law. Any Amount due the Vessel’s Owner under paragraph (10.1) shall be subject to set off by Government to the extent of any amount recovered under insurance carried by the Vessel’s Owner, or to the extent of any amount recoverable under insurance required by paragraph (10.1).

10.3 Cancellation or Material Change in Coverage. All policies shall contain an endorsement stating that “in the event of cancellation or any material change in policies adversely affecting the interest of the Government in such insurance, the cancellation or change shall not be effective until 30 days after written notice thereto the Contracting Officer.” Wording such as “will endeavor to mail notice” or “failure to mail such notices shall impose no obligation or liability” is not acceptable.

10.4 Government Named Assured. The United States of America shall be named as an additional assured with waiver of subrogation under the Vessel’s Broad Form Tower’s Liability policy, Tower’s P&I policy, Hull and Machinery policy (and the Increased Value policy if applicable), the Vessel’s P&I entry, any additional pollution liability coverage, the Vessel’s War Risk Hull and Machinery policy including P&I, and Second Seaman’s War Risk.

11.0 WAR

11.1 Voyage Instructions. If the Vessel is ordered under this Contract to any port, place, or zone involved in a state of war, warlike operations or hostilities, civil strife, or piracy (whether there be a declaration of war or not) where it might be reasonably expected to be subject to capture, seizure, arrest, or hostile act by a belligerent power (whether de facto or de jure), pirate, or terrorist, it shall be unreasonable for the Owner not to prosecute said voyage if insurance against said risks is then available commercially or under a Government program, or if the Government offers the Owner indemnification against said risks pursuant to Public Law 85-804.

11.2 The Vessel Owner shall immediately notify the Government: (i) whenever any sailing orders will result in a vessel subject to this contract being sent beyond the limits of the War Risk Trading Warranties of insurance policies required under this contract (to include entry into a war risk exclusion zone or when the vessel will enter, sail for, or deviate towards the territorial waters of any of the Countries or places, or any other waters described in the Lloyd’s Joint War Committee’s current List of Areas of Perceived Enhanced Risk); (ii) if there are any changes to the War Risk Trading Warranties of insurance policies required under this contract (including changes to the exclusion zones or the List of Areas of Perceived Enhanced Risk) or changes to War Risk premiums, charges, or deductibles; or (iii) whenever additional premium charges or costs will be incurred as a direct result of compliance with any sailing orders issued by the Government under this contract. The Owner shall ensure that the insurers provide it relevant information in a timely manner. If the Owner has given this required notice to the Government, the Government will reimburse the Vessel’s Owner for the increase in costs (if any) of insurance premiums, charges, or deductibles which arise from the vessel sailing beyond the applicable War Risk Trading Warranties (including changes to the war risk exclusion zones) when entry into any exclusion zone or Area of Perceived Enhanced Risk under such insurance has been approved in advance by the Government. The issuance of sailing orders, by itself, does not constitute approval in advance by the Government. The Government may give the Vessel’s Owner notice and instructions concerning suspension of commercial War Risk insurance coverage and substitution of Government indemnity or Government War Risk insurance as detailed in the section entitled “Government War Risk Insurance/Indemnity” below.

11.3 Additional Wage Costs. The Government shall reimburse Owner for the cost of provable additional master and crew wages (including all additional bonuses and payments required) to the extent that such additional costs arise directly from exposure of the Vessel, and/or Vessel’s master and crew, to the risks described in the paragraph entitled “Voyage Instructions” above. However, any of said wages or payments shall not exceed in amount that which would be payable, under applicable laws and regulations, to U.S. civil service mariners in the employ of the Military Sealift Command in a similar port, place, zone, or route.

Vessel’s Owner shall notify Government of all anticipated additional wage costs prior to entering any location which would trigger such additional costs; and no such costs shall be reimbursable unless Government, after notification of such costs, provides approval to enter such location.

12.0 GOVERNMENT WAR RISK INSURANCE/INDEMNITY

12.1 General. Upon receipt of notice and instruction from the Contracting Officer, as specified in the last sentence of paragraph 11.2 above, with respect to any area excluded by the War Risk Trading Warranties or included by the Lloyd’s Joint War Committee on the Hull War, Strikes, Terrorism and Related Perils Listed Areas (also known as Listed Areas of Perceived Enhanced Risk) under the Vessel’s Owner’s commercial War Risk coverage, the vessel’s Owner shall, as soon as practicable, contact its insurance brokers or underwriters and arrange for the suspension of its commercial War Risk insurance upon entry of the vessel into, or extension of stay of the vessel in such area(s), or when the vessel will enter, sail for, or deviate towards the territorial waters of any of the Countries or places, or any other waters described in the Lloyd’s Joint War Committee’s current Listed Areas of Perceived Enhanced Risk, as the case may be, subject to resumption of its commercial War Risk insurance upon exiting such area(s). In such instances, the vessel’s Owner shall accept the Government’s indemnity or War Risk insurance, whichever is applicable, in lieu of such commercial War Risk insurance. The Vessel’s Owner shall ensure that the suspension of its commercial War Risk coverage is coincident with the time that any Government indemnity or War Risk insurance becomes effective and shall likewise ensure that its commercial War Risk insurance is resumed at the time when any Government indemnity or War Risk insurance becomes ineffective. The Owner shall retain the same risks, such as deductibles (if any), that it has under its commercial insurance.

12.2 Government War Risk Insurance. Under the authority of 46 U.S.C. § 53905, the United States Maritime Administration (MARAD), at the request of Commander, Military Sealift Command, may furnish the following war risk insurance coverage, which will be effective during the vessel’s transit under this Contract in areas which are in war risk exclusion zones, or waters described in the current Lloyd’s Joint War Committee Listed Areas of Perceived Enhanced Risk, or otherwise excluded under the Owner’s commercial marine War Risk trading warranties, and which are designated by notice from the Contracting Officer to the Owner:

(a) War Risk Protection and Indemnity insurance covering all liabilities up to an amount of $250,000,000.

(b) War Risk Second Seaman’s coverage, the principal sum of which shall be $200,000 per Crew Member for loss of life.

12.3 Government Indemnity. Under the authority of Public Law 85-804 (72 Stat. 972, August 28, 1958) and Executive Order 10789, as amended by Executive Order 11610, the Secretary of Defense or the Secretary of the Navy may authorize the Contracting Officer to indemnify the Owner against loss from risks that would be covered by MARAD war risk coverage as set forth in the paragraph entitled “Government War Risk Insurance” directly above.

13.0 POINTS OF CONTACT AND AUTHORITIES

The Contracting Officer is the only person authorized to approve any changes to the requirements of this contract and not withstanding provisions contained elsewhere in this contract, the authority remains solely with the Contracting Officer. 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 contract price as a result of the change.

14.0 EXEMPTION FROM JAPANESE TAXES.

Pursuant to the United States (U.S.) – Japan Status of Forces Agreement and the Joint Committee, the governments of the United States and Japan have agreed that the procurement in Japan of materials, supplies, equipment and services for official purposes may be exempt from certain Japanese taxes. When incorporated, DFARS Clause 225.229-7001 ‘TAX RELIEF’ stipulates that contract/order pricing shall not include the Consumption Tax. Submission of, and/or incorporation into the contract of, your offer, certifies that pricing does not contain any cost related to the Consumption Tax. Questions concerning this matter should be directed to your local Japanese Tax Office.

15.0 PERFORMANCE REQUIREMENTS SUMMARY (PRS)

Task or Deliverable

Performance Standard

Acceptance Quality Level

Surveillance Method

Performance Measure

Performance Objectives

PWS 3.0

The performance standard will be met when the requirements for transportation/safety of equipment detailed in PWS 3.0 and have been accepted by the Government.

Acceptable performance has been met when 100% of the equipment has been delivered safely in accordance with PWS.

Customer feedback, Contracting Officer/Government Point of Contact surveillance or feedback of work completed

Accordance with

PWS

Maintain safety and secure operations

Contractor shall comply with all safety and security inspection and identification check for entering port areas as detailed in the PWS 100% of the time. No deviations are permitted.

Acceptable performance has been met when 100% of the equipment has been delivered safely in accordance with PWS.

Customer feedback, Contracting Officer/Government Point of Contact surveillance or feedback of work completed

Accordance with

PWS

Provide tugboat and operators meeting all licensing, certification and operational requirements contained in the

PWS.

Tugboat craft must be in compliance with all requirements in the PWS 100% of the time. Operator licenses and boat certificates must remain current and valid at all times in accordance with the PWS. No deviations are permitted.

Acceptable performance has been met when 100% of the equipment has been delivered safely in accordance with PWS.

Customer feedback, Contracting Officer/Government Point of Contact surveillance or feedback of work completed

Accordance with

PWS

(End of Performance Work Statement)