Third_DRAFT_M67854-15-R-0001.doc

Section B - Supplies or Services and Prices

Lot

EMD Design and Developement

FPI

EMD Phase shall be performed in accordance with (IAW) the Amphibious Combat Vehicle Attachment J: Statement of Work ACV-SOW-03001

Ceiling Price 120%

Share Ratio Above Target 50%

Share Ratio Below Target 50%

FOB: Destination

TARGET COST

TARGET PROFIT

TOTAL TARGET PRICE

CEILING PRICE

SHARE RATIO ABOVE TARGET

SHARE RATIO BELOW TARGET

EMD Vehicles

FPI

EMD Vehicles shall be performed in accordance with (IAW) the Amphibious Combat Vehicle Attachment J: Statement of Work ACV-SOW-03001.

Ceiling Price 120%

Share Ratio Above Target 50%

Delivery Incentive

FFP

The Delivery Incentive shall be performed IAW with the Amphibious Combat Vehicle Section J, Attachment #1: Statement of Work (SOW) ACV-SOW-03001 and Section H.4 Delivery Incentive.

Note: This CLIN can only be paid upon execution of a modification by the Contracting Officer.

NET AMT

Contract Data Requirements List

CDRLs shall be performed IAW with the Amphibious Combat Vehicle Section J, Attachment #1: Statement of Work (SOW) ACV-SOW-03001.These CDRLs are not seperately priced (NSP).

NET AMT

FPI

EMD Vehicles shall be performed IAW with the Amphibious Combat Vehicle Section J, Attachment #1: Statement of Work (SOW) ACV-SOW-03001.

Ceiling Price 120%

Share Ratio Above Target 50%

FPI

EMD Design and Developement shall be performed IAW with the Amphibious Combat Vehicle Section J, Attachment #1: Statement of Work (SOW) ACV-SOW-03001.

Ceiling Price 120%

Share Ratio Above Target 50%

CPFF

EMD Test Support shall be performed IAW with the Amphibious Combat Vehicle Section J, Attachment #1: Statement of Work (SOW) ACV-SOW-03001.

ESTIMATED COST

FIXED FEE

TOTAL EST COST + FEE

FPI

Corrective Action Mods for EMD Vehicles shall be performed IAW with the Amphibious Combat Vehicle Section J, Attachment #1: Statement of Work (SOW) ACV-SOW-03001.

Ceiling Price 120%

Share Ratio Above Target 50%

Lot

CPFF

Logistics Management shall be performed IAW with the Amphibious Combat Vehicle Section J, Attachment #1: Statement of Work (SOW) ACV-SOW-03001.

CPFF

Studies/Advanced Capability Improvements shall be performed IAW with the Amphibious Combat Vehicle Section J, Attachment #1: Statement of Work (SOW) ACV-SOW-03001. Studies/Advanced Capability Improvements must be conducted IAW Technical Instruction Procedures identified in Section H.X.

FFP

Vehicle Disposition for the Contractor not selected to proceed into LRIP shall be performed IAW with the Amphibious Combat Vehicle Section J, Attachment #1: Statement of Work (SOW) ACV-SOW-03001.

NET AMT

FPI

EMD Design & Development Post Down-Select shall be performed IAW with the Amphibious Combat Vehicle Section J, Attachment #1: Statement of Work (SOW) ACV-SOW-03001.

Ceiling Price 120%

Share Ratio Above Target 50%

CPFF

EMD Test Support Post Down-Select shall be performed IAW with the Amphibious Combat Vehicle Section J, Attachment #1: Statement of Work (SOW) ACV-SOW-03001.

Lot

FPI

LRIP Lot 1 Vehicles shall be delivered IAW with the Amphibious Combat Vehicle Section J, Attachment #1: Statement of Work (SOW) ACV-SOW-03001.

Ceiling Price 110%

Share Ratio Underrun 20%

Share Ratio Overrun 80%

2001AA

FPI

FUSL Vehicles shall be delivered IAW with the Amphibious Combat Vehicle Section J, Attachment #1: Statement of Work (SOW) ACV-SOW-03001.

Ceiling Price 110%

Share Ratio Underrun 20%

2001AB

FPI

Production Vehicles shall be delivered IAW with the Amphibious Combat Vehicle Section J, Attachment #1: Statement of Work (SOW) ACV-SOW-03001.

Ceiling Price 110%

Share Ratio Underrun 20%

Lot

FPI

Other Production Related Costs for LRIP Lot 1 shall be performed IAW with the Amphibious Combat Vehicle Section J, Attachment #1: Statement of Work (SOW) ACV-SOW-03001.

Ceiling Price 110%

Share Ratio Underrun 20%

2002AA

FPI

Developement funded efforts for LRIP Lot 1 shall be performed IAW with the Amphibious Combat Vehicle Section J, Attachment #1: Statement of Work (SOW) ACV-SOW-03001.

Ceiling Price 110%

Share Ratio Underrun 20%

2002AB

FPI

Procurement funded efforts for LRIP Lot 1 shall be performed IAW with the Amphibious Combat Vehicle Section J, Attachment #1: Statement of Work (SOW) ACV-SOW-03001.

Ceiling Price 110%

Share Ratio Underrun 20%

Lot

FPI

Fielding and Support Costs for LRIP Lot 1 shall be performed IAW with the Amphibious Combat Vehicle Section J, Attachment #1: Statement of Work (SOW) ACV-SOW-03001.

Ceiling Price 110%

Share Ratio Underrun 20%

2003AA

FPI

Development Funded Efforts for LRIP Lot 1shall be performed IAW with the Amphibious Combat Vehicle Section J, Attachment #1: Statement of Work (SOW) ACV-SOW-03001.

Ceiling Price 110%

Share Ratio Underrun 20%

2003AB

FPI

Procurement Funded Efforts for LRIP Lot 1 shall be performed IAW with the Amphibious Combat Vehicle Section J, Attachment #1: Statement of Work (SOW) ACV-SOW-03001.

Ceiling Price 110%

Share Ratio Underrun 20%

CPFF

LRIP Reset Test Vehicles shall be performed IAW with the Amphibious Combat Vehicle Section J, Attachment #1: Statement of Work (SOW) ACV-SOW-03001.

FPI

LRIP Lot 2 Vehicles shall be delivered IAW with the Amphibious Combat Vehicle Section J, Attachment #1: Statement of Work (SOW) ACV-SOW-03001.

Ceiling Price 110%

Share Ratio Underrun 20%

FPI

Other Production Related Costs for LRIP Lot 2 shall be performed IAW with the Amphibious Combat Vehicle Section J, Attachment #1: Statement of Work (SOW) ACV-SOW-03001.

Ceiling Price 110%

Share Ratio Underrun 20%

FPI

Fielding & Support Costs for LRIP Lot 2 shall be performed IAW with the Amphibious Combat Vehicle Section J, Attachment #1: Statement of Work (SOW) ACV-SOW-03001.

Ceiling Price 110%

Share Ratio Underrun 20%

FPI

FRP Lot 1 Vehicles shall be delivered IAW with the Amphibious Combat Vehicle Section J, Attachment #1: Statement of Work (SOW) ACV-SOW-03001.

Ceiling Price 110%

Share Ratio Underrun 20%

Share Ratio Overrun 80%

This CLIN shall be priced as an NTE. Contractors will be allowed to adjust the price from the proposed NTE at downselect.

FPI

Other Production Related Costs for FRP Lot 1 shall be performed IAW with the Amphibious Combat Vehicle Section J, Attachment #1: Statement of Work (SOW) ACV-SOW-03001.

Ceiling Price 110%

Share Ratio Underrun 20%

Share Ratio Overrun 80%

This CLIN shall be priced as an NTE. Contractors will be allowed to adjust the price from the proposed NTE at downselect.

FPI

Fielding & Support Costs for FRP Lot 1 shall be performed IAW with the Amphibious Combat Vehicle Section J, Attachment #1: Statement of Work (SOW) ACV-SOW-03001.

Ceiling Price 110%

Share Ratio Underrun 20%

Share Ratio Overrun 80%

This CLIN shall be priced as an NTE. Contractors will be allowed to adjust the price from the proposed NTE at downselect.

FFP

Develop Depot Data & Depot Support Products shall be performed IAW with the Amphibious Combat Vehicle Section J, Attachment #1: Statement of Work (SOW) ACV-SOW-03001.

This CLIN shall be priced as an NTE. Contractors will be allowed to adjust the price from the proposed NTE at downselect.

NET AMT

FPI

FRP Lot 2 Vehicles shall be delivered IAW with the Amphibious Combat Vehicle Section J, Attachment #1: Statement of Work (SOW) ACV-SOW-03001.

Ceiling Price 110%

Share Ratio Underrun 20%

Share Ratio Overrun 80%

This CLIN shall be priced as an NTE. Contractors will be allowed to adjust the price from the proposed NTE at downselect.

FPI

Other Production Related Costs for FRP Lot 2 shall be performed IAW with the Amphibious Combat Vehicle Section J, Attachment #1: Statement of Work (SOW) ACV-SOW-03001.

Ceiling Price 110%

Share Ratio Underrun 20%

Share Ratio Overrun 80%

This CLIN shall be priced as an NTE. Contractors will be allowed to adjust the price from the proposed NTE at downselect.

FPI

Fielding and Support Costs for FRP Lot 2 shall be performed IAW with the Amphibious Combat Vehicle Section J, Attachment #1: Statement of Work (SOW) ACV-SOW-03001.

Ceiling Price 110%

Share Ratio Underrun 20%

Share Ratio Overrun 80%

This CLIN shall be priced as an NTE. Contractors will be allowed to adjust the price from the proposed NTE at downselect.

FPI

FRP Lot 3 Vehicles shall be delivered IAW with the Amphibious Combat Vehicle Section J, Attachment #1: Statement of Work (SOW) ACV-SOW-03001.

Ceiling Price 110%

Share Ratio Underrun 20%

Share Ratio Overrun 80%

This CLIN shall be priced as an NTE. Contractors will be allowed to adjust the price from the proposed NTE at downselect.

FPI

Other Production Related Costs for FRP Lot 3 shall be performed IAW with the Amphibious Combat Vehicle Section J, Attachment #1: Statement of Work (SOW) ACV-SOW-03001.

Ceiling Price 110%

Share Ratio Underrun 20%

Share Ratio Overrun 80%

This CLIN shall be priced as an NTE. Contractors will be allowed to adjust the price from the proposed NTE at downselect.

FPI

Fielding & Support Costs for FRP Lot 3 shall be performed IAW with the Amphibious Combat Vehicle Section J, Attachment #1: Statement of Work (SOW) ACV-SOW-03001.

Ceiling Price 110%

Share Ratio Underrun 20%

Share Ratio Overrun 80%

This CLIN shall be priced as an NTE. Contractors will be allowed to adjust the price from the proposed NTE at downselect.

FFP

Production Line Shut Down shall be performed IAW with the Amphibious Combat Vehicle Section J, Attachment #1: Statement of Work (SOW) ACV-SOW-03001.

This CLIN shall be priced as an NTE. Contractors will be allowed to adjust the price from the proposed NTE at downselect.

NET AMT

Section C - Descriptions and Specifications

INSTRUCTIONS

SOW

The Contractor shall perform in accordance with the Amphibious Combat Vehicle (ACV) 1.1 Attachment 1, Statement of Work (SOW) document # ACV-SOW-03001 Version 0.3 dated 13 March 2015.

Section D - Packaging and Marking The Contractor shall follow Packaging and Marking instructions as described in ACV-SOW-03001 and ACV-SPE-02003.

Section E - Inspection and Acceptance

CLAUSES INCORPORATED BY REFERENCE

INSPECTION/ACCEPTANCE

NOTE 1: Interim acceptance of the 16 EMD (QTY 13 CLIN 0002, QTY 3 CLIN 0005) vehicles shall be conducted at the Contractor's facility and be approved by the Government. Interim acceptance shall not apply to the 2 Live Fire (LF) EMD vehicles. Interim Acceptance applies to the remaining EMD vehicles. A DD250 for the non-LF EMD vehicles will not be completed at interim acceptance. The Contractor shall follow the instructions in SOW 3.4.7.5 for interim acceptance:

A DD250 shall be completed for the non-LF EMD vehicles from the Contractor with an exercised option to proceed into Low Rate Initial Production (LRIP). A DD250 shall be completed for the Contractor that does not have an exercised option to proceed into LRIP in accordance with SOW paragraph 3.8.

NOTE 2: Interim acceptance shall be conducted at the Contractor's facility and be approved by the Government. The Contractor shall follow the instructions in SOW 3.4.7.5 for interim acceptance:

After interim acceptance of the four (4) FUSL LRIP vehicles and delivery to the Government designated Full Up System Live Fire (FUSL) Test Site, a DD250 for the FUSL LRIP vehicles will be signed. The Government will sign a DD250 for all remaining non - FUSL LRIP vehicles upon their delivery to their respective USMC Operating Force units. Vehicles used during IOT&E will not receive a DD250 until after they have been RESET and delivered to their respective USMC Operating Force units.

NOTE 3: Interim acceptance shall be conducted at the Contractor's facility and be approved by the Government. The Contractor shall follow the instructions in SOW 3.4.7.5 for interim acceptance:

The Government will sign a DD250 for FRP vehicles upon their delivery to their respective USMC Operating Force units with the exception of those vehicles designated to be delivered to USMC Operating Force units outside of the Continental United States (OCONUS). The OCONUS designated vehicles will receive their signed DD250s at the Port of Departure.

Section F - Deliveries or Performance

NOTE

CLIN 0002

The Contractor shall deliver 13 EMD vehicles in accordance with the following schedule:

· Quantity (QTY) 4 EMD vehicles delivered No Later Than (NLT) 2 January 2017

· QTY 4 EMD vehicles delivered NLT 1 February 2017

· QTY 5 EMD vehicles delivered NLT 1 March 2017

CLIN 0005

If OPTION CLIN 0005 is exercised, the Contractor shall deliver QTY 3 EMD vehicles between 13-16 months after option exercise.

subCLINs 2001AA and 2001AB

The Contractor shall deliver LRIP lot 1 vehicles, including the four FUSL vehicles, in accordance with the following schedule:

· QTY 4 FUSL Vehicles delivered NLT 10 months after Milestone C approval

· QTY 4 LRIP Lot 1 Vehicles delivered NLT 11 months after Milestone C approval

· QTY 8 LRIP Lot 1 Vehicles delivered NLT 12 months after Milestone C approval

· QTY 1 LRIP Lot 1 Vehicles delivered NLT 12 months after Milestone C approval. This vehicle shall remain in place at the Contractor’s facility until disposition is provided by the Government.

· QTY 9 LRIP Lot 1 Vehicles delivered NLT 13 months after Milestone C approval.

· QTY 1 LRIP Lot 1 Vehicles delivered NLT 13 months after Milestone C approval. This vehicle shall remain in place at the Contractor’s facility until disposition is provided by the Government.

· QTY 3 LRIP Lot 1 Vehicles delivered NLT 14 months after Milestone C approval. These vehicles shall remain in place at the Contractor’s facility until disposition is provided by the Government.

CLINs 3001, 4001, 5001, and 6001

The Contractor shall propose a delivery schedule within the PoP for each CLIN listed below in section F.

DELIVERY INFORMATION

30-SEP-2017

28-FEB-2017

31-MAR-2017

28-FEB-2017

30-SEP-2018

30-SEP-2018

02-FEB-2018

30-SEP-2018

31-MAR-2019

31-JUL-2018

30-SEP-2019

31-JAN-2019

31-MAR-2019

31-JAN-2019

31-MAR-2019

31-MAR-2020

31-MAR-2020

31-MAR-2020

31-MAR-2020

31-MAR-2020

31-MAR-2020

31-MAR-2020

31-DEC-2020

31-DEC-2020

31-DEC-2020

31-MAR-2022

31-MAR-2022

31-MAR-2022

31-MAR-2021

31-DEC-2022

31-DEC-2022

31-DEC-2022

30-JUN-2023

30-JUN-2023

30-JUN-2023

30-JUN-2024

CLAUSES INCORPORATED BY REFERENCE

Section G - Contract Administration Data

ADMINISTRATION

G.1 Government Points of Contact

Listed below are the Government points of contact for this contract:

Contracts

2200 Lester Street

Quantico, VA 22134

Listed below are the Contractor points of contact for this contract:

G.2 Delegation of Authority for Contract Administration

The Administrative Contracting Officer (ACO) of the cognizant Defense Contract Management Command is designated as the authorized representative of the Procuring Contracting Officer for purposes of administering this contract in accordance with FAR 42.3. In accordance with FAR 42.3, the PCO may retain certain functions. In view of the technical nature of the supplies and services to be furnished the following contract administration functions are retained by the Marine Corps Systems Command PCO:

1) Conduct Post-Award Orientation Conferences;

2) Consent to the placement of subcontracts if the Contractor doesn’t have an approved purchasing system.

G.3 Payment Instructions

G.4 Reimbursement of Travel, Per Diem, and Special Material Costs (Applicable to CPFF CLINs only) 5252.232-9509 Reimbursement of Travel, Per Diem, and Special Material Costs (NAVAIR) (OCT 2006)

(a) Area of Travel. Performance under this contract may require travel by Contractor personnel. If travel, domestic or overseas, is required, the Contractor is responsible for making all necessary arrangements for its personnel. These include but are not limited to: medical examinations, immunizations, passports/visas/etc., and security clearances. All Contractor personnel required to perform work on any U.S. Navy vessel shall obtain boarding authorization from the Commanding Officer of the vessel before boarding.

(b) Travel Policy. The Government will reimburse the Contractor for allowable travel costs incurred by the Contractor in performance of the contract in accordance with FAR Subpart 31.2. Travel required for tasks assigned under this contract shall be governed in accordance with: Federal Travel Regulations, prescribed by the General Services Administration for travel in the conterminous 48 United States, (hereinafter the FTR); Joint Travel Regulation, Volume 2, DoD Civilian Personnel, Appendix A, prescribed by the Department of Defense, for travel in Alaska, Hawaii, The Commonwealth of Puerto Rico, and territories and possessions of the United States (hereinafter JTR); and Standardized Regulations (Government Civilians, Foreign Areas), Section 925, "Maximum Travel Per Diem Allowances for Foreign Areas," prescribed by the Department of State, for travel in areas not covered in the FTR or JTR (hereinafter the SR).

(c) Travel. Travel and subsistence are authorized for travel beyond a 50 mile radius of the Contractor’s office whenever a task assignment requires work to be accomplished at a temporary alternate worksite. No travel or subsistence shall be charged for work performed within a 50 mile radius of the Contractor’s office. The Contractor shall not be paid for travel or subsistence for Contractor personnel who reside in the metropolitan area in which the tasks are being performed. Travel performed for personal convenience, in conjunction with personal recreation, or daily travel to and from work at the Contractor’s facility will not be reimbursed.

(1) For travel costs other than described in paragraph (c) above, the Contractor shall be paid on the basis of actual amount paid to the extent that such travel is necessary for the performance of services under the contract and is authorized by the COR in writing.

(2) When transportation by privately owned conveyance is authorized, the Contractor shall be paid on a mileage basis not to exceed the applicable Government transportation rate as contained in the FTR, JTR or SR. Authorization for the use of privately owned conveyance shall be indicated in the basic contract. Distances traveled between points shall be shown on invoices as listed in standard highway mileage guides. Reimbursement will not exceed the mileage shown in the standard highway mileage guides.

(3) The Contractor agrees, in the performance of necessary travel, to use the lowest cost mode commensurate with the requirements of the mission as set forth in the basic contract and in accordance with good traffic management principles. When it is necessary to use air or rail travel, the Contractor agrees to use coach, tourist class, or similar accommodations to the extent consistent with the successful and economical accomplishment of the mission for which the travel is being performed.

(4) The Contractor’s invoices shall include receipts or other evidence substantiating actual costs incurred for authorized travel. In no event will such payments exceed the rates of common carriers.

(d) Vehicle and/or Truck Rentals. The Contractor shall be reimbursed for actual rental/lease of special vehicles and/or trucks (i.e., of a type not normally used by the Contractor in the conduct of its business) only if authorized in the basic contract or upon approval by the COR. Reimbursement of such rental shall be made based on actual amounts paid by the Contractor. Use of rental/lease costs of vehicles and/or trucks that are of a type normally used by the Contractor in the conduct of its business are not subject to reimbursement.

(e) Car Rental. The Contractor shall be reimbursed for car rental, exclusive of mileage charges, as authorized in the basic contract or upon approval by the COR, when the services are required to be performed beyond the normal commuting distance from the Contractor’s facilities. Car rental for a team on TDY at one site will be allowed for a minimum of four (4) persons per car, provided that such number or greater comprise the TDY team.

(f) Per Diem. The Contractor shall not be paid for Per Diem for Contractor personnel who reside in the metropolitan areas in which the tasks are being performed. Per Diem shall not be paid on services performed within a 50 mile radius of the Contractor’s home office or the Contractor’s local office. Per Diem is authorized for Contractor personnel beyond a 50 mile radius of the Contractor’s home or local offices whenever a task assigned requires work to be done at a temporary alternate worksite. Per Diem shall be paid to the Contractor only to the extent that overnight stay is necessary and authorized under this contract. The authorized Per Diem rate shall be the same as the prevailing Per Diem in the worksite locality. These rates will be based on rates contained in the FTR, JTR or SR. The applicable rate is authorized at a flat seventy-five (75%) percent on the day of departure from Contractor’s home or local office, and on the day of return. Reimbursement to the Contractor for Per Diem shall be limited to actual payments to Per Diem defined herein. The Contractor shall provide actual payments of Per Diem defined herein. The Contractor shall provide supporting documentation for Per Diem expenses as evidence of actual payment.

(g) Shipboard Stays. Whenever work assignments require temporary duty aboard a Government ship, the Contractor will be reimbursed at the Per Diem rates identified in paragraph C8101.2C or C81181.3B(6) of the Department of Defense Joint Travel Regulations, Volume II.

(h) Special Material. “Special material” includes only the costs of material, supplies, or services which is peculiar to the ordered data and which is not suitable for use in the course of the Contractor’s normal business. It shall be furnished pursuant to specific authorization approved by the COR. The Contractor will be required to support all material costs claimed by its costs less any applicable discounts. “Special materials” include, but are not limited to, graphic reproduction expenses, or technical illustrative or design requirements needing special processing.

Section H - Special Contract Requirements

SPECIAL CONTRACT INSTRUCTIONS

H-1 Reserved H-2 Criteria for the Exercise of the LRIP Build Option

H-3 Liability Insurance

H-4 Delivery Incentive

H-1 Reserved

H-2 Criteria for the Exercise of the LRIP Build Option at Down-Select

Prior to MS C, the Government will down-select to one (1) Contractor to produce ACVs. A down-select solicitation will be issued prior to MS-C. The competition will be limited to the ACV 1.1 contractors that delivered EMD vehicles. The down-select will be conducted in accordance with FAR Part 15 using the best value trade-off process. The Government intends to exercise and award the option to one (1) Offeror and will make a determination based upon the following down-select criteria:

1) Performance of the demonstrator vehicles against the ACV 1.1SPS as validated through Government Testing. For any requirements not met, the Government will consider proposed mitigation plans for achieving specification requirements;

2) Offeror’s manufacturing capabilities for production of LRIP and FRP vehicles;

3) The quality of the LMI data, provisioning planning, and technical manuals;

4) The timeliness of delivery and quality of all deliverables during the EMD Phase;

5) Price Analysis of the ceiling price for the LRIP and the FRP option CLINs and the NTE Price for an additional 490 ACV vehicles.

These factors are listed descending order of importance. The Government reserves the right to adjust the factors and the order of importance prior to release of the MS C solicitation. Offerors shall be afforded the opportunity to re-price the LRIP and FRP options when responding to the solicitation for down-select. For price analysis, the previous LRIP pricing and FRP NTE values will form the basis of evaluation however, the Offerors updated pricing will be allowed to reflect fact of life and design changes realized through EMD.

H-3 Liability Insurance

5252.228-9501 Liability Insurance (NAVAIR) (MAR 1999)

The following types of insurance are required in accordance with the clause entitled, “FAR 52.228-5, “Insurance--Work on a Government Installation”” and “52.228-7, “Insurance--Liability to Third Persons” and shall be maintained in the minimum amounts shown:

(a) Comprehensive General Liability: $500,000 per occurrence.

(b) Worker’s Compensation and Employer’s Liability Insurance: $100,000.

(c) Property Damage Liability Insurance: $TBD - Contractor to propose

(d) Vessel Liability Collision Liability and Protection Insurance: $TBD - Contractor to propose

(e) Vessel Indemnity Liability Insurance: $TBD - Contractor to propose

H-4 Delivery Incentive

The following guidance applies to the delivery incentive fee associated with CLIN 0003. If the Contractor delivers a block of four (4) EMD vehicles (CLIN 0002) in accordance with SOW Section 3.4.7.5 ahead of schedule, they shall receive an incentive fee of:

· $4M based on a signed Limited Technical Inspection (LTI) at the destination test location 30 calendar days prior to the due date established in Section F.

· $3M based on a signed LTI at the destination test location 21-29 calendar days prior to the due date established in Section F.

· $2M based on a signed LTI at the destination test location 14-20 calendar days prior to the due date established in Section F.

The criteria for the delivery incentive will be based upon delivery of the vehicles to the test site and a signed LTI. Only Offeror(s) awarded a contract are eligible for the incentive.

Section I - Contract Clauses

CLAUSES INCORPORATED BY REFERENCE

CLAUSES INCORPORATED BY FULL TEXT

52.209-3 FIRST ARTICLE APPROVAL--CONTRACTOR TESTING (SEP 1989)

(a) The Contractor shall test component(s)/unit(s) of CLIN #2002AA “LRIP Vehicles Lot 1” as specified in this contract. At least 30 calendar days before the beginning of first article tests, the Contractor shall notify the Contracting Officer, in writing, of the time and location of the testing so that the Government may witness the tests.

(b) The Contractor shall submit the first article test report within 60 calendar days after contract award for the components and 15 calendar days after the completion of the first vehicle inspection to the COR in accordance with the corresponding CDRL marking the report "FIRST ARTICLE TEST REPORT: Contract No. TBD, Lot/Item No. CLIN #2002AA LRIP Vehicles Lot 1”. Within 10 calendar days for components and 15 calendar days for the first vehicle inspection after the Government receives the test report, the Contracting Officer shall notify the Contractor, in writing, of the conditional approval, approval, or disapproval of the first article. The notice of conditional approval or approval shall not relieve the Contractor from complying with all requirements of the specifications and all other terms and conditions of this contract. A notice of conditional approval shall state any further action required of the Contractor. A notice of disapproval shall cite reasons for the disapproval.

(c) If the first article is disapproved, the Contractor, upon Government request, shall repeat any or all first article tests. After each request for additional tests, the Contractor shall make any necessary changes, modifications, or repairs to the first article or select another first article for testing. All costs related to these tests are to be borne by the Contractor, including any and all costs for additional tests following a disapproval. The Contractor shall then conduct the tests and deliver another report to the Government under the terms and conditions and within the time specified by the Government. The Government shall take action on this report within the time specified in paragraph (b) above. The Government reserves the right to require an equitable adjustment of the contract price for any extension of the delivery schedule, or for any additional costs to the Government related to these tests.

(d) If the Contractor fails to deliver any first article report on time, or the Contracting Officer disapproves any first article, the Contractor shall be deemed to have failed to make delivery within the meaning of the Default clause of this contract.

(e) Unless otherwise provided in the contract, and if the approved first article is not consumed or destroyed in testing, the Contractor may deliver the approved first article as part of the contract quantity if it meets all contract requirements for acceptance.

(f) If the Government does not act within the time specified in paragraph (b) or (c) above, the Contracting Officer shall, upon timely written request from the Contractor, equitably adjust under the changes clause of this contract the delivery or performance dates and/or the contract price, and any other contractual term affected by the delay.

(g) Before first article approval, the acquisition of materials or components for, or the commencement of production of, the balance of the contract quantity is at the sole risk of the Contractor. Before first article approval, the costs thereof shall not be allocable to this contract for (1) progress payments, or (2) termination settlements if the contract is terminated for the convenience of the Government.

(h) The Government may waive the requirement for first article approval test where supplies identical or similar to those called for in the schedule have been previously furnished by the offeror/contractor and have been accepted by the Government. The offeror/contractor may request a waiver.

(End of clause)

52.216-7 ALLOWABLE…