N00024-20-R-4112.pdf

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N0002420R4112

Section B - Supplies or Services and Prices

ITEM NO SUPPLIES/SERVICES QUANTITY UNIT UNIT PRICE AMOUNT

CLIN

Number

1 Each

Energy Magazine First Unit (completion)

CPIF

Energy Magazine first unit design, risk reduction, fabrication, test, and delivery in accordance with Section C.

See Note A

FOB: Destination

PURCHASE REQUEST NUMBER: N0002420NR59817

PSC CD: 1905

TARGET COST

TARGET FEE

TOTAL TGT COST + FEE

MINIMUM FEE

MAXIMUM FEE

SHARE RATIO ABOVE TARGET 50/50

SHARE RATIO BELOW TARGET 30/70

Data

Data in support of all CLIN(s).

The data to be furnished hereunder shall be prepared in accordance with the

Contract Data Requirements List, DD Form 1423

See Note B

ESTIMATED COST

1 Each

OPTION EM Qualification Testing

FFP

Energy Magazine (EM) Qualification Testing.

FOB: Origin (after Loading)

NET AMT

50,000 Hours

OPTION Engineering Services

CPFF

Engineering Services Labor (prime and subcontracted team). The Government will fund these items as needed during the contract performance via Technical

Instructions in accordance with the text in Section H entitled “Technical

Instructions” and Section C.

(Fee Capped at 8%)

FIXED FEE

TOTAL EST COST + FEE

1 Lot

OPTION Incidental Materials and ODC(s)

Incidental materials and ODC(s) in support of all CLIN(s). The Government will fund these items as needed during the contract performance via Technical

Instructions tasked by the COR in accordance with the clause text in Section H entitled “Technical Instructions” and Section C.

(Not to Exceed $500,000).

OPTION EM Low Rate Initial Production

FPI

Phase 1 Baseline EM Low Rate Initial Production, step ladder priced, quantities

1-5 ship sets.

See Notes C

TARGET COST

TARGET PROFIT

TOTAL TARGET PRICE

CEILING PRICE

SHARE RATIO ABOVE TARGET 50/50

SHARE RATIO BELOW TARGET 30/70

OPTION Provisioned Item Order

FFP

To be ordered and funded as required during contract performance for First Unit and production units.

Not to Exceed $4,000,000.

1 Lot

OPTION Enhanced Data Rights

FFP

Performance Incentive Fee

Performance Incentive associated with Item 0001

SECTION B NOTES

NOTE A – PERFORMANCE INCENTIVE DETERMINATION OF PERFORMANCE INCENTIVE

(Applicable to Item 0001)

The Navy has a strong desire for the resulting system to maximize the Energy Magazine system’s energy storage density to save space aboard ship. As such, at the completion of CLIN 0001, the Contractor’s fee will be adjusted as follows based on the resulting size and energy storage capacity of its system, as confirmed in the fully completed verification matrix contained in the CDRL Exhibit A Data Item A048 (Design Verification Report) provided 30 days after testing is completed:

Cumulative External Cabinet Volume (ESC and PCC Baseline)

+15% +5% Target (in3) -5% -15%

-$250,000 -$100,000 Offeror Fill-In $100,000 $250,000

Stored Energy

-15% -5% Target (kWh) +5% +15%

-$250,000 -$100,000 Offeror Fill-In $100,000 $250,000

The Cumulative External Cabinet Volume shall be calculated by multiplying the Height with shock mounts, the

Depth, and the Length of each cabinet, including all other required ancillary items needed to operate as described in the Energy Magazine technical specifications. The Stored Energy is the energy delivered before recharging is required.

These fee adjustments are independent of and in addition to the incentive fee adjustments associated with the CPIF shareline in CLIN 0001. Cumulative External Cabinet Volume and Stored Energy that lie between the values in the tables above shall be linearly interpolated to determine the value of the fee adjustment.

Irrespective of the fee adjustments above, the Navy will not accept any system that fails to meet the threshold requirements in the Performance Specification.

NOTE B - The Offeror shall complete the "Price Group" and "Estimated Total Price" blocks of each data item on the Contract Data Requirements List(s), attached hereto, prior to award of Contract TBD.

NOTE C - This CLIN consists of stepladder quantities which may range from the stated minimum quantities through the stated maximum quantities. Maximum steps are provided and shall not be exceeded. Offerors shall provide stepladder pricing in the Stepladder Pricing Table below. The base contract is awarded using the maximum shipset quantity pricing in Section B as estimates for this CLIN. The pricing will be adjusted in accordance with the

Stepladder Pricing table below at the time of option exercise should lesser shipset quantities be required. Additional priced SLINs may be added to Section B at time of option exercise to allow the use of multiple funding sources for the shipsets.

STEPLADDER PRICING TABLE (TO BE FILLED IN BY OFFEROR)

Stepladder guidelines for CLIN 0006 (EM Low Rate Initial Production):

Quantity: 1 2 3 4 5

TARGET COST

TARGET PROFIT

TOTAL TGT COST + FEE + TGT PROFIT

CEILING

SHARE RATIO ABOVE TARGET 50/50 50/50 50/50 50/50 50/50

SHARE RATIO BELOW TARGET 30/70 30/70 30/70 30/70 30/70

CLAUSES INCORPORATED BY FULL TEXT

B-215-H002 REFUNDS (SPARES AND SUPPORT EQUIPMENT) (NAVSEA) (OCT 2018)

(a) In the event that the price of a spare part or item of support equipment delivered under this contract significantly exceeds its intrinsic value, the Contractor agrees to refund the difference. Refunds will not be made to recoup the amount of cost decreases that occur over time due to productivity gains (excluding economic purchase quantity considerations) or changes in market conditions.

(b) For purposes of this requirement, the intrinsic value of an item is defined as follows:

(1) If the item is one which is sold or is substantially similar or functionally equivalent to one that is sold in substantial quantities to the general public, intrinsic value is the established catalog or market price, plus the value of any unique requirements, including delivery terms, inspection, packaging, or labeling.

(2) If there is no comparable item sold in substantial quantities to the general public, intrinsic value is defined as the price an individual would expect to pay for the item based upon an economic purchase quantity as defined in FAR

52.207-4, plus the value of any unique requirements, including delivery terms, inspection, packaging or labeling.

(c) At any time up to two years after delivery of a spare part or item of support equipment, the Contracting Officer may notify the Contractor that based on all information available at the time of the notice, the price of the part or item apparently exceeds its intrinsic value.

(d) If notified in accordance with paragraph (c) above, the Contractor agrees to enter into good faith negotiations with the Government to determine if, and in what amount, the Government is entitled to a refund.

(e) If agreement pursuant to paragraph (d) above cannot be reached, and the Navy's return of the new or unused item to the Contractor is practical, the Navy, subject to the Contractor's agreement, may elect to return the item to the Contractor.

Upon return of the item to its original point of Government acceptance, the Contractor shall refund in full the price paid.

If no agreement pursuant to paragraph (d) above is reached, and return of the item by the Navy is impractical, the

Contracting Officer may, with the approval of the Head of the Contracting Activity, issue a Contracting Officer's final decision on the matter, subject to Contractor appeal as provided in the "Disputes" clause (FAR 52.233-1).

(f) The Contractor shall make refunds, as required under this requirement, in accordance with instructions from the

Contracting Officer.

(g) The Contractor shall not be liable for a refund if the Contractor advised the Contracting Officer in a timely manner that the price it would propose for a spare part or item of support equipment exceeded its intrinsic value, and with such advice, specified the estimated proposed price, the estimated intrinsic value and known alternative sources or item, if any, that can meet the requirement.

(h) This requirement does not apply to any spare parts or items of support equipment whose price is determined through adequate price competition. This requirement also does not apply to any spare part or item of support equipment if the

Contractor submitted, and certified the currency, accuracy and completeness of, cost or pricing data applicable to the item.

(End of text)

Applicable CLINs: 0007

B-216-H006 FEE TABLE (NAVSEA) (MAR 2019)

Labor CLIN Labor Hours Cost Per

Hour*

Fee Rate Per

Hour*

Loaded

Hourly Rate

0004 50,000 Fill Out by Offeror Fill Out by Offeror Fill Out by Offeror

*The offeror shall divide the proposed fee for each CLIN by the quantity of labor hours indicated to complete the table. Fee is calculated based on cost less FCCOM; if FCCOM is proposed, necessary columns may be added.

In the event of any inconsistency between the above table and the CLIN pricing, the CLIN pricing shall take precedence.

Applicable CLINs: 0004

B-227-H001 PROVISIONING TECHNICAL DOCUMENTATION – WITHHOLDING OF PAYMENT

(NAVSEA) (OCT 2018)

(a) For the purpose of paragraph (c) of the "Progress Payments" clause of this contract, if included, the requirement that the Contractor develop and deliver Provisioning Technical Documentation (PTD) is considered to be a "material requirement of this contract," and Contractor failure to make adequate progress in the development of PTD, or to deliver acceptable PTD on a timely basis, may result in reduction or suspension of Progress Payments as provided in said paragraph.

(b) The PTD is considered to be a part of the "Technical Data" specified to be delivered under this contract for the purposes of the "Technical Data--Withholding of Payment" (DFARS 252.227-7030) clause. The terms and conditions of the clause entitled "Limitation On Withholding of Payments (FAR 52.232-9), if included in this contract, shall not apply to withholding of payment for failure to make timely delivery of the PTD or delivery of deficient PTD.

B-231-H001 TRAVEL COSTS (NAVSEA) (OCT 2018)

(a) Except as otherwise provided herein, the Contractor shall be reimbursed for its actual travel costs in accordance with FAR 31.205-46. The travel costs to be reimbursed shall be those costs for which the Contractor has maintained appropriate documentation and which have been determined to be allowable, allocable, and reasonable by the

Procuring Contracting Officer, Administrative Contracting Officer, or their duly authorized representative.

(b) Reimbursable travel costs include only that travel performed from the Contractor's facility to the worksite, in and around the worksite, and from the worksite to the Contractor's facility.

(c) Relocation costs and travel costs incidental to relocation are allowable to the extent provided in FAR 31.205-35;

however, Procuring Contracting Officer approval shall be required prior to incurring relocation expenses and travel costs incidental to relocation.

(d) The Contractor shall not be reimbursed for the following daily local travel costs:

(i) travel at U.S. Military Installations where Government transportation is available,

(ii) travel performed for personal convenience/errands, including commuting to and from work, and

(iii) travel costs incurred in the replacement of personnel when such replacement is accomplished for the

Contractor's or employee's convenience.

Applicable CLINs: 0005

B-231-H002 WORKSITE TRAVEL COSTS (NAVSEA) (OCT 2018)

(a) The contractor shall not charge, and the Government shall not pay, as an allowable cost under this contract, any manhour costs (whether straight-time or overtime) for contractor personnel or subcontractor personnel traveling to or from worksites, including travel to worksites other than the contractor's facility for performance of contract work.

(b) Workers being paid under this contract, as prime contractor personnel or subcontractor personnel, will complete a full shift at the worksite, and no compensation will be paid for travel time before or after the shift.

(c) This requirement pertains only to payments for travel time before or after these workers' regular shifts

(commuting costs), and does not apply to legitimate travel costs incurred during normal working hours, provided that those costs are otherwise reasonable, allocable and allowable and approved in writing by the Government. This requirement does not apply to manufacturer's representatives or Original Equipment Manufacturer (OEM) representatives when specifically required by the Government work specifications.

(d) Additionally, the contractor shall not charge, and the Government shall not pay, any transportation costs under this contract associated with transporting contractor or subcontractor personnel between the contractor's facility (or subcontractor's facility), and any other worksite to perform ship repair, maintenance or modernization.

Transportation costs include, but are not limited to, bus fare, car fare, train fare, or boat fare, paid by the work force, or paid by the contractor on behalf of the work force.

Applicable CLINs: 0005

B-232-H003 PAYMENTS OF FEE (S) (COMPLETION) (NAVSEA) (OCT 2018)

(a) For purposes of this contract, "fee" means "target fee" in cost-plus-incentive-fee type contracts, "base fee" in cost-plus-award-fee type contracts, or "fixed fee" in cost-plus-fixed-fee type contracts.

(b) The Government shall make payments to the Contractor, subject to and per the clause in this contract entitled "Fixed

Fee" (FAR 52.216-8) or "Incentive Fee", (FAR 52.216-10), as applicable. Such payments shall be equal to to be completed by the offeror percent ( ) of the allowable cost of each invoice submitted by and payable to the

Contractor pursuant to the clause of this contract entitled "Allowable Cost And Payment" (FAR 52.216-7), subject to the withholding terms and conditions of the "Fixed Fee" or "Incentive Fee" clause, as applicable (percentage of fee payable is based on fee dollars divided by estimated cost dollars including facilities capital cost of money). Fee shall not be applied on Facilities Capital Cost of Money per FAR 15.404-4(c)(3) and DFARS 215-404-71-4. Total fee(s) paid to the

Contractor shall not exceed the fee amount(s) set forth in this contract.

(c) In the event of discontinuance of the work under this contract, or any specified phase of the contract, per the clause of this contract entitled "Limitation of Funds" (FAR 52.232-22) or "Limitation of Cost" (FAR 52.232-20), as applicable, the fee shall be equitably adjusted by mutual agreement to reflect the diminution of work. If the adjusted fee is less than the sum of all fee payments made to the Contractor under this contract, the Contractor shall repay the excess amount to the Government. If the adjusted fee exceeds all payments made to the Contractor under this contract, the Contractor shall be paid the additional amount, subject to the availability of funds. In no event shall the Government be required to pay the Contractor any amount in excess of the funds obligated under this contract at the time of the discontinuance of work.

(d) Fee(s) withheld pursuant to the terms and conditions of this contract shall not be paid until the contract has been modified to reduce the fee(s) per paragraph (c) above, or until the Procuring Contracting Officer has advised the paying office in writing that no fee adjustment is required.

Applicable CLINs: 0001

B-232-H005 PAYMENTS OF FEE(S) (LEVEL OF EFFORT)--ALTERNATE I (NAVSEA) (OCT 2018)

(a) For purposes of this contract, "fee" means "target fee" in cost-plus-incentive-fee type contracts, "base fee" in cost-plus-award-fee type contracts, or "fixed fee" in cost-plus-fixed-fee type contracts.

(b) The Government shall make payments to the Contractor, subject to and per the clause in this contract entitled "Fixed

Fee" (FAR 52.216-8) or "Incentive Fee", (FAR 52.216-10), as applicable. Such payments shall be submitted by and payable to the Contractor pursuant to the clause of this contract entitled "Allowable Cost and Payment" (FAR 52.216-7), subject to the withholding terms and conditions of the "Fixed Fee" or "Incentive Fee" clause, as applicable. Fee paid per hour shall be based on total fee dollars divided by total hours to be provided. Total fee(s) paid to the Contractor shall not exceed the fee amount(s) set forth in this contract. In no event shall the Government be required to pay the Contractor any amount in excess of the funds obligated under this contract.

Applicable CLINs: 0004

CLAUSES INCORPORATED BY FULL TEXT

B-232-H006 LIMITATION OF COST OR LIMITATION OF FUNDS CLARIFICATION (NAVSEA) (OCT 2018)

The clause entitled "Limitation of Cost" (FAR 52.232-20) or "Limitation of Funds" (FAR 52.232-22), as appropriate, shall apply separately and independently to each separately identified estimated cost.

Applicable CLINs: 0001, 0004, 0005

Section C - Descriptions and Specifications

GENERAL (ALL CLINS)

0.0 GENERAL STATEMENT OF WORK REQUIREMENTS

(applicable to CLINs 0001, 0002, 0003 and 0006 only, not applicable to CLINs 0004, 0005, 0007, 0008, and 0009)

0.1 Scope: The items contained in the General Statement of Work Requirements section of this contract apply to Contract Line Item Numbers (CLINs) 0001, 0002, 0003 and 0006 only; the items contained in the General

Statement of Work Requirements section of this contract do not apply to CLINs 0004, 0005, and 0007. All costs attributable to the General Statement of Work Requirements section of this contract shall be included in CLIN 0001 until such time as the option to perform CLIN 0006 is exercised, at which time all costs attributable to the General

Statement of Work Requirements section of this contract shall be included in CLIN 0006. Subparagraphs contained in the Section C Descriptions and Specifications of the contract have requirements that shall be considered a part of the next higher paragraph; subparagraph contain amplifying information that pertain to the scope of the higher paragraph and any associated Contract Data Requirements List (CDRL) item. The Contractor shall provide services, materials, facilities and personnel necessary to perform the tasks identified below. Each deliverable indicated below shall be delivered in accordance with CLIN 0002 of the contract, and the Contractor shall comply with the detailed contents specified in the CLINs below for each data item. In addition to the technical requirements contained herein, the Government Program Office (PEO SHIPS PMS 320) goals for this effort include the incorporation of wide band-gap power electronics devices (such as Silicon-Carbide (SiC), greater than 6KV rating) into the power conversion equipment; the identification and integration of domestic source of battery cells, if battery cells are used;

an increased level of small business participation during contract execution; and the operating systems contained within the Energy Magazine shall not be Microsoft Windows based.

0.2 Description: The Energy Magazine is a common, modular, scalable family of power conversion modules with a closely coupled energy storage subsystem used across multiple mission systems (including high power pulsed weapons and sensors as well as Uninterruptable Power Supply (UPS) capability) and ship platforms and is intended to provide mission adaptable flexibility for both future ships and existing ship classes. Energy Magazine functionally shall be allocated into two (2) physically separated cabinets (the Power Conversion Cabinet (PCC) and the Energy Storage Cabinet (ESC)). The boundary between the PCC and ESC is defined by the Government owned

Interface Control Document (ICD), Section J Attachment G. The PCC includes power output to the loads and input from the shipboard power distribution system, with an active front end enabling combined energy storage with a base load, resulting in peak power shaving and load-application (slew rate) buffering. The ESC includes the storage media and any associated control (such as a battery management system, if battery-based energy storage media is utilized), cooling and ventilation. Each cabinet shall have multiple sections internal to the cabinet structure to achieve all allocated functionality and meet shipboard hatchability requirements.

0.3 Program Management and Product Teams: The Contractor shall provide program management, planning, subcontracts management, schedule, and accounting/cost control. The Contractor shall maintain liaison with the

Navy throughout to ensure expedient communication of program risks and status. The Contractor shall establish and maintain a project management team and a systems engineering team in conjunction with Navy representatives to ensure emergent management and technical issues are identified and resolved expediently. The Contractor shall develop and maintain a Combined Program Plan and Systems Engineering Management Plan (SEMP) in accordance with Exhibit A Data Item A001. The Combined Program Plan and SEMP shall address technical planning, technical data management, requirements management, technical reviews, risk management, and configuration management.

0.3.1 Program Plan: The Program Plan shall include a description of the program management processes and product team organization as specified above and shall be based on the Integrated Management Plan from the

Contractor’s proposal. The Program Plan shall describe the Contractor’s data management program, including

Integrated Data Environment (IDE) structure, format, processes, and procedures. The Contractor shall develop an action item tracking system and document that system as part of the Program Plan. This action item tracking system shall include a short meaningful title, a detailed description of the action sufficient to understand the nature of the action and how it arose, the action assignor and assignee (whether they be a member of the Contractor team or the

Government), initiation date and due date that is tied to a program milestone, and the action status log.

0.3.1.1 Integrated Master Schedule (IMS): The Program Plan shall include an event-based, resource allocated, costed IMS, reflecting how the effort will be executed, including timing of reviews and the planned cost of each event which rolls into the Estimate at Completion (EAC) for each priced CLIN and Option Exercised CLINS. The

IMS shall be developed in a manner that reflects the Contractor’s customary way of organizing projects and the need to have a direct relationship between project events and cost projections. The IMS shall be maintained in Microsoft

Project™ format and shall be made available to the Navy electronically, in both Microsoft Project™ and PDF formats. The schedule shall be organized in accordance with the Work Breakdown Structure (WBS) and contain the planned events and milestones, accomplishments, estimated cost, exit criteria, and activities from contract award to the completion of the contract. No less than 95% of the tasks in the IMS shall have a duration of less than 40 business days, with exception for procurement of materials with long lead times. The Contractor shall not maintain separate schedules for internal use and external reporting to the Navy. CDRL data deliveries shall show the dependencies to the work required to complete the CDRL (as a successor task) and not be tied to key events (as a predecessor task), such as design reviews, in order to avoid artificial completion dates that would lead to an inferior

CDRL product and design review dates being planned when all of the precursor work is not complete. The IMS shall be baselined as part of the Program Plan and the Contractor shall provide status against this baseline as part of the IMS updates provided as an appendix to the Progress Reports cited below. The Contractor shall ensure schedule integration with any subcontractors and shall verify/ensure the validity of the subcontractor’s schedule data, including demonstrating effective methods for incorporating schedule data from subcontractors into the Contractor’s

IMS.

0.3.1.2 Work Breakdown Structure (WBS): The Contractor shall develop and maintain a WBS making use of the

Section J Attachment R High Level WBS as the starting point, but with a greater level of detail. Any WBS element required to perform this work shall be captured in the applicable CLIN. The Contractor WBS shall identify tasks at least two levels below the Power Conversion Cabinet (PCC) and the Energy Storage Cabinet (ESC). The Contractor shall extend the contract WBS down to the level required to provide adequate internal management, surveillance, and performance measurement, regardless of the reporting level stipulated in the contract for Government visibility.

0.3.1.3 Quality Assurance Program: The Contractor shall maintain a quality management system that, at a minimum, adheres to the requirements of ANSI/ISO/ASQ 9001-2015 for all aspects of the Energy Magazine development and production. The nature of the quality assurance program shall be documented in the Program Plan.

The quality management system procedures, planning, and all other documentation and data that comprise the quality management system supporting documentation shall be made available to the Government. Existing quality documents that meet the requirements of this contract may continue to be used. The Government may perform any necessary inspections, verifications, and evaluations to ascertain conformance to requirements and the adequacy of the implementing procedures. The Contractor shall require a quality management system of subcontractors, achieving control of the quality of the services and/or supplies provided by the subcontractors. The Government reserves the right to disapprove the quality management system or portions thereof when it fails to meet the contractual requirements. The Government will utilize the Contractor Performance Assessment Reporting System

(CPARS) to document the Contractor’s overall quality of products delivered and project management activities for this contract.

0.3.1.4 Supplier and Supply Chain Management: The Contractor shall monitor key suppliers’ viability and potential obsolescence issues. The Contractor shall describe the potential risks to ramping production from their sub-contractors, venders, and suppliers with respect to being able to meet the contract development and low rate initial production options schedule and the Contractor’s plans to mitigate such risks. The Contractor shall identify any strategic sourcing issues associated with the choice of energy storage media, including geopolitical implications associated with raw materials and fabrication and testing of assemblies in non-domestic regions, citing the impacts of any present or future restriction that is or may be applied that would require domestic sourcing. If the Energy

Magazine includes lithium based batteries, the Contractor’s strategic sourcing section of the Program Plan would address the implications and approach to handling the potential for a source of raw materials or cells to be unwilling to divert production from their commercial customers to the Energy Magazine application, and what would be the pathway to domestic sourcing of the raw materials and/or assemblies if these items are more economically sourced from a non-US based entity. The Contractor shall seek to use commercially available parts and sub-assemblies whenever feasible that have a low risk of obsolesce and high likelihood of on-going advancement and evolution.

The Contractor shall consider the availability of chosen parts within existing Governmental sources of supply such as the Defense Logistics Agency (DLA), General Services Administration (GSA), NAVSUP and the broader DoD logistics enterprise.

0.3.2 SEMP: The SEMP shall comply with and address each section of the Section J Attachment A PMS 320

Systems Engineering Master Strategy (SEMS) to ensure complete coverage of all areas of the systems engineering process. The Contractor shall identify areas where its internal processes differ from the Navy’s paradigm noted in the Section J Attachment A PMS 320 SEMS. The SEMP shall address technical planning, technical data management, requirements management, technical reviews, risk management, and configuration management as the project progresses. The SEMP shall address the Contractor’s Failure Reporting, Analysis, and Corrective Action

System (FRACAS) procedures.

0.3.2.1 Requirements Traceability Matrix: The SEMP shall include a Requirements Traceability Matrix (RTM) annex that includes all of the stated requirements of the contract, the associated Navy technical requirements documents and any additional derived design, performance or technical requirements beyond those stated in these documents. The SEMP RTM annex shall be based on the Government furnished Energy Magazine Functional

Requirements Document (FRD) and shall include the referenced contract or specification paragraph; the fully stated requirement; the rationale for the requirement; the top level reference as appropriate; the author of the requirement;

the date the requirement was identified; the proposed method of verifying the requirement; and any comments that would assist in assessing the validity of the requirement. The SEMP RTM annex shall be updated and reviewed at each milestone program review. The Navy technical requirements documents are provided in Section J Attachments

B through H, and include the following (each item in the technical requirements documents are referenced back to the Government furnished Energy Magazine FRD cited above):

Attachment B: Technical Specification for Energy Magazine

Attachment C: Acquisition Specification Sheet for Shipboard Energy Magazine EM02BDGI–

X020405/150/2200 – 01GI02GI04N. This document contains the specific rating data for the baseline

(4,160 VAC front-end input/output for shipboard power system integration) input and output requirements that are to be designed and a first unit fabricated and tested as part of CLIN 0001 of this contract, and shall be carried through to the eventual production of the EM.

Attachment D: Acquisition Specification Sheet for Shipboard Energy Magazine EM01BDGI-00-00

(450VAC). This document contains the specific rating data for the Variant 1 (450VAC front-end input/output for shipboard power system integration) input and output requirements that are to be designed and a first unit fabricated and tested as part of CLIN 0001 of this contract.

Attachment E: Acquisition Specification Sheet for Shipboard Energy Magazine EM04BDGI-00-00

(13.8KVAC). This document contains the specific rating data for the Variant 2 (13.8KVAC front-end input/output for shipboard power system integration) input and output requirements that are to be designed and a first unit fabricated and tested as part of CLIN 0001 of this contract.

Attachment F: Acquisition Specification Sheet for Shipboard Energy Magazine EM00-00-03GI

(1000VDC). This document contains the specific rating data for the Variant 3 (1000VDC load interface) requirements that are to be designed and a first unit fabricated and tested as part of CLIN 0001 of this contract.

Attachment G: Energy Magazine Power Conversion Cabinet to Energy Storage Cabinet Interface

Control Document (ICD). This document specifies the electrical, mechanical, and controls interfaces between the PCC and the ESC.

Attachment H: Integrated Operational Concept Description (IOCD) for the Energy Magazine (EM).

This document defines the overall concept of operations of the Energy Magazine.

0.3.2.2 General Risks and Opportunities: The Contractor shall assess and track potential risks associated with achievement of technical and schedule requirements and define methods or alternatives to mitigate or minimize these risks, including the identification of criteria upon which decisions can be based. The Contractor shall maintain a risk management program to assess risks associated with achievement of technical and schedule requirements.

Specific risk management functions shall include identifying known and potential risks; assessing risks, including a relative ranking by program impact and the establishment of critical thresholds; and defining methods or alternatives to mitigate or minimize these risks, including the identification of criteria upon which programmatic decisions can be based. The Contractor shall identify a list of components at risk of becoming obsolete within the 5-year period from contract award and report them in the risk section of the SEMP. The Contractor shall also identify opportunities to improve Energy Magazine performance as a value added Engineering Change Proposal (ECP) submitted in accordance with paragraph 0.9.1.

0.3.2.3 Cybersecurity/Information Assurance Risk Management: The Contractor shall apply cybersecurity measures to the design of all information technology associated with control and communication systems for the

Energy Magazine. For purposes of this contract, information technology is defined as any equipment or interconnected system or subsystem of equipment that is used in the automatic acquisition, storage, manipulation, management, movement, control, display, switching, interchange, transmission, or reception of data or information.

The Contractor shall support the implementation of the Risk Management Framework (RMF) process, which provides the ability for the Contractor to apply the appropriate cybersecurity hardening of the Energy Magazine with respect to its authorization boundary. The Contractor’s responsibilities are defined as follows for each of the steps:

RMF Step 1 – Categorize System

Contractor shall be familiar with the Federal Information Processing Standard Publication 199 (FIPS 199 -

Standards for Security Categorization of Federal Information and Information Systems) and the selection of the

Energy Magazine as a Confidentiality: Medium; Integrity: High; Availability: High. The Contractor shall work with the Government to determine the authorization boundary as required by the RMF process. The Contractor shall develop and deliver a Cybersecurity Risk Management Report (Exhibit A Data Item A002) that contains the following key information to support RMF Step 1:

1. System name or designation.

2. System Lead contact information.

3. System Supervisor contact information.

4. Cybersecurity Point of Contact (POC) contact information. The Cybersecurity POC shall be an engineer that possesses a Secret security clearance, and be a Certified Information Systems Security

Professionals (CISSP) or possess equivalent certification or credentials (including SANS GIAC, ISC2

CISSP, CSSLP, Cert ECSP or Secure C and C++).

5. What is the highest classification that the system/component operates while deployed?

6. What operating system(s) (OS) and version(s) planned for baseline delivery; include version if known?

7. Interface peripherals planned for the system (keyboard, mouse, touchscreen, joystick, toggle switch, etc.).

8. Writable non-volatile storage media (Hard Disk Drive (HDD), Solid Disk Drive (SDD), FLASH, etc.).

9. Portable electronic device (PED) requirements for installation, maintenance, or operation (laptop, tablet, etc.). Include classification of device, what it is used for (e.g., software upgrade, downloading data files), what organization is responsible for initial procurement, where it will be kept (onboard, In Service

Engineering Agent (ISEA) site, vendor site) and frequency of use.

10. Component or interface changes from a previously approved Information Assurance

(IA)/Cybersecurity Implementation Plan (with citation to the prior plan)

11. Dates and locations for initial system testing using version of hardware / software / firmware planned for baseline delivery.

12. System Block Diagram should include all external Interfaces, direction of data flow, and type of connection (RS-422, Internet Protocol (IP) over fiber, User Datagram Protocol (UDP), etc.

RMF Step 2 – Select Security Controls

The Key Information Security Requirement Worksheet (KISRW), provided in Section J Attachment X, is a flow-down of those cybersecurity requirements provided by National Institute of Standards and Technology (NIST)

Special Publication (SP) 800-53 rev4 and tailored by the categorization of the system conducted in RMF Step 1 above. The Contractor shall be familiar with the NIST 800-53 rev4 publication and shall complete the KISRW with respect to Energy Magazine specific requirements, with assistance from the Navy. Included in this analysis are

CYBERSAFE requirements to augment the baseline cybersecurity requirements. The Navy Information Assurance

Technical Authority CYBERSAFE Grading Criteria Standard (outlined in OPNAV INSTRUCTION 5239.4 CHIEF

OF NAVAL OPERATIONS CYBERSECURITY SAFETY PROGRAM (OPNAVINST 5239.4, N2N6, 14 Sep

2018) shall be used to define the CYBERSAFE grades and cybersecurity requirements.

RMF Step 3 – Implement Security Controls

The Contractor shall implement the security controls provided in the KISRW in RMF Step 2 and tested in the employed authorization boundary or equivalent. The Contractor shall ensure that development of all control and communication systems for the Energy Magazine adhere to software secure coding best practices in accordance with established commercial standards such as those developed by the Carnegie Mellon University Software Engineering

Institute. The Contractor shall document software and service updates or workarounds to mitigate all vulnerabilities associated with the operating systems and software and to maintain the established level of system security. The

Contractor shall remove or disable and document all software components that are not required for the operation and maintenance of the system prior to Factory Acceptance Testing (FAT).

RMF Step 4 – Assess Security Controls

The Contractor shall support Navy cybersecurity risk assessment activities, including performing vulnerability scans

(using a tool equivalent to the Tenable Nessus scan software) on software baselines, analyzing Security Technical

Implementation Guidance (STIG) documents, and performing static source code analysis. The Contractor shall support Navy developmental test and evaluation activities such as Navy Cyber Table Top exercises, penetration testing, and other Cybersecurity test activities directed by the Navy. The Contractor shall assess and report on impacts of the Navy’s risk assessment activities and support changes to the Energy Magazine design, if required.

RMF Step 5 – Authorize System

The Contractor shall respond to any required changes to the Energy Magazine final product baseline as required to achieve a favorable Authorization To Operate (ATO) decision. Any improvement to the overall security posture of the Energy Magazine system in the context of a ship application after Step 1 and Step 2 of the RMF shall be proposed separately in accordance with the Engineering Change Proposal (ECP) process in paragraph 0.9.1. The

Contractor shall support the continuous evaluation of the appropriate cybersecurity vulnerability assessment of the

Energy Magazine in its authorization boundary at the Naval Surface Warfare Center Philadelphia and Port Hueneme

Divisions Land Based Test Sites as a surrogate for an as-yet to be identified ship installation.

RMF Step 6 – Maintain Situational Awareness

The Contractor shall continuously maintain an ongoing situational awareness about the security and privacy posture of the Energy Magazine in its operational environment. The Government will provide the Contractor with updates via email as needed on the changing threats, vulnerabilities, technologies and mission/business processes incurred by the Energy Magazine through regular reporting. The COR shall be the custodian of this information.

0.3.2.3.1 System Security Plan and Plans of Action and Milestones (SSP/POAM) Reviews

a) Within thirty (30) days of contract award, the Contractor shall make its System Security Plan(s) (SSP(s)) for its covered contractor information system(s) available for review by the Government at the Contractor’s facility. The

SSP(s) shall implement the security requirements in Defense Federal Acquisition Regulation Supplement (DFARS) clause 252.204-7012, which is included in this contract. The Contractor shall fully cooperate in the Government's review of the SSPs at the Contractor's facility.

b) lf the Government determines that the SSP(s) does not adequately implement the requirements of DFARS clause

252.204-7012 then the Government shall notify the Contractor of each identified deficiency. The Contractor shall correct any identified deficiencies within thirty (30) days of notification by the Government. The Contracting

Officer may provide for a correction period longer than thirty (30) days and, in such a case, may require the

Contractor to submit a plan of action and milestones (POAM) (Exhibit A Data Item A051) for the correction of the identified deficiencies. The Contractor shall immediately notify the Contracting Officer of any failure or anticipated failure to meet a milestone in such a POAM.

c) Upon the conclusion of the correction period, the Government may conduct a follow-on review of the SSP(s) at the Contractor's facilities. The Government may continue to conduct follow-on reviews until the Government determines that the Contractor has corrected all identified deficiencies in the SSP(s).

d) The Government may, in its sole discretion, conduct subsequent reviews at the Contractor's site to verify the information in the SSP(s). The Government will conduct such reviews at least every three (3) years (measured from the date of contract award) and may conduct such reviews at any time upon thirty (30) days' notice to the Contractor.

0.3.2.3.2 Compliance to NIST 800-171

a) The Contractor shall fully implement the CUI Security Requirements (Requirements) and associated Relevant

Security Controls (Controls) in NIST Special Publication 800-171 (Rev. I) (NIST SP 800-171), or establish a SSP(s) and POA&Ms that varies from NIST 800-171 only in accordance with DFARS clause 252.204-7012(b)(2), for all covered contractor information systems affecting this contract.

b) Notwithstanding the allowance for such variation, the contractor shall identify in any SSP and POA&M their plans to implement the following, at a minimum:

(1) Implement Control 3.5.3 (Multi-factor authentication). This means that multi-factor authentication is required for all users, privileged and unprivileged accounts that log into a network. In other words, any system that is not standalone should be required to utilize acceptable multi-factor authentication. For legacy systems and systems that cannot support this requirement, such as CNC equipment, etc., a combination of physical and logical protections acceptable to the Government may be substituted;

(2) Implement Control 3.1.5 (least privilege) and associated Controls, and identify practices that the Contractor implements to restrict the unnecessary sharing with, or flow of, covered defense information to its subcontractors, suppliers, or vendors based on need-to-know principles;

(3) Implement Control 3.1.12 (monitoring and control remote access sessions) – require monitoring and controlling of remote access sessions and include mechanisms to audit the sessions and methods.

(4) Audit user privileges on at least an annual basis;

(5) Implement:

i. Control 3.13.11 (FIPS 140-2 validated cryptology or implementation of NSA or NIST approved algorithms (i.e. FIPS 140-2 Annex A: AES or Triple DES) or compensating controls as documented in a

SSP and POAM); and,

ii. NIST Cryptographic Algorithm Validation Program (CAVP) (see https://csrc.nist.gov/projects/cryptographic-algorithm-validation-program);

(6) Implement Control 3.13.16 (Protect the confidentiality of CUI at rest) or provide a POAM for implementation which shall be evaluated by the Navy for risk acceptance.

(7) Implement Control 3.1.19 (encrypt CUI on mobile devices) or provide a plan of action for implementation which can be evaluated by the Government Program Manager for risk to the program.

0.3.3.2.3 Cyber Incident Response:

a) The Contractor shall, within fifteen (15) days of discovering the cyber incident (inclusive of the 72-hour reporting period), deliver all data used in performance of the contract that the Contractor determines is impacted by the incident and begin assessment of potential warfighter/program impact (Exhibit A Data Item A052).

b) Incident data shall be delivered in accordance with the Department of Defense Cyber Crimes Center (DC3)

Instructions for Submitting Media available at http://www.acq.osd.mil/dpap/dars/pgi/docs/Instructions for_

Submitting_ Media.docx. In delivery of the incident data, the Contractor shall, to the extent practical, remove contractor-owned information from Government covered defense information.

c) If the Contractor subsequently identifies any such data not previously delivered to DC3, then the Contractor shall immediately notify the contracting officer in writing and shall deliver the incident data within ten (10) days of identification. In such a case, the Contractor may request a delivery date later than ten (10) days after identification.

The Contracting Officer will approve or disapprove the request after coordination with DC3.

0.3.3.2.4 Naval Criminal Investigative Service (NCIS) Outreach

The Contractor shall engage with NCIS industry outreach efforts and consider recommendations for hardening of covered contractor information systems affecting DON programs and technologies.

0.3.2.3.5 NCIS/Industry Monitoring

a) In the event of a cyber incident or at any time the Government has indication of a vulnerability or potential vulnerability, the Contractor shall cooperate with the Naval Criminal Investigative Service (NCIS), which may include cooperation related to: threat indicators; pre-determined incident information derived from the Contractor's infrastructure systems; and the continuous provision of all Contractor, subcontractor or vendor logs that show network activity, including any additional logs the contractor, subcontractor or vendor agrees to initiate as a result of the cyber incident or notice of actual or potential vulnerability.

b) If the Government determines that the collection of all logs does not adequately protect its interests, the

Contractor and NCIS will work together to implement additional measures, which may include allowing the installation of an appropriate network device that is owned and maintained by NCIS, on the Contractor1s information systems or information technology assets. The specific details (e.g., type of device, type of data gathered, monitoring period) regarding the installation of an NCIS network device shall be the subject of a separate agreement negotiated between NCIS and the Contractor. In the alternative, the Contractor may install network sensor capabilities or a network monitoring service, either of which must be reviewed for acceptability by NCIS.

Use of this alternative approach shall also be the subject of a separate agreement negotiated between NCIS and the

Contractor.

c) In all cases, the collection or provision of data and any activities associated with this statement of work shall be iin accordance with federal, state, and non-US law

0.3.2.4 Model Based Systems Engineering: The Contractor shall implement a model-based engineering approach where different model types are integrated with simulations, surrogates, systems, and components at different levels of abstraction and fidelity across the systems engineering lifecycle. The Contractor’s approach shall be implemented in accordance with ISO/IEC/IEEE 15288:2015 Systems and Software Engineering – System Life

Cycle Processes and ISO 10303-242 (STEP AP 242) Managed Model-Based 3D Engineering. Resulting digital representations of program and technical data shall be used to support all phases of systems development in accordance with the Section J Attachment A PMS 320 SEMS, with the attached Naval Power and Energy Systems

Digital Engineering Plan, and the Contractor’s SEMP.

0.3.2.5 Software Development Plan: As part of this SEMP, the Contractor shall include a Software Development

Plan (SDP) and shall be in accordance with the NAVSEA text C-227-H007 SOFTWARE DEVELOPMENT

REQUIREMENTS. The SDP shall specify the entire software program and the performance characteristics of each

Computer Software Configuration Item (CSCI). The Contractor shall allocate the performance requirements into the

CSCIs listed in the SDP. The Contractor shall provide a software estimate, which includes an estimate of the single lines of code (SLOC) and software reuse factors indicating any software subroutines that originate from other development efforts and any risk that the reused software may not be available in time to support the Energy

Magazine requirements. The SDP shall indicate how the Contractor will update the Navy on the software estimate and associated risk factors. In addition, the Contractor shall ensure that all aspects of software identified in the SDP are in accordance with SECNAVINST 5230.15 and the cybersecurity risk management requirements listed above.

The use of a Microsoft Windows based operating system is prohibited within any component that is part of the

Energy Magazine.

0.4 Planned Meetings: The Contractor shall plan, conduct and document meetings and periodic formal technical reviews held between the Navy and the Contractor. The Contractor and the Navy, through electronic mail, will develop agendas for these meetings jointly. The Contractor shall make available the read-ahead versions of presentation material that is to be presented at the reviews at least three days in advance of the review start. The

Contractor shall identify dates for reviews in the Program Plan. The Contractor shall notify the Navy of reviews with preliminary agenda topics, security considerations, locations and times. Formal reviews may be combined with periodically schedule In Process Reviews (IPRs). The Navy team will meet with the Contractor individually, as necessary, to discuss any unique aspects of the Contractor’s approach.