PCM_RFP_Final_11_06_13.pdf

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G F 111 - 137

138 - 158 X H 159 - 163 tara.borntreger@navy .mil

RATING PAGE OF PAGES

7. ISSUED BY

(Date)

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

Previous Edition is Unusable 33-134 STANDARD FORM 33 (REV. 9-97)

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

DO-A3 1 163

(If other than Item 7)

15A. NAME 16. NAME AND TITLE OF PERSON AUTHORIZED TO

AND

ADDRESS SIGN OFFER (Type or print)

OF

OFFEROR

AMENDMENT NO. DATE

15B. TELEPHONE NO (Include area code) 17. SIGNATURE15C. CHECK IF REMITTANCE ADDRESS

IS DIFFERENT FROM ABOVE - ENTER

SUCH ADDRESS IN SCHEDULE.

18. OFFER DATE

1. THIS CONTRACT IS A RATED ORDER

UNDER DPAS (15 CFR 700)

2. CONTRACT NO.

N00024 8. ADDRESS OFFER TO

See Item 7

9. Sealed offers in original and copies for furnishing the supplies or services in the Schedule will be received at the place specified in Item 8, or if handcarried, in the depository located in

CAUTION - LATE Submissions, Modifications, and Withdrawals: See Section L, Provision No. 52.214-7 or 52.215-1. All offers are subject to all terms and conditions contained in this solicitation.

10. FOR INFORMATION

CALL:

A. NAME (NO COLLECT CALLS)

TARA J BORNTREGER 202.263.9210

11. TABLE OF CONTENTS

SOLICITATION/ CONTRACT FORM

SUPPLIES OR SERVICES AND PRICES/ COSTS

2 - 25

X I CONTRACT CLAUSES

DESCRIPTION/ SPECS./ WORK STATEMENT X

PACKAGING AND MARKING

26 - 68 69 - 71

J LIST OF ATTACHMENTS

INSPECTION AND ACCEPTANCE

DELIVERIES OR PERFORMANCE

72 - 75

76 - 78 X K REPRESENTATIONS, CERTIFICATIONS AND

OTHER STATEMENTS OF OFFERORS

CONTRACT ADMINISTRATION DATA 79 - 82 X

SPECIAL CONTRACT REQUIREMENTS

OFFER (Must be fully completed by offeror) 83 - 86 X M

L INSTRS., CONDS., AND NOTICES TO OFFERORS

EVALUATION FACTORS FOR AWARD

NOTE: Item 12 does not apply if the solicitation includes the provisions at 52.214-16, Minimum Bid Acceptance Period.

is inserted by the offeror) from the date for receipt of offers specified above, to furnish any or all items upon which prices are offered at the price set opposite each item, delivered at the designated point(s), within the time specified in the schedule.

13. DISCOUNT FOR PROMPT PAYMENT

(See Section I, Clause No. 52.232-8)

14. ACKNOWLEDGMENT OF AMENDMENTS

(The offeror acknowledges receipt of amendments

AMENDMENT NO. DATE

to the SOLICITATION for offerors and related documents numbered and dated):

FACILITY

12. In compliance with the above, the undersigned agrees, if this offer is accepted within calendar days (60 calendar days unless a different period

SOLICITATION, OFFER AND AWARD

X

(X) SEC. DESCRIPTION (X) SEC. DESCRIPTION PAGE(S)

PART I - THE SCHEDULE

26. NAME OF CONTRACTING OFFICER (Type or print) 27. UNITED STATES OF AMERICA 28. AWARD DATE

EMAIL:TEL: (Signature of Contracting Officer)

CODE CODE

B. TELEPHONE (Include area code) C. E-MAIL ADDRESS

AWARD (To be completed by Government)

19. ACCEPTED AS TO ITEMS NUMBERED 20. AMOUNT 21. ACCOUNTING AND APPROPRIATION

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

10 U.S.C. 2304(c)( ) 41 U.S.C. 253(c)( ) (4 copies unless otherwise specified)

23. SUBMIT INVOICES TO ADDRESS SHOWN IN ITEM

24. ADMINISTERED BY (If other than Item 7) CODE 25. PAYMENT WILL BE MADE BY CODE

PART IV - REPRESENTATIO NS AND INSTRUCTIO NS

PART III - LIST O F DO CUMENTS, EXHIBITS AND O THER ATTACHMENTS

87 - 109

PART II - CO NTRACT CLAUSES

NAVAL SEA SYSTEMS COMMAND (HQ)

1333 ISAAC HULL AVE SE

WASHINGTON NAVY YARD DC 20376-2030

FAX:

TEL:

FAX:

TEL:

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

SOLICITATION

6. REQUISITION/PURCHASE NO.

N0002413NR59851

5. DATE ISSUED

06 Nov 2013

4. TYPE OF SOLICITATION

SEALED BID (IFB)

NEGOTIATED (RFP)

[ X ]

3. SOLICITATION NO.

N00024-14-R-4200

See Section L

Section B - Supplies or Services and Prices

The Contractor shall furnish the following supplies and services when ordered by the Contracting Officer in accordance with the terms and conditions set forth in this contract.

ITEM NO SUPPLIES/SERVICES

0001 DDG 51 AMDR PCM LRIP Unit

FFP

Arleigh Burke Class Destroyer (DDG 51) Air and Missile Defense Radar (AMDR) Power Conversion Module (PCM) for new construction DDG 51 Flight III - Low Rate Initial Production (LRIP) Non-Recurring Engineering (NRE), including LRIP Long Lead Time Materials (LLTM) for CLIN 0003 and CLIN 0004 (if the options for CLINs 0003 and 0004 are exercised).

FOB: Origin

PURCHASE REQUEST NUMBER: N0002413NR59851

ITEM NO SUPPLIES/SERVICES QUANTITY UNIT UNIT PRICE AMOUNT

0001AA DDG 51 AMDR PCM LRIP NRE

1 Lot

Arleigh Burke Class Destroyer (DDG 51) Air and Missile Defense Radar (AMDR) Power Conversion Module (PCM) for new construction DDG 51 Flight III - Low Rate Initial Production (LRIP) Non-Recurring Engineering (NRE).

NET AMT

0001AB DDG 51 AMDR PCM LRIP LLTM

OPTION Arleigh Burke Class Destroyer (DDG 51) Air and Missile Defense Radar (AMDR) Power Conversion Module (PCM) for new construction DDG 51 Flight III - Low Rate Initial Production (LRIP) Long Lead Time Materials (LLTM) for CLIN 0003 and CLIN 0004.See Note C.

0002 Data

Data for CLIN 0001 and CLINs 0003 through 0018 (if exercised) in accordance with the Attachment A DD Form 1423. Pricing for each CDRL shall be included in Block 18 of Attachments A and B.

FOB: Destination

0003 DDG 51 AMDR PCM LRIP Manufacture

1 Each

Conversion Module (PCM) shipset for new construction DDG 51 Flight III – Low Rate Initial Production (LRIP) Manufacture and Factory Test for Navy Land Based Testing.

See Note C.

0004 DDG 51 AMDR PCM LRIP Manufacture

Conversion Module (PCM) shipset for new construction DDG 51 Flight III – Low Rate Initial Production (LRIP) Manufacture and Factory Test for Navy Land Based Testing.

See Note C.

0005 DDG 51 AMDR PCM LRIP EQT

Conversion Module (PCM) for new construction DDG 51 Flight III – Low Rate Initial Production (LRIP) Environmental Qualification Testing (EQT).

See Note C.

0006 1 Lot Engineering Services

T&M Estimated amount includes 100,000 hours. See Note A.

TOT ESTIMATED PRICE

CEILING PRICE

0007 Lot Support for Engineering Services

COST

Estimated Amount not to exceed $1,000,000. See Note B.

ESTIMATED COST

0008 DDG 51 AMDR PCM Ship Set LLTM

Conversion Module (PCM) for new construction DDG 51 Flight III – Procurement/Fabrication of the designated Long Lead Time Materials (LLTM) required to produce up to two fully integrated baseline AMDR PCM ship sets to meet program schedule constraints.

See Note C.

0008AA DDG 51 AMDR PCM Ship Set LLTM

Pool A

Conversion Module (PCM) for new construction DDG 51 Flight III – Procurement/Fabrication of the designated Long Lead Time Materials (LLTM) required to produce one fully integrated baseline AMDR PCM ship set to meet program schedule constraints. See Note C.

0008AB DDG 51 AMDR PCM Ship Set LLTM

Pool B

Conversion Module (PCM) for new construction DDG 51 Flight III – Procurement/Fabrication of the designated Long Lead Time Materials (LLTM) required to produce one fully integrated baseline AMDR PCM ship set to meet program schedule constraints. See Note C.

0009 DDG 51 AMDR PCM Ship Set

Conversion Module (PCM) for new construction DDG 51 Flight III – Procurement/Fabrication, Assembly and Delivery of a fully integrated baseline AMDR PCM ship set.

0010 DDG 51 AMDR PCM Ship Set

Procurement/Fabrication, Assembly and Delivery of a fully integrated baseline AMDR PCM ship set. See Note C.

0010AA DDG 51 AMDR PCM Ship Set

OPTION Alternate A. See Note C.

0010AB DDG 51 AMDR PCM Ship Set

2 Each

OPTION Alternate B. See Note C.

0011 DDG 51 AMDR PCM Ship Set

Procurement/Fabrication, Assembly and Delivery of a fully integrated baseline AMDR PCM ship set. See Note C.

0011AA DDG 51 AMDR PCM Ship Set

0011AB DDG 51 AMDR PCM Ship Set

0012 DDG 51 AMDR PCM Ship Set

Procurement/Fabrication, Assembly and Delivery of a fully integrated baseline AMDR PCM ship set. See Note C.

0012AA DDG 51 AMDR PCM Ship Set

0012AB DDG 51 AMDR PCM Ship Set

0013 DDG 51 AMDR PCM Ship Set

Procurement/Fabrication, Assembly and Delivery of a fully integrated baseline AMDR PCM ship set. See Note C.

0013AA DDG 51 AMDR PCM Ship Set

0013AB DDG 51 AMDR PCM Ship Set

0014 DDG 51 AMDR PCM Ship Set

Procurement/Fabrication, Assembly and Delivery of a fully integrated baseline AMDR PCM ship set. See Note C.

0014AA DDG 51 AMDR PCM Ship Set

0014AB DDG 51 AMDR PCM Ship Set

0015 DDG 51 AMDR PCM Ship Set

Conversion Module (PCM) for new construction DDG 51 Flight III – Procurement/Fabrication, Assembly and Delivery of a fully integrated baseline AMDR PCM ship set.

0016 Enhanced Data Rights

OPTION See note C.

0017 Provisioned Item Order

OPTION To be ordered and funded as required during contract performance. See Notes C and D.

NET AMT (To be ordered and funded as required during contract performance)

0018 DDG 51 AMDR PCM Open Architecture

Conversion Module (PCM) for new construction DDG 51 Flight III - Open Architecture and associated technical data package. See Note C.

0019 DDG 51 AMDR PCM Logistics

Conversion Module (PCM) for new construction DDG 51 Flight III – Integrated Logistics Support. See Note C.

NOTE A - The Government will fund these items as needed during the contract performance via Technical Instructions tasked by the COR in accordance with the clause in Section H entitled “Technical Instructions.”

Engineering Services shall be reimbursed at the fixed-price man-hour rates set forth in the rate table included as Attachment B (See Section C).

NOTE B: The Government will fund this item as needed during contract performance. Support for Engineering Services includes materials, travel and subsistence (See Section C) on a cost only basis (including direct cost and associated indirect cost), with no provision for fee. The total amount under CLIN 0007 shall not exceed $1,000,000.00.

NOTE C - Option item to which the option clause in SECTION I applies and which is to be supplied only if and to the extent said option is exercised. Applies to all CLINs designated as Option. In the case where option CLINs have alternate quantity subCLINs (CLINs 0010 through CLIN 0014), the Government will only exercise one of these alternates. Up to the total quantity of ship sets may be exercised at the option of the Government. The Contractor shall provide the unit prices for each PCM as a function of the number of PCMs procured within each option. CLIN 0003 and/or CLIN 0004 will not be exercised unless SLIN 0001AB has been exercised and the CDR for SLIN 0001AA has been completed. CLIN 0005 will not be exercised unless CLIN 0004 has been exercised. CLINs 0009 through 0015 will not be exercised unless the required LLTM for the quantities ordered are available (as initially populated by CLIN 0008). The exercise of SLIN 0001AB option will occur no less than 90 days and no more than 180 days prior to the exercise of CLIN 0003 option. The exercise of SLIN 0008AA will occur no less than 90 days prior to the exercise of CLIN 0009 option. The exercise of SLIN 0008AB will occur no less than 90 days prior to the exercise of the CLIN 0010 option.

NOTE D - No dollar value need be recorded at time of award.

CLAUSES INCORPORATED BY FULL TEXT

EXPEDITING CONTRACT CLOSEOUT (NAVSEA) (DEC 1995)

(a) As part of the negotiated fixed price or total estimated amount of this contact, both the Government and the Contractor have agreed to waive any entitlement that otherwise might accrue to either party in any residual dollar amount of $500 or less at the time of final contract closeout. The term “residual dollar amount” shall include all money that would otherwise be owed to either party at the end of the contract, except that, amounts connected in any way with taxation, allegations of fraud and/or antitrust violations shall be excluded. For purposes of determining residual dollar amounts, offsets of money owed by one party against money that would otherwise be paid by that party may be considered to the extent permitted by law.

(b) This agreement to waive entitlement to residual dollar amounts has been considered by both parties. It is agreed that the administrative costs for either party associated with collecting such small dollar amounts could exceed the amount to be recovered.

LIMITATION OF COST/LIMITATION OF FUNDS (NAVSEA) (SEP 1990)

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.

PAYMENT FOR ENGINEERING SERVICES AND SUPPORT – ALTERNATE I (NAVSEA) (JAN 2008)

(a) Invoices for engineering services and overtime shall contain the name(s) of engineer(s), date(s) and place(s) of performance, and a brief description of the services performed. This information may be included in the Comments tab of the applicable WAWF document. Each invoice shall be accompanied by a copy of the authorization for services and the original certification of performance. These documents may be attached to the invoice as described in the Invoice Instructions in Section G. A copy of each invoice shall be furnished to the applicable NAVSEA/DRPM/PEO code identified in Section C under Engineering Services.

(b) Invoices for subsistence and transportation shall be supported by a statement of actual costs incurred by the Contractor and claimed to be reimbursable and shall be in such form and reasonable detail as required by the cognizant Defense Contract Audit Agency (DCAA). The Government shall make provisional payment after submission of each invoice and statement of costs. At any time prior to final payment, DCAA may audit the invoice(s) and statement(s) of costs, as appropriate.

(c) Each provisional payment for subsistence and transportation costs shall be subject to reduction to the extent any amount included in the related invoice and statement of costs is found not to be reimbursable under the support item(s) and shall also be subject to reduction for overpayment or to increase for underpayment on preceding invoices. Any disputes under this requirement shall be determined in accordance with the clause of this contract entitled "DISPUTES"

(FAR 52.233-1).

(d) Separate invoices shall be submitted for selected replacement repair parts subsequent to the establishment of prices therefor in accordance with SECTION C of this contract.

PROVISIONING TECHNICAL DOCUMENTATION – WITHHOLDING OF PAYMENT (NAVSEA) (SEP 1990)

(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.

REFUNDS (SPARES AND SUPPORT EQUIPMENT) (NAVSEA) (SEP 1990)

(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 only be made for the difference between the intrinsic value of the item at the time an agreement on price was reached and the contract price. Refunds will not be made to recoup the amount of cost decreases that occur over time due to productivity gains (beyond 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 will 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 with a unit price in excess of $100,000; or in excess of $25,000 if the Contractor submitted, and certified the currency, accuracy and completeness of, cost or pricing data applicable to the item.

TRAVEL COSTS - ALTERNATE I (NAVSEA) (DEC 2005)

(a) Except as otherwise provided herein, the Contractor shall be reimbursed for its reasonable actual travel costs in accordance with FAR 31.205-46. The costs to be reimbursed shall be those costs accepted by the cognizant DCAA.

(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 incident to relocation are allowable to the extent provided in FAR 31.205-35;

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

CONTRACT SUMMARY FOR PAYMENT OFFICE (FIXED PRICE) (FEB 1997)

This entire contract is fixed price with the exception of CLIN 0006 which is Time and Materials and CLIN 0007 which is reimbursed at cost with no provision for profit/fee.

DETERMINATION OF PERFORMANCE INCENTIVE

(Applicable to Items 0003, 0005 and 0009)

A. General

1. The delivery of the Low Rate Initial Production (LRIP) Air and Missile Defense Radar (AMDR) Power Conversion Modules (PCM) (with all work required by the Section C completed) in time to support the construction of Lead Ship of the DDG 51 CLASS FLIGHT III and at a higher power density than current PCMs is of paramount importance to the Navy. This includes the completion of the CLIN 0001 Non-Recurring Engineering; the CLIN 0003 LRIP manufacture, factory test, and delivery to the Navy for land based testing; and CLIN 0009 through CLIN 0015 delivery of Full Rate Production (FRP) ship sets, all in time to allow installation on new construction ships, with deliveries in time to support ship construction in yard need dates. In order to attain this goal, it is in the Navy’s best interest to incentivize Contractor performance by rewarding Contractor efforts in connection with achieving this schedule performance and also to dis-incentivize late delivery relative to this milestone. Each day beyond the Government review time for the deliverable data identified in CLIN 0002 will cause an equivalent schedule adjustment to the required delivery dates specified in this clause. Also of importance is the overall size of each PCM. The depth and the height are fixed based on standards for maintainability and compartment heights, so the dimension that can be adjusted is the length. While smaller depth and height are desirable and goals are established in the technical specification for these dimensions, only the length will be incentivized by this clause. It is in the Navy’s best interest to incentivize Contractor performance by rewarding Contractor efforts in connection with achieving the length identified in their proposal and also to dis-incentivize not meeting the proposed length.

2. Accordingly, in addition to any fee or other compensation which may be paid to the Contractor, pursuant to other clause(s) of this contract, the Contractor may earn an additional incentive fee or incur a penalty, as determined by the Performance Incentive Fee Determining Official (PIFDO), pursuant to the procedures set forth in this clause. Any incentive fee earned or penalty imposed by this clause will be levied against the CLIN of this contract in which the incentive fee or penalty applies.

3. Pursuit of the Performance Incentive shall not come at the expense of the overall AMDR PCM effort. The Navy Program Office (PMS 320) will determine whether the Contractor has met this prerequisite by assessing the compliance with all of the technical parameters established in the contract. The incentive fee is earned with delivery of items that meet all requirements.

B. Available Incentive

The amount of any incentive fee payable to the Contractor, pursuant to this clause, shall be determined in accordance with the procedures set forth in paragraph D using the evaluation factors set forth in paragraph C below. The total incentive fee amount available pursuant to this clause is $2,000,000. Of the incentive fee amount available, $1,000,000 is available for the reduction of the physical dimensions of the AMDR PCM, $500,000 is available for early delivery of CLIN 0003, and $500,000 is available for early delivery of CLIN 0009. The dates identified in paragraph C below assume that the options for CLIN 0003 and CLIN 0004 are exercised coincident with the successful completion of SLIN 0001AA and the option for CLIN 0009 is exercised coincident with the successful completion of CLIN 0005. CLIN 0003 delivery shall be when the AMDR PCM hardware items are delivered to the Navy and shall not include the follow-on commissioning support. Delays that are wholly or partially the fault of the Contractor shall not be grounds for adjustments in the required delivery dates.

C. Evaluation Factor

The Contractor's performance under this clause will be evaluated against the following evaluation factor. CLIN 0005 performance incentive shall be associated with the external physical length dimension associated with each cabinet as required in Table I (Dimensions and weight for each AMDR PCM) of the Technical Performance Specification for DDG 51 Class AMDR Power Conversion Module (Attachment C). CLIN 0003 and CLIN 0009 delivery date shall be executed in accordance with Section F – Deliveries or Performance, 52.211-8 TIME OF DELIVERY (JUN 1997), and Section E - Inspection and Acceptance. The performance and schedule incentive fee earned, if any, will be determined in accordance with the Table below. The parties hereby agree that the dates contained in the Table below may or may not be adjusted as a result of any negotiated “changes” in accordance with the “Changes” clause, at the discretion of the Navy.

Performance Incentive Associated with CLIN 0005 AMDR PCM Physical Dimensions

AMDR PCM Cabinet Dimensions Incentive Target Length (TL) as identified in proposal $0 (as defined in the technical specification)

Length equal to or less than 70% of TL

$1,000,000

(for measured lengths between TL and 70% of TL, the incentive shall be calculated linearly between the value of $0 and $1,000,000)

Length equal to or greater than 130% of TL

-$500,000

(for measured lengths between TL and 130% of TL, the dis-incentive shall be calculated linearly between the value of $0 and -$500,000. In no case shall the length exceed the threshold value established in the Technical Performance Specification for DDG 51 Class AMDR Power Conversion Module (Attachment C))

The following chart is provided as an example to depict the calculation of the length incentive as described above:

Schedule Incentive Associated with CLIN 0003 Delivery Date

Delivery

Incentive

20+ calendar days ahead of RDD1 $500,000 10+ calendar days ahead of RDD1 $250,000 Required Deliver Date #1 (RDD1): 24 months after contract award $0 1-20 calendar days after RDD1 - $25,000 21-40 calendar days after RDD1 - $75,000 41-60 calendar days after RDD1 - $150,000 61+ calendar days after RDD1 - $250,000

Schedule Incentive Associated with CLIN 0009 Delivery Date

Delivery

Incentive

20+ calendar days ahead of RDD2 $500,000 10+ calendar days ahead of RDD2 $250,000 Required Deliver Date #2 (RDD2): 42 months after contract award $0 1-20 calendar days after RDD2 - $25,000 21-40 calendar days after RDD2 - $75,000 41-60 calendar days after RDD2 - $150,000 61+ calendar days after RDD2 - $250,000

D. Performance Incentive Fee Determining Official

The PIFDO (the Contracting Officer) will determine the Performance Incentive Fee due the Contractor for each evaluation factor.

E. Performance Incentive Determination and Reclama Procedures

1. Within twenty-one (21) calendar days after delivery of the ship set of AMDR PCM within a CLIN, the Contractor shall furnish to the PIFDO a self-evaluation and such other information as may be reasonably required to assist the PIFDO in its evaluation of the Contractor’s performance for the factors listed in paragraph (C). Included in the self-evaluations will be a rating with rationale supporting the proposed rating. If a factor is not addressed, the PIFDO will consider the Contractor non-responsive for that item and may determine a performance incentive fee amount of zero dollars.

2. Within fifteen (15) working days after the Contractor provides each self-evaluation, the PIFDO will prepare a performance evaluation letter and will provide it to the Contractor. Provided the PIFDO agrees with the Contractor’s self-evaluation, the performance evaluation letter shall indicate a final incentive fee or penalty determination. If the PIFDO does not concur with the Contractor’s self-evaluation, disagreements shall be expressed in the performance evaluation letter to the Contractor.

3. If the Contractor does not concur with the PIFDO’s performance evaluation letter, the Contractor shall submit written comments and any supporting documentation to the PIFDO within five (5) working days of receiving the performance evaluation letter.

4. Within ten (10) working days of receiving any Contractor comments or reclama, the PIFDO shall make a final determination for the performance incentive fee earned for the paragraph (C) factor under evaluation.

5. Within twenty-one (21) calendar days of the final determination, the PIFDO will notify the Contractor, in writing, of the final determination and will issue a unilateral modification to the contract to implement the Performance Incentive.

F. Finality of Incentive Fee Determining Official's Determination of the Performance Incentive Fee

The determinations of the amount of the Performance Incentive Fee, if any, to be paid to the Contractor is a unilateral decision made solely at the discretion of the PIFDO.

Section C - Descriptions and Specifications

Item 0001 - DDG 51 AMDR PCM LOW RATE INITIAL PRODUCTION UNIT NRE AND LLTM

Item 0001AA - DDG 51 AMDR PCM LOW RATE INITIAL PRODUCTION UNIT NRE

1.0 SCOPE: The Contractor shall perform the Non-Recurring Engineering (NRE) Preliminary and Detailed Design for a fully integrated Arleigh Burke Class Destroyer (DDG 51) Air and Missile Defense Radar (AMDR) Power Conversion Module (PCM) ship set suitable for application on new construction DDG 51 Flight III ships and to meet the physical, functional and performance requirements specified in the Technical Performance Specification for DDG 51 Class AMDR Power Conversion Module (Attachment C) as referenced therein. A ship set of PCMs shall be defined as two identical PCMs that each meet the requirements contained in the Technical Performance Specification for DDG 51 Class AMDR Power Conversion Module (Attachment C) and any ancillary associated items. Where disagreement occurs between the referenced specifications, the Technical Performance Specification for DDG 51 Class AMDR Power Conversion Module shall take precedence. For the purpose of this contract, the Technical Performance Specification for DDG 51 Class AMDR Power Conversion Module shall be considered Prime Item Development Specification. It is noted that items in the Technical Performance Specification for DDG 51 Class AMDR Power Conversion Module that are noted as “To Be Resolved” (TBR) have values chosen to be the basis of Contractor pricing, but these values may change over the course of the contract based on interface agreements with the ship and the AMDR vendors and the Navy, therefore modifications to the contract may be required to adjust these values. The Contractor shall produce the engineering documentation to support validity of the design and to support the integration of the AMDR PCM into various sites identified in Attachment J, including: the Land Based Engineering Site (LBES) located at the Naval Surface Warfare Center Carderock Division - Ship Systems Engineering Station (NSWCCD-SSES), Philadelphia, PA; the AMDR land based test sites at the Surface Combat Systems Center (SCSC), Wallops Island, VA; the Navy’s Power Hardware in the Loop (PHIL)/Controller Hardware In the Loop (CHIL) test site; and the ship. The Contractor shall provide services, materials, facilities and personnel necessary to perform the tasks identified below.

1.1 PROGRAM MANAGEMENT AND CONTROL: The Contractor shall provide program management, planning, control, subcontracts management, and schedule accounting and 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 project management teams and systems engineering teams in conjunction with Navy representatives to ensure emergent management and technical issues are identified and resolved expediently. The requirement traceability tracking sheet shall be based on the Government furnished AMDR PCM 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 method of verifying the requirement, and any comments that would assist in assessing the validity of the requirement. The Contractor shall utilize the Navy Integrated Data Environment (IDE), hosted through iNAVSEA, as the repository for all final deliverables generated under this contract as listed in Attachment A and as a comprehensive library of any GFI provided to the Contractor over the course of the development. The Navy will provide access to iNAVSEA for no more than 10 Contractor personnel. The Contractor shall maintain a separate contractor IDE to serve as a collaborative data environment for the Contractor and Government team which contains all pertinent data about the project throughout its development and delivery, including drafts of final deliverables and documents internal to the Contractor. All items posted to the both IDEs, including drafts of deliverables that are not final versions, shall be considered delivered for purposes of the DFARS data rights clauses (and subject to the same rights asserted for final deliveries). However, these non-final versions shall not constitute acceptance for purposes of Section E or the DFARS data rights clauses. Any final deliverable posted to the Navy IDE shall be accompanied by a forwarding letter from the Contractor to the Contracting Officer’s Representative (COR) designating the intent to satisfy a formal deliverable.

1.1.1 PROGRAM PLAN: The Contractor shall develop and maintain a Program Plan. The Program Plan shall be based on the Integrated Management Plan from the Contractor’s proposal. The Program Plan shall include an event-based Integrated Master Schedule (IMS), reflecting how the effort will be executed, including timing of reviews.

The IMS shall be developed in a manner that reflects the Contractor’s customary way of organizing projects and logically network detailed program activities. The schedule shall contain the planned events and milestones, accomplishments, exit criteria, and activities from contract award to the completion of the contract. The Contractor shall quantify risk in hours, days, or weeks of delay and provide optimistic, pessimistic, and most likely duration for each IMS activity and event. The schedule shall be maintained and made available to the Navy electronically on a monthly basis during the execution of the effort, in both native and PDF formats on the iNAVSEA IDE. The IMS shall be provided initially as part of the Program Plan and shall be updated as an appendix to the Progress Reports.

The Contractor shall ensure schedule integration with its 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. The data management program, including Contractor IDE structure, format, processes, and procedures, shall be documented as part of the contract Program Plan. The list of components comprising the LLTM (Section J Attachment I to this contract) shall also be included as part of the contract Program Plan. The Contractor shall detail in the Program Plan the steps taken to identify the second source described in CLIN 0018 and the process for enabling independent development of the power electronics Line Replaceable Units (LRUs).

1.1.1.1 SYSTEMS ENGINEERING MANAGEMENT PLAN: The Contractor shall develop and maintain a Systems Engineering Management Plan (SEMP) as a companion document in response to applicable sections of the PMS 320 Systems Engineering Master Strategy (SEMS), provided as Government Furnished Information (GFI). The SEMP shall serve as a companion document to the SEMS to ensure complete coverage of all areas of the systems engineering process. The SEMP shall address technical planning, requirements management, technical reviews, risk management, and configuration management. The SEMP shall include a requirement traceability tracking sheet that includes all of the stated requirements of the contract and the associated Technical Performance Specification for DDG 51 Class AMDR Power Conversion Module and any additional derived design, performance or technical requirements beyond those stated in these documents. As part of this SEMP the contractor shall also include a Software Development Plan (SDP). The SDP shall specify the entire software program and the performance characteristics of each Computer Software Configuration Item (CSCI). The SDP shall serve as the benchmark for the contractor’s software development effort and shall be periodically evaluated and updated subject to Government review and approval. The SDP shall follow the framework of IEEE/EIA Std 12207 regarding subject content, level of detail, and completeness. The Contractor shall allocate the performance requirements into the CSCIs listed in the SDP. In addition, should the Contractor utilize the Windows 7 Operating System, the Contractor shall ensure that all aspects of software identified in the SDP are in accordance with DEPARTMENT OF THE NAVY (DON) APPLICATION COMPATIBILITY WITH WINDOWS 7 OPERATING SYSTEM memo dated 6 December 2012 and SECNAVINST 5230.15 dated 10 April 2009. The information content of the SDP shall follow the framework of IEEE/EIA Std. 12207 with regard to subject content, level of detail, and completeness.

1.1.1.2 RISK: 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. This risk management program shall be documented in the SEMP. 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; defining methods or alternatives to mitigate or minimize these risks, including the identification of criteria upon which programmatic decisions can be based, and conducting a Schedule Risk Assessment (SRA). The risk management program shall include the Information Assurance (IA) risk assessment artifacts in accordance with NAVSEA Instruction 9400.2. Plans for addressing parts obsolescence shall be included in the Program Plan. The Contractor shall identify and mitigate the risk of component obsolescence, and shall plan a technology refresh/insertion program.

1.1.1.3 IN-PLANT VISITS: The Navy reserves the right to conduct in-plant visits of the Contractor’s facilities to review implementation of the Contractor’s schedule management system, to understand the methods the Contractor utilizes to determine progress, and to observe in-process design, testing, and hardware status. The intent is to ensure maximum visibility of the Contractor’s technical and schedule performance.

1.1.2 PROGRESS REPORTS: The Contractor shall submit monthly Progress Reports that reflect the technical and schedule status of the effort. A copy of the invoices submitted shall be appended to the Progress Report (the invoices shall identify names, labor categories, hours, and rates for labor associated with CLIN 0006 and CLIN 0007 conducted during the period). The Progress Report shall include a monthly spend plan for Time and Materials CLINs on the contract showing the expenditures predicted throughout the period of performance. The Contractor shall also provide by secure electronic mail a short “weekly highlights” by close of business on Thursdays to provide a snapshot of the technical progress or performance issues to the Navy on a more immediate basis. The Progress Report shall contain the following information:

Planned efforts: The Contractor shall provide a copy of the schedule established in the Program Plan that has been updated to reflect changes to planned tasks/milestones. The Contractor shall note significant accomplishments and identification of major problems/deficiencies with impact and recommended solutions.

Actual efforts: The Contractor shall have an updated schedule to reflect work performed during the current reporting period. The Contractor shall maintain one schedule that will be updated monthly for both planned and actual efforts. The Contractor shall detail work performed by WBS during the current reporting period and include an overall status of each milestone, task, or unit of work. The Contractor shall document significant results of conferences, trips, or directives from the Government’s representatives. The Contractor shall maintain an action list for programmatic and technical items that arise during the course of the effort and a status of deliverable items.

Future efforts: The Contractor should identify any technical risks/challenges or problems anticipated in the next reporting period. The Contractor shall provide a brief description of the work envisioned for the ensuing reporting period by WBS, highlighting any changes to the schedule and the objectives of those efforts.

1.1.3 Meetings and Periodic Reviews: The Contractor shall plan, conduct and document meetings and reviews held between the Navy and the Contractor as necessary. The Contractor and the Navy, through electronic mail, will develop agendas for meetings jointly. Copies of all presentation materials shall be made available to the Navy for the purpose of documenting the meeting. A read ahead version of the presentation materials shall be provided three days in advance of the start of the meeting and shall not change more than 10% from the final version as presented. The Contractor shall prepare Meeting Minutes which document all material presented, key discussions and decisions made, and any action items resulting from the meeting. The Contractor shall maintain a running list of action items from meetings and reviews, including responsible party, response date and status, and include that in the overall contract action items list.

1.1.3.1 The Contractor shall participate in a post contract award conference (contract kick-off meeting) at a site designated by the Contractor and approved by the Navy. The post award conference shall be no longer than one business day and shall occur within the first twenty days of the contract. The post contract award conference shall precede the submission of the Contractor’s Program Plan to ensure results of the post contract award conference are incorporated in the Program Plan.

1.1.3.2 The Contractor shall plan and conduct periodic formal technical reviews and In-Process Reviews (IPRs) on matters as coordinated with the Navy. Reviews shall include, at a minimum, software requirements review (SRR), a preliminary design review (PDR), and a critical design review (CDR) (Note: PDR and CDR shall include the plans, status and results of Controller Hardware in the Loop (CHIL) testing as required and the plan for Power Hardware in the Loop (PHIL) critical subcomponent testing as an integral part of the overall design and testing process, to the extent the artifacts are available to be tested as part of this CLIN). The Contractor shall notify the Navy of reviews with preliminary agenda topics, security considerations, locations and times. The Contractor shall conduct their reviews in accordance with the entrance and exit criteria identified in the SEMP. It should be noted that subsequent execution of option CLINs are dependent on successful completion of review as defined in the approved SEMP.

Formal reviews may be combined with IPRs. The Contractor shall make the presentation material that is to be presented at the reviews and conferences available at least one week in advance of the review and/or conference start

(three days from IPRs). As approved by the Navy, the Contractor may conduct the reviews on a “rolling wave” basis, where subcomponent reviews are conducted prior to the final review. The Navy will make the ultimate selection and approval of the entrance criteria, in addition to the exit criteria (which includes the successful completion of the entrance criteria items). The PDR is conducted to establish the Allocated Baseline and is the first opportunity for the Government to closely observe and evaluate the Contractor's hardware and software design.

Generally, the PDR assesses the system preliminary design as captured in performance specifications for each configuration item in the system, and ensures that each function has been allocated to one or more system configuration items. Successful completion of the PDR formally starts detail design and triggers authorization of the Contractor to procure LLTM. The CDR establishes the Initial Product Baseline. The CDR also assesses the system's design readiness to begin production, at an acceptable level of risk, to ensure that a system can proceed into fabrication, demonstration, and testing, and can meet stated performance requirements. The CDR assesses the system’s final design as captured in product specifications, drawings, test results, and models for each configuration item in the system's Initial Product Baseline, and ensures that each Configuration Item in the Initial Product Baseline has been captured in the detailed design documentation. In conjunction with the CDR, the Contractor shall conduct Production Readiness Review(s) prior to the inception of fabrication, and also prior to conduct of any testing of the manufactured items, to demonstrate the maturity of the design, appropriate resources are available for the hardware manufacture, that all design artifacts have been completed with sufficient detail, and the availability of facilities to successfully complete the fabrication process.

1.1.3.3 The Contractor shall prepare and deliver a Preliminary Design Report and a Detailed Design Report of the AMDR PCM and conduct a PDR and CDR for the purpose of describing the aspects of the designs chosen. The PDR and CDR and the associated Design Reports shall include: trade-off analyses used to arrive at the design; details of methods used in the design process; detailed design drawings and interface control drawings; the status of the risk management efforts; an assessment of the impact of cost drivers in the design; testing requirements; and a program review of the status of the design to date. Key performance parameters along with component designs, control philosophy and documentation, system functional requirements, potential shipboard impact, interface requirements, size, weight, electromagnetic fields and interference criteria, thermal management, manufacturability, reliability-maintainability-availability (RM&A) and performance requirements shall be enumerated and explained. The Contractor shall document verification of all requirements and reference other documents that verify specific requirements (e.g. reliability analysis). The Contractor shall identify dates for the reviews in the Program Plan. PDR and CDR meetings are planned to be at the Contractor's location. In no event shall the PDR be later than six (6) months after contract award.

1.1.3.3.1 The Contractor shall submit a Request for Approval to Procure Long Lead Time Materials (LLTM) from those items identified in Section J Attachment I prior to the Release for Manufacture by submitting to the Navy the specifications of the components to be ordered, submitting appropriate drawings describing the items usage, and providing to the Navy a cost and schedule impact if the request were denied. Approval of the CDR by the Navy and the exercise of the option for CLIN 0003 shall be considered formal release for manufacture and completion of SLIN 0001AA. Production Readiness Reviews (PRRs) shall be conducted prior to the exercise of CLIN 0009. The Contractor shall prepare for their review in accordance with the entrance and exit criteria in the SEMP.

1.1.4 GOVERNMENT FURNISHED INFORMATION: Plans, drawings, specifications, designs, photographs, and any other engineering and manufacturing information furnished by the Government shall remain Government property and shall be reproduced only as authorized in writing by the Government, shall be used for performance of the work specified by this agreement, and shall be returned to the Government upon request. Such a request may be made during performance or at termination or completion of the effort, and the Contractor shall thereafter make no further use of any information derived there from without prior written consent of the Government. A list of information provided by the Government is included in Section J.

1.1.4.1 Proper Handling of Controlled, Unclassified Information. Data provided shall not be used in any other context or in any other venue without the permission of PMS 320. Documents annotated with any distribution statements other than Distribution A – Public Release shall be communicated electronically only be secure means.

No document shall have a proprietary marking since marking of technical data or software as "Proprietary" is not a proper or conforming marking in accordance with paragraph (f) of DFARS 252.227-7013 and 252.227-7014. Any appropriately disclosed data rights assertions shall be indicated on technical data. The fact that certain program information is unclassified does not automatically allow its public release, dissemination or disclosure. No publicity releases or public displays of any kind are authorized on this program without prior expressed written consent of COMNAVSEASYSCOM (SEA 00D) or higher DoD authority. All documents shall have the following markings or legends (the distribution statement shall be located above the title block):

DISTRIBUTION STATEMENT D: Distribution authorized to DoD and U.S. DoD contractors only; Critical Technology (fill in origination date). Other U.S.