N0002415R2309_4.6.15.doc

Section B - Supplies or Services and Prices

CLIN Number 0001

PSA for FREEDOM Variant (Hull 1)

CPAF

Provide engineering and management in support of Post Shakedown Availability (PSA) for FREEDOM Variant (Hull 1) (See Note C)

FOB: Origin

PURCHASE REQUEST NUMBER: N0002414NR71469

ESTIMATED COST

BASE FEE

SUBTOTAL EST COST + BASE

MAX AWARD FEE

TOTAL EST COST + FEE

CLIN Number 0002

Specified PSA Work Items

Provide effort and material to perform specified PSA work items inclusive of tests and post-repair sea trials for FREEDOM Variant (Hull 1) (See Note C)

CLIN Number 0003

PSA Support- Level of Effort

Provide additional effort to complete performance of PSA inclusive of tests and post-repair sea trials for FREEDOM Variant (Hull 1) (See Note C)

CLIN Number 0004

CPAF

Provide additional effort and material to complete emergent work for FREEDOM Variant (Hull 1) (See Notes C and D)

CLIN Number 0005

CPAF

Provide Labor and Material required during Drydocking of FREEDOM Variant (Hull 1) (See Notes C and D)

CLIN Number 0006

CPAF

Provide additional Industrial Support for Fleet sponsored work items for installation during FREEDOM Variant (Hull 1) PSA (See Notes C and D)

CLIN Number 0007

CPAF

Provide additional industrial support for installation work items in support of FREEDOM Variant (Hull 1) (See Notes C and D)

CLIN Number 0008

Material

COST

Provide material designated in PSA Work items as Contractor Furnished (CFM) to perform specified PSA work items inclusive of tests and post-repair sea trials for FREEDOM Variant (Hull 1) (See Note C)

ESTIMATED COST

CLIN Number 0101

PSA for INDEPENDENCE Variant (Hull 1)

Provide engineering and management in support of Post Shakedown Availability (PSA) for INDEPENDENCE Variant (Hull 1) (See Note C)

CLIN Number 0102

Specified PSA Work Items

Provide effort and material to perform specified PSA work items inclusive of tests and post-repair trials for INDEPENDENCE Variant (Hull 1) (See Note C)

CLIN Number 0103

PSA Support- Level of Effort

Provide additional effort to complete performance of PSA inclusive of tests and post-repair sea trials for INDEPENDENCE Variant (Hull 1) (See Note C)

CLIN Number 0104

CPAF

Provide additional effort and material to complete emergent work for INDEPENDENCE Variant (Hull 1) (See Notes C and D)

CLIN Number 0105

CPAF

Provide Labor and Material required during Drydocking for INDEPENDENCE Variant (Hull 1) (See Notes C and D)

CLIN Number 0106

CPAF

Provide additional Industrial Support for Fleet sponsored work items for installation during the INDEPENDENCE Variant (Hull 1) PSA (See Notes C and D)

CLIN Number 0107

CPAF

Provide additional industrial support for installation work items in support of INDEPENDENCE Variant (Hull 1) (See Notes C and D)

CLIN Number 0108

Material

COST

Provide material designated in PSA Work items as Contractor Furnished (CFM) to perform specified PSA work items inclusive of tests and post-repair sea trials for INDEPENDENCE Variant (Hull 1) (See Note C)

ESTIMATED COST

CLIN Number 0201

CPAF

Provide engineering and management in support of Post Shakedown Availability (PSA) for FREEDOM Variant (Hull 2) (See Notes C and D)

CLIN Number 0202

CPAF

Provide effort and material to perform specified PSA work items inclusive of tests and post-repair trials for FREEDOM Variant (Hull 2) (See Notes C and D)

CLIN Number 0203

CPAF

Provide additional effort to complete performance of PSA inclusive of tests and post-repair sea trials for FREEDOM Variant (Hull 2) (See Notes C and D)

CLIN Number 0204

CPAF

Provide additional effort and material to complete emergent work for FREEDOM Variant (Hull 2) (See Notes C and D)

CLIN Number 0205

CPAF

Provide Labor and Material required during Drydocking for FREEDOM Variant (Hull 2) (See Notes C and D)

CLIN Number 0206

CPAF

Provide additional Industrial Support for Fleet sponsored work items for installation during FREEDOM Variant (Hull 2) PSA (See Notes C and D)

CLIN Number 0207

CPAF

Provide additional industrial support for installation work items in support of FREEDOM Variant (Hull 2) (See Notes C and D)

CLIN Number 0208

COST

Provide material designated in PSA Work items as Contractor Furnished (CFM) to perform specified PSA work items inclusive of tests and post-repair sea trials for FREEDOM Variant (Hull 2) (See Notes C and D)

ESTIMATED COST

CLIN Number 0301

CPAF

Provide engineering and management in support of Post Shakedown Availability (PSA) for INDEPENDENCE Variant (Hull 2) (See Notes C and D)

CLIN Number 0302

CPAF

Provide effort and material to perform specified PSA work items inclusive of tests and post-repair trials for INDEPENDENCE Variant (Hull 2) (See Notes C and D)

CLIN Number 0303

CPAF

Provide additional effort to complete performance of PSA inclusive of tests and post-repair sea trials for INDEPENDENCE Variant (Hull 2) (See Notes C and D)

CLIN Number 0304

CPAF

Provide additional effort and material to complete emergent work for INDEPENDENCE Variant (Hull 2) (See Notes C and D)

CLIN Number 0305

CPAF

Provide Labor and Material required during Drydocking for INDEPENDENCE Variant (Hull 2) (See Notes C and D)

CLIN Number 0306

CPAF

Provide additional Industrial Support for Fleet sponsored work items for installation during the INDEPENDENCE Variant (Hull 2) PSA (See Notes C and D)

CLIN Number 0307

CPAF

Provide additional industrial support for installation work items in support of INDEPENDENCE Variant (Hull 2) (See Notes C and D)

CLIN Number 0308

COST

Provide material designated in PSA Work items as Contractor Furnished (CFM) to perform specified PSA work items inclusive of tests and post-repair sea trials for INDEPENDENCE Variant (Hull 2) (See Notes C and D)

ESTIMATED COST

CLIN Number 0401

CPAF

Provide engineering and management in support of Post Shakedown Availability (PSA) for INDEPENDENCE Variant (Hull 3) (See Notes C and D)

CLIN Number 0402

CPAF

Provide effort and material to perform specified PSA work items inclusive of tests and post-repair trials for INDEPENDENCE Variant (Hull 3) (See Notes C and D)

CLIN Number 0403

CPAF

Provide additional effort to complete performance of PSA inclusive of tests and post-repair sea trials for INDEPENDENCE Variant (Hull 3) (See Notes C and D)

CLIN Number 0404

CPAF

Provide additional effort and material to complete emergent work for INDEPENDENCE Variant (Hull 3) (See Notes C and D)

CLIN Number 0405

CPAF

Provide Labor and Material required during Drydocking for INDEPENDENCE Variant (Hull 3) (See Notes C and D)

CLIN Number 0406

CPAF

Provide additional Industrial Support for Fleet sponsored work items for installation during the INDEPENDENCE Variant (Hull 3) PSA (See Notes C and D)

CLIN Number 0407

CPAF

Provide additional industrial support for installation work items in support of INDEPENDENCE Variant (Hull 3) (See Notes C and D)

CLIN Number 0408

COST

Provide material designated in PSA Work items as Contractor Furnished (CFM) to perform specified PSA work items inclusive of tests and post-repair sea trials for INDEPENDENCE Variant (Hull 3) (See Notes C and D)

ESTIMATED COST

CLIN Number 0501

CPAF

Provide engineering and management in support of Post Shakedown Availability (PSA) for INDEPENDENCE Variant (Hull 4) (See Notes C and D)

CLIN Number 0502

CPAF

Provide effort and material to perform specified PSA work items inclusive of tests and post-repair trials for INDEPENDENCE Variant (Hull 4) (See Notes C and D)

CLIN Number 0503

CPAF

Provide additional effort to complete performance of PSA inclusive of tests and post-repair sea trials for INDEPENDENCE Variant (Hull 4) (See Notes C and D)

CLIN Number 0504

CPAF

Provide additional effort and material to complete emergent work for INDEPENDENCE Variant (Hull 4) (See Notes C and D)

CLIN Number 0505

CPAF

Provide Labor and Material required during Drydocking for INDEPENDENCE Variant (Hull 4) (See Notes C and D)

CLIN Number 0506

CPAF

Provide additional Industrial Support for Fleet sponsored work items for installation during the INDEPENDENCE Variant (Hull 4) PSA (See Notes C and D)

CLIN Number 0507

CPAF

Provide additional industrial support for installation work items in support of INDEPENDENCE Variant (Hull 4) (See Notes C and D)

CLIN Number 0508

COST

Provide material designated in PSA Work items as Contractor Furnished (CFM) to perform specified PSA work items inclusive of tests and post-repair sea trials for INDEPENDENCE Variant (Hull 4) (See Notes C and D)

ESTIMATED COST

CLIN Number 0601

CPAF

Provide engineering and management in support of Post Shakedown Availability (PSA) for INDEPENDENCE Variant (Hull 5) (See Notes C and D)

CLIN Number 0602

CPAF

Provide effort and material to perform specified PSA work items inclusive of tests and post-repair trials for INDEPENDENCE Variant (Hull 5) (See Notes C and D)

CLIN Number 0603

CPAF

Provide additional effort to complete performance of PSA inclusive of tests and post-repair sea trials for INDEPENDENCE Variant (Hull 5) (See Notes C and D)

CLIN Number 0604

CPAF

Provide additional effort and material to complete emergent work for INDEPENDENCE Variant (Hull 5) (See Notes C and D)

CLIN Number 0605

CPAF

Provide Labor and Material required during Drydocking for INDEPENDENCE Variant (Hull 5) (See Notes C and D)

CLIN Number 0606

CPAF

Provide additional Industrial Support for Fleet sponsored work items for installation during the INDEPENDENCE Variant (Hull 5) PSA (See Notes C and D)

CLIN Number 0607

CPAF

Provide additional industrial support for installation work items in support of INDEPENDENCE Variant (Hull 5) (See Notes C and D)

CLIN Number 0608

COST

Provide material designated in PSA Work items as Contractor Furnished (CFM) to perform specified PSA work items inclusive of tests and post-repair sea trials for INDEPENDENCE Variant (Hull 5) (See Notes C and D)

ESTIMATED COST

CLIN Number 0701

CPAF

Provide engineering and management in support of Post Shakedown Availability (PSA) for INDEPENDENCE Variant (Hull 6) (See Notes C and D)

CLIN Number 0702

CPAF

Provide effort and material to perform specified PSA work items inclusive of tests and post-repair trials for INDEPENDENCE Variant (Hull 6) (See Notes C and D)

CLIN Number 0703

CPAF

Provide additional effort to complete performance of PSA inclusive of tests and post-repair sea trials for INDEPENDENCE Variant (Hull 6) (See Notes C and D)

CLIN Number 0704

CPAF

Provide additional effort and material to complete emergent work for INDEPENDENCE Variant (Hull 6) (See Notes C and D)

CLIN Number 0705

CPAF

Provide Labor and Material required during Drydocking for INDEPENDENCE Variant (Hull 6) (See Notes C and D)

CLIN Number 0706

CPAF

Provide additional Industrial Support for Fleet sponsored work items for installation during the INDEPENDENCE Variant (Hull 6) PSA (See Notes C and D)

CLIN Number 0707

CPAF

Provide additional industrial support for installation work items in support of INDEPENDENCE Variant (Hull 6) (See Notes C and D)

CLIN Number 0708

COST

Provide material designated in PSA Work items as Contractor Furnished (CFM) to perform specified PSA work items inclusive of tests and post-repair sea trials for INDEPENDENCE Variant (Hull 6) (See Notes C and D)

ESTIMATED COST

CLIN Number 0801

CPAF

Provide engineering and management in support of Post Shakedown Availability (PSA) for INDEPENDENCE Variant (Hull 7) (See Notes C and D)

CLIN Number 0802

CPAF

Provide effort and material to perform specified PSA work items inclusive of tests and post-repair trials for INDEPENDENCE Variant (Hull 7) (See Notes C and D)

CLIN Number 0803

CPAF

Provide additional effort to complete performance of PSA inclusive of tests and post-repair sea trials for INDEPENDENCE Variant (Hull 7) (See Notes C and D)

CLIN Number 0804

CPAF

Provide additional effort and material to complete emergent work for INDEPENDENCE Variant (Hull 7) (See Notes C and D)

CLIN Number 0805

CPAF

Provide Labor and Material required during Drydocking for INDEPENDENCE Variant (Hull 7) (See Notes C and D)

CLIN Number 0806

CPAF

Provide additional Industrial Support for Fleet sponsored work items for installation during the INDEPENDENCE Variant (Hull 7) PSA (See Notes C and D)

CLIN Number 0807

CPAF

Provide additional industrial support for installation work items in support of INDEPENDENCE Variant (Hull 7) (See Notes C and D)

CLIN Number 0808

COST

Provide material designated in PSA Work items as Contractor Furnished (CFM) to perform specified PSA work items inclusive of tests and post-repair sea trials for INDEPENDENCE Variant (Hull 7) (See Notes C and D)

ESTIMATED COST

CLIN Number 0901

CPAF

Provide engineering and management in support of Post Shakedown Availability (PSA) for INDEPENDENCE Variant (Hull 8) (See Notes C and D)

CLIN Number 0902

CPAF

Provide effort and material to perform specified PSA work items inclusive of tests and post-repair trials for INDEPENDENCE Variant (Hull 8) (See Notes C and D)

CLIN Number 0903

CPAF

Provide additional effort to complete performance of PSA inclusive of tests and post-repair sea trials for INDEPENDENCE Variant (Hull 8) (See Notes C and D)

CLIN Number 0904

CPAF

Provide additional effort and material to complete emergent work for INDEPENDENCE Variant (Hull 8) (See Notes C and D)

CLIN Number 0905

CPAF

Provide Labor and Material required during Drydocking for INDEPENDENCE Variant (Hull 8) (See Notes C and D)

CLIN Number 0906

CPAF

Provide additional Industrial Support for Fleet sponsored work items for installation during the INDEPENDENCE Variant (Hull 8) PSA (See Notes C and D)

CLIN Number 0907

CPAF

Provide additional industrial support for installation work items in support of INDEPENDENCE Variant (Hull 8) (See Notes C and D)

CLIN Number 0908

COST

Provide material designated in PSA Work items as Contractor Furnished (CFM) to perform specified PSA work items inclusive of tests and post-repair sea trials for INDEPENDENCE Variant (Hull 8) (See Notes C and D)

ESTIMATED COST

CLIN Number 1000

CPAF

Provisioned Items Orders (See Notes A, C and D)

FOB: Destination

CLIN Number 1100

Data

Data for Items 0001- 0008, 0101-0108, 0201-0208, 0301-0308, 0401- 0408, 0501-0508, 0601-0608, 0701-0708, 0801-0808, and 0901-0908. Not Separately priced (NSP) (See DD Form 1423, Exhibit A, attached hereto) (See Note B)

NET AMT

CLIN Number 1101

PTD Data

NET AMT

NOTE A - This item will only be priced if ordered in accordance with the Section C clause C-1, “PROVISIONED ITEMS ORDERS – ALTERNATE III (NAVSEA)(MAR 2001).” PRIVATE NOTE B - Offeror shall complete the "Price Group" and "Estimated Total Price" blocks of each data item on the Contract Data Requirements List(s), attached hereto.

NOTE C - The COST OF MONEY FOR FACILITIES CAPITAL is not a fee-bearing cost under this contract. However, such amount is included in the Total Estimated Cost for purposes of the “LIMITATION OF COST” clause or “LIMITATION OF FUNDS” Clause of this contract, as applicable.PRIVATE NOTE D - Option item to which the option clause in SECTION I-2 applies and which is to be supplied only if and to the extent said option is exercised.PRIVATE

CLAUSES INCORPORATED BY FULL TEXT

B-1 CONTRACT SUMMARY FOR PAYMENT OFFICE (COST TYPE) (FEB 1997)

This entire contract is cost type.

CLAUSES INCORPORATED BY FULL TEXT

B-2 DETERMINATION OF FEE (NAVSEA) (DEC 2010)

(a) Minimum Fee

The base fee, as set forth in Section B of this contract, shall constitute a minimum fee to be paid for the performance of this contract. The Base Fee shall be paid in accordance with the clause of this contract entitled “PAYMENT OF FEE(S) (COMPLETION) (NAVSEA) (MAY 1993)” and “FIXED FEE” (FAR 52.216‑8) for Items 0001, 0002, 0101 and 0102, and, if exercised, 0005, 0105, 0201, 0202, 0205, 0301, 0302, 0305, 0401, 0402, 0405, 0501, 0502, 0505, 0601, 0602, 0605, 0701, 0702, 0705, 0801, 0802, 0805, 0901, 0902, 0905, and 1000, and “PAYMENT OF FEE(S) (LEVEL OF EFFORT) (NAVSEA) (MAY 1993) and “FIXED FEE” (FAR 52.216‑8)” for Items 0003 and 0103, and if Options are exercised, 0004, 0006, 0007, 0104, 0106, 0107, 0203, 0204. 0206, 0207, 0303, 0304, 0306, 0307, 0403, 0404, 0406, 0407, 0503, 0504, 0506, 0507, 0603, 0604, 0606, 0607, 0703, 0704, 0706, 0707, 0803, 0804, 0806, 0807, 0903, 0904, 0906, 0907.

This clause documents the Award Fee Plan for applicable Items 0001-0003 and 0101-0103; if Orders are placed, Item 1000; and, if Options are exercised, Option Items 0004-0007, 0104-0107, 0201-0207, 0301-0307, 0401-0407, 0501-0507, 0601-0607, 0701-0707, 0801-0807 and 0901-0907.

(b) Award Fee

In addition to the minimum (or base fee) to be paid hereunder, if any, the Contractor may earn an award fee as determined by the Fee Determining Official (FDO). The Government's purpose in granting an award fee is to encourage and reward superior Contracting effort directed toward performance of this contract. The specifics for evaluation are set forth in paragraphs that follow.

(c) Award Fee Board

The Contractor's performance evaluation for each period will be conducted by an Award Fee Board (AFB) of a Chairperson/Co-Chairperson and not less than four (4) and a maximum of nine (9) other voting members consisting of:

CHAIRPERSON /CO-CHAIRPERSON

Primary: LCS Program Office, Post Delivery Director, PMS 501D

Alternate: LCS Program Office, Deputy Program Manager, PMS 501B

OTHER VOTING MEMBERS

(1) Executing SWRMC Administrative Contracting Officer (ACO), Code 410

(2) Executing SUPSHIP Program Office Representative, Code 152

(3) Procuring Contracting Officer, NAVSEA 02232

(4) LCS Program Office, Post Delivery Representative, PMS 501D

(5) Executing SUPSHIP Technical Engineering Directorate, Code 200 Representative

(6) LCS Program Office Technical Representative, PMS 501T

(7) LCS Post Delivery Hull Manager, PMS 501D

(8) Executing SUPSHIP Quality Assurance Directorate Code 300 Representative

(9) LCS Integrated Combat Systems Program Representative, IWS 8.0

(d) Fee Determining Official

The FDO, LCS Shipbuilding Program Manager (PMS 501), shall make determinations of the award fee due to the Contractor based upon the performance evaluation conducted by the Award Fee Board established pursuant to paragraph (c) above.

(e) Award Fee Determination and Reclama Procedures Within ten (10) days after the end of the evaluation period the Contractor shall, if desired, submit a self-assessment report to the AFB Chairperson, Procuring Contracting Officer, Administrative Contracting Officer, and the COR. This written assessment of the Contractor’s performance throughout the award fee period shall address each of the award fee factors and state the Contractor’s calculated award fee for the evaluation period. It shall contain supporting documentation and may also contain other relevant information, including any mitigating circumstances that may be reasonably expected to assist the AFB and FDO in determining the fee amount.

(1) Upon receipt of the Contractor’s self-assessment report, the COR will review and validate any inconsistencies, inaccuracies or areas of disagreement in the report and address the findings and supporting documentation to the AFB Chairperson, the Administrative Contracting Officer, and the Procuring Contracting Officer.

(2) Within twenty (20) days after the end of the evaluation period, and after receipt of all required CDRL deliverables, whichever is longer, the PMS 501D Hull Manager shall provide a Fee Recommendation Report of Contractor performance to the AFB Chairperson and Contracting Officer. This report shall clearly identify specific evaluation categories, factors or elements, and state the PMS 501D Hull Manager’s calculated award fee for the evaluation period.

(3) The Award Fee Board evaluation will be scheduled following receipt of required CDRL deliverables, the Contractor’s self-assessment report, if any, and Government input. The Contractor will be provided the opportunity to present a self-assessment brief at the Award Fee Board evaluation. This brief shall not exceed thirty (30) minutes. After reviewing both the Contractor’s and PMS 501D Hull Manager input, the Board will arrive at a consensus on the performance rating and advise the FDO of its recommendation including the reasons, rationale, and justifications .

(4) Within ten (10) working days from receipt of the Boards recommendations, the FDO will provide the Contracting Officer a final performance evaluation and determination of the award fee earned. The Contracting Officer will notify the Contractor of the determination of the award fee.

(5) Within five (5) working days of receipt of written notification, the Contractor may: 1) concur with the award fee determination or 2) submit to the FDO, with a copy to the Contracting Officer, written comments on the evaluation findings. In such case, these comments shall be considered by the FDO in establishing the award fee earned. If no written reclama is received within five (5) working days of written notification, the Contracting Officer will issue a unilateral modification to the contract to provide for award fee earned for that period within ten (10) working days after receipt of the required funding from the program office and approved by the Comptroller.

(6) If there is such a reclama, then within ten (10) working days from the receipt thereof, the FDO shall provide the Contracting Officer a final performance evaluation and determination of the award fee. The Contracting Officer will notify the Contractor of the FDO’s final determination.

(7) Upon written request by the Contractor to the FDO, the Chairman of the AFEB will assign a Board member to de-brief the Contractor, providing constructive feedback as to his performance and recommendations for improvement.

(f) Fee Determination Official’s Determination

Determinations of the FDO with respect to the amount of the award fee to be paid to the Contractor and the methodology for determining the award fee are unilateral decisions made solely at the discretion of the Government.

(g) Performance Objectives and Factors The Contractor's performance during each evaluation period will be judged in the objectives listed below. The Government reserves the right to make changes in performance objectives and factors or weights assigned to performance objectives by unilateral modification no later than ten (10) working days prior to the commencement of the evaluation period. Unsatisfactory performance under an award fee criterion may result in increased weighting for that factor in subsequent evaluation periods.

During the evaluation period, the Contractor may earn award fee for exceeding performance objectives. The performance objectives are categorized in the following areas: schedule, management, technical and cost. Their relative importance is reflected by the weighting factors provided below:

(1) Performance Objectives The following performance objectives will be evaluated during the evaluation period.

a. Schedule – Emphasis will be placed on the Contractor’s efforts toward development and achievement of aggressive, yet manageable, schedules to support major PSA milestones. The Contractor is to schedule major milestones to occur as early as possible to ensure a successful PSA. Adherence to or improvement upon scheduled key events and major production milestones is considered essential. Measures of success include:

i. Strict adherence to the PSA schedule milestone dates submitted by the Contractor and approved by the Government prior to the start of PSA and completing growth and new work within the PSA schedule. Actual completion dates will be compared to scheduled dates. Accelerating schedule while maintaining quality and cost is recognized as superior performance.

ii. Submission of an accurate, fully populated, resource-loaded Integrated Master Schedule (IMS) that provides for accomplishment of the total availability work package, including Alteration Installation Team (AIT) or other outside activity installation modifications. The IMS developed shall utilize a front-loaded approach of 70% of all production work complete at the 50% point of the availability for work tasked by the beginning of the availability. The Contractor shall also submit accurate, fully populated, resource-loaded IMS updates for inclusion of new and growth work.

iii. Adherence to or improvement upon the integrated schedule for the entire PSA work package as measured by the final Schedule Performance Index (SPI) at the end of the PSA.

iv. Timely completion and turnover of compartments to the Government in accordance with the Compartment Close-out schedule provided by the Contractor prior to the start of PSA.

b. Management – Emphasis will be placed on the Contractor’s effective and efficient management of resources (manpower) during the PSA and ability to manage growth and new work. Consideration will be given to timely negotiation and definitization of changes, including prompt and timely submission of proposals, notification to the Government of any identified problems, reasonableness of estimates, and provision of information required by the Government for negotiations. Consideration will also be given to effective subcontractor management throughout the execution of the PSA. Timely and accurate submission of contract deliverables, particularly schedule and cost data, crucial to Government oversight is considered essential. Cooperation with and support of the Contractor with the integration of outstanding new construction DD250 work items into the overall PSA schedule is mandatory. Active Contractor participation and preparedness for PSA Planning Conferences to discuss work packages, schedules and execution planning is required. Measures of success include:

i. Effectiveness of the Contractor’s workload management plan. Actual manning will be compared to projected manning.

ii. Acceptance, integration, and execution of new and growth work within the PSA.

iii. Effective subcontractor management, placing emphasis on the prime contractor’s ability to align subcontractor execution to government priorities throughout the execution of the PSA.

iv. Timeliness and accuracy of CDRL deliverables, particularly those associated with cost and schedule reports.

v. Judicious use of overtime, where contractually authorized, striking the appropriate balance between cost and responsiveness.

c. Technical – Emphasis will be placed in accomplishing the PSA work package with quality workmanship and minimal re-work. Contractor ability to clearly identify and resolve shipboard production and test problems will be monitored. Accuracy of the work packages and test procedures is integral to success. Care and protection of the ship and equipment during an intrusive industrial environment is considered an important element of the PSA. Prevention of equipment damage and contamination from industrial debris is to be accomplished through proactive protection including application of appropriate covers and proper utilization of storage facilities. Maintenance of safe and clean work areas free from accumulated industrial debris and rubbish is essential. Measures of success include:

i. Effectiveness of the Compartment Close-out process in delivering compartments without deficiencies.

ii. Quality of the workmanship as measured by equipment and material deficiencies identified during the Post Repair Sea Trials conducted at the conclusion of the PSA and associated manhours required to correct them.

iii. Quality of workmanship as measured by the re-work required to correct defective repairs and deficient work performed on equipment and shipboard spaces as part of the PSA work package.

iv. Effectiveness of the Contractor to identify and quickly resolve safety, care and protection problems on the ship during PSA.

v. Quality, timeliness and accuracy of Objective Quality Evidence (OQE) submittals during the work package certification process.

d. Cost – The most significant goal in this performance objective is accomplishment of work within the negotiated cost. The Contractor is required to provide realistic cost estimates and negotiate work in a timely manner. Accuracy of Estimate at Completion (EAC) to projected cost and delivery of all hours tasked is considered a reflection of cost control. Accurate cost accounting (labor, materials, management) of both prime and subcontractors is required. Proactive identification of cost problems, to include timely variance analysis, and Contractor effectiveness in problem resolution will be evaluated. Implementation of cost savings techniques will be viewed favorably. Measures of success include:

i. Providing timely negotiation of work tasked by the Government. Particularly crucial is new work and growth identified during the course of the PSA.

ii. Accuracy of the negotiated costs by comparing to actual costs and the Estimate at Completion (EAC).

iii. Cost management of the entire PSA work package as measured by the final Cost Performance Index (CPI) at the end of PSA. CPI will be measured both in cost (dollars) and Direct Production Labor (DPL manhours).

iv. The cost associated to correct equipment and compartment damage on the ship during PSA attributable to inadequate care and protection.

(h) Evaluation Periods/Award Fee Pool

(1) Award Fee Period

The Award Fee Board will evaluate the Contractor's performance on all active line items during the evaluation period. The single evaluation period is defined as:

Start - Upon contract award or option exercise, as applicable.

End - 90 days after PSA Completion Date

An informal review will take place during the course of the evaluation period. This review will be based on the evaluation categories and factors as set forth above and will provide the Contractor with input from the Navy to allow the Contractor to make adjustments in its performance as necessary. This review is not subject to the award fee provisions of this clause and will not reflect an award fee evaluation score, nor will an award fee be established for this review period.

(2) Award Fee Pool

For completion-type Items 0001, 0002, 0101 and 0102, and, if exercised, 0005, 0105, 0201, 0202, 0205, 0301, 0302, 0305, 0401, 0402, 0405, 0501, 0502, 0505, 0601, 0602, 0605, 0701, 0702, 0705, 0801, 0802, 0805, 0901, 0902 and 0905) and for completion-type Orders placed under Item 1000, if any: The Award Fee Pool for each Item is as stated in Section B of the contract, for all awarded/exercised Items.

For Level-of-Effort-type Items 0003 and 0103, and, if exercised, 0004, 0006, 0007, 0104, 0106, 0107, 0203, 0204, 0206, 0207, 0303, 0304, 0306, 0307, 0403, 0404, 0406, 0407, 0503, 0504, 0506, 0507, 0603, 0604, 0606, 0607, 0703, 0704, 0706, 0707, 0803, 0804, 0806, 0807, 0903, 0904, 0906 and 0907) and for Level-of-Effort type orders placed under Item 1000, if any: The Award Fee Pool for each evaluation period for each Item shall be calculated as follows:

Award Fee Pool = (Percent of Section B Item Hours Delivered during evaluation period) X (Total Section B Item Award Fee)

There shall be no rollover of unearned award fee.

(i) Performance Ratings

(1) In evaluating Contractor performance, the following adjective and numerical ratings will be used:

The Award Fee earned by the Contractor for the evaluation period shall be calculated as follows:

AWARD FEE GRADE

Award Fee Rating

Weighted Grade

THE SUM IS THE AWARD FEE GRADE (%)

(k) Payment of Award Fee The Contractor shall be paid award fee, if any, upon submittal of a proper invoice or voucher to the cognizant Payment Office, together with a copy of the unilateral modification to the contract authorizing payment of award fee for the applicable Evaluation Period. The Contractor's invoice shall show the amount of award fee payable to each sub‑line item, which shall be directly proportionate to the amount or allowable Estimated Cost (exclusive of base fee and FCCOM) incurred by the Contractor during the Evaluation Period. The Contractor's invoice must cite the appropriate accounting data in order for payment to be affected. There will be no provisional, interim or advance billing of award fee prior to a final determination of the FDO and execution by the contracting officer of a contract modification authorizing payment.

CLAUSES INCORPORATED BY FULL TEXT

B-3 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.

CLAUSES INCORPORATED BY FULL TEXT

B-4 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.

CLAUSES INCORPORATED BY FULL TEXT

B-5 PAYMENTS OF FEE (S) (COMPLETION) (NAVSEA) (MAY 1993) (Applicable to Items 0001, 0002, 0101 and 0102, and, if exercised, 0005, 0105, 0201, 0202, 0205, 0301, 0302, 0305, 0401, 0402, 0405, 0501, 0502, 0505, 0601, 0602, 0605, 0701, 0702, 0705, 0801, 0802, 0805, 0901, 0902, 0905, and 1000)

(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, "fixed fee" in cost-plus-fixed-fee type contracts for completion and phase type contracts.

(b) The Government shall make payments to the Contractor, subject to and in accordance with 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 NAVY AT CONTRACT AWARD) percent (TO BE COMPLETED BY THE NAVY AT CONTRACT AWARD) 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 is based on fee dollars divided by estimated cost dollars, including facilities capital cost of money). 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, in accordance with 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) in accordance with paragraph (c) above, or until the Procuring Contracting Officer has advised the paying office in writing that no fee adjustment is required.

B-6 PAYMENTS OF FEE(S) (LEVEL OF EFFORT) (NAVSEA) (MAY 1993) (Applicable to Items 0003 and 0103, and if Options are exercised 0004, 0006, 0007, 0104, 0106, 0107, 0203, 0204. 0206, 0207, 0303, 0304, 0306, 0307, 0403, 0404, 0406, 0407, 0503, 0504, 0506, 0507, 0603, 0604, 0606, 0607, 0703, 0704, 0706, 0707, 0803, 0804, 0806, 0807, 0903, 0904, 0906, 0907)

(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 for level of effort type contracts.

(b) The Government shall make payments to the Contractor, subject to and in accordance with 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 NAVY AT CONTRACT AWARD) percent (TO BE COMPLETED BY THE NAVY AT CONTRACT AWARD) 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 is based on fee dollars divided by estimated cost dollars, including facilities capital cost of money) Total fee(s) paid to the Contractor shall not exceed the fee amount(s) set forth in this contract.

(c) The fee(s) specified in SECTION B, and payment thereof, is subject to adjustment pursuant to paragraph (g) of the special contract requirement entitled "LEVEL OF EFFORT." If the fee(s) is reduced and the reduced fee(s) 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 final adjusted fee exceeds all fee 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) in accordance with the "LEVEL OF EFFORT" special contract requirement, or until the Procuring Contracting Officer has advised the paying office in writing that no fee adjustment is required.

CLAUSES INCORPORATED BY FULL TEXT

B-7 PROVISIONING TECHNICAL DOCUMENTATION – WITHHOLDING OF PAYMENT (NAVSEA) (SEP 1990)

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.

CLAUSES INCORPORATED BY FULL TEXT

B-8 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…