N0002415R4300_Section_B_through_K_Draft_Post_121614.doc

Section B - Supplies or Services and Prices

CLIN Number 0001

USS MONTPELIER (SSN 765) Planning

Plan for the accomplishment of maintenance, repair, alterations, testing, and routine work on USS MONTPELIER (SSN 765) during its scheduled FY16 Interim Dry Docking (IDD) in accordance with the Statement of Work (SOW) described in Section C. Cost-Plus-Fixed-Fee Completion. See Note A.

FOB: Origin

PURCHASE REQUEST NUMBER: N0002415NR92204

CPFF

ESTIMATED COST

FIXED FEE

TOTAL EST COST + FEE

CLIN Number 0002

Data

Not Separately Price (NSP). Submit Data for Item 0001 (and, if options are exercised, Items 0003, 0004, 0005, and 0006). Price to be included in price of Item 0001 (and, if options are exercised Items 0003, 0004, 0005, and 0006)

FOB: Origin

NET AMT

CLIN Number 0003

USS MONTPELIER (SSN 765) IDD Execution

FFP

NET AMT

CLIN Number 0004

Accomplish the execution of maintenance, repair, alterations, testing and routine work that includes growth work to fully execute the submarine maintenance standards (SMSs) on the USS MONTPELIER (SSN 765) during its scheduled FY16 IDD in accordance with the Statement of Work in Section C. The total effort authorized is 68,000 man-days (MDs). Cost-Plus-Fixed-Fee Level-of-Effort. See Note D.

FOB: Origin

CLIN Number 0005

Provide services in support of the Ship Alterations being accomplished by the Alteration Installation Teams (AITs)/Customer Contract Teams (CCTs). The service requirements will be specified by an AIT/CCT provided service request, Lead Maintenance Activity (LMA) statement of work or a division of responsibilities document for each alteration or group of alterations. AIT/CCT Support Requirements Checklists will be provided to define the AIT/CCT support service requirements. AIT/CCT support service requirements in excess of 4,250 MDs will be authorized as separate contractual action. Cost-Plus-Fixed-Fee Level-of-Effort.

FOB: Origin

CLIN Number 0006

Accomplish new work, additional work items resulting from either contractor or government proposed changes to the USS MONTPELIER (SSN 765) work package in accordance with the SOW described in Section C. 10,000 MDs of additional work identified as new work may be authorized within the period of performance. Requirements in excess will be subject to separate contractual action. New work will be defined, negotiated and funded as it is identified and funded with current year funds, as required. Cost-Plus-Fixed-Fee Level-of-Effort. See Note E.

FOB: Origin

CLIN Number 0007

USS COLUMBUS (SSN 765) EOH Planning

Plan for the accomplishment of maintenance, repair, alterations, testing and routine work on USS COLUMBUS (SSN 762) during its scheduled FY17 Engineered Overhaul (EOH) in accordance with the SOW described in Section C. Cost-Plus-Fixed-Fee Completion. See Note F.

FOB: Origin

CLIN Number 0008

Data

NET AMT

CLIN Number 0009

USS COLUMBUS (SSN 762) EOH Execution

NET AMT

CLIN Number 0010

Accomplish the execution of maintenance, repair, alterations, testing and routine work that includes growth work on the USS COLUMBUS (SSN 762) during its scheduled FY17 EOH in accordance with the Statement of Work (SOW) in Section C. Cost-Plus-Fixed-Fee Level-of-Effort. See Note I. The total effort authorized is 92,700 man-days (MDs).

FOB: Origin

CLIN Number 0011

Provide services in support of the Ship Alterations being accomplished by the Alteration Installation Teams (AITs)/Customer Contracted Teams (CCTs). The service requirements will be specified by an AIT provided service request, Lead Maintenance Activity, (LMA) statement of work or a division of responsibilities document for each alteration or group of alterations. AIT/CCT Support Requirements Checklists will be provided to define the AIT support service requirements. AIT/CCT support service requirements in excess of 4,250 MDs will be authorized as separate contractual action. Cost-Plus-Fixed-Fee Level-of-Effort.

FOB: Origin

CLIN Number 0012

Accomplish new work, additional work items resulting from either contractor or government proposed changes to the USS COLUMBUS (SSN 762) work package in accordance with the SOW described in Section C. 16,000 MDs of additional work identified as new work may be authorized within the period of performance. Requirements in excess will be subject to separate contractual action. New work will be defined, negotiated and funded as it is identified and funded with current year funds, as required. Cost-Plus-Fixed-Fee Level of Effort. See Note J.

FOB: Origin

LOT 1 PRICING SHEET USS MONTPELIER

Total LOT 1

LOT 2 PRICING SHEET USS COLUMBUS

Total LOT 2

CLAUSES INCORPORATED BY FULL TEXT

HQ B-2-0023 CONTRACT SUMMARY FOR PAYMENT OFFICE (COST/FIXED PRICE) (FEB 1997)

This contract includes the following mixture of cost reimbursement and fixed price line items:

LOT 1 USS MONTPELIER (SSN 765)

Item

Type

CPFF/Completion

NSP

CPFF-LOE

Lot 1 – USS MONTPELIER (SSN 765) Interim Dry Docking (IDD)

SCHEDULE B – NOTES

NOTE A - Cost Plus Fixed Fee (CPFF) amounts, as applicable, for Item 0001 for USS MONTPELIER (SSN 765). Man days and material costs for any additional planning effort(s) as authorized by the ACO may result in an increase in the CPFF for the Item, pursuant to FAR Clause 52.243-2 entitled “CHANGES - COST REIMBURSEMENT”.

NOTE B – This contract contains options to which the option clause in Section I applies and which are supplied only if, and to the extent, said options are exercised. The Government may, at any time on or before the date specified in the section I clause FAR 52.217-7 entitled “OPTION FOR INCREASED QUANTITY” require the contractor to accomplish an option item for delivery at the time, place, and price set forth herein. This option shall be exercised, if at all, by written or telegraphic notices signed by the Contracting Officer and sent within the option period specified.

NOTE C – Firm Fixed Price (FFP) amounts, as applicable, for Item 0003 for USS MONTPELIER (SSN 765) shall be calculated on the basis of the fully burdened MD rate (including profit). Man-Days and material costs for any additional execution effort may result in an increase in the contract price, pursuant to FAR Clause 52.243-1 entitled “CHANGES –FIXED PRICE”. The contractor shall evaluate the impact of additional execution work to the Integrated Master Schedule by critical path analysis, and notify the government of any potential delay to schedule.

NOTE D - SUPPLEMENTAL AND EMERGENT WORK. All work identified after contract award is either “supplemental” or “emergent” work. Supplemental work (or “New Work”) is defined as additional work items resulting from either contractor or government proposed changes to the Availability Work Package (AWP). Emergent work (or “Growth Work”) is defined as additional work items resulting from “open and inspect” requirements or testing. It is understood that all emergent work and material (i.e. including growth from execution of emergent repair actions to successfully restore each system and component to full readiness) related to CLIN 0004, as defined in Section C, is authorized as basic work, and is to be performed by the contractor under the provisions of the Cost Plus Fixed Fee, Level-of-Effort (LOE) ceiling amount of 68,000 man-days (MDs) for CLIN 0004. The contractor is to notify the government prior to expending 75% of the ceiling amount, and provide a detailed request for any increase in the ceiling amount. All supplemental and emergent work over and above that identified in Notes A and C will be processed in accordance with the FAR Clause 52.243-2 entitled “CHANGES – COST REIMBURSEMENT;” however, labor cost for such supplemental and emergent work shall be calculated on the basis of the fully burdened MD rate(s) as defined in Notes A and C, as applicable.

NOTE E – All work identified as supplemental work (or “New Work”) will be contracted under a cost-reimbursement level-of-effort option that the ACO will exercise as new work is specifically determined by local ship’s maintenance broker and approved by SUBLANT. Supplemental work is defined as additional work items resulting from either contractor or government proposed changes to the AWP. As such, supplemental work becomes known; it shall be incorporated into the IDD AWP and negotiated under Item 0006. Labor cost for such supplemental work shall be calculated on the basis of the fully burdened MD rate(s). The contractor shall evaluate the impact of new work to the Integrated Master Schedule by critical path analysis, and notify the government of any potential delay to schedule prior to authorization of the new work. A minimum of 10,000 MDs of new work effort will be authorized without any delay to the original period of performance. The contractor is to notify the government prior to expending 75% of the ceiling amount, and provide a detailed request for any increase in the ceiling amount.

Assumptions

1. All scheduled and emergent work regardless of maintenance activity performing the work must be integrated and tracked into the Master Integrated Schedule. Consideration will be given if a government activity does not meet schedule commitments (i.e. supply detailed schedules).

2. All maintenance activities (i.e. Ships Force, NSSF, NSY, AITs, etc.) will be available as required to support development of the Integrated Master Schedule. All maintenance activities will supply their work items and/or schedules to the contractor prior to A-90 Days.

3. Integrated Master Schedule and test plan will be available in Microsoft Project format for all CDRL requirements.

4. All AIT work being accomplished by the contractor, regardless of contract vehicle, will be managed by the shipyard within this contract vehicle and will not be the basis for government delay for poorly managed AIT efforts.

5. All Government activities work schedules fit into the established docking period and original availability schedule.

6. All man-days and material costs will be reported at the completion of the availability as required by CDRL A032.

7. All work identified in the AWP shall be bid.

8. Baseline values for special incentive fees will be adjusted for equitable or other adjustments permissible under the terms and conditions of the contract.

Special Incentives: LOT 1 - USS MONTPELIER (SSN 765) INTERIM DRY DOCKING (IDD) - The ability to maintain a submarine availability within cost and schedule is paramount to maintaining the navy’s operating fleet. In order to attain this goal, it is in the government’s best interest to incentivize increasingly more efficient contractor performance, and to reward contractor efforts that substantially contribute to obtaining superior performance, within costs and on schedule.

A. Special Incentive for Detailed Work Planning Documents (CLIN 0001) This special incentive requires the Contractor to complete initial issuance of detailed work planning documents (i.e. Task Group Instructions or Inspection Reports), associated with availability planning and execution, as defined in paragraphs a through f below. This incentive will be 1% of the profit available to be earned against the total cost established under CLIN 0001. The contractor is limited to a base fee of up to 9% under CLIN 0001.

Detailed work planning documents are written for each job in the AWP. There are multiple detailed work planning documents for each job including work and inspection phases (i.e. TGIs coded “S”, “U”, “I”, “A”, “H” and “R”). Testing documents (i.e. “T” phase TGIs) are typically not prepared prior to the start of the availability and are not to be included in this incentive.

The Contractor shall develop a Master List of all required detailed work planning documents for the USS MONTPELIER (SSN 765) FY16 IDD based upon the SUBMEPP Letter Ser. 1812KM/223 dtd 12 September 2014 Initial Issue AWP which provides the work requirements including service/support detailed work planning documents for Alteration Installation Teams. The Master List of all detailed work planning documents shall be provided to the Government 90 days after contract award for review and use as a baseline for the Contractor’s planners to develop individual detail work planning documents. Early completion of the detailed work planning documents is critical to avoiding potential impact to cost and/or schedule during conduct of the availability. The Master List shall be updated with any subsequent, contractually authorized SUBMEPP AWP updates (i.e. Final Planning Meeting Issue).

This special incentive shall be earned by the Contractor for fulfillment of the following:

a. The full 100%, of this special incentive shall be paid if 95% or more of the required detailed work planning documents (excluding test documents) are issued for work at start of the availability in accordance with the USS MONTPELIER (SSN 765) AWP. The special incentive date is the start of execution of the availability.

b. Three quarters of this special incentive (75%) shall be paid if more than 93% and less than 95% of required detailed work planning documents (excluding test documents) are issued for work at the start of execution of the availability.

c. Half of the special incentive (50%) shall be paid if 90% up to 93% of the required detailed work planning documents (excluding test documents) are issued for work at start of execution of the availability.

d. Issuance of less than 90% of the detailed work planning documents (excluding T-phase) for work at the start of execution of the availability shall result in no special incentive.

e. Within thirty (30) business days after the start of execution of the availability, the Contractor shall provide documentation to the Supervisor that includes: 1) a letter indicating the percentage of detailed work planning documents (excluding test documents) issued for USS MONTPELIER at the start of execution, 2) the master listing of detailed work planning documents (excluding test documents) required prior to USS MONTPELIER FY16 IDD execution – with Actual and Estimated detailed work planning documents issue dates, and 3) identification of any issues of concern related to detailed work planning documents development (excluding test documents) for the USS MONTPELIER FY16 IDD execution. This documentation shall include the number and percentage of required detailed work planning documents (excluding test documents) issued for USS MONTPELIER at the start of execution, the number and percentage of detailed work planning documents (excluding test documents) still in development at the start of the USS MONTPELIER FY16 IDD execution, and the Contractor’s self-assessment of performance under this special incentive.

f. It should be noted that any changes beyond the above noted AWP that affect the detailed work planning documents in process (excluding test documents), will be excluded from the special incentive determination.

B. Opening, Inspecting and Reporting Requirements/Special Incentive (CLIN 0003) This incentive requires the Contractor to perform all open, inspect and report requirements early enough in the availability to identify unknowns or unexpected problems which could potentially impact cost and/or schedule. This incentive can be earned by the Contractor for fulfillment of the following:

a. The full amount of this incentive shall be paid for completion of all open, inspect and reporting requirements for items listed on the USS MONTPELIER (SSN 765) IDD OPEN AND INSPECT PLAN , if accomplished on or before the date identified as the incentive fee date. The Open and Inspect Plan (CDRL 019) shall be proposed by the contractor and submitted to the Supervisor for approval by the government by A-1 Month, and include specific document numbers that fully encompass all open and inspect activities reflected in the AWP and proposed completion dates that reflect accomplishment of each document. Each item (defined as one of the line items in the Open and Inspect Plan subject to the incentive clause) which does not meet the incentive fee date will result in a downward adjustment from the incentive amount, as determined by the Incentive Determination Procedure (D) noted below.

b. If either of the two scenarios below is true, none of the incentive fee shall be deemed to have been earned by the Contractor:

(1) On _____ (day to reflect the midpoint of the docking period) (adjusted, if necessary, due to IDD start date change) any outstanding open, inspect and reportable items remain.

(2) If 10% of the total line items or more items are not accomplished in accordance with the Open and Inspect Plan incentive fee date schedules.

c. Within (5) business days of completing an open and inspect item, a report, procedures as agreed upon between the Supervisor and contractor, should be generated and submitted to the Supervisor. This report should provide full disclosure of the results of the inspection. Each report should clearly state the title of the inspection (as identified in the Open and Inspect Plan), the purpose of the inspection, a clear description of the condition found, all deficiencies for the specific item including any conjunctive maintenance required, a recommended corrective action for all noted deficiencies, a list of any contingency/additional material required, any impact that the condition may pose to schedule, and an estimated cost for correction of the problem found. The contractor shall provide a weekly status report of progress completing Open and Inspects actions to the Open and Inspect Plan.

The contractor shall propose up to an 11% base profit for CLIN 0003. This incentive will be an additional 1% of the profit available to be earned against the total cost established under CLIN 0003.

C. Milestone Schedule Incentive (CLIN 0003) Submarine maintenance and modernization is required at prescribed intervals within the life cycle of a submarine to sustain its safety and tactical integrity for extended periods of deployment. Submarine maintenance and modernization is directly related to ensuring the safety of the crew. The goal of this availability is to complete the work required within the AWP and return the ship back to the fleet so that the submarine can perform assigned missions and continue to be an operating asset to the Navy.

The nature of submarine repair realizes a certain amount of normal and usual repair work within the basic contract. In addition, growth and new work will come from open and inspect requirements. This should be assumed in planning the execution of the availability. Since the contractor is an expert in the accomplishment of submarine maintenance, they should be knowledgeable in the expectations of growth work. The contractor should develop a schedule to manage accomplishment of all repair work, including normal and usual repairs within the period of performance set forth for execution of this availability. This is required to ensure the government will have all repairs and modernization completed as quickly and as accurately as possible.

This incentive requires the contractor to ensure the availability is progressing, and adhering to the approved contractor milestone schedule, and to ensure that the availability does not exceed the specified period of performance. The contractor’s performance will be evaluated by the reviewing official at two separate milestones: (1) Completion of Undocking, and (2) Start of Fast Cruise.

CNO availability dates - 15 September 2016 through 15 December 2017.

The contractor shall propose up to an 11% base profit for CLIN 0003. This incentive will be an additional 3% (1.5% for completion of undocking and 1.5% for start of Fast Cruise) of the profit available to be earned against the total cost established under CLIN 0003.

D. Incentive for Prompt Proposals for Growth & New Work (CLINs 0004 and 0006) As required by DFARS 217.7404-6, the profit/fee for any undefinitized action negotiated after a substantial portion of the required performance has been completed shall reflect the reduced cost risk to the contractor for costs incurred during contract performance before negotiation of the final price and the contractor's reduced cost risk for costs incurred during performance of the remainder of the contract. The timely negotiation of undefinitized actions requires timely receipt of adequate proposals. Consequently, the profit/fee allowed for undefinitized actions for which adequate proposals are not received within 30 days of the authorization of the undefinitized action shall be reduced by 1%.

Incentive Determination Procedures

No later than 30 days after completion of the availability, the contractor will provide its applicable SUPSHIP with a written self-assessment of its performance under each specific area of emphasis within these performance incentives. This report will be of sufficient detail to allow the government’s review of each area. It will identify all items in the basic AWP, as well as contract change orders that are applicable to these performance incentives. SUPSHIP will provide its recommendation and endorsement of the contractor’s self-assessment and submit it to the reviewing officials.

Within ten business days of receipt of the contractor’s self-assessment, the reviewing officials (PMS 392, SUBLANT and NAVSEA 08) shall make a determination of whether the contactor has earned any or all of the performance incentives and shall provide the Procuring Contracting Officer (PCO) notification as to the contractor’s performance. After receipt of the reviewing official’s notification, a unilateral modification will be issued providing the earned Special Incentives.

Finality of Incentive Official’s Determination

The parties agree that determinations of the reviewing officials and the PCO, with respect to the amount of special incentives to be paid to the contractor, is a unilateral decision made solely at the discretion of the government.

Payment of Incentive The contractor shall be paid the incentive amounts earned upon submittal of the proper invoice to the cognizant payment office. The contractor’s invoice shall show the amount of special performance incentive payable by the contract line item. The invoice must cite the appropriate accounting data in order for payment to be effected.

CLAUSES INCORPORATED BY FULL TEXT

HQ B-2-0023 CONTRACT SUMMARY FOR PAYMENT OFFICE (COST/FIXED PRICE) (FEB 1997)

This contract includes the following mixture of cost reimbursement and fixed price line items:

LOT 2 USS COLUMBUS (SSN 762)

Item

Type

CPFF/Completion

NSP

Lot 2 – USS COLUMBUS (SSN 762) Engineered Overhaul (EOH)

SCHEDULE B – NOTES

NOTE F - Cost Plus Fixed Fee (CPFF) amounts, as applicable, for Item 0007 for USS COLUMBUS (SSN 762). Man days and material costs for any additional planning effort(s) as authorized by the ACO may result in an increase in the CPFF for the Item, pursuant to FAR Clause 52.243-2 entitled “CHANGES - COST REIMBURSEMENT”.

NOTE G - This contract contains options to which the option clause in Section I applies and which are supplied only if, and to the extent, said options are exercised. The Government may, at any time on or before the date specified in the section I clause FAR 52.217-7 entitled “OPTION FOR INCREASED QUANTITY” require the contractor to accomplish an option item for delivery at the time, place, and price set forth herein. This option shall be exercised, if at all, by written or telegraphic notices signed by the Contracting Officer and sent within the option period specified.

NOTE H – Firm Fixed Price (FFP) amounts, as applicable, for Item 0009 for USS COLUMBUS (SSN 762) shall be calculated on the basis of the fully burdened MD rate (including profit). Man-day and material costs for any additional execution effort may result in an increase in the contract price, pursuant to FAR Clause 52.243-1 entitled “CHANGES –FIXED PRICE”. The contractor shall evaluate the impact of additional execution work to the Integrated Master Schedule by critical path analysis, and notify the government of any potential delay to schedule.

NOTE I - SUPPLEMENTAL AND EMERGENT WORK. All work identified after contract award is either “supplemental” or “emergent” work. Supplemental work (or “New Work”) is defined as additional work items resulting from either contractor or government proposed changes to the Availability Work Package (AWP). Emergent work (or “Growth Work”) is defined as additional work items resulting from “open and inspect” requirements or testing. It is understood that all emergent work and material (i.e. including growth from execution of emergent repair actions to successfully restore each system and component to full readiness) related to CLIN 0010, as defined in Section C, is authorized as basic work, and is to be performed by the contractor under the provisions of the Cost Plus Fixed Fee, Level-of-Effort (LOE) ceiling amount of 92,700 man-days (MDs) for CLIN 0010. The contractor is to notify the government prior to expending 75% of the ceiling amount, and provide a detailed request for any increase in the ceiling amount. All supplemental and emergent work over and above that identified in Notes F and H will be processed in accordance with the FAR Clause 52.243-2 entitled “CHANGES – COST REIMBURSEMENT;” however, labor cost for such supplemental and emergent work shall be calculated on the basis of the fully burdened MD rate(s) as defined in Notes F and H, as applicable. .

NOTE J – All work identified as supplemental work (or “New Work”) will be contracted under a cost-reimbursement level-of-effort option that the ACO will exercise as new work is specifically determined by local ship’s maintenance broker and approved by SUBLANT. Supplemental work is defined as additional work items resulting from either contractor or government proposed changes to the AWP. As such, supplemental work becomes known; it shall be incorporated into the EOH AWP and negotiated under Item 0012. Labor cost for such supplemental work shall be calculated on the basis of the fully burdened MD rate(s). The contractor shall evaluate the impact of new work to the Integrated Master Schedule by critical path analysis, and notify the government of any potential delay to schedule prior to authorization of the new work. A minimum of 16,000 MDs of new work effort can be authorized without any delay to the original period of performance. The contractor is to notify the government prior to expending 75% of the ceiling amount, and provide a detailed request for any increase in the ceiling amount.

Assumptions

1. All scheduled and emergent work regardless of maintenance activity performing the work must be integrated and tracked into the Master Integrated Schedule. Consideration will be given if a government activity does not meet schedule commitments (i.e. supply detailed schedules).

2. All maintenance activities (i.e. Ships Force, NSSF, NSY, AITs, etc.) will be available as required to support development of the Integrated Master Schedule. All maintenance activities will supply their work items and/or schedules to the contractor prior to A-90 Days.

3. Integrated Master Schedule and test plan will be available in Microsoft Project format for all CDRL requirements.

4. All AIT work being accomplished by the contractor, regardless of contract vehicle, will be managed by the shipyard within this contract vehicle and will not be the basis for government delay for poorly managed AIT efforts.

5. All Government activities work schedules fit into the established docking period and original availability schedule.

6. All man-days and material costs will be reported at the completion of the availability as required by CDRL A032.

7. All work identified in the AWP shall be bid.

8. Baseline values for special incentive fees will be adjusted for equitable or other adjustments permissible under the terms and conditions of the contract.

Special Incentives: LOT 2 – USS COLUMBUS (SSN 762) ENGINEERED OVERHAUL (EOH) - The ability to maintain a submarine availability within cost and schedule is paramount to maintaining the navy’s operating fleet. In order to attain this goal, it is in the government’s best interest to incentivize increasingly more efficient contractor performance, and to reward contractor efforts that substantially contribute to obtaining superior performance, within costs and on schedule.

A. Special Incentive for Issuance of Detailed Work Planning Documents (CLIN 0007) This special incentive requires the Contractor to complete initial issuance of detailed work planning documents (i.e. Technical Task Instructions or Inspection Reports), associated with availability planning and execution, as defined in paragraphs a through f below. The special incentive to be earned for Issuance of Detailed Work Planning Documents shall be 1% of the fixed fee available to be earned against the total cost established under CLIN 0007. The contractor is limited to a base fee of up to 9% under CLIN 0007.

Detailed work planning documents are written for each job in the AWP. There are multiple detailed work planning documents for each job including work and inspection phases (i.e. TGIs coded “S”, “U”, “I”, “A”, “H” and “R”). Testing documents (i.e. “T” phase TGIs) are typically not prepared prior to the start of the availability and are not to be included in this incentive.

The Contractor shall develop a Master List of all required detailed work planning documents for the USS COLUMBUS (SSN 762) FY17 EOH upon SUBMEPP Letter Ser. Ser. 1812KM/281 dtd 25 November 2014 Initial Issue AWP work requirements including service/support detailed work planning documents for Alteration Installation Teams. The Master List of all detailed work planning documents shall be provided to the Government 90 days after contract award for review and use as a baseline for the Contractor’s planners to develop individual detail work planning documents. Early completion of the detailed work planning documents is critical to avoiding potential impact to cost and/or schedule during conduct of the availability. The Master List shall be updated with any subsequent, contractually authorized SUBMEPP AWP updates (i.e. Final Planning Meeting Issue).

This special incentive shall be earned by the Contractor for fulfillment of the following:

a. The full 100%, of this special incentive shall be paid if 95% or more of the required detailed work planning documents (excluding T-phase) are issued for work at start of the availability in accordance with the USS COLUMBUS (SSN 762) AWP. The special incentive date is the start of execution of the availability.

b. Three quarters of this special incentive (75%) shall be paid if more than 93% and less than 95% of required detailed works planning documents (excluding test documents) are issued for work at the start of execution of the availability.

c. Half of the special incentive (50%) shall be paid if 90% up to 93% of the required detailed work planning documents (excluding test documents) are issued for work at start of execution of the availability.

d. Issuance of less than 90% of the detailed work planning documents (excluding test documents) for work at the start of execution of the availability shall result in no special incentive.

e. Within thirty (30) business days after the start of execution of the availability, the Contractor shall provide documentation to the Supervisor that includes: 1) a letter indicating the percentage of detailed work planning documents (excluding test documents) issued for USS COLUMBUS at the start of execution, 2) the master listing of detailed work planning documents (excluding test documents) required prior to USS COLUMBUS FY17 EOH execution – with Actual and Estimated detailed work planning documents issue dates, and 3) identification of any issues of concern related to detailed work planning documents development (excluding test documents) for the USS COLUMBUS FY17 EOH execution. This documentation shall include the number and percentage of required detailed work planning documents (excluding test documents) issued for USS COLUMBUS at the start of execution, the number and percentage of detailed work planning documents (excluding test documents) still in development at the start of the USS COLUMBUS FY17 EOH execution, and the Contractor’s self-assessment of performance under this special incentive.

f. It should be noted that any changes beyond the above noted AWP that affect the detailed work planning documents in process (excluding test documents), will be excluded from the special incentive determination.

B. Opening, Inspecting and Reporting Requirements/Special Incentive (CLIN 0009) This incentive requires the Contractor to perform all open, inspect and report requirements early enough in the availability to identify unknowns or unexpected problems which could potentially impact cost and/or schedule. This incentive can be earned by the Contractor for fulfillment of the following:

a. The full amount of this incentive shall be paid for completion of all open, inspect and reporting requirements for items listed on the USS COLUMBUS (SSN 762) EOH OPEN AND INSPECT PLAN , if accomplished on or before the date identified as the incentive fee date. The Open and Inspect Plan (CDRL 019) shall be proposed by the contractor and submitted to the Supervisor for approval by the government prior to A-1 Month, and include specific document numbers and proposed completion dates that reflect accomplishment. Each item (defined as one of the line items in the Open and Inspect Plan subject to the incentive clause) which does not meet the incentive fee date will result in a downward adjustment from the incentive amount, as determined by the Incentive Determination Procedure (D) noted below.

b. If either of the two scenarios below is true, none of the incentive fee shall be deemed to have been earned by the Contractor:

(1) On ____ (day to reflect the mid-point of the docking period) (adjusted, if necessary due to EOH start date change) any outstanding open, inspect and reportable items remain.

(2) If 10% of the total line items or more items are not accomplished in accordance with the Open and Inspect Plan incentive fee date schedules.

c. Within (5) business days of completing an open and inspect item, a report, procedures as agreed upon between the Supervisor and contractor, should be generated and submitted to the Supervisor. This report should provide full disclosure of the results of the inspection. Each report should clearly state the title of the inspection (as identified on the Open and Inspect Plan), the purpose of the inspection, a clear description of the condition found, all deficiencies for the specific item including any conjunctive maintenance required, a recommended corrective action for all noted deficiencies, a list of any contingency/additional material required, any impact that the condition may pose to schedule, and an estimated cost for correction of the problem found. The contractor shall provide a weekly status report of progress completing Open and Inspects actions to the Open and Inspect Plan.

The incentive to be earned for open, inspecting, and reporting requirements shall be up to 1% of the total cost established under CLIN 0009. A base profit of up to 11% can be earned against the total cost established under CLIN 0009.

C. Milestone Schedule Incentive (CLIN 0009) Submarine maintenance and modernization is required at prescribed intervals within the life cycle of a submarine to sustain its safety and tactical integrity for extended periods of deployment. Submarine maintenance and modernization is directly related to ensuring the safety of the crew. The goal of this availability is to complete the work required within the AWP and return the ship back to the fleet so that the submarine can perform assigned missions and continue to be an operating asset to the Navy.

The nature of submarine repair realizes a certain amount of normal and usual repair work within the basic contract. In addition, growth and new work will come from open and inspect requirements. This should be assumed in planning the execution of the availability. Since the contractor is an expert in the accomplishment of submarine maintenance, they should be knowledgeable in the expectations of growth work. The contractor should develop a schedule to manage accomplishment of all repair work, including normal and usual repairs within the period of performance set forth for execution of this availability. This is required to ensure the government will have all repairs and modernization completed as quickly and as accurately as possible.

This incentive requires the contractor to ensure the availability is progressing, and adhering to the approved contractor milestone schedule, and to ensure that the availability does not exceed the specified period of performance. The contractor’s performance will be evaluated by the reviewing official at two separate milestones: (1) Completion of Undocking, and (2) Start of Fast Cruise.

CNO availability dates - 25 January 2017 through 12 September 2018.

The contractor shall propose up to an 11% base profit for CLIN 0009. This incentive will be an additional 3% (1.5% for completion of undocking and 1.5% for start of Fast Cruise) of the profit available to be earned against the total cost established under CLIN 0009.

D. Incentive for Prompt Proposals for Growth & New Work (CLINs 0010, and 0012) As required by DFARS 217.7404-6, the profit/fee for any undefinitized action negotiated after a substantial portion of the required performance has been completed shall reflect the reduced cost risk to the contractor for costs incurred during contract performance before negotiation of the final price and the contractor's reduced cost risk for costs incurred during performance of the remainder of the contract. The timely negotiation of undefinitized actions requires timely receipt of adequate proposals. Consequently, the profit/fee allowed for undefinitized actions for which adequate proposals are not received within 30 days of the authorization of the undefinitized action shall be reduced by 1%.

Incentive Determination Procedures

No later than 30 days after completion of the availability, the contractor will provide its applicable SUPSHIP with a written self-assessment of its performance under each specific area of emphasis within these performance incentives. This report will be of sufficient detail to allow the government’s review of each area. It will identify all items in the basic AWP, as well as contract change orders that are applicable to these performance incentives. SUPSHIP will provide its recommendation and endorsement of the contractor’s self-assessment and submit it to the reviewing officials.

Within ten business days of receipt of the contractor’s self-assessment, the reviewing officials (PMS 392, SUBLANT and NAVSEA 08) shall make a determination of whether the contactor has earned any or all of the performance incentives and shall provide the Procuring Contracting Officer (PCO) notification as to the contractor’s performance. After receipt of the reviewing official’s notification, a unilateral modification will be issued providing the earned Special Incentives.

Finality of Incentive Official’s Determination

The parties agree that determinations of the reviewing officials and the PCO, with respect to the amount of special incentives to be paid to the contractor, is a unilateral decision made solely at the discretion of the government.

Payment of Incentive The contractor shall be paid the incentive amounts earned upon submittal of the proper invoice to the cognizant payment office. The contractor’s invoice shall show the amount of special performance incentive payable by the contract line item. The invoice must cite the appropriate accounting data in order for payment to be effected.

CLAUSES INCORPORATED BY FULL TEXT

HQ B-2-0004 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

HQ B-2-0017 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.

Section C - Descriptions and Specifications

Lot 1 USS MONTPELIER (SSN 765) IDD Item 0001 – In accordance with the Specifications, the applicable Availability Work Package (AWP) document, and the requirements set forth herein, the contractor shall accomplish preparation and planning, which includes, but is not limited to the following: design documentation, reports, engineering, material procurement and fabrication, logistics, ship checks, meetings , preliminary shipyard work services, and any other work as identified in the Interim Dry Docking (IDD) AWP necessary to prepare and make ready for accomplishment of alterations, repairs, maintenance, testing and routine work for the submarine availability defined in the AWP forwarded by SUBMEPP letter as follows:

- USS MONTPELIER (SSN 765) Interim Dry Docking Availability Work Package (IDD 01) Initial Issue forwarded by SUBMEPP letter SSN 765/4700 Ser. 1812KM/223 dated 12 September 2014.

The contractor shall perform advance planning, including but not limited to the following:

a. The contractor shall prepare internal work documents based on review of the AWP and perform other work as specifically authorized by the Naval Sea Systems Command (NAVSEA) and the specifications set forth below and the following work description:

1. Non-Nuclear

(a) The government shall provide in accordance with NAVSEA SL720-AA-MAN-010, as modified by the AWP, for authorized alterations, applicable submarine class drawings and other data availability from, or being prepared by the Planning Yard or other design sources that may be assigned. If, during execution of this contract line item, the contractor determines or has reason to believe changes are necessary to drawings provided for accomplishment of non-nuclear SHIPALTs authorized for this availability, the contractor shall immediately notify the ACO and the Planning Yard (and confirm in writing) to ensure that resolution of proposed changes to the drawings will be obtained in time to accomplish the applicable IDD on schedule. Unilateral drawing changes by the contractor are prohibited.

(b) Design work under this procurement is limited to that required to meet contract specifications.

(c) SUBMEPP under the direction of NAVSEA has prepared the AWP which identifies all authorized non-nuclear work items. SUBMEPP will accomplish the following work for all authorized non-nuclear “K:” SHIPALTs:

(1) Furnish non-nuclear, non-standard long lead time material. As identified in the NAVSEA issued Alteration Authorization Letter, a listing of long lead time material being furnished by SUBMEPP, updated periodically, will be provided to the contractor. This requirement in no way relieves the contractor of the obligation to procure all other material to accomplish the applicable availability, except for the Government Furnished Material (GFM) identified in Section F (see GOVERNMENT PROPERTY - ADDITIONAL CONTRACT REQUIREMENTS).

(2) Establish liaison with the Planning Yard, TYCOM and other activities as necessary to assure timely resolution of long lead time material problems.

(3) Perform other functions specifically delineated in the AWP to prepare for the accomplishment of this availability.

(d) The Contractor shall accomplish the following work for all authorized non-nuclear “K” and “D&F” SHIPALTs and Alterations and Improvements (A&I) Items:

(1) Prepare ship checked class drawings, plans and other documentation and technical data as authorized by NAVSEA.

(2) Prepare work scope for NAVSEA authorized non-nuclear SHIPALTs.

(3) Identify to SUBMEPP non-nuclear long lead time material.

(e) In accordance with Section F - DELIVERIES OR PERFORMANCE, the IDD will be performed at the contractor’s facility, in a dry dock…