DRAFT_N00024-15-R-6401.pdf

N00024-15-R-6401

Section B - Supplies or Services and Prices

ITEM NO SUPPLIES/SERVICES QUANTITY UNIT UNIT PRICE AMOUNT

CLIN

Number

8 Each

Mk48 MOD 7 AB/TC Section POM/First Artic

FPI

Base Year - MK48 MOD 7 AB/TC Section Proof of Manufacture (POM) Units/First Article (Note A) FOB: Origin

TARGET COST

TARGET PROFIT

TOTAL TARGET PRICE

CEILING PRICE

SHARE RATIO ABOVE TARGET

SHARE RATIO BELOW TARGET

MK48 MOD 7 AB/TC Section

FFP

Each

Base Year - MK48 MOD 7 AB/TC Section (Note F)

NET AMT

STEPLADDER PRICING

STEPLADDER NAME ITEM NO FROM QUANTITY TO QUANTITY UNIT PRICE

Base Year - MK48 MOD 7 AB/TC Section

0002 1.00 20.00

Auto Electrical Power Source (AEPS) Test

Lot

Base Year - Auto Electrical Power Source (AEPS) Test Set (Note F)

Base Year - Auto Electrical Power Source (AEPS) Test Set

0003 1.00 6.00

OPTION Other Direct Costs (ODC)

COST

Base Year - Other Direct Costs (ODC)

ESTIMATED COST

MK48 MOD 7 Data

1 Lot

MK48 MOD 7 Data - Not Separately Priced (NSP)

60,000 Hours

OPTION Engineering Services and Support Base Year - Engineering Services and Support (Notes B and E)

CPFF

FIXED FEE

TOTAL EST COST + FEE

8,000 Hours

OPTION Hardware Repair and Maintenance Base Year - Hardware Repair and Maintenance (Notes C and E)

Spare Components

OPTION Base Year - Spare Components

Production Support Material (PSM)

OPTION Base Year - Production Support Material (PSM)

Small Business Subcontracting Incentive

Small Business Subcontracting Incentive (Note D)

Provisioned Items Orders (PIO)

Provisioned Items Orders (PIO) for Factory Test Equipment Component Spares (Note G)

Reserved

OPTION Option Year 1 - MK48 MOD 7 AB/TC Section (Note F)

Option Year 1 - MK48 MOD 7

0102 1.00 50.00

COST

Option Year 1 - Other Direct Costs (ODC)

Option Year 1 - Engineering Services and Support (Notes B and E)

Option Year 1 - Hardware Repair and Maintenance (Notes C and E)

OPTION Option Year 1 - Spare Components

OPTION Option Year 1 - Production Support Material (PSM)

OPTION Option Year 2 - MK48 MOD 7 AB/TC Section (Note F)

Option Year 2 - MK48 MOD 7

0202 1.00 50.00

COST

Option Year 2 - Other Direct Costs (ODC)

Option Year 2 - Engineering Services and Support (Notes B and E)

Option Year 2 - Hardware Repair and Maintenance (Notes C and E)

OPTION Option Year 2 - Spare Components

OPTION Option Year 2 - Production Support Material (PSM)

OPTION Option Year 3 - MK48 MOD 7 AB/TC Section (Note F)

Option Year 3 - MK48 MOD 7

0302 1.00 100.00

Auto Electrical Power Source (AEPS) Test

OPTION Option Year 3 - Auto Electrical Power Source (AEPS) Test Set (Note F)

Option Year 3 - Auto Electrical Power Source (AEPS) Test Set

0303 1.00 6.00

COST

Option Year 3 - Other Direct Costs (ODC)

Option Year 3 - Engineering Services and Support (Notes B and E)

Option Year 3 - Hardware Repair and Maintenance (Notes C and E)

OPTION Option Year 3 - Spare Components

OPTION Option Year 3 - Production Support Material (PSM)

OPTION Option Year 4 - MK48 MOD 7 AB/TC Section (Note F)

Option Year 4 - MK48 MOD 7

0402 1.00 100.00

COST

Option Year 4 - Other Direct Costs (ODC)

Option Year 4 - Engineering Services and Support (Notes B and E)

Option Year 4 - Hardware Repair and Maintenance (Notes C and E)

OPTION Option Year 4 - Spare Components

OPTION Option Year 4 - Production Support Material (PSM)

NOTES

NOTE A

The Contractor shall propose a Fixed Price Incentive (FPI) structure for these CLIN(s).

The Contractor shall propose within the following Government/Contractor shareline boundaries:

CLIN UNDERRUN OVERRUN

0001 50/50 50/50

Ceiling Price – 125% of Target Cost.

NOTE B

The Government may issue Technical Instructions in accordance with NAVSEA 5252.242-9115 TECHNICAL INSTRUCTIONS (APR 1999) included in Section H of this contract. The Government estimate for Engineering Services is approximately 60,000 man-hours during the base year and all option years. These are estimated amounts of labor hours, and do not indicate that the Government will necessarily require this amount or any at all. These CLINs are Cost Plus Fixed Fee (CPFF). The Government anticipates funding efforts under this CLIN using WPN, OM&N, and RDT&E. Additional SLINs will be added as required. Any Other Direct Costs associated with the performance of Technical Instructions shall be reimbursed on CLINs 0004, 0104, 0204, 0304, and 0404. The fully burdened labor rates proposed in Table L-2 for CLINs 0006, 0106, 0206, 0306, and 0406 will be incorporated into the resultant Contract in Section B to be used on all work efforts performed under these CLINs.

NOTE C

The Government may issue Technical Instructions in accordance with NAVSEA 5252.242-9115 TECHNICAL INSTRUCTIONS (APR 1999) included in Section H of this contract. The Government Estimate is approximately 8,000 man-hours per year for Hardware Repair and Maintenance as described in Section C. This is an estimated amount of labor hours, and does not indicate that the Government will necessarily require this amount or any at all.

These CLINs are Cost Plus Fixed Fee (CPFF). Any Other Direct Costs associated with the performance of Technical Instructions shall be reimbursed on CLINs 0004, 0104, 0204, 0304, and 0404. The fully burdened labor rates proposed in Table L-2 for CLINs 0007, 0107, 0207, 0307, and 0407 will be incorporated into the resultant Contract in Section B to be used on all work efforts performed under these CLINs.

NOTE D

Small Business Subcontracting Incentive: CLIN 0010

(a) Objective:

PEO Submarine is committed to increasing small business participation in submarine system and subsystem development, production and support efforts consistent with cost/benefit considerations and attainment of acquisition objectives. Therefore, the Contractor may earn a Small Business Subcontracting Incentive Fee (SBSIF) under this contract for exceeding the Subcontracting Goals identified in the table below. The specifics for evaluation of the SBSIF are set forth in paragraphs that follow:

(b) Subcontracting Goals:

The following table identifies the percentages against which the Contractor’s performance for the purposes of the SBSIF will be measured for the evaluation periods.

Goal*

Small Business (SB) 5.0%

HUBZone Small Business (HUBZone) 1.0%

Service-Disabled Veteran-Owned Small Business (SDVOSB) 3.0%

Small Disadvantaged Business (SDB) 5.0%

Women-Owned Small Business (WOSB) 5.0%

Historically Black Colleges & Universities and Minority Institutions

(HBCU)

3.0%

*Base for measurement is total subcontract dollars.

(c) Periods and SBSIF Available:

(d) The SBSIF is available for each column in the table below. The evaluation will be based on the value of small business subcontracting under each column up through delivery of the last system. The SBSIF pools for each category in each year will be calculated by applying the percentages specified in the table below to the total amount obligated on the specified Contract Line Item Number (CLIN).

(e) *Percentages Apply to Each Separate Column as defined below.

Subcontract Category Base

CLIN 0002

*Option 1

CLIN 0102

*Option 2

CLIN 0202

*Option 3

CLIN 0302

*Option 4

CLIN 0402

SB 0.05 % 0.05 % 0.05 % 0.05 % 0.05 %

HUBZone 0.01 % 0.01 % 0.01 % 0.01 % 0.01 %

SDVOSB 0.01 % 0.01 % 0.01 % 0.01 % 0.01 %

SDB 0.01 % 0.01 % 0.01 % 0.01 % 0.01 %

WOSB 0.01 % 0.01 % 0.01 % 0.01 % 0.01 %

HBCU 0.01 % 0.01 % 0.01 % 0.01 % 0.01 %

*If and to the extent exercised in accordance with FAR 52.217-7 entitled “OPTION FOR INCREASED

QUANTITY—SEPARATELY PRICED LINE ITEM.”

(i) The Contractor may earn the amount available under each category if its subcontracting percentage meets or exceeds the goal for each category established in paragraph (b) above.

(ii) The Contractor will not earn any of the amounts available if its subcontracting percentage is below the goal for the applicable category established in paragraph (b) above.

(iii) The incentive categories under this clause will be earned or not earned on an individual basis. Failure to earn the amount available under one or more of the categories does not preclude the Contractor from earning the amount available under the remaining category/categories.

(f) SF294 Subcontracting Reports:

The Contractor, unless a small business itself, shall submit semi-annual SF294s Subcontracting Report for Individual Contracts submitted by the Contractor even if under a Comprehensive Plan that does not normally require SF294s.

(g) Procedures:

1. Within one month of completion of effort and delivery of the last MK 48 MOD 7 AB/TC Section under each separate effort identified in paragraph (c), the Contractor shall submit to the Contracting Officer in writing a self-evaluation of its performance under this clause. This self-evaluation will include, at a minimum, the SF 294s for the period and any other data used by the Contractor in determining its self-evaluation.

2. Within fifteen (15) working days of receipt of the Contractor’s self-evaluation, the Contracting Officer’s Representative (COR) will review and evaluate the Contractor’s self-evaluation or revised self-evaluation to determine if all required data was provided and if any SBSIF was earned. If the Contractor’s input is inadequate the COR shall ask the Contractor to correct the inadequacies of their self-evaluation and to resubmit a revised self-evaluation.

3. Within thirty (30) working days of receipt of the Contractor’s self-evaluation, the COR will meet with the PCO to make a final determination of whether any such SBSIF has been earned. The PCO will issue a unilateral modification providing earned SBSIF. Determinations made under this paragraph are unilateral decisions made solely at the discretion of the Government.

4. No Small Business Subcontracting Incentive Fee will be earned unless the contractor is making timely deliveries and is in compliance with the specifications for the hardware being acquired. The PCO will make the determination of whether the Contractor has met this prerequisite to be considered for the SBSIF. In the event that the PCO determines that the Contractor’s performance is not satisfactory, the Contractor will not be eligible for the SBSIF.

(h) Finality of PCO’s Determination:

The parties agree that determinations of the PCO with respect to the amount of SBSIF to be paid to the Contractor are unilateral decisions made solely at the discretion of the Government. Notwithstanding anything else in this incentive or contract, a payment under this incentive is not incurred or earned until the effective date of a written contract modification.

(i) Payment of SBSIF:

The Contractor will be paid the SBSIF amount(s) earned upon submittal of proper invoices to the cognizant Payment Office. The Contractor’s invoice shall show the amount of SBSIF payable by contract line item. The Contractor’s invoice must cite the appropriate accounting data in order for payment to be effected.

(j) Single Point of Contact:

The Contractor shall establish a single point of contact to deal with the Government on its small business subcontracting activities relating to this contract. The Government encourages the Contractor to pursue activities that will support increasing the level of small business subcontracting participation under this contract including, but not limited to, internal education and training, participation in matchmaking conferences and other outreach efforts, and the use of SUB-Net to post subcontracting opportunities.

NOTE E

Level of effort Item in accordance with NAVSEA Provision 5252.216.9122 entitled “LEVEL OF EFFORT” ALT 1 to the Contract. The hours shown in the schedule are the maximum hours for each CLIN to be performed within the period established under Section F of the contract entitled “DELIVERIES OF PERFORMANCE” and include both prime and subcontracts hours.

NOTE F

These CLINs consist of stepladder quantities which may range from the stated minimum quantities through the stated maximum quantities for each respective CLIN. Maximum steps are provided for each respective CLIN and shall not be exceeded. Offerors shall provide stepladder pricing in the “Stepladder Pricing Table”. Stepladder pricing set forth in Note F supersedes pricing in all other locations in Section B.

STEPLADDER GUIDELINES

Stepladder guidelines for CLIN 0002:

Minimum Quantity: 1 Maximum Quantity: 20 Maximum Number of Steps: 4

Stepladder guidelines for CLINs 0102 and 0202:

Minimum Quantity: 1 Maximum Quantity: 50 Maximum Number of Steps: 6

Stepladder guidelines for CLINs 0302 and 0402:

Minimum Quantity: 1 Maximum Quantity: 100 Maximum Number of Steps: 8

Stepladder guidelines for CLINs 0003 and 0303:

Minimum Quantity: 1 Maximum Quantity: 6 Maximum Number of Steps: 3

STEPLADDER PRICING TABLE (TO BE FILLED IN BY OFFEROR)

STEPLADDER NAME ITEM

NO

Step Number

FROM

QUANTITY TO QUANTITY UNIT

PRICE

MK48 MOD 7 AB/TC

Section Base 0002 1

Step Number

FROM

QUANTITY TO QUANTITY UNIT

PRICE

Option Year 1 - MK48 MOD 7 AB/TC Section 0102 1

Step Number

FROM

QUANTITY TO QUANTITY UNIT

PRICE

Option Year 2 - MK48 MOD 7 AB/TC Section 0202 1

Step Number

FROM

QUANTITY TO QUANTITY UNIT

PRICE

Option Year 3 - MK48 MOD 7 AB/TC Section 0302 1

Step Number

FROM

QUANTITY TO QUANTITY UNIT

PRICE

Option Year 4 - MK48 MOD 7 AB/TC Section 0402 1

Step Number

FROM

QUANTITY TO QUANTITY UNIT

PRICE

Auto Electrical Power Source (AEPS) Test 0003 1

Step Number

FROM

QUANTITY TO QUANTITY UNIT

PRICE

Option Year 3 - Auto Electrical Power Source (AEPS) Test

0303 1

NOTE G

The Optional Provisioned Item Order (PIO) for Factory Test Equipment Component Spares CLIN 0011 will be implemented by separate contract modifications in accordance with Section C: PROVISIONED ITEMS ORDERS (NAVSEA) (APR 1999). Pricing will be set forth on each order. Offerors shall propose a profit percentage in the table below. The proposed profit percentage will be utilized on all orders issued under CLIN 0011.

Proposed Profit Percentage

CLIN 0011 – PIO %

CLAUSES INCORPORATED BY FULL TEXT

HQ B-2-0004 EXPEDITING CONTRACT CLOSEOUT (NAVSEA) (DEC 1995)

(APPLICABLE TO ALL CLINs)

(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.

HQ B-2-0007 LIMITATION OF COST/LIMITATION OF FUNDS (NAVSEA) (SEP 1990)

(APPLICABLE TO CLINs 0004, 0006, 0007, 0104, 0106, 0107, 0204, 0206, 0207, 0304, 0306, 0307, 0404, 0406, 0407)

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.

HQ B-2-0012 PAYMENT FOR ENGINEERING SERVICES AND SUPPORT (NAVSEA) (JAN 2008)

(APPLICABLE TO CLINs 0004, 0006, 0007, 0104, 0106, 0107, 0204, 0206, 0207, 0304, 0306, 0307, 0404, 0406, 0407)

(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).

HQ B-2-0015 PAYMENT OF FEES(S) (LEVEL OF EFFORT – ALTERNATE I) (NAVSEA) (MAY 2010) (APPLICABLE TO OPTION CLINs 0006, 0007, 0106, 0107, 0206, 0207, 0306, 0307, 0406, 0407)

(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 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, and shall be paid at the hourly rate(s) specified above per man-hour performed and invoiced. Total fee(s) paid to the Contractor shall not exceed the fee amount(s) set forth in this contract.

In no event shall the Government be required to pay the Contractor any amount in excess of the funds obligated under this contract.

HQ B-2-0017 REFUNDS (SPARES AND SUPPORT EQUIPMENT) (NAVSEA) (SEP 1990)

(APPLICABLE TO OPTION CLINs 0008, 0009, 0108, 0109, 0208, 0209, 0308, 0309, 0408, 0409)

(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.

HQ B-2-0020 TRAVEL COSTS - ALTERNATE I (NAVSEA) (DEC 2005)

(APPLICABLE TO CLINs 0004, 0104, 0204, 0304, 0404)

(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.

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

(APPLICABLE TO ALL CLINs)

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

CLIN Type (FPI, FFP, CPFF, COST ONLY, NSP, Reserved CLINs)

0001 FPI

0002, 0003, 0008, 0009, 0010, 0011

0102, 0108, 0109

0202, 0208, 0209

0302, 0303, 0308, 0309

0402, 0408, 0409

FFP

0006, 0007

0106, 0107

0206, 0207

0306, 0307

0406, 0407

0004, 0104, 0204, 0304, 0404 COST ONLY

0005 NSP

0101, 0103, 0105, 0110, 0111 0201, 0203, 0205, 0210, 0211 0301, 0305, 0310, 0311 0401, 0403, 0405, 0410, 0411

RESERVED

Section C - Descriptions and Specifications

PART 1 - CLIN DESCRIPTIONS

CLIN 0001 – MK48 MOD 7 Afterbody/Tailcone (AB/TC) Section Proof of Manufacture (POM) / First Article

The Contractor shall fabricate, procure, test, and deliver MK48 MOD 7 AB/TC Sections in accordance with the Preserved Condition Drawing 6105286 and Attachment 1, the Build-to-Print Technical Data Package (TDP). The Contractor shall perform Factory Acceptance Testing on the MK 48 MOD 7 AB/TC Sections to the requirements of Attachment 2 (First Article and Factory Acceptance Testing Requirements). The MK48 MOD 7 AB/TC Section POM units shall meet and conform to all requirements including lower level drawings, interface documentation, fabrication specifications, and performance specifications as detailed in the Build-to-Print TDP (Attachment 1).

All CLIN 0001 POM units delivered to the Government may be utilized during the Government’s First Article testing in accordance with Section C, Paragraph 3.3.10.1. The Government reserves the right to use less than the total quantity of POM units for First Article testing.

The CLIN 0001 effort shall also include all Non-Recurring Engineering (NRE) efforts required under this contract.

NRE efforts shall include, but not be limited to: the design of the CLIN 0003 Auto Electrical Power Source (AEPS) test equipment; the analysis and redlining of the Government’s Assembly procedures provided under Attachment 1 in accordance with Section C, Paragraph 3.3.11.1; and the design of any other contractor-owned test equipment/solutions required for Factory Acceptance Testing (FAT).

CLIN 0002, and (IF OPTIONS EXERCISED) CLINs 0102, 0202, 0302, and 0402 – MK 48 MOD 7 AB/TC Sections

The Contractor shall fabricate, procure, test, and deliver MK48 MOD 7 AB/TC Sections in accordance with the Preserved Condition Drawing 6105286 and Attachment 1, the Build-to-Print Technical Data Package (TDP). The Contractor shall perform Factory Acceptance Testing on the MK48 MOD 7 AB/TC Sections to the requirements of Attachment 2 (First Article and Factory Acceptance Testing Requirements). The MK48 MOD 7 AB/TC Sections shall meet and conform to all requirements including lower level drawings, interface documentation, fabrication specifications, and performance specifications as detailed in the Build-to-Print TDP (Attachment 1).

The Contractor may, per DFARS 225.7303-2, submit their negotiated offset agreement to the PCO at the time of Letter of Offer and Acceptance (LOA) approval prior to or after contract award. With concurrence from PMS404, the Contracting Officer will review and approve adjustments to CLIN/SLIN FMS pricing IAW with DFARS 225.7303-2 for which the offset agreement has been negotiated between the Country and the Contractor.

CLIN 0003 and (IF OPTION EXERCISED) CLIN 0303 – Auto Electrical Power Source (AEPS) Test Equipment

The Contractor shall design, engineer, fabricate and/or procure, assemble, test and deliver Auto Electrical Power Source (AEPS) Test Equipment that are capable of performing the Factory Acceptance Tests (FAT) defined in Attachment 3, Auto Electrical Power Source (AEPS) Test Requirements, for both the Alternator Assembly (P/N:

6935009) and EPS Regulator Assembly (P/N: 5894200). The AEPS Test Equipment shall also meet all requirements defined in Attachment 4 (Auto Electrical Power Source (AEPS) System Requirements Document

(SRD)).

(IF OPTIONS EXERCISED) CLINs 0004, 0104, 0204, 0304, and 0404 – Other Direct Cost

The Contractor shall invoice the costs of subsistence, transportation and overtime incurred, as authorized by a Technical Instruction (TI) in accordance with (IAW) Section H clause 5252.242-9115 TECHNICAL INSTRUCTIONS (APR 1999), for Engineering Services and Hardware Repair and Maintenance that are provided under Option CLINs 0006, 0106, 0206, 0306 and 0406 and 0007, 0107, 0207, 0307, and 0407 in accordance with HQ C-1-0008 Support for Engineering Services (NAVSEA) (JUN 1992).

CLIN 0005 – MK48 MOD 7 Data

The data to be furnished hereunder shall be prepared in accordance with HQ C-1-0001 “Data Requirements

(NAVSEA) (SEP 1992).”

CLINs 0006, 0106, 0206, 0306, and 0406 – Engineering Services and Support (IF OPTIONS EXERCISED)

The Contractor shall, subject to Technical Instructions issued in accordance with (IAW) Section H clause 5252.242- 9115 TECHNICAL INSTRUCTIONS (APR 1999), furnish qualified engineers to conduct studies, provide services, testing, prototyping for future torpedo variants, obsolescence risk mitigation for MK 48 Torpedo components, and/or analyses of design and/or production related issues for the MK 48 MOD 7 AB/TC Sections and/or test equipment.

The engineering services shall be performed within the limits, if any, as to place(s) and period(s) specified therefore, as authorized by Technical Instructions issued by the COR (see Section G).

The maximum liability of the Government for each engineering service item shall not exceed the amount set forth in the Schedule, or the amount obligated whichever is less. If, at any time, the Contractor has reason to believe that the amounts it expects to incur in the performance of each engineering services item in the next succeeding sixty (60) days, when added to all amounts previously incurred, will exceed seventy-five percent (75%) of the amount then set forth in the Schedule; or if, at any time, the Contractor has reason to believe that the man days and/or amount for the full performance of each engineering service item will be greater than or substantially less than that set forth in the Schedule, the Contractor shall notify the Contracting Officer in writing, giving its revised estimate of the man days and/or amount for the performance of said item. The Contractor shall not exceed the obligated amount for each engineering services item, unless and until such amount has been increased in writing by the Contracting Officer.

CLINs 0007, 0107, 0207, 0307, and 0407 – Hardware Repair and Maintenance (IF OPTIONS EXERCISED)

The Contractor shall provide cost-reimbursable hardware repair services for Government-Owned hardware delivered under this contract that are not covered under the manufacturer's or a third-party’s warranty. The Government will provide to the Contractor Government-Furnished Equipment (GFE) in need of rework or repair. The Contractor shall provide a cost estimate and schedule for rework or repair and retest to the Government within 10 working days of receipt of GFE needing rework or repair. The Government will assess that information and notify the Contractor in writing within 10 days as to whether or not the repair is authorized. The Contractor shall not proceed with the repair if it does not receive any written notification from the Government.

The Contractor shall provide cost-reimbursable hardware repair services for Contractor Owned hardware that has been damaged by the Government due to no fault of the Contractor. The Government will provide to the Contractor the damaged equipment in need of rework or repair. The Contractor shall provide a cost estimate and schedule for rework or repair and retest to the Government within 10 working days of receipt of equipment needing rework or repair. The Government will assess that information and notify the Contractor in as to whether or not the repair is authorized. The Contractor shall not proceed with the repair if it does not receive any written notification from the Government.

The Contractor shall, subject to Technical Instructions issued in accordance with Section H clause NAVSEA 5252.242-9115 TECHNICAL INSTRUCTIONS (APR 1999), repair the Government hardware under this contract as hereby specified. Prior to the Contractor performing any hardware repair services the Contracting Officer’s designated Contracting Officer’s Representative (COR) (See Section G) will authorize all repairs.

The maximum liability of the Government for each engineering services item shall not exceed the amount set forth in the Schedule, or the amount obligated whichever is less. If, at any time, the Contractor has reason to believe that the amounts it expects to incur in the performance of each engineering services item in the next succeeding sixty (60) days, when added to all amounts previously incurred, will exceed seventy-five percent (75%) of the amount then set forth in the Schedule; or if, at any time, the Contractor has reason to believe that the man days and/or amount for the full performance of each engineering services item will be greater than or substantially less than that set forth in the Schedule, the Contractor shall notify the Contracting Officer in writing, giving its revised estimate of the man days and/or amount for the performance of said item. The Contractor shall not exceed the obligated amount for each engineering services item, unless and until such amount has been increased in writing by the Contracting Officer.

CLINs 0008, 0108, 0208, 0308, and 0408 – Spare Components (IF OPTIONS EXERCISED)

The Contractor shall fabricate and/or procure, assemble, test, and deliver MK 48 MOD 7 AB/TC Sections and/or individual Section components as specified in Exhibit C (MK 48 MOD 7 AB/TC Section Spares List). Varying quantities of spares may be ordered dependent upon need and quantities ordered in CLIN 0002 and (If Options Exercised) CLINs 0102, 0202, 0302 and 0402 and based upon per-unit pricing in Exhibit C.

CLINs 0009, 0109, 0209, 0309, and 0409 – Production Support Material (IF OPTIONS EXERCISED)

The Contractor shall fabricate and/or procure, assemble, test, and deliver MK 48 MOD 7 AB/TC Section(s) and/or Section components as specified in Exhibit D (MK 48 MOD 7 AB/TC Section Production Support Material).

Varying quantities of production support material may be ordered dependent upon need and based upon per unit pricing in Exhibit D.

CLIN 0010 – Small Business Subcontracting Incentive

Refer to Small Business Subcontracting Incentive clause (Note D) in Section B.

(IF OPTION EXERCISED) CLIN 0011 – Provisioned Items Orders for Factory Test Equipment Component Spares

If the option is exercised, the Contractor shall fabricate and/or procure, assemble, test, and deliver hardware and any associated software and firmware in support of the Factory Test Equipment Component Spares in accordance with “HQ C-1-0003 Provisioned Items Orders (APR 1999)”. Varying quantities of spares may be ordered dependent upon need and results from the Factory Test Equipment Sparing Analysis (CDRL A028).

PART 2 - SPECIFIC REQUIREMENTS

2.1 ACCESS TO GOVERNMENT FACILITIES

The Contractor will have access to the Government-owned facilities located at Naval Undersea Warfare Center (NUWC) Division Newport, Rhode Island; NUWC Division Keyport, Washington; and NUWC Division Keyport facilities located at Naval Submarine Base Bangor, Washington as required in support of the life-cycle of this procurement including production, testing efforts, troubleshooting, failure analysis, meetings etc. on a not to interfere basis. Attachment 5 (Government Furnished Facilities) provides a list of available Government test facilities for use in the execution of this contract.

For utilization of Government facilities, the Contractor shall establish a Test Availability Plan (TAP) with the appropriate Government activity 90 days prior to planned use.

The Government will not be responsible for conflicts, delays, or disruptions to any work performed by the Contractor due to use of any or all of such property under this contract or any other contracts under which use of such property is authorized.

2.2 ACCESS TO CONTRACTOR'S FACILITIES

Without limiting the Government's rights or obligations set forth in this contract, the Contractor specifically agrees as follows:

(a) In addition to the cognizant Government Inspector(s) at the Contractor's plant(s), the Contractor shall permit representatives of Government Contract Laboratories and any Government activities as designated by PMS404 to have badged access to the Contractor's plant(s) in order to observe and examine the Contractor's performance of this contract on a non-interference basis.

(b) The Contractor shall grant representatives of Advisory and Assistance Services Contractors access to the Contractor's plant(s) with the cognizant Government Inspector for purposes of reviewing and otherwise examining all relevant systems and procedures. The Contractor is responsible for entering into any nondisclosure agreement(s) with the other companies to protect its information from unauthorized use or disclosure.

(c) The Contractor shall flow down this requirement to its subcontractors and shall incorporate into each subcontract a provision which provides for access to the subcontractor plant(s) to the same extent as provided in accordance with paragraphs (a) and (b) above.

(d) Nothing in (a) through (c) above shall be deemed to require the Contractor (or any subcontractor) to grant (or agree to grant) access to any area or thing requiring Security Clearance unless and until the person seeking such access has provided necessary evidence of an appropriate Security Clearance and demonstrated a "need-to-know".

2.3 ON-SITE GOVERNMENT REPRESENTATIVE

The Contractor shall permit and provide facilities for up to two permanent on-site representative(s) of the PMS404, and/or its delegated representative. The Contractor shall provide office space, desks, chairs, tables, file cabinets, interoffice mail service, internet service, intra-net access, internal and external telephone access with FAX, copier access and computer terminal usage. The designated Government representatives shall be given unimpeded access to all Contractor facilities and technical data and information sources involved in MK 48 MOD 7 AB/TC Section design, fabrication, production, and testing. The Contractor-provided space for the Government Representative shall be convenient to the Contractor’s program office space. The Government representatives shall be allowed to participate in Contractor Material Review Board (MRB) meetings.

Fulfillment of the requirements of this contract, including procurement of material, assembly and test of any product delivered under this contract is the sole responsibility of the Contractor and shall not be performed by the Government on-site representative(s).

2.4 DIMINISHING MANUFACTURING SOURCES AND MATERIAL SHORTAGES (DMSMS) /

OBSOLESCENCE MANAGEMENT

The Contractor shall be responsible for identification, resolution and implementation of all DMSMS/Obsolescence issues associated with production and delivery of hardware under this contract in accordance with Section C clause entitled “DMSMS / Obsolescence Management” and the Statement of Work.

2.5 CONTRACTOR USE OF COMMERCIAL COMPUTER SOFTWARE, INCLUDING OPEN SOURCE

SOFTWARE

a. Contractor Use of Commercial Computer Software, including Open Source Software. Open source software is often licensed under terms that require the user to make the user's modifications to the open source software or any software that the user ‘combines’ with the open source software freely available in source code form pursuant to distribution obligations in the license.

1. The Government accepts the terms of the licenses for the Commercial Computer Software listed in the Attachment 6, Use of Free and Open Source Software (FOSS) and/or Commercial Computer Software (CSS) List, of this Contract and any associated Commercial Computer Software documentation.

2. In cases where the Contractor proposes to use open source software while performing under a

Government contract, regardless of whether the open source software is delivered, the Contractor shall not: (i) create, or purport to create, any Government distribution obligations with respect to the Government computer software deliverables; or (ii) grant, or purport to grant, to any third party any rights to or immunities under Government intellectual property or Government data rights to the Government Computer Software deliverables.

3. In addition to paragraph a.2., prior to using any Commercial Computer Software that is not listed in Attachment 6, the Contractor shall additionally evaluate each license for Commercial Computer Software, including open source software, and confirm that each of the following requirements are satisfied:

(i) a license for a particular commercial computer software shall be compatible with all other licenses for other commercial computer software that are or will be linked to, integrated with, or associated with the particular commercial computer software, including when the particular commercial computer software and the other commercial computer software are used with the same computer program;

(ii) a license for commercial computer software shall not impose a Government distribution obligation on computer software linked to, or integrated with, or associated with the commercial computer software;

(iii) a license for commercial computer software shall not impose a future Government distribution obligation that is foreseeable by the Contractor;

(iv) a license for commercial computer software shall not be terminated by the Contractor’s use of the commercial computer software in performing under the contract; and

(v) the Contractor’s cost to comply with this requirement presents no additional cost to the Government.

If, as a result of the Contractor’s evaluation, the Contractor is able to affirmatively make all of the determinations in paragraphs a.2 through a.3 (5) above, then the Contractor may immediately begin using the Commercial Computer Software. Within thirty days, the Contractor shall notify the contracting officer in writing that the Contractor has evaluated the Commercial Computer Software use and the Commercial Computer Software license and made each determination required in paragraphs a.2 through a.3(5) above. This notification shall also include all information regarding the identification and proposed use(s) of the Commercial Computer Software in the format required by Attachment 6.

If the Contractor is unable to satisfy all of the requirements in paragraphs a.2 through a.3(5) above for a particular Commercial Computer Software license, then the Contractor may not use the Commercial Computer Software covered by the particular license without prior approval by the Contracting Officer. The Contractor shall request approval to use the otherwise prohibited subject Commercial Computer Software from the Contracting Officer by providing a written notification in the format provided in Attachment 6, addressing (i) the name and version number of the software; (ii) the name of the applicable license(s); (iii) a brief description of the technical use and implementing approach; (iv) a “yes/no” indication of whether the Contractor has made, or will make, any modifications to the source code; (v) the software website; and in addition (vi) an identification of the reason(s) that the Contractor was unable to make the determinations in paragraphs a.2 through a.3(5) above. The Contractor shall attach a copy of the subject Commercial Computer Software license to its request.

The Contracting Officer will incorporate Commercial Computer Software for which the necessary determinations are made by the Contractor, or which are otherwise approved by the Contracting Officer, into Attachment 6 by modification to the contract.

Open source software meets the definition of “commercial computer software” in accordance with DFARS 252.227- 7014 and DoD CIO memorandum dated October 16, 2009.

2.6 GOVERNMENT FURNISHED EQUIPMENT (GFE) MANAGEMENT

Government Furnished Equipment (GFE) (Attachment 7) shall be managed in accordance with the Contractor’s internal GFE Management Plan. The Contractor is responsible for maintaining GFE as required by the associated Operation and Maintenance Manuals. The Contractor shall not be required to track and control consumable materials (e.g., O-rings, bolts, etc.). All Contractor modifications that adversely affect form, fit, or function of GFE shall require written Government approval. The Contractor shall be responsible for the control and use of all Government Furnished Software (GFS).

2.7 WORK FOR PRIVATE PARTY AGREEMENTS

Performance of this contract by the Contractor does not preclude the Contractor from entering into future "Work For Private Party Agreements" (WFPPAs) with NUWC Keyport, NUWC Newport, or other Government facility. Any work conducted under individual NUWC WFPPAs shall not be issued as a Technical Instruction under any resultant contract. Contractors are allowed to contract with Government facilities and personnel in testing their capabilities through the use of WFPPAs conducted by individual Government installations. The Government shall not be responsible for conflicts, delays, or disruptions to any work performed by the Contractor under this contract due to use of WFPPAs.

PART 3 - SCOPE OF WORK

3.1 Background

The MK 48 Mod 7 Heavyweight Torpedo (HWT) is the U.S. Navy’s primary submarine launched anti-submarine (ASW) and anti-surface warfare (ASUW) weapon. The MK48 Mod 7 is a high performance, self-propelled underwater vehicle that contains complex electronic and mechanical subassembly systems for providing propulsion, steering, navigation, and target detection. The system technologies include acoustic sonar, guidance and control electronics, electrical power, hydraulic systems, mechanical pumps, and propulsion.

The MK 48 MOD 7 torpedo is 19 feet long, 21 inches in diameter and weighs about 3,700 pounds. The MK 48 MOD 7 consists of over 600 parts, including Functional Item Replacement (FIR) units (similar to modular replaceable “plug and play” units in other systems), torpedo shells, cables, fuel and lubricants, consumable piece parts, etc. A number of FIRs are currently in production while others have not been produced in over ten years.

The AB/TC section of the MK 48 MOD 7 Heavyweight Torpedo contains the steering control surfaces, electrical power generation and conditioning components, and the propulsion subsystem which is an external combustion piston engine operating on Otto Fuel II turning a pump jet propulsor.

The Government currently utilizes an Auto Electrical Power Source (AEPS) Test Set to perform testing of the Alternator and EPS Regulator FIRs. The Government’s AEPS was designed in the1980’s. The Government’s AEPS test set includes a variable speed drive stand with a 40 Horsepower (HP) motor that turns the Alternator shaft to produce electrical power. The alternator is tested by itself, but the regulator test is performed with a "test set alternator" to best simulate the torpedo system functionality. The Government’s AEPS test set suffers from obsolescence of many different components, including the HP5183T oscilloscope system, the relay switch boards within the I/O Drawer, the circuit boards in the Single Board Computer (SBC) drawers, the Hewlett-Packard (HP) computer system, which runs HP BASIC 6.4 and includes the computer, monitor, hard disk drive, printer, and 9-track tape drive.

3.2 Applicable Documents

To the extent referenced herein, the following documents form a part of this SOW and are hereby incorporated by reference. In the event of a conflict between the documents referenced herein and the contents of this SOW, the contents of this SOW shall take precedence. Other documents and specifications provided as Government Furnished Information are identified in Attachment 8.

3.2.1 Department of Defense Specifications

3.2.1.1 Contract Baseline Documents

See Attachment 1, Technical Data Package, for a list of design specifications, performance specifications, interface requirement documents, assembly drawings, and source control drawings.

3.2.1.2 Program Unique Documents

Title Date and/or Revision OPNAVINST S5513.5C – Undersea Warfare Program Security Classification Guides (SCGs) SCG ID: 139.2, MK 48 ADCAP (MODS 5 and beyond), MK 50, AND MK 54 Torpedoes (See Attachment 16)

26 April 2010

Undersea Weapons Program Office Risk Process Description (See Attachment 16) 8 September, 2003 System Safety Program Plan (SSPP) (See Attachment 16) November 2003 Configuration Management Plan for Undersea Weapons Program (PMS404), PEO SUB S0199-133-A-O-C (See Attachment 16)

August 2010, Rev D

3.2.1.3 Other Government Documents

Title Date and/or Revision Failure, Reporting, Analysis and Corrective Action Taken (MIL-HDBK-2155) (See http://www.assistdocs.com)

11 December 1995

Electrostatic Discharge Control Handbook for Protection of Electrical and Electronic Parts, Assemblies and Equipment (Excluding Electrically Initiated Explosive Devices) (Metric) (MIL-HDBK-263) (See http://www.assistdocs.com)

31 July 1994 Rev. B

Electrostatic Discharge Control Program For Protection Of Electrical And Electronic Parts, Assemblies And Equipment (Excluding Electrically Initiated Explosive Devices) (MIL-STD-1686) (See http://www.assistdocs.com)

25 October 1995 Rev. C

Navy Manufacturing Screening Program (NAVMAT P-9492) (See http://www.assistdocs.com)

May 1979

Environmental Stress Screening (ESS) of Electronic Equipment (MIL-HDBK-

344) (See http://www.assistdocs.com)

16 August 1993 Rev A

Configuration Management Guidance (MIL-HDBK-61) (See http://www.assistdocs.com)

7 February 2001 Rev A

DoD Standard Practice System Safety (MIL-STD-882) (See http://www.assistdocs.com)

11 May 2012 Rev E

Department of the Navy Weapons System Explosives Safety Review Program (NAVSEAINST 8020.6E) (See Attachment 16)

11 March 2008

Federal Acquisition Regulation (See https://acquisition.gov/far/) Available Online National Aerospace Standard, Hazardous Materials Management Program (NAS

411) (See http://www.assistdocs.com)

19 January 1995

Parts Management (MIL-STD-3018) (See http://www.assistdocs.com) 27 October 2011 Joint Electronics Type Designation System (MIL-STD-196) (See http://www.assistdocs.com)

11 September 2013 Rev F

GIDEP Operations Manual (NAVSEA S0300-BT-PRO-010) (See http://www.gidep.org/about/opmanual/opmanual.htm)

September 2009

3.2.1.4 Non-Government Documents

Title Description Date and/or Revision ANSI/ISO/ASQ Q9001 Quality Management Systems – Requirements Standard

(See http://webstore.ansi.org/) November 2008

AS9100C Quality Systems - Aerospace - Model for Quality Assurance in Design, Development, Production, Installation and Servicing (See http://standards.sae.org/as9100c/)

January 2009

ANSI/EIA-649-B National Consensus Standard for Configuration Management (See http://webstore.ansi.org/)

June 2011

IPC J-STD-001E Joint Industry Standard Requirements for Soldered Electrical and Electronic Assemblies…