N00024-16-R-5230-0002_Conformed.docx

N00024-16-R-5230

Section B - Supplies or Services and Prices

CLIN Number 0001

First Article Units

FFP

First Article Units (FAUs) Cooperative Engagement Capability (CEC) Signal Data Processor (SDP) assembly with transit case (Part Number 8360204). Shall be delivered in accordance with the technical data package and the requirements of this contract.

See Section B Note(s): G FOB: Origin (Shipping Point)

NET AMT

CLIN Number 0002

Signal Data Processor (FY17 Option)

FFP

Each

See Section B Note(s): A, B, F, and G

NET AMT

CLIN Number 0003

FMS Signal Data Processor (FY17 Option)

Each

NET AMT

CLIN Number 0004

Ordering Line Item - PIO

Lot

See Section B Note(s): A, G, and H

NET AMT

CLIN Number 0005

Engineering Studies and Analyses

See Section B Note(s): A, C, and G FOB: Destination

CPFF

ESTIMATED COST

FIXED FEE

TOTAL EST COST + FEE

CLIN Number 0006

COST

Other Direct Costs (ODCs) in support of CLIN 0005 Engineering Studies and Analyses. Incidental materials and travel that are used or consumed directly in connection with performance of CLIN 0005 Engineering Studies and Analyses.

See Section B Note(s): A, C, and G

ESTIMATED COST

CLIN Number 0007

Signal Data Processor (SDP) Repairs.

See Section B Note(s): A, D, and G

ESTIMATED COST

FIXED FEE

TOTAL EST COST + FEE

CLIN Number 0008

COST

Other Direct Costs (ODCs) in support of CLIN 0007 Signal Data Processor (SDP) Repairs. Materials that are used or consumed directly in connection with performance of CLIN 0007 SDP Repairs.

See Section B Note(s): A, D, and G

ESTIMATED COST

CLIN Number 0009

Data

Lot

Data in support of line item 0001, and if options are exercised line items 0002 through 0008, 1002 through 1008, 2002 through 2008, 3002 through 3008, and 4002 through 4008. See Section J Attachment B. Not Separately Priced (NSP).

See Section B Note(s): E and G

NET AMT

CLIN Number 0010

RESERVED

FOB: Destination

NET AMT

CLIN Number 0011

Additional Technical Data Rights

FFP

NET AMT

CLIN Number 1002

Signal Data Processor (FY18 Option)

Each

NET AMT

CLIN Number 1003

FMS Signal Data Processor (FY18 Option)

Each

NET AMT

CLIN Number 1005

Engineering Studies and Analyses.

See Section B Note(s): A, C, and G

ESTIMATED COST

FIXED FEE

TOTAL EST COST + FEE

CLIN Number 1006

COST

Other Direct Costs (ODCs) in support of CLIN 1005 Engineering Studies and Analyses. Incidental materials and travel that are used or consumed directly in connection with performance of CLIN 1005 Engineering Studies and Analyses.

ESTIMATED COST

CLIN Number 1007

Signal Data Processor (SDP) Repairs.

See Section B Note(s): A, D, and G

ESTIMATED COST

FIXED FEE

TOTAL EST COST + FEE

CLIN Number 1008

COST

Other Direct Costs (ODCs) in support of CLIN 1007 Signal Data Processor (SDP) Repairs. Materials that are used or consumed directly in connection with performance of CLIN 1007 SDP Repairs.

ESTIMATED COST

CLIN Number 2002

Signal Data Processor (FY19 Option)

Each

See Section B Note(s):A, B, F, and G

NET AMT

CLIN Number 2003

FMS Signal Data Processor (FY19 Option)

Each

NET AMT

CLIN Number 2005

Engineering Studies and Analyses.

See Section B Note(s): A, C, and G

ESTIMATED COST

FIXED FEE

TOTAL EST COST + FEE

CLIN Number 2006

COST

Other Direct Costs (ODCs) in support of CLIN 2005 Engineering Studies and Analyses. Incidental materials and travel that are used or consumed directly in connection with performance of CLIN 2005 Engineering Studies and Analyses.

ESTIMATED COST

CLIN Number 2007

Signal Data Processor (SDP) Repairs.

See Section B Note(s): A, D, and G

ESTIMATED COST

FIXED FEE

TOTAL EST COST + FEE

CLIN Number 2008

COST

Other Direct Costs (ODCs) in support of CLIN 2007 Signal Data Processor (SDP) Repairs. Materials that are used or consumed directly in connection with performance of CLIN 2007 SDP Repairs.

ESTIMATED COST

CLIN Number 3002

Signal Data Processor (FY20 Option)

Each

NET AMT

CLIN Number 3003

FMS Signal Data Processor (FY20 Option)

Each

See Section B Note(s):A, B, F, and G

NET AMT

CLIN Number 3005

Engineering Studies and Analyses.

See Section B Note(s): A, C, and G

ESTIMATED COST

FIXED FEE

TOTAL EST COST + FEE

CLIN Number 3006

COST

Other Direct Costs (ODCs) in support of CLIN 3005 Engineering Studies and Analyses. Incidental materials and travel that are used or consumed directly in connection with performance of CLIN 3005 Engineering Studies and Analyses.

ESTIMATED COST

CLIN Number 3007

Signal Data Processor (SDP) Repairs.

See Section B Note(s): A, D, and G

ESTIMATED COST

FIXED FEE

TOTAL EST COST + FEE

CLIN Number 3008

COST

Other Direct Costs (ODCs) in support of CLIN 3007 Signal Data Processor (SDP) Repairs. Materials that are used or consumed directly in connection with performance of CLIN 3007 SDP Repairs.

ESTIMATED COST

CLIN Number 4002

Signal Data Processor (FY21 Option)

Each

NET AMT

CLIN Number 4003

FMS Signal Data Processor (FY21 Option)

Each

NET AMT

CLIN Number 4005

Engineering Studies and Analyses.

See Section B Note(s): A, C, and G

ESTIMATED COST

FIXED FEE

TOTAL EST COST + FEE

CLIN Number 4006

COST

Other Direct Costs (ODCs) in support of CLIN 4005 Engineering Studies and Analyses. Incidental materials and travel that are used or consumed directly in connection with performance of CLIN 4005 Engineering Studies and Analyses. Work under this line item shall be placed as orders in accordance with Section H clause 5252.216-9112 ORDERS. The cost only amount (no fee) will be set forth on each order.

ESTIMATED COST

CLIN Number 4007

Signal Data Processor (SDP) Repairs.

See Section B Note(s): A, D, and G

ESTIMATED COST

FIXED FEE

TOTAL EST COST + FEE

CLIN Number 4008

COST

Other Direct Costs (ODCs) in support of CLIN 4007 Signal Data Processor (SDP) Repairs. Materials that are used or consumed directly in connection with performance of CLIN 4007 SDP Repairs.

ESTIMATED COST

NOTE A

Option item to which the option clause in Section I applies and which is to be supplied only if, and to the extent, said option is exercised.

NOTE B

CLINs 0002, 1002, 2002, 3002, and 4002 will consist of stepladder quantities which may range from a minimum quantity of one (1) and a maximum quantity of one hundred twenty (120). The unit pricing is:

* To be filled in by the Offeror. The Proposed Unit Prices shall be in whole dollars. The offeror shall provide stepladder pricing with a minimum of three (3) quantity breaks.

CLINs 0003, 1003, 2003, 3003, and 4003 will be used to fund FMS units. The offeror shall provide an additional stepladder for FMS units with a minimum quantity of one (1) and a maximum quantity of fifteen (15).

* To be filled in by the Offeror. The Proposed Unit Prices shall be in whole dollars. The offeror shall provide stepladder pricing with a minimum of three (3) quantity breaks.

These CLINs may consist of stepladder quantities which may range from the stated minimum quantities through the stated maximum quantities for each respective CLIN.

The production quantity of SDP units for this procurement is a maximum of 120 units per year. Given possible funding considerations this quantity may be purchased entirely under CLIN 0002 or in combination with CLIN 0003; CLIN 1002, or in a combination with CLIN 1003; CLIN 2002, or in a combination with CLIN 2003; CLIN 3002, or in a combination with CLIN 3003; CLIN 4002, or in a combination with CLIN 4003.

If exercised, the Section B Firm Fixed Price (FFP) amount shall be established through unilateral modification in accordance with the stepladder pricing within this note. For funding and administrative purposes, at the time of option exercise, the PCO may establish separately priced contract line items (CLINs) or subcontract line items (SLINs).

NOTE C

Engineering Studies and Analyses - The Government will issue Technical Instructions in accordance with NAVSEA 5252.242-9115 TECHNICAL INSTRUCTIONS (APR 2015) included in Section H of this contract. 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).

*--The Offeror shall divide the proposed Section B fixed fee amount by the associated hours and insert the result rounded to the nearest penny in the appropriate column in the table above. The Offeror shall propose no less than zero percent (0%) and no more than five percent (5%) for fixed fee. The proposed Section B Fixed Fee Amount shall be in whole dollars. The Government reserves the right to unilaterally correct any mathematical errors.

Additional SLINs will be added as required. Any Travel or Incidental Material associated with the performance of Technical Instructions on an associated CLIN in column A shall be reimbursed under the associated CLIN in column B.

The Total Cost Only (no fixed fee) amount of issued under Line Item Numbers 0006, 1006, 2006, 3006, 4006 are as set forth below.

NOTE D

SDP Repairs - The Government will issue Technical Instructions in accordance with NAVSEA 5252.242-9115 TECHNICAL INSTRUCTIONS (APR 2015) included in Section H of this contract. 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).

*--The Offeror shall divide the proposed Section B fixed fee amount by the associated hours and insert the result rounded to the nearest penny in the appropriate column in the table above. The Offeror shall propose no less than zero percent (0%) and no more than six percent (6%) for fixed fee. The proposed Section B Fixed Fee Amount shall be in whole dollars. The Government reserves the right to unilaterally correct any mathematical errors.

Additional SLINs will be added as required. Any Travel or Incidental Material associated with the performance of Technical Instructions on an associated CLIN in column A shall be reimbursed under the associated CLIN in column B.

The Total Cost Only (no fixed fee) amount of issued under Line Item Numbers 0008, 1008, 2008, 3008, 4008 are set forth below.

CLAUSES INCORPORATED BY FULL TEXT

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

NOTE F

NOTE F: The Government may unilaterally exercise options within the established stepladder pricing in accordance with FAR 52.217-7, incorporated in Section I. Furthermore, the Government has the right to unilaterally exercise these CLINs multiple times to increase the quantity under any of these CLINs after they have been initially exercised as long as it occurs before the close of option exercise window stated under FAR 52.217-7. The quantity can be increased by any increment as long as the total quantity does not exceed the maximum quantity stated in the stepladder pricing for that CLIN. If this increase occurs within a 90 day period of other quantities exercised under the CLIN, then pricing for all hardware under that CLIN procured within this 90 day period shall be adjusted to the unit price from the stepladder pricing appropriate for the total quantity being procured. For quantity increases not occurring within a 90-day period of when other quantities are exercised under the CLIN, the Government shall use unit pricing from the stepladder pricing applicable to the quantity of hardware being added and the pricing of previous quantities under said CLIN shall not change. Option(s) shall be exercised, if at all, by written or telegraphic notice(s) signed by the Contracting Officer and sent within the time(s) specified in FAR 52.217-7.

NOTE G

NOTE G – Where a CLIN applicablilty is identified within this contract, the applicablilty is to the clause above the applicability note.

NOTE H

NOTE H—The profit percentage to be applied against all PIO orders under this contract is: * % *--The offeror shall insert a profit percentage

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.

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

The clause entitled "LIMITATION OF COST" (FAR 52.232-20) or "LIMITATION OF FUNDS" (FAR 52.232-22), as appropriate, shall apply separately and independently to each separately identified estimated cost.

Applicable CLINs: 0005, 0006, 0007, 0008, 1005, 1006, 1007, 1008, 2005, 2006, 2008, 3005, 3006, 3007, 3008, 4005, 4006, 4007, 4008

HQ B-2-0015 PAYMENT OF FEES(S) (LEVEL OF EFFORT – ALTERNATE I) (NAVSEA) (MAY 2010)

(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.

Applicable CLINs: 0005, 0007, 1005, 1007, 2005, 2007, 3005, 3007, 4005, 4007

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.

HQ B-2-0020 TRAVEL COSTS – ALTERNATE I (NAVSEA) (APR 2015)

(a) Except as otherwise provided herein, the Contractor shall be reimbursed for its actual travel costs in accordance with FAR 31.205-46. The costs to be reimbursed shall be those costs determined to be allowable, allocable and reasonable by the Procuring Contracting Officer, Administrative Contracting Officer or their duly authorized representative, as advised by 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 incidental 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 incidental to relocation.

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

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

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

(iii) travel costs incurred in the replacement of personnel when such replacement is accomplished for the Contractor's or employee's convenience.

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:

Item Type

Section C - Descriptions and Specifications

STATEMENT OF WORK

C-1.0

SCOPE.

This Statement of Work (SOW) defines the efforts required for the manufacture, assembly, test, and repair of a Signal Data Processor (SDP) assembly for the Cooperative Engagement Transmission Processing Set. The Cooperative Engagement Capability (CEC) SDP assembly is defined in the Technical Data Package (TDP), provided as Government Furnished Information (GFI) (Attachment 2). The Contractor shall have and maintain a facility clearance of SECRET and be COMSEC certifiable, or certified per the DD254.

The Contractor’s obligation to perform this contract is in no way conditioned upon the Government provision of any facilities, material, property, equipment, services, or information, except as may otherwise expressly be provided herein.

C-1.1 Background. This procurement is for manufacture, assembly, test and repair of Build-To-Print (BTP) SDP assemblies. The SDP assembly is part of the Cooperative Engagement Transmission Processing Set, which satisfies the CEC specified in WS 32890 E and WS 32986-6 Prime Item Development Specifications (PIDS) provided as GFI in Attachment 2. The CEC SDP assembly was developed through a technical refresh/crypto modernization effort to take advantage of significant improvements in processor technologies and to incorporate the programmable crypto chip Seirra II into the design. The design also incorporates open architecture initiatives and satisfies sea, air and land-mobile requirements.

C-2.0

APPLICABLE DOCUMENTS.

The following documents, of the exact issue shown, form a part of the SOW to the extent specified herein. 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.

C-2.1 Joint Chiefs of Staff, Department of Defense (DoD) and DoD Services Documents.

DODM 5000.04-M-1 Cost and Software Data Reporting (CSDR) Manual, Dated 4 Nov 2011

DODI 5200.44 Protection of Mission Critical Functions to Achieve Trusted Systems and Networks (TSN), Dated 5 Nov 2012

C-2.2 SDP Related Documentation.

The SDP related documentation is provided in Attachment 2, Government Furnished Information (GFI).

C-2.3 Non-Government and Commercial Standards, Specifications and Other Applicable Publications.

ANSI/ASQC Q9001-2000 Quality Systems - Model for Quality Assurance In Design, Development Production, Installation and Servicing, Dated 13 Dec 2000

C-3.0

REQUIREMENTS.

C-3.1 General. For the CEC SDP incorporating the crypto modernization design, the work required by this contract shall be performed in accordance with the SOW, and meet the requirements of the TDP, provided as GFI, the CEC System Specification (WS 32890E), the Specification PIDS (WS 32986-6) and the Contract Data Requirements Data List (CDRL), DD Form 1423-1. Program information, deliveries and data shall be handled in accordance with the Contract Security Specification, (DD Form 254), Attachment 1.

C-3.2 Detailed Tasks. (applicable to all CLINs, if requirements are releated to Engineering Services CLINs xxx5 and SDP-S Repair CLINs xxx7, requirements are under the applicable Cost CLINs and will be described under a Technical Instruction. All other requirements will be under FFP CLINs)

C-3.2.1 Program Management and Control

C-3.2.1.1 Program Management Office. The Contractor shall establish a Program Management Office that is responsible for the management and control of all program elements in order to support the successful on-time delivery of the contract requirements.

C-3.2.1.2 Program Management Plan. The Contractor shall perform program management functions to ensure all the requirements in the SOW are executed and shall develop a Program Management Plan (CDRL A001) and Integrated Program Management Report (CDRL A002). The Program Management Plan shall incorporate detailed production planning, milestones and metrics capable of supporting the execution of all tasks required by the Contract and this SOW.

C-3.2.1.3 Meetings. The Contractor shall coordinate, schedule, prepare, conduct, facilitate and participate in reviews, meetings and conferences specified herein Report, Record of Meeting/Minutes (CDRL A003) and Presentation Material (CDRL A004). The Government reserves the right to attend meetings between the prime and subcontractors. The Contractor shall provide the Government notice of any of the specified meetings, in writing, fourteen (14) days in advance, or as soon as is reasonably possible. At a minimum, the Contractor shall initiate and support meetings identified within the paragraphs of this SOW.

Meetings shall occur Semi-Annually and Monthly (SOW paragraphs C-3.2.2 and C-3.2.2). When the Semi-Annual Program Review and Monthly Interchange Meetings are coincident the Monthly Interchange Meeting shall be replaced by the Semi-Annual Program Review. The Semi-Annual Program Reviews and Monthly Interchange Meetings shall be conducted at the Contractor’s facility.

C-3.2.2 Semi-Annual Program Review. The Contractor shall participate in the SDP semi-annual program reviews. Contractor will provide a SDP production status briefing at these reviews. At a minimum, the Contractor shall address production schedule status and any program risk and mitigation strategies. (CDRLs A003 and A004)

C-3.2.3 Monthly Interchange Meetings. Monthly interchange meetings shall be conducted. At a minimum, the Contractor shall address the following: overall contract status; number of failed tests, and corrective actions taken; material, supplier, subcontractor and vendor issues, updates to medium and high risk items, and production status, repair status, status of Government property, and financial status. (CDRLs A003 and A004)

C-3.2.4 Quality Assurance (QA). The Contractor shall implement to a Quality Assurance (QA) system that, at a minimum, meets the requirements of ANSI/ISO/ASQ 9001-2000, and ensures that the products delivered meet the requirements of the TDP and SOW. The Contractor shall be responsible for performance of all quality requirements for the items delivered under this contract. The QA system shall include provisions conforming to all production requirements cited in this SOW including calibration, subcontractor control, failure diagnosis and corrective action, statistical process control, component and environmental screening, testing, and inspection. The Government does not require registration/certification of the Contractor’s quality system if ANSI/ISO/ASQ 9001-2000 is chosen as the implemented quality system. The Contractor shall provide its Quality Assurance Program Plan. (CDRL A005)

C-3.2.5 Configuration Management Plan (CMP). The Contractor shall develop and implement a Supplier’s Configuration Management Plan (CDRL A006) that incorporates the principles of the PEO IWS 6.0 CMP, provided as GFI in Attachment 2. The Contractor’s CMP shall demonstrate a disciplined approach to identifying and documenting functional and physical characteristics of a material item, change control, reports and records of configuration information. ECPs generated by the CEC Design Agent (e.g. component redesign) will be incorporated into this contract via the Changes Clause.

C-3.2.6 Engineering Change Proposals (ECP). If the Contractor identifies the need for an Engineering Change Proposal, a Engineering Change Proposal Notification (CDRL A007) or Request For Variance (RFV) (CDRL A008) shall be submitted, as appropriate in accordance with the approved Contractor’s CMP (CDRL A006). Any change to the contract, variance, or deviation shall be implemented through a contract modification.

C-3.2.7 Obsolescence Management. The Contractor shall manage obsolescence issues in accordance with the PEO IWS 6.0 DMSMS Management Plan, provided as GFI in Attachment 2. The Contractor shall notify the Government within 5 working days of any emerging Diminishing Manufacturing Sources and Material Shortage issues in a Source Data for Forecasting DMSMS, DMSMS Report (CDRL A009). DMSMS solutions shall be implemented in accordance with the approved Supplier’s/Configuration Management Plan (CDRL A006). The Contractor shall maintain a DMSMS tracker that forecasts the material availability of all major SDP components over the life of the contract. The Contractor shall submit this report to the Government quarterly. The DMSMS tracker shall be delivered in accordance with the Technical Report–Study/Services, (CDRL A010).

C-3.2.8 System Safety. The Contractor shall prepare and provide a Safety Assessment Report, System Safety Program Plan (SSPP) (CDRL A011). The Contractor shall ensure that the SSPP adheres to the existing safety program plan, provided as GFI in Attachment 2.

C-3.2.9 Packaging Handling, Storage and Transportation (PHS&T). The Contractor shall develop and update, as necessary a Packaging Plan, Packaging, Handling, Storage and Transportation (PHS&T) Program to reflect SDP PHS&T requirements (CDRL A012). The PHS&T Program shall be maintained to deliver the SDP free from damage during production facility handling, and transit/ storage. The PHS&T Program shall be consistent with marking, reliability, maintainability, safety and human factors requirements. Transit cases shall be delivered with each SDP unit in accordance with Drawing Number 8487069-001 Rev – and Container Nameplate, Drawing Number 15930 Rev. B. The contractor shall provide GSA Classified IPS Container Drawing Number M191-4CSH as required in accordance with the TDP.

C-3.2.10 Unique Identification Marking. The Contractor shall apply the unique identification marking on each SDP assembly in accordance with DFARS 252.211-7003. Internal parts and subassemblies are not required to have unique identification marking. (CDRL A013)

C-3.2.11 Item Identification and Verification (IUID). The Contractor shall apply DoD IUID marking to all SDP-S’s procured under this contract as required by DFARS 252.211-7003. IUID pedigree data for any configuration item embedded in SDP-S shall be entered into the IUID Registry as children to the parent Unit. Configuration items procured as spares shall not have a parent-child relationship. The Contractor shall utilize MIL-STD-130N for IUID marking. The contractor shall deliver the final IUID Marking Activity, Validation and Verification Report (CDRL A013) at the end of this Contract.

The Contractor shall maintain marking and verification records for all IUID qualifying items manufactured on this contract. These records shall be available for inspection by the Procurement Contracting Officer (PCO) or other Government representative at any time during the life of this contract.

C-3.2.12 Cost and Software Data Reporting (CSDR). The Contractor shall establish, maintain, and use in the performance of this contract a CSDR system using the Contractor Cost Data Reports (CCDR) Plan provided as GFI which is designed to systematically collect and report actual contract costs to provide DoD cost analysts with needed data to estimate future costs. The Contractor's system and reports shall be in accordance with this SOW, the CSDR Manual dated 4 November 2011, Cost Data Summary Report (DD Form 1921) (CDRL A014), Functional Cost-Hour Report (DD Form 1921-1) (CDRL A015). The Contractor shall agree to provide access to all records and data requested by the Contracting Officer for the purpose of permitting Government surveillance to ensure continuing application of the CSDR to this contract.

The Contractor shall prepare and submit CCDRs in accordance with Cost Data Summary Report (DD Form 1921) (CDRL A014), Functional Cost-Hour Report (DD Form 1921-1) (CDRL A015). These reports shall be against each Contract Work Breakdown Structure (WBS) element as identified in the production contract CSDR Plan provided as GFI. This reporting shall apply to all costs incurred against this production contract. Separate DD Form 1921 (Cost Data Summary Report) and DD Form 1921-1 (Functional Cost-Hour) reports shall not be required for different appropriations (i.e. OPN, SCN). The contractor shall deliver a Contractor WBS (CDRL A016) and dictionary and submit to the Government with costs of all reporting WBS elements as identified in the CCDR Plan, segregated into Non-Recurring and Recurring costs.

The Contractor shall flow down CCDR requirements to any lower tier contractor with a contract valued at over $50 million or any contracts valued at between $7 million and $50 million that are designated by the DoD program office as being high risk, high value, or high technical interest.

C-3.2.13 Program Security. The Contractor shall comply with the requirements of the Security Classification Guide for CEC and DoDI 5200.01. Security of the Contractor's electronic media shall be in accordance with the above documents and the Contract Security Classification Specification (DD Form 254) provided as Attachment 1.

The Contractor shall handle and store classified material up to the Secret Level as referenced in Attachment 1, DD Form 254. The required facility clearance is Secret.

The Contractor requires COMSEC to accommodate the use of secure communications. The Contractor shall utilize an approved Contractor furnished Secure Terminal Equipment (STE) phone to facilitate secure communications.

C-3.2.13.1 International Traffic in Arms Regulations (ITAR) and Export Administration Regulations (EAR). The Contractor shall be solely responsible for obtaining any State Department approvals, licenses, Technical Assistance Agreements (TAA), etc. required by the ITAR and EAR and must obtain specific written authorization from the PCO, COR, or IWS 6 Security Manager before exercising those approvals or licenses.

C-3.2.13.2 Production Security. All CEC information is Export Controlled and must remain under continuous U.S. control. No ITAR or EAR - controlled information, critical components or Critical Program Information (CPI) shall be released to or developed, tested, fabricated or assembled by foreign: nationals, facilities, subcontractors, suppliers or vendors. The Contractor shall develop a Program Protection Implementation Plan (PPIP) (CDRL A017). As part of the PPIP, the Contractor shall notify the Government of any part, information, material, or labor not provided by a Trusted Source and must obtain specific written authorization from the PCO, COR, or IWS 6 Security Manager to proceed with its use. A Trusted Source is defined as a source that has the Government confidence in the source's ability to secure national security systems by assessing the integrity of the people and processes used to design, generate, manufacture, and distribute national security critical components.

The Contractor shall flow down the Trusted Sources and export control requirement to all subcontractors.

C-3.2.14 Counterfeit Parts and Materials. The Contractor shall provide a Counterfeit Prevention Plan (CDRL A018) that documents procedures to minimize the risk of procuring and/or using counterfeit parts and materials. This plan shall be in accordance with DFARS 252.246-7007 Contractor Counterfeit Electronic Part Detention and avoidance.

Solicitations and subcontracts for all suppliers shall contain a requirement for procedures to minimize the risk of procuring and/or using counterfeit parts and materials.

C-3.2.14.1 Preventing Counterfeit Parts and Materials. The Contractor shall comply with DFARS 252.246-7007.

Parts and materials shall not be purchased from unauthorized sources (e.g. independent distributor or broker) unless there is no other means for procurement. In isolated cases when an unauthorized source is the only possible choice for procurement, a Technical Report - Study/Services, Unauthorized Source Purchase Report (CDRL A019) shall be provided to the Security Manager. The report shall contain the following information:

a) Reason why an authorized supplier or OCM could not provide the part or material.

b) Product certificate of conformance with traceability to the OCM, if available.

c) Verification and authenticity data results (e.g., visual inspection, marking/surface finish permanency, Differential Power Analysis (DPA), Scanning Acoustic Microscopy, Energy Dispersive X-Ray Spectroscopy, Fourier Transform Infrared (FTIR) Spectroscopy, Rockwell Hardness Test, etc.).

SAE AS5553 contains information regarding the detection, avoidance, and mitigation of counterfeit electronic components, and may be used as a reference document for meeting the above steps.

C-3.2.15 Configuration Change Report. The Contractor shall maintain a Configuration Status Accounting Record and shall submit a Configuration Status Accounting Information, Configuration Change Report (CDRL A020). The report shall include a record of all ECP or Request for Variance (RFV) changes to the Government supplied TDP for the reporting quarter.

C-3.2.16 Risk Management. The Contractor shall develop, implement, and maintain a Contractor’s Risk Management Plan (CDRL A021) that meets the requirements of the PEO IWS 6.0 Risk Management Plan, provided as GFI, and includes a process that identifies, evaluates, and mitigates program risks including technical environmental, safety, cost, and schedule components. Risks shall be evaluated as to their impact on reliability, safety, supportability, affordability, schedule, and technical performance objectives. The Contractor shall implement mitigation plans that will reduce the risks to an acceptable management level for those risks with the highest probability to occur. Mitigation plans shall be managed and updated as contract performance proceeds. All risks shall be identified and reported to the Government. The risk management status shall be briefed during each program review and monthly interchange meetings

C-3.3 Detailed Tasks (applicable to CLINs identified below)

C-3.3.1 CLIN 0001 Requirements

C-3.3.1.1 First Article Units (FAUs) The Contractor shall manufacture three (3) SDP, First Article Units (FAUs).

The FAUs shall be manufactured with tools, materials, methods and vendors which are the same as the tools, materials, methods and vendors which will be used to manufacture the production SDP. The FAU shall conform in every respect to the requirements of this contract and shall be fully tested by the Contractor in accordance with this SOW to determine compliance with said requirements.

The FAUs shall undergoManufacturing Acceptance Testing (MAT) as outlined in Section 3.3.2.2. Following successful MAT, the Contractor shall deliver the First Article Units FOB to the designated destination in accordance with Section F.

Final Acceptance Testing will be conducted at a Government designated facility. Should the SDP fail Final Acceptance Testing, the SDP will be returned to the Contractor and the Contractor shall repair the failed SDP at their facility, repeat the MAT (as necessary) and return it to the designated facility for Final Acceptance Re-Testing. All costs related to repair, shipping and MAT re-tests of a failed SDP are to be borne by the Contractor.

The Contractor shall develop a Test/Inspection Report, Acceptance Test Report (CDRL A022), including descriptions of any faults or failures and how they were resolved for each Final Acceptance Test failure.

Contractor attendance at Final Acceptance Testing events will be directed by a Government-issued Technical Instruction (TI) as part of the Engineering Analyses referenced in SOW Section 3.3.4. Final Acceptance Testing shall include qualification and integration testing as necessary to demonstrate the SDP is fully functional and is ready for final delivery.

After successful MAT, the Contractor shall ship the first article SDPs to the Government designated facility when notified by the Contracting Officer’s Representative (COR). The Contractor shall store up to three (3) First Article Units for up to twelve (12) months before shipment to the end user.

C-3.3.1.2 Physical Configuration Audit (PCA). The Government will conduct the PCA. The Contractor shall be present at the PCA and assist the Government as required. The Contractor shall provide a Contractor’s Configuration Audit Plan, PCA Plan (CDRL A023). The PCA shall be conducted on the First Article Units (FAUs) and shall be performed using the Government approved Contractor’s Configuration Audit Plan, PCA Plan (CDRL A023). The PCA shall be performed prior to Final Acceptance Testing. During the PCA, the Government will confirm the FAUs are built in accordance with the provided Technical Data Package (TDP) and the contract. The PCA will be conducted at the Contractor facility. The FAUs shall conform in every respect to the requirements of this contract. Should the SDP fail PCA, the Contractor shall correct the findings of the audit and the PCA shall be repeated. All costs related to correction and PCA repetition shall be borne by the Contractor. DD 250 acceptance of FAU will be after successful PCA.

C-3.3.1.3 Security Production Assurance Plan (SPA). The Contractor shall develop a Security Production Assurance Plan (SPA) (CDRL A024) that meets the requirements of the SPA provided as GFI in Attachment 2. The Contractor shall conduct required testing in accordance with the approved SPA Test Plan and the approved SPA Test Procedures (CDRL A025) and submit a Security Production Assurance Report (CDRL A026) to the Government.

C-3.3.1.4 Post Award Kickoff Meeting. The Contractor shall schedule a Post Award Kickoff Meeting at their facility and hold the Post Award Kickoff Meeting within sixty (60) calendar days after contract award. During the Post Award Kickoff Meeting, the Contractor shall provide a detailed briefing on its management and contract execution strategy. The contract briefing shall include: any updates following the proposal; an organizational overview; introduction to key people; schedules, specifically material purchasing schedules; a description of the Contractor’s quality process, including the quality manager; and, a discussion of risk and risk mitigation strategies. The Contractor shall plan for a one day Post Award Kickoff Meeting (CDRLs A003 and A004).

C-3.3.1.5 Production Readiness Review (PRR). The Contractor shall conduct a formal PRR upon successful completion of Final Acceptance Testing and PCA. A dry run shall be conducted two weeks prior to the formal PRR to determine whether the Production facility is ready for production. The PRR focuses on assessing the readiness of the manufacturing processes, the Quality Management System, and the production planning (i.e., facilities, tooling and test equipment capacity, personnel development and certification, process documentation, inventory management, supplier management, etc.). The PRR shall evaluate the full, production-configured system to determine if it correctly and completely implements all system requirements. The PRR shall determine whether the traceability of final system requirements to the final production system is maintained. The Contractor shall identify existing and projected manufacturing problems and areas of risk and shall assess the progress in the Contractor's planning to achieve production rates required under the delivery schedule. The PRR shall determine if production or production preparations incur unacceptable risk that might breach thresholds of schedule, performance, and cost. A successful PRR shall demonstrate the SDP is ready to commence production. As a precursor to the PRR, the Contractor shall provide the Government with access to the appropriate artifacts for review and assessment to ensure entrance and exit criteria are satisfied. The PRR is considered to be successful when the Contractor provides evidence, and the Government concurs, the Manufacturing Readiness Level (MRL) of 9, or above, has been achieved. The current MRL 9 definition can be found at: https://acc.dau.mil/CommunityBrowser.aspx?id=23209. The PRR shall be conducted after successful completion of MAT, Final Acceptance Testing and the Physical Configuration Audit (PCA). (CDRL A023).

The entrance criteria for the PRR shall be the following:

· Production engineering problems encountered during MAT, and PCA are resolved

· The Technical documentation supports the production SDP-S

· The production enabling products and resources are available, have been allocated, and are ready to support end product production

· The production plans and preparations are in place to start production

· Summary of problem status is documented, including all known discrepancies from the PCA

The exit criteria for the PRR shall be the following:

· Production end-item burn in test are…