N00024-17-R-2462.docx

N00024-17-R-2462

Section B - Supplies or Services and Prices

AMOUNT

CLIN Number 0001

FOB: Origin (Shipping Point)

FPI

Detail Design and Construction of Landing Craft, Utility (LCU) 1700 Share Ratio:

Above Target Cost: 70/30 Below Target Cost: 50/50 Ceiling: 125% of Target Cost

TARGET COST

TARGET PROFIT

TOTAL TARGET PRICE

CEILING PRICE

CLIN Number 0002

Retained for Administratve Purposes

See Note A

CLIN Number 0003

Technical Manuals for

FFP

See Note B FOB: Origin (Shipping Point)

NET AMT

AMOUNT

CLIN Number 0004

Each

FPI

Construction of LCU 1700 Fiscal Year (FY) 18 Craft Requirements See Notes B and C Share Ratio:

Above Target Cost: 60/40

TARGET COST

TARGET PROFIT

TOTAL TARGET PRICE

CEILING PRICE

AMOUNT

CLIN Number 0005

Each

FPI

Construction of LCU 1700 FY 19 Craft Requirements See Notes B and C Share Ratio:

Above Target Cost: 50/50

TARGET COST

TARGET PROFIT

TOTAL TARGET PRICE

CEILING PRICE

AMOUNT

CLIN Number 0006

Each

FPI

Construction of LCU 1700 FY 20 Craft Requirements See Notes B and C Share Ratio:

Above Target Cost: 50/50

TARGET COST

TARGET PROFIT

TOTAL TARGET PRICE

CEILING PRICE

CLIN Number 0007

Construction of LCU 1700

FFP

Each

See Notes B, C and D

NET AMT

CLIN Number 0008

Construction of LCU 1700

Each

NET AMT

CLIN Number 0009

Construction of LCU 1700

Each

NET AMT

CLIN Number 0010

Construction of LCU 1700

Each

NET AMT

CLIN Number 0011

Construction of LCU 1700

Each

NET AMT

CLIN Number 0012

Data License Rights

FFP

See Note E

NET AMT

CLIN Number 0013

See Note B

CPFF

ESTIMATED COST

FIXED FEE

TOTAL EST COST + FEE

CLIN Number 0014

COST

Travel and Subsistence in Support of ITEM 0013 Cost Through G&A only, Not to Exceed $40,000.00

NOT-TO-EXCEED

CLIN Number 0015

See Note B

ESTIMATED COST

FIXED FEE

TOTAL EST COST + FEE

CLIN Number 0016

COST

Travel and Subsistence in Support of ITEM 0015 Cost Through G&A only Not to Exceed $20,000.00

NOT-TO-EXCEED

CLIN Number 0017

See Note B

ESTIMATED COST

FIXED FEE

TOTAL EST COST + FEE

CLIN Number 0018

COST

Travel and Subsistence Support of ITEM 0017 Cost Through G&A only Not to Exceed $20,000.00

NOT-TO-EXCEED

CLIN Number 0019

See Note B

ESTIMATED COST

FIXED FEE

TOTAL EST COST + FEE

CLIN Number 0020

COST

Travel and Subsistence Support of ITEM 0019 Cost Through G&A only Not to Exceed $10,000.00

NOT-TO-EXCEED

CLIN Number 0021

See Note B

ESTIMATED COST

FIXED FEE

TOTAL EST COST + FEE

CLIN Number 0022

COST

Travel and Subsistence Support of ITEM 0021 Cost Through G&A only Not to Exceed $10,000.00

NOT-TO-EXCEED

CLIN Number 0023

Technical Data Package

FFP

NET AMT

CLIN Number 0024

Interim Support Product & Services Order

Ordering Ceiling for this CLIN is: $8,000,000.00

NET AMT

CLIN Number 0025

Engineering & Industrial Services Orders

Ordering Ceiling for this CLIN is: $500,000.00

NET AMT

CLIN Number 0026

Crew Familiarization Training Orders

Ordering Ceiling for this CLIN is: $500,000.00

NET AMT

CLIN Number 0027

Shipping Orders

Ordering Ceiling for this CLIN is: $10,000,000.00

NET AMT

CLIN Number 0028

Data for ITEM 0001 and

FFP

(If options are exercised or orders placed) Items 0002 through 0027. See DD Form 1423, Exhibits "A", "B", and "C". Not Separately Priced.

(See Note F)

NET AMT

NOTE A - This line item is retained for administrative purposes only to allow for the potential of an option exercise quantity of more than one craft under ITEM 0004 which may have a different fiscal year line of accounting. The maximum quantity and other terms and conditions of ITEM 0004 remain unchanged.

NOTE B - 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 C - Step Ladder Pricing (Applicable to OPTION ITEMS 0004 through 0011 only). Attachment J-20 shall be used to determine the Target Cost, Target Profit, Target Price and Ceiling Price for the option quantities at option exercise.

NOTE D - STEEL COMMODITY ADJUSTMENT (Applicable to OPTION ITEMS 0007, 0008, 0009, 0010 and 0011 only)

1. General:

Note: The Tables and Columns referenced herein are contained within Table B.1a through Table B.1ad, found as Attachment J-21 to this contract.

(a) It is anticipated that the Contractor’s cost for steel may vary during contract performance. The Government acknowledges that there is a level of risk due to potential fluctuations in steel commodity pricing; therefore, the Government may adjust the proposed unburdened direct steel costs, either up or down. This is described herein as steel commodity adjustments. The overall objective of this steel commodity adjustment is for the Government to share the risk with the Contractor by potentially adjusting OPTION ITEM prices prior to exercising the applicable options. Any adjustment will be reflected in final price stated in the unilateral option exercise supplemental agreement.

2. Definitions:

(a) As used in this provision:

“Steel” means Hot Rolled Steel captured under IHS Global Insights Hot Rolled Bars, Plates & Structural Shapes Index PPI3311107.

(b) Table B.1 Column definitions:

Column (1) - Computation Period: The calendar year in which the Contractor will procure steel. The computation period begins on January 1 and ends on December 31 of the applicable year.

Column (2) - Projected Index Value (RFP Release): The projected index value at RFP release for each Computation Period. The Projected Index Values in column (2) reflect the average of the projected index values for the calendar year rounded to the first decimal place. The steel index values provided in Column (2) of Tables B.1a through B.1ad were current as of IHS Global Insight’s 2016 Q4 release. This baseline will not be modified.

Column (3) - Tolerance Band: For each Computation Period, plus or minus five percent (5.0%) of the Projected Index Values (RFP Release). It was established by multiplying 95% and 105% by the Projected Index Value (RFP Release).

Column (4) - Projected Index Value (Option Exercise): The most recent IHS Global Insight index for the calendar year in which the option is being exercised, rounded to the first decimal place.

Column (5) - Index Difference: If the Projected Index Value (Option Exercise) is below the Tolerance Band, the Index Difference is the difference between the Projected Index Value and the lower Tolerance Band value. If the Projected Index Value is above the tolerance band, the index difference is the difference between the Projected Index Value and the upper Tolerance Band index value.

Column (6) - Index Change: Index Difference divided by the applicable Tolerance Band value.

Column (7) - Proposed Costs: Included in the offer upon which contract award was based. See paragraph 3 below. The Proposed Cost amount reflects the total quantity for that specific Table.

Column (8) – OPTION ITEM Steel Commodity Adjustment. Final adjustment amount.

3. Cost Category:

(b) Costs subject to any adjustment consist of one hundred percent (100%) of unburdened direct steel costs to the Contractor. These costs exclude any requirement for preservation, packaging, and/or packing beyond standard commercial practices. The proposed unburdened direct steel costs (Column (7)) does not to include Contractor added material handling, facilities capital cost of money, G&A, or profit.

(c) The “Proposed Costs” (Column (7)) stated for steel is not in excess of the Contractor's quoted price provided by the steel producer for like quantities of the same item. This price is the net price to the Contractor after applying any applicable standard trade discounts offered by the steel producer from its catalog, list, or schedule price. The Proposed Costs were included in the offer upon which contract award was based.

4. Computations:

(a) Once the OPTION ITEM quantity has been determined by the Government, the Government will compute the OPTION ITEM Steel Commodity Adjustment. This computation will occur no more than thirty (30) days prior to any option exercise of the applicable ITEM. The Government will then adjust the Contractor’s Craft Quantity Step Ladder Pricing, found in Attachment J-20, either up or down as described below. Commodity adjustments will be based on a comparison of the Projected Index Value (Column (2)) and the Projected Index Value (Column (4)).

(b) If, at the time of the computation, the Projected Index Value (Column (4)) has increased beyond the tolerance bands high index value (Column (3)), the Craft Quantity Step Ladder Price (Attachment J-20) will be increased.

(c) If, at the time of the computation, the Projected Index Value (Column (4)) has decreased beyond the tolerance bands low index value (Column (3)), the Craft Quantity Step Ladder Price (Attachment J-20) will be decreased.

(d) Upon a determination by the Government of the quantity of craft to be exercised under the applicable ITEM, the appropriate Table from B.1 will be used and the adjustment will be computed by the Government as follows:

Step 1 - The Projected Index Value (Option Exercise) will be obtained from most recent IHS Global Insight index for the calendar year in which the option is being exercised.

Step 2 - If the Projected Index Value (Option Exercise) falls within the Tolerance Band, no price adjustment will be entered in Column (8) and no adjustment will be made to the Craft Quantity Step Ladder Price.

Step 3A - If the Projected Index Value (Option Exercise) falls outside the Tolerance Band, the Index Difference will be calculated. If the Projected Index Value (Option Exercise) falls above the Tolerance band, the calculation will be: Projected Index Value (Option Exercise) minus High Index Value equals Index Difference.

Or

Step 3B – If the Projected Index Value (Option Exercise) falls outside the Tolerance Band, the Index Difference will be calculated. If the Projected Index Value (Option Exercise) falls below the Tolerance band, the calculation will be: Projected Index Value (Option Exercise) minus Low Index Value equals Index Difference.

Step 4 – The Index Change is then calculated by dividing the Index Difference by the High or Low Index Value, as applicable. If using the High Index Value the result will be a positive value. If using the Low Index Value the result will be a negative value.

Step 5 – The Index Change (positive or negative) is multiplied by the Proposed Costs. This results in the Commodity Adjustment.

Step 6 - Craft Quantity Step Ladder Pricing, found in Attachment J-20, is adjusted up or down by the Commodity Adjustment calculated under Step 5. This will be the final amount for the option exercise.

Example (All dollar values are for example purposes and shall not be construed as reflective of the Government’s expectation regarding pricing.):

The Government intends to exercise ITEM 0007 for Qty 1 on 31 May 2021. The Proposed Costs upon which contract award was based is $1,000,000 and the Contractor anticipated those costs would be incurred in Calendar Year (CY) 2021. Therefore, the Projected Index Value (RFP Release) was of 180.2. The Government retrieves the current calendar year steel indices from IHS Global Insights on 16 May 2021. On 16 May 2021, the projected index value for CY 2021 is 194.5. The current Projected Index Value is higher than the tolerance band high index value; therefore, an upward adjustment is calculated as shown in the example table below. The upward adjustment of $2,800 is added to the option price of $1,000,000. ITEM 0007 Qty 1 will be exercised at a value of $1,002,800.

*Index Difference = Projected Index Value (Option Exercise- High Index Value ** Index Change = Index Difference / High Index Value ***OPTION ITEM Steel Commodity Adjustment =Proposed Direct Steel Material Cost*Index Change **** Final Adjusted ITEM 0007 Price = ITEM 0007 Qty 1 Price plus OPTION ITEM Steel Commodity Adjustment

5. Administration:

(a) The calculation of the OPTION ITEM Steel Commodity Adjustment and the resulting Final Adjusted Price shall be shown in the modification which exercises any applicable option.

(b) This steel commodity adjustment calculation and subsequent option exercise shall not be subject to further adjustment after option exercise.

(c) Any subsequent changes resulting from the publication of revised or final indices shall not impact Tables B.1a through B.1ad at any time after option exercise.

(d) In the event IHS Global Insight discontinues publication or changes the content of any index used in this adjustment calculation, the parties shall mutually agree on an appropriate substitute for the affected index for use in determining the steel commodity adjustment in accordance with this note.

(e) Nothing contained in this provision shall be considered as prohibiting changes in the contract prices made pursuant to any other provision of this contract.

(f) Any dispute arising under this clause shall be determined in accordance with and subject to the provisions of the “Disputes” clause of this contract.

NOTE E - At contract award, the Government will determine if it wishes to procure all or part of the offered Licensed Rights identified in Attachment J-19. The “Amount” shown in Section B and Attachment J-19 of the awarded contract will reflect the total value of the rights procured. Any discrepancies between the information identified in the Attachment J-19A matrices and in the Attachment J-19B“7017” list will be resolved in favor of the Government.

NOTE F - Offeror shall provide a spreadsheet which lists, by Contract Data Requirement List (CDRL) Item, the "Estimated Total Price" for each data in accordance with Section L.3.5.2.2.3. However, this Line Item is considered to be Not Separately Priced and no dollar value shall be entered in the “Amount” column above.

CLAUSES INCORPORATED BY FULL TEXT

B.2 COMPENSATION (FI) (NAVSEA) (JAN 1990) (Applicable to ITEM 0001 and OPTION ITEMS 0002, 0004, 0005, and 0006 only)

The total compensation to be paid the Contractor shall be the sum of the total final price(s) established in accordance with the "INCENTIVE PRICE REVISION--FIRM TARGET (FI) (APR 1984) (DEVIATION) (MODIFIED) (MMM 2017) " (FAR 52.216-16) clause and the amounts payable to or due from the contractor pursuant to the contract provisions identified in paragraph (d)(1) of said clause.

B.3 CONTRACT SUMMARY FOR PAYMENT OFFICE (COST/FIXED PRICE) (FEB 1997)

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

B.4 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.

B.5 LIMITATION OF COST/LIMITATION OF FUNDS (NAVSEA) (SEP 1990) (Applicable to OPTION ITEMS 0013, 0014, 0015, 0016, 0017, 0018, 0019, 0020, 0021, and 0022 only)

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.

B.6 PAYMENTS OF FEE(S) (LEVEL OF EFFORT) (NAVSEA) (MAY 1993) (Applicable to OPTION ITEMS 0013, 0015, 0017, 0019 and 0021 only)

(a) For purposes of this contract, "fee" means "target fee" in cost-plus-incentive-fee type contracts, "base fee" in cost-plus-award-fee type contracts, or "fixed fee" in cost-plus-fixed-fee type contracts for level of effort type contracts.

(b) The Government shall make payments to the Contractor, subject to and in accordance with the clause in this contract entitled "FIXED FEE" (FAR 52.216-8) or "INCENTIVE FEE", (FAR 52.216-10), as applicable. Such payments shall be equal to * percent ( * %) of the allowable cost of each invoice submitted by and payable to the Contractor pursuant to the clause of this contract entitled "ALLOWABLE COST AND PAYMENT" (FAR 52.216-7), subject to the withholding terms and conditions of the "FIXED FEE" or "INCENTIVE FEE" clause, as applicable (percentage of fee is based on fee dollars divided by estimated cost dollars, including facilities capital cost of money) Total fee(s) paid to the Contractor shall not exceed the fee amount(s) set forth in this contract.

(c) The fee(s) specified in SECTION B, and payment thereof, is subject to adjustment pursuant to paragraph (g) of the special contract requirement entitled "LEVEL OF EFFORT." If the fee(s) is reduced and the reduced fee(s) is less than the sum of all fee payments made to the Contractor under this contract, the Contractor shall repay the excess amount to the Government. If the final adjusted fee exceeds all fee payments made to the contractor under this contract, the Contractor shall be paid the additional amount, subject to the availability of funds. In no event shall the Government be required to pay the Contractor any amount in excess of the funds obligated under this contract at the time of the discontinuance of work.

(d) Fee(s) withheld pursuant to the terms and conditions of this contract shall not be paid until the contract has been modified to reduce the fee(s) in accordance with the "LEVEL OF EFFORT" special contract requirement, or until the Procuring Contracting Officer has advised the paying office in writing that no fee adjustment is required.

* To be filled in by Offeror

B.7 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.

Section C - Descriptions and Specifications

This solicitation does not contain Earned Value Management (EVM) requirements as described in DFARS 232.234-7002. The Government is still evaluating whether EVM will be a required for this procurement. The Government does not commit to responding to any feedback provided. A solicitation amendment will be issued at a later date addressing the Government’s final decision regarding the issue.

PART 1 – CONTRACT LINE ITEM DESCRIPTION

C.1 STATEMENT OF WORK

C.1.1 GENERAL SCOPE

C.1.1.1 This Contract is for the procurement of the detail design and construction of up to thirty-two (32) Landing Craft, Utility (LCU) 1700 Class craft and their initial support. The Contractor shall develop a detail design, construct and deliver the craft, technical manuals, data, interim support products and services, familiarization training, engineering and industrial services, special studies, a technical data package, and shipping for each craft, if and to the extent options are exercised or orders are placed.

C.1.1.2 The LCU 1700 Class craft shall be steel vessels with a designed service life of 30 years. The LCU 1700 Class craft shall be designed to optimize reliability, availability and maintainability for reduced Total Ownership Costs (TOC) (acquisition and support costs) while providing the required operational performance and fuel efficiency. Reduced TOC shall be emphasized throughout the performance of this Contract.

C.1.1.3 Unless otherwise specified, any requirement that references “craft,” “ship,” “ships,” “boat,” “boats,” “vessel,” or “vessels” shall be applicable to the craft procured under this Contract.

C.1.1.4 The Contractor shall provide all of the facilities, material, equipment, product support, services, manpower, quality assurance, inspection, test facilities, management organization, and control required for design, engineering, procurement, management, construction, testing, trials, outfitting, and delivery of the craft in accordance with the requirements of this Contract. The Contractor shall be responsible for following its engineering and manufacturing processes in accordance with the Contract to procure, develop, test, and deliver final end items to the Government.

C.1.1.5 The Contractor is solely responsible for the overall engineering, design, procurement, integration, installation and testing of the craft and any individual systems. The Contractor is solely responsible for any design or production decisions which do not result in a modification to the Contract requirements.

C.1.1.6 The Contractor is solely responsible for all work to other subcontractors and vendors. The Contractor shall fully integrate the effort of Subcontractors and vendors and provide overall direction and guidance, track progress and status, and integrate products and services provided by Subcontractors and vendors with the products and services provided by the Contractor.

C.1.1.7 Post Award Conference. In accordance with FAR 42.5 and DFARS 242.503, the Contractor shall host a Post Award Conference no later than 15 days after award of the Contract. The date shall be coordinated with the Contracting Officer and the Government will prepare the agenda. The Contractor shall prepare minutes and submit copies of all information presented. Company representatives from each member on the Contractor's team, if applicable, shall attend. (Contract Data Requirements List (CDRL) A001)

C.1.1.8 Government participation on any Joint Contractor/Government team shall not be construed as Government concurrence or approval regarding issues presented, nor shall it be construed as Government direction. The providing of “Government expertise” shall not relieve the Contractor of the responsibility for any design or construction decisions. “Government expertise” shall not be construed as a validation or value judgment upon which the Contractor may solely rely. No Government representative, other than the Contracting Officer, has the authority to direct or change the statement of work, specification, or any other term, condition or requirement of the Contract.

C.1.1.9 In addition to specific meetings identified herein, the Contractor shall attend and participate in meetings, as needed, to support the efforts currently under contract, including design, production, and/or product supportability, or to inform the Government of emergent issues. It is anticipated that most of these meetings will be conducted via telephone. These meeting shall not interfere with continued design progress or production of craft. These meetings shall not be used as approval to proceed in design or production. Government participation in any said meetings shall not be construed as a change in any contractual requirement.

C.1.1.10 The Contractor shall answer specific inquiries by the Government on the status of program data. In addition to the information described in the applicable “Inspection” clauses found in the Contract, the Contractor shall provide routine access, upon request and on a non-interference basis, to any working papers, calculations or drafts, including all detail design drawings, working drawings, specifications, bills of materials, analyses, and any other technical data or analyses that are part of, or contributing to, the detail design or product support products development. Government access and review of any working papers, calculations or drafts shall not be construed as Government concurrence or approval of the information contained therein.

C.1.1.11 The Contractor shall use U.S. Customary Units of measurement for design efforts and all documentation, except where necessary to interface with existing metric equipment or systems. Where existing technical documentation, metric equipment or systems do not require modification for any reason other than conversion to U.S. Customary Units, conversion of the documentation, equipment or systems need not be accomplished. The units used shall be clearly identified in all documentation. Long tons shall be used to describe craft characteristics, with the exception that short tons shall be used to describe payload.

C.1.1.12 The Contractor shall grant authorization for Government representatives to photograph the craft, on a non-interference basis, at the Contractor’s facility during construction and trials. The Contractor shall assign to the Government the copyright to any photographs produced by the Contractor or its subcontractors, with attribution, unless a specific photograph contains proprietary information.

C.1.1.13 Contractor Proposed Alternates

C.1.1.13.1 Alternate Design Features. During the execution of the contract, the Contractor may propose alternate design features for structure or hull form, propulsors and steering, and/or craft systems. Proposed alternates shall meet the craft’s performance and interface requirements described in the Specifications for Building LCU 1700 (Attachment J-1A). For each proposed alternate, the Contractor shall submit drawings or diagrams, the approach for implementing the alternate, the benefits and/or risks of the alternate, and the TOC calculations demonstrating the impact to the LCU 1700 Class across the entire lifecycle. All proposed alternates are subject to Government approval. (CDRL B001)

C.1.1.13.1.1 Alternate Structure or Hull Form - The Contractor may propose alternate structure (including structural arrangements, structural shapes, and ramp design) and hull form. Aluminium shall not be used for structures. Hull appendages shall not be retractable unless specified by the Government. If an alternate hull form is proposed, the Contractor shall validate the proposed design with a bare hull (including skegs) resistance model test.

C.1.1.13.1.2 Alternate Propulsors and Steering - The Contractor may propose alternate propulsors and steering arrangements. Redundant power sources for propulsion and hotel loads shall be identified. All diesel engines shall be rated for continuous duty. Water-jets, pump-jets, Voith-Schneider drives and composite propeller will not be considered as acceptable alternates by the Government.

C.1.1.13.1.3 Alternate Craft Systems - The Contractor may propose alternate craft systems, such as the anchoring system, HVAC system, potable water, etc.

C.1.1.13.2 Alternate Items. During the execution of the contract, where craft components and equipment are specified by brand name or manufacturer and model number in Specifications for Building LCU 1700 (Attachment J-1A), the Contractor may propose the use of alternate items in accordance with FAR 52.211-6 Brand Name or Equal. To assist the Contractor, the most significant components of the Preliminary Design are listed in LCU 1700 Class Commercial Off The Shelf Items List (Attachment J-1C), along with the factors affecting their selection by the Government. The Contractor shall submit a redlined markup of LCU 1700 Class Commercial Off The Shelf Items List (Attachment J-1C), should any alternate items be proposed. Proposed alternates shall meet the craft’s performance and interface requirements described in Specifications for Building LCU 1700 (Attachment J-1A). Emphasis shall be placed on reduced TOC which can be achieved by reduced purchase cost with equivalent performance attributes or, if there is an increase in purchase cost, by reduced lifecycle costs due to improvement in performance attributes. Note- All diesel engines shall be rated for continuous duty. (CDRL B001)

C.1.1.14 End Use License Agreement Indemnification

Except when indemnification by the Government is expressly authorized by statute and specifically authorized under applicable agency regulations and procedures, any supply or service acquired under this contract that is subject to any End Use License Agreement (EULA) or similar legal instrument which includes any clause requiring the Government to indemnify the Contractor or any person or entity for damages, costs, fees, or any other loss or liability that would create an Anti-Deficiency Act violation (31 U.S.C. 1341), the following shall govern:

(i) Any such clause is unenforceable against the Government.

(ii) Neither the Government nor any Government authorized end user shall be deemed to have agreed to such clause by virtue of it appearing in the EULA or similar legal instrument.

(iii) Any such clause is deemed to be stricken from the EULA or similar legal instrument.

C.1.1.15 If the Contractor ceases doing business and cannot fulfill its obligations, the Government shall automatically be granted Government Purpose Rights to all existing data developed under this contract.

C.1.2 REFERENCES

C.1.2.1 Order of precedence only applies when there is an inconsistency or conflict in the requirements. In case of inconsistency in the documents, the following order of precedence applies in accordance with the "ORDER OF PRECEDENCE – UNIFORM CONTRACT FORMAT" (FAR 52.215-8) clause of this Contract and this paragraph:

a. The Schedule (excluding the specifications)

b. Representations and other instructions

c. Contract clauses

d. Other documents, exhibits, and attachments.

i. Craft Technical Data Package (Attachment J-1)

1) Specifications for Building LCU 1700 (Attachment J-1A)

2) LCU 1700 Preliminary Design Contract Drawings and Data (Attachment J-1B)

3) Other primary references in Specifications for Building LCU 1700 (Attachment J-1A) (including Interface Control Drawings (ICDs)), except type drawings

4) Sub-tier references in Specifications for Building LCU 1700 (Attachment J-1A)

5) Type drawings in Specifications for Building LCU 1700 (Attachment J-1A)

ii. CDRLs (Attachment J-2)

iii. All other documents, exhibits, and attachments

e. The specifications (unless otherwise addressed in paragraph (d))

i. Military Standards

ii. Other Standards (e.g., Commercial)

C.1.2.2 The omission in one document of details covered in another shall not be considered an inconsistency. In cases where there is not a conflict, but a different level of detail is provided among the references, the more detailed requirements shall take precedence. In the event of a conflict, Specifications for Building LCU 1700 (Attachment J-1A) shall take precedence over the detail design.

C.1.3 SCOPE – ALL ITEMS

C.1.3.1 PROGRAM MANAGEMENT

C.1.3.1.1 Program Management Structure. The Contractor shall establish a program management structure that verifies overall quality of the LCU 1700 Program craft and deliverables and compliance with the contractual requirements stated herein. The Contractor shall insure that the responsibility, authority and accountability for overall management of engineering, logistics, design, planning, procurement, construction, testing, quality assurance, trials, outfitting and delivery of the craft(s) is clearly defined. The Contractor shall provide the management effort necessary to ensure effective cost, schedule and technical performance throughout the contract period of performance. The Contractor shall provide to the Government visibility and status of all engineering and pre-construction planning efforts. The Contractor shall identify to the Government potential problems that could adversely impact craft performance, cost and/or delivery schedule and provide alternative solutions as well as recommended resolutions in accordance with “C.8 CONTRACTOR PROBLEM IDENTIFICATION REPORTS (CPIR).”

C.1.3.1.2 Program Manager. The Contractor shall identify a designated Program Manager (PM) to serve as the principal representative of the Contractor throughout Contract performance. The PM shall be the point of contact for all matters concerning the Contractor’s responsibility for performance of the Contract and on-time delivery of technically compliant craft and associated equipment and services, as well as for ensuring program integrity and overall Contract performance. The PM shall ensure that administrative, product support, financial and other task requirements pertinent to Contract performance are addressed.

C.1.3.1.3 Joint Quality Management Team (JQMT). The Contractor shall establish a JQMT which will include on-site Government representatives. The purpose of the joint team is to utilize Contractor and Government expertise in reviewing the developing design for identification of possible failures to meet Contract requirements as early as possible, to enhance progress toward completion of the detail design, to identify issues that may affect product quality and to reduce the potential for rework during construction. This team shall participate in the Contractor’s informal design reviews.

C.1.3.1.3.1 As part of the JQMT, the Contractor shall establish a Propulsion System Integration Team (PSIT) with experience in the design, delivery, installation, and testing of marine propulsion systems and propulsion control systems similar to those of the LCU 1700 Class. The PSIT may include the Contractor, design agent(s), propulsion component vender(s), and specialty subcontractors.

C.1.3.1.3.2 The JQMT shall review proposed design changes as part of the Contractor’s design review process to facilitate understanding of the issue and the Government configuration change review and approval process.

C.1.3.1.3.3 The Contractor shall immediately notify the Contracting Officer in writing and hold an informal design review with the JQMT if overall dimensional aspects (height, length, beam, weight, draft, etc.) of the craft may exceed the limits identified in the Technical Data Package (Attachment J-1) or if any required performance capability is at risk as the design is maturing.

C.1.3.1.4 Cost and Schedule Reporting. The Contractor shall maintain the fully resourced Integrated Master Schedule (IMS) (Attachment J-10) and report progress. The Contractor shall monitor and report program cost and schedule progress data by CLIN. (CDRL A002) (CDRL A003) (CDRL A004)

C.1.3.2 ON-SITE SHIPYARD FACILITIES AND SERVICES

The Contractor shall provide the following facilities and services on-site at its shipyard:

a. Office Facilities - The Contractor shall prepare and maintain office space for ten Government personnel from Contract award through Contract completion. The facility shall be located within close proximity of the craft, Contractor Program Manager, and shipyard shops and offices. Office spaces shall be adequate to accommodate the furniture and equipment identified herein and shall include at least two private offices with lockable doors. The Contractor shall provide one conference room, and one conference room table and seating to accommodate at least ten persons. Total space provided shall not be less than 80 square feet per person, excluding the conference room. The main office space shall have a minimum of one main lockable entrance/exit and one secondary lockable entrance/exit. All locks for the main and secondary doors shall be keyed identically. Ten keys for the main office door locks and two keys each for the door locks on the private offices shall be provided to the Government Supervisor of the project. The keys for the private offices shall be dedicated solely to the private office doors and shall not be able to be used on the main office doors. Sufficient power shall be provided to power lighting and normal office equipment including computers. Office space shall be either heated or cooled as necessary. Facilities shall be provided clean, sanitary, damage free, and vermin free. The Contractor shall provide separate male and female lavatory and sanitary facilities, hot and cold potable water, and janitorial services. These janitorial services shall be provided to the same level as provided by the Contractor for its own facilities.

b. Office Furniture and Equipment - The Contractor shall provide the following office furniture and equipment for each person: desk, ergonomic swivel armchair, book case, and trash receptacle, to the same level as provided by the Contractor for its own facilities. In addition, the Contractor shall provide six side chairs, six two-drawer legal size filing cabinets, six four-drawer legal size filing cabinets, and one drafting table suitable for reviewing plans and drawings. One color photocopier/ scanner/printer/fax with Contractor provided paper, toner, ink and maintenance support, and which shall have the capabilities of making two sided copies, sorting, scanning and has automatic feed. Computers will be provided by the Government.

c. Telephone Service – The Contractor shall provide twelve (12) each separate (no party lines) telephone direct trunk lines connected to the municipal telephone system with 24 hour continuous unlimited local and long distance service for the duration of the Contract. Telephone service shall include voicemail capabilities for all telephones. Ten (10) telephones shall be provided. One (Polycom or equivalent) speakerphone shall be provided in the conference room. One dedicated telephone line for the fax machine.

d. Internet Service - The Contractor shall provide 24 hour continuous High-Speed Broadband Internet service. A separate data line, via router for high speed data service, shall be provided to each desk. In addition, three (3) data lines shall be provided to the conference room. Internet connections provided by the Contractor shall allow Remote Access Service (RAS)/Virtual Private Network (VPN) for Navy Marine Corps Internet (NMCI) configured computers. The Contractors firewall/routers shall be configured to allow inbound and outbound traffic to the following protocol/ports:

· User data protocol (UDP) / transmission control protocol (TCP) Port 53 for domain name server (DNS);

· IP protocol 50 for IP Security (IPSec) encapsulating security protocol traffic;

· IP protocol 51 for IPSec authentication header traffic;

· UDP Port 500 for Internet Key Exchange (IKE) negotiation traffic; and

· UDP Port 4500 for IKE negotiation traffic.

e. Parking Spaces - The Contractor shall provide conveniently located secure parking spaces to accommodate 10 vehicles for the duration of this Contract and marked as “Reserved for Government Personnel.” The Contractor shall provide four (4) additional parking spaces assigned for visitors designated by the Government.

C.1.3.3 DATA MANAGEMENT

C.1.3.3.1 The Contractor shall develop and maintain records of progress in all areas of work included in this Contract. The Contractor shall be responsible for the development and management of all documentation generated by the Contractor and its subcontractors under this Contract. The Contractor shall maintain central files of record copies that shall include reproducible copies (including original, as appropriate) of all data that are generated under this Contract.

C.1.3.3.2 The Government has established an Integrated Digital Environment (IDE) for use on the LCU 1700 Program. The Government IDE provides a secure data repository for data exchange and storage with the necessary access control for data protection in conjunction with a collaborative environment. In accordance with Department of Defense (DoD) requirements, the Government IDE is configured to use the Public Key Infrastructure (PKI) to verify user identity. The Government will provide Contractor personnel with accounts/licenses to the IDE environment. However, IDE accounts/licenses are restricted to U.S. Citizens only.

C.1.3.3.3 The Contractor shall obtain a valid username, password, and DoD-approved certificate to access the IDE. This certificate may be provided by a DoD-issued Common Access Card (CAC) or may be a certificate issued by a DoD-approved External Certification Authority (ECA) listed below:

C.1.3.3.4 The Contractor shall identify and maintain an account for a minimum of two qualified users, each with a required PKI certificate. However, access will not be restricted should the Contractor choose to add additional qualified users. The Contractor shall contact the Contracting Officer and identify the members of their team that will require access to the IDE and will be submitting CDRLs.

C.1.3.3.5 For each account requested, the Contractor shall submit the potential user’s first name, last name, title, company name, phone number, and email address. The account will be generated for these individuals and emailed to them directly. When the user first receives his/her email, they should follow the instructions to confirm that the user account is fully setup; this includes registering their PKI credentials.

C.1.3.3.6 One on-site training will be provided by the Government after Contract award. All Contractor personnel given an account shall be present. The training will demonstrate how to use the IDE, focusing on its functionality, and how to submit CDRLs to the IDE. The estimated time for training will be one (1) day. Supplemental training is regularly provided online to all users of the IDE. The Contractor may participate in this training as needed.

C.1.3.3.7 All data loaded to the IDE by the Contractor shall include associated attributes and shall be saved in Government defined formats and locations. The Contractor shall use the Government IDE to upload and directly deliver all Contract data deliverables to the Government.

C.1.3.3.8 The LCU 1700 Program Contract Baseline Data will be retained in the IDE. Contract Baseline Data to be placed under formal Government configuration control consists of the Craft Specification, Contract Drawings and Data, Schedules, and CDRLs. Contract Baseline Data, once approved and placed under formal Government configuration control, will not be changed without Government approval. The Government is responsible for physically updating the Contract Baseline Data. This includes the updates to the Craft Specification, Contract Drawings, Project Peculiar Documents, and all other Contract Baseline Documents.

C.1.3.4 QUARTERLY PROGRAM REVIEWS (QPR)

C.1.3.4.1 The Contractor shall conduct QPRs, also known as Shipbuilding Production Progress Conferences (SPPC), described in “C.18 SHIPBUILDING PRODUCTION PROGRESS CONFERENCES.” The QPRs shall be held at the Contractor’s facility or at a location mutually agreeable to the Government and Contractor, or via video-teleconference at the Government’s discretion. The first QPR shall be held no later than four months after contract award. The Contractor shall prepare and submit the QPR agenda which will be mutually agreed upon by the Government and the Contractor. (CDRL A005)

C.1.3.4.2 The Contractor shall address all LCU 1700 Program craft and data deliverable status awarded under this Contract. The QPR shall be combined with a formal design review when a formal design review is scheduled in that quarter. The Contractor shall present the program’s design and construction progress and status, including design, technical and production risks along with proposed mitigation strategies. The Contractor shall address schedule, key components availability, and delivery of craft. Design progress shall be reviewed at QPRs until the detail design is one hundred percent complete as agreed to between the Government and the Contractor at the Production Readiness Review. After the Production Readiness Review, proposed and approved changes to the completed design shall be included for review at QPRs.

C.1.3.4.3 The Contractor shall report progress against the established performance measurement baseline. The Contractor shall also review its performance measurement baseline plan following major changes to the baseline. The Contractor shall report on work deferred from the original planned construction schedule to a later timeframe and identify any impact and planned mitigation. The Contractor shall present the status of any pending change requests or other Government decisions required. The Contractor shall present any other programmatic risks and their proposed mitigation strategies.

C.1.3.4.4 Product Support Management Team (PSMT) Meetings. As part of the QPR, the Contractor shall support, attend and present data products for PSMT meetings, which are chaired by the Government, to include splinter meetings to review progress, integration and completeness of supportability product development. Corrective actions and scheduled completion dates as a result of sight validations performed by the Contractor or Supervisor shall be presented at each PSMT meeting. Any items of Contractor Furnished Material (CFM) allowance that have been used for repair or for test purposes during construction shall be reported. The Contractor shall participate in product support element splinter sessions, as required.

C.1.3.5 CONFIGURATION MANAGEMENT PROCESS

The Contractor shall plan and execute a configuration management process for the LCU 1700 Program throughout the design and construction process in accordance with the System Engineering Management Plan (Attachment J-7). This process shall ensure that all detail level work being performed under this Contract is in compliance with appropriate Program Contract Baseline Data and supports the goal of delivering craft which are identical except for Government approved changes. Overall craft design, positioning of equipment and system integration shall not change throughout the lifecycle of the Contract unless said change is incorporated via contract modification. Configuration Management definitions and requirements are contained in “C.7 CONFIGURATION MANAGEMENT.” (CDRL B001) (CDRL B002)

C.1.3.6 ESTIMATING STANDARDS

C.1.3.6.1 The Contractor shall develop and maintain estimating standards for use in preparing engineering change proposals. The estimating standards shall be documented in writing and available for Government review. The documentation, at a minimum, shall contain Contractor policies and procedures which delineate the process and methodology for development of rates, factors, labor hours, material costs, etc. These standards shall be consistent across all Contractor product lines and not contract unique.

C.1.3.6.2 The estimating standards shall be established on the basis of time studies or historical data, where appropriate, and shall cover engineering drawing effort, manufacturing or vessel labor, and…