Draft_HPIB_RFP_N00024-18-R-2210_Amendment_1_Sections_A_-_K.pdf

CODE

(Hour)

PAGE(S)

until local time

X

A

X B

X C X D

EX

X

G

F 223 - 236

237 - 264

X H 265 - 273

RATING PAGE OF PAGES

7. ISSUED BY

(Date)

IMPORTANT - Award will be made on this Form, or on Standard Form 26, or by other authorized official written notice.

Previous Edition is Unusable 33-134 STANDARD FORM 33 (REV. 9-97)

Prescribed by GSA

FAR (48 CFR) 53.214(c)

1 273

(If other than Item 7)

15A. NAME 16. NAME AND TITLE OF PERSON AUTHORIZED TO

AND

ADDRESS

SIGN OFFER (Type or print)

OF

OFFEROR

AMENDMENT NO. DATE

15B. TELEPHONE NO (Include area code) 17. SIGNATURE15C. CHECK IF REMITTANCE ADDRESS

IS DIFFERENT FROM ABOVE - ENTER

SUCH ADDRESS IN SCHEDULE.

18. OFFER DATE

1. THIS CONTRACT IS A RATED ORDER

UNDER DPAS (15 CFR 700)

2. CONTRACT NO.

N00024 8. ADDRESS OFFER TO

See Item 7

9. Sealed offers in original and copies for furnishing the supplies or services in the Schedule will be received at the place specified in Item 8, or if handcarried, in the depository located in

CAUTION - LATE Submissions, Modifications, and Withdrawals: See Section L, Provision No. 52.214-7 or 52.215-1. All offers are subject to all terms and conditions contained in this solicitation.

10. FOR INFORMATION

CALL:

A. NAME (NO COLLECT CALLS)

11. TABLE OF CONTENTS

SOLICITATION/ CONTRACT FORM

SUPPLIES OR SERVICES AND PRICES/ COSTS

2 - 18

X I CONTRACT CLAUSES

DESCRIPTION/ SPECS./ WORK STATEMENT X

PACKAGING AND MARKING

19 - 129

130 - 132

J LIST OF ATTACHMENTS

INSPECTION AND ACCEPTANCE

DELIVERIES OR PERFORMANCE

133 - 139

140 - 141 X K

REPRESENTATIONS, CERTIFICATIONS AND

OTHER STATEMENTS OF OFFERORS

CONTRACT ADMINISTRATION DATA 142 - 145 X

SPECIAL CONTRACT REQUIREMENTS

OFFER (Must be fully completed by offeror) 146 - 178 X M

L INSTRS., CONDS., AND NOTICES TO OFFERORS

EVALUATION FACTORS FOR AWARD

NOTE: Item 12 does not apply if the solicitation includes the provisions at 52.214-16, Minimum Bid Acceptance Period.

is inserted by the offeror) from the date for receipt of offers specified above, to furnish any or all items upon which prices are offered at the price set opposite each item, delivered at the designated point(s), within the time specified in the schedule.

13. DISCOUNT FOR PROMPT PAYMENT

(See Section I, Clause No. 52.232-8)

14. ACKNOWLEDGMENT OF AMENDMENTS

(The offeror acknowledges receipt of amendments

AMENDMENT NO. DATE

to the SOLICITATION for offerors and related documents numbered and dated):

FACILITY

12. In compliance with the above, the undersigned agrees, if this offer is accepted within calendar days (60 calendar days unless a different period

SOLICITATION, OFFER AND AWARD

X

(X) SEC. DESCRIPTION (X) SEC. DESCRIPTION PAGE(S)

PART I - THE SCHEDULE

26. NAME OF CONTRACTING OFFICER (Type or print) 27. UNITED STATES OF AMERICA 28. AWARD DATE

EMAIL:TEL: (Signature of Contracting Officer)

CODE CODE

B. TELEPHONE (Include area code) C. E-MAIL ADDRESS

AWARD (To be completed by Government)

19. ACCEPTED AS TO ITEMS NUMBERED 20. AMOUNT 21. ACCOUNTING AND APPROPRIATION

22. AUTHORITY FOR USING OTHER THAN FULL AND OPEN COMPETITION:

10 U.S.C. 2304(c)( ) 41 U.S.C. 253(c)( ) (4 copies unless otherwise specified)

23. SUBMIT INVOICES TO ADDRESS SHOWN IN ITEM

24. ADMINISTERED BY (If other than Item 7) CODE 25. PAYMENT WILL BE MADE BY CODE

PART IV - REPRESENTATIO NS AND INSTRUCTIO NS

PART III - LIST O F DO CUMENTS, EXHIBITS AND O THER ATTACHMENTS

179 - 221

PART II - CO NTRACT CLAUSES

NAVAL SEA SYSTEMS COMMAND (HQ)

1333 ISAAC HULL AVE SE

WASHINGTON NAVY YARD DC 20376-2020

FAX:

TEL:

FAX:

TEL:

NOTE: In sealed bid solicitations "offer" and "offeror" mean "bid" and "bidder".

SOLICITATION

6. REQUISITION/PURCHASE NO.

N00024NRXXXXX

5. DATE ISSUED

19 Oct 2017

4. TYPE OF SOLICITATION

SEALED BID (IFB)

NEGOTIATED (RFP)

[ X ]

3. SOLICITATION NO.

N0002418R2210

Section B - Supplies or Services and Prices

ITEM NO SUPPLIES/SERVICES QUANTITY UNIT UNIT PRICE AMOUNT

CLIN

Number

1 Lot

Advance Planning & Detail Design HPIB 1

FPI

Advance Planning, Engineering, Design, and Procurement of Long Lead Time

Material (LLTM) for Heavy Polar Icebreaker (HPIB) Cutter 1

FPI/EPA

(See Notes A, B, I, and K)

FOB: Origin (Shipping Point)

PURCHASE REQUEST NUMBER: N00024NRXXXXX

TARGET COST

TARGET PROFIT

TOTAL TARGET PRICE

CEILING PRICE

SHARE RATIO ABOVE TARGET

SHARE RATIO BELOW TARGET

OPTION HPIB 1 Detail Design and Construction

FPI

HPIB Detail Design and Construction for Cutter 1

(See Notes A, B, C, H, I, and J)

TOTAL TARGET PRICE

CEILING PRICE

OPTION HPIB 2 Detail Design and Construction

HPIB Detail Design and Construction for Cutter 2

(See Notes A, B, C, and J)

TOTAL TARGET PRICE

CEILING PRICE

OPTION HPIB 3 Detail Design and Construction

HPIB Detail Design and Construction for Cutter 3.

(See Notes A, B, C, and J)

TOTAL TARGET PRICE

CEILING PRICE

Data Requirements

Not Separately Priced (NSP).

The data to be furnished hereunder shall be prepared in accordance with the

Attachment J-2 Contract Data Requirements List (CDRL), attached hereto.

FOB: Destination

TOTAL TARGET PRICE

CEILING PRICE

Provisioned Item Orders

FFP

OPTION In accordance with the Section C Clause "PROVISIONED ITEM ORDERS -

ALTERNATE II."

(See Notes C, and G)

NET AMT

Hours

OPTION Special Studies

Analyses and reviews in support of the HPIB Program.

(See Notes C, D, and E)

CPFF

ESTIMATED COST

FIXED FEE

TOTAL EST COST + FEE

ITEM NO SUPPLIES/SERVICES QTY U/I UNIT PRICE AMOUNT

PURCHASE REQUEST NUMBER:

N00024NRXXXXX

Engineering and Industrial Services

In accordance with the Section H clause

"5252.216-9110 ORDERS (FIXED PRICE)."

(See Notes C and F)

OPTION

FSC CD: 1925

OPTION Crew Familiarization

(See Notes C, D, and E)

FOB: Destination

CPFF

FIXED FEE

TOTAL EST COST + FEE

Data Rights

OPTION (See Note C)

OPTION Schedule Incentive for HPIB 1

COST

(See Notes C and H)

OPTION CAPEX Incentive for HPIB 1

COST

(See Notes C and H)

HPIB 1 - 24 Month Warranty

OPTION Warranty associated with CLIN 0002 HPIB 1 DD&C

(See Note C)

HPIB 2 - 12 Month Warranty

OPTION Warranty associated with CLIN 0003 HPIB 2 DD&C

HPIB 3 - 12 Month Warranty

OPTION Warranty associated with CLIN 0004 HPIB 3 DD&C

CLIN NOTES

NOTE A: The Incentive will be determined as described in Section I clause “52.216-16 INCENTIVE PRICE

REVISION--FIRM TARGET”.

NOTE B: The Offeror shall propose a Fixed-Price Incentive Firm Target Cost for CLINs 0001- 0004 within the following Government/Contractor share line and ceiling boundaries:

DESCRIPTION CLIN 0001/0002 CLIN 0003 CLIN 0004

Overrun 50 TBD TBD

Underrun 50 TBD TBD

Ceiling 125% 120% 120%

NOTE C: Option CLIN to which the Section I clause “52.217-7 OPTION FOR INCREASED QUANTITY-

SEPARATELY PRICED LINE ITEM,” applies and which is to be supplied only if and to the extent said option is exercised.

NOTE D: In accordance with the Section H clause entitled “5252.242-9115 TECHNICAL INSTRUCTIONS” and the Section B clause entitled “PAYMENT OF FEE(S) (LEVEL OF EFFORT) – ALTERNATE I”.

NOTE E: These CLINs may be incrementally funded in accordance with Section I clause “52.232-22

LIMITATION OF FUNDS” and Section H clause “5252.232-9104 ALLOTMENT OF FUNDS”.

NOTE F: The estimated burdened dollar amount is $XXX,000,000. It is understood and agreed that the Government has no obligation under this contract to issue any orders hereunder. Orders will be placed in accordance with the terms and conditions of Section C clause “5252.216-9110 ORDERS (FIXED-PRICE).”

Funding will be provided with each order that is placed. The Government will apply the

Attachment J-22, Contract Burdened Pricing Rates, fully-burdened rates to the direct labor and direct material bases to derive the total FFP for each order.

NOTE G: The estimated burdened dollar amount is $XXX,000,000. It is understood and agreed that the Government has no obligation under this contract to issue any orders hereunder. Orders will be placed in accordance with the terms and conditions of Section C clause “PROVISIONED ITEMS ORDERS - ALTERNATE

II.” Funding will be provided with each order that is placed. The Government will apply the

Attachment J-22, Contract Burdened Pricing Rates, fully-burdened rates to the direct labor and direct material bases to derive the total FFP for each order.

NOTE H: This is a special incentive in the amount of $XX,XXX,000 and shall be awarded in accordance with the

Section B clause entitled “DETERMINATION OF SPECIAL INCENTIVE”, applicable to CLIN 0002.

NOTE I: CLINs 0001 and 0002 will be merged (subsumed) upon full funding of CLIN 0002.

NOTE J: CLINs 0002, 0003, and 0004 are listed in Section B as "Option Items" for administrative purposes only.

These Line Items are also annotated as "Block Buy" in Section B as they are part of the FYXX-FYXX

Heavy Polar Icebreaker Class "Block Buy" authorized under section XX of the National Defense

Authorization Act for Fiscal Year 20XX. However, as of the date of award of this contract, funds for future year Heavy Polar Icebreaker Program requirements have not yet been appropriated. Accordingly, funds are not presently available for these Line Items of the contract. The Government's obligation under this contract for these Line Items is contingent upon the availability of appropriated funds from which payment for such purposes can be made. No legal liability on the part of the Government for any payment for these Line Items may arise until funds are made available to the Contracting Officer for such purposes and the Contractor receives notice of such availability, to be confirmed in writing by the

Contracting Officer. These Line Items of the contract are to be funded on an installment basis in accordance with the Section H clause entitled "INSTALLMENT FUNDING."

NOTE K: For proposal preparation purposes, the expected amount for CLIN 0001 is NTE $270M.

DETERMINATION OF SPECIAL INCENTIVE

(Applicable to CLIN 0002)

A. General

1. The successful delivery and affordability of HPIB is of paramount importance to the Coast Guard. In order to attain this goal, it is in the Program's best interests to incentivize increasingly more efficient and cost effective Contractor performance and to reward Contractor efforts that substantially contribute to the production of a more affordable HPIB.

2. Accordingly, in addition to any profit or other compensation which may be paid to the Contractor, pursuant to other clause(s) of this contract, the Contractor may earn additional incentive fee, as determined by the

Special Incentive Fee Determining Official (SIFDO), in consultation with the Procuring Contracting

Officer (PCO), pursuant to the procedures set forth in this clause.

3. Any incentive or portion thereof, in Table B below, which is not earned in accordance with the terms of the incentive, will not roll over or be available for any other incentive or any subsequent period, event or milestone.

B. Special Incentive Areas of Emphasis

The Contractor will be evaluated on the following prospective areas of emphasis. Specific details will be provided through updates to the draft RFP.

1) Capital Expenditures (CAPEX)

2) Production Readiness

3) Compartment Completion

4) Acceptance Trial Execution

5) Total Ownership Cost (TOC) Reduction Initiatives

The amount of incentive fee payable to the Contractor, pursuant to this clause, shall be determined in accordance with the procedures set forth in paragraph D using the evaluation factors set forth in paragraph C below. The total incentive fee amount available pursuant to this clause is $X as outlined in Table A below.

TABLE A

INCENTIVE DESCRIPTION INCENTIVE VALUE

CAPEX $X

Production Readiness $X

Compartment Completion $X

Acceptance Trial Execution $X

Total Ownership Cost (TOC) Reduction Initiatives $X

TOTAL SPECIAL INCENTIVE $X

C. Evaluation Factors

Award of this special incentive fee will be based on the below distinct objectives. Specific details will be provided through updates to the draft RFP.

1. Capital Expenditures (CAPEX)

The Contractor will be evaluated in the area of investments in facilities and process improvement projects regarding its effectiveness in providing cost savings to the Government for HPIB construction, and for other Coast Guard

Programs as applicable. (Applicable to CLIN 0002) Details are set forth below:

(a) In order to be considered for a CAPEX incentive payment, the Contractor must submit a fully supported Business Case Analysis (BCA) to the Program Manager. The BCA shall include a description of the specific objectives to be achieved, description and rationale for the proposed approach, the benefits that address the concerns of the Contractor and the Coast Guard, metrics for evaluation of investment benefits, a statement of investment risks and risk mitigation, a project framework and implementation timeframe, investment cost estimates and the portion of the investment proposed to be funded by the Contractor. The contractor shall include return on investment calculations, calculate the net present value of savings on future US Coast Guard Cutters, and consider the share-line ratio to calculate actual savings to the Government. Approval shall be at the sole discretion of the

Government and shall be based upon the Government’s determination that the Contractor’s proposed CAPEX or

Process Improvement project is in the best interests of the HPIB Program. In the event of the Government’s approval of any such proposed project, the Government shall determine the amount of the Special Incentive to be paid to the Contractor in consequence of such a project, and the milestones, dates, and/or circumstances at which point(s) payment(s) of any such Special Incentive shall be paid. A CAPEX incentive for those approved facility improvements or process improvement projects will be paid in accordance with the investment implementation timeframe included in the BCA. CAPEX incentive payments may be made up to $X, subject to availability of funds.

(b) The Coast Guard is interested in opportunities for primes to incentivize domestic manufacturers in the area of investments in facilities and process improvement projects which will provide cost savings to the

Government. In the spirit of the Navy's Superior Supplier Incentive Program, this incentive is meant to be offered to potential suppliers that have demonstrated exceptional contractor performance in areas of cost, schedule, performance, quality and business relationships where a meaningful CAPEX incentive will allow for a reduction in the suppliers pricing for proposed items of supply within this shipbuilding program. The Contractor shall submit a detailed BCA describing the CAPEX incentive offered to the domestic manufacturer for an item of supply included in the Contractor's price proposal and an explanation of how the nature of the CAPEX incentive has contributed to a reduction in the proposed price and will result in savings to the Government. Furthermore, the BCA shall include a statement of investment risks and risk mitigation, a project framework and implementation timeframe, investment cost estimates and the portion of the investment proposed to be funded by the supplier. If such an explanation requires information that may be considered proprietary to the domestic manufacturer, the domestic manufacturer may submit a detailed BCA directly to the Government. Approval shall be at the sole discretion of the Government and shall be based upon the Government’s determination that the supplier’s proposal is in the best interests of the

HPIB Program. A CAPEX incentive for those approved facility improvements or process improvement projects will be paid in accordance with the investment implementation timeframe included in the BCA. CAPEX incentive payments may be made up to $X, subject to availability of funds.

(c) In addition to paragraphs (a) and (b) above, the Contractor may submit BCAs for prime contractor or domestic manufacturer facility improvements or process improvement projects. Approval shall be at the sole discretion of the Government and shall be based upon the Government’s determination that the proposed CAPEX or

Process Improvement project is in the best interest of the HPIB Program. A CAPEX incentive for those approved facility improvements or process improvement projects will be paid in accordance with the investment implementation timeframe included in the BCA. CAPEX incentive payments may be made up to $X, subject to availability of funds.

(d) The parties agree that, for the purpose of calculating depreciation expenses (FAR 31.205-11) and

Facilities Capital Cost of Money (FCCM) (FAR 31.205-10) associated with the facilities and/or equipment acquired by the Contractor in accordance with this clause, any special incentive amount paid by the Government under this clause shall be excluded from the capitalized value of the facilities and/or equipment. This capitalized value

(reduced by the special incentives) for facilities and/or equipment shall be utilized in the calculation of indirect rates for all Government contracts.

(e) Notwithstanding any other clause of this contract, if, in its sole discretion, the Government determines that any approved project significantly fails to meet the BCA savings estimates or fails to make progress in project execution therein contained, the Government may unilaterally revoke the prior approval for such project and may recover from the Contractor all or any portion of any Special Incentive amount(s) paid to the Contractor pursuant to paragraph (a) and (b) by withholding such amounts from any future payments to be made under this contract.

(f) All projects for which CAPEX incentives are paid to the Contractor under this clause shall be accounted for in accordance with the Contractor’s disclosure statement.

(g) The parties acknowledge that they will have relied upon the approved BCA and the facilities/project investment evaluation model provided by the Contractor to the Government in establishing the amount of the

CAPEX incentive available under this clause. In the event that either the Government or the Contractor discovers a formula or computational error in such model that would result in an overpayment of CAPEX incentive to the

Contractor, the discovering party shall provide prompt written notice to the other, and the parties shall endeavor in good faith to negotiate the appropriate corrections to the BCA. The Contractor shall promptly refund to the

Government any overpayment of CAPEX incentive resulting from such modification.

(h) This incentive will be eligible for award until the total amount available in Table A for this incentive has been earned or until launch for the last ship awarded under this contract, whichever is earlier.

(i) For the purpose of tracking the total CAPEX incentive amount in accordance with paragraphs (a), (b) and (c), the following table reflects the approved BCAs, associated approval values and dates, and the difference between approved BCA amounts and the total dollar amounts stated in paragraphs (a), (b) and (c).

BCA # Date Approved Approved Dollar

Amount

Remaining CAPEX

Incentive

2. Production Readiness: An incentive will be assessed for demonstrating exceptional preparedness to begin and sustain ship construction by exceeding the minimum requirements of the Production Readiness Review (PRR).

The minimum requirements at PRR are stated in Attachment J-3 of this contract. (Applicable to CLIN 0002, 0003, 0004)

3. Compartment Completion: An incentive will be assessed for successful early turnover of critical compartments to the Government. This incentive will include a listing of compartments identified by the Government deemed critical to the outfitting, installation and startup of Government Furnished Equipment (GFE) to maintain shipyard production and testing schedules. (Applicable to CLIN 0002, 0003, 0004)

4. Acceptance Trial Execution: An incentive will be assessed for achieving quality INSURV scores in selected

Equipment Operating Conditions (EOC) and Trial Demonstration categories. Each category will be provided a weighting for input into an incentive calculation. (Applicable to CLIN 0002, 0003, 0004)

5. Total Ownership Cost (TOC) Reduction Initiatives: An incentive will be assessed for TOC reduction initiatives identified by the Contractor that are approved and implemented by the Government. (Applicable to CLIN 0002, 0003)

D. Special Incentive Fee Determining Official

The Program Manager, CG 9326, in coordination with the PCO will determine the Special Incentive Fee earned for each evaluation factor.

E. Special Incentive Determination and Reclama Procedures

1. Within thirty (30) working days after the end of each evaluation period, the Contractor shall furnish to the SIFDO a self-evaluation and such other information as may be reasonably required to assist the SIFDO in its evaluation of the contractor’s performance for the factors listed in paragraph (C). The Contractor shall include a rating for each of the factors with rationale supporting the proposed rating in the self-evaluation.

2. Within ten (10) working days after the Contractor provides its self-evaluation, the SIFDO will prepare a performance evaluation letter and will provide it to the Contractor.

3. Provided the SIFDO agrees with the contractor’s self-evaluation, the SIFDO, in coordination with the

PCO, shall provide a final incentive fee determination within ten (10) working days of receiving the Contractor’s self-evaluation letter and the contractor will be notified as provided in paragraph E.6 of this clause.

4. If the SIFDO does not concur with the contractor’s self-evaluation, disagreements shall be expressed in a performance evaluation letter to the contractor. The Contractor shall submit written comments and any supporting documentation to the SIFDO within ten (10) working days of receiving the performance evaluation letter.

5. Within ten (10) working days of receiving any Contractor comments or reclama, the SIFDO shall make a final determination of the special incentive fee earned.

6. Within ten (10) working days of the final determination, the SIFDO, in coordination with the PCO, will notify the Contractor, in writing, of the final determination and the PCO will issue a unilateral modification to the contract to provide the Special Incentive Fee.

F. Finality of Incentive Fee Determining Official’s Determination of the Special Incentive Fee

The determination of the amount of the Special Incentive fee, if any, to be paid to the Contractor is a unilateral decision made solely at the discretion of the Government consistent with procedures outlined above.

G. Payment Of Special Incentive

The Contractor will be paid the special incentive amount(s) earned upon the receipt of an executed contract modification awarding the special incentive and submittal of proper invoices to the cognizant Payment Office. The

Contractor’s invoice shall show the amount of special performance incentive payable by contract line item. The

Contractor’s invoice must cite the appropriate accounting data in order for payment to be effected.

CLAUSES INCORPORATED BY FULL TEXT

HQ B-2-0002 COMPENSATION (FI) (NAVSEA) (JAN 1990)

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" (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.

Applicable CLINs: 0001, 0002, 0003, 0004

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: 0007, 0009

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.

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

2017)

(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 Government's return of the new or unused item to the Contractor is practical, the Government, 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 Government 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

0001 FIXED

0002 FIXED

0003 FIXED

0004 FIXED

0005 FIXED

0006 FIXED

0007 FIXED

0008 FIXED

0009 COST

0010 FIXED

0011 COST

0012 FIXED

Section C - Descriptions and Specifications

STATEMENT OF WORK

PART I: GENERAL SCOPE OF WORK

The Contractor shall complete the Detail Design and Construction (DD&C), engineering, and testing of Heavy Polar

Icebreaker (HPIB) class cutter(s), and shall deliver completed cutters at the Contractor’s shipyard in accordance with the provisions of this contract, including all list of documents, exhibits, and other attachments listed in

Section J.

Approvals, agreements, understandings, and design details on other contracts shall not constitute establishment of precedent for this contract, except as specified elsewhere in the contract. All departures from the requirements of this contract shall be fully justified in writing and submitted to the Government for written approval.

Only the Procuring Contracting Officer (PCO) and Administrative Contracting Officer (ACO) have the authority for the U.S. Navy to authorize or change work and sign contract documents. No other personnel are authorized by their formal communications or by their course of conduct to commit the U.S. Navy to price changes, schedule changes, or to perform different or additional work. The Contractor shall only execute tasking or requests for support under this contract when such direction comes from, or is agreed to by, the PCO or the ACO.

The award of the DD&C Contract does not indicate that the Government has approved or certified the design provided with the proposal. The Contractor shall remain fully responsible for delivering the cutter which meets the requirements of this Contract.

PART II: CONTRACT LINE ITEM NUMBER (CLIN) DESCRIPTIONS

C.2.1. CLIN 0001: ADVANCE PLANNING AND DETAIL DESIGN FOR HEAVY POLAR ICEBREAKER

(HPIB)

The Contractor shall perform the advance planning and engineering, and procure LLTM required to support the potential Detail Design and Construction (DD&C) of HPIB prior to DD&C option exercise, in accordance with the

J-16 Advance Procurement Statement of Work and J-17 LLTM List.

C.2.2. CLIN 0002, 0003 AND 0004: DD&C OF HPIB CUTTER (OPTION)

The Contractor shall design and construct the cutter in accordance with the requirements of the contract.

C.2.3. CLIN 0005: DATA REQUIREMENTS

The data to be furnished hereunder shall be prepared in accordance with the Attachment J-2, Contract Data

Requirements List (CDRL), attached hereto. For CLINs 0002, 0003, and 0004, the Contractor shall verify the final technical data deliverables, in accordance with Attachment J-2, accurately reflect the ship as delivered and as modified under this Contract at the conclusion of the Guaranty Period.

Costs associated with Attachment J-2 (with exception to Special Study Report (DI-145)) shall be proposed under the applicable Cutter DD&C CLIN 0001, 0003, and 0004.

C.2.4. CLIN 0006: PROVISIONED ITEM ORDERS (OPTION)

The Contractor shall provide spares, shore-based spares, repair parts, special tools, support, and test equipment, in accordance with the requirements herein. Orders for this effort shall be authorized by the Contracting Officer and placed in accordance with Section C of this contract entitled “PROVISIONED ITEMS ORDERS – ALTERNATE

II.”

C.2.5. CLIN 0007: SPECIAL STUDIES (OPTION)

The Contractor shall conduct special studies, analysis, and documentation in support of this contract, including but not limited to studies related to improvements in operating efficiencies. Technical Instructions (TI) for this effort shall be authorized by the Contracting Officer or the Contracting Officer Representative (COR) and placed in accordance with the Section H clause “5252.242-9115 TECHNICAL INSTRUCTIONS.” The Contractor shall provide Special Study Report (DI-145) in accordance with each TI conducted.

C.2.6. CLIN 0008: ENGINEERING AND INDUSTRIAL SERVICES (OPTION)

The Contractor shall provide industrial support services and production engineering in support of the cutter(s).

Orders issued under this CLIN shall accomplish, in a timely manner, minor repairs and correct minor deficiencies that are deemed to be the Government's responsibility. Requirements under this CLIN might include, but are not limited to, the correction of problems with Government Furnished Equipment (GFE) or Government Furnished

Materials (GFM), Government requirements identified by Acceptance Trial cards, and the development of various engineering products. Examples of work that might be accomplished under this CLIN include equipment installation, rigging support, and subject matter expert technical assistance. The requirements associated with this

CLIN are over and above those specified in other contract CLINs. Orders for this effort shall be authorized by the

Contracting Officer and placed in accordance with the Section H clause entitled "5252.216-9110 ORDERS (FIXED

PRICE)."

C.2.7. CLIN 0009: CREW FAMILIARIZATION (OPTION)

The Contractor shall assist in the development and presentation of crew familiarization courses when issued an order in accordance with the Section H clause entitled "5252.216-9110 ORDERS (FIXED PRICE). Assistance may include Factory Training services from Original Equipment Manufacturer authorized trainers for major equipment identified in C.3.088; Contractor or Vendor SME assistance in analyzing, designing, developing, and implementing

Crew Familiarization training; and hands-on SME training during construction and warranty periods.

C.2.8. CLIN 0010: DATA RIGHTS (OPTION)

The Contractor shall provide Government Purpose Rights (GPR) or better for those items of Technical Data (TD), Computer Software (CS), and Computer Software Documentation (CSD) that the Contractor has asserted delivery to the Government with less than GPR, but for which the Contractor has provided an option price for the Government to purchase GPR or better in Attachment J-20, Contractor’s Data Rights Exceptions and Associated Pricing.

C.2.8. CLIN 0013, 0014, and 0015: WARRANTY (OPTION)

The Contractor shall correct all contractor responsible defects in accordance with the Section E clause titled "HPIB

Warranty Terms."

PART III: SCOPE OF WORK, DETAIL DESIGN & CONSTRUCTION

C.3.040 Project Management

C.3.040.1 Management Plan (MP). The Contractor shall provide and maintain an event-driven MP for Design and

Construction. [040-1001]

C.3.040.1.1 The Contractor shall develop and maintain a MP which delineates the work effort, establishes significant accomplishments to be completed prior to each event, and describes the criteria for successful completion of each accomplishment.

C.3.040.1.2 The Contractor shall document the management organization and staffing to perform the required subcontractor / vendor coordination, technical performance, engineering, design, procurement, construction, quality assurance, testing, trials, outfitting, delivery and installation of the HPIB

Command, Control, Communications, Computers, Intelligence, Surveillance, and Reconnaissance

(C4ISR) system as a separate section of the MP.

C.3.040.2 Project Manager. The Contractor shall assign a single project manager who is specifically charged with the responsibility to establish, implement and maintain a management system and organization that shall plan, organize, control, and oversee activities relating to this contract. The Contractor shall designate an

HM&E technical lead and a C4ISR technical lead. The project manager shall also function as the primary interface with the Government’s Project Resident Office (PRO).

C.3.040.3 Single Source Integrator (SSI)

C.3.040.3.1 An SSI shall be assigned as the sole point of contact responsible for the propulsion and integrated electric power systems.

C.3.040.3.2 The SSI shall be an organization that has demonstrated successful past performance in the same capacity on projects utilizing integrated propulsion plants of equal or greater complexity.

C.3.040.3.3 Responsibilities of the SSI shall include: design, equipment selection, procurement, documentation, obtaining ABS and regulatory approval, installation, alignment, testing, and integration of propulsion and integrated electric power system components and subsystems.

C.3.040.3.3.1 Components and subsystems include the following as applicable: prime movers, generators, distribution and power quality components including switchboards, transformers, load centers and harmonic filters, propulsion motors and their controllers, cabling, emergency generator sets, shafting, thrust bearing, shaft bearings and seals, couplings (shafting and generator set), propulsors, as well as system controls, software (including source code), alarms, and monitoring.

C.3.040.3.4 The SSI shall determine locations and placement of the propulsion and integrated electric power system components and subsystems to optimize operation and maintenance.

C.3.040.3.5 The SSI shall specify design requirements in accordance with the HPIB Specification for propulsion and integrated electric power system/vessel interfaces and supporting systems including electrical/electronic interfaces (such as signals and alarms), mechanical interfaces (such as foundations, piping), maintenance envelopes, and accessibility.

C.3.040.3.5.1 Components included in the propulsion and integrated electric power system/vessel interfaces are the combustion air inlet ducting, exhaust system piping, seawater cooling, starting system, fuel oil system, and lube oil system.

C.3.040.3.6 The SSI shall coordinate a propulsion system development schedule.

C.3.040.3.7 The SSI shall oversee design efforts, system/equipment construction, performance validation and testing.

C.3.040.3.8 The SSI shall coordinate propulsion and integrated electric power system modeling and simulation efforts throughout the design process.

C.3.040.3.9 The SSI shall review and witness system and component integration through the delivery process to ensure systems/equipment are fully functional, operate effectively, and are appropriately networked.

C.3.040.3.10 The SSI shall resolve any propulsion and integrated electric power system design, installation, or performance issues identified during design, construction, testing, or trials and shall ensure propulsion system performance requirements specified in the HPIB Specification are met.

C.3.040.3.11 The SSI shall coordinate the development of propulsion system technical documentation and logistics documentation.

C.3.040.3.12 The SSI shall certify that the installation of propulsion and integrated electric power system components and subsystems complies with the equipment and component manufacturer’s recommendations.

C.3.040.3.13 The SSI shall provide a propulsion and integrated electric power system representative for the

Warranty period following ship delivery.

C.3.040.3.13.1 The representative shall assist the crew with troubleshooting, calibration, adjustment and repair of the SSI-supplied propulsion and integrated electric power system components and subsystems.

C.3.040.3.13.2 The SSI shall provide a total of 60 days of non-warranty related engineering services for the ship.

The 60 days shall be inclusive of travel time. The Government will submit a request for such services, which may occur at various different time periods throughout the warranty period.

C.3.040.3.13.3 The SSI shall document the field changes and modifications, if any, which are made during the warranty period. Subsequently, the SSI shall update the Technical Manuals and other associated documentation to reflect modifications.

C.3.040.3.14 The SSI shall provide Government Purpose Rights for the software and data.

C.3.040.4 Security Program.

C.3.040.4.1 The Contractor shall provide and implement an HPIB Security Plan. [040-0001]

C.3.040.4.1.1 The HPIB Security Plan shall describe the program, procedures, and controls established in fulfillment of the requirements of DD254 (Attachment J-8).

C.3.040.4.1.2 The HPIB Security Plan shall include a Program Protection Implementation Plan (PPIP) to document its approach to satisfying the requirements of the Program Protection Plan (Attachment

J-9). The PPIP shall be developed in accordance with the HPIB Program Protection Instruction

(Attachment J-10).

C.3.040.4.1.3 The HPIB Security Plan shall describe measures that shall be implemented to satisfy the requirements of the HPIB Cybersecurity Instruction (Attachment J-xx).

C.3.040.4.2 Classified work performed under this contract shall be performed at the Contractor’s facility.

C.3.040.4.2.1 The Contractor shall safeguard government equipment, information and property provided for contractor use. Physical security for facilities shall be obtained at the SECRET clearance level within 60 days after Contract Award and shall be maintained for the life of the contract.

C.3.040.4.2.2 Contractor personnel performing work on Cryptographic Controlled Items (CCI) under this contract shall have a SECRET clearance and shall maintain the level of security required for the life of the contract.

C.3.040.4.3 Subcontract agreements and purchase orders shall flow down requirements for Program Protection, Cybersecurity, and other requirements of the National Industrial Security Program to all subcontractors and vendors.

C.3.040.4.4 Any Contractor information system containing classified information shall be accredited in accordance with the National Industrial Security Program Operating Manual (NISPOM).

C.3.040.5 Management Meetings, Conferences, and Reviews. The Contractor shall conduct HPIB Project and technical meetings, conferences, and reviews.

C.3.040.5.1 Facility Requirements.

C.3.040.5.1.1 The Contractor shall provide facilities to host up to 50 Government representatives.

C.3.040.5.1.2 The Contractor shall provide remote conferencing capability to access the audio, visual, and presentation materials.

C.3.040.5.1.3 The Contractor shall provide room accommodations for splinter sessions to occur in parallel (or overlap) with each other as required by each agenda.

C.3.040.5.2 Preparation and Reporting Requirements [040-1029].

C.3.040.5.2.1 The Contractor shall solicit agenda topics and agenda priority from the Government prior to each meeting, conference, and review, and shall provide presentation material to address agenda topics.

C.3.040.5.2.2 The Contractor shall develop and provide an Action Item List to include, for each action item, a comprehensive description, the organization and individual(s) assigned, the meeting title and date assigned and the assigned completion date. The Contractor shall manage and track progress of action items until the Government agrees the action is complete. The Action Item List shall be updated to include the actual completion date and the disposition of actions, and indicate any supporting documentation.

C.3.040.5.2.3 Following each meeting, conference, and review, the Contractor shall document the final presentation materials and the Action Item List.

C.3.040.5.3 Kickoff Meeting: The Contractor shall conduct a Kickoff meeting within 30 days of contract award to:

C.3.040.5.3.1 Introduce the Management Team including key subcontractors and review the management details and plans for subcontract execution.

C.3.040.5.3.2 Discuss the roles and working relationships between the Contractor and the Government.

C.3.040.5.3.3 Review the contract, technical documents, and required deliverables.

C.3.040.5.3.4 Review the Contractor’s initial Integrated Master Schedule (IMS).

C.3.040.5.3.5 Review the details and execution of other management review requirements.

C.3.040.5.4 Project Management Reviews (PMR): The Contractor shall conduct PMRs at its facility, quarterly beginning at award. The Contractor shall attend each PMR with the appropriate personnel in order to address issues raised by the agenda items.

C.3.040.5.4.1 Each PMR shall address the planned efforts for ship design, ship construction, testing, logistics support, management processes, life cycle support, risk management, LLTM, subcontractor management, procurement schedules, and critical material schedules, and shall include identification and resolution of technical and management issues affecting schedules, cost, and performance.

C.3.040.5.4.2 Each PMR shall include Splinter sessions to address issues on the agenda. The Contractor shall coordinate schedules with the Government to run sessions using multiple rooms at the same facility in parallel to address every splinter session topic in a timely fashion.

C.3.040.5.4.3 Each PMR shall include an Earned Value Management System (EVMS) session to address required contract and subcontract efforts including EVMS using the elements of the Management

Plan. The EVMS session shall be with a limited audience of Government and Contractor business review personnel as part of the PMR and shall present a summary status and trends of the EVMS reporting and root cause analyses of variances and of contract performance trends.

C.3.040.5.4.4 Representatives of ABS and the SSI shall attend the PMRs.

C.3.040.5.4.5 PMRs shall satisfy the General Requirement of Section C of this contract entitled

“SHIPBUILDING PRODUCTION PROGRESS CONFERENCES (SPPC).”

C.3.040.5.5 Design Reviews:

C.3.040.5.5.1 The Contractor shall conduct the following detailed reviews of the design:

C.3.040.5.5.1.1 A review of the Contractor’s initial Allocated Configuration Baseline (ACB) shall be conducted at the first PMR (PMR #1).

C.3.040.5.5.1.2 Preliminary Design Review (PDR) shall be conducted, on the lead ship only, when the design products have matured to enable detail design to begin.

C.3.040.5.5.1.3 Final Critical Design Review (FCDR) shall be conducted when the detail design is sufficiently mature to enable the development of production work packages.

C.3.040.5.5.1.4 Initial Critical Design Review (ICDR) shall be conducted, on the lead ship only, at an intermediate point in the detail design, between PDR and FCDR.

C.3.040.5.5.2 The Design Reviews shall be scheduled by mutual agreement with the Government when the

Entrance Criteria defined in the HPIB Design and Readiness Review Requirements and Criteria document (Attachment J-3) have been or are expected to be completed.

C.3.040.5.5.3 Representatives of ABS and the SSI shall attend the Design Reviews.

C.3.040.5.6 Readiness Reviews:

C.3.040.5.6.1 The Contractor shall conduct Readiness Reviews with the Government in preparation for Start of

Construction, Launch, and Builder’s Trials.

C.3.040.5.6.2 Upon successful completion of each readiness review, the Government will certify that exit criteria have been satisfied. In the event the Government determines that the Contractor has failed to satisfy the exit criteria required for successful completion of any readiness review, within ten days of completion of each readiness review, the Government will provide the Contractor with: 1) formal notice of this determination together with a listing of the specific exit criteria that have not been satisfied and rationale, and 2) direction, if any, as to whether the Contractor is required to modify its work as planned or implement a corrective action to satisfy the specific exit criteria.

C.3.040.5.6.2.1 The minimum entrance and exit criteria for each Readiness Review are established in the

Heavy Polar Icebreaker (HPIB) Design and Readiness Review Requirements and Criteria document (Attachment J-3).

C.3.040.5.6.3 Representatives of ABS and the SSI shall attend the Readiness Reviews.

C.3.040.5.6.4 The Readiness Reviews shall be…