N00024-18-R-2227_23_August_2018.docx

N00024-18-R-2227

R8/23/18

DO-A3

PACKAGING AND MARKING

INSPECTION AND ACCEPTANCE

DELIVERIES OR PERFORMANCE

CONTRACT ADMINISTRATION DATA

SPECIAL CONTRACT REQUIREMENTS

X I

CONTRACT CLAUSES

123-172

PART III – LIST OF DOCUMENTS, EXHIBITS, AND OTHER ATTACHEMENTS

X J

LIST OF ATTACHMENTS

PART IV - REPRESENTATIONS AND INSTRUCTIONS

X K

REPRESENTATIONS, CERTIFICATIONS AND OTHER STATEMENTS OF OFFRORS

174-182 X L

INSTRS., CONDS., AND NOTICES TO OFFERORS

183-204 X M

EVALUATION FACTORS FOR AWARD

205-211

SOLICITATION/CONTRACT FORM

SUPPLIES OR SERVICES AND PRICES/COSTS

2-11

DESCRIPTION/SEPCS/WORK STATEMENT

12-83

PACKAGING AND MARKING

84-86

INSPECTION AND ACCEPTANCE

87-91

DELIVERIES OR PERFORMANCE

92-93

CONTRACT ADMINISTRATION DATA

94-99

SPECIAL CONTRACT REQUIREMENTS

100-122

Section B - Supplies or Services and Prices

CLIN Number 0001

Expeditionary Fast Transport (EPF) 13 Detail Design and Construction (DD&C)

FPI

FOB: Origin See Note B, C, H

TARGET COST

TARGET PROFIT

TOTAL TARGET PRICE

CEILING PRICE

SHARE RATIO ABOVE TARGET

SHARE RATIO BELOW TARGET

CLIN Number 0001AA

EPF 13 Long Lead Material (LLM) and Associated Support

See Notes B, C, H

TARGET COST

TARGET PROFIT

TOTAL TARGET PRICE

CEILING PRICE

SHARE RATIO ABOVE TARGET

SHARE RATIO BELOW TARGET

CLIN Number 0001AB Option

EPF 13 Remaining DD&C

See Notes B, C, D, H

TARGET COST

TARGET PROFIT

TOTAL TARGET PRICE

CEILING PRICE

SHARE RATIO ABOVE TARGET

SHARE RATIO BELOW TARGET

CLIN Number 0002

Data for Item 0001 and 0004 Not Separately Priced (NSP) - price included in CLIN 0001 and 0004. The data to be furnished hereunder shall be prepared in accordance with the Attachment J-3, Data Requirements List, attached hereto.

FOB: Destination

NET AMT

CLIN Number Data Rights

FFP

FOB: Destination

NET AMT

CLIN Number 0004

Expeditionary Fast Transport (EPF) 14 Detail Design and Construction (DD&C)

See Note B, C, D, H, K

TARGET COST

TARGET PROFIT

TOTAL TARGET PRICE

CEILING PRICE

SHARE RATIO ABOVE TARGET

SHARE RATIO BELOW TARGET

CLIN Number 0004AA

EPF 14 Long Lead Material (LLM) and Associated Support

See Notes B, C, D, H, K

TARGET COST

TARGET PROFIT

TOTAL TARGET PRICE

CEILING PRICE

SHARE RATIO ABOVE TARGET

SHARE RATIO BELOW TARGET

CLIN Number 0004AB

EPF 14 Remaining DD&C

See Notes B, C, D, H, K

TARGET COST

TARGET PROFIT

TOTAL TARGET PRICE

CEILING PRICE

SHARE RATIO ABOVE TARGET

SHARE RATIO BELOW TARGET

CLIN Number 0007

NTE

The Government will input Government Estimate at award ($917,431+ propose profit).

Notes D, E, F

FOB: Origin (Shipping Point)

NET AMT

CLIN Number 0037

Additional Government Requirement (AGR) - Labor

NTE

The Government will input Government Estimate at award ($12060,000 + propose profit).

Notes D, E, F

NET AMT

CLIN Number 0038

AGR - Material

The Government will input Government Estimate at award ($1,869,158934,579 + propose profit).

Note D, E ,F

NET AMT

CLIN Number 0039

PIO - Additional Spares, Repair Parts

Provisioned Item Order (PIO) - Additional Spares, Repair Parts, Special Tools, Support and Test Equipment. The Government will input Government Estimate at award ($6,422,0183,211,009 + propose profit).

Note D, E, G

NET AMT

CLIN Number 0040

Special Studies

Special Studies. This CLIN is for labor hours for special studies as required by the Government. The Government will input Government Estimate at award ($1,7500,000 + propose profit).

Note D, E, F

NET AMT

SECTION B NOTES

NOTE A: RESERVED

NOTE B: Applicable to CLIN 0001, SLIN 0001AA and SLIN 0001AB

· The Contracting Officer may unilaterally execute either CLIN 0001 (EPF 13 DD&C and LLM) or SLIN 0001AA (LLM) in accordance with J-23 at contract award.

· If CLIN 0001 (EPF 13 DD&C and LLM) is executed at contract award, SLIN 0001AA and SLIN 0001AB will be removed from the contract award.

· If SLIN 0001AA is executed at contract award, the parties agree that SLIN 0001AB may be exercised as an Option. In the event that Option SLIN 0001AB is exercised, the Contractor agrees that LLM procured and efforts performed under SLIN 0001AA will be considered contractor furnished property for SLIN 0001AB EPF 13 remaining DD&C.

· If SLIN 0001AA is executed at contract award, FAR 52.232-16 Progress Payments for SLIN 0001AA apply and will be unilaterally added to the contract at award.

· If the SLIN 0001AB Option is exercised, SLIN 0001AA and SLIN 0001AB will be subsumed as CLIN 00051 and 5252.232-9105 PAYMENTS (NAVSEA) (BASIC) (MAR 2018) apply for the total remaining value of CLIN 00051 (an adjustment to CLIN 00051 invoicing instruction will be made to the Section B CLIN 00051 description in accordance with progress payments received for SLIN 0001AA at the time of the subsumption).

NOTE C: Applicable to CLIN 0001, SLIN 0001AA and SLIN 0001AB; and CLIN 0004, SLIN 0004AA and SLIN 0004AB

The Incentive will be determined as described in Section I clause “52.216-16 INCENTIVE PRICE REVISION-FIRM TARGET”.

The Offeror’s proposed Target Cost for CLIN 0001 shall be the same as the sum of the Target Cost for SLIN 0001AA and SLIN 0001AB; the Offeror’s Target Cost for CLIN 0004 shall be the same as the sum of the Target Cost for SLIN 0004AA and SLIN 0004AB in accordance with the following Government/Contractor share line and ceiling:

The target profit for CLIN 0001 shall be the same as the sum of target profit for SLIN 0001AA and 0001AB. The profit proposed for CLIN 0001, 0001AA and 0001AB shall be no greater than 14% of the Target Cost. The target profit for CLIN 0004 shall be the same as the sum of target profit for SLIN 0004AA and 0004AB. The profit proposed for CLIN 0004, 0004AA and 0004AB shall be no greater than 14% of the Target Cost.

NOTE D: OPTION NOTE

APPLICABLE TO CLIN(S), IF EXERCISED, 0001AB, 0003, 0004, 0004AA, 0004AB, 0007, 0037, 0038, 0039, 0040

Option items to which the option clauses in SECTION I applies and which is to be supplied only if and to the extent the option is exercised.

NOTE E: Applicable to CLINs, if exercised: 0007, 0037, 0038, 0039, 0040

CLINs 0007, 0037, 0038, 0039, 0040 shall be Firm Fixed Price (FFP). The profit proposed for CLIN 0007 and 00039 shall be no greater than 9%. The profit proposed for CLIN 0037, 0038 and 0040 shall be no greater than 7%. Offerors shall apply proposed profit to the Government Estimate.

*Offerors shall complete this table. Total to be included at contract award.

NOTE F: Applicable to CLINs, if exercised, CLIN 0007, 0037, 0038, 0040- 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 H clause “5252.216-9110 ORDERS (FIXED-PRICE)”. Funding will be provided with each order that is placed.

NOTE G: Applicable to CLIN, if exercised, CLIN 0039 - 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 “C-217-H003 Provisioned Items Orders – Alternate II” . Funding will be provided with each order that is placed.

NOTE H: Applicable to CLIN 0001, SLIN 0001AA and SLIN 0001AB; and CLIN 0004, SLIN 0004AA and SLIN 0004AB

Any contract action, including undefinitized contract actions, awarded in accordance with the "CHANGES" clause that adjusts the Section B target cost shall be subject to a target profit rate not to exceed: 14% for a prospectively priced proposal; 9% for a less than prospectively priced proposal; or 4% for a proposal with all actuals. The term "awarded" is defined as executed via contract modification. A "prospectively priced proposal" is defined as a proposal comprised of all estimated costs and no actual costs. A "less than prospectively priced proposal" is defined as a proposal comprised of a combination of actual and estimated costs. A "proposal with all actuals" is defined as a proposal comprised of all actual costs and no estimated costs.

NOTE J: Applicable to CLIN, if exercised, CLIN 0003- The Offeror shall provide data rights under CLIN 0003 of Section B if required.

Note K: Applicable to CLINs, if exercised, CLIN 0004, SLIN 0004AA and SLIN 0004AB

· The Contracting Officer may unilaterally exercise the option for either CLIN 0004 (EPF 14 DD&C and LLM) or SLIN 0004AA (LLM) in accordance with J-23.

· If the Option for CLIN 0004 (EPF 14 DD&C and LLM) is exercised, SLIN 0004AA and SLIN 0004AB will be removed from the contract.

· If the Option SLIN 0004AA is exercised, the parties agree that SLIN 0004AB may be exercised as an Option. In the event that Option SLIN 0004AB is exercised, the Contractor agrees that LLM procured and efforts performed under SLIN 0004AA will be considered contractor furnished property for SLIN 0004AB EPF 14 remaining DD&C.

· If Option SLIN 0004AA is exercised FAR 52.232-16 Progress Payments for SLIN 0004AA apply and will be unilaterally added to the contract.

· If Option SLIN 0004AB is exercised, SLIN 0004AA and SLIN 0004AB will be subsumed as CLIN 0006 and 5252.232-9105 PAYMENTS (NAVSEA) (BASIC) (MAR 2018) apply for the total remaining value of CLIN 0006 (an adjustment to CLIN 0006 invoicing instruction will be made to the Section B CLIN 0006 description in accordance with progress payments received for SLIN 0004AA at the time of the subsumption).

CLAUSES INCORPORATED BY FULL TEXT

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

(a) As part of the negotiated fixed price or total estimated amount of this contact, both the Government and the Contractor have agreed to waive any entitlement that otherwise might accrue to either party in any residual dollar amount of $500 or less at the time of final contract closeout. The term “residual dollar amount” shall include all money that would otherwise be owed to either party at the end of the contract, except that, amounts connected in any way with taxation, allegations of fraud and/or antitrust violations shall be excluded. For purposes of determining residual dollar amounts, offsets of money owed by one party against money that would otherwise be paid by that party may be considered to the extent permitted by law.

(b) This agreement to waive entitlement to residual dollar amounts has been considered by both parties. It is agreed that the administrative costs for either party associated with collecting such small dollar amounts could exceed the amount to be recovered.

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

(a) In the event that the price of a spare part or item of support equipment delivered under this contract significantly exceeds its intrinsic value, the Contractor agrees to refund the difference. Refunds will only be made for the difference between the intrinsic value of the item at the time an agreement on price was reached and the contract price. Refunds will not be made to recoup the amount of cost decreases that occur over time due to productivity gains (beyond economic purchase quantity considerations) or changes in market conditions.

(b) For purposes of this requirement, the intrinsic value of an item is defined as follows:

(1) If the item is one which is sold or is substantially similar or functionally equivalent to one that is sold in substantial quantities to the general public, intrinsic value is the established catalog or market price, plus the value of any unique requirements, including delivery terms, inspection, packaging, or labeling.

(2) If there is no comparable item sold in substantial quantities to the general public, intrinsic value is defined as the price an individual would expect to pay for the item based upon an economic purchase quantity as defined in FAR 52.207-4, plus the value of any unique requirements, including delivery terms, inspection, packaging or labeling.

(c) At any time up to two years after delivery of a spare part or item of support equipment, the Contracting Officer may notify the Contractor that based on all information available at the time of the notice, the price of the part or item apparently exceeds its intrinsic value.

(d) If notified in accordance with paragraph (c) above, the Contractor agrees to enter into good faith negotiations with the Government to determine if, and in what amount, the Government is entitled to a refund.

(e) If agreement pursuant to paragraph (d) above cannot be reached, and the Navy's return of the new or unused item to the Contractor is practical, the Navy, subject to the Contractor's agreement, may elect to return the item to the Contractor. Upon return of the item to its original point of Government acceptance, the Contractor shall refund in full the price paid. If no agreement pursuant to paragraph (d) above is reached, and return of the item by the Navy is impractical, the Contracting Officer may, with the approval of the Head of the Contracting Activity, issue a Contracting Officer's final decision on the matter, subject to Contractor appeal as provided in the "DISPUTES" clause (FAR 52.233-1).

(f) The Contractor will make refunds, as required under this requirement, in accordance with instructions from the Contracting Officer.

(g) The Contractor shall not be liable for a refund if the Contractor advised the Contracting Officer in a timely manner that the price it would propose for a spare part or item of support equipment exceeded its intrinsic value, and with such advice, specified the estimated proposed price, the estimated intrinsic value and known alternative sources or item, if any, that can meet the requirement.

(h) This requirement does not apply to any spare parts or items of support equipment whose price is determined through adequate price competition. This requirement also does not apply to any spare part or item of support equipment with a unit price in excess of $100,000; or in excess of $25,000 if the Contractor submitted, and certified the currency, accuracy and completeness of, cost or pricing data applicable to the item.

HQ B-2-0002 COMPENSATION (FI) (NAVSEA) (JAN 1990) Applicable CLIN 0001 and CLIN 0004

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.

B-216-H001 CLARIFICATIONS TO THE INCENTIVE PRICE REVISION CLAUSE (FAR 52.216-16)--BASIC (NAVSEA) (APR 2018) Applicable to CLIN 0001 and CLIN 0004

(a) In accordance with the terms of paragraph (e) (1) of the clause entitled “Incentive Price Revision-Firm Target (FAR 52.216-16)”, the parties hereby agree that the amounts determined in accordance with the following contract requirements shall not be considered costs incurred or to be incurred for the purpose of negotiating the total final cost or establishing the total final price:

(i) Any amounts paid or to be paid pursuant to paragraphs (b), (c), and (e) of the contract requirement entitled "InsuranceProperty Loss or DamageLiability to Third Persons".

(ii) Any amounts paid or to be paid pursuant to the contract requirement entitled "Additional Insurance Provisions".

(iii) Any amounts paid or to be paid pursuant to the contract requirement entitled "Indemnification Under Public Law 85804 (FAR 52.2501)" [If authorized for and incorporated into this contract].

(iv) Any other text or clause of this contract which expressly provides for an amount to be reimbursed or paid to the Contractor by the Government or to be refunded or paid by the Contractor to the Government, other than through an adjustment of the contract price.

(b) The Total Final Price shall be established by adjusting the total final negotiated cost determined in paragraph (d) (1) of the Incentive Price Revision–Firm Target clause of this contract.

(c) The Total Final Price of the items referred to above shall be evidenced by a modification to this contract signed by the Contractor and the Contracting Officer. Such price shall not be subject to revision notwithstanding any changes in the cost of performing the contract, with the following exceptions:

(i) insofar as the parties may agree in writing, prior to the determination of the Total Final Price, (A) to exclude any specific elements of cost from the Total Final Price and (B) to a procedure to provide subsequent disposition of such elements; and

(ii) to the extent any adjustment or credit is explicitly permitted or required by this or any other clause of this contract.

(d) The contractor's obligation under this Contract concerning payments and interest penalties are those found in “Payments” clause of this contract.

(End of text)

Section C - Descriptions and Specifications

The Contractor shall complete the Detail Design and Construction (DD&C) of EPF 13 and 14 in accordance with this solicitation and resulting contract, including the Section J attachments.

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 in any way has approved or certified the design provided with the proposal.

The Contracting Officer may unilaterally execute either CLIN 0001 (EPF 13 total DD&C and LLM) or SLIN 0001AA (LLM) at contract award. If SLIN 0001AA is executed at award, the contractor shall complete the scope of work for SLIN 0001AA in accordance with SOW Section C 4.1.2 and Attachment J-23 EPF 13 and 14 LLM (incorporated at award).

The Contracting Officer may unilaterally exercise the Option for either CLIN 0004 (EPF 14 total DD&C and LLM) or SLIN 0004AA (LLM) . If the Option for SLIN 0004AA is exercised, the contractor shall complete the scope of work in accordance with SOW Section C. 4.1.2 and Attachment J-23 EPF 13 and 14 LLM (incorporated at award).

Any reference to the ship applies to the EPF 13 ship and follow ships.

CONTRACT LINE ITEM NUMBER (CLIN) DESCRIPTIONS

CLIN 0001 EPF 13 DD&C

The Contractor shall design and construct EPF 13 in accordance with the requirements of the contract. The Contractor shall procure LLM, conduct required verification, testing, and trials. The Contractor shall deliver EPF 13 complete in all respects, including documentation and certifications, with deficiencies corrected. The Contractor shall ensure that the delivered EPF 13 complies with all applicable laws of the United States and with the regulations/standards of applicable governing regulatory bodies. The Contractor shall deliver the ship in class by the American Bureau of Shipbuilding (ABS).

SLIN 0001AA EPF 13 Long Lead Material (LLM)

The Contractor shall procure LLM required to support the EPF 13 DD&C in accordance with the Statement of Work and J-23 LLM List.

SLIN 0001AB EPF 13 Remaining DD&C (Option)

The Contractor shall design and construct EPF 13 in accordance with the requirements of the contract. The Contractor shall conduct required verification, testing, and trials. LLM procured and efforts performed under SLIN 0001AA will be considered contractor furnished property for SLIN 0001AB EPF 13 remaining DD&C. The Contractor shall deliver EPF 13 complete in all respects, including documentation and certifications, with deficiencies corrected. The Contractor shall ensure that the delivered EPF 13 complies with all applicable laws of the United States and with the regulations/standards of applicable governing regulatory bodies. The Contractor shall deliver the ship in class by the American Bureau of Shipbuilding (ABS).

CLIN 0002 DATA REQUIREMENTS

The data to be furnished hereunder shall be prepared in accordance with Attachment J-3, attached hereto.

CLIN 0003 DATA RIGHTS (OPTION)

The Contractor shall provide data rights if required.

CLIN 0004 EPF 14 DD&C (Option)

The Contractor shall design and construct EPF 14 in accordance with the requirements of the contract. The Contractor shall procure LLM, conduct required verification, testing, and trials. The Contractor shall deliver EPF 14 complete in all respects, including documentation and certifications, with deficiencies corrected. The Contractor shall ensure that the delivered EPF 14 complies with all applicable laws of the United States and with the regulations/standards of applicable governing regulatory bodies. The Contractor shall deliver the ship in class by the American Bureau of Shipbuilding (ABS).

SLIN 0004AA EPF 14 Long Lead Material (LLM) (Option)

The Contractor shall procure LLM required to support the EPF 14 DD&C in accordance with the Statement of Work and J-23 LLM List.

SLIN 0004AB EPF 14 Remaining DD&C (Option)

The Contractor shall design and construct EPF 14 in accordance with the requirements of the contract. The Contractor shall conduct required verification, testing, and trials. LLM procured and efforts performed under SLIN 0004AA will be considered contractor furnished property for SLIN 0004AB EPF 14 remaining DD&C. The Contractor shall deliver EPF 14 complete in all respects, including documentation and certifications, with deficiencies corrected. The Contractor shall ensure that the delivered EPF 14 complies with all applicable laws of the United States and with the regulations/standards of applicable governing regulatory bodies. The Contractor shall deliver the ship in class by the American Bureau of Shipbuilding (ABS).

CLIN 0007 SHORE BASED SPARES (OPTION)

The contractor shall provide Shore Based Spares in support of EPF 13 and 14. Orders for this effort will be placed in accordance with the general requirements in Section H of this Contract entitled “5252.216-9110 ORDERS (FIXED-PRICE)”.

CLIN 0037 ADDITIONAL GOVERNMENT REQUIREMENTS (AGR) – LABOR (OPTION)

The contractor shall provide AGR Labor in support of EPF 13and 14. Orders for this effort will be placed in accordance with Section H “5252.216-9110 ORDERS (FIXED-PRICE)”.

CLIN 0038 ADDITIONAL GOVERNMENT REQUIREMENTS (AGR) – MATERIAL (OPTION)

The contractor shall provide AGR Material in support of EPF 13 and 14. Orders for this effort will be placed in accordance with Section H “5252.216-9110 ORDERS (FIXED-PRICE)”.

CLIN 0039 PIO ADDITIONAL SPARES (OPTION)

The Contractor shall provide 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 “C-217-H003 PROVISIONED ITEMS ORDERS – ALTERNATE II.”.

CLIN 0040 SPECIAL STUDIES (OPTION)

The contractor shall support Special Studies in support of EPF 13 and 14. Orders for this effort will be placed in accordance with Section H “5252.216-9110 ORDERS (FIXED-PRICE)”.

SECTION C – DESCRIPTIONS/SPECIFICATIONS/WORK STATEMENT

C 1. GENERAL SCOPE OF WORK

(Applicable to CLIN 0001 and CLIN 0004) This Statement of Work (SOW) defines the effort required for the design development and construction of Expeditionary Fast Transport (EPF) Hull 13 and 14. EPF 13 and 14 is separate procurement for the EPF Class. EPF was previously known as the Joint High Speed Vessel (JHSV) program, and some references still carry this prior designation. EPF ships are crewed, operated and maintained by civilian mariners under the command of the Military Sealift Command (MSC). The EPF 13 and 14 shall use, to the maximum extent possible, similar or equal Hull, Mechanical and Electrical (HM&E), systems currently in MSC’s inventory, to minimize training, operation and sustainment costs.

While military features will be integrated into a commercial based design, Naval Vessel Rules (NVR) are not invoked for any part of this contract.

The vessel will be classed by American Bureau of Shipping (ABS). The standard for construction of the ship is High Speed Naval Craft (HSNC) Code and other commercial standards as specified in this contract except where specifically stated for military aspects of the ship (for example, the flight deck). EPF 13 and 14 shall be built to meet 2018 ABS High-Speed Naval Craft (HSNC) rules. Contractors that have previously classed an EPF or similar vessel to an earlier ABS HSNC rule set may obtain ABS HSNC approval to class EPF 13 and 14 to that same rule set in lieu of classing EPF 13 and 14 to HSNC 2018. The Performance Specification (PSPEC), Attachment J-1, stipulates the minimum design requirements for the vessel(s). The Certification Matrix, Attachment J-6, outlines the verification or certification responsibilities for each area of the vessel.

The vessel shall comply with the provisions of subsection (a) of 10 U.S.C. 2534 regarding domestic source limitations on certain items. These domestic limitations apply to air circuit breakers, welded shipboard anchor and mooring chain with a diameter of 4 inches or less, and the following items to the extent they are unique to marine applications: gyrocompasses, electronic navigation charts systems, steering controls, pumps, propulsion and machinery control systems, and totally enclosed lifeboats.

The Contractor shall perform the design, construction, outfit, test, trials and delivery of EPF 13 and 14 at the Contractor’s facilities in accordance with

(a) The provisions in this solicitation or contract;

(b) Performance Specification, Attachment J-1;

(c) Other documents, exhibits, and attachments listed in SECTION J of this contract

The Contractor shall prepare documentation in accordance with this SOW, Attachment J-1 Performance Specification, and Attachment J-3 Deliverable Requirement List (DRL).

The Contractor shall provide the management effort necessary to ensure the on-schedule completion of the design and construction. The Contractor shall identify and maintain visibility of all problems and potential problems arising during contract performance which could impact the on-schedule completion of the EPF 13 and 14.

The Contractor shall prepare the design, perform system integration, construct, test, and deliver the ship and initial logistics support of the EPF 13 and 14. Reduced ownership cost shall be emphasized throughout the performance of this Contract.

Any reference to the ship applies to the EPF 13 and 14 ship.

The Contractor shall provide the material, services and equipment required for the design, system integration, construction, testing, and support of the vessel as Contractor Acquired Property (CAP), except for those items specifically designated by the Government as Government Furnished Property (GFP), which includes Government Furnished Equipment (GFE), Government Furnished Material (GFM) and Government Furnished Information (GFI).

The Contractor shall provide the management effort necessary to ensure effective cost, schedule and technical performance under this Contract. The Contractor shall manage the program in accordance with Contract requirements, the management plan(s), and work schedule(s). The Contractor shall fully integrate subcontractors and vendors to 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.

The metric system of measurement (System Internationale (SI)) shall be used for new design efforts and documentation, except where necessary to interface with existing inch-pound equipment or systems. Where existing technical documentation for inch-pound equipment or systems does not require modification for any reason other than conversion to the metric system, conversion of the documentation to the metric system need not be accomplished.

The Contractor is fully responsible for delivering a ship which meets the requirements of this contract. Any shortfalls in the initial design effort or during construction shall be corrected by the Contractor, with any additional costs shared with the Government up to the ceiling price in accordance with the contract.

C 1.1 Definitions Drawing – An engineering drawing is a graphical representation of a fully and clearly defined set of requirements for engineered items. It is created in accordance with standardized conventions for layout, nomenclature, interpretation, appearance (such as typefaces and line styles), size, etc. Engineering drawings conform to American Society of Mechanical Engineers (ASME) standards Y14.100, Y14.24, Y14.34M and Y14.35. Engineering drawings also include revision blocks, approval signature block, and issue dates block and maintain control of its configuration by documenting all the changes.

Sketch – A sketch is either 2D or a 3D representation of the complete design, or a section of the design, or to illustrate a functional aspect of the design. It is generally drawn to scale. A sketch may be changed or updated at any point to reflect the evolving design. Initial issue and subsequent revision dates are noted on sketches.

Diagram – A diagram is a schematic representation of a design, used to convey general concepts or system layouts, and show the relative location of fittings, branches and equipment in distributive systems. It is not drawn to scale or depict actual size or shape of the components. Initial issue and subsequent revision dates are always noted on diagrams to distinguish between various revisions.

Tradeoff Study – A trade-off study is conducted to objectively compare multiple design alternatives to one another. Tradeoff studies clearly define evaluation and selection criteria.

Calculation – A calculation is conducted to prove an established scientific theory. Calculations identify all variables and assumptions used, and fully detail the conclusions and their impact on the design. Explanations are provided for calculation methods selected. Calculations provided in an Excel Spreadsheet format are supported by the formulas used.

Report – A report is written to document an analysis, or present the findings of an investigation, or support the rationale for a conclusion or make a set of recommendations. Reports are supported by calculations, drawings, sketches, diagrams, and tradeoff studies. Reports include, at a minimum, sections addressing the purpose of the study, assumptions, discussions and conclusions.

Critical Equipment – Defined as equipment that is integral to propulsion and electrical generation, mission gear, such as cranes, ramps, Heating Ventilation and Air Conditioning (HVAC), and Commercial Electronic Navigation (CEN) system deemed critical in the conduct of the ship’s mission. Critical equipment has major impacts on the operational, training and maintenance cost for the ship.

The Contractor shall apply a multi-functional approach to the integrated, concurrent development of the products and the associated processes applicable to the design, ship systems integration, construction, testing, and logistics support and in the performance of all other efforts required by this Contract.

The Contractor shall provide the management effort necessary to ensure effective cost, schedule and technical performance under this Contract. The Contractor shall manage the program in accordance with Contract requirements, the management plan(s), and work schedule(s) (Attachment J-3, B001, and B002). The Contractor shall fully integrate major subcontractors and vendors to provide overall direction and guidance, track progress and status, and integrate products and services provided by major subcontractors and vendors’ with the products and services provided by the Contractor.

The Contractor shall identify problems and potential problems that could adversely impact ship performance, cost and/or delivery schedule accompanied by proposed solutions in accordance with the General Requirement of SECTION C of this contract entitled “CONTRACTOR PROBLEM IDENTIFICATION REPORTS” and in accordance with Attachment J-3, B094.

C 1.2.2 Management Plans The Contractor shall maintain an event-driven integrated management plan or separate management plans that document the significant accomplishments required in the performance of this Contract. The integrated management plan(s) shall provide the Contractor’s integrated approach for detail design, ship systems integration, and construction; testing, delivery and logistics support for the EPF 13 and 14 ships. The plan(s) shall describe all new processes developed exclusively to meet the requirements of this Contract and accordance with Attachment J-3, B001. The plan(s) shall include, but not be limited to the following:

a. Contract Milestones and Key Events

b. Integrated Data Environment (IDE) Implementation

c. Subcontractor Management

d. Detail Design

e. Total Ship Integration

f. Production

g. Test and Evaluation

h. Integrated Logistics Support

i. Configuration Management

j. Ship Survivability

k. Reliability, Maintainability and Availability

l. Quality Assurance and Corrective Action Program

m. Human Engineering and System Safety

n. Environmental Protection and Hazardous Material Management

o. Operational Security

p. Software Development, Quality, and Process Improvement

q. Material Procurement

r. Risk Management

s. Requirements Management

t. Standardization

The management plan(s) shall include how the Contractor’s program planning and implementation of that planning will manage concurrent and interactive efforts of all program disciplines affecting the EPF detail design, ship systems integration, construction, testing, and logistics support processes. The plan(s) shall address how these processes will be validated.

C 1.2.3 Schedules The Contractor shall prepare an event-based integrated work schedule or separate work schedules that depict all activities required for the performance of this Contract, and in accordance with Attachment J-3, B002. The schedule(s) shall include all program activities defined in the Contractor Work Breakdown Structure (CWBS) addressed below. The Contractor shall identify key events leading up to the Contract Milestones in the schedule(s) and shall identify critical paths for completion of each Contract Milestone and key event.

The schedule(s) shall be kept current with schedule modifications and completed tasks.

The Contractor shall provide and maintain the following schedules:

Master Schedule – Schedule shall include key events, milestones and activities from contract award through delivery of the ship. This schedule shall include design, procurement, construction, and testing key events for the vessel (such as start of construction, keel laying, ship launch, and Builder’s and Acceptance trials).

The schedule(s) above shall incorporate the reports and event shown below at a minimum.

a. Integrated Data Environment Development

b. Contract Milestones and Key Events

c. Detail Design and Total Ship Systems Integration Development

d. Engineering Drawing

e. Design Reviews

f. Quarterly Shipbuilding Production Progress Reviews (SPPC)

g. Master Production

h. Material Ordering

i. GFE Exception Report

j. Compartment Close-Out

k. Integrated Logistics Support

l. Long Lead Material Ordering

m. Requirements Verification (Test and Evaluation)

n. GFE/GFI Delivery

o. Ship Delivery

p. Hardware and Software Development

q. Outfitting

r. Preventive Maintenance Schedule.

s. Final Contract Trials (FCT) C 1.2.4 Contract Work Breakdown Structure (CWBS) The Contractor shall develop, extend, update and maintain a Government approved CWBS providing clear traceability of all work. The Contractor shall prepare the CWBS in accordance with the requirements in Attachment J-3, B091. The CWBS shall provide visibility of all work performed by the Contractor and each major subcontractor/vendor. The CWBS shall be used as the basis for organizing and reporting all work performed under this contract. The Contractor shall not change the approved CWBS, dictionary, or reporting elements without prior written approval by the Government.

C 1.2.5 Earned Value Management System (EVMS) In the performance of this contract, the Contractor shall establish, maintain and use an Earned Value Management System (EVMS) meeting the criteria set forth in DFARS 252. 234-7002, "EARNED VALUE MANAGEMENT SYSTEM (DEVIATION 2015-O0017) (SEPT 2015)." The Contractor shall utilize their EVMS as a management tool for cost, schedule and technical performance. All aspects of the scope of work shall be included in the EVMS.

If the Contractor does not have a DOD validated EVMS, the Contractor shall be prepared to support an EVMS review no later than ninety (90) calendar days after contract award.

An Integrated Baseline Review (IBR) will be conducted within one hundred eighty (180) days of contract award. If the Government determines that it is necessary, additional IBRs and Government oversight will be conducted as appropriate.

The Contractor shall provide Integrated Program Management Reports (IPMR) on a monthly basis beginning ninety (90) days after contract award. Hourly rates for production shall be provided as well as dollars presented at the unburdened rate. IPMRs shall be in accordance with Attachment J-3, B003.

The Contractor shall provide the Certified Statement of Costs Incurred in accordance with Attachment J-3, B004. Additionally, the contractor shall provide a Monthly Statement of Costs Incurred for Warranty in accordance with Attachment J-3, B102.

C 1.2.6 Risk Management The contractor shall establish a risk management program and prepare a Risk Management Plan in accordance with Attachment J-3, B006 which shall identify potential cost, schedule, and technical issues through ship delivery. Program risks will be assessed at SPPCs. Contractor shall prepare Risk Management Reports in accordance with Attachment J-3, B007.

C 1.2.7 Quality Metrics Processes or indicators (internal design changes, production rework, etc.) to be monitored and reported shall be agreed to by the Program Office and shall be identified in the management plan(s), Attachment J-3, B001. Quality Control labor hours and costs shall be reported as part of Attachment J-3, B093) C 1.2.8 Corrective Action The Contractor shall implement a unified corrective action process that integrates the quality metrics. It shall address all areas (detail design, ship system integration, construction, testing, and logistics support) of Contract performance. Corrective action shall include evaluation of the root cause and subsequent process change to prevent reoccurrence. Corrective actions shall be reported as part of the Integrated Program Management Reports (Attachment J-3, B003).

The Contractor shall respond to Government issued corrective action requests within thirty (30) calendar days of receipt. Safety related issues shall be resolved within seven (7) calendar days of receipt. The Contractor shall include in its response to Government reported deficiencies, the date by which corrective action shall be initiated, the date by which corrective action shall be completed, and the date corrective action was completed.

C 1.2.9 Purchase Orders and Subcontracts A purchase order index shall be prepared, maintained current and submitted to the Government available for Government review at all times in accordance with Attachment J-3, B013. In addition, the Contractor shall submit copies of all purchase orders in accordance with Attachment J-3, B014.

C 1.2.10 Total Ship Integration The Contractor shall be responsible for managing all total ship integration efforts. Through concurrent engineering practices, the Contractor shall provide an incremental detail design, ship systems integration, construction, testing and logistics approach to fulfill total ship functional requirements. Total ship system integration shall be performed as an integral part of the detail design process (Attachment J-3, B015, B016, B020, and B022).

The Contractor shall manage, control, and document the configuration of the ship design, including hull lines, compartmentation, arrangements, structure, systems, and equipment data.

The Contractor shall provide the Government with access to all detail design drawings (working drawings, specifications, bill of materials, and any other technical data that is part of the detail design).

The Contractor shall develop a detail design for the construction of the EPF ship that meets all the requirements in this contract, with emphasis upon producibility and reduced life cycle cost. Life Cycle Costs Estimate and Trades shall be documented in accordance with Attachment J-3, B009 and B010 respectively.

C 1.2.11 Systems Engineering The Contractor shall prepare a Systems Engineering Plan (SEP) detailing the Contractor’s approach to implementing systems engineering to manage the design and construction of the EPF ships in accordance with Attachment J-3, B023. At a minimum, the plan shall describe the following:

· Requirements management process to ensure compliance with contract requirements

· Design, engineering, and production efforts to be used to produce the ship

· Technical baseline management and control

· Integration and overall management control

· Contractor and subcontractor organizational structures that will be used to implement the overall systems engineering approach, including the level of responsibility and authority and the methodology for integrating the Contractor’s efforts with Government and sub-contractor C 1.2.12 Single System Vendor (SSV) A Single System Vendor (SSV) shall manage the design and integration of the propulsion and powering systems and their control. The SSV, if other than the principal designer, shall be experienced in the design of marine main propulsion plants and controls. The SSV shall be identified and provided in accordance with the requirements herein. The SSV shall be responsible for the overall engineering, design, procurement, integration, including prime mover/ride control vendor equipment integration, regulatory body approval and testing of the main propulsion machinery plant/ride control devices, including, but not limited to:

· Main propulsion engines and controls

· Diesel generator sets, emergency generator sets, and controls

· Propulsion, ship service, and emergency switchboards, Load Centers and transformers

· Centralized machinery control system

The SSV shall be responsible for, and certify that, the system design of the diesel generator sets, emergency generator sets, main propulsion engines, ride controls (if provided) and sensor interfaces, taking into account the electrical characteristics of the equipment, can be fully integrated into the machinery and ship control systems and that the system design meets the requirements of this contract.

The Government shall be invited and notified in advance to witness ABS factory acceptance testing of various SSV responsible equipment in accordance with attachment J-3. The Contractor shall provide a system representative for the guaranty period following ship delivery from the shipyard to assist the crew with Troubleshooting/Calibration/Adjustment and repair of the ship systems. The Contractor shall document field changes and modifications made during this period. Technical Manuals and other documentation shall be updated to reflect modifications. The Contractor shall prepare the SSV Test Procedures and SSV Factory Acceptance Test (FAT) Reports in accordance with Attachment J-3, B024, B026, B027, B028 and B029.

C 1.2.13 Cyber Security Information Technology (IT), is both the hardware and software, that is physically part of, dedicated to, or essential in real time to ship mission performance. IT is defined as any equipment or interconnected system or subsystem of equipment that is used in the automatic acquisition, storage, manipulation, management, movement, control, display, switching, interchange, transmission, or reception of data or information. Control systems include all hardware and software included in machinery control systems, bridge systems, navigation systems, dynamic positioning systems, and exterior communication systems. To ensure mission success, the Contractor shall perform cybersecurity risk management, in accordance with DODINST 8500.01 of 14 March 2014, to protect and mitigate risks to Information Technology associated with Contractor-furnished control and network systems.

Details of IT risk mitigation and protection efforts shall be documented, as appropriate, in the following Attachment J-3:

A Post Award Conference shall be conducted with the Government within 15 days of award. The Government shall prepare the agenda. The Contractor shall prepare minutes of the Post Award Conference, and provide copies of all information presented in accordance with Attachment J-3, B012. The Conference shall be held at the Contractor’s facility or, at the Government’s option, the reviews may be held at a Government facility or via Video-Teleconference. Representatives from each firm on the Contractor's team shall attend.

The purpose of the Conference is as follows:

· Review the portions of the Contractor’s proposal and design incorporated into the contract award against the Contract and Technical requirements.

· Discuss the roles and working relationships between the Contractor and the Government.

· Discuss the Contractor's planned management effort and requirements verification process.

· Review the schedule for Design Reviews and subsequent Production Progress and Readiness Reviews.

· Review Model Test Program Requirements, Plans and/or Results, if applicable.

· Review plans for regulatory review and approval of hull design and operational limits.

C 1.4 Design and Program Reviews EPF 13 and 14 is a follow-on procurement for the EPF Class. EPF 13 and 14 shall be similar in design, operation and outfitting to other ships in the class to the maximum extent possible. While the hull form and hull construction materials may be different, HM&E systems shall be similar or equal, where feasible, to mitigate training and life cycle support costs. The design entry point for EPF 13 and 14 is a design, which can be scaled and modified to support the mission, and performance requirements defined in attachment J-1. The Post Award Conference shall serve as the first of several design reviews, if required, for the Government to review and evaluate the proposed design and assess the scope of engineering and scheduling necessary to modify the proposed design to meet the requirements of attachment J-1.

The Contractor shall schedule and conduct design reviews, dependent on design maturity, per their management plan, in accordance with Attachment J-3, B001 and B002 to demonstrate contract compliance: An Initial Critical Design Review (ICDR) and a Final Critical Design Review (FCDR) will be required unless the Government determines that the maturity of the design at contract award does not require either or both reviews. All design reviews shall be held at the Contractor’s facility or, at the Government’s option, the reviews may be held at a Government facility or via Video-Teleconference. Representatives from each firm on the Contractor’s team shall attend. The Contractor shall provide agendas and minutes of each meeting, including copies of all information presented in accordance with Attachment J-3, B011 and B012.

Design review(s), if needed, shall provide and present a complete and thorough review of the design and demonstrate its ability to meet the Contract performance requirements. Each design review shall cover, but not be limited to the following:

· Detailed status of the evolving design.

· Efforts accomplished by subcontractors, especially the Single Source Vendor (SSV) responsible for propulsion integration, controls, and automation.

· Assumptions and/or interpretations made based on requirements wording, defined technical requirements, and regulatory body requirements, which form the basis for the design.

· Primary design drivers, constraints and other issues that are influencing the ship design.

· Inconsistencies, errors, and conflicts, if any, in the requirements.

· Technical analysis and tradeoff studies and resulting derived design details.

· Ordnance Stowage and Armament Stowage Drawing C 1.4.1 Design Review Design Review(s), if required, shall be held for the purpose of assessing design maturity prior to development of production information. The contractor will propose the timeframe for these reviews. The exit criteria for the FCDR will be that the Government is satisfied that there are no areas of the shipbuilder's ship design for which moving into the development of production information would be premature, or where there is a significant potential for rework due to future design decisions.