Draft_Solicitation_N00024-19-R-2300.docx

N0002419R2300

DRAFT

Section B - Supplies or Services and Prices

CLIN Number 0100

Detail Design & Construction

FPI

DD&C for FFG(X) Ship #1

See Note A FOB: Origin (Shipping Point)

PURCHASE REQUEST NUMBER: N0002419NR99674

PSC CD: 1905

TARGET COST

TARGET PROFIT

TOTAL TARGET PRICE

CEILING PRICE

SHARE RATIO ABOVE TARGET

SHARE RATIO BELOW TARGET

CLIN Number 0101

CPFF

PDA for FFG(X) Ship #1

See Notes B and D FOB: Origin (Shipping Point)

ESTIMATED COST

FIXED FEE

TOTAL EST COST + FEE

CLIN Number 0102

COST

Material to Support PDA for FFG(X) Ship #1

See Notes B, H, and I FOB: Origin (Shipping Point)

ESTIMATED COST

CLIN Number 0103

COST

Correction of Defects After Limitation of Liability for FFG(X) Ship #1

See Notes B and J FOB: Origin (Shipping Point)

ESTIMATED COST

CLIN Number 0104

Earned Fee for FFG(X) Ship #1

See Notes B and C

NET AMT

CLIN Number 0200

FPI

DD&C for FFG(X) Ship #2

See Notes A and B FOB: Origin (Shipping Point)

TARGET COST

TARGET PROFIT

TOTAL TARGET PRICE

CEILING PRICE

SHARE RATIO ABOVE TARGET

SHARE RATIO BELOW TARGET

CLIN Number 0201

CPFF

PDA for FFG(X) Ship #2

See Notes B and D FOB: Origin (Shipping Point)

ESTIMATED COST

FIXED FEE

TOTAL EST COST + FEE

CLIN Number 0202

COST

Material to Support PDA for FFG(X) Ship #2

See Notes B, H, and I FOB: Origin (Shipping Point)

ESTIMATED COST

CLIN Number 0203

COST

Correction of Defects After Limitation of Liability for FFG(X) Ship #2

See Notes B and J FOB: Origin (Shipping Point)

ESTIMATED COST

CLIN Number 0204

Earned Fee for FFG(X) Ship #2

NET AMT

CLIN Number 0300

FPI

DD&C for FFG(X) Ship #3

See Notes A and B FOB: Origin (Shipping Point)

TARGET COST

TARGET PROFIT

TOTAL TARGET PRICE

CEILING PRICE

SHARE RATIO ABOVE TARGET

SHARE RATIO BELOW TARGET

CLIN Number 0301

CPFF

PDA for FFG(X) Ship #3

See Notes B and D FOB: Origin (Shipping Point)

ESTIMATED COST

FIXED FEE

TOTAL EST COST + FEE

CLIN Number 0302

COST

Material to Support PDA for FFG(X) Ship #3

See Notes B, H, and I FOB: Origin (Shipping Point)

ESTIMATED COST

CLIN Number 0303

COST

Correction of Defects After Limitation of Liability for FFG(X) Ship #3

See Notes B and J FOB: Origin (Shipping Point)

ESTIMATED COST

CLIN Number 0304

Earned Fee for FFG(X) Ship #3

NET AMT

CLIN Number 0400

FPI

DD&C for FFG(X) Ship #4

See Notes A and B FOB: Origin (Shipping Point)

TARGET COST

TARGET PROFIT

TOTAL TARGET PRICE

CEILING PRICE

SHARE RATIO ABOVE TARGET

SHARE RATIO BELOW TARGET

CLIN Number 0401

CPFF

PDA for FFG(X) Ship #4

See Notes B and D FOB: Origin (Shipping Point)

ESTIMATED COST

FIXED FEE

TOTAL EST COST + FEE

CLIN Number 0402

COST

Material to Support PDA for FFG(X) Ship #4

See Notes B, H, and I FOB: Origin (Shipping Point)

ESTIMATED COST

CLIN Number 0403

COST

Correction of Defects After Limitation of Liability for FFG(X) Ship #4

See Notes B and J FOB: Origin (Shipping Point)

ESTIMATED COST

CLIN Number 0404

Earned Fee for FFG(X) Ship #4

NET AMT

CLIN Number 0500

FPI

DD&C for FFG(X) Ship #5

See Notes A and B FOB: Origin (Shipping Point)

TARGET COST

TARGET PROFIT

TOTAL TARGET PRICE

CEILING PRICE

SHARE RATIO ABOVE TARGET

SHARE RATIO BELOW TARGET

CLIN Number 0501

CPFF

PDA for FFG(X) Ship #5

See Notes B and D FOB: Origin (Shipping Point)

ESTIMATED COST

FIXED FEE

TOTAL EST COST + FEE

CLIN Number 0502

COST

Material to Support PDA for FFG(X) Ship #5

See Notes B, H, and I FOB: Origin (Shipping Point)

ESTIMATED COST

CLIN Number 0503

COST

Correction of Defects After Limitation of Liability for FFG(X) Ship #5

See Notes B and J FOB: Origin (Shipping Point)

ESTIMATED COST

CLIN Number 0504

Earned Fee for FFG(X) Ship #5

NET AMT

CLIN Number 0600

FPI

DD&C for FFG(X) Ship #6

See Notes A and B FOB: Origin (Shipping Point)

TARGET COST

TARGET PROFIT

TOTAL TARGET PRICE

CEILING PRICE

SHARE RATIO ABOVE TARGET

SHARE RATIO BELOW TARGET

CLIN Number 0601

CPFF

PDA for FFG(X) Ship #6

See Notes B and D FOB: Origin (Shipping Point)

ESTIMATED COST

FIXED FEE

TOTAL EST COST + FEE

CLIN Number 0602

COST

Material to Support PDA for FFG(X) Ship #6

See Notes B, H, and I FOB: Origin (Shipping Point)

ESTIMATED COST

CLIN Number 0603

COST

Correction of Defects After Limitation of Liability for FFG(X) Ship #6

See Notes B and J FOB: Origin (Shipping Point)

ESTIMATED COST

CLIN Number 0604

Earned Fee for FFG(X) Ship #6

NET AMT

CLIN Number 0700

FPI

DD&C for FFG(X) Ship #7

See Notes A and B FOB: Origin (Shipping Point)

TARGET COST

TARGET PROFIT

TOTAL TARGET PRICE

CEILING PRICE

SHARE RATIO ABOVE TARGET

SHARE RATIO BELOW TARGET

CLIN Number 0701

CPFF

PDA for FFG(X) Ship #7

See Notes B and D FOB: Origin (Shipping Point)

ESTIMATED COST

FIXED FEE

TOTAL EST COST + FEE

CLIN Number 0702

COST

Material to Support PDA for FFG(X) Ship #7

See Notes B, H, and I FOB: Origin (Shipping Point)

ESTIMATED COST

CLIN Number 0703

COST

Correction of Defects After Limitation of Liability for FFG(X) Ship #7

See Notes B and J FOB: Origin (Shipping Point)

ESTIMATED COST

CLIN Number 0704

Earned Fee for FFG(X) Ship #7

NET AMT

CLIN Number 0800

FPI

DD&C for FFG(X) Ship #8

See Notes A and B FOB: Origin (Shipping Point)

TARGET COST

TARGET PROFIT

TOTAL TARGET PRICE

CEILING PRICE

SHARE RATIO ABOVE TARGET

SHARE RATIO BELOW TARGET

CLIN Number 0801

CPFF

PDA for FFG(X) Ship #8

See Notes B and D FOB: Origin (Shipping Point)

ESTIMATED COST

FIXED FEE

TOTAL EST COST + FEE

CLIN Number 0802

COST

Material to Support PDA for FFG(X) Ship #8

See Notes B, H, and I FOB: Origin (Shipping Point)

ESTIMATED COST

CLIN Number 0803

COST

Correction of Defects After Limitation of Liability for FFG(X) Ship #8

See Notes B and J FOB: Origin (Shipping Point)

ESTIMATED COST

CLIN Number 0804

Earned Fee for FFG(X) Ship #8

NET AMT

CLIN Number 0900

FPI

DD&C for FFG(X) Ship #9

See Notes A and B FOB: Origin (Shipping Point)

TARGET COST

TARGET PROFIT

TOTAL TARGET PRICE

CEILING PRICE

SHARE RATIO ABOVE TARGET

SHARE RATIO BELOW TARGET

CLIN Number 0901

CPFF

PDA for FFG(X) Ship #9

See Notes B and D FOB: Origin (Shipping Point)

ESTIMATED COST

FIXED FEE

TOTAL EST COST + FEE

CLIN Number 0902

COST

Material to Support PDA for FFG(X) Ship #9

See Notes B, H, and I FOB: Origin (Shipping Point)

ESTIMATED COST

CLIN Number 0903

COST

Correction of Defects After Limitation of Liability for FFG(X) Ship #9

See Notes B and J FOB: Origin (Shipping Point)

ESTIMATED COST

CLIN Number 0904

Earned Fee for FFG(X) Ship #9

NET AMT

CLIN Number 1000

FPI

DD&C for FFG(X) Ship #10

See Notes A and B FOB: Origin (Shipping Point)

TARGET COST

TARGET PROFIT

TOTAL TARGET PRICE

CEILING PRICE

SHARE RATIO ABOVE TARGET

SHARE RATIO BELOW TARGET

CLIN Number 1001

CPFF

PDA for FFG(X) Ship #10

See Notes B and D FOB: Origin (Shipping Point)

ESTIMATED COST

FIXED FEE

TOTAL EST COST + FEE

CLIN Number 1002

COST

Material to Support PDA for FFG(X) Ship #10

See Notes B, H, and I FOB: Origin (Shipping Point)

ESTIMATED COST

CLIN Number 1003

COST

Correction of Defects After Limitation of Liability for FFG(X) Ship #10

See Notes B and J FOB: Origin (Shipping Point)

ESTIMATED COST

CLIN Number 1004

Earned Fee for FFG(X) Ship #10

NET AMT

CLIN Number 2000

Data

Not Separately Priced

See Contract Data Requirements List (Exhibits A through J)

NET AMT

CLIN Number 2100

FFP

See Note B FOB: Destination

NET AMT

CLIN Number 3020

CPFF

See Notes B, D, E, F, and G FOB: Origin (Shipping Point)

ESTIMATED COST

FIXED FEE

TOTAL EST COST + FEE

CLIN Number 3021

CPFF

See Notes B, D, E, F, and G FOB: Origin (Shipping Point)

ESTIMATED COST

FIXED FEE

TOTAL EST COST + FEE

CLIN Number 3022

CPFF

See Notes B, D, E, F, and G FOB: Origin (Shipping Point)

ESTIMATED COST

FIXED FEE

TOTAL EST COST + FEE

CLIN Number 3023

CPFF

See Notes B, D, E, F, and G FOB: Origin (Shipping Point)

ESTIMATED COST

FIXED FEE

TOTAL EST COST + FEE

CLIN Number 3024

CPFF

See Notes B, D, E, F, and G FOB: Origin (Shipping Point)

ESTIMATED COST

FIXED FEE

TOTAL EST COST + FEE

CLIN Number 3025

CPFF

See Notes B, D, E, F, and G FOB: Origin (Shipping Point)

ESTIMATED COST

FIXED FEE

TOTAL EST COST + FEE

CLIN Number 3026

CPFF

See Notes B, D, E, F, and G FOB: Origin (Shipping Point)

ESTIMATED COST

FIXED FEE

TOTAL EST COST + FEE

CLIN Number 3027

CPFF

See Notes B, D, E, F, and G FOB: Origin (Shipping Point)

ESTIMATED COST

FIXED FEE

TOTAL EST COST + FEE

CLIN Number 3028

CPFF

See Notes B, D, E, F, and G FOB: Origin (Shipping Point)

ESTIMATED COST

FIXED FEE

TOTAL EST COST + FEE

CLIN Number 3029

CPFF

See Notes B, D, E, F, and G FOB: Origin (Shipping Point)

ESTIMATED COST

FIXED FEE

TOTAL EST COST + FEE

CLIN Number 3030

CPFF

See Notes B, D, E, F, and G FOB: Origin (Shipping Point)

ESTIMATED COST

FIXED FEE

TOTAL EST COST + FEE

CLIN Number 3120

COST

Incidental Material and Other Direct Costs Consumed in Support of FY20 Engineering and Class Services

See Notes B, H, and I FOB: Origin (Shipping Point)

ESTIMATED COST

CLIN Number 3121

COST

Incidental Material and Other Direct Costs Consumed in Support of FY21 Engineering and Class Services

See Notes B, H, and I FOB: Origin (Shipping Point)

ESTIMATED COST

CLIN Number 3122

COST

Incidental Material and Other Direct Costs Consumed in Support of FY22 Engineering and Class Services

See Notes B, H, and I FOB: Origin (Shipping Point)

ESTIMATED COST

CLIN Number 3123

COST

Incidental Material and Other Direct Costs Consumed in Support of FY23 Engineering and Class Services

See Notes B, H, and I FOB: Origin (Shipping Point)

ESTIMATED COST

CLIN Number 3124

COST

Incidental Material and Other Direct Costs Consumed in Support of FY24 Engineering and Class Services

See Notes B, H, and I FOB: Origin (Shipping Point)

ESTIMATED COST

CLIN Number 3125

COST

Incidental Material and Other Direct Costs Consumed in Support of FY25 Engineering and Class Services

See Notes B, H, and I FOB: Origin (Shipping Point)

ESTIMATED COST

CLIN Number 3126

COST

Incidental Material and Other Direct Costs Consumed in Support of FY26 Engineering and Class Services

See Notes B, H, and I FOB: Origin (Shipping Point)

ESTIMATED COST

CLIN Number 3127

COST

Incidental Material and Other Direct Costs Consumed in Support of FY27 Engineering and Class Services

See Notes B, H, and I FOB: Origin (Shipping Point)

ESTIMATED COST

CLIN Number 3128

COST

Incidental Material and Other Direct Costs Consumed in Support of FY28 Engineering and Class Services

See Notes B, H, and I FOB: Origin (Shipping Point)

ESTIMATED COST

CLIN Number 3129

COST

Incidental Material and Other Direct Costs Consumed in Support of FY29 Engineering and Class Services

See Notes B, H, and I FOB: Origin (Shipping Point)

ESTIMATED COST

CLIN Number 3130

COST

Incidental Material and Other Direct Costs Consumed in Support of FY30 Engineering and Class Services

See Notes B, H, and I FOB: Origin (Shipping Point)

ESTIMATED COST

CLIN Number 4025

CPFF

See Notes B, D, E, F, and G FOB: Origin (Shipping Point)

ESTIMATED COST

FIXED FEE

TOTAL EST COST + FEE

CLIN Number 4026

CPFF

See Notes B, D, E, F, and G FOB: Origin (Shipping Point)

ESTIMATED COST

FIXED FEE

TOTAL EST COST + FEE

CLIN Number 4027

CPFF

See Notes B, D, E, F, and G FOB: Origin (Shipping Point)

ESTIMATED COST

FIXED FEE

TOTAL EST COST + FEE

CLIN Number 4028

CPFF

See Notes B, D, E, F, and G FOB: Origin (Shipping Point)

ESTIMATED COST

FIXED FEE

TOTAL EST COST + FEE

CLIN Number 4029

CPFF

See Notes B, D, E, F, and G FOB: Origin (Shipping Point)

ESTIMATED COST

FIXED FEE

TOTAL EST COST + FEE

CLIN Number 4030

CPFF

See Notes B, D, E, F, and G FOB: Origin (Shipping Point)

ESTIMATED COST

FIXED FEE

TOTAL EST COST + FEE

CLIN Number 5000

Bridge & Central Control Station Equipment Training Stations

See Note B

NET AMT

CLIN Number 6000

FFP

See Notes B and K

NET AMT

Note A – Incentive Price Revision—Firm Target The final price of this line item will be subject to adjustment per the Section I clause 52.216-16, “Incentive Price Revision—Firm Target – Alternate I,” and the Section B requirement B-216-H002, “Clarifications to the Incentive Price Revision Clause (FAR 52.216-16)—Alternate I.”

CLAUSES INCORPORATED BY FULL TEXT

Note B – Option Item Option item to which the Section I clause 52.217-7, “Option for Increased Quantity – Separately Priced Line Item” or 52.217-9, “Option to Extend the Term of the Contract,” applies and which is to be supplied only if and to the extent said option is exercised.

Note C – Determination of SPECIAL PerformANce Incentive Fee The amount of special performance incentive fee earned will be determined per FFG(X) Special Performance Incentives, Attachment J-33.

Note D – Incremental Funding This line item may be incrementally funded per the Section I clause 52.232-22, Limitation of Funds and the Section H clause 5252.232-9104, Allotment of Funds.

Note E – Level of Effort Labor The Government will issue Technical Instructions (TIs) under this line item per the Section H clause 5252.242-9115, “Technical Instructions.” The Contractor shall not perform any effort under this item until and unless tasked by the Government via TI. The quantity of hours displayed on the line item represents a maximum ceiling number of labor hours, and does not indicate that the Government will necessarily require or task this number of hours during contract performance, or any hours at all.

Note F – Administration of Level Of Effort Line Items

(a) The total contract requirement (i.e., ceiling) for level of effort line items under this contract shall be expressed as a quantity of hours. This ceiling value shall be set forth in the Section H clause “Level off Effort – Alternate I.”

(b) Per the Section B requirement “Payment of Fee(s) (Level of Effort – Alternate I),” fee will be paid on a per hour performed basis. The composite cost, fee, and price rates per hour for each line item are shown in the following table.

[NOTE: TABLE WILL BE COMPLETED AT AWARD BASED ON OFFEROR’S PROPOSAL. The table values will be based on dividing the proposed Section B cost and fee amounts by the associated hours and inserting the result rounded to the nearest penny.]

PER HOUR

NOTE G – SUBCONTRACTOR HOURS

Per the Section H clause “Level of Effort – Alternate I,” the Contractor may fulfill the level-of-effort hours requirement under this line item by delivering subcontractor direct labor hours performed by those subcontractors specifically identified in the Contractor’s proposal as having hours included in the proposed level-of-effort. The Contractor may request approval from the Contracting Officer to deliver hours from subcontractors not identified in the proposal. The Contractor shall detail the technical scope to be performed by the subcontractor(s), the basic details of the subcontract(s) (including cost/price and fee/profit), and any additional information deemed necessary by the Contracting Officer. The Contractor shall not fulfill the level-of-effort hours requirement by delivering any hours incurred by a subcontractor that was not identified in the Contractor’s proposal without express written approval from the Contracting Officer.

Note H – Level of Effort Material and Other Direct Costs This line item provides for material and/or other direct costs associated with performance of a level-of-effort labor line item. The Government will issue Technical Instructions (TIs) under this line item per the Section H clause 5252.242-9115, “Technical Instructions.” The Contractor shall not perform any effort under this item until and unless tasked by the Government via TI. The estimated cost displayed on the line item represents a maximum, not-to-exceed value, and does not necessarily indicate that the Government will task or fund this amount during contract performance, or any amount at all.

Note I – Priced Subline Items For the purposes of contract funding and administration, the Government may unilaterally establish priced alpha SLINs (i.e., deliverable subline items per FAR 4.1004(a)) under this line item.

NOTE J – CORRECTION OF DEFECTS

The Government may exercise and fund this line item on a cost-only (no fee) basis to account for Guaranty costs above the limitation of liability as established in E-246-H005, “Limitation of Contractor’s Liability for Correction of Defects.”

Note K – Provisioned Items Orders Pricing will be set forth on each Provisioned Items Order (PIO). The negotiated profit rate for any PIO under this contract shall not exceed [TO BE COMPLETED AT AWARD BASED ON OFFEROR’S PROPOSAL].

HQ B-2-0007 Limitation Of Cost/Limitation Of Funds (NAVSEA) (Sep 1990) Applicable to Items 0101-0103, 0201-0203, 0301-0303, 0401-0403, 0501-0503, 0601-0603, 0701-0703, 0801-0803, 0901-0903, 1001-1003, 3020-3030, 3120-3130, and 4025-4030 (If options are exercised)

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

B-216-H002 Clarifications to the Incentive Price Revision Clause (FAR 52.216-16)—Alternate I (NAVSEA) (Apr 2018)

(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 by an amount for profit or loss determined as follows:

(i) Subtract the amount determined in accordance with the contract requirement, “Economic Price Adjustments” (EPA) adjustment (positive or negative) to calculate the EPA adjusted total final cost: then:

(ii) Calculate the amount for profit or loss as follows:

CLIN 0100: 30 percent CLIN 0200: 40 percent CLINs 0300,0400, 0500, 0600, 0700, 0800, 0900, and 1000: 50 percent

(iii) The Total Final Price shall be the sum of: (A) the EPA adjusted total final negotiated cost, calculated in accordance with paragraph (i) above, and (B) the amount for profit or loss calculated in accordance with paragraph (ii) above; provided, however, that in no event shall the total final price exceed the Ceiling Price set forth in Section B of the 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)

HQ B-2-0002 Compensation (FI) (NAVSEA) (Jan 1990) (Applicable to Item 0100, and, if options are exercised, Items 0200, 0300, 0400, 0500, 0600, 0700, 0800,0900, and 1000)

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.

HQ B-2-0004 Expediting Contract Closeout (NAVSEA) (Dec 1995)

(a) As part of the negotiated fixed price or total estimated amount of this contract, 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-2-0015 Payment Of Fees(s) (Level of Effort – Alternate I) (NAVSEA) (May 2010) Applicable to Items 0101, 0201, 0301, 0401, 0501, 0601, 0701, 0801, 0901, 1001, 3020-3030, and 4025-4030 (if options are exercised)

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

(b) The Government shall make payments to the Contractor, subject to and in accordance with the clause in this contract entitled "FIXED FEE" (FAR 52.216-8) or "INCENTIVE FEE", (FAR 52.216-10), as applicable. Such payments shall be submitted by and payable to the Contractor pursuant to the clause of this contract entitled "ALLOWABLE COST AND PAYMENT" (FAR 52.216-7), subject to the withholding terms and conditions of the "FIXED FEE" or "INCENTIVE FEE" clause, as applicable, and shall be paid at the hourly rate(s) specified above per man-hour performed and invoiced. Total fee(s) paid to the Contractor shall not exceed the fee amount(s) set forth in this contract. In no event shall the Government be required to pay the Contractor any amount in excess of the funds obligated under this contract.

HQ B-2-0017 Refunds (Spares and Support Equipment) (NAVSEA) (Sep 1990) Applicable to Items 0102, 0202, 0302, 0402, 0502, 0602, 0702, 0802, 0902, 1002, 3120-3130, and 6000 (if options are exercised)

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

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

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

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

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

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

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

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

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

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

HQ B-2-0020 Travel Costs – Alternate I (NAVSEA) (Apr 2015) Applicable to Items 0101-0103, 0201-0203, 0301-0303, 0401-0403, 0501-0503, 0601-0603, 0701-0703, 0801-0803, 0901-0903, 1001-1003, 3020-3030, 3120-3130, and 4025-4030 (if options are exercised)

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

Limitation on the Allowability of Airfare Costs

(a) Per FAR 31.205-46(b), airfare costs in excess of the lowest priced airfare available to the Contractor during normal business hours are unallowable under cost reimburseable line items of this contract except when certain exceptional conditions apply. In order for any airfare costs in excess of the lowest priced airfare to be considered allowable under this contract, the Contractor must request and obtain the written approval of the Procuring Contracting Officer (PCO) per the procedures outlined in this clause.

(b) Prior to conducting proposed travel involving other than the lowest priced airfare available, the Contractor shall submit a request to and obtain written approval from the PCO. As part of the request, the Contractor shall document and justify that at least one of the following conditions apply to the lowest priced airfare:

1) The itinerary requires circuitous routing;

2) The itinerary requires require travel during unreasonable hours;

3) The itinerary would prolong travel excessively;

4) The itinerary would result in increased cost that would offset transportation savings;

5) The itinerary is not reasonably adequate for the physical or medical needs of the traveler; and/or

6) The itinerary is not reasonably available to meet mission requirements.

(c) The request must also address how the proposed alternative airfare itinerary overcomes the exceptional conditions posed by the lowest-priced airfare, as well as whether any of the exceptional conditions apply to the proposed alternative airfare.

(d) If the travel supports an emergent requirement and PCO approval cannot be obtained in advance of the travel, the Contractor may submit the request for approval of the airfare as soon as practicable, but prior to the submission of any associated cost voucher.

(e) In the event that the PCO does not approve airfare costs in excess of the lowest priced airfare, the Contractor may only be reimbursed up to the cost of the lowest priced airfare for the trip.

Section C - Descriptions and Specifications

General Requirements

The Contractor shall complete Detail Design and Construction (DD&C) based on a parent design that has been demonstrated at sea, engineering, ship trials, and testing of Guided Missile Frigate (FFG(X)) ship(s) and shall deliver completed FFG(X) ship(s) in accordance with the requirements of this contract, including all required documents, exhibits, and other attachments listed in Section J. The Contractor shall meet all provisions of the Buy American Act and 10 U.S.C. 2534 with no waivers or exceptions.

Order of Precedence

Per FAR 52.215-8, “Order of Precedence-Uniform Contract Format,” any inconsistency in this contract or a conflict in documents shall be resolved by giving precedence in the following order:

1) Sections A through I of the contract

2) Section J attachments in numerical ordering (e.g., Attachment J-1 takes precedence over Attachment J-2, Attachment J-2 takes precedence over Attachment J-3, etc.)

External Agreements

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.

Government Authority

Only the Procuring Contracting Officer (PCO) and Administrative Contracting Officer (ACO) possess the authority on behalf of the Government to authorize or change work under this contract. No other personnel are authorized by their formal communications or by their course of conduct to commit the Government to price changes, schedule changes, or to direct the performance of different or additional work. The Contractor shall only execute tasking or requests for support under this contract when such direction is authorized by the PCO or the ACO.

Government Approval of FFG(X) Design

The award of this 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 FFG(X) ships that meet the requirements of this contract.

Contractor Responsibilities

The Contractor is solely responsible for the overall engineering, design, procurement, and installation of the ship and any Contractor Furnished Equipment (CFE) systems. The Contractor is solely responsible for any design or production decisions that do not result in a modification to the Contract requirements. The Contractor is solely responsible for all work to other subcontractors and vendors for CFE systems. The Contractor shall fully integrate the effort of Subcontractors and vendors, and provide overall direction and guidance, track progress and status, and integrate products and services provided by Subcontractors and vendors with the products and services provided by the Contractor.

Access to Work Product

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

System of Measure

The Contractor shall use International System of Units (SI) of measurement for design efforts and all documentation, except when specified in the FFG(X) System Specification. Where existing technical documentation, metric equipment or systems do not require modification for any reason other than conversion to SI, conversion of the documentation, equipment or systems need not be accomplished. The units used shall be clearly identified in all documentation.

Use of Software Applications The Contractor shall use the latest versions of AutoCAD, Microsoft Office, and Adobe applications at the time of contract award.

Photographs

The Contractor shall grant authorization for Government representatives to take photographs of the ship on a non-interference basis at the Contractor’s facility during construction and trials. The Contractor shall assign to the Government the copyright to any photographs of FFG(X) ships produced by the Contractor or its subcontractors, with attribution, unless a specific photograph contains proprietary information.

Government Participation and Feedback

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

Meetings

In addition to specific meetings identified herein, the Contractor shall attend and participate in meetings, as needed, to support the efforts under this contract, including design, production, and/or product supportability, or to inform the Government of emergent issues. It is anticipated that most of these meetings will be conducted via telephone with approximately 25% of the meetings held in the Washington, DC area. These meetings shall not interfere with continued design progress or production of the ship. These meetings shall not be used as approval to proceed in design or production. Government participation in any meeting shall not be construed as a change in any contractual requirement.

Security Clearance Requirements

Facility Security Clearance

An active SECRET Facility Clearance (FCL) is required for performance on this contract. The Contractor must maintain a Safeguarding Level of SECRET.

Contractor Personnel

All Contractor personnel accessing classified information or material associated with and/or performing work relative to the contract must be United States citizens and shall have and maintain at a minimum a final SECRET security clearance at time of contract award.

Communication Security Account

The Contractor requires a Communication Security (COMSEC) and a COMSEC account to accommodate the use of secure communications and equipment for Secret Internet Protocol Router Network (SIPRNet) account to receive and transmit classified information electronically.

Access to Controlled Unclassified Information

The Contractor will require access to Controlled Unclassified Information (CUI) (Formerly for Official Use Only Information) with developers and integrators. The Contractor will also receive, store, and generate controlled classified information. The Contractor will be developing a platform design that will meet the classified requirements of the FFG(X) System Specification. Techniques to design these systems, testing of these systems and overall system performance could be classified and the subject to email and written reports. In this capacity, the Contractor will generate and be in receipt of classified material.

Defense Courier Service

The Contractor will require use of the Defense Courier Service (DCS) for the transfer of classified material.

Defense Technical Information Center

The Contractor will require use of the Defense Technical Information Center (DTIC) for applicable documentation.

Operations Security Program Plan

The Contractor shall develop, implement and maintain an Operations Security (OPSEC) Program Plan (CDRL A003) to protect classified and sensitive unclassified activities, information, equipment and material used or developed by the Contractor and any subcontractor during the performance of this Contract. The OPSEC Program shall include physical security and access control that ensures that foreign nationals and others without a need to know and appropriate clearance cannot physically access (or visually observe) or electronically access FFG(X) information and equipment. The Contractor shall be responsible for the subcontractor implementation of the OPSEC requirements of this Contract. All Contractor and subcontractor OPSEC programs shall be in full compliance with the latest version of the National Industrial Security Program Operating Manual (NISPOM). The Contractor shall also follow Contract Security Classification Specification, DD Form 254, Attachment J-1.

Program Protection Implementation Plan

The Contractor shall develop, implement, and maintain a Program Protection Implementation Plan (PPIP) (CDRL A004) to document its approach to satisfying Program Protection requirements. The PPIP shall be developed in accordance with the FFG(X) Program Protection Plan, Attachment J-12.

Flowdown Requirements

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.

Contractor Information Systems Security Requirements

The Contractor shall develop, implement, and maintain a Systems Security Plan (SSP) and Plans of Action (CDRL A006) that discusses the implementation of DFARS 252.204-7012, “Safeguarding Covered Defense Information and Cyber Incident Reporting” and NIST SP 800-171. The Contractor shall deliver all necessary cyber incidents information to Defense Cyber Crime Center within 15 days of a cyber incident (CDRL A007).

The Contractor shall allow the Naval Criminal Investigative Service (NCIS) to install network sensors, owned and maintained by NCIS, on the Contractor’s information systems or information technology assets when intelligence indicates a vulnerability or potential vulnerability. The Contractor shall engage and support NCIS industry outreach efforts and provide recommendations for hardening of Department of Navy (DON) critical programs and technologies.

The Contractor shall segregate DON Controlled Unclassified Information (CUI) from Contractor-owned information when it is cost effective and feasible. Segregation can be implemented through logical isolation, physical isolation, a hybrid approach, or other technological process deemed acceptable by the Program Office to achieve required delivery of comprised data in cyber incidents. Contractor shall audit user privilege on their information network at least annually.

The Contractor shall identify known first tier suppliers/ subcontractors who receive or develop covered defense information. The Contractor shall provide the plan to monitor sharing of covered defense information with first tier suppliers/subcontractors and to ensure the Contractor’s compliance with DFARS 252.204-7012, “Safeguarding Covered Defense Information and Cyber Incident Reporting”, for these suppliers/subcontractors in the SSP (CDRL A006). The Specific SSP Requirements, Encryption of Data at Rest, Cyber Incident Reporting, and Coordination with NCIS requirements in this section shall be included in all subcontracts where the DFARS clause 252.204-7012 is required.

Request for Clarification, Interpretation or Assistance (RICA)

The Contractor shall submit questions, issues, and requests for clarification to the Government by completing Request for Clarification, Interpretation or Assistance (RCIA), Attachment J-34, and uploading the form to the Government Integrated Digital Environment (IDE).

Item 0100 and Items 0200, 0300, 0400, 0500, 0600, 0700, 0800, 0900, and 1000 (Option): DD&C of FFG(X) Ship

The Contractor shall perform DD&C of each FFG(X) ship per the requirements outlined in the following subparagraphs. Performance under each line item shall not be dependent upon the Government exercising any other line item under this or any other contract. Unless explicitly stated otherwise, the requirements set forth herein must be completed for each line item.

Program Management

The Contractor shall develop, implement, and maintain a management plan (MP) (CDRL A005) that delineates the work efforts for FFG(X) design in accordance with the FFG(X) System Specification.