N00024-19-R-2300-0002.docx

N0002419R2300

SECTION SF 30 BLOCK 14 CONTINUATION PAGE

The following items are applicable to this modification:

The purposes of this amendment to solicitation N00024-19-R-2300 are as follows:

1) Update Section B Note B to provide for a process by which ship option pricing may be adjusted in the event that two consecutive ship options expire without being exercised by the Government;

2) Update the Section C Statement of Work to clarify the requirements;

3) Incorporate updated versions of Exhbit B and Exhbit F;

4) Incorporate an updated version of the FFG(X) System Specification, Attachment J-3, with revised Sections 073, 083, 184, and 555;

5) Incorporate updated versions of Schedule A, Attachment J-4; Schedule C, Attachment J-6; FFG(X) Test Stages, Attachment J-17; Naval Communications System Turnkey Approach, Attachment J-22; and FFG(X) Performance Incentive Fee Plan, Attachment J-33, to address feedback from prospective offerors;

6) Incorporate updated versions of Schedule B, Attachment J-5; Schedule D, Attachment J-7; and Schedule E, Attachment J-8, to specify the applicable variant of the MK 41 Vertical Launching System;

7) Incorporate updated versions of the Technical Data Package List, Attachment J-35, and Government Data Deliverables List, Attachment L-6, to include information for newly added Exhbit B CDRL items;

8) Incorporate an updated version of the Contract Pricing Tables, Attachment L-3, to correct erroneous line item numbering; and

9) Update Section L to clarify the instructions to offerors.

Accordingly, the solicitation is amended as follows:

SUMMARY OF CHANGES

SECTION B - SUPPLIES OR SERVICES AND PRICES

The following have been modified:

Note B – FFG(X) Ship Options

(a) Options for FFG(X) Ships #2 through #10 under this contract shall be exercised, if at all, in ascending numerical order (i.e., 0200, 0300, 0400, 0500, 0600, 0700, 0800, 0900, 1000) starting from the first available unexpired option. An available unexpired option is defined as an option that has not previously been exercised, and which has not yet expired per the latest option exercise date set forth in the Section I clause FAR 52.217-7.

(b) The expiration of a ship option shall not invalidate the remaining unexpired options. However, in the event that the Government fails to exercise two consecutive options prior to the applicable latest option exercise dates, the price of each remaining unexpired option shall be adjusted such that the price (i.e., target cost, target profit, and ceiling price) of the first available unexpired option is revised to the price from the first of the two consecutive expired options, the price of the second available unexpired option is revised to the price from the second of the consecutive expired options, the price of the third available unexpired option is revised to the price from the first unexpired option, and so on and so forth. For example, if Items 0400 and 0500 expire, the price of Item 0600 will be revised to the price from Item 0400, the price of Item 0700 will be revised to the price from Item 0500, the price of Item 0800 will be revised to the price from Item 0600, the price of Item 0900 will be revised to the price from Item 0700, and the price of Item 1000 will be revised to the price from Item 0800.

(c) The 60/40 over target share ratio specified for Ship #2 (Item 0200) shall apply to the second ship ordered (i.e., first ship option exercised) under this contract, regardless of whether that ship corresponds to Item 0200 or a subsequent ship option. For example, if Item 0200 is not exercised, but Item 0300 is exercised, Item 0300 will adopt the 60/40 over target share ratio.

SECTION C - DESCRIPTIONS AND SPECIFICATIONS

The following have been modified:

Statement of Work

General Requirements

The Contractor shall furnish the supplies and services specified in Section B of this contract in accordance with this statement of work and all other requirements set forth in the 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 this 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, 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.

System of Measure

The Contractor shall use International System of Units (SI) of measurement for design efforts and all documentation, except when specified otherwise 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 current and supported version of AutoCAD, Microsoft Office, OPUS Suite, and Adobe applications.

Photographs

The Contractor shall grant authorization for Government representatives to take photographs of the FFG(X) ship(s) 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) ship(s) 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.

Security Clearance Requirements

In performing under this contract, the Contractor shall comply with all requirements of the Contract Security Classification Specification , DD Form 254, Attachment J-1.

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 classified work relative to the contract must be United States citizens and shall have and maintain at a minimum a final SECRET security clearance.

Communication Security Account

The Contractor requires Communication Security (COMSEC) equipment 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 and Classified 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. In this capacity, the Contractor will generate and be in receipt of classified material.

Defense Courier Service (DCS)

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

Defense Technical Information Center (DTIC)

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 controlled 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 subcontractor implementation of the OPSEC requirements of this contract. Prior to proceeding with implementation of subcontractor OPSEC requirements, the Contractor shall obtain written approval from the Government as required in Block 14 of the Contract Security Classification Specification, DD Form 254, Attachment J-1. All Contractor and subcontractor OPSEC programs shall be in full compliance with the latest version of the National Industrial Security Program Operating Manual (NISPOM).

Program Protection Implementation Plan (PPIP)

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-11. The Contractor shall use the definitions of criticality levels as identified below:

· Level I (Catastrophic) Protection Failure – a failure that results in total compromise of mission capability which may cause unintended loss of system

· Level II (Critical) Protection Failure – a failure that results in unacceptable compromise of mission capability or significant mission degradation which may cause significant system damage

· Level III (Marginal) Protection Failure – a failure that results in partial compromise of mission capability or partial mission degradation

· Level IV (Negligible) Protection Failure – a failure that results in little or no compromise of mission capability

Contractor Information Systems Security Requirements

The Contractor shall implement the security requirements specified in this contract, including those set forth in the clause under Section I of this contract entitled DFARS 252.204-7012, “Safeguarding Covered Defense Information and Cyber Incident Reporting,” and National Institute of Standards and Technology (NIST) Special Publication 800-171.

System Security Plan

The Contractor shall develop, implement, and maintain a System Security Plan (SSP) and Plans of Action and Milestones (CDRL A006) that implements the security requirements of DFARS 252.204-7012, “Safeguarding Covered Defense Information and Cyber Incident Reporting” and NIST SP 800-171. The SSP shall implement, at a minimum, all security requirements contained in NIST SP 800-171 (Revision 1) standards 3.1 through 3.14; or provide documentary evidence that any unimplemented security requirements have been adjudicated by an authorized representative of the Department of Defense Chief Information Officer (DoD CIO) to be inapplicable or satisfied via an alternative but equally effective security measure. Further, the SSP shall contain a description of the system boundary, the operational environment, how the specific security requirements are currently implemented, and the relationship with or connections to other systems. The SSP shall also include Plans of Action and Milestones (POAMs) that detail how and when the Contractor will meet all security requirements of NIST SP 800-171 that are not fully implemented, except for the requirements noted below which must be fully implemented without delay:

· Multifactor authentication, including authentication of users in an auditable manner;

· FIPS 140-2 validation encryption at a minimum of Level 1;

· Implementation of least privilege or “need to know” principles in user access policies;

· Auditable user privilege review on a not-less-than annual basis; and

· Required monitoring and controlling remote access sessions, including mechanisms to audit the sessions and methods.

Government Review of System Security Plan

The Contractor shall permit the Government to review the SSP. Reviews may occur on an ad-hoc basis, at least once every three years, or upon replacement or rotation of the Government program manager. No later than five business days after receiving a request from the Government, the Contractor shall facilitate onsite Government review of the Contractor System Security Plan (SSP) and Plan of Action and Milestones (POAMs). The Contractor shall support the evaluation of the SSP in accordance with NIST SP 800-171A.

Correction of Deficiencies

If the Government determines that the SSP does not adequately implement the requirements of DFARS 252.204-7012, then the Government will notify the Contractor of each identified deficiency. The Contractor shall correct any identified deficiencies within 30 days of notification by the Government. The Contracting Officer may provide for a correction period of longer than 30 days and, in such a case, may require the Contractor to submit a POAM for the correction of the identified deficiencies. The Contractor shall immediately notify the Contracting Officer of any failure or anticipated failure to meet a milestone in a POAM. The Contractor shall facilitate follow-on Government reviews of the SSP until the Government determines that the Contractor has corrected all identified deficiencies in the SSP.

Encryption of Data at Rest

Per NIST 800-171 and as defined in NIST 800-53 Security Controls SC-13 and SC-28(1), the Contractor shall employ encryption of data at rest for all Covered Defense Information (CDI) residing on Covered Contractor Information Systems (CCIS). For the purposes of this requirement, the definitions of CDI and CCIS set forth in DFARS 252.204-7012 apply. Data at rest is defined as the state of information when is located on storage devices as specific components of systems, and is not in process or in transit.

Cyber Incident Reporting

The Contractor shall follow the procedures defined in DFARS 252.204-7012 to report cyber incidents to the Department of Defense within the required timeframes. In addition, within 15 days of any cyber incident, the Contractor shall submit to PMS 515 a copy of the incident report submitted to the Department of Defense per DFARS 252.204-7012 (CDRL A007).

Network Sensors

When notified by the Government that intelligence indicates a vulnerability or potential vulnerability, the Contractor shall allow Naval Criminal Investigative Service (NCIS) to install NCIS network sensors. Alternatively, the Contractor may propose to install industry-standard network sensors, subject to NCIS approval. NCIS will approve the sensors and installation regardless of whether NCIS or the Contractor provides the sensors. The Contractor shall cooperate with NCIS on cybersecurity matters affecting this contract, to include sharing information from its sensors and network.

Coordination with NCIS

Both routinely and in response to emergent developments, NCIS engages in outreach efforts to the DoD contracting community to coordinate cybersecurity efforts. The Contractor shall regularly monitor and engage with such NCIS efforts to ensure that the Contractor is aware of the most up-to-date cybersecurity information and strategies. As part of these efforts, the Contractor shall consider implementing all recommendations from NCIS for additional hardening (e.g., more stringent configuration settings) of Department of the Navy (DON) critical programs and technologies.

Segregation of Controlled Unclassified Information

The Contractor shall segregate DON Controlled Unclassified Information (CUI) from Contractor-owned information. Segregation shall be implemented through logical isolation, physical isolation, a hybrid approach, or other technological process deemed acceptable by the Government. If segregation cannot be applied for any DON CUI data, the Contractor shall document such instances and provide justification in the System Security Plan (CDRL A006). The Contractor shall audit user privilege on its information systems at least annually.

Suppliers/Subcontractors

The Contractor shall identify known first tier suppliers/subcontractors that receive or develop covered defense information as defined by DFARS 252.204-7012, “Safeguarding Covered Defense Information and Cyber Incident Reporting.” The Contractor shall provide the plan to track sharing of covered defense information with first tier suppliers/subcontractors and to ensure compliance with DFARS 252.204-7012 for these suppliers/subcontractors in the System Security Plan (CDRL A006). The requirements relating to the System Security Plan, Encryption of Data at Rest, Cyber Incident Reporting, and Coordination with NCIS in this section shall be included in all subcontracts where DFARS 252.204-7012 is required.

Request for Clarification, Interpretation or Assistance (RCIA)

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

Detail Design and Construction of FFG(X) Ship (Item 0100 and Option Items 0200, 0300, 0400, 0500, 0600, 0700, 0800, 0900, 1000)

The Contractor shall perform DD&C of each FFG(X) ship per the requirements outlined in the following subparagraphs. The FFG(X) design shall be based on a parent ship design that has been previously constructed and demonstrated successfully in full scale at sea. 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. The plan shall also establish significant accomplishments to be completed prior to each event, and describes the criteria for successful completion of each accomplishment. The Contractor shall document the management organization and staffing to perform the required subcontractor/vendor coordination, technical performance, engineering, design, procurement, construction, quality assurance, testing, trials, outfitting, delivery and installation of the FFG(X) ships and its systems.

Program Manager

The Contractor shall assign a single program manager who is specifically charged with the responsibility to establish, implement and maintain a management system and organization to plan, organize, control, and oversee activities relating to this contract. The Program Manager shall also function as the primary interface with the Government.

Functional Leads

The Contractor shall designate a single technical lead for each of the following functional areas: Hull Mechanical and Electrical (HM&E); Cybersecurity; Logistics; and Production.

Risk Management

The Contractor shall establish a Risk, Issue, and Opportunity (RIO) Management Program and develop, implement, and maintain a Contractor’s RIO Management Plan (CRMP) (CDRL A008) describing the Contractor’s management strategy and processes for identifying, analyzing, and mitigating program risks, issues, and opportunities. The RIO Management Program shall allow for the identification of both technical and non-technical risks and the development of appropriate actions to manage these risks effectively before they can become issues causing serious cost, schedule, or performance impacts. The RIO Management Program shall include processes for RIO planning, RIO assessment, RIO monitoring, risk mitigation, issue resolution, opportunity pursuits and periodic RIO management reviews with senior managers within the program.

The Contractor shall develop and maintain a RIO Database that documents each risk, issue and opportunity including the assessment results, recommended RIO levels, the risk mitigation plans, issue resolutions, opportunity pursuits, and the progress against those mitigation plans for each RIO.

The Contractor shall report findings and status of RIOs to the program office (CDRL A009). The status of all risks and issues associated with this requirement shall be presented at each Program Management Review (PMR) and Shipbuilding Production Planning Conference (SPPC).

Milestones associated with approved RIO management plans shall be reflected in the Integrated Master Schedule (IMS). The Contractor shall integrate RIO management efforts and elements into new or revised design deliverables, including referencing and addressing program moderate and high risks and issues, including associated management plan actions, into contract deliverables.

Post-Award Conference (Item 0100 Only)

Per the Section C requirement entitled C-242-H002, “Post Award Meeting,” the Contractor shall host a Post-Award Conference. The specific location of the meeting will be identified after contract award. The Contractor shall coordinate with the Contracting Officer’s Representative (COR) to schedule the date for the conference. Representatives from other companies on the Contractor’s core team, if applicable, shall also attend. The Contractor, with input from the Government, shall prepare the agenda and develop presentation material to support the conference (CDRL A001). The Contractor shall develop and submit meeting minutes (CDRL A002).

On-Site Shipyard Facilities and Services

The Contractor shall provide and maintain facilities and services on-site at its shipyard for Government use. The facilities and services shall be equivalent to those provided by the Contractor for its use for generally similar purposes. Office furniture and equipment shall be similar in quality to that provided by the Contractor for its own facilities. As detailed herein, the Contractor shall provide main office facilities, test team facilities, office furniture and equipment, telephone service, internet service, parking, and pre-commissioning crew facilities.

Main Office Facilities

The Contractor shall prepare and maintain office space for 25 Government representatives from contract award until the start of fabrication. From the start of fabrication through contract completion, the Contractor shall prepare and maintain office space for 75 Government representatives. The facility shall be located within close proximity of the ship, Contractor Program Manager, and shipyard shops and offices. Close proximity is defined as not more than a 15-minute walk from ship construction and module erection areas of the shipyard. Office spaces shall be adequate to accommodate the furniture and equipment identified herein and shall include at least 10 private offices with lockable doors. The Contractor shall provide two conference rooms, each equipped with conference tables and seating. One conference room must contain sufficient seating to accommodate at least 30 personnel. The second conference room must contain sufficient seating to accommodate at least 15 personnel. Both conference rooms shall have video teleconferencing (VTC) capability and must be equipped with a projector and monitor to support executive meetings and briefs. The VTC capability shall satisfy the interoperability requirements identified in paragraph 2.2.4. The total facility space provided shall be no less than 80 square feet per person, excluding the conference room and private offices. The private offices shall be no less than 150 square feet each. The main office space shall have a minimum of one main lockable entrance/exit and one secondary lockable entrance/exit. All locks for the main and secondary entrance/exit doors shall be identical. Two keys each for the door locks on the private offices shall be provided to the designated Government Supervisor. The keys for the private offices shall be dedicated solely to the private office doors and shall not be able to be used on the main office doors. Sufficient power shall be provided to power lighting and normal office equipment including computers. Office space shall be heated and cooled as necessary. Facilities shall be provided clean, sanitary, and free of damage or vermin. The Contractor shall provide separate male and female lavatory and sanitary facilities, hot and cold potable water, and janitorial services. The Main Office Facilities requirements described herein reflect the total level of facilities required and do not increase as additional ship construction CLINs are exercised.

Test Team/Additional Office Facilities

The Contractor shall provide additional facilities in close proximity to the FFG(X) ships for the Government Test and Program Team. At contract award, these facilities shall accommodate 10 Government and Government support contractor personnel, and then increase to 30 Government and Government support contractor personnel by the start of fabrication. Within the facilities provided to the Test and Program Team, the Contractor shall also provide a 30 person conference room and a test equipment storeroom. The test equipment storeroom shall include workbench space, power sources, and lighting drops suitable for supporting electrical work, storage cabinets, Electrostatic Discharge (ESD) prevention floor mat, and environmental climate control. The Contractor shall make these facilities available for use starting from contract award and continuing through the post-delivery availability of the last ship ordered under this contract, including any option ships. Test and Program Team facilities will be used on a rotating basis to support ships.

Furnishings for Office Facilities

The Contractor shall provide the following office furniture and equipment for each person:

1) Desk

2) Ergonomic Swivel Task Chair with Arms

3) Bookcase

4) Trash Receptacle

In addition, the Contractor shall provide 20 side chairs, and 10 two-drawer legal-size filing cabinets. The Government will furnish its own computers and printers.

Telephone Service

The Contractor shall provide uninterrupted electrical hook-up with telephone services and services for facsimile machines and computer data terminals. This shall include 24-hour continuous unlimited local and long distance service for each desk and private office for the duration of the contract. Telephone service shall include voicemail capabilities for all telephones. All telephones in the private offices shall have speakerphone capability. One speakerphone (e.g., Polycom or equivalent) shall be provided in each of the conference rooms. The Contractor shall provide two dedicated telephone lines for use with multifunction office machines (e.g., printers with fax, photocopy, and scan capabilities)

Internet Service

The Contractor shall provide a 24-hour continuous high-speed internet connection of at least 100 megabits per second (Mbps). The Contractor shall provide the necessary network infrastructure, including routers, switches, network cabling and wall jacks, to support 105 Government personnel. In addition, the Contractor shall provide three data lines to each conference room. Internet connections provided by the Contractor shall have interoperability capability sufficient to allow Remote Access Service (RAS)/Virtual Private Network (VPN) for Navy Marine Corps Internet (NMCI)-configured computers. Routers, switches and wall jacks shall be dedicated to support the aforementioned high-speed internet connection for use exclusively by authorized Government employees. The Contractor shall assist a Government NMCI site survey team that will identify the configuration of a NMCI network for Government connectivity.

Parking Spaces

The Contractor shall provide conveniently located secure parking spaces to accommodate 105 vehicles for Government representatives for the duration of this contract. The parking spaces shall be marked as “Reserved for Government Personnel.” The Contractor shall provide 10 additional parking spaces assigned for visitors designated by the Government.

Pre-Commissioning Crew Facilities

The Contractor shall provide office space, office furniture and equipment, parking, and training facilities for 152 people to support pre-commissioning crew activities for a period starting no later than 180 days prior to delivery and continuing until sail-away. Training facilities include classrooms, computer labs, and/or online trainers. The Contractor shall also provide a bridge trainer facility to house and store a bridge trainer that includes power source and environmental control. The bridge trainer/equipment facility, at a minimum, must be of adequate size to house the Contractor provided Bridge and Central Control Stations (Item 5000).

Plant Protection

In accordance with NAVSEA Standard Item No. 009-72 and the FFG(X) System Specification, the Contractor shall develop, maintain, and implement a Plant Protection Plan (CDRL A010), Attachment J-12, which prescribes the actions and procedures and assigns responsibilities for actions to be taken to provide adequate protection of the ship(s) and the materials and equipment to be installed therein. As part of the Plant Protection Plan, the Contractor shall develop and execute a Care of Ship During Construction Plan that includes multiple ships under construction simultaneously and lessons learned. The Contractor shall also document, establish and maintain, for its plant and the work in process under this contract, physical security boundaries and other security measures to provide safeguards against hazards, including unauthorized entry, malicious mischief, theft, espionage, sabotage, and terrorism to US Naval Vessels and their crews, in accordance with DFARS 252.217-7016, “Plant Protection” and NAVSEA Standard Item No. 009-72.

Separate Facilities

The facilities to be provided and maintained under the requirements of this Contract are not limited to those currently being provided under any prior contract requirements. Any additional facility requirements resulting from award of this contract shall also be the responsibility of the Contractor to provide and maintain as specified herein.

Reviews

Program Management Reviews (PMRs) and Shipbuilding Production Planning Conferences (SPPCs)

The Contractor shall conduct quarterly Program Management Reviews (PMRs) between contract award and the Production Readiness Reviews (PRRs), beginning no later than three months after award. The Contractor shall conduct quarterly Shipbuilding Production Planning Conferences (SPPCs) after PRR. The PMRs and SPPCs shall be held at the Contractor’s facility or at a location mutually agreeable to the Government and Contractor, or via video-teleconference at the Government’s discretion. The Contractor shall staff each PMR and SPPC with the appropriate personnel in order to address issues raised by the agenda items. The Contractor shall prepare and submit the PMR and SPPC agenda and presentation material (CDRL A001) as mutually agreed upon by the Government and the Contractor. The first PMR conducted under this contract shall cover the agenda items specified in the FFG(X) Design and Readiness Review Requirements and Criteria, Attachment J-13, and shall include a review of the Contractor’s initial Allocated Configuration Baseline (ACB) as described in said attachment.

Required PMR and SPPC Topics

Each PMR and SPPC shall address the planned efforts for ship design, ship construction, testing, logistics support, management processes, life cycle support, risk management, long lead time materials, subcontractor management, procurement schedules, critical material schedules, and small business participation, and shall include identification and resolution of technical and management issues affecting schedules, cost, and performance.

The Contractor shall report progress against the established performance measurement baseline. The Contractor shall also review its performance measurement baseline plan following major changes to the baseline.

EVMS Session

Each PMR and SPPC shall include an Earned Value Management System (EVMS) session to address required contract and subcontract efforts including EVMS using the elements of the Management Plan. The Contractor shall present a summary status and trends of the EVMS reporting and root cause analyses of variances and of contract performance trends.

Programmatic Risk Session

Each PMR and SPPC shall include a programmatic risk session to address any other programmatic risks and the proposed mitigation strategies.

Deferred Work Report

Each SPPC shall include a report on work deferred from the original planned construction schedule to a later timeframe and identify any impact and planned mitigation. The Contractor shall present the status of any pending change requests and other issues requiring a Government decision.

Splinter Sessions

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

Design Reviews

The Contractor shall conduct the detailed reviews of the FFG(X) design as provided in the following subparagraphs. For each review, the Contractor shall prepare and submit an agenda, presentation materials, and meeting minutes (CDRLs A001 and A002). The Contractor shall schedule each design review by mutual agreement with the Government when the Entrance Criteria defined in the Design and Readiness Review Requirements and Criteria document, Attachment J-13, have been met or are expected to be completed as determined and concurred in by the Government. Design reviews not identified in Attachment J-13 do not require entrance and exit criteria unless otherwise specified in this contract.

Critical Design Review (Item 0100 Only)

The Contractor shall conduct a Critical Design Review (CDR) for FFG(X) Ship #1 (Item 0100) only.

Other Design Reviews

The Contractor shall conduct all other design reviews identified in the FFG(X) System Specification.

Readiness Reviews

The Contractor shall conduct Readiness Reviews with the Government in preparation for Start of Construction, Main Engine Light Off, Combat System Light Off, Fuel Onload, Generator Light Off, Launch, Builder’s Trials, and Acceptance Trials. The minimum entrance and exit criteria for each Readiness Review are established in the FFG(X) Design and Readiness Review Requirements and Criteria document, Attachment J-13. Prior to scheduling a Readiness review, the Contractor shall provide to the Government evidence that demonstrates how the entrance criteria specified in Attachment J-13 have been met. The Government will advise the Contractor of its concurrence to proceed with scheduling the planned design or readiness review, or advise which entrance criteria have not been sufficiently met based on the presented evidence. Upon successful completion of each Readiness review, the Government will certify that exit criteria have been satisfied. In the event the Government determines that the Contractor has failed to satisfy the exit criteria required for successful completion of any Readiness Review, the Government will provide formal notice of this determination to the Contractor within 10 days of the conclusion of such readiness review. The Contractor shall perform the efforts necessary to address the specific exit criteria that have not been satisfied and, if applicable, the Contractor shall modify the manner of performance or implement a corrective action necessary to satisfy the specific exit criteria.

Entrance and Exit Criteria

The minimum entrance and exit criteria for each Readiness Review are established in the FFG(X) Design and Readiness Review Requirements and Criteria document, Attachment J-13. The Government retains the exclusive right to determine whether the Contractor has met entrance or exit criteria.

Scheduling

The Readiness Reviews shall be scheduled by mutual agreement with the Government when the entrance criteria have been met or are expected to be completed, as determined by the Government.

Production Readiness Review (PRR)

The Contractor shall host a Production Readiness Review (PRR) prior to the start of construction of the ship to assess the readiness of the Design, Planning, Manpower, Material, Quality Assurance Metrics, Production Methods, and Facilities in accordance with FFG(X) Design and Readiness Review Requirements and Criteria, Attachment J-13.

Combined CDR/PRR (Item 0100 Only)

For Ship #1 only, 90 days prior to the planned CDR event, the Government will determine if the PRR event may be combined with the CDR event, or if a separate PRR event will be required. “Combined” in this context means conducting separate CDR and PRR events within the same week. The Government will determine whether or not to conduct combined CDR and PRR events based on the level of design maturity and stability, configuration management, validation of the Contractor's PMB, maturity of the Contractor's work breakdown structure relative to the Build Strategy and Producibility Report, maturity of the Contractor's material procurement plan relative to the Build Strategy and Producibility Report, and an assessment of technical risks and associated mitigation plans. The Government will consider these factors based on material presented at quarterly reviews, technical exchange meetings, and delivered CDRLs per the contract. If the Government determines that a separate PRR event is required, the Government will document for the Contractor the outstanding items that must be resolved prior to proceeding with said PRR event. The Contractor shall coordinate said PRR event to occur as soon as the Government-documented items are resolved but no later than 90 days from the date of CDR.

Main Engine Light Off (MELO) Review

The Contractor shall host a MELO Readiness Review prior to Main Engine Light Off to assess the safety and readiness for MELO. Authorization to proceed with MELO will be provided by the Government upon successful completion of the MELO Readiness Review.

Combat System Light Off (CSLO) Readiness Review

The Contractor shall host a CSLO Readiness Review prior to CSLO to assess the safety and readiness for CSLO. Authorization to proceed with CSLO will be provided by the Government upon successful completion of the CSLO Readiness Review.

Fuel Onload Readiness Review

The Contractor shall host a Fuel Onload Readiness Review prior to Fuel Onload to assess the safety and readiness for Fuel Onload. Authorization to proceed with Fuel Onload will be provided by the Government upon successful completion of the Fuel Onload Readiness Review.

Generator Light Off Readiness Review

The Contractor shall host a Generator Light Off Readiness Review prior to Generator Light Off to assess the safety and readiness for Generator Light Off. Authorization to proceed with Generator Light Off will be provided by the Government upon successful completion of the Generator Light Off Readiness Review.

Launch Readiness Review (LRR)

The Contractor shall host a LRR no later than 30 days prior to the scheduled launch of the ship to assess the safety and readiness for launching. Authorization to proceed with the launch will be provided by the Government upon successful completion of the LRR.

Builder’s Trial Readiness Review (BTRR)

BTRR shall be held no later than 30 days prior to the Builder’s Trial, or a date to which the Government and Contractor mutually agree. The BTRR shall assess that Builder’s Trial prerequisites in the Specification are complete, the ship is seaworthy, and that machinery, equipment, and systems are ready for the trials.

Acceptance Trial Readiness Review (ATRR)

ATRR shall be held no later than 30 days prior to the Acceptance Trial, or a date to which the Government and Contractor mutually agree. The ATTR shall assess that Builder’s Trial objectives were met and that the ship is ready to be operated at sea for the Government to consider accepting the ship.

Logistics Readiness Review

The Contractor shall host a Logistics Readiness Review (also referred as Logistics Product Support Review) no later than 120 days prior to ship delivery to assess the delivery of all Integrated Product Support elements, to ensure that the ship is operable and maintainable by a trained crew.

Configuration Management

The Contractor shall maintain a Configuration Control Program to ensure that all detail level work being performed under this contract is in compliance with appropriate baseline documentation. For the purposes of this contract, “baseline documentation” shall be defined as the initial version of said documentation that the Government formally approves. The Contractor shall manage configuration and change in accordance with FFG(X) Configuration Management Plan, Attachment J-14. Per Attachment J-14, the Contractor shall develop, implement and maintain a Contractor Configuration Management Plan (CDRL A011), which will be incorporated into the contract as Attachment J-15, for the FFG(X) Program throughout the design and construction process. As part of the Configuration Management Program, the Contractor shall submit Class II Change Status Report (CDRL A012). The Contractor shall develop a FFG(X) Physical Configuration Audit (PCA) Plan (CDRL A013) for the FFG(X) ship(s) that discusses how the Contractor plans on conducting an overall PCA for the FFG(X) ship(s). The Contractor shall perform a PCA and submit PCA report (CDRL A014) in accordance with the approved FFG(X) PCA Plan. The final configuration documents shall be formatted to be compatible with and uploaded to the Government’s Configuration Data Management Database Open Architecture (CDMD-OA) and delivered in a top-down work breakdown structure to include nomenclature, drawing numbers, and the Allowance Parts List. Whenever a situation arises wherein the Contractor cannot comply with a baseline document, or whenever intent of such documentation is significantly changed by detail level documentation, the Contractor shall submit change requests, deviations, or waiver documentation (CDRLs A015 and B177) in accordance with FFG(X) Configuration Management Plan, Attachment J-14, to modify baseline documents for conflict resolution or permit noncompliance. Unique Aviation Configuration Management Processes shall be included in the Contractor Configuration Management Plan.

Data Management

The Contractor shall develop and maintain records of progress in all areas of work included in this contract. The Contractor shall be responsible for the development and management of all documentation generated by the Contractor and its subcontractors under this Contract. The Contractor shall maintain central files of record copies that shall include reproducible copies (including original, as appropriate) of all data that is generated under this contract and develop a Data Accession List (CDRL A016). For CDRLs B001 through B185, the Contractor shall develop a CDRL submission schedule that shows the Contractor’s planned delivery date (CDRL A017).

Government Integrated Digital Environment (IDE)

The Government has established a Government Integrated Digital Environment (IDE) for use on the FFG(X) Program. The Government IDE provides a secure data repository for data exchange and storage with the necessary access control for data protection in conjunction with a collaborative environment. In accordance with Department of Defense (DoD) requirements, the Government IDE is configured to use the Public Key Infrastructure (PKI) certificate to verify user identity. This certificate may be provided by a DoD-issued Common Access Card (CAC) or may be a certificate issued by a DoD-approved vendor under the External Certification Authority (ECA) program. For ease of reference, a list of approved ECA vendors may be accessed at the following URL: https://iase.disa.mil/pki/eca/Pages/index.aspx. The Contractor may maintain up to 20 user accounts in the Government IDE. All data loaded to the Government IDE by the Contractor shall include associated attributes and shall be saved in Government defined formats and locations. The Contractor shall use the Government IDE to upload and directly deliver all Contract data deliverables to the Government. The Government will provide official correspondence such as approval letter, comments, and recommendations back to the Contractor via the Government IDE on all CDRLs. FFG(X) program data and deliverables will be retained in the Government IDE.

Contract Work Breakdown Structure (CWBS)

The Contractor shall prepare a CWBS Dictionary (CDRL C001). The Contractor shall develop the CWBS as part of the Integrated Performance Management Reports (IPMR), Format 1 (CDRL C006). The Contractor shall use the CWBS as the structure for communication throughout the acquisition process. The CWBS shall serve as the common link that unifies the planning, scheduling, cost estimating, budgeting, contracting and performance reporting disciplines. The CWBS shall provide clear traceability of work efforts and end products.

Earned Value Management and Cost and Software Data Reporting

The Contractor shall establish, maintain and use in the performance of this contract, an integrated management system compliant with industry guidelines for Earned Value Management Systems (EVMS) EIA-748. An EVMS that has been formally validated by the Defense Contract Management Agency (DCMA) or other recognized authority and accepted by the cognizant Contracting Officer is required for cost or incentive contracts, subcontracts and other agreements valued at or greater than $100 million in then-year dollars. A compliance review of the Contractor’s validated EVMS will not be performed unless warranted by Integrated Baseline Reviews (IBRs) results, surveillance, or cost and schedule data quality assessments. If the Contractor’s EVMS has not been validated and accepted prior to contract award, the Contractor shall initiate an EVMS certification review within one 150 days of contract award. The Contractor and its subcontractors shall be responsive to DCMA Center of Excellence requirements to achieve EVMS certification no later than six months from the date of contract award.

Per DFARS 252.234-7004, “Cost and Software Data Reporting System” (CSDRS), the Contractor shall establish, deliver, implement and maintain a CSDRS. Per the Cost and Software Data Reporting (CSDR) Plan, Attachment J-16, the Contractor shall prepare and submit Contractor Cost Data Reports (CCDRs) (CDRL C002), the Functional Cost-Hour Report (CDRL C003), and Contractor Business Data Report (CDRL C004) for all contracts and subcontracts over $50 million. The Contractor shall submit a Software Resources Data Reporting (SRDR): Initial Developer Report (CDRL C005) for software development efforts totaling over $20 million.

The contract CSDR plan uses the event field as the driver for the submission of the reports, not the “as of date.” If the event slips, the Contractor must notify the Government program office that a date change is needed. The Contractor shall flow down CCDR requirements as required to subcontractors consistent with the approved subcontract plans or to any lower tier subcontractor per DFARS 252.234-7003, “Notice of Cost and Software Data Reporting System,” and DFARS 252.234-7004, “Cost and Software Data Reporting System.”

The Contractor shall submit CDRLs C002, C003, and C004 electronically using the CSDR Submit-Review System. Data submitters must register through the Defense Cost & Resource Center (DCARC) website and must possess a…