N00024-19-R-2300.docx

N0002419R2300

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 D, E, and F

ESTIMATED COST

FIXED FEE

TOTAL EST COST + FEE

CLIN Number 0102

COST

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

See Note G

FOB: Origin (Shipping Point)

ESTIMATED COST

CLIN Number 0103

Correction of Defects

COST

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

See Note H

ESTIMATED COST

CLIN Number 0104

Performance Incentive Fee

FFP

Earned Fee for FFG(X) Ship #1

See Note I

NET AMT

CLIN Number 0200

FPI

DD&C for FFG(X) Ship #2

See Notes A, B, and C

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

ESTIMATED COST

FIXED FEE

TOTAL EST COST + FEE

CLIN Number 0202

COST

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

See Note G

FOB: Origin (Shipping Point)

ESTIMATED COST

CLIN Number 0203

Correction of Defects

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

ESTIMATED COST

CLIN Number 0204

Performance Incentive Fee

Earned Fee for FFG(X) Ship #2

NET AMT

CLIN Number 0300

FPI

DD&C for FFG(X) Ship #3

See Notes A, B, and C

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

ESTIMATED COST

FIXED FEE

TOTAL EST COST + FEE

CLIN Number 0302

COST

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

See Note G

FOB: Origin (Shipping Point)

ESTIMATED COST

CLIN Number 0303

Correction of Defects

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

ESTIMATED COST

CLIN Number 0304

Performance Incentive Fee

Earned Fee for FFG(X) Ship #3

NET AMT

CLIN Number 0400

FPI

DD&C for FFG(X) Ship #4

See Notes A, B, and C

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

ESTIMATED COST

FIXED FEE

TOTAL EST COST + FEE

CLIN Number 0402

COST

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

See Note G

FOB: Origin (Shipping Point)

ESTIMATED COST

CLIN Number 0403

Correction of Defects

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

ESTIMATED COST

CLIN Number 0404

Performance Incentive Fee

Earned Fee for FFG(X) Ship #4

NET AMT

CLIN Number 0500

FPI

DD&C for FFG(X) Ship #5

See Notes A, B, and C

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

ESTIMATED COST

FIXED FEE

TOTAL EST COST + FEE

CLIN Number 0502

COST

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

See Note G

FOB: Origin (Shipping Point)

ESTIMATED COST

CLIN Number 0503

Correction of Defects

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

ESTIMATED COST

CLIN Number 0504

Performance Incentive Fee

Earned Fee for FFG(X) Ship #5

NET AMT

CLIN Number 0600

FPI

DD&C for FFG(X) Ship #6

See Notes A, B, and C

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

ESTIMATED COST

FIXED FEE

TOTAL EST COST + FEE

CLIN Number 0602

COST

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

See Note G

FOB: Origin (Shipping Point)

ESTIMATED COST

CLIN Number 0603

Correction of Defects

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

ESTIMATED COST

CLIN Number 0604

Performance Incentive Fee

Earned Fee for FFG(X) Ship #6

NET AMT

CLIN Number 0700

FPI

DD&C for FFG(X) Ship #7

See Notes A, B, and C

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

ESTIMATED COST

FIXED FEE

TOTAL EST COST + FEE

CLIN Number 0702

COST

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

See Note G

FOB: Origin (Shipping Point)

ESTIMATED COST

CLIN Number 0703

Correction of Defects

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

ESTIMATED COST

CLIN Number 0704

Performance Incentive Fee

Earned Fee for FFG(X) Ship #7

NET AMT

CLIN Number 0800

FPI

DD&C for FFG(X) Ship #8

See Notes A, B, and C

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

ESTIMATED COST

FIXED FEE

TOTAL EST COST + FEE

CLIN Number 0802

COST

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

See Note G

FOB: Origin (Shipping Point)

ESTIMATED COST

CLIN Number 0803

Correction of Defects

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

ESTIMATED COST

CLIN Number 0804

Performance Incentive Fee

Earned Fee for FFG(X) Ship #8

NET AMT

CLIN Number 0900

FPI

DD&C for FFG(X) Ship #9

See Notes A, B, and C

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

ESTIMATED COST

FIXED FEE

TOTAL EST COST + FEE

CLIN Number 0902

COST

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

See Note G

FOB: Origin (Shipping Point)

ESTIMATED COST

CLIN Number 0903

Correction of Defects

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

ESTIMATED COST

CLIN Number 0904

Performance Incentive Fee

Earned Fee for FFG(X) Ship #9

NET AMT

CLIN Number 1000

FPI

DD&C for FFG(X) Ship #10

See Notes A, B, and C

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

ESTIMATED COST

FIXED FEE

TOTAL EST COST + FEE

CLIN Number 1002

COST

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

See Note G

FOB: Origin (Shipping Point)

ESTIMATED COST

CLIN Number 1003

Correction of Defects

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

ESTIMATED COST

CLIN Number 1004

Performance Incentive Fee

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 Exhibit A, CDRL A018

FOB: Destination

NET AMT

CLIN Number 3020

CPFF

ESTIMATED COST

FIXED FEE

TOTAL EST COST + FEE

CLIN Number 3021

CPFF

ESTIMATED COST

FIXED FEE

TOTAL EST COST + FEE

CLIN Number 3022

CPFF

ESTIMATED COST

FIXED FEE

TOTAL EST COST + FEE

CLIN Number 3023

CPFF

ESTIMATED COST

FIXED FEE

TOTAL EST COST + FEE

CLIN Number 3024

CPFF

ESTIMATED COST

FIXED FEE

TOTAL EST COST + FEE

CLIN Number 3025

CPFF

ESTIMATED COST

FIXED FEE

TOTAL EST COST + FEE

CLIN Number 3026

CPFF

ESTIMATED COST

FIXED FEE

TOTAL EST COST + FEE

CLIN Number 3027

CPFF

ESTIMATED COST

FIXED FEE

TOTAL EST COST + FEE

CLIN Number 3028

CPFF

ESTIMATED COST

FIXED FEE

TOTAL EST COST + FEE

CLIN Number 3029

CPFF

ESTIMATED COST

FIXED FEE

TOTAL EST COST + FEE

CLIN Number 3030

CPFF

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 Note G

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 Note G

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 Note G

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 Note G

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 Note G

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 Note G

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 Note G

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 Note G

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 Note G

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 Note G

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 Note G

FOB: Origin (Shipping Point)

ESTIMATED COST

CLIN Number 4025

CPFF

ESTIMATED COST

FIXED FEE

TOTAL EST COST + FEE

CLIN Number 4026

CPFF

ESTIMATED COST

FIXED FEE

TOTAL EST COST + FEE

CLIN Number 4027

CPFF

ESTIMATED COST

FIXED FEE

TOTAL EST COST + FEE

CLIN Number 4028

CPFF

ESTIMATED COST

FIXED FEE

TOTAL EST COST + FEE

CLIN Number 4029

CPFF

ESTIMATED COST

FIXED FEE

TOTAL EST COST + FEE

CLIN Number 4030

CPFF

ESTIMATED COST

FIXED FEE

TOTAL EST COST + FEE

CLIN Number 4125

COST

Incidental Material and Other Direct Costs Consumed in Support of FY25 Crew Familiarization

See Note G

FOB: Origin (Shipping Point)

ESTIMATED COST

CLIN Number 4126

COST

Incidental Material and Other Direct Costs Consumed in Support of FY26 Crew Familiarization

ESTIMATED COST

CLIN Number 4127

COST

Incidental Material and Other Direct Costs Consumed in Support of FY27 Crew Familiarization

ESTIMATED COST

CLIN Number 4128

COST

Incidental Material and Other Direct Costs Consumed in Support of FY28 Crew Familiarization

ESTIMATED COST

CLIN Number 4129

COST

Incidental Material and Other Direct Costs Consumed in Support of FY29 Crew Familiarization

ESTIMATED COST

CLIN Number 4130

COST

Incidental Material and Other Direct Costs Consumed in Support of FY30 Crew Familiarization

ESTIMATED COST

CLIN Number 5000

FFP

Bridge & Central Control Station Equipment Training Stations FOB: Destination

NET AMT

CLIN Number 6000

Provisioned Item Orders

See Note J

NET AMT

CLIN Number 7000

Provisioned Item Orders

CPFF

See Note J

ESTIMATED COST

FIXED FEE

TOTAL EST COST + FEE

Note A – Incentive Price Revision—Firm Target

The final price of this line item will be subject to adjustment per the Section I clause FAR 52.216-16, “Incentive Price Revision—Firm Target” and the Section B requirement entitled B-216-H001, “Clarifications to the Incentive Price Revision Clause (FAR 52.216-16).”

Note B – FFG(X) Ship Options

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. The expiration of an option shall not invalidate the remaining unexpired options.

Note C – Potential Block Buy

Following contract award, the Government may designate any or all of Items 0200, 0300, 0400, 0500, 0600, 0700, 0800, 0900, and 1000 as part of a “Block Buy.” In the event that a Block Buy is enacted under the National Defense Authorization Act in future fiscal years, the Contractor shall enter into negotiations with the Government to determine a fair and reasonable price for each item under the Block Buy. The price of any ship designated as part of the Block Buy shall not exceed the corresponding non-Block Buy price.

Note D – Incremental Funding

This line item may be incrementally funded per the Section I clause FAR 52.232-22, “Limitation of Funds,” and the Section G requirement entitled G-232-H001, “Allotment of Funds—Basic.”

Note E – Level of Effort Labor

(a) Following award of the basic contract and upon request of the Procuring Contracting Officer, the Contractor shall negotiate with the Government to establish pricing for this line item. The Contractor shall propose pricing based on direct and indirect rates that are no greater than those listed in the Summary Rate Sheet, Attachment J-38 for the direct and indirect rate categories listed in said attachment. Additionally, the Contractor shall not propose a fixed fee that exceeds 8% of the negotiated fee-bearing cost. The anticipated number of hours for each line item is shown in the table below.

200,000

150,000

(b) 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 requirement entitled H-216-H002, “Level of Effort—Alternate I.”

(c) The Government will issue Technical Instructions (TIs) under this line item per the Section C requirement entitled C-242-H003, “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.

(d) Per the Section B requirement entitled B-232-H005, “Payments of Fee(s) (Level of Effort)—Alternate I,” fee under this item will be paid on a per hour performed basis. The composite cost, fee, and price rates per hour for each line item are set forth in B-216-H006, “Fee Table.”

(e) For the purposes of contract funding and administration, the Government may elect to allocate the hours under this item across multiple priced alpha SLINs (i.e., deliverable subline items per FAR 4.1004(a)).

Note F – Subcontractor Hours

Per the Section H requirement entitled H-216-H002, “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 G – Material and Other Direct Costs

(a) This line item provides for material and/or other direct costs associated with the performance of a level-of-effort labor line item. The Government will issue Technical Instructions (TIs) under this line item per the Section C requirement entitled C-242-H003, “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.

(b) 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 H – Correction of Defects

The Government may exercise and fund this line item on a cost-only (no fee) basis to account for costs associated with the correction of Contractor-responsible defects above the limitation of liability dollar value limit as established in the Section E requirement entitled E-246-H024, “Limitation of Contractor’s Liability for Correction of Defects.”

Note I – Determination of Performance Incentive Fee

The amount of performance incentive fee earned will be determined per FFG(X) Performance Incentive Fee Plan, Attachment J-33. For administrative purposes, any earned performance incentive fee will be funded under this line item.

Note J – Provisioned Items Orders

The total estimated burdened dollar amount of all Provisioned Items Order (PIO) requirements under this contract is $500,000,000. Pricing will be set forth on each order. Each order will be established on a new line item. In proposing costs for each order, the Contractor shall propose pricing direct and indirect rates that are no greater than those listed in the Summary Rates Sheet, Attachment J-38 for the direct and indirect rate categories listed in said attachment. The negotiated profit or fixed fee rate for any PIO under this contract shall not exceed 6% of fee-bearing costs.

CLAUSES INCORPORATED BY FULL TEXT

B-215-H002 REFUNDS (SPARES AND SUPPORT EQUIPMENT) (NAVSEA) (OCT 2018)

(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 not be made to recoup the amount of cost decreases that occur over time due to productivity gains (excluding 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 shall 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 if the Contractor submitted, and certified the currency, accuracy and completeness of, cost or pricing data applicable to the item.

(End of text)

B-216-H001 Clarifications to the Incentive Price Revision Clause (FAR 52.216-16)--Basic (NAVSEA) (Oct 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:

Item 0100: 30 percent

Item 0200: 40 percent

Items 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; and provided further that in no event shall the total amount determined in accordance with the contract requirement entitled “Economic Price Adjustments,” when added to the Total Final Price, calculated as set forth herein, exceed the sum of the Section B Ceiling Price.

(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. .

B-216-H003 Economic Price Adjustments--Basic (NAVSEA) (Oct 2018)

(a) Economic price adjustments (EPA) shall only be made in accordance with this contract requirement. The provisions of this contract requirement shall result in no adjustment to the Section B amounts of the target cost, target profit, target price, or ceiling price for any ship awarded under this contract. The tables referenced within this contract requirement are contained in the Economic Price Adjustment Tables, Attachment J-36. The Contractor hereby agrees that the indices (including composite weights) used herein are proper and appropriate for this contract’s requirements.

(1) Cost Categories

For each ship, costs subject to EPA include 100% of allowable direct material costs. “Material costs” shall have the meanings set forth in Parts 2 and 31 of the Federal Acquisition Regulation (FAR) and Parts 202 and 231 of the Defense FAR Supplement in effect on the effective date of this contract.

Note: Facilities Capital Cost of Money (FCCM) is not to be included; or otherwise subject to EPA.

(2) Period Costs

The actual costs considered for an EPA are those identified in paragraph (1). “Cost Categories” that are to be incurred from Contract Award, or obligation of installment funding, as applicable, for the Ship Construction CLIN, through twelve (12) months after the last day of the month in which the applicable ship’s delivery is scheduled to occur as specified in Section F of this contract; or twelve (12) months after the last day of the month in which the applicable ship’s actual delivery occurs; or the point at which the applicable ship’s total costs incurred less EPA, after application of the shareline provision, exceeds the ceiling price as specified in Section B, whichever is earliest. In no event shall an EPA be applied to costs incurred subsequent to said earliest event.

(3) Computations

EPA shall be computed on an individual ship basis. EPA shall be made on a comparison of the average projected index value and average actual index value of the specified “Cost Category Index.” Projected index values are those determined in accordance with paragraph (d)(2) of this contract requirement and shown in Table 1. Actual index values used in an EPA under this contract requirement shall be determined from the indices identified below:

a) Direct Material Cost Index: A composite of the following (Composite Index base: January 2021 = 100):

BLS Producer Price Index (PPI): Hot rolled steel bars, plates, and structural shapes (not seasonally adjusted);

BLS Series ID: PCU 3311107

BLS PPI, Nonferrous mill shapes (not seasonally adjusted);

BLS Series ID: WPU102

BLS PPI, General purpose machinery and equipment (not seasonally adjusted);

BLS Series ID: WPU114

BLS PPI, Electrical machinery and equipment (not seasonally adjusted);

BLS Series ID: WPU117

BLS PPI, Industrial Commodities (not seasonally adjusted);

BLS Series ID: WPU03THRU15

BLS PPI, Aluminum mill shapes (not seasonally adjusted);

BLS Series ID: WPU102501

Note: Tables 3a and 3b of Attachment 36 describe the method for calculating actual and projected monthly Composite Direct Material Cost Index values.

b) Worksheets for making EPA calculations are provided as Table 1, entitled “Economic Price Adjustment for Direct Material Costs.” Table 1 shall be completed for each ship as follows:

1. Column (1) – Computation Period: EPA for direct labor, indirect, and direct material costs shall be computed on a calendar year basis for each ship awarded or any option ship for which the option is exercised, under this contract. The computation periods for each ship shall begin, and end, as specified in paragraph (2) above entitled, “Period Costs.” If necessary, computation periods will be modified to account for partial year periods. Column (1), if necessary to account for partial periods, is to be modified for partial year computation periods.

2. Column (2) – Projected Index Value: The projected index value shall be the index value as set forth in Column (2) for each computation period. The projected index values in column (2) reflect the average of the projected index values for the months of January through December, rounded to one decimal place, for the Direct Material Cost Index of the applicable computation period, as set out in Table 2. For partial year computation periods, the projected index value is calculated by averaging the projected value indexes, set out in Table 2 for the applicable months within the partial year computation period using the formula set forth in paragraph (d)(3) below. Column (2) is to be modified, if necessary to account for partial periods, using the resultant partial year projected index value.

Note: Table 3b describes the method for calculating projected monthly Composite Direct Material Cost Index values.

3. Partial Year Index Formula

PYIV = X/N

Where:

PYIV = Partial Year Index Value

X = Sum of each monthly index value within the partial year computation period.

N = Number of months in the partial year computation period.

4. Column (3) – Tolerance Band: The tolerance band values are set forth in column (3) for each computation period and each cost category. For the period from Contract Award /obligation of installment funding, as applicable, through calendar year 2022, a tolerance band of plus or minus (5.0%) of the projected index values is established by multiplying (95.0%) and (105.0%) by the projected index values determined in accordance with paragraph (d)(2). For calendar years 2023 through 2024, a tolerance band of plus or minus (4.0%) of the projected index values is established by multiplying (96.0%) and (104.0%) by the projected index values determined in accordance with paragraph (d)(2). For calendar years 2025 and beyond, a tolerance band of plus or minus (3.0%) of the projected index values is established by multiplying (97.0%) and (103.0%) by the projected index values determined in accordance with paragraph (d)(2).

5. Column (4) – Actual Index Value: When actual monthly index values for an entire computation period have been published, the average of the actual index values for the months of January through December, rounded to one decimal place, of the applicable year for the Direct Material Cost Index shall be entered in the actual index value column (4) of Table 1 (see note below). If necessary, to account for partial year computation periods, see paragraph (d)(3) above. The resultant value for the Direct Material Cost Index shall be entered in the Actual Index Value column (4) of Table 1. If the actual index value falls within the tolerance band, no economic price adjustment will be entered in Column (8) for the computation period.

Note: Tables 7a and 8a describe the method for calculating actual monthly Composite Direct Material Cost Index values.

6. Column (5) – Index Difference: If the actual index value is outside the tolerance band, the index difference is the difference between the actual index value and, (a) the lower tolerance band index value if the actual index value is less than the lower tolerance band index value, or (b) the upper tolerance band index value if the actual index value is greater than the upper tolerance band index value.

7. Column (6) – Index change: The index change is the index difference divided by the applicable (lower or upper) tolerance band index value described in the preceding paragraph (d)(6).

8. Column (7) – Actual Costs: For the applicable computation period, the applicable actual costs as defined in paragraph (1) entitled “Cost Categories,” shall be entered in Table 1. “Actual costs” shall include only “incurred” costs and “allowable” costs as defined in paragraph (f) of the contract requirement entitled “Payments,” except that “incurred” costs for material is to include the valid amounts of billings received from vendors during the specified computation period involved irrespective of whether the Contractor has paid the full amount of such billings. Further, for this contract requirement, the imputed cost of facilities capital shall not be considered as “incurred indirect cost.” All actual costs identified in column (7) shall be subject to audit and inspection by the Contracting Officer in accordance with paragraph (h) of the contract requirement entitled “Payments.”

9. Column (8) – Period Adjustment: Period Adjustment for each computation period is determined by multiplying the index change (column (6)) by the actual costs (column (7)) for the computation period as defined in this contract requirement. An entry of zero will be made if the Actual Index Value falls within the tolerance band. Period adjustments where the actual index value is less than the lower tolerance band value shall be a negative number. Period adjustments where the actual index value is greater than the upper tolerance band shall be a positive number.

c) Total EPA Amount: Total EPA Amount is the sum of the period adjustments for all computation periods covered by this requirement.

(4) Administrative Procedures:

Calculations required by this contract requirement will be made by the Contractor using Table 1 as applicable, and submitted on an annual basis to the Administrative Contracting officer within thirty (30) days after publication of all the specified indices for the computation period.

The Administrative Contracting officer (ACO) shall verify calculations provided by the Contractor and forward a copy of Table 1 to the Procuring Contracting Officer and the Program Office Financial Manager. The parties agree to execute a bilateral modification each year reflecting the updated cumulative EPA adjustments as of the date of agreement on Table 1.

Any subsequent changes resulting from (a) the publication of revised or final indices, (b) revised actual costs, or (c) an agreed to “Total Final Negotiated Cost” in accordance with the Incentive Price Revision clause of this contract shall be reflected in an updated Table 1.

Nothing contained in this contract requirement shall be considered as prohibiting changes in the contract prices made pursuant to any other provisions of this contract.

In the event the Bureau of Labor Statistics discontinues publication or changes the content of any index used in this contract requirement, the parties shall mutually agree on an appropriate substitute for the affected index for use in determining economic price adjustments in accordance with this contract requirement. In the event the BLS alters its methods of calculating or reporting an index used in this requirement (including a change in the base period), the appropriate adjustments shall be made by the parties to put the revised index on a comparable basis with the index as calculated before the change.

Further, the Contractor agrees that if it makes material changes to its accounting system that materially alter the effect of this contract requirement, it will disclose and agree to enter into good faith negotiations to equitably account for such changes.

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

B-216-H006 Fee Table (NAVSEA) (Mar 2019)

Applicable to Items 0101, 0201, 0301, 0401, 0501, 0601, 0701, 0801, 0901, 1001, 3020-3030, 4025-4030 (if options are exercised)

PER HOUR

In the event of any inconsistency between the above table and the CLIN pricing, the CLIN pricing shall take precedence.

B-232-H006 LIMITATION OF COST OR LIMITATION OF FUNDS CLARIFICATION (NAVSEA) (OCT 2018)

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-231-H001 TRAVEL COSTS (NAVSEA) (OCT 2018)

(a) Except as otherwise provided herein, the Contractor shall be reimbursed for its actual travel costs in accordance with FAR 31.205-46. The travel costs to be reimbursed shall be those costs for which the Contractor has maintained appropriate documentation and which have been determined to be allowable, allocable, and reasonable by the Procuring Contracting Officer, Administrative Contracting Officer, or their duly authorized representative.

(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, Procuring 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.

B-232-H001 Payments--Basic (Jan 2019) (Modified) (Jun 2019)

(a) Computation of Payments

(1) Until such time as physical progress in the performance of work on a vessel is fifty percent (50%) complete, the Government, upon submission by the Contractor of invoices certified by the Contractor as hereinafter provided, will promptly make payments, on account of the total contract price(s), at ninety percent (90%) of the amount determined by multiplying the allocated total contract price of such vessel by the percentage of physical progress in the performance of work on such vessel as certified by the Contractor subject to the approval of the Supervisor; provided, that no such payment shall be made in an amount which when added to the total of all payments previously made with respect to such vessel under paragraph (a) of this requirement exceeds one hundred percent (100%) of the allowable costs certified by the Contractor on the related invoice to have been incurred in the performance of work on such vessel.

(2) After the percentage of physical progress in the performance of work on a vessel has reached fifty percent (50%), the Government, upon submission by the Contractor of invoices certified by the Contractor as hereinafter provided, will promptly make payments, on account of the total contract price(s), of one hundred percent (100%) of the amount determined by: (i) multiplying the allocated total contract price of such vessel by the percentage of physical progress in the performance of work on such vessel as certified by the Contractor subject to the approval of the Supervisor, and (ii) subtracting from that product five percent (5%) of the allocated total contract price of such vessel; provided, that no such payment shall be made in an amount which when added to the total of all payments made previously with respect to such vessel under paragraph (a) of this requirement exceeds one hundred five percent (105%) of the allowable costs certified by the Contractor on the related invoice to have been incurred in the performance of work on such vessel; provided, further, that the Contractor furnishes data on actual cumulative costs and estimated future costs acceptable to the Supervisor which demonstrates to the satisfaction of the Supervisor that the Contractor will make a profit of at least five percent (5%) on completion of the contract, and the Contractor provides updated information on a quarterly basis. If updated data indicate the Contractor will not make a profit of at least five percent (5%) on completion of the contract, the progress payments shall be adjusted retroactively so that the total of all payments made with respect to the vessel under paragraph (a) of this requirement shall not exceed one hundred percent (100%) of the allowable costs certified by the Contractor on the related invoice to have been incurred in the performance of work on such vessel.

(b) Billing Price

(1) For the purpose of this requirement, until the establishment of the total final price(s) in accordance with paragraph (d) of the clause of this contract entitled "Incentive Price Revision--Firm Target (FAR 52.216-16)", the term "total contract price" means the billing price; initially the billing price shall be the initial total contract target price(s), and thereafter the billing price shall be revised as provided in paragraph (b)(2) below. After establishment of the total final price(s) in accordance with paragraph (d) of the "Incentive Price Revision--Firm Target (FAR 52.216-16)" clause, the billing price shall be the total final price(s) so established.

(2) Within fifteen (15) days after each calendar quarter the Contractor shall submit in writing a proposed revised billing price which shall be established as follows:

(i) The Contractor shall certify to the Contracting Officer the percentage of physical progress in the performance of the contract as a whole as of the end of the calendar quarter. Such percentage of physical progress shall be expressed as a decimal carried to four decimal places and shall be subject to the approval of the Supervisor.

(ii) The revised billing price shall be the sum of a projected final cost(s), and a projected profit, and the Total EPA Amount (positive or negative), as determined in the contract requirement entitled “Economic Price Adjustment”, computed as follows:

(A) A projected final cost shall be computed by (i) determining the cumulative sum of the costs as of the end of the calendar quarter, and (ii) dividing this amount by the percentage of physical progress certified and approved as set forth in subparagraph (i) above. From this amount, the Total EPA Amount (positive or negative) incurred through the end of the applicable billing period, as determined in the contract requirement entitled “Economic Price Adjustment” will be subtracted.

(B) A projected profit shall be determined by applying to the projected final cost(s) as calculated in paragraph 2(ii)(A), the incentive formula set forth in paragraph (d)(2) of the "Incentive Price Revision--Firm Target (FAR 52.216-16)" clause.

(C) The sum of the projected final cost, as calculated in paragraph (A), and the projected profit, as calculated in paragraph (B), shall not exceed the total Ceiling Price set forth in Section B.

(D) The sum of (C) above and the EPA Adjustment amount (positive or negative) shall be the revised billing price;…