USS PINCKNEY N0002421R4478_A0001.docx

N0002421R4478

SECTION SF 30 BLOCK 14 CONTINUATION PAGE

SUMMARY OF CHANGES

SECTION B - SUPPLIES OR SERVICES AND PRICES

The following have been modified:

NOTE A: LEVEL OF EFFORT TO COMPLETION – SHIP REPAIR

1. The Contractor agrees to provide the level of effort to completion (LOE to Completion) in the performance of growth CLINs in the execution of the USS PINCKNEY (DDG 91) FY22 DMP:

a. 115,744 direct labor hours (labor hours) and $4,139,476 ($TBD fully burdened) materials to complete expected, within scope growth work on the USS PINCKNEY (DDG 91) FY22 DMP work package under CLINS 0037 – 0073.

2. The total LOE to Completion for the performance of the above growth CLINs shall be comprised of labor hours and the associated material required to support the expected, within scope growth. The mix of labor hours and material may be adjusted. Adjustments to the labor hour and material mix will be documented via weekly Technical Direction Letter (TDL) and subsequently unilaterally adjusted via contract modification. The Government reserves the right to reconcile the weekly TDLs via unilateral modification at the Administrative Contracting Officer’s (ACO) discretion.

3. LOE to Completion obligations specified above shall only include effort performed in direct support of this contract and shall not include time and effort expended on such things as (local travel to and from an employee's usual work location), uncompensated effort while on travel status, truncated lunch periods, work (actual or inferred) at an employee's residence or other non-work locations.

4. LOE to Completion labor hours and material are not subject to FAR 52.243-1 ‘Changes – Fixed Price’ and are within the scope and pricing of this contract. The utilization of LOE to Completion is at the discretion of the Contracting Officer and subject to the schedule phasing identified in Note F.

5. If, in the opinion of the Contractor, any effort directed in the Growth Management Request Form (GMR) calls for effort outside the scope of the contract, the Contractor shall notify the Administrative Contracting Officer (ACO) in writing within two (2) working days after the receipt of any such direction. In the event of a cost dispute, the ACO may unilaterally authorize hours and material against LOE work. The Contractor shall not proceed with the work directed by the GMR unless and until the Contractor is notified by the ACO to proceed with the directed work. The Contractor is required to proceed with the directed work as directed by the ACO. Thereafter, any remaining disagreement shall be addressed in accordance with FAR 52.233-1(Alt. 1) ‘Disputes.’ Additionally, if the cost of performing the disputed direction exceeds $100,000, the Contractor is required to comply with FAR 52.243-6 ‘Change Order Accounting.’

6. The labor hours and material requirements listed in Section B, Note A, paragraph 1 above are part of this contract. Prime contractor efforts shall be deducted from the labor hours allocated. Subcontractor efforts and materials shall be deducted from the materials allocated. The balance of labor hours and materials remaining in the LOE to Completion CLINs will be recouped via final contract modification at the end of the availability.

7. Only authorized direct production labor hours shall be deducted from the LOE to Completion direct labor hour ceiling set forth in Section B, Note A, paragraph 1 above. Per Note B paragraph 2 below, all non-production labor shall be included in the Contractor’s fully burdened labor rate. Non-production hours shall not be included in pricing submitted in support of growth issued under the LOE to Completion CLINs. Additionally, Contractor LOE to Completion pricing shall not include any allowance for technical representatives or for any other Government directed source unless specifically directed by the Government.

8. Only authorized material dollars shall be deducted from LOE to Completion material reservation set forth in Section B, Note A, paragraph 1 above. This material reservation consists of the total cost of materials and subcontractor efforts proposed. All subcontractor quotes shall be included in the Change Order Price Analysis (COPA) as per Section C, paragraph 1.11. Material dollars may include freight or duties if specifically itemized on the invoice for the material. The Contractor shall not be allowed to add material handling charges, overhead (including G&A), or profit into the settled cost of materials deducted from the material reservation.

9. The information received in the consolidated final report required by Section C paragraph 6.6 will be used by the ACO in the issuance of one contract modification based on the information received in the final report identified in Section C below, which will be a final settlement for all LOE to Completion labor hours and material dollars. Once the number of labor hours and materials for directed work has been settled, neither party shall be entitled to an adjustment because the expended labor hours and materials differ from the settled price. This shall not preclude an adjustment otherwise permitted by law and regulation; e.g. fraud, product substitution, defective workmanship or materials. Each directed work shall receive approval by the SUPERVISOR and the ACO. (“SUPERVISOR” as defined in NAVSEA Standard Item (NSI) 009-01, paragraph 4.3, refers to the local Government activity responsible for the execution and contract administration of Navy maintenance and modernization work.)

NOTE E: SPECIAL AGREEMENT FOR GROWTH WITH A PRICE OF $25,000 OR LESS

1. To make administration of small dollar value growth more efficient and less costly, both parties (Government and Contractor) agree to a pre-priced value for individual growth items with an estimated price of $25,000 or less. The Contract will include a firm fixed price for growth valued at $25,000.00 or less. Zero-dollar changes and administrative contract changes (for example, drawing revision change where no additional work is required) shall not be executed using the Small Dollar Value Growth procedures, but will follow the change process.

2. The amount included in this Contract for the growth described above shall be equal to a maximum quantity of:

a. 451 occurrences for growth work computed at a firm fixed price of $8,063 per occurrence, as associated with CLINS 0037 – 0073 for the USS PINCKNEY (DDG 91) FY22 DMP.

3. The Contractor shall report proposed growth work through the normal CFR process and submit a Class F estimate as part of its CFR submission. If the Contracting Officer determines the proposed work is within-scope growth and accepts the CFR as written, all estimates $17,500, or less, will be authorized through bilateral execution of GMR. In the event the scope is disputed or the Class F estimate submitted is greater than $17,500, the ACO, with coordination from the Project Manager, shall use best efforts to determine if the proposed growth is $25,000 or less, and document the agreed to technical scope of work. The Government may also independently identify growth work. The Contracting Officer shall direct commencement of all growth work. Directed growth will be followed by documentation to appropriately reflect specification changes.

4. If the Contractor and Contracting Officer are not able to reach agreement that the price of the growth work is $25,000, or less, then it will be adjudicated through the LOE to Completion process identified in Section B, Note A. However, if negotiations reveal the value of growth work is $25,000, or less, the directed work will be settled in accordance with the Small Dollar Value Growth procedure at the pre-priced value per occurrence identified in Section B, Note E, Paragraph 2, above.

5. The Contractor and Contracting Officer shall develop a growth tracker to identify and record the number of directed occurrences under this Note. All growth meeting the criteria of paragraph 1 above shall be accepted under this clause without delay and disruption in ship redelivery.

6. When the quantity of occurrences for Small Dollar Growth is depleted, the Small Dollar Growth process shall revert to the LOE to Completion process for remaining growth.

7. Within 30 days after the ‘Contract Complete’ date, the Contractor and Contracting Officer, utilizing the growth work tracker, shall determine the number of pre-priced occurrences not directed under this contract. Accordingly, the Contracting Officer will decrease the contract price by an amount calculated by multiplying the remaining number of occurrences by the pre-established firm fixed price per occurrence

SECTION J - LIST OF DOCUMENTS, EXHIBITS AND OTHER ATTACHMENTS

The following have been modified:

DOCUMENTS/EXHIBITS/ATTACHMENTS

The following document(s), exhibit(s), and other attachment(s) form a part of this solicitation:

The following document(s), exhibit(s), and other attachment(s) also form a part of this solicitation and will form a part of the contract resulting from this solicitation:

Attachment J-1 Specification Package TPPC-TPPC-DDG91-SWRMC2-CN01 (including Errata Nos. 1 – 16 & Addendum No. 1)

Exhibit A Contract Data Requirements List (CDRL) (DD Form 1423) A001-A003, A005-A009, A011, A014, A016-A017 (Does not include A004, A0010, A012-A0013, or A015) Exhibit B Contract Data Requirements List (CDRL) (DD Form 1423) B001-B009 Exhibit C Contract Data Requirements List (CDRL) (DD Form 1423) C001-C002

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