N00024-22-R-2203_0012.pdf

AMENDMENT OF SOLICITATION/MODIFICATION OF CONTRACT

Except as provided herein, all terms and conditions of the document referenced in Item 9A or 10A, as heretofore changed, remains unchanged and in full force and effect.

15A. NAME AND TITLE OF SIGNER (Type or print)

30-105-04EXCEPTION TO SF 30

APPROVED BY OIRM 11-84

STANDARD FORM 30 (Rev. 10-83) Prescribed by GSA

FAR (48 CFR) 53.243

The purpose of this RFP amendment is to modify the follow ing:

Section B: Update B-216-H003 and B-232-H001; Section C: Update C.3.094.2; Section E: Update E-246-H024; Section J: Update Attachments J-1a and J-17; Section L: Updated L.1.3.5.11.7.

The soliciation is hereby modified as follow s:

1. CONTRACT ID CODE PAGE OF PAGES

J 1 108

16A. NAME AND TITLE OF CONTRACTING OFFICER (Type or print)

16C. DATE SIGNED

BY 10-Nov-2022

16B. UNITED STATES OF AMERICA15C. DATE SIGNED15B. CONTRACTOR/OFFEROR

(Signature of Contracting Officer)(Signature of person authorized to sign)

8. NAME AND ADDRESS OF CONTRACTOR (No., Street, County, State and Zip Code) X N0002422R2203

X 9B. DATED (SEE ITEM 11)

19-Nov-2021

10B. DATED (SEE ITEM 13)

9A. AMENDMENT OF SOLICITATION NO.

11. THIS ITEM ONLY APPLIES TO AMENDMENTS OF SOLICITATIONS

X The above numbered solicitation is amended as set forth in Item 14. The hour and date specified for receipt of Offer is extended, X is not extended.

Offer must acknowledge receipt of this amendment prior to the hour and date specified in the solicitation or as amended by one of the following methods:

(a) By completing Items 8 and 15, and returning 1 copies of the amendment; (b) By acknowledging receipt of this amendment on each copy of the offer submitted;

or (c) By separate letter or telegram which includes a reference to the solicitation and amendment numbers. FAILURE OF YOUR ACKNOWLEDGMENT TO BE RECEIVED AT THE PLACE DESIGNATED FOR THE RECEIPT OF OFFERS PRIOR TO THE HOUR AND DATE SPECIFIED MAY RESULT IN

REJECTION OF YOUR OFFER. If by virtue of this amendment you desire to change an offer already submitted, such change may be made by telegram or letter, provided each telegram or letter makes reference to the solicitation and this amendment, and is received prior to the opening hour and date specified.

12. ACCOUNTING AND APPROPRIATION DATA (If required)

13. THIS ITEM APPLIES ONLY TO MODIFICATIONS OF CONTRACTS/ORDERS.

IT MODIFIES THE CONTRACT/ORDER NO. AS DESCRIBED IN ITEM 14.

A. THIS CHANGE ORDER IS ISSUED PURSUANT TO: (Specify authority) THE CHANGES SET FORTH IN ITEM 14 ARE MADE IN THE

CONTRACT ORDER NO. IN ITEM 10A.

B. THE ABOVE NUMBERED CONTRACT/ORDER IS MODIFIED TO REFLECT THE ADMINISTRATIVE CHANGES (such as changes in paying office, appropriation date, etc.) SET FORTH IN ITEM 14, PURSUANT TO THE AUTHORITY OF FAR 43.103(B).

C. THIS SUPPLEMENTAL AGREEMENT IS ENTERED INTO PURSUANT TO AUTHORITY OF:

D. OTHER (Specify type of modification and authority)

E. IMPORTANT: Contractor is not, is required to sign this document and return copies to the issuing office.

14. DESCRIPTION OF AMENDMENT/MODIFICATION (Organized by UCF section headings, including solicitation/contract subject matter where feasible.)

10A. MOD. OF CONTRACT/ORDER NO.

2. AMENDMENT/MODIFICATION NO. 5. PROJECT NO.(If applicable)

6. ISSUED BY

3. EFFECTIVE DATE

10-Nov-2022

CODE

NAVAL SEA SYSTEMS COMMAND

1333 ISAAC HULL AVE SE

WASHINGTON NAVY YARD DC 20376-2030

N00024 7. ADMINISTERED BY (If other than item 6)

4. REQUISITION/PURCHASE REQ. NO.

CODE

See Item 6

FACILITY CODECODE

EMAIL:TEL:

N0002422R2203

SECTION SF 30 BLOCK 14 CONTINUATION PAGE

SUMMARY OF CHANGES

SECTION B - SUPPLIES OR SERVICES AND PRICES

The following have been modified:

B-216-H003 ECONOMIC PRICE ADJUSTMENTS--BASIC (NAVSEA) (OCT 2018)(MODIFIED)

(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 Attachment J-17, Economic Price Adjustment Tables. The Contractor hereby agrees that the indices (including composite weights) used herein are proper and appropriate for this contract’s requirements.

(1) Cost Category

For each ship, costs subject to EPA include one hundred percent (100%) of allowable direct material costs.

“Material costs” shall have the meaning set forth in Part 31 of the Federal Acquisition Regulation (FAR) and Part 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 Category” 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 b)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 2022 = 100):

INDEX

COMPOSITE

WEIGHT

Steel Plates and Shapes 12% General Purpose Machinery and Equipment 40% Electrical Machinery and Equipment 28% Industrial Commodities 20%

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

b) Worksheet for making EPA calculations is 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 Direct Material Cost Category 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 b)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 describe 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 2035, 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 b)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 Category 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 b) 3 above. The resultant value for the Direct Material Cost Category 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: BLS indices ECI – Tables 3a describes 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 b)6.

8.Column (7) – Actual Costs: For the applicable computation period, the applicable “Cost Category” actual costs as defined in paragraph (1), entitled “Cost Category” 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. 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 for the category 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 copies 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 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.

(End of text)

B-232-H001 PAYMENTS--BASIC (JAN 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; provided that in no event shall the revised billing price exceed the sum of (i) the product of zero point zero (0.0) percentage points applied to the Section B Target Cost plus (ii) the Section B Ceiling Price.

(iii) The revised billing price determined as stated above shall be set forth separately in a supplemental agreement to this contract, which also shall set forth the computations upon which the revision of the billing price is based.

(iv) Any revision of the billing prices shall not affect the determination of the total final price(s) under paragraph (d) of the "Incentive Price Revision--Firm Target (FAR 52.216-16)" clause. After execution of the contract modification referred to in subparagraph (d)(3) of said clause, the total amount paid or to be paid on all invoices or vouchers shall be adjusted to reflect the total final price(s), and any additional payments, refunds, or credits resulting therefrom shall be promptly made.

(c) Allocated Total Contract Price of Each Vessel For the purpose of this requirement, the allocated total contract price of each vessel shall be established by multiplying the total contract price(s) by a percentage, expressed as a decimal carried to four decimal places, equal to that fraction whose numerator is the original unit target price of the vessel and whose denominator is the original total target price. The resulting dollar amount shall be rounded to the nearest one hundred thousand dollar ($100,000), upward or downward; provided that in no event shall the sum of the allocated total contract price of the vessel(s) exceed the total contract price(s). The aforesaid percentages of each vessel shall be revised, by contract modification, in the event that either:

(1) Equitable adjustments to the unit target prices of the vessels result in unit target prices of a substantially different proportion to the total target prices than previously provided for under this subparagraph (c); or

(2) Incurred costs indicate that a revision to the percentages is appropriate; provided, however, any such revision shall not be made more frequently than at the end of a calendar quarter unless the total contract price(s) is(are) limited to the contract ceiling price(s) and the contract ceiling price(s) is(are) adjusted during the calendar quarter.

(d) Invoices Invoices may be submitted every two weeks, but not more frequently; provided, however, that if after contract award more frequent progress payments are approved by the cognizant Government authority, this requirement shall be modified accordingly without additional consideration by the Contractor to the Government for such modification. No payment will be required to be made upon invoices aggregating less than five thousand dollars ($5,000).

The Contractor shall certify on each invoice:

(1) The percentage of physical progress in the performance of work on the vessel as a decimal carried to four places; and

(2) The allowable costs incurred in the performance of the work on the vessel as of the date the invoice is submitted. Such certification shall provide for cost category reporting in accordance with the Contractor's normal accounting system and shall be broken down into direct material, direct labor, and indirect costs.

(e) Physical Progress and Weighting Factors

(1) Within sixty (60) days after contract award the Contractor shall submit a progressing system description for review and approval by the Contracting Officer. Upon approval of such system, progress payments shall be in accordance with the approved system. Subsequent revisions to the approved system shall be submitted to the Contracting Officer for approval prior to implementation.

(2) The mutually agreed upon weighting factors for the categories of labor and material for each vessel are set forth in Attachment J-16, to this contract. The weighting factors shall be revised quarterly concurrent with the billing price revisions specified in paragraph (b). Notwithstanding the above, revision of weighting factors may be requested by either party when factual data indicate that the weighting factors then in use are no longer representative of the actual labor and material distribution. Revisions of weighting factors shall be supported by detailed (estimated final) direct material, direct labor, and indirect costs and additional data concerning the cause of the change in the weighting factors. Any change in the weighting factors shall be set forth in a supplemental agreement to this contract.

(f) Incurred Costs For the purpose of this contract requirement, "incurred costs" are those costs identified through the use of the accrual method of accounting, as supported by the records maintained by the Contractor and which are allowable in accordance with Part 31 of the Federal Acquisition Regulation (FAR) and Part 231 of the Department of Defense FAR Supplement (DFARS) in effect on the effective date of this contract and include only:

(1) Costs for items or services purchased directly for the contract that have been paid by cash, check, or other form of actual payment; or when the Contractor is not delinquent in paying costs of contract performance in the ordinary course of business, costs incurred, but not necessarily paid, for items or services purchased directly for the contract and associated financing payments to subcontractors provided payments will be made;

(i) In accordance with the terms and conditions of a subcontract or invoice; and

(ii) Ordinarily prior to the submission of the Contractor's next payment request to the Government; and

(2) Costs incurred, but not necessarily paid, for materials issued from the Contractor's stores inventory and placed in the production process for use on the contract, for direct labor, for direct travel, for other direct in-house costs and for properly allocable and allowable overhead (indirect) costs, all as shown by records maintained by the Contractor for the purpose of obtaining payment under Government contracts, provided that the Contractor is not delinquent in payment of costs of contract performance in the ordinary course of business; and

(3) With respect to allocated and allowable costs of pension contributions, when pension contributions are paid by the Contractor to the retirement fund less frequently than quarterly, accruals of the costs of these pension contributions shall be excluded from the Contractor's incurred costs until such costs are paid. If pension contributions are paid on a quarterly or more frequent basis, accruals of such costs may be included in the Contractor's incurred costs, provided that the pension contributions are paid to the retirement fund within thirty (30) days after the close of the period covered by payment. If payments are not paid within such thirty (30) day period, pension contributions shall be excluded from the Contractor's incurred costs until payment therefor has been made.

(4) Incurred costs shall not include any costs which are required under any requirement of this contract “”to be reimbursed or paid by the Government to the Contractor or by the Contractor to the Government other than through an equitable adjustment in the contract price(s).

(5) If an overpayment is made relative to this paragraph (f), interest shall be charged at the prevailing per annum rate established by the Secretary of the Treasury, pursuant to Public Law 92-41, from the date such overpayment is made until the date the overpayment is fully recovered.

(g) Retentions

(1) Upon preliminary acceptance of each vessel and upon the submission of properly certified invoices, the

Government will pay to the Contractor the amount withheld under paragraph (a) of this requirement in respect of that vessel in excess of (i) a performance reserve in the amount of one and one-half percent (1.5%) of the total contract price for such vessel, or (ii) one hundred thousand dollars ($100,000), whichever is greater. If at any time it shall appear to the Government that the amount of performance reserve may be insufficient to meet the cost to the Government of finishing any unfinished work under the contract for which the Contractor is responsible, or of correcting defects for which the Contractor is responsible which are discovered prior to preliminary acceptance or during the guaranty period of any vessel, the Government may, in making payments under this requirement, deduct or withhold such additional amounts as it may determine to be necessary to render such reserve adequate; provided, that any additional amounts deducted or withheld on account of defects which are discovered during the guaranty period of the vessel shall not exceed the limit of the Contractor’s liability as set forth in the contract requirement entitled “Limitation Of Contractor’s Liability For Correction Of Defects”, reduced by the amounts of the cost incurred by the Contractor for work on such vessel because of Contractor responsible deficiencies which are discovered during the guaranty period of the vessel.

(2) The Government may, in its discretion, make payments prior to final settlement on account of the reserves established under this requirement, subject to such conditions precedent as the Contracting Officer may prescribe.

(3) The Government shall, at the time of final settlement, in accordance with the provisions of the contract requirement entitled “Final Settlement”, pay the Contractor the balance owing to it under the contract promptly after the amount of such balance shall have been determined.

(h) Certifications and Audits At any time or times prior to final payment under this contract, the Contracting Officer may have any invoices and statements or certifications of costs audited. The Contracting Officer may require the Contractor to submit, or make available for examination by the Contracting Officer or his designated representative, the supporting documentation upon which invoices, statements or certifications of costs are based. Each payment theretofore made shall be subject to reduction as necessary to reflect the exclusion of amounts included in the invoices or statements or certifications of costs which are found by the Contracting Officer, on the basis of such audit, not to constitute allowable costs.

Any payment may be reduced for overpayments, or increased for underpayments on preceding invoices.

(i) Reduction or Suspension The Contracting Officer may reduce or suspend payments after finding on substantial evidence any of the following conditions:

(1) The Contractor failed to comply with any material requirement of this contract (including but not limited to such requirements as quality, safety, care and protection).

(2) Performance of this contract is endangered by the Contractor’s

(i) Failure to make progress; or

(ii) Unsatisfactory financial condition

(3) Inventory allocated to this contract substantially exceeds reasonable requirements.

(End of text)

Applicable CLINs: 1001, 2001, 3001, 4001, 5001, 6001, 7001

SECTION C - DESCRIPTIONS AND SPECIFICATIONS

The following have been modified:

PART 3: STATEMENT OF WORK, DETAIL DESIGN AND CONSTRUCTION (Applicable to all CLINs

EXCEPT 8006)

C.3.041 PROGRAM MANAGEMENT

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

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

A major subcontractor is defined as Single System Vendor (SSV), Noise Control Consultant (NCC), Integrated Logistics Support (ILS) Contractor or Design Agent. Required major subcontractors are SSV and NCC. Optional major subcontractors are ILS Contractor and Design Agent. If the Offeror chooses to utilize an ILS subcontractor, the minimum required corporate experience is five (5) years in logistics management for shipbuilding programs similar in scope and complexity to the T-AGOS 25 Class requirements. If the Offeror chooses to utilize a Design Agent subcontractor, the minimum required corporate experience is five (5) years with emphasis in contract design, detail design, production design, ship system integration, and mission system integration similar in scope and complexity to the T-AGOS 25 Class requirements.

The Contractor shall identify problems and potential problems in accordance with the Section C clause entitled “C-

243-H001 CONTRACTOR PROBLEM IDENTIFICATION REPORTS (NAVSEA)(OCT 2018)”.

C.3.041.1 SINGLE SYSTEM VENDOR

The Contractor shall select and obtain the services of a SSV no later than the Post Award Conference (PAC). The SSV shall have a minimum of five (5) years’ experience in: design, fabrication, and integration of main propulsion plants; controls for marine applications; integration of the Electric Propulsion System with the central power plant;

Machinery Central Control System (MCCS), and interfaces with the ship controls, including maneuvering systems and bridge controls.

No substitutions shall be made without Contracting Officer approval. All requests for substitutions must provide a detailed explanation of the circumstances necessitating the proposed substitutions and any other information requested by the Contracting Officer necessary for a determination to approve the proposed substitution. All proposed substitute subcontractors must have qualifications that are equal to the qualifications of the firm to be replaced. The Contracting Officer will evaluate such requests and will notify the contractor no later than 60 days of their approval or disapproval thereof. The Contracting Officer will be the sole judge of the adequacy of the qualifications of any proposed substitute subcontractor.

The Shipbuilder cannot be the SSV.

C.3.041.2 NOISE CONTROL CONSULTANT (NCC)

The Contractor shall select and obtain the services of a NCC no later than the PAC. The NCC shall have a minimum of five (5) years corporate experience in ship noise analysis and the development of the acoustic designs and treatments. The acoustic designs and treatments will address ship's noise, including airborne and structure borne noise impacting habitability, vibration, self-noise impacting the operation of Surveillance Towed Array Sensor System (SURTASS) systems, and radiated noise.

C.3.041.3 INTEGRATED MASTER SCHEDULE

The Contractor shall prepare, implement, and maintain an event-based Integrated Master Schedule (IMS) (DI-003) in accordance with the Integrated Program Management Data and Analysis Report (IPMDAR) that depicts all activities required for the performance of this Contract.

The Contractor shall utilize the Integrated Master Schedule (IMS) to schedule and track all program activities defined in the Contract Work Breakdown Structure (CWBS). The Contractor shall include key events, milestones, and activities from Contract award through delivery of each ship in the IMS. Key events and milestones include, but are not limited to, Contract Award (CA), Preliminary Design Review (PDR), Critical Design Review (CDR), Production Readiness Review (PRR), Start of Construction (SOC), Launch Readiness Review (LRR), Docking, Undocking, Propulsion Light Off, Trials Readiness Review (TRR), GFE In Yard Need Dates (IYND) and Delivery as well as construction and testing key events such as Keel Laying, Ship Launch, Builder’s Dock Trials (BDT), Builder’s Sea Trials (BST) and Acceptance Trials (AT).

The Contractor shall identify activities leading up to the key events and milestones in the IMS as well as critical paths for completion of each key event and milestone. The Contractor shall maintain the IMS current with schedule modifications and completed tasks. The Contractor shall prepare a Summary Master Schedule (DI-003-01). The Contractor shall prepare a Key Events and Milestone Schedule (DI-003-02) and a Baseline Schedule (DI-003-03).

All schedules shall be kept current with modifications and completed tasks. The Contractor shall prepare the following intermediate schedules as an integral part of the IMS:

C.3.041.3.1 DETAIL DESIGN SCHEDULE

The Detail Design Schedule (DI-003-04) shall plan and track the time phased approach to the design and engineering work required, including the tasks that are to be performed by subcontractors. This schedule shall show the interaction and interdependencies using logical steps, such as system design, completion of major procurement specifications, vendor design information, test memos and preparation of working drawings for hull, machinery, and electrical. Design Reviews shall be shown in this schedule.

C.3.041.3.2 DRAWING AND DOCUMENTATION SCHEDULE

The Drawing and Documentation Schedule (DI-003-05) shall plan and track all drawings (including those provided to the Regulatory Bodies for approvals and information purposes), modeling and simulation reports, calculations, analyses, and associated lists.

C.3.041.3.3 PROCUREMENT SCHEDULE

The Procurement Schedule (DI-003-06) shall plan and track target dates for placement of subcontracts, purchase orders, release for manufacture, and the delivery dates. The Contractor shall identify long-lead time material (greater than 6 months). The Contractor shall identify the interaction and interdependencies of major subcontracts, material procurement, and the production plan.

C.3.041.3.4 ERECTION SCHEDULE

The Erection Schedule (DI-003-07) shall plan and track the work required for the fabrication of modules, joining of modules and erection sequence up until launching of the vessel.

C.3.041.3.5 PRODUCTION / OUTFITTING MASTER SCHEDULE

The Production/Outfitting Master Schedule (DI-003-08) shall plan and track all major elements of work and materials needed and required in the construction and outfitting of the ship including durations and completion of key events.

C.3.041.3.6 TEST AND TRIALS SCHEDULE

The Test and Trials Schedule (DI-003-09) shall plan and track the phased, sequenced schedule for the verification program, including all verification events, analysis, inspection, testing, and trials. The schedule shall also include the list of entities responsible for test approvals (regulatory or Navy) in accordance with the Attachment J-8, Certification Matrix.

C.3.041.3.7 COMPARTMENT COMPLETION SCHEDULE

The Compartment Completion Schedule (DI-003-10) shall identify those events required to complete the mission spaces to permit Government installation and testing of the Mission Equipment.

C.3.041.3.8 EARNED VALUE MANAGEMENT SYSTEM

In the performance of this contract and using DFARS 252.234-7001 “EARNED VALUE MANAGEMENT SYSTEM (DEVIATION 2015-O0017) (SEPT 2015)”and 252.234-7002 “EARNED VALUE MANAGEMENT SYSTEM (DEVIATION 2015-O0017) (SEPT 2015)”, the Contractor shall establish, maintain, and use an integrated performance management system as a management tool for cost, schedule, technical performance, and risk management. Central to this integrated system, the Contractor shall use a validated Earned Value Management System (EVMS) in accordance with DFARS 252.234-7001 and DFARS 252.234-7002 (as stated above), and the EVMS guidelines contained in ANSI/EIA-748. To establish the integrated performance management system, the EVMS shall be linked to and supported by the Contractor’s management processes and business systems. The Contractor shall provide the Integrated Program Management Data and Analysis Report (IPMDAR), the processes required to implement and report data generated by an integrated performance management system.

The Contractor and all applicable subcontractors’ EVMS shall be certified by the cognizant Government agency.

New EVMS certifications and/or re-certifications at the award of this contract shall be certified by a cognizant Government agency. If the Contractor and / or subcontractors do not have a DoD validated EVMS, the Contractor shall provide a milestone plan setting forth the path to EVMS compliance and the Contractor shall be prepared to initiate an EVMS certification review within 150 days of contract award. The Contractor and subcontractors shall be responsive to DCMA Center of Excellence requirements to achieve EVMS certification in a timely manner within a period not to exceed six (6) months from the date of award.

Integrated Baseline Reviews (IBRs) shall be conducted as soon as practicable, however not later than 180 Days after contract award and not later than Production Readiness Review after each option award. The Contractor shall be prepared to present the contents and underlying assumptions of its time phased performance measurement baseline (PMB) to Government representatives during a joint IBR (Government, Contractor, and subcontractor) at the Contractor/subcontractor facilities. The IBR is a management process and subsequent IBRs may be required and shall be held when major contract changes are incorporated, or the contract undergoes a major restructure. If non-compliances with EVMS are detected during the IBR or during regular surveillance of the Contractor/subcontractor EVMS, then the Contractor shall also be prepared to demonstrate that its and subcontractor EVMS procedures comply with DFARS clause 252.234-7004, during a separate on-site visit by Government representatives. The Contractor shall provide ongoing access during contract performance to pertinent records and data that underlie and support the cost and schedule data reported.

If cost or incentive subcontracts with a single subcontractor exceed $100,000,000, then the Contractor shall require the subcontractor to submit subcontractor EVMS reports. The Contractor shall manage all subcontracts, including those that are Firm Fixed Price (FFP), to include integration of the subcontractor’s plans into appropriate schedules with sufficient detail.

The Integrated Program Management Data and Analysis Report (IPMDAR) is the primary communication link between the Contractor and the Government for cost and schedule reporting information. Upon contract award, the Contractor shall prepare and submit the following reports for CLINs 1001, 2001, 3001, 4001, 5001, 6001, & 7001:

a. Integrated Program Management Data and Analysis Report (IPMDAR) (DI-002)

b. Contract Funds Status Report (DI-004)

C.3.041.3.9 COST AND SOFTWARE DATA REPORTING

In accordance with Statute 10 USC 2334 Sec. 842, Independent Cost Estimation and Cost Analysis; DoDI 5000.02, Operation of the Adaptive Acquisition Framework; DFARS 252.234-7003, Notice of Cost and Software Data Reporting System; and DFARS 252.234-7004 Cost and Software Data Reporting System (CSDR), the Contractor shall establish, implement, and maintain a CSDR in accordance with the CSDR Plan, Attachment J-25. All aspects of the scope of work shall be included in the CSDR.

The CSDR will focus on the collection of actual total Contract costs related to the design and construction of the T- AGOS 25 Class of ships. The Contractor shall prepare and submit the following reports:

a. Cost Data Summary Report (DD Form 1921) (DI-005)

b. Functional Cost-Hour Report (DD Form 1921-1 Part 1) (DI-006)

c. Contractor Business Data Report (DD Form 1921-3) (DI-007)

The Contractor shall host a CSDR Readiness Review as a splinter to the first Ship Production Progress Conference (SPPC) review (month 4, see C.3.042) using the guidance found in the CSDR Readiness Review Guide found at https://cade.osd.mil/content/cade/files/csdr/guidance/CSDR Readiness Review Guide_Final_Mar2021.pdf. In support of the CSDR Readiness Review, the Contractor shall complete and provide the Resource Distribution Table (RDT) Attachment J-26 in accordance with the RDT Instructions found at https://cade.osd.mil/Files/Policy/RDT_Instructions.pdf. The Contractor shall update and provide the RDT as needed during the contract period of performance. Prime Contractors are responsible for flowing down CSDR requirements contained in their prime contracts to all subcontractors who meet the reporting thresholds specified in DoDI

5000.02. The Contractor shall flow down the requirement for CSDR reporting to subcontractors with a subcontract value that exceeds $50 million. Additional CSDR documentation requirements will be reviewed at the CSDR Readiness Review. The Contractor shall prepare and present the program approach to satisfy all contractually required CSDR tasks.

C.3.041.4 CONTRACT WORK BREAKDOWN STRUCTURE (CWBS)

The Contract Work Breakdown Structure (CWBS) shall be prepared in accordance with (Military Standard) MIL- STD-881, Appendix E – Sea Systems. The Contractor may also plan and execute the work under an internal WBS employed by the Contractor. Internally, the Contractor may use an internal WBS that is consistent with the Contractor’s construction processes (e.g. modular-based construction practices) and reflects the planning and execution of work. The Contractor shall map the internal WBS at an appropriate level CWBS to support reporting in a MIL-STD-881 compliant product. The Contractor shall develop and maintain a Contract Work Breakdown Structure (DI-008). The CWBS shall provide traceability of all work performed by the Contractor and each sub-contractor/vendor.

C.3.041.5 RISK MANAGEMENT

The Contractor shall establish and execute a risk, issue, and opportunity (RIO) management program to identify risks, issues, and opportunities related to cost, schedule, and technical aspects. The RIO management program shall identify and implement mitigating actions for risks, and plans of action for issues and opportunities, from time of Contract award through the guaranty period. The Contractor shall prepare a Risk Management Plan (DI-009) and Risk Summary Report (DI-010).

C.3.041.6 QUALITY MANAGEMENT SYSTEM

The Contractor shall utilize a Quality Management System (QMS) certified to ANSI/ISO/ASQ 9001-2008 in the execution of this Contract. If the Contractor does not have a certified QMS ANSI/ISO/ASQ 9001-2008, certification shall be completed no later than 180 days after Contract award. The Contractor shall develop a Quality Assurance Program Plan (DI-011) defining the quality program, processes, procedures, and metrics to be employed for this Contract. The Contractor shall flow down QMS language in all subcontracts. The Contractor shall provide the Government access to all Contractor and subcontractor/vendor quality records generated in the performance of this Contract.

C.3.041.7 CORRECTIVE ACTIONS

The Contractor shall respond to all Corrective Action Request(s) (CAR) issued by the Government. For each CAR, the Contractor shall prepare a Corrective Action Response Report (DI-012).

C.3.041.8 PURCHASE ORDERS

The Contractor shall develop and maintain a Purchase Order Index (DI-013). The Contractor shall provide all Purchase Orders (DI-014), including Approval Purchase Orders (DI-014-01) and General Purchase Orders (DI- 014-02). Purchase Orders (POs) shall include all subcontractor and sub-tier POs, all attachments including general terms and conditions and special terms and conditions (unless otherwise directed by the Government), and their revisions shall contain complete information to identify all material, services and equipment required for the design, long lead time items, construction, verification, inspection, testing, and support of the vessel and its use shall be provided.

C.3.041.9 PROGRAM PROTECTION

The Contractor shall execute Program Protection measures to:

a. Identify and mitigate supply chain risks to the vessel.

b. Prevent counterfeit parts and malicious insertion.

c. Prevent mission loss by supplier delivered Information and Communications Technology (ICT).

In addition to accomplishing the security measures embodied in the National Industrial Security Program (NISP), the Contractor shall prepare a Program Protection Implementation Plan (PPIP) (DI-015) using Attachment J-11, Program Protection Implementation Plan (PPIP) Instructions.

Once approved, the Contractor shall utilize the PPIP in implementing the following:

a. Identification, Protection, and Management of Critical Program Information and Critical Components.

b. Management of System Security Activities.

c. Management of risks to mission-critical system’s functionality.

d. Management of risks to advanced technology from foreign collection.

e. Management of risks associated with design vulnerability.

f. Management of risks associated with supply chain exploitation or insertion.

Program protection shall identify and mitigate all risks to the vessel, to prevent counterfeit parts, malicious insertion, and battlefield loss. If supported by the information system, commercially available malicious code protection mechanisms (i.e. antivirus or similar) on all servers and workstations shall be implemented and shall be valid through the guaranty period. A DISA Approved Anti-Virus/Anti-Spyware product shall be provided. The Contractor shall strictly apply and enforce the requirements listed in the PPIP through the end of the guaranty period. The Contractor shall prepare: Supply Chain Risk Management (SCRM) and Counterfeit Prevention Report (DI-016) and Supply Chain Risk Management (SCRM) and Counterfeit Prevention Notification (DI-017).

The Contractor shall prepare a Program Protection Compromise Notification (DI-018) to alert the Government of loss or compromise per occurrence. Per DFARS 252.204-7012, SAFEGUARDING COVERED DEFENSE INFORMATION AND CYBER INCIDENT REPORTING (DEC 2019), a cyber incident shall also be reported within 72 hours to DoD at https://dibnet.dod.mil.

C.3.041.9.1 OPERATIONAL SECURITY

In accordance with the NISP, and as specified in the Attachment J-13, Contract Security Classification Specification (DD Form 254), the Contractor shall develop, implement, and maintain an Operational Security (OPSEC) program to protect classified and controlled unclassified activities, information, equipment, and material used or developed by the Contractor and by any subcontractors and vendors during the performance of this Contract. The Contractor shall be responsible for subcontractor’s implementation of the OPSEC requirements of this Contract.

C.3.041.10 COMMUNICATION SECURITY ACCOUNT

The Contractor shall be required to have 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.

C.3.041.10.1 DEFENSE COURIER SERVICE (DCS)

The Contractor shall require use of the Defense Courier…