N32205-16-R-3500.docx

N32205-16-R-3500

Section SF 1449 - CONTINUATION SHEET

Days

Base Period Charter Hire

FFP

Base Period charter Hire FOB: Destination

NET AMT

Days

Option 1 Charter Hire

Option 1 Charter Hire

NET AMT

Days

Option 2 Charter Hire

Option 2 Charter Hire

NET AMT

Days

Option 3 Charter Hire

Option 3 Charter Hire

NET AMT

Days

Option 4 Charter Hire

Option 4 Charter Hire

NET AMT

SECTION B-1

1. BOX FORMAT

Vessel(s):

Owner, DUNS, CAGE, TIN (and TIN of parent, if applicable):

Solicitation Number (date):

N32205-16-R-3500 (December 2016)

Contract Number (date):

TBD (TBD)

1. Vessel Required:

See RFP PWS

2. Place/Range of Delivery:

Pearl Harbor, HI

3. Place/Range of Redelivery:

Pearl Harbor, HI

1. Charter Period

Firm Period – 1 October 2016 to 30 September 2017 Option 1 – 1 October 2017 – 30 September 2018 Option 2 – 1 October 2018 – 30 September 2019 Option 3 – 1 October 2019 – 30 September 2020 Option 4 – 1 October 2020 – 30 August 2021

5. Lay Days:

Commencing/Canceling - 01 October 2016

6. Terms/Conditions/Attachments added, deleted or modified:

Vessel(s):

THE OFFER IS FIRM UNTIL AN AWARD IS MADE UNLESS WITHDRAWN.

9. Amendments Acknowledged (amendment numbers and dates)

12. Remittance address for hire (if other than box 10)

13. - 17. RESERVED

Vessel(s):

PER DIEM RATES

FIRM PERIOD

FULL OPERATIONAL STATUS RATES

18A.

USD per diem

FIRST OPTION PERIOD

FULL OPERATIONAL STATUS RATES

18B.

USD per diem

SECOND OPTION PERIOD

FULL OPERATIONAL STATUS RATES

18C.

USD per diem

THIRD OPTION PERIOD

FULL OPERATIONAL STATUS RATES

18 D.

USD per diem

FOURTH OPTION PERIOD

FULL OPERATIONAL STATUS RATES

18 E.

USD per diem

21. Indicate crewing arrangements during ROS (Less Than 10 Days) and ROS (10 Days and Longer):

22. Other Costs:

Cancellation Fee: The Contractor and Government agree the purpose of this clause is to induce the Contractor to offer to and to provide the required services when the Contractor otherwise would not offer to provide them because of the Contractor's inability to recover its out-of-pocket costs in the event the Government does not exercise an option to extend the term of the contract or terminates the contract for the convenience of the Government.

In the event the Government does not exercise an option to extend the term of the contract or terminates the contract for convenience, the Contractor shall be entitled to not-to-exceed cancellation costs subject to the following conditions and according to the following schedule:

If offeror intends to propose cancellation fees then the below six lines will need to be completed by offeror.

"Cancellation costs" means, and only means, costs specifically identified by the Contractor in its proposal and actually incurred by the Contractor between contract award and vessel delivery to the Government including, and limited to, the following categories of costs: costs incurred by the Contractor for vessel acquisition and modification or conversion costs, and only to the extent such modification, or conversion costs were incurred in order for the vessel to meet contract requirements. The Government will ensure it has sufficient working capital funds for these cancellation costs.

When requesting payment of cancellation costs, the Contractor shall provide evidence satisfactory to the Contracting Officer verifying that Contractor actually incurred the specified categories of cancellation costs prior to delivery of the vessel to the Government and the amount thereof.

The cancellation costs must be reasonable, allowable, and allocable to the contract. The Government will not be obligated in any event to reimburse the Contractor for the specified categories of cancellation costs in excess of the amount allotted in the schedule above for each contract period regardless of anything to the contrary in the clause entitled

"Termination for Convenience of the Government." The Contractor agrees that payment of the specified cancellation costs according to the schedule above for any contract period fully compensates the Contractor for the specified categories of cancellation costs. The Contractor waives any right it may have to claim any additional costs for the specified categories of cancellation costs in the event such cancellation costs become payable, whether as a result of a termination for convenience or as a result of the Government's failure to exercise an option. As used in this clause, the total amount payable by the Government for the specified categories of cancellation costs in the event the Government does not exercise an option or terminates the contract for convenience is as set forth in the schedule above.

This clause does not limit the rights of the Government under the clause entitled "Default" or under the clause entitled "Termination for Convenience of the Government."

Note: Pursuant to 10 USC§2401, the Government is prohibited from entering into a vessel lease or charter that contains a substantial termination liability. Offerors who submit substantial termination liabilities will not be considered for award. A substantial termination liability is defined by the statute as:

i. An agreement by the U.S., under the contract, to pay an amount greater than 25% of the value of the vessel for the termination liability; or

ii. An agreement by the U.S., under the contract, to pay an amount greater than 50% of the value of the vessel for the sum of the termination liability and the value of the total payments attributable to capital-hire.

Vessel(s):

LAYDAYS PROPOSED

GENERAL

25. Vessel type and, if applicable, MARAD design type:

a. (ft)

b. (m)

a. (ft)

b. (m)

a. (ft)

b. (m)

a. (ft)

b. (m)

a (LT)

b. (M)

a. (ft)

b. (m)

a. (hp)

b. (kW)

a. (hp)

b. (kW)

48. Classification society entered and class assigned:

No

Vessel(s):

GEAR

54. Number/location/SWL capacity of winches, derricks, booms, and cranes

CASUALTIES/DEFICIENCIES

55. Has vessel been involved in any serious grounding or collision within a period of twelve months from the submission date of this proposal? (include full description if "yes")

56. Are any deficiencies lodged by any regulatory body outstanding against the Vessel (include full description if "yes")

Vessel(s):

FUEL CONSUMPTION AT SERVICE SPEEDS

60b. Average fuel consumption at anchor(net bbls at 60 deg F and grade(s))

FUEL CONSUMPTION AT VARIABLE SPEEDS

63. Average fuel consumption (net bbls at 60 deg F for all grades and all engines/auxiliaries utilized while underway over moderate-weather passages

63A: Grades Consumed:

63 B. LADEN TO SUMMER MARKS

Knots

(NM)

Net bbls per mile Net bbls per day Operating Range

01>

02>

03>

PLEASE COMPLETE BOX 63B IN ENTIRETY

04>

05>

06>

07>

08>

09>

10>

11>

12>

13>

14>

15>

Vessel(s):

FUEL GRADE

64. Minimum vessel fuel specifications

Vessel(s):

SECTION B-2

CHARTER HIRE

2.1 Hire Rates. Charter hire for services under this Charter Party shall be payable at the applicable rates stipulated in Box 14 and shall be earned at the expiration of each fifteen (15) days of the charter period. Except as otherwise provided herein, said hire rates shall be considered payment in full for all services of the Vessel and Associated Equipment under this Charter including all overtime (including but not limited to crew overtime/penalty time required for the opening and closing of hatches), penalty time, bonuses, payments, and emoluments payable to Master, Officers, and crew for services under this Charter, irrespective of the geographic scope of said service and including the carriage of ammunition and hazardous cargoes. Said hire rates are exclusive of the costs of fuel and port charges and other stevedoring costs such as loading, securing and discharging cargo.

2.2 Loss of Vessel. Should the Vessel be either lost or missing and presumed lost, Charterer may, at its sole discretion, terminate this Charter, in which case hire shall cease to be payable at the time of the loss or, if said time is unknown, at the time of the Vessel’s last received communication. Similarly, should the Vessel become a constructive total loss, Charterer may, at its sole discretion, terminate this Charter, in which case hire shall cease to be payable at the time of the casualty resulting in the constructive loss. The Vessel shall be considered missing and presumed lost when, after a reasonable lapse of time, it fails to reach its next scheduled port and reasonable efforts to contact it fail.

SECTION C

Section C - Descriptions and Specifications

PERFORMANCE WORK STATEMENT:

1. Scope of Work.

This Performance Work Statement is for the services of one (1) US Flagged, Jones Act qualified vessel required to support the Joint Base Hickam, Pearl Harbor HI. The Contractor will be responsible for a vessel to support in port and offshore personnel and supply transfers up to a distance of fifty (50) nautical miles (NM) from Joint Base Hickam. The Contractor shall be required to safely transfer personnel and supplies (up to 44 personnel and 10 pallets of supplies) to and from an SSBN/SSGN in the open ocean. The Contractor shall provide a vessel and all necessary management, supervision, personnel, labor, materials, fuel, and equipment required to support the personnel and supply transfers. The Contractor shall make the vessel available for operations within 8 hours notification.

2. Operational Profile.

The vessel shall be able to safely operate in seas up to eight (8) feet and winds up to and including 29 kts. The vessel shall conduct approximately eighty (80) Brief Stop for Passengers (BSPs) events annually in open-ocean within 8 hours notification. The average BSP shall be conducted within a 6 hour window.

The vessel shall act as an escort vessel in support of submarine sea trials by maintaining communications with a submerged submarine via government-provided and government-operated hull-mounted underwater communications equipment. These events may occur 2 times per year, 24 hours a day, and approximately one (1) week in duration.

The vessel shall support any other lawful mission required by the Navy.

3. Minimum Characteristics. The vessel shall meet the following minimum characteristics:

3.1 Flag: US Flagged, Jones Act qualified

3.2 Transit Speed: 15 knots

3.3 Sewage Capacity: 24 hrs.

3.4 Tonnage: 50 tons and reserve buoyancy to support being towed by Naval warship with a maximum 12-inch towing hawser.

3.5 Deck Space: Contractor will provide sufficient area on the weather deck of the vessel for installation of two crew-served machine gun mounts, one on the port side and one on the starboard side as well as sufficient space for the loading and safe transfer of ten (10) pallets.

3.6 Passenger Capacity: Forty-four (44) Government personnel during outbound and return transit to/from harbor.

3.7 Brow: Brow to be anchored to be flush with or above the deck of an SSBN (approximately 11 ft above the waterline) and able to hinge with the movement of the seas and be able to be deployed from either port or starboard sides. Brow shall allow for the safe transfer of two (2) passengers at a time and shall be a minimum of two (2) ft in width for the entire length. Brow shall be of sufficient length to reach the deck of an SSBN. The end of the brow shall be fitted with rubber-coated rollers to prevent metal-to-metal contact between brow and submarine deck. Each side shall have handrails and midrails.

3.8 Classification: USCG Certified, Subchapter T

3.9 Endurance: Seven (7) days with an operational range of 500 NM.

3.10 Lines: Equipped with sufficient synthetic lines to perform port services.

3.11 Maximum Draft: 33 Feet

3.12 Surface/Sub-Surface Fendering: Non-marking, clean and sufficient to prevent metal-to-metal contact with surface and sub-surface vessels under all conditions of pitch and roll in support alongside boarding at sea. Fendering shall include propeller guards, if applicable.

3.13 Berthing And Messing: One Government rider may be required to berth overnight and require meals during operations

3.14 Lifting Equipment: Crane/davit system for lifting pallets of supplies to and from the deck of SSBN/SSGN capable of lifting and transporting loads up to 1,000 lbs.

3.15 Minimum Length: 90 ft

3.16 Navigation Equipment: Shall have radar, fathometer, GPS and AIS, which shall be capable of being secured (turned off).

3.17 Communication Equipment: Shall have external loud hailer, two sets each of fixed and portable VHF radios and shall also have a transceiver capable of working at 2-30 MHz at 100 watt output.

4. Mission Equipment (ME).

ME to be added includes Pacific Land Mobile Radio (PLMR) capability comparable to a Motorola XTL 5000 radio and a UHF (380-440MHZ) antennae (if necessary). Consists of the following units: mid power radio transceiver (2” x 7” x 7.8”, 6.1 lbs); control head (2” x 7.1” x 2.5”, 6.1 lbs); mid power radio transceiver and control head dash mount (2” x 7.1” x 9.1”, 6.1 lbs); high power transceiver (2.765” x 8.08” x 12.31”, 8.8 lbs.)

5. Contractor Facility Clearance. The contractor shall possess a SECRET facilities clearance prior to delivery of the vessel, which shall be documented in Attachment (DD-254).

5.1 Personnel Clearances. The Master and the entire crew shall hold SECRET clearances.

6. Port Services. It is anticipated the Government will provide all port services, however the Contractor shall arrange for all port services on a reimbursable basis during this charter. Port services shall include tugs, pilots, berthing, potable water, shore power, trash and garbage removal, oily waste removal, sewage removal, hazardous materials removal, line handlers, dedicated telephone service, and liberty launch services.

6.1 Port Charges and Expenses. The Government shall reimburse the Contractor for costs of port services associated with supporting Government mission operations. The Government shall not reimburse the Contractor for expenses incurred by the Contractor for services rendered for the convenience of the ship, its crew, or in connection with the Contractor’s business such as fees of underwriters, or expenses in moving the ship about the port to obtain stores or provisions, or transporting crewmembers for relief or convenience purposes.

7. Meals. The Contractor shall provide 3 meals for Government/Contractor personnel that are assigned to the vessel for 24hr/day operations. Meals shall have the most reasonably attainable degree of quality, quantity and nutritional value given the limited facilities available. Meal times shall be adjusted as necessary to accommodate testing evolutions.

7.1 Meal Reimbursement. The Contractor shall be responsible for collecting money due for meals directly from the Government rider. Government riders will pay $13.00 per day for a total of 3 meals. The Contractor shall not invoice the Government directly for any meals. The Contractor shall provide receipts to the Government riders for all meals served.

8. Provide Status Updates. The Contractor will be required to submit the following deliverables to the Contracting Officer on a weekly basis beginning one week after award and until successful delivery:

-Modification schedule timeline: Includes status updates of ship design, actual production of ship modifications, and regulatory body approval processes.

9 Information Assurance.

9.1 Information Security (InfoSec). The Contractor shall implement InfoSec measures for its contractor furnished unclassified information technology system(s) used in performance of this contract. InfoSec measures shall be compliant with DFARS 252.204-7012, Safeguarding of Unclassified Controlled Technical Information. At a minimum, the security standards extracted from the referenced National Institute of Standards and Technology (NIST) Special Publication 800-53, Security and Privacy Controls for Federal Information Systems and Organizations, or accepted equivalents, shall be incorporated into any InfoSec program the contractor establishes.

9.1.1 DFARS Compliance Certification. The contractor’s InfoSec measures shall be certified to be in compliance with DFARS 252.204-7012 by an accredited third party organization. The Contractor shall attain DFARS compliance certification within 60 days of commencement of performance under the contract, and shall maintain it continuously for the entire remaining period of performance. The Contractor shall notify the Contracting Officer within 24 hours if for any reason the certification is revoked. Costs associated with attaining and/or maintaining certification will not be reimbursed by the Government.

9.1.1.1Certification Documentation. The Contractor shall provide a copy of the third-party DFARS 252.204-7012 compliance certification to the Contracting Officer and COR(s) in accordance with the below schedule. The Government reserves the right to contact the certifying institution directly to obtain additional information or to confirm the validity of the certificate or certification process.

· Initial certification to be provided to the Government upon receipt.

· If base period is six months or less, the initial certification is considered valid for both the base and first option periods.

· Thereafter, the Government requires the contractor to submit annual recertification documentation no later than 14 days prior to end of current performance period, except if it is the last performance period of the contract.

9.1.2 Handling of Non-Public Information. In performance of this contract, the contractor may have access to DoD information not available to the general public or protected by public law or DoD policy. Such information includes but is not limited to: medical, proprietary, critical program information (CPI), personally identifiable information, and export controlled data. The contractor agrees to:

· Use and protect all such information from unauthorized disclosure IAW current Federal, DoD, and Navy instructions and regulations

· Return and/or electronically purge, upon Government request, any DoD information no longer required for contractor performance.

9.1.3 Remote Access to Government Networks. Use of public networks or computers (e.g., library, coffee shop) to access Government networks is strictly prohibited. Use of personally owned devices to access Government networks in support of this contract is permissible only if explicitly allowed by and addressed in the Contractor’s DFARS-compliant InfoSec policies.

9.1.4 Cyber Incident and Compromise Reporting. In addition to the reporting requirements contained in DFARS 252.204-7012, the contractor must immediately notify MSC of all cyber incidents or compromises, as defined in DFARS 252.204-7012(d)(2). The contractor shall also immediately notify MSC of all incidents involving classified information spillage onto unclassified networks or Personally Identifiable Information (PII) breaches. If immediate notification is not possible, then notification must be made no later than 24 hours after an incident has been identified or suspected. Initial cyber incident and compromise reports shall contain as much of the information required in DFARS 252.204-7012(d)(1) as can reasonably be provided in a timely manner. Submit initial and subsequent reports via encrypted email to all of the Government points of contact in the table below, as well as the COR(s). To the greatest extent practicable, MSC IA Ops and the COR(s) shall be copied on all correspondence with non-MSC Government agencies regarding reported incidents.

SECTION D

PACKAGING AND MARKING

THIS SECTION IS NOT APPLICABLE TO THIS SOLICITATION

SECTION E

1 INSPECTION

1.1 General

1.1.1 The Vessel and Associated Equipment shall be subject to the Government's inspection as to suitability for the required service prior to delivery and subject to subsequent inspections at any time during the currency of this Charter to determine continuing suitability for the required service as well as to determine whether the material condition of the Vessel and Associated Equipment will prevent effective operation during basic and optional periods (if any) of this Charter. Such inspections shall include but not be limited to:

(9) Acoustic Testing

1.1.2 The Government further reserves the right to have the Vessel surveyed at any time by an independent surveyor.

1.1.3 If in the opinion of the Government Inspector deficiencies exist that preclude the adequacy of the Vessel for the assigned service, a notice for correction will be issued. In the event that the stated deficiencies are not corrected in a reasonable period of time and in the opinion of the Contracting Officer (based upon the recommendation of the Government Inspector and/or the independent surveyor) the Vessel is inadequate for the intended service or unable to operate for the remaining period of the Charter as a result of these deficiencies, the Government reserves the right to cancel this Charter at no cost to the Government at any time during its term or to take any other action available under this Charter Party or authorized by law.

2 ACCEPTANCE

2.1 Acceptance is conditional upon approval by all applicable regulatory bodies and upon the Government’s determination that said vessel is operational in all respects.

2.1 Final Acceptance. Final acceptance of all services provided under this contact shall be made only upon certification of the final invoice as defined in the invoicing provisions contained in Section G.

3 EXCUSABLE DELAYS/EXCEPTIONS

3.1 Excepted events. Neither the Vessel, her Master, the Owner, nor the Charterer shall, unless otherwise in this Charter Party expressly provided, be responsible for any loss or damage or delay or failure in performing hereunder arising or resulting from any act of God; act of public enemies, pirates, or assailing thieves; arrest or restraint of princes, rulers, or people; seizure under legal process provided bond is promptly furnished to release the Vessel; flood; fire; blockade; riot, insurrection, or civil commotion; earthquake; or explosion. The Vessel shall have the liberty to sail with or without pilots, to tow and to be towed, to assist Vessels in distress, and to deviate for the purpose of saving life or property, or to go into dry dock or into ways with or without cargo, passengers or other personnel, as applicable, on board.

3.2 Notification. The Contractor shall notify the Contracting Officer in writing as soon as it is reasonably possible after the commencement of any excusable delay, setting forth the full particulars in connection therewith, shall remedy such occurrence with all reasonable dispatch, and shall promptly give written notice to the Contracting Officer of the cessation of such occurrence.

3.3 Reservation. The exceptions identified in E-3.1 above shall not be such as affect Owner's warranties respecting the condition of the Vessel, or the Owner's obligations respecting the loading, handling, stowage, carriage, custody, care, and discharge of the cargo. Defaults of subcontractors at any tier or the Owner’s failure to perform due to a labor disruption, labor dispute, or strike shall not constitute excepted events under E-3.1.

SECTION F

F-1 DELIVERY

The Vessel and all Associated Equipment shall be delivered to the Charterer at a port or place in accordance with Box 2 not later than 1600 hours local time at place of delivery on the canceling date stated in Box 5, the Owner giving written notice of readiness during office hours to the appropriate Government representative at the port or place of delivery on a working day (Saturdays, Sundays, or other recognized weekly days of rest, U.S. Government holidays, and holidays observed at the delivery port, whether national or local, shall not be considered working days). Government inspection of the Vessel shall be completed within a reasonable amount of time thereafter. Hire shall commence upon acceptance of the Vessel by the Charterer, but not before the commencing date stated in Box 5, unless approved in writing in advance by the Contracting Officer. The Charterer shall have the liberty to cancel this Charter at no cost to the Government should the Vessel or Associated Equipment not be ready in accordance with the provisions hereof by the canceling date stated in Box 5, said cancellation to be declared not later than twenty-four (24) hours after 1600 hours local time at place of delivery on the canceling date stated in Box 5, should the Vessel not be ready by that time. This paragraph shall not limit any right of the Government under this Charter Party or any right to take any other action authorized by law.

F-2 DELIVERY SCHEDULE

The Contractor shall, within 14 calendar days after contract award, prepare and submit to the Contracting Officer for approval a practicable schedule for delivery of the Vessel. The schedule shall show the order in which the Contractor proposes to perform any required dry docking or shipyard work necessary to prepare the Vessel for delivery, and the dates on which the Contractor contemplates starting and completing the salient features of the work. The schedule shall also show, with appropriate deviations and sequence logic, transit time and any other major activities, necessary to deliver the Vessel. The schedule shall be in the form of a progress chart of suitable scale to indicate appropriately the percentage of work scheduled for completion by any given date during the period. The Contractor shall enter actual progress on the approved progress chart and provide an updated copy to the Contracting Officer every 14 calendar days. If, in the opinion of the Contracting Officer, the Contractor falls behind the approved schedule, the Contractor shall take steps necessary to improve progress, including those that may be required by the Contracting Officer, without additional cost to the Government. In this circumstance, the Contracting Officer may require the Contractor to increase the number of shifts, overtime operations, days of work, or other activities necessary and to submit for approval any supplementary schedule or schedules in chart form as the Contracting Officer deems necessary to demonstrate how the approved rate of progress will be regained. Failure of the Contractor to comply with the requirements of the Contracting Officer under this clause shall be grounds for a determination by the Contracting Officer that the Contractor is not prosecuting the work with sufficient diligence to ensure delivery of the Vessel within the time specified in the contract. Upon making this determination, the Contracting Officer may terminate the contract in accordance with the default terms of this contract.

F-3 CONDITION

The Vessel and all Associated Equipment shall be, insofar as due diligence can make them so, seaworthy, properly and efficiently manned and trained, equipped, supplied, and in every way suitable and adequately fitted for and in all respects ready for the service contemplated under this Charter Party. Any Associated Equipment shall upon delivery be as described in this Charter Party and all cargo-handling equipment shall be rigged, secured, and operable. The Owner shall exercise due diligence to maintain the Vessel and Associated Equipment in such state during the period of this Charter Party.

F-4 VESSEL REDELIVERY

Unless lost, the Vessel shall be redelivered at a port or place in accordance with Box 3. The Charterer shall give the Owner no less than one (1) day’s notice of expected date and range of redelivery, and of actual port or place of redelivery. Redelivery notice shall not impair the Charterer’s right to exercise any options under this Charter.

F-5 PORTS/PLACES

F-5.1 Safety. The Charterer shall exercise due diligence to order the Vessel to safe berths or places (or alongside vessels or lighters reachable on her arrival and designated/procured by the Charterer) that the Vessel can approach, lie at, and depart from always accessible, always afloat. The Charterer shall not, however, be deemed to warrant the safety of any berth or place and shall not be liable or accountable for any loss, damage, injury, or delay resulting from any unsafe condition at any berth or place unless caused by the Charterer's failure to exercise due diligence as aforesaid. Any lightering will be at the expense of the Charterer; however, in the event the Charterer directs the Owner to arrange for lighterage services, the Owner shall make all necessary arrangements therefore.

F-5.2 Ice. The Vessel shall not be ordered or bound to enter any port or place inaccessible due to ice or at which lights, lightships, markers, or buoys on Vessel's arrival are (or are likely to be) withdrawn by reason of ice. The Vessel shall not be obliged to force ice. If a port or place to which the Vessel is ordered is inaccessible due to ice, the Master shall immediately notify the Charterer requesting revised orders and shall remain outside the ice-bound area. If there is danger of the Vessel being frozen in at any port or place, the Vessel shall, at Master's discretion, proceed to the nearest safe and ice-free position, at the same time requesting the Charterer's revised orders. Any delay or detention resulting from ice to be for the Charterer's account.

F-6 CHARTER PERIOD

This Charter Party shall be for the period designated in Box 4, commencing upon the Charterer's acceptance of the Vessel and continuing until either the date of her redelivery or the completion of the voyage then current, at the Charterer's sole option. Any option periods shall be in direct continuation; shall be without guaranty at the Charterer's sole option; and shall be declared as specified in FAR 52.217-8 and FAR 52.217-9 in Section I, below. Optional periods may be declared at any time prior to redelivery of the Vessel.

SECTION G

CONTRACT ADMINISTRATION DATA

1 DESIGNATION OF PRINCIPAL CONTRACTING OFFICER

The Principal Contracting Officer for this contract is:

RICHARD LEE ANDERSON, Contracting Officer (N103D)

2 RESERVED

3 COR

3.1 Upon contract award, the COR will be named in writing. As such, this individual will be responsible for monitoring the performance of the Owner and the adherence to the requirements of the contract as defined herein.

3.2 The COR shall provide technical guidance on a day-to-day basis, and perform routine inspections of the facility on behalf of the Contracting Officer. In no event, however, shall any understanding or agreement, modification, change order, or other matter deviating from the terms of the contract be authorized by the COR, or any other Government personnel, unless formalized by the proper documents executed by the Contracting Officer.

3.3 When in the opinion of the Owner, the COR, or any other Government personnel, requests effort outside the existing scope of the contract, the Owner will promptly notify the Contracting Officer. No action will be taken by the Owner under such technical instruction unless the Contracting Officer authorized the change.

4 INVOICE REQUIREMENTS

4.1 Invoicing receipt and payment actions are performed completely electronically, via Wide Area Workflow (WAWF). See DFARS 252.232-7006 below for WAWF instructions. DFARS Clause 252.232-7003 “Electronic Submission of Payment Requests” is hereby incorporated by reference.

4.2 RESERVED

4.3 Submission of Invoices. All invoices, requests for equitable adjustment, or similar requests for payment under this Charter shall be submitted not later than six (6) months after the end of the relevant period of service. All invoices, requests for equitable adjustment, or similar requests for payment not so submitted shall be deemed waived by the Owner.

5 PAYMENT. Payment shall be made for items accepted by the Government that have been delivered to the delivery destinations set forth in this contract. The Government will make payment in accordance with the Prompt Payment Act (31 U.S.C. § 3903) and Office of Management and Budget prompt payment regulations at 5 CFR part 1315. In connection with any discount offered for early payment, time shall be computed from the date of the invoice. For the purpose of computing the discount earned, payment shall be considered to have been made on the date which appears on the payment check or the specified payment date if an electronic funds transfer payment is made.

6 ASSIGNMENT. The Owner or its assignee may assign its rights to receive payment due as a result of performance of this contract to a bank, trust company, or other financing institution, including any Federal lending agency in accordance with the Assignment of Claims Act (31 U.S.C. § 3727). However, when a third party makes payment (e.g., use of the Government wide commercial purchase card), the Owner may not assign its rights to receive payment under this contract.

7 PAYMENT OF FIXED PRICE PER DIEM

7.1 Payment of per diem on the day the vessel is delivered or redelivered will be made at the full Per Diem rate.

7.2 For periods of operation of less than a full 24-hour day (excluding delivery or redelivery days) the per diem rate will be prorated in accordance with the clause entitled “Determination of Applicable Fixed-Price Per Diem.” Calculation of per diem will be based on Greenwich Mean Time.

7.3 Where a vessel has a voyage in progress on the date of contract expiration the applicable per diem rate for that vessel for the period beyond the expiration date shall be the per diem rate that is in effect on the last day of the contract for that vessel.

8 REIMBURSABLE SUPPLIES AND SERVICES, TIME CHARTER

8.1 The Government will reimburse the Contractor only for the actual price paid for those supplies and services that are expressly identified as reimbursable items by this contract. “Actual price" paid by the Contractor for such supplies and services, includes tax paid, if any, and reduced by any and all credits and rebates, whether accrued or realized, associated with the supplies and services provided. “Actual price” does not include material handling charges, overhead, general and administrative costs, profit, or any other indirect cost that is in any way associated with the Contractor’s purchase or provision of such supplies and services. The parties expressly agree that the offered and accepted daily rate includes all costs incurred or paid by the Contractor, including but not limited to material handling charges, overhead, general and administrative costs, or profit, that are in any way associated with the Contractor’s purchase or provision of such supplies and services.

8.2 To be eligible to receive reimbursement for services and supplies identified in this contract as reimbursable items and obtained in support of this contract, the Contractor shall obtain at least three quotes for each transaction in excess of $2,500 to ensure that adequate price competition was sought or the Contractor shall provide an acceptable justification as to why it was impracticable to do so. In the case of fuel purchases, unless directed otherwise by the Contracting Officer, the Contractor shall provide the documentation listed in subparagraphs (i) through (iii) below to the Contracting Officer for approval prior to purchasing fuel. For purchases of services and supplies and other than fuel, the Contractor need provide the aforementioned documentation only when requested by the Contracting Officer. The Contractor shall maintain documentation of all reimbursable purchases until three years after the contract is completed and shall provide access to and copies of such documentation when requested by the Contracting Officer.

8.3 The Contracting Officer may reduce the reimbursement by any amount above that which the Contracting Officer finds, in his/her sole discretion, is greater than that which is fair and reasonable for the supplies or services provided, giving due consideration to the facts and circumstances prevailing at the time that the Contractor procured the supplies and services. Disputes as to the amount by which any reimbursement is reduced shall be resolved in accordance with the “Disputes” clause of the contract. It shall be the Contractor’s burden to demonstrate that the price it paid for reimbursable supplies and services was fair and reasonable.

8.4 When the Contractor expects total funding expended for reimbursable items to reach 85 percent of the total funds available on each Reimbursable Supplies and Services CLIN, the Contractor shall notify the Contracting Officer and the COR and any other Government official identified by the Contracting Officer. The notice shall state the estimated amount of additional funds required to continue performance for the period specified in the Schedule. The Contractor shall not exceed or incur costs that exceed the amount of funding stated on each Reimbursable Supplies and Services CLIN at the time a reimbursable item is ordered.

8.5 The Government is not obligated to reimburse the Contractor for otherwise reimbursable supplies and services in excess of the funded amount stated in the Schedule under each Reimbursable CLIN.

8.6 The Contractor is not obligated to continue performance of any reimbursable work under this Contract or otherwise incur costs for reimbursable supplies or services in excess of the funded amount stated in the Schedule under each Reimbursable CLIN unless the Contracting Officer notifies the Contractor that the funded amount stated in the Schedule under the applicable Reimbursables CLIN has been increased. Notification shall be in writing. In the event notification is made orally, such notification shall be followed up in writing within two working days.

8.7 No notice, communication, or representation from any person other than the Contracting Officer shall affect the Government’s obligation to reimburse the Contractor.

8.8 Change orders shall not be considered an authorization to exceed the funded amount stated in the Schedule under each Reimbursable CLIN unless they contain a statement expressly increasing the funded amount of the Reimbursables CLIN by a sufficient amount to cover the change order.

8.9 RESERVED

SECTION H

1. RESERVED

1. AGENT DESIGNATION

The Charterer shall have the option of directing the Owner to use a specific commercial or Government agent in any port for the reimbursable elements.

1. INSURANCE

2. Vessel Owner’s Insurance

0. During the full period of this Charter Party, Contractor shall maintain marine insurance coverage on the Vessel, including:

0. Hull and Machinery,

0. Protection and Indemnity (P&I) (including pollution liability),

0. War Risk Hull and Machinery,

0. War Risk Protection and Indemnity (P&I), and

0. Second Seaman’s War Risk.

Except as otherwise expressly provided in Section H‐3.1.3 below or as expressly provided in the section entitled “War” (H‐4), all expenses for such insurance coverage (including but not limited to premiums, additional premiums, calls, commissions, overspill claims, advancements, assessments, deductibles, and all other insurance costs regardless of Charterer or Contractor fault, neglect, action or inaction, or cause of claim or cost whatsoever) shall be for Contractor’s account and shall be deemed to be included in the hire payable under this Charter Party. At least 10 calendar days prior to delivery of vessel, Contractor shall provide the Contracting Officer copies of policies or cover notes evidencing that required coverage has been obtained and demonstrating that the coverage is consistent with the requirements of this section. Contractor’s failure to provide the required policies or cover notes may be considered material breach of this contract. Contractor shall make insurance claims under applicable policies for all damages, injuries, or claims arising from or related to this charter when directed by Charterer regardless of Charterer’s fault, neglect, action, inaction, or breach of clauses, obligations or warranties (express, implied or otherwise) of this charter contract.

0. Contractor shall obtain an endorsement on all of Contractor’s insurance policies listed in Section H-3.1.1 by which Contractor’s Insurer “waives all rights of subrogation against the United States of America up to an amount of $350,000,000.”

0. If Vessel is sent beyond the limits of American Institute Trade Warranties under this Charter Party, the Charterer agrees to reimburse the Contractor for the actual extra cost of additional premiums and/or increased deductible levels to the extent such extra cost is occasioned by the Vessel’s trading beyond such limits. Contractor shall immediately notify Charterer whenever any sailing orders will send the Vessel beyond such limits, shall identify to Charterer any anticipated additional cost of insurance relating thereto, and shall obtain Charterer’s approval to proceed beyond such limits prior to doing so. If Contractor fails to provide the notifications required or to obtain Charterer’s informed prior approval, Charterer shall not be required to reimburse the Contractor for the costs described in this paragraph. The issuance of sailing orders, by itself, does not constitute approval in advance by Charterer.

0. All policies shall contain an endorsement stating that “in the event Insurer receives from Vessel Owner any notice of cancellation or any notice of material change to the policy or its coverage, the cancellation or change shall not be effective until 30 days after written notice thereof is provided to Charterer’s Contracting Officer by the Insurer (unless such change is directed by the Charterer’s Contracting Officer).” Additionally, Contractor shall immediately notify Charterer of any change whatsoever in coverage.

2. Charterer Named Additional Assured on Owner’s Hull Policy, War Risk Hull Policy, and Second Seaman’s War Risk Policy.

1. The United States of America (as Charterer) shall be named as an additional assured with waiver of subrogation under the Contractor’s Hull and Machinery policy (and Increased Value policy if applicable), War Risk Hull and Machinery policy, and Second Seaman’s War Risk policy. At least 10 calendar days prior to delivery of vessel, Contractor shall provide the Contracting Officer copies of policies or cover notes evidencing that the required coverage has been obtained. Contractor’s failure to provide the required policies or cover notes may be considered material breach of this contract.

1. “Other than owner” and “as owner” limitations. If Contractor’s Hull and Machinery policy (and Increased Value policy if applicable), War Risk Hull and Machinery policy, or Second Seaman’s War Risk policy contain(s) any provision limiting coverage under the policy only to liabilities arising as owner of the vessel, Contractor shall arrange for such limiting provision to be stricken from the policy.

1. If Contractor’s Hull and Machinery policy (and Increased Value policy if applicable), War Risk Hull and Machinery policy, or Second Seaman’s War Risk policy contain(s) any provision designed to limit the effect of striking “other than owner” or “as owner” provisions as required in Section H‐3.2.2, such provisions shall also be amended to ensure Charterer is provided full benefit of the insurance for its acts as Charterer.

1. Limitations of Coverage to U.S. Limitation of Shipowners’ Liability Act (or similar) limitation amounts. If Contractor’s Hull and Machinery policy (and Increased Value policy if applicable), War Risk Hull and Machinery policy, and/or Second Seaman’s War Risk policy contain(s) any provision(s) limiting maximum payment to Owner in any instance to the amount to which Owner is able to limit Owner’s liability pursuant to the U.S. Limitation of Shipowners’ Liability Act of 1851, the 1976 Convention on Limitation of Liability for Maritime Claims, or any similar law, Contractor shall arrange for such limiting language to be stricken or amended to ensure the policy or policies are not similarly limited in payment or coverage amount with respect to coverage afforded the United States of America as additional assured Charterer.

2. Time Charterer Protection and Indemnity (P&I) with P&I War Risk Coverage.

2. Contractor shall obtain a Time Charterer Protection and Indemnity policy/entry with P&I War Risk coverage for the United States of America (as Charterer) with coverage amount of $350,000,000 and covering all risks typically covered by Time Charterer Protection and Indemnity entries with P&I War Risk coverages in Protection and Indemnity associations that are members of the International Group. Except as otherwise expressly provided in the section entitled “War,” all expense of such policy/entry described in this section (including but not limited to premiums, additional premiums, calls, commissions, overspill claims, advancements, assessments, deductibles, and all other insurance costs regardless of Charterer or Contractor fault, neglect, action or inaction, or cause of claim or cost whatsoever) shall be for Contractor’s account and shall be deemed to be included in the hire payable under this Charter Party. At least 10 calendar days prior to delivery of vessel, Contractor shall provide the Contracting Officer a copy of the policy. Contractor’s failure to provide the required copy of the policy may be considered material breach of this contract. Contractor shall make insurance claims under the Time Charterer Protection and Indemnity policy/entry described in this section when directed by Charterer.

2. Charterer shall not be obliged to declare to the insurer all ships chartered by it. Contractor will advise the insurer that the Charterer will not declare all ships chartered by it to the insurer, and shall obtain an endorsement on the policy stating,…