N32205-17-R-3420.docx

N3220517R3420

Section SF 1449 - CONTINUATION SHEET

INSPECTION AND ACCEPTANCE TERMS

Supplies/services will be inspected/accepted at:

DELIVERY INFORMATION

Charter Hire

FFP

Charter Period 1 24-28 July 2017 and Charter Period 2 21-25 August 2017 FOB: Destination

NET AMT

PSC Code: V124

Delivery

NET AMT

Redelivery

NET AMT

Reimbursables

NET AMT

PERFORMANCE WORK STATEMENT

NOTES ON CONTRACT

INVOICE INSTRUCTIONS

See clause 252.232-7003, Electronic Submission of Payment Requests and Receiving Reports (MAR 2008) and the MSC Specific WAWF Instructions provided below as a supplement to 252.232-7003.

The SCHEDULE of Supplies and Services follows as the CLINS and the Performance Work Statement.

BOXES

1. BOX FORMAT

Vessel(s):

1. Vessel(s) Required:

SEE RFP PWS

2. Place / Range of Delivery:

Naval Base, Point Loma CA

3. Place / Range of Redelivery:

Naval Base, Point Loma CA

4. Charter Period):

24 July 2017 to on or about 28 July 2017 (about 5 days) 21 August 2017 to on or about 25 August 2017 (about 5 days)

5. Laydays:

Commencing/Cancelling 24 July 2017 at about 0700 Commencing/Cancelling 21 August 2017 at about 0700

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

Boxes 50 – 62 N/A

GENERAL DATA

7. Vessel/Flag/Year Built:

8. Proposal Firm Until:

9. Amendments Acknowledged (amendment numbers and dates):

10. Owner (style, address, phone, cell phone, pager, e-mail, fax):

11. Broker (address, phone, e-mail, fax):

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

FIRST PERIOD

REDUCED OPERATIONAL STATUS RATE

13. USD per diem

14. USD per diem

NOT APPLICABLE

15. USD per diem

NOT APPLICABLE

SECOND PERIOD

REDUCED OPERATIONAL STATUS RATE

13A. USD per diem

14A. USD per diem

NOT APPLICABLE

15A. USD per diem

NOT APPLICABLE

Vessel(s):

16. Indicate anticipated crewing arrangements during ROS (Less Than 10 Days) and ROS (10 Days and Longer): N/A

17. Other Costs:

20. Voluntary Intermodal Sealift Agreement (VISA) Status of Offeror and Vessel(s):

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

32. Beam (extreme)

a. (ft) b. (m)

33. Length Overall:

a. (ft) b. (m)

34. Immersion (on draft in Box 36):

a. (LT/in) b. (t/cm)

35. Length between perpendiculars:

a. (ft) b. (m)

36. Summer mean draft:

a. (ft) b. (m)

37. Deadweight capacity (on draft in Box 36):

a. (LT) b. (t)

38. Displacement, loaded (on draft in Box 36):

a. (LT/in) b. (t/cm)

39. Summer Load Line Freeboard:

a. (ft b. (m)

40. Shaft Horsepower/kilowatts:

a. (hp) b. (kW)

41. Brake Horsepower/kilowatts:

a. (hp) b. (kW)

44. Classification society entered and class assigned:

49. MarAd subsidized vessel: Yes _____ No ___

50. Total grain cubic capacity (cu ft / cubic meters underdeck, exclusive of deep tanks, wing tanks, reefer spaces, and spaces fitted with cell guides): N/A

51. Total Bale cubic capacity (cu ft / cubic meters underdeck, exclusive of deep tanks, wing tanks, reefer spaces, and spaces fitted with cell guides): N/A

52. Number of tween decks: N/A

53. Cargo Space N/A

a. Square footage of cargo space (note particularly total ft2, ft2 with 10 ft clearance, ft2 underdeck, Ro/Ro Space):

b. Square meters of cargo space (note particularly total m2, m2 with 3.048 m clearance, m2 underdeck, Ro/Ro Space):

Vessel(s):

54. Total underdeck container capacity (TEU/FEU): N/A

55. Total on-deck container capacity (TEU/FEU): N/A

56. Total refrigerated-container capacity (TEU/FEU, including number/style of outlets): N/A

57. Reefer-space capacity (cu ft / cu meters): N/A

58. Deep-tank capacity (cu ft/cu meters/bbls): N/A

59. Capacity of spaces fitted with cell guides (TEU): N/A

60. Amount and location of permanent ballast carried: N/A

61. General description of ramps (number, location, size, capacity, and type):

(note particularly weight of heaviest permissible vehicle in LT or t)

62. General description of cargo spaces and special features:

GEAR

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

CASUALTIES / DEFICIENCIES

64. Has vessel been involved in any serious grounding or collision within twelve months from the submission date of this proposal?

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

FUEL CONSUMPTION AT SERVICE SPEEDS

66. Average warranted speed (knots, for laden, moderate weather):

67. Average warranted speed (knots, for ballast, moderate weather):

FUEL CONSUMPTION AT VARIABLE SPEEDS

72. Average fuel consumption (net bbls at 60 deg F for all grades and all engines/auxiliaries utilized while underway over moderate-weather passages at the speed, ranges, and grade(s) indicated):

73. Grades Consumed:

75. RESERVED

PERFORMANCE WORK STATEMENT

VESSEL SUPPORT FOR THE MINECOUNTERMEASURE (MCM) FLEET EXERCISE

1.1 General. The Military Sealift Command (MSC) requests a vessel to provide support for EOD Group One Mine Countermeasure (MCM) Fleet Exercise.

1.2 Area of Operations. Operation shall be conducted in Southern California (SOCAL), Silver Stand Training Center North Kilo range and/or within fifteen (15) NM of Imperial Beach, CA.

1.3 Delivery: Naval Base, Point Loma CA

1.4 Redelivery: Naval Base, Point Loma CA

1.5 Charter Period:

24 July 2017 to on or about 28 July 2017 (about 5 days) 21 August 2017 to on or about 25 August 2017 (about 5 days)

1.6 Lay Days: Commencing on

24 July 2017 at 0700 21 August 2017 at 0700

1.7 Certifications. The vessel must meet all federal, state, and local regulations for the operations they will be conducting.

2) NEAR WATER DECK (NTE 5’AWL) FOR SMALL CRAFT TO LOAD/UNLOAD GEAR AND PERSONNEL.

3) CAPABILITY OF REFUELING SMALL CRAFT, GENERATORS, AND COMPRESSORS WITH APPROX. 60 GALLONS OF GASOLINE.

VESSEL TO SUPPLY THREE (3) HOT MEALS PER PERSON PER DAY

2) LAY DOWN FOR 25’L X 12’W X 8’H MILVAN (22,000lbs)

3) LAY DOWN FOR 16’ X 8’ X 8’ MILVAN (9,000 lbs)

4) LAY DOWN FOR 16’ X 9’ X 8’ MILVAN (4,000 lbs)

5) LAY DOWN FOR 6’ X 6’ AUXILIARY EQUIPMENT

6) FRESH WATER WASHDOWN VIA GARDEN HOSE.

**The Offeror is responsible for coordinating onload and offload of Deck Equipment with mission Sponsor. Sponsor will provide a pier and crane at 32nd St. Naval Station (with operators) or transport deck equipment to a contractor proposed pier within 50 miles of Naval Base Point Loma, Naval Mine and Anti-Submarine Warfare Command. Contractor provided crane services will be reimbursed per the contract.

1.9 DAILY HIRE: Except as otherwise provided herein, the daily charter hire rate shall be considered payment in full for all services of the Vessel and Associated Equipment and all other requirements under this Charter Party contract, including, but not limited to 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 the nominal carriage of ammunition and hazardous cargoes. Daily charter hire rate shall also be considered payment in full for all overtime. Port charges and fuel expenses are reimbursable.

1.10 Wage Determination (2015-0213 Rev.6) is incorporated into this contract and is available upon request. Please contact Mariah Johnson (mariah.d.johnson@navy.mil) to obtain wage determination.

2. GENERAL DEFINITIONS

AEL – Allowance Equipment List

Alterations - Additions of equipment; changes to the configuration, location, type, or number of pieces of equipment or systems; changes in the arrangement and outfitting of Vessel’s structure.

Associated Equipment - Construed to include all Contractor-furnished or owned equipment necessary for performance under this Charter

ATO - Anti-Terrorism Officer (same as Vessel Security Officer and/or Force Protection Officer)

AT/FP - Anti-Terrorism/Force Protection

Bbl - Barrel (42 U.S. gallons volume measure)

CAGE - Commercial and Government Entity Code (reference DFARS 252.204-7001)

CBR-D- Chemical, Biological and Radiological Defense

CFE - Contractor-furnished equipment

Charter - This document when executed; interchangeable with “Contract” and “Charter Party”

Charterer - The United States of America

CMWD - Countermeasure Washdown System. Fixed system (or temporary using fire hoses attached to steel clips welded to vertical bulkheads or other structure). Using Ship’s firemain system, when activated, provides 360 degree (ideally) sea water curtain protection, mitigating the effects of CBR attacks. Also used to wash contaminants from Ship’s structure after a CBR attack.

COMLANTFLT – Commander, U.S. Atlantic Fleet

COMPACFLT – Commander, U.S. Pacific Fleet

COMNAVEUR – Commander, U.S. Naval Forces, Europe

COMNAVFORJAPAN - Commander, U.S. Naval Forces, Japan.

COMNAVSURFLANT - Commander, Naval Surface Force, U.S. Atlantic Fleet.

COMNAVSURFPAC - Commander, Naval Surface Force, U.S. Pacific Fleet

COMPSRON – Commander, Maritime Prepositioning Squadron

COMSC - Commander, Military Sealift Command.

COMSCINST - Commander, Military Sealift Command Instruction

COMSCCENT – Commander, Military Sealift Command Central

COMSCEUR - Commander, Military Sealift Command Europe

COMSCFE – Commander, Military Sealift Command Far East

COMSCLANT - Commander, Military Sealift Command Atlantic

COMSCPAC - Commander, Military Sealift Command Pacific

COMSECONDFLT - Commander, U.S. Second Fleet

COMSEC - Communications Security

COMSEVENTHFLT - Commander, U.S. Seventh Fleet

COMSIXTHFLT - Commander, U.S. Sixth Fleet

COMTHIRDFLT - Commander, U.S. Third Fleet

CO – Contracting Officer, identified in Box 31 of SF-1449

COR - Contracting Officer's Representative

Contractor - Interchangeable with “Owner”

Crew - Of the Vessel identified at Box B1

Decontamination Station- A compartment onboard the Ship with direct access to the weather deck outfitted with features for crew decontamination.

DC - Damage Control

Designated Maritime Physician - Hospital, clinic and/or physician jointly approved by Contractor/Union/COMSC providing primary care, second opinions, or hospitalization for emergency medical care.

DFARS - Department of Defense Federal Acquisition Regulation Supplement (issued by the Department of Defense)

DSS - Defense Security Service

DLA-E – Defense Logistics Agency – Energy, formerly DESC

DoD - Department of Defense

DRRS-N - Defense Readiness Reporting System for Navy (replaced Status of Readiness and Training System (SORTS))

DTG – Date Time Group. A unique number consisting of date-hour-minute in Zulu time plus month (3 letter abbreviation) and year (2 digit) which facilitates making reference to that message.

DWT – Deadweight tonnage

ECDIS – Electronic Chart Display and Information System, a computer based navigation information system that complies with IMO Standards

EMCON - Emissions Control

Emergency Repairs - Unexpected and unscheduled repairs required to maintain the integrity of the Ship's hull, machinery and/or systems; to insure the safety of the crew; and/or to provide for the effective performance of the Ship's mission.

EOM - Engineering Operating Manual (COMSCINST 3540.7)

EPIRB - Emergency Position Indicating Radio Beacon

EST – Embarked Security Team, normally a 12-person force, U.S. Navy or contracted personnel

FAR - Federal Acquisition Regulation

FCC - Federal Communications Commission

FEU – Forty foot Equivalent Unit (Cargo container of 40 foot length, or size/volume/cargo capacity measurement equal to same)

FFD - Fit For Duty

FLC - Fleet Logistics Center, formerly Fleet Industrial Supply Center (FISC)

Fleet Commander – Commander, Pacific Fleet; Commander, Atlantic Fleet; or their designated subordinate Commander.

FOS - Full Operating Status

FP or FP/AT – Force Protection or Force Protection/Anti-Terrorism

Ft – feet

FPCON – Force Protection Condition

FPCON NORMAL – This condition applies when a general global threat of possible terrorist activity exists and warrants a routine security posture. At a minimum, access control will be conducted at all DoD installations and facilities.

FPCON ALPHA - This condition is declared as a general warning of possible terrorist activity, the nature and extent of which is unpredictable, when the circumstances do not justify full implementation of the measures of FPCON BRAVO. However, it may be necessary to implement selected measures from FPCON BRAVO. The measures in this FPCON must be capable of being maintained indefinitely.

FPCON BRAVO - This condition is declared when there is an increased and more predictable threat of terrorist activity even though no particular target is identified. The measures of this FPCON must be capable of being maintained for weeks without causing undue hardship, without affecting operational capability and without aggravating relations with local authorities.

FPCON CHARLIE - This condition is declared when an incident occurs or when intelligence is received indicating that some form of terrorist action against installations or personnel is imminent. Implementation of this measure for more than short periods will probably create hardship and will affect peacetime activities of the installation and its personnel.

FPCON DELTA - This condition is declared when a terrorist attack has occurred or when intelligence has been received that terrorist action against a specific location is likely. Normally this FPCON is declared as a localized warning.

FPO – Force Protection Officer (same as Vessel Security Officer and/or Anti-Terrorism Officer).

GFP - Government-Furnished Property (see FAR 52.245-1)

Government - The United States of America; interchangeable with “Charterer”

Government Designated Representative - Including, but not limited to, force protection personnel, military, Government employees, and Government Contractors hp – horsepower [1 hp equals 0.745799 kW]

IACS - International Association of Classification Societies

IAW - In Accordance With

IDC - Independent Duty Corpsman

IMO - International Maritime Organization

Independent Agency – A Commercial entity under contract to the Government to provide all Government-owned or Chartered Ships of the Military Sealift Command, including the Vessel in this Contract, various shipboard supplies and services required for compliance with certain MSC operations and maintenance programs.

Industrial Assistance - Maintenance and repair work performed by an independent subcontractor to the Contractor.

INMARSAT - International Maritime Satellite

Installed Equipment – All items except furniture, recreation and gym equipment that are permanently or semi-permanently attached to the Ship by welds, bolts, or similar methods of attachment. This includes pumps, engines, winches, kingposts, booms, antennae, etc. This category of material is generally treated in the same manner as the Ship’s hull, so that the terms “Ship and installed equipment” and simply “Ship” are generally synonymous.

ISP – Inport Security Plan. A classified Naval Message which details AT/FP measures while in port.

ISM - International Safety Management System

ISPS - International Code for the Security of Ships and of Port Facilities (ISPS Code)

ISSC – International Ship Security Certificate km – kilometers kPa – kilo Pascal [1 kPa equals 20.886 psf] kW - kilowatts [1 kW equals 1.34 horsepower (hp)]

Laden – ship/vessel loaded with cargo or freight

LTON or LT - Long Ton (2,240 pounds weight) m – meter m3 – cubic meter

MARPOL – International Convention for the Prevention of Pollution from Ships

MB - Megabyte

MDR – Medical Department Representative. A person assigned solely to provide medical care and operate a clinic aboard Ship, as compared to a commercial M-PIC (see below).

MILSTRIP – Military Standard Requisitioning and Issue Procedures

F(E) – Maritime Prepositioning Force, Enhanced

M&R - Maintenance and Repair

MAREP - Message generated by maritime surface forces to report on surface, subsurface, air or special interests units operating in Maritime environment.

Master – The official title of the Captain of the Vessel identified in Box B1.

MR - Medical Representative

MEDEVAC - Medical Evacuation; usually to the nearest medical treatment facility.

MIB - Marine Index Bureau

MT – Measurement Ton (forty cubic feet, volume measurement)

MOA - Memorandum of Agreement

M-PIC – Medical Person in Charge aboard a commercially manned Ship. This is generally a collateral duty of the Master or Chief Mate for first aid purposes.

Moderate Weather - Sustained wind and sea conditions of "Beaufort Wind Scale" Beaufort Force 5 and World Meteorological Organization Sea State 4.

MSC - U.S. Department of the Navy, Military Sealift Command

MT – Metric Ton. A unit of weight, equal to 1,000 kilograms.

NAVSEA - Naval Sea Systems Command

NEURS - Navy Energy Usage Report System

NICN - Navy Item Control Number

NCIS - Naval Criminal Investigative Service

NGW – New Generation Wideband satellite communications system (prototype)

NM- Nautical Miles

NMCARS - Navy Marine Corps Acquisition Regulation Supplement

NOR – Notice of Readiness

Owner - That entity exercising commercial control of the Vessel identified in Box B1; interchangeable with “Contractor” and “Offeror” and to include disponent owners and all the Shipowner’s and disponent owner’s agents, employees, independent Contractors, Master, Officers, and crew.

OAA – Ordnance Accounting Ashore

OCI – Onboard Condition Inspection – Survey of Vessel conducted by N75, N4 and MSC medical personnel to assess material condition, appearance, mission equipment readiness and confirm compliance with contractual requirements.

ODS - Ozone Depleting Substances

OPCOM – Operational Commander (Normally the MSC Area Command)

Operation - Operation includes the daily, or other periodic starting, stopping, adjusting, inspecting, lubricating, etc. of the mechanical, electrical and auxiliary systems and equipment; watch standing and conducting rounds to maintain Ship's status.

OPNAVINST - Chief of Naval Operations Instruction

OPORD - Operations Order

OPSEC - Operations Security

OTSR - Optimum Track Ship Routing

P&I - Marine protection and indemnity insurance

Paying Office - Identified in Box 18a of SF-1449

Place - Any berth, dock, anchorage, submarine line, alongside any Vessel or lighter or any other place whatsoever to which Charterer is entitled to direct the Vessel hereunder.

Psf – Pounds per square foot (load measurement)

Psi - Pounds per square inch (pressure measure)

PREREP – An alternate form of the LOGREP message, the PREREP specifies arrival time and date, purpose of visit, port services required and other requirements.

Readiness – Pertains to the Vessel’s ability to perform all required missions.

RFP - Request for Proposals. Interchangeable with Solicitation

ROS - Reduced Operating Status.

SDWT - Deadweight capacity, to assigned summer mean draft

SHIPFILL – The quantity of government equipage issued based on the number of equipment or personnel carried on board.

Speed – The rate of advance of a vessel. It is derived by dividing the total hours at sea on any given sea passage (as show in the Vessel’s log)—after excluding any hours of non-moderate weather and any sea passage covered by an off-hire calculation—into the total miles at sea on the given sea passage.

SWL - Safe Working Load

TEU – Twenty Foot Equivalent Unit (Cargo container of 20 foot length, 8 foot height, 8 foot width, or size/volume/cargo capacity measurement equal to same). For the purpose of this solicitation/contract, all government-furnished TEUs are 20’ long by 8’ wide by 8’6” high.

TIN - Taxpayer Identification Number

USCG - United States Coast Guard

USD – U.S. Dollars

Vessel - Identified at Box B1

VSP – Vessel Security Plan

VSO – Vessel Security Officer (same as Anti-Terrorism Officer and/or Force Protection Officer)

3. DELIVERY

Vessel delivery within the laydays specified in Box B1 is of paramount importance to the Government. It is anticipated by the parties that the Vessel will be delivered within the laydays specified in Box B1 and any delay in delivery beyond the laydays ending date shall constitute a material breach of this contract. The Vessel and all Associated Equipment shall be delivered to the Charterer at a port or place in accordance with Box B1 at place of delivery on the date stated in Box B1, the Contractor 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, not exceeding twenty-four (24) hours after proper tender of the notice of readiness, (Saturdays, Sundays, or other recognized weekly days of rest, U.S. Government holidays, and holidays observed at the delivery port, whether national or local, excepted in the computation of said twenty-four hour period). Hire shall commence upon acceptance of the Vessel by the Charterer but not before the date commencing in Box B1.

4. REDELIVERY

Unless lost, the Vessel shall be redelivered at a port or place in accordance with Box B1.

5. Ports/Places

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.

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.

6. Charter Period

This Charter Party shall be for the period designated in Box B.1, 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 the PWS. Optional periods may be declared at any time prior to redelivery of the Vessel.

7. Insurance

7.1 Vessel Owner’s Insurance.

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

i. Hull and Machinery,

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

iii. War Risk Hull and Machinery,

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

v. Second Seaman’s War Risk.

Except as otherwise expressly provided in Section 7.1.3 below or as expressly provided in Section 7.1.3 below or as expressly provided in the section entitled “War” , 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. Within 10 calendar days following award of this contract, 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.

7.1.2 Contractor shall obtain an endorsement on all of Contractor’s insurance policies by which Contractor’s Insurer “waives all rights of subrogation against the United States of America up to an amount of $350,000,000.

7.1.3 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.

7.1.4 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.

7.2 Charterer Named Additional Assured on Owner’s Hull Policy, War Risk Hull Policy, Protection and Indemnity (P&I), War Risk P&I, and Second Seaman’s War Risk Policy.

7.2.1 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, Protection and Indemnity (P&I), War Risk P&I, and Second Seaman’s War Risk policy. Within 10 calendar days following award of this contract, 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.

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

7.2.2.1 If Contractor’s Hull and Machinery policy (and Increased Value policy if applicable), War Risk Hull and Machinery policy, Protection and Indemnity (P&I), War Risk P&I, 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, such provisions shall also be amended to ensure Charterer is provided full benefit of the insurance for its acts as Charterer.

7.2.3 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.

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

7.3.1 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. Within 10 calendar days following award of this contract, 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.

7.3.2 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, “the United States of America, as charterer, is not required to declare to [insert insurer name] all ships chartered by it.”

7.4 Contractor to Indemnify. If Contractor fails to name the United States as additional assured with waiver of subrogation on 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; or fails to obtain for the United States the Time Charterer P&I policy/entry with War Risks coverage; the Contractor shall indemnify and hold harmless the Charterer for all liability, costs, or expenses which would have been covered by the required insurance policies/coverage.

7.4.1 Contractor shall not, through action or inaction (including but not limited to failing to meet all conditions of a policy, causing through action or inaction cessation of a policy, or violating any warranty of a policy), vitiate or void the coverage afforded by the Contractor’s Hull and Machinery policy (and Increased Value policy if applicable), War Risk Hull and Machinery policy, Second Seaman’s War Risk policy, or the coverage afforded by the Time Charterer Protection and Indemnity policy/entry with P&I War Risk coverage. If any such policy is vitiated or voided by Contractor’s action or inaction, Contractor shall indemnify and hold harmless the Charterer for all liability, costs, or expenses which would have been covered by the policy had such policy remained in full force and effect.

7.4.2 In the event Contractor fails to strike “other than owner” or “as owner” provisions per Section 7.2.2, fails to amend supplemental limiting provisions as described in Section 7.2.2.1, or fails to amend provisions limiting payment or coverage as described in Section 7.2.3, Contractor shall indemnify and hold harmless the Charterer for all liability, costs, or expenses which would have been covered by 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 had such provisions been stricken or amended as required.

8. WAR

8.1 Voyage Instructions. Operating limits of the vessel subject to this contract shall be worldwide. If the Vessel is ordered under this Charter Party to any port, place, or zone involved in a state of war, warlike operations or hostilities, civil strife, or piracy (whether there be a declaration of war or not) where it might be reasonably expected to be subject to capture, seizure, arrest, or hostile act by a belligerent power (whether de facto or de jure), pirate, or terrorist, it shall be unreasonable for the Contractor not to prosecute said voyage if insurance against said risks is then available commercially or under a Government program, or if the Government offers the Contractor indemnification against said risks pursuant to Public Law 85‐804 (72 Stat. 972, August 28, 1958).

8.2 The Contractor shall immediately notify the Charterer: (i) whenever any sailing orders will result in the Vessel subject to this contract being sent beyond the limits of the War Risk Trading Warranties of insurance policies required under this contract (to include entry into a war risk exclusion zone or when the Vessel will enter, sail for, or deviate towards the territorial waters of any of the Countries or places or any other waters described in the Lloyd’s Joint War Committee’s current Hull War, Strikes, Terrorism and Related Perils Listed Areas); (ii) if there are any changes to the War Risk Trading Warranties of insurance policies required under this contract (including changes to the exclusion zones or the Hull War, Strikes, Terrorism and Related Perils Listed Areas) or changes to War Risk premiums, charges, or deductibles; or (iii) whenever additional premium charges or costs will be incurred as a direct result of compliance with any sailing orders issued by the Charterer under this contract. The Contractor shall ensure that the insurers provide it relevant information in a timely manner. If the Contractor has given this required notice to the Charterer, the Charterer will reimburse the Contractor for the increase in costs (if any) of insurance premiums, charges, or deductibles which arise from the vessel sailing beyond the applicable War Risk Trading Warranties (including changes to the war risk exclusion zones) when entry into any exclusion zone or Hull War, Strikes, Terrorism and Related Perils Listed Areas under such insurance has been approved in advance by the Charterer. The issuance of sailing orders, by itself, does not constitute approval in advance by the Charterer. The Charterer may give the Contractor notice and instructions concerning suspension of commercial War Risk insurance coverage and substitution of Government indemnity or Government War Risk insurance as detailed in the section entitled “Government War Risk Insurance/Indemnity” below.

8.3 Additional Wage Costs. The Charterer shall reimburse Contractor for the cost of provable additional master and crew wages (including all additional bonuses and payments required) to the extent that such additional costs arise directly from exposure of the Vessel, and/or Vessel’s master and crew, to the risks described in the paragraph entitled “Voyage Instructions” above. However, any of said wages or payments shall not exceed in amount that which would be payable, under applicable laws and regulations, to U.S. civil service mariners in the employ of the Military Sealift Command in a similar port, place, zone, or route. Contractor shall notify Charterer of all anticipated additional wage costs prior to entering any location which would trigger such additional costs; and no such costs shall be reimbursable unless Charterer, after notification of such costs, provides approval to enter such location.

9. Government War Risk Insurance/Indemnity

9.1 General. Upon receipt of notice and instruction from the Contracting Officer, as specified in the last sentence of Section 4.2 of the section entitled “War (Section 8)” above, with respect to any area excluded by the War Risk Trading Warranties or included by the Lloyd’s Joint War Committee on the Hull War, Strikes, Terrorism and Related Perils Listed Areas under the Contractor’s commercial War Risk coverage, the Contractor shall, as soon as practicable, contact its insurance brokers or underwriters and arrange for the suspension of its commercial War Risk insurance upon entry of the vessel into, or extension of stay of the vessel in such area(s), or when the vessel will enter, sail for, or deviate towards the territorial waters of any of the Countries or places, or any other waters described in the Lloyd’s Joint War Committee’s current Hull War, Strikes, Terrorism and Related Perils Listed Areas , as the case may be, subject to resumption of its commercial War Risk insurance upon exiting such area(s). In such instances, the Contractor shall accept the Government’s indemnity or War Risk insurance, whichever is applicable, in lieu of such commercial War Risk insurance. The Contractor shall ensure that the suspension of its commercial War Risk coverage is coincident with the time that any Government indemnity or War Risk insurance becomes effective, and shall likewise ensure that its commercial War Risk insurance is resumed at the time when any Government indemnity or War Risk insurance becomes ineffective. The Contractor shall retain the same risks, such as deductibles (if any), that it has under its commercial insurance.

9.2 Government War Risk Insurance. Under the authority of 46 U.S.C. § 53905, the United States Maritime Administration (MARAD), at the request of Commander, Military Sealift Command, may furnish the following war risk insurance coverage, which will be effective during the vessel’s transit under this Contract in areas which are in war risk exclusion zones, or waters described in the current Lloyd’s Joint War Committee Hull War, Strikes, Terrorism and Related Perils Listed Areas , or otherwise excluded under the Contractor’s commercial marine War Risk trading warranties, and which are designated by notice from the Contracting Officer to the Contractor:

(1) War Risk Hull Coverage, insured at the hull value stated in Vessel’s current commercial hull and increased-value policies effective on Charter Party date, a copy of which current hull policies shall be furnished to Charterer;

(2) War Risk Protection and Indemnity coverage, insured at a value of either (i) 150% of the hull value stated in Vessel's current commercial hull policy effective on Charter Party date or (ii) $50,000,000, whichever is greater but in no event exceeding that amount of commercial P&I cover which was in effect for the Vessel on Charter Party date;

(3) War Risk Blocking and Trapping Coverage;

(4) War Risk Second Seaman’s coverage, the principal sum of which shall be $200,000 per Master, Officer, or crew member (this is also the loss-of-life benefit);

(5) War Risk Loss-of-Hire coverage, if a commercial loss-of-hire policy was in effect on the Vessel on Charter Party date. The sum insured by this policy, including the amount of lost time that is covered, will be equivalent to the levels insured by the Vessel's commercial policy. However, the amount insured by this policy will in no event exceed the hire rate (effective under this Charter Party when the loss of time began), over a maximum duration of 90 days lost. This maximum amount will be further subject to a deductible equivalent to that in place under the Vessel's commercial policy.

9.3 Government Indemnity. Under the authority of Public Law 85‐804 (72 Stat. 972, August 28, 1958) and Executive Order 10789, as amended by Executive Order 11610, the Secretary of Defense or the Secretary of the Navy may authorize the Contracting Officer to indemnify the Contractor against loss from risks that would be covered by MARAD war risk coverage as set forth in the paragraph entitled “Government War Risk Insurance” directly above.

10. Readiness. Readiness is a required service of the Vessel. Readiness shall be defined as the ability of a Vessel and Associated Equipment to perform the function for which designed, built, or chartered, including the ability to deploy without delays, whether or not so ordered to perform. If there is a degradation of this readiness, such that actual performance or condition of the Vessel or Associated Equipment shows any failure to satisfy one or more of the Owner's warranties or renders the Vessel in less than a fully efficient state, the hire will be proportionately decreased so as to indemnify the Charterer to the extent of such failure, this Charter Party to remain otherwise unaffected. Failure of the parties to agree upon the extent of the proportional decrease in hire shall be a dispute under FAR clause 52.233-1, “Disputes” – Alternate 1 incorporated herein by reference in Section I. Nothing in this clause shall limit the rights of the Charterer to place the Vessel off-hire pursuant to paragraph 11 (Off-Hire).

11. Off-Hire . In the event of the loss of time resulting from deficiency and/or default of men including but not limited to misconduct, illness, injury, strikes, labor disruptions, lockouts; deficiency of stores; fire; breakdown of or damages to hull, machinery, or equipment; collision; stranding; grounding; detention by authorities; average accidents to Vessel or cargo unless resulting from inherent vice, quality, or defect of the cargo; repairs; inspections; drydocking for the purpose of examination or painting bottom; or deviation for the purpose of landing any ill or injured person on board other than any passenger, supercargo, or military personnel who may be carried at Charterer's request; or by any other cause whatsoever preventing the full working of the Vessel; the payment of hire shall cease for all time lost until the Vessel is again ready and in a fully efficient state to resume her service from a position not less favorable to the Charterer than that at which such loss of time commenced. Should the Vessel deviate or put back during a voyage contrary to the orders or directions of the Charterer for any reason, the hire is to be suspended from the time of her deviating or putting back until she is again ready and in a fully efficient state to resume her service from a position not less favorable to the Charterer than that at which such loss of time commenced. When the period of time lost to the Charterer on any one occasion is less than four (4) consecutive hours, the hire shall not be reduced for such period.

11.1 Costs for Owner. The cost of fuel consumed while the Vessel is off-hire, as well as all port charges, pilotages, and other expenses incurred during such period and consequent upon the putting in to any port or place other than that to which the Vessel is bound, shall be borne by the Owner. All fuel used by the Vessel being driven into port or to shallow harbors or to rivers or ports with bars, the delay of the Vessel and/or expenses resulting therefrom shall be for Charterer's account.

11.2 Delays/Excessive Fuel Consumption. If upon any passage the Vessel (i) fails to make the warranted speed in Box 66 or if her warranted fuel consumption exceeds that in Boxes 68-71 , either or both of which are due to defect in or breakdown of any part of her hull, machinery, or equipment; casualty; or inefficiency of Master, Officers, or crew or their failure to proceed with utmost dispatch, and (ii) is delayed more than twelve (12) hours, the hire for the time lost and any cost of extra fuel consumed, if any, shall be borne by the Owner. Any delay by ice shall be for the Charterer's account.

12. VESSEL MODIFICATIONS. The Government may at its option modify the vessels to meet new or changing mission requirements. The Government will either task the Contractor to perform or to subcontract for the modifications as a reimbursable item, or undertake the modifications itself. Any and all equipment put aboard as a result of the modifications will be Government Furnished Equipment (GFE). All GFE will be removed prior to the Vessel's re-delivery at the expense of the Government, unless otherwise agreed to. The Contractor may not modify the vessel without approval of the Contracting Officer. Any approved modifications will be fully tested and verified by the appropriate Government authority. Mission related unforeseen structural modifications affecting class or the vessel's certifications may be required. The costs of Government directed modifications, and the costs to restore the vessel to its original class or certification at award and as required by this contract shall be borne by the Government.

13. INFORMATION ASSURANCE

13.1 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.

13.2 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.

13.3 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.

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

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

13.6 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.

13.7 Handling of Non-Public Information.