3521_A0001.docx

N3220517R3521

SECTION SF 30 BLOCK 14 CONTINUATION PAGE

SUMMARY OF CHANGES

SECTION SF 1449 - CONTINUATION SHEET

The following have been modified:

PERFORMANCE WORK STATEMENT

1. Overview: This Performance Work Statement (PWS) defines call-out ship handling requirements from a U.S. flagged tug in the immediate vicinity of the Naval Sea Systems Command’s (NAVSEA) Southeast Alaska Acoustic Measurement Facility (SEAFAC) located in Behm Canal near Ketchikan, Alaska.

2. Background: The U.S. Navy requires the services of a tug vessel to occasionally assist a U.S. Navy submarine in maneuvering in or near the Behm Canal when and if the submarine is “in distress.”

3. Services Required: The following illustrates the call-out services required under this contract:

(a) Owner’s representative has adequate staff and communications to promptly respond to the Government’s request for services under this contract on a 24-hour-day basis.

(b) Provide emergency line handling, towing, twisting, mooring, assisting, pulling and escorting services to a USN submarine operating in the immediate vicinity of the NAVSEA SEAFAC facility in Behm Canal, Alaska.

4. Period of Performance:

(a) Sponsor representatives will provide notification of upcoming SEAFAC events 24 hours in advance. After notification, services shall be delivered within two (2) hours, regardless of time of day or day of week. Delivery of services is defined as a tug alongside the submarine ready to work. Any request for services shall be regarded as an emergency and the Contractor shall respond with utmost dispatch.

5. Characteristics of USN Submarines: Physical characteristics of USN submarines visiting the site follow:

6. Minimum Requirements for Contractor Provided Tug: A tug provided under this contract shall have the following minimum characteristics:

7. Schedule of Estimates: The following estimates are not a guarantee of work. They provide an estimate of the amount of time a USN submarine will operate at the NAVSEA SEAFAC facility.

(a) It is estimated that during a given performance period, the USN will operate a submarine at the NAVSEA SEAFAC facility on twelve separate occasions. The length of operations for each occasion is estimated at thirty-six (36) hours. In a given performance period, the USN requires that the Contractor be available to support a request for call-out tug services for a total of 432 hours.

8. Rate Structure: The hourly rate shall be inclusive of weekend, holidays and overtime, based on the required aforementioned availability. The service rate shall be inclusive of fuel, which will not be supplied/reimbursed by the Government.

Service Rate

Hourly Rate

(a) Tug Service Rate: The Tug Service Rate shall be earned for the first hour of service, such service to be calculated from the date and time the tug reports in all aspects ready to perform at the location, time and date (but no earlier than the date and time specified in the order, unless agreed upon by the Government) specified in the Government order. The service rate shall be inclusive of the estimated fuel consumption costs. Consecutive work shall not incur more than one Service Rate charge unless the Tug is released from government control between work.

(b) Hourly Rate: Each job shall earn the Hourly Rate, pro-rated to the nearest quarter hour, after completion of the first hour of service. The Hourly Rate will continue to be earned until the tug is dismissed by the Government. This rate applies for all types of services that the tug can perform and that are contemplated by this contract. This rate includes all of the following items: overtime (including but not limited to crew overtime/penalty time); penalty time; bonuses; payments; emoluments payable to the Master, Officers and crew for services under this contract; the cost, if any, of transit to and from the location; and any other costs incurred in responding to the Government's order.

(c) Cancelled Orders: Orders cancelled outside the required notification period shown in the Statement of Work will incur no charge. Orders cancelled within the required notification period will incur a charge equal to two hours at the hourly rate.

9. Substitution of Tugs: Substitution of tugs is authorized, but only for good cause shown and only upon proper notice to the Government and approval of the Contracting Officer.

Any tug nominated to be a substitute tug under this paragraph shall result in no additional cost to the Government, shall have substantially the same characteristics and shall be similarly fitted and otherwise equal or superior in performance to the tug for which it is being substituted. The use of the substituted tug shall result in no operational delay and shall not otherwise excuse any other performance required under this Contract.

Owner’s notification concerning substitution of tug must be made in writing to the Contracting Officer a minimum of 48 hours before non-availability of the contract tug except where urgency precludes written notice. If urgency precludes written notice, Owner shall give oral notice and shall confirm in writing within 48 hours of receipt of Government's order. Notice of substitution shall include all information required for Government to make a determination that the substitute meets the Government’s minimum requirements. Government’s notice of acceptance or rejection of the substitute tug shall be made within a reasonable time following Owner's nomination thereof, provided that the Government is furnished sufficient information on which to base such a determination. Silence of the Government shall not be construed as acceptance of any nominated tug.

10. Method of Ordering:

(a) Orders may be issued by:

· DD Form 1155 (via electronic mail); or

· Orally via Contracting Officer Only (To be confirmed in writing within 48 hours).

(b) Orders may be issued for:

· A specific movement;

· A series of movements to be performed within a one month period.

11. Schedule Minimum Total Order Quantity: This contract may or may not incorporate a minimum guaranteed amount. The inclusion of a guaranteed amount is designated by a check in the boxes below:

(c) |_| CONTRACT HAS A MINIMUM GUARANTEE:

· The government guarantees that it will order a minimum amount of work that will have a dollar amount equivalent to the following:

(d) |X| CONTRACT HAS NO MINIMUM GUARANTEE

12. Government Provided Services/Facilities: The government shall provide the following to the contractor:

(a) NONE

13. Points Of Contact:

CONTRACTING QUESTIONS:

(a) Contracting Officer, Mr. F. Carley Orvin, COMSC N103A, (757) 341-4628

(b) Contract Specialist, Ms. Kolby Harold, COMSC N103A (757) 341-6529

OPERATIONAL QUESTIONS

(a) Iben Gantt, Program Analyst, (757) 443-2711

14. Reserved.

15. Vessel Owner’s Insurance

(a) General: During the full period of this Contract, the Owner shall maintain commercially reasonable and standard marine insurance coverage on the Vessels, including Broad Form Tower’s Liability Insurance (including damage to the Tow) on each tug performing under this Contract, Hull and Machinery, Protection and Indemnity (P&I) (including Tower’s Protection and Indemnity Liability Insurance on each tug performing under this Contract), Pollution Liability, War Risk Hull and Machinery, War Risk P&I, and Second Seamen's War Risk. Except as provided herein, the Owner shall be responsible for the cost of such insurance, including deductibles, premia, additional premia, calls, commissions, advancements, assessments, and overspill claims where applicable. Within 10 calendar days following award of the contract, the Owner shall notify the Contracting Officer in writing that the required insurance has been obtained.

(b) Limitation of Liability: Except as otherwise specifically provided herein, the Charterer shall not be liable for any loss, damage, expense, cost, or liability whatsoever and howsoever incurred by the Owner or Vessel, or which are imposed upon the Owner or Vessel by operation of law. Any Amount due the Owner under paragraph (a) shall be subject to setoff by the Charterer to the extent of any amount recovered under insurance carried by the Owner, or to the extent of any amount recoverable under insurance required by paragraph (a).

(c) Cancellation or Material Change in Coverage: All policies shall contain an endorsement stating that “in the event of cancellation or any material change in policies adversely affecting the interest of the Government in such insurance, the cancellation or change shall not be effective until 30 days after written notice thereto the Contracting Officer.” Wording such as “will endeavor to mail notice” or “failure to mail such notices shall impose no obligation or liability” is not acceptable.

(d) Charterer Named Assured: The United States of America shall be named as an additional assured with waiver of subrogation under the Vessel’s Broad Form Tower’s Liability policy, Tower’s P&I policy, Hull and Machinery policy (and the Increased Value policy if applicable), the Vessel’s P&I entry, any additional pollution liability coverage, the Vessel’s War Risk Hull and Machinery policy including P&I, and Second Seaman’s War Risk.

16. War

(a) Voyage Instructions: 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 Owner 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 Owner indemnification against said risks pursuant to Public Law 85-804.

(b) The Vessel Owner shall immediately notify the Charterer: (i) whenever any sailing orders will result in a 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 List of Areas of Perceived Enhanced Risk); (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 List of Areas of Perceived Enhanced Risk) 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 Owner shall ensure that the insurers provide it relevant information in a timely manner. If the Owner has given this required notice to the Charterer, the Charterer will reimburse the Owner 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 Area of Perceived Enhanced Risk 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 Owner 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.

(c) Additional Wage Costs: The Charterer shall reimburse Owner 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. Owner 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.

17. Government War Risk Insurance/ Idemnity

(a) General: Upon receipt of notice and instruction from the Contracting Officer, as specified in the last sentence of paragraph (b) of the section entitled “War” 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 (also known as Listed Areas of Perceived Enhanced Risk) under the Owner’s commercial War Risk coverage, the Owner 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 Listed Areas of Perceived Enhanced Risk, as the case may be, subject to resumption of its commercial War Risk insurance upon exiting such area(s). In such instances, the Owner shall accept the Government’s indemnity or War Risk insurance, whichever is applicable, in lieu of such commercial War Risk insurance. The Owner 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 Owner shall retain the same risks, such as deductibles (if any), that it has under its commercial insurance.

(b) 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 Listed Areas of Perceived Enhanced Risk, or otherwise excluded under the Owner’s commercial marine War Risk trading warranties, and which are designated by notice from the Contracting Officer to the Owner:

(c) 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 Owner 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.

18. Strike Contigency Plan:

0. Per Attachment A – Submission Package, the contractor shall provide and maintain a strike contingency plan that describes how services will be provided if there is a labor strike or any other deficiency of Master or crewmembers. The plan must be practicable and must clearly state the means and method for vessel manning during a strike or labor action and for providing services in the face of disruptive measures typical of a strike situation. Award of the contract shall indicate the Contracting Officer’s approval of the plan, whose approval shall not be unreasonably withheld.

0. The contractor shall update the plan as necessary but no less frequently than yearly and not later than 30 days before the last day for the exercise of each option to extend contract term. Exercise of an option to extend the term of the contract shall indicate the Contracting Officer’s approval of the updated plan, whose approval shall not be unreasonably withheld.

19. Vessel Casualty Plan:

0. Per Attachment A – Submission Package, the contractor shall provide and maintain a vessel casualty plan that describes how services will be continued if there is a casualty to the Vessel or to a system that makes the Vessel inoperable or incapable of safely providing a required service. The plan must be practicable and must clearly state the means and method for timely acquisition and deployment of a substitute vessel in the event of a vessel casualty. Award of the contract shall indicate the Contracting Officer’s approval of the plan, whose approval shall not be unreasonably withheld.

0. The contractor shall update the plan as necessary but no less frequently than yearly and not later than 30 days before the last day for the exercise of each option to extend contract term. Exercise of an option to extend the term of the contract shall indicate the Contracting Officer’s approval of the updated plan, whose approval shall not be unreasonably withheld.

20. Incident Reports: In all instances in which any vessel being handled by Owner’s Vessel(s) sustains damage or is involved in any incident resulting in damage to vessels or property, or in bodily injury or death, Owner shall secure a report from the Vessel Master or Officer acting as pilot, and from any licensed pilot aboard the vessel being handled. Owner shall submit said report to the Contracting Officer within twenty-four hours following said incident, reporting the facts, listing deaths, reporting the extent of damages to property and any bodily injuries, and listing recommendations to prevent recurrence.

21. Compliance: All vessels shall be compliant with all applicable Federal and state laws and regulations and in particular, with all applicable U.S. Coast Guard regulations for vessels and their operation.

22. Reserved.

23. Supercargo And Government Designated Representatives (Aug 2005)

(a) Charterer’s Option. The Charterer shall have the right to assign supercargo (supercargo as used herein is both plural and singular) and other Government designated representatives aboard the Vessel for duty purposes to the extent that accommodations and United States Coast Guard certification (when applicable) allow and in accordance with COMSC Instruction 3121.9 Series. The Charterer shall pay an amount of $30.00 per day, per person, covering all expenses including accommodations and victualling. The Owner shall victual U.S. Government designated representatives, pilots, and Customs Officers when authorized by the Charterer at $7.00 per meal. The Government particularly reserves the right to put a representative onboard the Vessel, with the pilot, at the approach to a discharge port (or otherwise as mutually agreeable) to inspect the Vessel and to monitor the unloading; reimbursement for accommodations and/or victualling is to be as described above.

(b) Military Personnel. In addition to the carriage of personnel, the Charterer shall have the right to assign other military personnel aboard the Vessel. Such personnel are not to require victualling or berthing facilities from the Vessel unless requested by the military commander aboard, in which case the Owner will be reimbursed out-of-pocket expenses not to exceed the amount per person per day set forth above. The Owner shall provide sufficient lifesaving equipment for such personnel in accordance with SOLAS and all other applicable regulatory requirements.

(c) Charterer’s Liability. The Charterer shall be liable to the Owner for any loss of the Vessel's fittings or appurtenances or any damage to the Vessel, her fittings, or appurtenances caused by the act of supercargo or Government designated representatives in the embarkation, carriage, or debarkation of supercargo or Government designated representatives to the extent such loss or damage is not payable under the Vessel's insurance policies. However, the Charterer shall not be liable for such damage unless written notice specifying such damage and, if obtainable, the name of the party or parties causing such damage shall have been given to the Charterer or its authorized representative within a reasonable time.

24. Wage Determination: Wage Determination (2015-0213 Rev.6) is incorporated into this contract and is available upon request. Please contact Kolby Harold (kolby.harold@navy.mil) or Carley Orvin (franklin.orvin@navy.mil) to obtain wage determination.

25. Funding: Funding will be provided with each individual task order. Expenditures may not exceed the funding on any task order for that purpose.

26. Reserved.

27. Tug Complement And Crew:

(a) The Master(s), Officers and entire crew shall be US citizens, speak English fluently, and possess valid and current United States Coast Guard certificates, licenses, and documents. The Master, Officers and crew of the Tug(s) shall be appointed or hired by the Contractor and shall be deemed to be the servants and agents of the Contractor at all times except as otherwise expressly specified in this contract. The Master(s) of the Tug(s) shall be under the direction of the Government as regards the employment of the Tug(s) under a given order, but shall not be under Government's orders as regards navigation, care, and custody of the Tug(s).

(b) Physical security equipment required to meet port security plans shall be Contractor-furnished.

(c) All contractor employees shall wear a contractor-furnished uniform with Contractor and individual identification clearly and permanently marked. Individual employee names shall be visible on front of outer clothing. Contractor name shall be visible on the upper back of uniforms.

(d) All contractor employees shall have in their possession photo identification at all times when working under this Charter Party Contract.

(e) If the Charterer shall have reason to be dissatisfied with the conduct or performance of the Master, Officers, or crew, the Contractor shall, on receiving particulars of the complaint, investigate the matter and, if necessary to alleviate the cause of the complaint, make a change in personnel.

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