CPS_COTS_MFM_HW_&_SW_SOW_Rev_M.docx

Statement of Work (SOW) for Carolina Power Systems Multi-Function Monitor

1.0 INTRODUCTION

The Naval Surface Warfare Center Philadelphia Division (NSWCPD) is a Department of Defense entity responsible for research and development, test and evaluation, engineering and fleet support organization for the Navy’s ships, submarines, military watercraft and unmanned vehicles. This requirement is for NSWCPD Code 441, which is responsible for DDG 51 In-Service support and integration of the DDG 51 Modernization Program.

This contract is for non-personal services. It does not create employment rights with the U.S. Government whether actual, inherent, or implied

1.0.1 Government / Contractor Relationship

(a) The services to be delivered under this Contract/Task Order are non-personal services and the parties recognize and agree that no employer-employee relationship exists or will exist under the Contract/Task Order between the Government and the Contractor's personnel. Therefore, it is in the best interest of the Government to provide both parties a full understanding of their respective obligations.

(b) The Contractor employees shall identify themselves as Contractor personnel by introducing themselves or being introduced as Contractor personnel and displaying distinguishable badges or other visible identification for meetings with Government personnel. In addition, Contractor personnel shall appropriately identify themselves as Contractor employees in telephone conversations and in formal and informal written correspondence

(c) Contractor personnel under this Contract/Task Order shall not engage in any of the inherently Governmental functions listed at FAR Subpart 7.5 or DFARS Subpart 207.5.

(d) Employee Relationship:

(e) Inapplicability of Employee Benefits: This Contract/Task Order does not create an employer-employee relationship. Accordingly, entitlements and benefits applicable to such relationships do not apply.

(f) Notice. It is the Contractor's, as well as the Government's, responsibility to monitor Contract/Task Order activities and notify the Contracting Officer if the Contractor believes that the intent of this Section has been or may be violated.

1) The Contractor shall notify the Contracting Officer in writing via letter or email within three (3) calendar days from the date of any incident that the Contractor considers to constitute a violation of this Section. The notice should include the date, nature, and circumstances of the conduct; the name, function, and activity of each Government employee or Contractor official or employee involved or knowledgeable about such conduct; identify any documents or substance of any oral communication involved in the conduct; and the Contractor's estimated date when, absent a response, cost, schedule or performance will be impacted.

2) The Contracting Officer will, within five (5) calendar days after receipt of notice, respond to the notice in writing. In responding, the Contracting Officer will either:

1.1 BACKGROUND

The DDG 51 Electrical Power Systems Branch (Code 441) and the Power Systems Division (DIV 44), of the Naval Surface Warfare Center Philadelphia Division (NSWCPD), provide services for DDG 51 Class Ships’ electrical power systems support such as technical guidance, ship alterations, various quality assurance functions such as Quality Planning, inspection and testing, auditing, reconciliation with DCMA, and review of objective quality evidence. Current programs under DIV 44’s responsibility include the DDG 51 Ship Construction Navy (SCN), DDG 51 Modernization Program and DDG 51 In-Service Program. NSWCPD intent is to replace the DDG 91 through DDG 102 obsolete main bus electric plant protective devises with the CPS (Carolina Power Systems) Multi-Function Monitor III (MFM III) IAW Ship Change Document (SCD) 22821.

1.2 SCOPE OF WORK

The Contractor shall provide engineering and technical services required to design, fabricate, assemble, qualify and test the electric plant protective systems software and hardware for the DDG 51 Class Ships specifically for DDG 91 through DDG 102. The contractor shall modify the DDG-113 And Follow (AF) Caroline Power System (CPS) Multi-Functional Monitor III (MFM III) Operational Software to reflect the DDG-91 through DDG-102 Electrical Plant architecture. The contractor shall deliver to Naval Surface Warfare Philadelphia Division (NSWCPD) the updated software version to reflect the DDG-91 through DDG-102 Electrical Plant architecture. The contractor shall also design and deliver to NSWCPD twelve (12) ship sets of seven (7) CPS MFM III per ship set with the modified software that reflects the DDG-91 through DDG-102 Electrical Plant architecture.

The Contractor shall be responsible for the development of test procedures necessary to ensure the modified software meets the capabilities to protect the electric plant configuration aboard DDG 91 though DDG 102. The modified software shall allow the MFM to interface over the Gigabit Ethernet Data Multiplex (GEDMS) network on DDG 91 to DDG 102 and to communicate with the Machinery Control System (MCS).

2.0 APPLICABLE DOCUMENTS

2.1 SE565-AK-MMC-010: TECHNICAL MANUAL FOR MULTI-FUNCTION MONITOR (MFM) MODEL 4504A1000-1

2.2 S9324-GY-MMA-010: TECHNICAL MANUAL 60 HZ SWITCHBOARDS, LOAD CENTERS AND 400 HZ SWITCHBOARDS

2.3 507-324-14B: PURCHASE SPECIFICATION FOR MFM III

2.4 S9086-KC-STM-010: NAVAL SHIPS’ TECHNICAL MANUAL (NSTM) CHAPTER 300

3.0. REQUIREMENTS

3.1 DDG 91 through DDG 102 CPS MFM III Software Development and Support.

3.1.1 The Contractor shall modify the DDG-113 And Follow (AF) Caroline Power System (CPS) Multi-Functional Monitor III (MFM III) Operational Software to meet the capabilities of the DDG-91 through DDG-102 Electrical Plant architecture. The contractor shall modify the CPS MFM III software to adjust for the differences in the 2SA longitudinal circuit breaker location as well as the absence of longitudinal circuit breakers at the1S and 3S switchboards.

3.1.2. The contractor shall incorporate the government furnished DDG 91 through DDG 102 Integrated Protective Coordination System (IPCS) and MFM I algorithms into the latest approved CPS MFM III software code.

3.1.3 The contractor shall be responsible for the Non-Recurring Engineering tasks that include design and programming required to implement the DDG-91 through DDG-102 electric plant breaker configuration, testing and debugging and Software Version:

a. The Contractor shall update the CPS MFM III operating system to CENTOS Version 7 or greater or an equivalent operation system.

b. The Contractor shall incorporate all Approved software ECP(s) into the MFM software.

c. The Contractor shall utilize the fourteen NSWCPD CPS MFM III A1 Modules, located at the CPS facility, to test the DDG-91 through DDG-102 software and shall return the MFM III A1 Module hardware once the DDG-91 through DDG-102 software testing has been satisfied.

d. The Contractor shall remove all non DDG-91 through DDG-102 MFM III Long Ties and all long tie circuit breaker control functions and other code from the existing software.

See Figure 1 for DDG-91 through DDG-102 Electrical breaker configuration diagram.

e. The Contractor shall update all of the CPS MFM Front Panel menus for MFM#1, MFM#2, MFM#7 and MFM#8 to remove all non DDG-91 through DDG-102 electrical plant Long Tie (LT) breaker references. Update any miscellaneous LT breaker references in all menus.

f. The Contractor shall update the Remote Network Access (RNA) set points menus to reflect removal of non DDG-91 through DDG-102 Long Tie (LT) breaker for both the Normal and Test Mode functions.

g. The Contractor shall make changes to System Information Matrix (SIM) given the removal of any non DDG-91 through DDG-102 Long Tie (LT) circuit breakers. Update fault buffer download, and update SIM in the front panel display menu.

h. The Contractor shall update the GEDMS communications for DDG-91 to 102 for status message transmission and time synchronization to and from Machinery Control Stations (MCS).

i. The Contractor shall verify and update as required the proper time synchronization with new software, including the timestamp received for the entire MFM system.

j. The Contractor shall integrate new IPCS test mode data for each fault scenario reflecting the DDG-91 to DDG-102 electric plant configuration and modify the format as required.

k. The Contractor to perform full Unit First Article Testing (FAT) and System FAT to ensure all software modifications do not impact the designed functionality of the equipment. Refer to Section 3.2.3 of this SOW for additional detail concerning Unit FAT and System FAT.

l. The Contractor shall perform regression testing of each fault location for all split and parallel electric plant configurations and provide software modifications as required. This includes but is not limited to the following:

a. The Contractor shall test each fault scenario and validate all circuit breakers trip as expected.

b. The Contractor shall test each fault location.

c. The Contractor shall perform each test mode validation.

3.1.4. The contractor shall modify the latest approved software revision, Revision C or newer, to incorporate all the changes outlined in section 3.1.3 of this SOW. Modifications to the Revision C or newer software shall not impact the preexisting capabilities of the MFM System. The contractor shall allow the Government 180 days from delivery of software to validate the modifications to the software did not impact the preexisting capabilities of the MFM System.

3.1.5. The contractor shall prepare a test procedure, IAW CDRL A005, to validate the changes outlined in section 3.0 of this SOW. The contractor shall provide a copy of the test procedure to the Government no later than 30 days prior to the commencement of Firmware / Software Validation Testing.

3.1.6. The contractor shall perform Software / Firmware Validation Testing. Software validation shall be conducted to simulate the MFM ship system, in accordance with SE565-AK-MMC-010: TECHNICAL MANUAL FOR MULTI-FUNCTION MONITOR (MFM) MODEL 4504A1000-1 Section 3.4.3.2 Electrical Interconnects, Figure 3-26 MFM System Interconnect Diagram, with existing vendor equipment or via simulation.

3.1.7. The contractor shall support onsite visits for interim and final testing which require access to a full ship set of MFM III equipment at the NSWCPD Land Based Engineering Site (LBES), 901 Admiral Peary Way, Philadelphia, Pa 19112 and a working FODMS/GEDMS network connection for software validation and troubleshooting to ensure proper software functionality. The following tasks shall be performed during the visits (Non-Recurring):

a. Visit #1 – Initial kick off meeting.

b. Visit #2 – Interim visit for the purpose of validating and troubleshooting.

c. Visit #3 – Interim visit for the purpose of validating and troubleshooting.

d. Visit #4 – Final meeting to validate the final software configuration during the DDG 51 Land Based Engineering Site (LBES) Hot Plant. Post Final visit shall be two (2) day duration for the purpose of validating and troubleshooting during the DDG 51 Land Based Engineering Site (LBES) Hot Plant Testing.

3.1.8. The Contractor shall prepare a test report, IAW CDRL A006, Test/Inspection Report; Test Reports, of this SOW, to document the result of the testing. If a failure occurs during any test, the Contractor shall document the failure and causes in the Test Report. The final Test Report shall be submitted only after failures (if any) have been corrected, and the applicable test has been repeated to verify adequacy of the correction.

3.1.9 The contractor shall provide the Firmware / Software Modification, IAW CDRL A007 and Installation procedure, IAW CDRL A008, on disk to the Government. The contractor shall deliver the Firmware / Software Modification and Installation instructions to NSWCPD within 364 days from award of contract.

3.1.10 The contractor shall provide Operational and Set-up procedures, IAW CDRL A009, which contain instruction to configure the CPS MFM upon boot up and to update all CPS MFM III Technical Manual reference material to incorporate the DDG 91 through DDG 102 Electric Plant configuration changes outlined in this SOW. This includes but is not limited to the following:

(a) This procedure will contain all associated reference material including figures, tables and diagrams to reflect the DDG 91 through DDG 102 Electric Plant configuration.

(b) This procedure will include a Boot-Up procedure to Configure the MFM based on the ships’ Electric Plant configuration; DDG 91-102, DDG 103-112, DDG 113-124 & DDG 125AF.

(c) This procedure will not impact the various other electric plant configurations present in the latest version of the CPS MFM III Technical Manual; DDG 103-112, DDG 113-124 & DDG 125AF.

(d) All procedures to be in a format that can be easily incorporated into the CPS MFM Technical Manual.

3.1.11 The contractor shall adhere to the guidelines provided in Enclosure 1 of this SOW.

3.2 CPS MFM III Hardware Development and Support.

3.2.1 The Contractor shall design, fabricate, assemble, qualify, and test CPS MFM III to meet the performance requirements specified within the DDG 51 Class MFM III Purchase Specification provided in Attachment A. The MFM III shall provide directional over-current protection, directional power protection, breaker monitoring, control and metering functions, reporting and alarm functions, and communications as described herein. The monitor shall be capable of being applied in either a single or dual breaker application. The MFM III shall have a highly flexible programmable logic system and shall allow the user to apply the available functions with flexibility and ease. Programmable inputs and outputs, extensive self-diagnostics, communications feature and a user-friendly HMI interface shall be provided unless indicated as provided by the Government, all assemblies, subassemblies, and components identified or required for proper operation of the equipment, shall be furnished by the Contractor. The Contractor shall provide qualified personnel, materials, facilities, equipment, controls and control interfaces, test instrumentation, data collection and analysis, hardware, software, and services that support the product areas and applicable documents for the engineering change. This includes, but is not limited to, machinery control system design and integration, mechanical and electrical power interface requirements, network systems interfaces, and design integration.

3.2.2 The Contractor shall build twelve (12) CPS MFM III shipsets. Each Ship Set shall consist of the following components and subsystems, at a minimum:

a. Eight (1) CPS MULTIFUNCTION MONITOR III, ASSEMBLY – (CPS P/N 1297-00-010). NOTE: One (1) CPS MFM III will be utilized as a spare unit.

b. Seven (7) ADDRESSING CONNECTOR, ASSEMBLY – (CPS P/N 1297-13-010)

c. Two (2) suite of Remote Network Access & System Software, & Source Code (DDG91-DDG102)

d. All required drivers, API’s and COTS software licensing with installation media.

NOTE: One of the components on the A1 card is obsolete and NSWCPD will provide the part NIIN-01-664-0063 at no cost to the contractor. This line item cost will be subtracted from purchase price.

3.2.3. The Contractor shall perform Factory Acceptance Tests (FAT) on every deliverable system including reconditioned FAT equipment set. This testing includes verification that the system complies with the requirements for service use and that it performs all of its functions as part of the MFM III in accordance with all requirements stated in this Contract.

The Contractor factory acceptance test shall ensure that all software components, hardware components, and networking elements work as an integrated system. This shall include MFM III software, operating systems, input/output circuit cards, CPU card(s), storage devices, COTS applications, general network connectivity and any other Contractor-Furnished hardware, software, or features. Events shall include the testing of software drivers to support updated chip sets and other devices associated with the design. Results of factory acceptance shall be provided in a report per CDRL A012.

3.2.4 Commonality of Systems, Subsystems, and Components

Not Applicable (N/A)

3.2.5 The contractor shall provide onsite support for the first two (2) CPS MFM shipset installations, two (2) trips for each install, for troubleshooting to ensure proper hardware integration and functionality. The following tasks shall be performed via testing visits (Non-Recurring).

3.2.6 The Contractor shall incorporate all Approved hardware ECP(s) into the MFM system.

4. DATA REQUIREMENTS

4.1 Contract Status Report (CDRL A001)

4.1.1 This report shall reflect both prime and Subcontractor data if applicable at the same level of detail.

4.1.2 The CDRL shall be delivered electronically, unless otherwise stated, and while Contractor's format is acceptable the Government's approval must be received in writing from the COR within 5 business days before formal submission.

4.1.3 Labor Rate Tripwire Justification

4.1.3.1 The contractor shall advise the COR and the Contract Specialist, by email, if the pending addition of any individual (Key or non-Key) will be at fully burdened average labor rate (including pass-through and/or target fee) that exceeds the labor tripwire amount. The Contractor shall not proceed with the addition until the contractor is advised by the Contract Specialist that the request has been approved by the Contracting Officer.

4.1.3.2 The contractor’s request shall include, the proposed individual’s resume, labor hourly rate build-up, labor hours per work year, detailed justification for the addition of the particular individual based on his/her technical expertise and projected technical impact on the Task Order. If the individual is a subcontractor or consultant, the rate build-up shall include the prime contractor’s pass through rate.

4.1.3.3 Currently, the fully burdened average labor rate of $156/hour or greater, regardless of the number of labor hours the proposed individual (prime, subcontractor, or consultant) will work. The contractor will be advised of any changes to this tripwire level that occur during performance. All Fully Burdened Labor rates of $156/hour or greater shall require the COR and the PCO’s review and written approval.

4.2 Travel Report (CDRL A002)

4.2.1 This report shall reflect both prime and subcontractor data if applicable at the same level of detail.

4.2.2 The CDRL shall be delivered electronically, unless otherwise stated, and while Contractor’s format is acceptable, Government’s approval is required from the COR.

4.2.3 The contractor may be required to travel in performance of this task order. The numbers of trips and types of personnel traveling shall be limited to the minimum required to accomplish work requirements and shall be coordinated with the COR. All travel shall be conducted in accordance with FAR 31.205-46 Travel Costs and the Federal Travel Regulations (FTR) and shall be pre-approved by the COR. The contractor shall submit travel reports in accordance with DI-MGMT-81943 (CDRL A002).

4.3 Software Version Description (DI-IPSC-81442) (A003)

4.3.1 This report shall reflect both prime and subcontractor data if applicable at the same level of detail.

4.3.2 The CDRL shall be delivered electronically, unless otherwise stated, and while Contractor’s format is acceptable, Government’s approval is required from the COR.

4.4 Certificate of Identicality (DI-MISC-81356A) (A004)

4.4.1 This report shall reflect both prime and subcontractor data if applicable at the same level of detail.

4.4.2 The CDRL shall be delivered electronically, unless otherwise stated, and while Contractor’s format is acceptable, Government’s approval is required from the COR.

4.5 Test Procedures (DI-NDTI-80603) (CDRL A005)

4.5.1 This report shall reflect both prime and subcontractor data if applicable at the same level of detail.

4.5.2 This document shall be searchable and format shall be compatible with Microsoft Office or Adobe Acrobat.

4.6 Test & Inspection Report (DI-NDTI-80809) (CDRL A006)

4.6.1 This report shall reflect both prime and subcontractor data if applicable at the same level of detail.

4.6.2 This document shall be searchable and format shall be compatible with Microsoft Office or Adobe Acrobat.

4.7 Firmware / Software Product (DI-IPCS-81488) (CDRL A007)

4.7.1 This report shall reflect both prime and subcontractor data if applicable at the same level of detail.

4.7.2 This CDRL shall be submitted NLT 160 days from award of contract.

4.8 Installation Specification (DI-QCIC-80154A) (CDRL A008)

4.8.1 This report shall reflect both prime and subcontractor data if applicable at the same level of detail.

4.8.2 This document shall be searchable and format shall be compatible with Microsoft Office or Adobe Acrobat.

4.9 Tech Manual Updates (DI-TMSS-80527C) (CDRL A009)

4.9.1 This report shall reflect both prime and subcontractor data if applicable at the same level of detail.

4.9.2 This CDRL shall be submitted NLT 160 days from award of contract.

4.10 Acceptance Test Report (DI-QCIC-81891) (CDRL A010)

4.9.1 This report shall reflect both prime and subcontractor data if applicable at the same level of detail.

4.9.2 Distribution Statement B. Distribution authorized to U.S. Government agencies only for contractor performance evaluation, 6 August 2015. Other requests for this document shall be referred to Commander, Naval Surface Warfare Center, Philadelphia Division, 5001 South Broad Street, Building 4, Philadelphia, PA 19112.

4.9.3 This CDRL shall be submitted no later than 30 days after test is complete.

5. SECURITY REQUIREMENTS

Not Applicable (N/A)

5.1 U-NNPI SECURITY REQUIREMENTS

Not Applicable (N/A)

6. PLACE OF PERFORMANCE

An initial, interim and final site visit is to be performed at the NSWCPD DDG 51 Land Based Engineering Site (LBES) for the software development section of this SOW. It is estimated 95% of the software development and testing will occur on-site at the Contractor facility and 5% off-site at the NSWCPD DDG 51 LBES. Interim and final testing shall require access to a full ship set of MFM III equipment at the NSWCPD Land Based Engineering Site (LBES), 901 Admiral Peary Way, Philadelphia, Pa 19112 and a working FODMS/GEDMS network connection for software validation and troubleshooting to ensure proper software functionality.

6.1 Performance will occur at the following government sites:

NSWCPD

6.1.1 Government will provide the Generator Protection Laboratory space for up to three (3) Contractor personnel under this Contract/Task Order.

6.1.2 The specific location(s) will be provided at time of award of the Contract/Task Order. The Contractor shall provide a list of employees who require access to these areas, including standard security clearance information for each person, to the Contracting Officer Representative (COR) no later than three business days after the date of award. The work space provided to the Contractor personnel shall be identified by the Awardee, with appropriate signage listing the company name and individual Contractor employee name.

6.1.3 Access to Government buildings at Naval Surface Warfare Center Philadelphia Division is from 0600 to 1800 Monday through Friday, except Federal holidays. Normal work hours are from 0600 to 1800, Monday through Friday. Contractor employees shall be under Government oversight at all times. Government oversight requires that a Government employee be present in the same building/facility whenever Contractor employee(s) are performing work under this Contract/Task Order. Contractor personnel are not allowed to access any Government buildings at NSWCPD outside the hours of 0600 to 1800 without the express approval of the Procuring Contracting Officer (PCO).

6.1.4 Early Dismissal and Closure of Government Facilities

When a Government facility is closed and/or early dismissal of Federal employees is directed due to severe weather, security threat, or a facility related problem that prevents personnel from working, onsite Contractor personnel regularly assigned to work at that facility should follow the same reporting and/or departure directions given to Government personnel. The Contractor shall not direct charge to the contract for time off, but shall follow its own company policies regarding leave. Non-essential Contractor personnel, who are not required to remain at or report to the facility, shall follow their parent company policy regarding whether they should go/stay home or report to another company facility. Subsequent to an early dismissal and during periods of inclement weather, onsite Contractors should monitor radio and television announcements before departing for work to determine if the facility is closed or operating on a delayed arrival basis.

When Federal employees are excused from work due to a holiday or a special event (that is unrelated to severe weather, a security threat, or a facility related problem), on site Contractors will continue working established work hours or take leave in accordance with parent company policy. Those Contractors who take leave shall not direct charge the non-working hours to the Contract/Task Order. Contractors are responsible for predetermining and disclosing their charging practices for early dismissal, delayed openings, and closings in accordance with the FAR, applicable cost accounting standards, and company policy. Contractors shall follow their disclosed charging practices during the Contract/Task Order period of performance, and shall not follow any verbal directions to the contrary. The PCO will make the determination of cost allowability for time lost due to facility closure in accordance with FAR, applicable Cost Accounting Standards, and the Contractor's established accounting policy.

7. TRAVEL

The Contractor may be required to travel from the primary performance location when supporting this requirement. The estimated number of trips is __8__.

Travel in support of this requirement is anticipated to include, but may not be limited to, the following alternate performance locations:

Philadelphia, PA San Deigo, CA Norfolk, VA

The numbers of trips and types of personnel traveling shall be limited to the minimum required to accomplish work requirements. All travel shall be approved by the COR and Contracting Officer before travel occurs. Approval may be via the Technical Instruction (TI). In accordance with the TI instructions, before initiating any travel the Contractor(s) shall submit a detailed and fully-burdened estimate that includes the number of employees traveling, their expected travel costs for airfare, lodging, per diem, rental car, taxi/mileage and any other costs or actions requiring approval. The travel estimate shall be submitted to the Contracting Officer's Representative (COR) and Contract Specialist. Actuals cost, resulting from the performance of travel requirements, shall be reported as part of the Contractor's monthly status report. The reportable cost shall also be traceable to the Contractor's invoice

All travel shall be conducted in accordance with FAR 31.205-46, Travel Costs, and HQ B-2-0020 Travel Cost – Alt I (NAVSEA) and shall be pre-approved by the COR. The Contractor shall submit travel reports in accordance with DI-MGMT-81943 (CDRL A002).

Travel Costs

The current “maximum per diem” rates are set forth in the (i) Federal Travel Regulations for travel in the Continental United States; (ii) Joint Travel Regulations for Overseas Non-Foreign areas (e.g., Alaska, Hawaii, Guam, Puerto Rico, etc.); and (ii) Department of State (DOS) prescribed rates for foreign overseas locations.

8.0 GOVERNMENT FURNISHED PROPERTY

All Government Furnished Property (GFP) identified in Table 1 and Table 2 will be provided no later than 60 days from contract award date.

Table 1: GFP Hardware List

Table 2: GFP Software List

9. PURCHASES

Only items directly used and incidental to the services for this Contract/Task Order and for work within the scope of the Statement of Work/Performance Work Statement, shall be purchased under the Other Direct Cost (ODC) line items. Individual purchases above $10,000 shall be approved by the Contracting Officer prior to purchase by the Contractor. The purchase request and supporting documentation shall be submitted via email to the Contracting Officer and the Contracting Officer's Representative (COR) it shall be itemized and contain the cost or price analysis performed by the Contractor to determine the reasonableness of the pricing.

Information Technology (IT) equipment, or services must be approved by the proper approval authority. All IT requirements, regardless of dollar amount, submitted under this Contract/Task Order shall be submitted to the PCO for review and approval prior to purchase. The definition of information technology is identical to that of the Clinger-Cohen Act, that is, any equipment or interconnected system or subsystem of equipment that is used in the automatic acquisition, storage, manipulation, management, movement, control, display, switching, interchange, transmission, or reception of data or information. Information technology includes computers, ancillary equipment, software, firmware and similar procedures, services (including support services), and related resources.

10. COUNTERFEIT MATERIAL PREVENTION

10.1 Electronic End-Items

10.1.1 Counterfeit Parts and Materials Planning

The contractor planning shall document procedures and processes to minimize the risk of procuring and/or using counterfeit parts and materials, and their process for detecting counterfeit materiel in the event it is procured. This requirement applies to both new/modified and existing mission and safety critical hardware.

10.1.2 Counterfeit Parts and Materials System

System criteria. A counterfeit electronic part detection and avoidance system shall include risk-based policies and procedures that address, at a minimum, the following areas:

· The training of personnel.

· The inspection and testing of electronic parts, including criteria for acceptance and rejection. Tests and inspections shall be performed in accordance with accepted Government- and industry-recognized techniques. Selection of tests and inspections shall be based on minimizing risk to the Government. Determination of risk shall be based on the assessed probability of receiving a counterfeit electronic part; the probability that the inspection or test selected will detect a counterfeit electronic part; and the potential negative consequences of a counterfeit electronic part being installed (e.g., human safety, mission success) where such consequences are made known to the Contractor.

· Processes to abolish counterfeit parts proliferation.

· Risk-based processes that enable tracking of electronic parts from the original manufacturer to product acceptance by the Government, whether the electronic parts are supplied as discrete electronic parts or are contained in assemblies, in accordance with paragraph (c) of the clause at 252.246-7008, Sources of Electronic Parts (also see paragraph (c)(2) of this clause).

· Use of suppliers in accordance with the clause at 252.246-7008.

· Reporting and quarantining of counterfeit electronic parts and suspect counterfeit electronic parts. Reporting is required to the Contracting Officer and to the Government-Industry Data Exchange Program (GIDEP) when the Contractor becomes aware of, or has reason to suspect that, any electronic part or end item, component, part, or assembly containing electronic parts purchased by the DoD, or purchased by a Contractor for delivery to, or on behalf of, the DoD, contains counterfeit electronic parts or suspect counterfeit electronic parts. Counterfeit electronic parts and suspect counterfeit electronic parts shall not be returned to the seller or otherwise returned to the supply chain until such time that the parts are determined to be authentic.

· Methodologies to identify suspect counterfeit parts and to rapidly determine if a suspect counterfeit part is, in fact, counterfeit.

· Design, operation, and maintenance of systems to detect and avoid counterfeit electronic parts and suspect counterfeit electronic parts. The Contractor may elect to use current Government- or industry-recognized standards to meet this requirement.

· Flow down of counterfeit detection and avoidance requirements, including applicable system criteria provided herein, to subcontractors at all levels in the supply chain that are responsible for buying or selling electronic parts or assemblies containing electronic parts, or for performing authentication testing.

· Process for keeping continually informed of current counterfeiting information and trends, including detection and avoidance techniques contained in appropriate industry standards, and using such information and techniques for continuously upgrading internal processes.

· Process for screening GIDEP reports and other credible sources of counterfeiting information to avoid the purchase or use of counterfeit electronic parts.

· Control of obsolete electronic parts in order to maximize the availability and use of authentic, originally designed, and qualified electronic parts throughout the product’s life cycle.

10.1.3 Preventing Counterfeit Parts and Materials

The Contractor shall take steps as defined in DFARS 252.246-7007 and herein to minimize the risk of receiving counterfeit parts and materials. The Contractor shall:

• Maximize availability of authentic, originally designed and/or qualified parts throughout the product’s life cycle, including management of parts obsolescence

• Assess potential suppliers to minimize the risk of receiving counterfeit parts or materials

• Maintain a listing of approved suppliers with documented criteria for approval and removal of suppliers from the list

• Have purchasing procedures which require the selection of parts and materials from OM or authorized suppliers whenever possible

• Require a certificate of compliance and supply chain traceability for all electronic part purchases, and provide to the Government upon request

• Use Government or industry services such as GIDEP and other commercially available services to identify part or supplier quality or authenticity problems

• Define minimum inspection and test requirements for parts being procured from unauthorized suppliers, and shall ensure that in-house, third-party, and/or distributor inspection and test procedures and facilities comply with these requirements

• Incorporate procurement clauses which plainly identify quality requirements and liability to all approved suppliers

• Flow the requirements above to affected Subcontractors

10.1.4 Counterfeit Parts and Materials

The following minimum processes shall be implemented and flowed down by the Contractor to all subcontractors. In order to minimize the risk of use of counterfeit parts in MFM III, spare parts and associated equipment.

The contractor shall establish processes to minimize the risk of procuring and using counterfeit parts and materials. The contractor shall document these processes and provide those documented processes to Government representatives upon request.

At a minimum, these processes shall ensure that:

• All components for MFM III electronic assemblies and subassemblies are purchased from Original Manufacturer (OM), authorized suppliers, or franchised distributors; At a minimum, the contractor shall ensure that procurement practices and processes to purchase and install components from OM, authorized suppliers, or franchised distributors are flowed down to subcontractors and suppliers at all tiers

• A counterfeit Prevention Plan shall be generated in accordance with DI-MISC-81832 Counterfeit Prevention Plan, and that the requirements of this DID are flowed down to all subcontractors and suppliers in this effort;

• The Contractor shall maximize the use of authentic, originally designed and/or qualified parts

• The contractor shall assess potential suppliers to minimize the risk of receiving counterfeit parts or materials

• The contractor shall have purchasing procedures which confirm whether a selected supplier is authorized for each purchase

• The contractor shall define minimum inspection and test requirements for parts being procured and shall ensure that in-house, third-party, and/or supplier inspection and test procedures and facilities comply with the requirements of this section. These minimum inspection and test requirements shall specify appropriate test methods to detect potential counterfeit parts and materials

• The contractor shall require a certificate of conformance and supply chain traceability for all electronic part purchases

• The contractor shall use government or industry services such as GIDEP and other commercially available services to identify part or supplier quality or authenticity problems. The Contractor shall notify NSWCPD of the occurrence of a confirmed counterfeit part or material and the actions taken to identify, contain, and impound all product from the lot, within 7 working days of confirmation of the counterfeit status. The Contractor shall flow down a requirement for similar notification from Subcontractors or suppliers at any tier to the Contractor. The contractor shall initiate and submit an ALERT to the Government- Industry Data Exchange Program (GIDEP) within 60 days of knowledge of the counterfeit part or material. Counterfeit parts may be electronic or mechanical in nature. Counterfeit electronic parts may typically be used parts which have been refurbished and represented as new. Commonly counterfeited electronic parts include parts such as microcontrollers or specially screened devices, or common parts, which have several pin-compatible versions from multiple manufacturers, such as memory devices and operational amplifiers. Counterfeit mechanical parts are typically improperly made, marked, or treated products. Examples are improper anodization or heat treatments (or falsified data), mismarked parts sold as higher grade steel, or used/fake parts such as valves or circuit breakers.

10.1.5 Data Item Description

Data Item Description (DID) DI-MISC-81832, Counterfeit Prevention Plan: This DID describes the format and content of a contractors “Counterfeit Prevention Plan,” and should be used by the procurement activity when requesting delivery of a counterfeit prevention plan.

10.1.6 Grey Market Statement (For CISCO Equipment)

Reseller and Equipment Qualification: Reseller shall certify that it is a CISCO Authorized Channel Partner as of the date of the submission of their offer, and that it has the certification/specialization level required by the Manufacturer to support both the product sale and product pricing, in accordance with the applicable Manufacturer certification/specialization requirements: Please provide proof of certification level with your quote submission. If proof of certification level is not provided with your quote submission, your quote may be considered non‐responsive. Vendor shall warrant that the products are NEW and in their original UNOPENED box. Only CISCO installed and configured components are acceptable. Installation and / or configuration of third party components, or installation and / or configuration of OM components by any other than CISCO are NOT acceptable. The Vendor confirms to have sourced all Manufacturer products submitted in this offer from Manufacturer or through Manufacturer Authorized Channels only. Vendor shall provide Buyer with a copy of the End User license agreement pre‐award, and shall certify that all Manufacturer software is licensed originally to Buyer as the original licensee authorized to use the Manufacturer Software. Only authentic OM equipment and support services sourced from authorized OM channels are acceptable. Equipment, materials, and services not meeting the above stated qualifications are not acceptable and will be returned to the reseller.

10.1.7 Containing Counterfeit Parts and Materials

Suspect counterfeit parts and materials shall be impounded with all other items from the same lot. The contractor shall identify and locate all potential users or hardware items with the suspect part or material, and contain product which has this suspect product, pending confirmation of the part or material’s authenticity. The OM may be involved at this point in order to verify authenticity. Confirmed counterfeit material shall be contained and provided to investigative agencies for ongoing investigation or prosecution. The counterfeit product shall not be scrapped or otherwise disposed of without approval from investigative authorities or the program office. Confirmed counterfeit product shall not be returned or handled in a way which would allow its resale or reuse. Suspect counterfeit parts or materials whose authenticity (or lack of) cannot be definitively determined, shall be dispositioned via Material Review Board (MRB).

10.1.8 Reporting Counterfeit Parts and Materials

The prime contractor and program office shall be notified of the occurrence of a suspect or confirmed counterfeit part or material, and the actions taken to identify, contain, and impound all product from the lot. The contractor shall also contact the OM, and supplier if applicable. The contractor shall initiate and submit an ALERT to the Government-Industry Data Exchange Program (GIDEP) within 60 days of knowledge of the counterfeit part or material. The contractor shall notify the appropriate parties to document the case for legal action if required (e.g., contracting officer, DOD Office of Inspector General).

10.1.9 Nonconforming Material and Parts

Electrical components which fail during production or acceptance testing shall be assessed to determine if the supplier of the part was an authorized supplier for the manufacturer. Analysis of these failures shall include assessment of part authenticity (potential of being counterfeit or fraudulent).

10.1.10 Warranty “Counterfeit”

10.1.10.1 Seller warrants the goods delivered pursuant to this Contract, unless specifically stated otherwise in this Contract, shall (i) be new (ii) be free from defects in workmanship, materials, and design and (iii) be in accordance with all the requirements of this Contract. Seller further warrants that the performance of work and services shall conform with the requirements of this Contract and to high professional standards. All warranties in this Contract shall survive inspection, test, final acceptance and payment of goods and services.

10.1.11 Counterfeit Mitigation

Seller warrants that the goods delivered pursuant to this Contract shall (i) be and only contain materials obtained directly from the OM or an authorized OM reseller or distributor; (ii) not be or contain Counterfeit Items, as defined below; and (iii) contain only authentic, unaltered OM labels and other markings. Seller shall obtain and retain all documentation required to fully trace the distribution and sale of the goods delivered hereunder back to the relevant OM, and, on request of Buyer, shall provide such authenticating documentation. Counterfeit Items include, but are not limited to, goods or separately-identifiable items or components of goods that: (i) are an illegal or unauthorized copy or substitute of an OM item; (ii) are not traceable to an OM sufficient to ensure authenticity in OM design and manufacture; (iii) do not contain proper external or internal materials or components required by the OM or are not constructed in accordance with OM design; (iv) have been re-worked, re-marked, re-labeled, repaired, refurbished, or otherwise modified from OM design but not disclosed as such or are represented as OM authentic or new; (v) have not passed successfully all OM required testing, verification, screening, and quality control processes; or (vi) an item with altered or disguised documentation, package labeling, or item marking intended to mislead a person into believing a non-OM item is genuine, or that an item is of better or different performance when it is not. Seller further warrants that it has and shall have an internal Counterfeit Item control process for goods delivered hereunder in accordance with the standards or instructions set forth in any Buyer's specifications, including but not limited to specifications, or other provisions incorporated into this Contract. Buyer shall have the right to audit, inspect, and / or approve the processes at any time before or after delivery of the goods ordered hereunder. Buyer shall have the right to require changes to the processes to conform to Buyer's defined standards, if any. Failure of the Seller to conform its processes to Buyer's defined standards may result in the termination of this Contract in accordance with the termination provisions set forth herein. Seller shall include this clause in any agreement between Seller and its lower tier sellers.

10.1.12 Seller warrants that any hardware, software and firmware goods delivered under this Contract: (i) shall not contain any viruses, malicious code, Trojan horse, worm, time bomb, selfhelp code, back door, or other software code or routine designed to: (a) damage, destroy or alter any software or hardware; (b) reveal, damage, destroy, or alter any data; (c) disable any computer program automatically; or (d) permit unauthorized access to any software or hardware; (ii) shall not contain any third party software (including software that may be considered free software or open source software) that (a) may require any software to be published, accessed or otherwise made available without the consent of Buyer, or (b) may require distribution, copying or modification of any software free of charge; and (iii) shall not infringe any patent, copyright, trademark, or other proprietary right of any third party or misappropriate any trade secret of any third party.

10.1.13 New Materials; Anti-Counterfeit Mitigation

For Subcontractors, Contract Manufacturers, and Authorized Distributors - Only new and authentic materiel are to be used in products delivered to Buyer. No counterfeit or suspect counterfeit materiel is to be contained within the delivered product. Materiel shall be purchased directly from the OMs, or through the OMs Authorized Distributor. Documentation must be available that authenticates traceability to the applicable OM. Independent Distributors (Brokers) shall not be used without written consent from Buyer.

10.1.14 Goods Warranty; Anti-Counterfeit Mitigation

10.1.14.1 Seller warrants the Goods delivered pursuant to this Contract, unless specifically stated otherwise in this Contract, shall (i) be new; (ii) be and only contain materials obtained directly from the OM or an authorized OM reseller or distributor (Note - Independent Distributors (Brokers) shall not be used by Seller without written consent from Buyer); (iii) not be or contain Counterfeit Items; (iv) contain only authentic, unaltered OM labels and other markings; (v) have documentation made available upon request that authenticates traceability to the applicable OM; and (vi) be free from defects in workmanship, materials, and design and conform to all the specifications and requirements of this Subcontract. These warranties shall survive inspection, test, final acceptance and payment of Goods and Services.

10.1.14.2 For purposes of this section, a "Counterfeit Item" is defined to include, but is not limited to, (i) an item that is an illegal or unauthorized copy or substitute of an OM item; (ii) an item that does not contain the proper external or internal materials or components required by the OM or that is not constructed in accordance with OM specification; (iii) an item or component thereof that is used, refurbished or reclaimed but the Seller represents as being a new item; (iv) an item that has not successfully passed all OM required testing, verification, screening and quality control but that Seller represents as having met or passed such requirements; (v) an item with a label or other marking intended, or reasonably likely, to mislead a reasonable person into believing a non-OM item is a genuine OM item when it is not or (vi) material that has been confirmed to be a copy, imitation or substitute that has been represented, identified or marked as genuine, and/or altered by a source…