RFP - N61449-23-R-0001-DANCE PROGRAM.pdf

CONCESSIONAIRE CONTRACT

(Nonappropriated Funds)

1. No Appropriated funds of the United States shall become due or paid the contractor by reason of this contract

PAGE OF PAGE

1 32

2. CONTRACT NUMBER 3. EFFECTIVE DATE

(YYYYMMMDD)

4. REQUISITION/PURCHASE NUMBER

N61449-23-R-0001

5. ISSUED BY CODE 6. ADMINISTERED BY (If other than item 5)

FLEET & FAMILY READINESS

NAF ACQUISITIONS BRANCH N945

600 MAIN STREET BLDG 3456

HONOLULU, HI 96818

POC: CONTRACTING OFFICER, 808-474-0775

KYONG.H.TRUCHON.NAF@US.NAVY.MIL

7. NAME AND ADDRESS OF CONTRACTOR

8. FACILITY

9. This contract is entered into between a Nonappropriated Funds Instrumentality of the United States Navy (hereinafter called the NAFI) and the Concessionaire. Witnesseth, that for and in consideration of the agreements set forth and the payments to be made within this contract, it is mutually agreed between the parties:

This Concessionaire contract by and between the Commander Navy Installations Command (CNIC) Nonappropriated Fund

Instrumentality hereinafter referred to as the NAFI and ___________________________________________hereinafter referred to as the Concessionaire, is for the Concessionaire to provide dance program for a base period of one year and 4 twelve-month non-competitive option period.

The hours of operation of this concession will be the same as those of the NAFI where the Concessionaire has been assigned space or as specified in this contract.

Concessionaire shall pay the NAFI a sum equal to percent ( %) of gross. Payment of fees due to the NAFI must be made monthly by the 5th business day of each month for sales during the preceding calendar month.

10. NAME OF CONCESSIONAIRE

11. NAFI PROPERTY.

Address: Building 1859, Makai Community Center, Hickam Field, Joint Base Pearl Harbor-Hickam (JBPHH).

The Concessionaire and the NAFI manager will jointly conduct a physical inventory of NAFI or Government–owned equipment or property at the time the Concessionaire occupies the premise and at the end of the contract.

CONTRACTUAL CONTENTS. This Concessionaire contract consists of the Concessionaire Contract Terms and Conditions, pages

1 through 32 Including Nonappropriated Funds Contract Clauses.

12. DESCRIPTION OF CONCESSION

Provide dance program to authorized patrons (Active duty personnel, family members, retirees, reservists, DoD employees, and

Government employees) at Joint Base Pearl Harbor-Hickam. The concessionaire shall provide all personnel, labor, equipment, supplies, and transportation required to provide the program.

CONTINUED ON PAGE 2

13. We the undersigned, have read, understand, and agree to the terms and conditions herein.

14A. NAME AND TITLE OF SIGNER (Type or Print) 15A. NAME AND TITLE OF CONTRACTING OFFICER

14B. CONCESSIONAIRE 14C. DATE 15B. NONAPPROPRIATED FUND INSTRUMENTALITY 15C. DATE

(Signature of person authorized to sign)

(Signature of Contracting Officer)

CONCESSIONAIRE SHALL:

1. Concessionaire shall provide qualified all instructors, equipment, and supplies needed for conducting dance lesson and program. Classes will blend different disciplines of dance to include but not limited to: Ballet, Tap, Jazz, Contemporary and Hip Hop for age ranging from

3.5 years old to Adult.

2. Provide products and services of a quality satisfactory to the NAFI Contracting Officer or his or her authorized representative.

3. Hours and Days of Operation

Monday – Friday: 08:00 – 20:00

Saturday: 10:00 – 16:00

The Makai Recreation Center Manager shall provide reasonable notice to the Contractor of any required changes in the operating hours. Any Contractor desiring to change operation hours shall submit the request in writing with reasonable notice. All requests are subject to the approval of the

Makai Recreation Center

Director.

4. Be available 10 minutes before and 10 minutes after class for new and continuing parents for any questions or assistance.

5. Provide one (1) to three (3) recitals per year showcasing student’s talents and progress.

6. Any additional performances and/or competitions are at the discretion of the contractor and are not required by the NAFI. However the Makai Center Director must be informed of additional class performances and any additional costs to parents. Approval for additional recitals/performance and/or competitions must be approved by the Makai Recreation Center

Director.

7. Subject to all base regulatory inspections and background checks and must have proof of valid Liability Insurance. Contractor must ensure employees are trained in proper emergency procedures to include, CPR and First Aid Certification and must provide proof of the following documents: CPR certification and First Aid certifications for all instructors.

8. Provide the Makai Recreation Center with lesson days and times.

9. Responsible for registering and collect fees for classes provided under this contract with no obligations from the government in the event clients fail to pay the service. Contract will establish internal control procedures consistent with provisions of this contract ensuring complete and accurate accounting of all transactions using an MWR accepted method.

10. At Concessionaire's own expense, obtain all permits, give all necessary notices, pay all license fees, and comply with all municipal, prefectural, and national laws, rules, ordinances, and regulations, and any publication published by the military relating to public health or applicable to the business carried out under this agreement and assume complete and sole liability for all national, state, and local taxes applicable to the property, income and transactions of the concession.

11. Comply with all applicable laws pertaining to wages, workers' compensation, equal opportunity, Service Contract Act, and so forth, as implemented by Navy directives and required by law.

12. Comply with all memoranda, bulletins, and letters of instruction issued by or on behalf of the NAFI Contracting Officer.

13. Keep the concession area clean, orderly, attractive, secure, and in a safe and sanitary condition to the satisfaction of the NAFI Contracting Officer, but make no alterations to

Government furnished property or premises.

14. Furnish a sufficient number of trained employees for the efficient performance of this contract. Concession personnel shall meet the health and security standards prescribed by applicable regulations and shall obtain installation passes and permits and security clearances as applicable. Concession personnel shall give prompt and courteous treatment to authorized customers and shall be neatly dressed and meticulous in their personal grooming at all times.

Concessionaire shall provide employees clean uniforms, or when uniforms are not required, ensure that all clothing worn by employees is clean and in good condition at all times.

15. Remove from employment in the concession, at the request of the NAFI Contracting Officer, any servant, agent or employee of the Concessionaire if, in the opinion of the NAFI Contracting

Officer or his/her authorized representative, the conduct of such person, while in and about the premises covered by this contract, interferes with proper services or discipline.

16. Furnish, at Concessionaire's own expense, all trade fixtures, tools of the trade, and supplies required for performance of this contract.

17. Agree to adhere to the NAFI policy of customer satisfaction guaranteed and shall be responsible for refunds to customers due to customer dissatisfaction with an item or due to overcharges. All customer complaints, claims, and refunds will be resolved and made at

Concessionaire's expense. Any disagreement that cannot be resolved between Concessionaire and the customer will be referred to the Contracting Officer, whose decision will be final and not subject to the Disputes clause. If Concessionaire fails to timely process complaints or claims and make refunds, NAFI may settle customer complaints or claims and make such refunds, and charge the Concessionaire's account.

18. Obtain insurance for all non-Government property and merchandise used by the

Concessionaire in the operation of the concession against theft, fire, storm, flood, and damage, or destruction through any other force of nature in accordance with attached clause titled

"Insurance."

19. Utilities: As of the date of this offering, the Concessionaire shall not be responsible for payment of any utility costs associated with its concession operation except for any communication or data lines needed. If any change occur, the Concessionaire will be responsible for payment of any utility costs.

20. Maintain control sheets, showing all income received, according to instructions prescribed by the NAFI at time of contract award. Any failure by the Concessionaire, its servants, employees, or agents to enter all monies received on these control sheets will be cause for immediate cancellation of this contract and the basis for criminal action against the Concessionaire.

21. Accept national charge cards customarily recognized in commercial trade for customer payment of purchases at customers’ option. Concessionaire is responsible for the payment of any fees, charge backs, or other costs levied by the charge card companies.

22. The Navy Audit Service personnel or any person designated by the NAFI shall have the right to inspect or audit the accounts and methods of internal control established by the

Concessionaire and to make such inspections or audits as may be considered necessary to ensure strict compliance by the Concessionaire with all provisions of this agreement and with applicable

Navy regulations.

23. The Concessionaire shall charge for merchandise or services involved, only those prices established in the Price Schedule. Should prices need to be adjusted during the term of the contract, the Concessionaire shall notify the Contracting Officer immediately.

BASE ACCESS IF USING DBIDS:

Defense Biometric Identification Database System (DBIDS) is a Department of Defense (DOD) system developed by the Defense Manpower Data Center (DMDC) as a force protection program designed to manage personnel, property and installation access for the DOD. OpenFox is an information broker program utilized for determining an applicant’s fitness for base access.

DBIDS is the premier Physical Access Control System (PACS) utilized for credentialing all

Contractor(s) and Vendors seeking frequent base access to Navy installations.

ALL Contractor(s)/Vendor(s) must complete an initial Department of the Navy Local Population

ID Card/Base access Pass Registration SECNAV 5512/1 (APR 2014) to receive a DBIDS credential.

The Base Access Registration Form 5512/1 is required to be completed initially; and every 179 days thereafter. The completion of this form is voluntary, however refusing to meet this requirement will result in a denial for base access. DBIDS credentials shall be issued to all personnel that do not meet the criteria to be issued a CAC, and have a valid requirement to access the Navy installation. The type of credential issued and the expiration date will be determined by the Period of Performance (POP) dates reflected in the contractual agreement.

Personnel requiring base access of 1-179 days will receive a Paper Pass (Visitor Pass) only.

Personnel requiring reoccurring base access of 180 days and up to three years shall be issued a

DBIDS card.

In order to receive a DBIDS credential Contractor(s)/Vendor(s) employees will need either (A)

Passport or (B) Real ID Act-compliant state driver's license and their Social Security Card, or

Birth Certificate and a copy of their contract with the performance dates.

The Base Access Registration Form 5512/1 is used for vetting only utilizing OpenFox. The results determine the applicant’s fitness for base access. (Applicants Social Security Number must be recorded on the 5512/1). NOTE: DBIDS and OpenFox are two separate systems that serve separate purposes.

Contractor(s)/Vendor(s) employees are NOT authorized to escort/sponsor other personnel onto or around a Navy installation.

Contractor(s)/Vendor(s) employees with criminal records reflecting any of the following will be denied access to a Navy installation: (List is not all inclusive, and the installation Commanding

Officer reserves the right to deny access for any reason) (1) Sex Offender, (2) Felony conviction(s), (3) Drug trafficking, (4) Active Warrant(s) and (5) Terrorism.

Required forms for access to JBPPH must be submitted to the CNIC point of contact for processing via the secure website at https://safe.amrdec.army.mil/safe. The forms must be submitted a minimum of 5 days prior to the first visit to the installation. Required forms for access to other Navy Installations must be submitted to the installation Visitor Control Center representative.

1. The Contractor is responsible to request base passes via SECNAV 5512/1 forms allowing employees base access required to perform service. The Contractor will return base passes immediately when an employee is no longer employed by the concessionaire.

2. The Contractor will provide and maintain a list of employees affiliated with the contract to include owners, managers, and employees to include business address, phone numbers and base pass number.

3. The Contractor will ensure employees have valid driver’s license, current registration and safety, and liability of insurance.

4. The Contractor must notify the Director of the Makai Recreation Center about any base pass expirations and submit the proper paperwork no later than 14 business days prior to the expiration date on their current pass (es).

FINANCIAL REPORTING/PAYMENT:

1. Commission payments shall be paid monthly to Arts & Craft Director’s Office, no later than the 5th business day of the month following the end of the sales period.

2. Concessionaire shall submit a Point of Sale (POS) report including copy of receipt(s), to COR each month, by the 5th business day for all sales during the preceding month.

3. Concessionaire must provide name, telephone number, and e-mail address of a Point of

Contact (POC) that can answer questions about submitted financial reports.

https://safe.amrdec.army.mil/safe

4. Upon written request of the Contracting Officer, the Concessionaire will provide any documentation requested to support calculation of sales figures.

CONTRACTING OFFICER’S REPRESENTATIVE SPECIFIC DUTIES AND

RESPONSIBILITIES:

1. The Contracting Officer’s Representative (COR), responsible for monitoring performance under this contract is:

COR: Ms. Marialaine Torrente-Figuerres marialaine.torrente-figuerres.civ@us.navy.mil

Phone: (808) 448-2393

2. The COR is responsible for monitoring progress and overall surveillance of services to be performed under this Contract, and should be contacted regarding questions or problems.

3. Only the Contracting Officer has the authority to change or modify any aspect of this Contract

(requirements, specifications, scope of work, terms, conditions, etc.).

(a) In no event will any understanding, agreement modification, change order, or any other matter that changes any aspect of this Contract, between the Contractor and any other person, be binding or effective on the MWR Department.

(b) When/if in the opinion of the Contractor an effort outside the existing scope of the

Contract is requested, in the absence of a written modification signed by the Contracting Officer, the Contractor shall promptly notify the Contracting Officer in writing. (Although initial contact may be by phone, official notification shall be in writing.)

(c) The Contracting Officer will promptly respond to the Contractor in writing. The

Contracting Officer may issue a Contracting Officer’s Final Decision letter, in which case, the

Contracting Officer’s decision shall be final. Failure to agree with a Final Decision shall be a

Dispute as defined in 41 U.S.C. Sec. 601, et seq.

(d) Nothing in this clause shall excuse the Contractor from the continued diligent performance of this Contract.

OPERATION/INSPECTIONS:

1. As necessary, periodic unannounced inspections will be conducted by the Contracting Officer or any person designated by the Contracting Officer to ensure strict compliance with the provisions of this Agreement. Notwithstanding the Contracting Officer's authority to conduct inspections whenever necessary, the substance, frequency and time of day of such inspections ordinarily will be as mutually agreed upon by the Concessionaire and the Contracting Officer to ensure that uninterrupted service is provided to customers.

2. Periodic, unannounced inspections may be conducted by a representative of the base, Fire, and

Safety Inspection Department at reasonable times during the performance of this Agreement. If an inspection reveals the existence of unsafe conditions, the Concessionaire shall correct such conditions without delay and take steps to prevent their recurrence. Failure or refusal to correct unsafe conditions shall constitute a default as defined in Clause 21-Termination for Default, and the operation may also be subject to immediate closure if unsafe conditions warrant.

CONCESSIONAIRE SHALL NOT:

1. Represent or permit itself to be represented to the public as an agent or employee of the NAFI by the use of the name of the NAFI on letters, bills, signs, or by any other means. The

Concessionaire, its servants, agents, and employees, are in no sense agents of the United States, the NAFI, the Commanding Officer of the installation within which the concession exists, or of any other entity having to do with the operation of NAFI business.

2. Sell, remove or in any way alter any property which is owned by the NAFI or any other part of the Federal Government and is used in the operation of the concession.

3. Engage in or permit gambling or possession or use of any gambling device on the concession premises.

4. Sell, deal in, or otherwise possess or transfer, on the concession premises, any form of intoxicating liquors or narcotics.

5. Loan money to or borrow money from customers or others, which includes Federal

Government (including NAFI) employees and military personnel.

6. Sell merchandise or services for anything other than US currency.

7. Sell merchandise or services on credit.

8. Give or offer to any officer or employee of the NAFI, or any other part of the Federal

Government, any gift, privilege, special benefit, discount, or anything else of material or personal nature whereby the individual or employee would receive preferential treatment.

THE NAFI WILL:

1. Provide space at building 1859, Makai Community Center, Hickam Air Field. Concessionaire area includes Dance Studio, Main Stage, and restroom facility.

2. Furnish heat, water, and electricity to satisfy the normal needs of Concessionaire for lighting, heating, drinking, sanitation, and the operation of suitable support equipment therefore. NOTE:

If the Concessionaire is required to reimburse the United States Government for utilities furnished, the reimbursement will be at rates set by the Commanding Officer. Rates will be provided at time of contract award.

3. Unless otherwise specified and/or agreed, designated spaces for development and operation under this agreement are provided in “as is” condition. Any Concessionaire proposed renovation of assigned spaces must be approved by the Contracting Officer and plans for such renovation are to be submitted for approval.

4. Upon completion of any improvements or alterations, they shall be inspected and, if appropriate, approved by Base Commanding Officer’s designated Engineering and Safety

Officers.

5. Provide marketing support period of this contract will be limited to:

1) Listing the service on the Great Life Hawaii MWR website

2) Up to but not exceeding six (6) special events listings on the MWR

“Hot List” each year.

CONTRACT DURATION:

1. This agreement shall be for, one (1) year from the effective date of this contract unless sooner terminated as hereinafter provided. The contract may be extended for additional periods (when in the best interest of the Government, price and other factors considered). The extensions may not exceed four (4) options of one (1) year each. In no event, however, will the period of performance exceed five (5) years.

2. This agreement will be automatically terminated in the event the NAFI is liquidated. This agreement may be terminated by either party upon 60 days written notice. If the Concessionaire fails substantially without good cause to perform his/her agreements under this contract, the

NAFI may terminate this contract under the clause titled "Termination for Default."

3. Upon expiration of this contract or upon termination as provided herein, Concessionaire shall coordinate removal of property from the premises with the Contracting Officer. Upon failure to do so, the NAFI may cause such property to be removed at the Concessionaire's expense.

4. Any money due and payable to the NAFI from the Concessionaire as a result of this contract shall remain due and payable.

SPECIAL NOTES AND INSTRUCTIONS:

TAXES.

1. Where a state law imposes a sales tax on the sale of the item and/or service by the

Concessionaire to the authorized customer, the sales tax will be separately stated from the sales price, added to the price in the price schedule and collected from the customer. A price list will be kept conspicuously posted at each place of business of the concession. Articles stocked for sale will be individually price marked.

2. The Concessionaire assumes complete and sole liability for all federal, state, host country, and local taxes applicable to the property, income, and transactions of the Concessionaire, and where required by applicable laws and regulations, will collect and remit to the state applicable sales taxes. Sales taxes which have been collected are excluded from the computation of gross receipts in the determination of the fee payable to the NAFI. The amount of taxes so excluded will not exceed the actual sum payable to the state. Where required by state law or regulation, Concessionaire shall obtain and conspicuously display the state sales tax permit.

3. The Concessionaire warrants that the contract prices or other considerations do not include any tax or duty from which the Concessionaire is exempt under the laws of the United States, State, or host country wherein contract performance is effected. If any such tax or duty has been included in the pricing or consideration through error or otherwise, the contract pricing or consideration shall be correspondingly reduced or adjusted. If for any reason after the contract date, the Concessionaire is relieved in whole or in part from the payment or the burden of any tax or duty included in the contract pricing or other consideration, the contract pricing and/or other consideration shall be correspondingly reduced or adjusted.

PREMISES:

1. The assignment of space is revocable and is not construed as the creation of tenancy.

Concessionaire is liable for any damage to or loss of the premises and NAFI furnished property or injury to persons resulting from acts or omissions of Concessionaire, its employees, or agents whether or not covered by insurance. Sublet of any of the premises assigned or assignment to another concession is not authorized. Use of the premises and NAFI furnished property for any purpose other than those specifically set forth, or unauthorized use by any of its agents, representatives, or employees is prohibited. IMPORTANT: Concessionaire shall not make any alterations to Government owned equipment or facilities. Concessionaire will comply with the installation fire and safety regulations, and applicable health and sanitation regulations.

Concessionaire will post or display on the premises any sign furnished by the NAFI.

2. The premises will be inspected regularly by the Contracting Officer or base representatives, and the Concessionaire will be advised of the results of such inspections. The Concessionaire shall take timely and appropriate action to resolve any noted deficiencies or problems.

3. Housekeeping Maintenance. The Concessionaire shall maintain its designated spaces, buildings, grounds and premises in good and clean condition and undertake reasonable actions as necessary to maintain an acceptable image. The Concessionaire assumes the full risk and responsibility for any loss, destruction or damage occurring to Government property and to any of the Concessionaire’s property, which is caused by the negligence of the Concessionaire or its employees. Concessionaire is responsible for cleaning and maintaining its concession area and equipment, as applicable to the concession and with such frequency as necessary to comply with the installation fire and safety regulations, and applicable health and sanitation regulations.

TERMINATION:

1. Notwithstanding the clause titled "Termination for Convenience" relative to termination of this Concessionaire contract, it is mutually agreed that this contract may be terminated by either party upon 60 days written notice to the other party.

2. Upon termination or expiration of this contract, Concessionaire will promptly settle its account with the NAFI, including payment in full of all amounts due, yield up the facilities and all NAFI-furnished property, clean and leave premises in as good order and condition as when received

(damage due to acts of God or the US Government, and ordinary wear and tear excepted), surrender all installation passes, decals, and so forth, and complete satisfactory settlement of all customer complaints and claims. Termination of the Concessionaire contract does not release the Concessionaire from the obligation to satisfactorily settle customer complaints and claims.

Concessionaire shall coordinate removal of all Concessionaire-furnished trade fixtures, tools of the trade, and supplies from the premises with the Contracting Officer. On failure to remove the

Concessionaire's property, the Contracting Officer may cause Concessionaire's property to be removed and stored in a warehouse at the Concessionaire's expense. If the Concessionaire is indebted to the NAFI, the Concessionaire authorizes and empowers the Contracting Officer to take possession of the Concessionaire's property and dispose of same by public sale without notice, and out of the proceeds of sale, satisfy all costs and indebtedness to NAFI.

CLAIMS BY CONCESSIONAIRE:

1. No claim by the Concessionaire relating to this contract may be considered by the Contracting

Officer unless such claim is submitted in writing to the Contracting Officer not later than 90 days after the effective date of termination or expiration of this Concessionaire contract.

2. The Concessionaire shall indemnify, save harmless, and defend the NAFI, U.S. Navy and the

Federal Government from and against any and all claims, demands, actions, debts, liabilities, and attorney's fees arising out of, claimed on account of, or in any manner predicated upon loss or damage to the property of the injuries or to death of any and all persons whatsoever, in any manner caused or contributed to by the Concessionaire, or the Concessionaire's agents, servants, or employees while in, upon, or about the military installation wherein the concession is located, or while going to or departing from the same and to indemnify and save harmless the NAFI from and on account of damages of any kind which the NAFI may suffer as the result of the acts of any of the Contractor's agents, servants, or employees in or about said military installation.

NONWAIVER OF DEFAULTS:

Any failure by the NAFI to enforce or require strict performance of any terms or conditions of this Concessionaire contract will not constitute a waiver, and will not affect or impair such terms and conditions in any way or affect the right of the NAFI at any time to avail itself of such remedies as it may have for breach or breaches of such terms and conditions.

SPECIAL CONTRACT REQUIREMENTS

1. PRIVACY ACT NOTIFICATION (Jan 2008). The Contractor will be required to design, develop, or operate a system of records on individuals, to accomplish an agency function subject to the Privacy Act of 1974, Public Law 93-579, December 31, 1974 (5 U.S.C.552a) and applicable agency regulations. Violation of the Act may involve the imposition of criminal penalties.

1.1 PRIVACY ACT (Apr 1984)

(a) The Contractor agrees to –

(1) Comply with the Privacy Act of 1974 (the Act) and the agency rules and regulations issued under the Act in the design, development, or operation of any system of records on individuals to accomplish an agency function when the contract specifically identifies –

(i) The systems of records; and

(ii) The design, development, or operation work that the Contractor is to perform;

(2) Include the Privacy Act notification contained in this contract in every solicitation and resulting subcontract and in every subcontract awarded without a solicitation, when the work statement in the proposed subcontract requires the redesign, development, or operation of a system of records on individuals that is subject to the Act; and

(3) Include this clause, including this subparagraph (3), in all subcontracts awarded under this contract which requires the design, development, or operation of such a system of records.

(b) In the event of violations of the Act, a civil action may be brought against the agency involved when the violation concerns the design, development, or operation of a system of records on individuals to accomplish an agency function, and criminal penalties may be imposed upon the officers or employees of the agency when the violation concerns the operation of a system of records on individuals to accomplish an agency function. For purposes of the Act, when the contract is for the operation of a system of records on individuals to accomplish an agency function, the Contractor is considered to be an employee of the agency.

(c)

(1) “Operation of a system of records,” as used in this clause, means performance of any of the activities associated with maintaining the system of records, including the collection, use, and dissemination of records.

(2) “Record,” as used in this clause, means any item, collection, or grouping of information about an individual that is maintained by an agency, including, but not limited to, education, financial transactions, medical history, and criminal or employment history and that contains the person’s name, or the identifying number, symbol, or other identifying particular assigned to the individual, such as a fingerprint or voiceprint or a photograph.

(3) “System of records on individuals,” as used in this clause, means a group of any records under the control of any agency from which information is retrieved by the name of the individual or by some identifying number, symbol, or other identifying particular assigned to the individual.

2. SERVICE CONTRACT ACT (SCA). The McNamara-O’Hara Service Contract Act (SCA) covers contracts entered into by federal and District of Columbia agencies that have as their principal purpose furnishing services in the U.S. through the use of “service employees.” The definition of “service employee” includes any employee engaged in performing services on a covered contract other than a bona fide executive, administrative, or professional employee who meets the exemption criteria set forth in 29 CFR Part 541. The Act requires contractors and subcontractors performing services on prime contracts in excess of $2,500 to pay service employees in various classes no less than the wage rates and fringe benefits found prevailing in the locality, or the rates (including prospective increases) contained in a predecessor contractor's collective bargaining agreement. The Department of Labor issues wage determinations on a contract-by-contract basis in response to specific requests from contracting agencies. These determinations are incorporated into the contract. For contracts equal to or less than $2,500, contractors are required to pay the federal minimum wage as provided in Section 6(a)(1) of the

Fair Labor Standards Act. For prime contracts in excess of $100,000, contractors and subcontractors must also, under the provisions of the Contract Work Hours and Safety Standards

Act, as amended, pay laborers and mechanics, including guards and watchmen, at least one and one-half times their regular rate of pay for all hours worked over 40 in a workweek. The overtime provisions of the Fair Labor Standards Act may also apply to SCA-covered contracts.

A complete copy of the Act to include applicable laws and regulations and additional information is available from:

https://www.dol.gov/agencies/whd/government-contracts/service-contracts

In addition the SCA, the following Federal Acquisition Regulation (FAR) clauses apply:

52.222-1 Notice to the Government of Labor Disputes

52.222-21 Prohibition of Segregated Facilities

52.222-22 Previous Contracts and Compliance Reports

52.222-25 Affirmative Action Compliance

52.222-29 Notification of Visa Denial (applies if the contractor is required to perform in or on behalf of a foreign country)

52.222-40 Notification of Employee Rights Under the National Labor Relations Act

(applies over $250K)

52-222-42 Statement of Equivalent Rates for Federal Hires

52.222-46 Evaluation of Compensation for Professional Employees (applies over $750K and services are to be provided which will require meaningful numbers of professional employees)

52.222-50 Combating Trafficking in Persons

52.222-54 Employment Eligibility Verification (Exceptions – Worked performed CONUS;

less than 120 day period of performance; Commercial off the Shelf (COTS) items)

52.222-56 Certification Regarding Trafficking in Persons Compliance Plan (applies if

$550K of the contract value may be performed OCONUS; and the contract is for COTs)

52.222-56 ertification Regarding Trafficking in Persons Compliance Plan

3. DEPARTMENT OF LABOR WAGE DETERMINATION:

A Department of Labor Wage Determination applies to the service requirement within this solicitation and is available at https://sam.gov/search/?index=sca&page=1&pageSize=25&sort=-modifiedDate&sfm%5Bstatus%5D%5Bis_active%5D=true ; select the appropriate state and county where services will be conducted in support of this requirement and follow the instructions. The appropriate wage determination will be displayed with the applicable wage rates that are required to be paid to employees working on the services provided under the contract.

https://www.dol.gov/agencies/whd/government-contracts/service-contracts https://sam.gov/search/?index=sca&page=1&pageSize=25&sort=-modifiedDate&sfm%5Bstatus%5D%5Bis_active%5D=true https://sam.gov/search/?index=sca&page=1&pageSize=25&sort=-modifiedDate&sfm%5Bstatus%5D%5Bis_active%5D=true

4. MINIMUM WAGES UNDER EXECUTIVE ORDER 14026 (JAN 2022).

(a) Executive Order 14026. This contract is subject to Executive Order 14026, the regulations issued by the Secretary of Labor in 29 CFR part 23 pursuant to the Executive Order, and the following provisions.

(b) Minimum wages.

(1) Each worker (as defined in 29 CFR 23.20) engaged in the performance of this contract by the prime contractor or any subcontractor, regardless of any contractual relationship which may be alleged to exist between the contractor and worker, shall be paid not less than the applicable minimum wage under Executive Order 14026.

(2) The minimum wage required to be paid to each worker performing work on or in connection with this contract between January 30, 2022 and December 31, 2022, shall be

$15.00 per hour. The minimum wage shall be adjusted each time the Secretary of Labor’s annual determination of the applicable minimum wage under section 2(a)(ii) of Executive

Order 14026 results in a higher minimum wage. Adjustments to the Executive Order minimum wage under section 2(a)(ii) of Executive Order 14026 will be effective for all workers subject to the Executive Order beginning January 1 of the following year. If appropriate, the contracting officer, or other agency official overseeing this contract shall ensure the contractor is compensated only for the increase in labor costs resulting from the annual inflation increases in the Executive Order 14026 minimum wage beginning on

January 1, 2023. The Secretary of Labor will publish annual determinations in the

Federal Register no later than 90 days before such new wage is to take effect. The

Secretary will also publish the applicable minimum wage on https://alpha.sam.gov/content/wagedeterminations (or any successor website). The applicable published minimum wage is incorporated by reference into this contract.

(3) The contractor shall pay unconditionally to each worker all wages due free and clear and without subsequent deduction (except as otherwise provided by 29 CFR 23.230), rebate, or kickback on any account. Such payments shall be made no later than one pay period following the end of the regular pay period in which such wages were earned or accrued. A pay period under this Executive Order may not be of any duration longer than semi-monthly.

(4) The prime contractor and any upper tier subcontractor shall be responsible for the compliance by any subcontractor or lower tier subcontractor with the Executive Order minimum wage requirements. In the event of any violation of the minimum wage obligation of this clause, the contractor and any subcontractor(s) responsible therefore shall be liable for the unpaid wages.

(5) If the commensurate wage rate paid to a worker performing work on or in connection with a covered contract whose wages are calculated pursuant to a special certificate issued under 29 U.S.C. 214(c), whether hourly or piece rate, is less than the Executive

Order minimum wage, the contractor must pay the Executive Order minimum wage rate to achieve compliance with the Order. If the commensurate wage due under the certificate is greater than the Executive Order minimum wage, the contractor must pay the worker the greater commensurate wage.

(c) Withholding. The agency head shall upon its own action or upon written request of an authorized representative of the Department of Labor withhold or cause to be withheld from the prime contractor under this or any other Federal contract with the same prime contractor, so much of the accrued payments or advances as may be considered necessary to pay workers the full amount of wages required by Executive Order 14026.

(d) Contract suspension/Contract termination/Contractor debarment. In the event of a failure to pay any worker all or part of the wages due under Executive Order 14026 or 29 CFR part

23, or a failure to comply with any other term or condition of Executive Order 14026 or 29

CFR part 23, the contracting agency may on its own action or after authorization or by direction of the Department of Labor and written notification to the contractor, take action to cause suspension of any further payment, advance or guarantee of funds until such violations have ceased. Additionally, any failure to comply with the requirements of this clause may be grounds for termination of the right to proceed with the contract work. In such event, the

Government may enter into other contracts or arrangements for completion of the work, charging the contractor in default with any additional cost. A breach of the contract clause may be grounds for debarment as a contractor and subcontractor as provided in 29 CFR

23.520.

(e) Workers who receive fringe benefits. The contractor may not discharge any part of its minimum wage obligation under Executive Order 14026 by furnishing fringe benefits or, with respect to workers whose wages are governed by the Service Contract Act, the cash equivalent thereof.

(f) Relation to other laws. Nothing herein shall relieve the contractor of any other obligation under Federal, state or local law, or under contract, for the payment of a higher wage to any worker, nor shall a lower prevailing wage under any such Federal, State, or local law, or under contract, entitle a contractor to pay less than $15.00 (or the minimum wage as established each January thereafter) to any worker.

(g) Payroll records.

(1) The contractor shall make and maintain for three years records containing the information specified in paragraphs (g)(1)(i) through (vi) of this section for each worker and shall make the records available for inspection and transcription by authorized representatives of the Wage and Hour Division of the U.S. Department of Labor:

(i) Name, address, and social security number;

(ii) The worker’s occupation(s) or classification(s);

(iii) The rate or rates of wages paid;

(iv) The number of daily and weekly hours worked by each worker;

(v) Any deductions made; and

(vi) Total wages paid.

(2) The contractor shall also make available a copy of the contract, as applicable, for inspection or transcription by authorized representatives of the Wage and Hour Division.

(3) Failure to make and maintain or to make available such records for inspection and transcription shall be a violation of 29 CFR part 23 and this contract, and in the case of failure to produce such records, the contracting officer, upon direction of an authorized representative of the Department of Labor, or under its own action, shall take such action as may be necessary to cause suspension of any further payment or advance of funds until such time as the violations are discontinued.

(4) The contractor shall permit authorized representatives of the Wage and Hour Division to conduct investigations, including interviewing workers at the worksite during normal working hours.

(5) Nothing in this clause limits or otherwise modifies the contractor’s payroll and recordkeeping obligations, if any, under the Davis-Bacon Act, as amended, and its implementing regulations; the Service Contract Act, as amended, and its implementing regulations; the Fair Labor Standards Act, as amended, and its implementing regulations;

or any other applicable law.

(h) Flow-down requirement. The contractor (as defined in 29 CFR 23.20) shall insert this clause in all of its covered subcontracts and shall require its subcontractors to include this clause in any covered lower-tier subcontracts. Executive Order 14026 does not apply to subcontracts for the manufacturing or furnishing of materials, supplies, articles, or equipment, and this clause is not required to be inserted in such subcontracts. The prime contractor and any upper-tier subcontractor shall be responsible for the compliance by any subcontractor or lower tier subcontractor with this contract clause.

(i) Certification of eligibility.

(1) By entering into this contract, the contractor (and officials thereof) certifies that neither it (nor he or she) nor any person or firm who has an interest in the contractor’s firm is a person or firm ineligible to be awarded Government contracts by virtue of the sanctions imposed pursuant to section 5 of the Service Contract Act, section 3(a) of the

Davis-Bacon Act, or 29 CFR 5.12(a)(1).

(2) No part of this contract shall be subcontracted to any person or firm whose name appears on the list of persons or firms ineligible to receive Federal contracts.

(3) The penalty for making false statements is prescribed in the U.S. Criminal Code, 18

U.S.C. 1001.

(j) Tipped employees. In paying wages to a tipped employee as defined in section 3(t) of the

Fair Labor Standards Act, 29 U.S.C. 203(t), the contractor may take a partial credit against the wage payment obligation (tip credit) to the extent permitted under section 3(a) of

Executive Order 14026. In order to take such a tip credit, the employee must receive an amount of tips at least equal to the amount of the credit taken; where the tipped employee does not receive sufficient tips to equal the amount of the tip credit the contractor must increase the cash wage paid for the workweek so that the amount of cash wage paid and the tips received by the employee equal the applicable minimum wage under Executive Order

14026. To utilize this proviso:

(1) The employer must inform the tipped employee in advance of the use of the tip credit;

(2) The employer must inform the tipped employee of the amount of cash wage that will be paid and the additional amount by which the employee’s wages will be considered increased on account of the tip credit;

(3) The employees must be allowed to retain all tips (individually or through a pooling arrangement and regardless of whether the employer elects to take a credit for tips received); and

(4) The employer must be able to show by records that the tipped employee receives at least the applicable Executive Order minimum wage through the combination of direct wages and tip credit.

(k) Anti-retaliation. It shall be unlawful for any person to discharge or in any other manner discriminate against any worker because such worker has filed any complaint or instituted or caused to be instituted any proceeding under or related to Executive Order 14026 or 29 CFR part 23, or has testified or is about to testify in any such proceeding.

(l) Disputes concerning labor standards. Disputes related to the application of Executive

Order 14026 to this contract shall not be subject to the general disputes clause of the contract.

Such disputes shall be resolved in accordance with the procedures of the Department of

Labor set forth in 29 CFR part 23. Disputes within the meaning of this contract clause include disputes between the contractor (or any of its subcontractors) and the contracting agency, the U.S. Department of Labor, or the workers or their representatives.

(m) Notice. The contractor must notify all workers performing work on or in connection with a covered contract of the applicable minimum wage rate under the Executive Order. With respect to service employees on contracts covered by the Service Contract Act and laborers and mechanics on contracts covered by the Davis-Bacon Act, the contractor may meet this requirement by posting, in a prominent and accessible place at the worksite, the applicable wage determination under those statutes. With respect to workers performing work on or in connection with a covered contract whose wages are governed by the FLSA, the contractor must post a notice provided by the Department of Labor in a prominent and accessible place at the worksite so it may be readily seen by workers. Contractors that customarily post notices to workers electronically may post the notice electronically provided such electronic posting is displayed prominently on any website that is maintained by the contractor, whether external or internal, and customarily used for notices to workers about terms and conditions of employment.

5. PROTECTION OF PERSONALLY IDENTIFIABLE INFORMATION (PII). The online program offered must adhere to Department of Defense (DoD) mandates and best practices for securing and safeguarding Personally Identifiable Information (PII). PII policies are outlined in OMB-M-06-19 and DOD instruction 8500.01 and are available from:

5.1. https://georgewbush-whitehouse.archives.gov/omb/memoranda/fy2006/m06-19.pdf

(OMB-M-06-19);

https://www.esd.whs.mil/Portals/54/Documents/DD/issuances/dodi/850001_2014.pdf?ver=2

019-10-07-112048-860 (DOD instruction 8500.01)

5.2. These mandates and best practices are included in the Secretary of the Navy (SECNAV)

Instruction 5211.5F and CNIC Instruction 5211.1A. SECNAV Instruction 5211.5F is available from https://www.doncio.navy.mil/ContentView.aspx, and CNIC Instruction

5211.1 is available upon request from the KO. PII training Identifying and Safeguarding

Personally Identifiable Information (PII) shall be completed at the following website https://public.cyber.mil/dcs/.

The Online system is to include servers that must comply with DoDI 8500.01.

With these responsibilities Contractors should ensure that their employees:

At all times, Protect DON Information from inappropriate access, use, and disclosure and implement safeguards. Obtain DON management's written approval prior to taking any

DON sensitive information away from the office. The DON manager's approval must identify the business necessity for removing such information from the DON facility. PII shall be accessed on government furnished equipment (GFE) and safeguards shall in place to protect the PII.

6. Not Used

7. Prohibition on Contracting for Hardware, Software, and Services Developed or

Provided by Kaspersky Lab and Other Covered Entities.

Prohibition on Contracting for Hardware, Software, and Services Developed or Provided by

Kaspersky Lab and Other Covered Entities (Jul 2018)

(a) Definitions. As used in this clause—

Covered article means any hardware, software, or service that–

(1) Is developed or provided by a covered entity;

(2) Includes any hardware, software, or service developed or provided in whole or in part by a covered entity; or

(3) Contains components using any hardware or software developed in whole or in part by a covered entity.

Covered entity means–

(1) Kaspersky Lab;

(2) Any successor entity to Kaspersky Lab;

https://usg01.safelinks.protection.office365.us/?url=https%3A%2F%2Fno-click.mil%2F%3Fhttps%3A%2F%2Fgeorgewbush-whitehouse.archives.gov%2Fomb%2Fmemoranda%2Ffy2006%2Fm06-19.pdf&data=04%7C01%7Cholli.d.ray.naf%40us.navy.mil%7Cf6f41a0f456d42460abc08d990134541%7Ce3333e00c8774b87b6ad45e942de1750%7C0%7C0%7C637699235709736314%7CUnknown%7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0%3D%7C1000&sdata=loAUuVUBMIip2pvgmI2vJeN0l9ip%2BlEcShuQZSEEmjM%3D&reserved=0 https://www.esd.whs.mil/Portals/54/Documents/DD/issuances/dodi/850001_2014.pdf?ver=2019-10-07-112048-860 https://www.esd.whs.mil/Portals/54/Documents/DD/issuances/dodi/850001_2014.pdf?ver=2019-10-07-112048-860 https://public.cyber.mil/dcs/

(3) Any entity that controls, is controlled by, or is under common control with Kaspersky

Lab; or

(4) Any entity of which Kaspersky Lab has a majority ownership.

(b) Prohibition. Section 1634 of Division A of the National Defense Authorization Act for

Fiscal Year 2018 (Pub. L. 115-91) prohibits Government use of any covered article. The

Contractor is prohibited from—

(1) Providing any covered article that the Government will use on or after October 1, 2018; and

(2)…