Section E - Inspection and Acceptance_WCC 043021.docx

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US Coast Guard Waterways Commerce Cutter Program
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70Z02321RPRT00300
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This solicitation requests proposals for the design and production of up to twenty-seven Waterways Commerce Cutters for the United States Coast Guard. Offerors must submit proposals by July 30, 2021 for an indefinite delivery indefinite quantity fixed price contract with economic price adjustment. The Coast Guard seeks to replace capabilities provided by existing inland buoy tenders, inland construction tenders, and river buoy tenders through these new cutters, which will perform missions in construction and maintenance of fixed aids, repositioning of river buoys, and positioning and maintenance of floating federal aids to navigation. Access to technical data is restricted and subject to international trafficking regulations. Offerors must be certified under the United States/Canada Joint Certification Program and submit questions by June 1, 2021. The solicitation is set aside for small businesses and provides for procurement of long lead time materials, deep insurance spares, training, and ancillary support.

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USCG Waterways Commerce Cutter 70Z02321RPRT00300

Part I – The Schedule Section E - Inspection and Acceptance

TABLE OF CONTENTS

E.1CLAUSES INCORPORATED BY REFERENCE
E.2CLAUSES INCORPORATED IN FULL TEXT
E.3INSPECTION AND ACCEPTANCE
E.4ACCEPTANCE AND APPROVAL OF DATA
E.5ACCEPTANCE OF THE LEAD AND FOLLOW SHIPS
E.6POST DELIVERY PERIOD (PDP)

E.1 CLAUSES INCORPORATED BY REFERENCE (FAR 52.252-2) (FEB 1998)

This contract incorporates one or more clauses by reference, with the same force and effect as if they were given in full text. Upon request, the Contracting Officer will make their full text available. Also, the full text of a clause may be accessed electronically at this address(s): https://www.acquisition.gov/browse/index/far

FEDERAL ACQUISITION REGULATION (48 CFR CHAPTER 1) CLAUSES

NUMBER
TITLE
DATE
52.246-2
INSPECTION OF SUPPLIES – FIXED PRICE

ALT 1

AUG 1996

JUL 1985

52.246-4
INSPECTION OF SERVICES – FIXED PRICE
AUG 1996
52.246-15
CERTIFICATE OF CONFORMANCE
APR 1984
52.246-16
RESPONSIBILITY OF SUPPLIES
APR 1984

E.2 CLAUSES INCORPORATED IN FULL TEXT

FAR 52.246-17 – WARRANTY OF SUPPLIES OF A NONCOMPLEX NATURE (JUN 2003)

(a) Definitions. As used in this clause-- “Acceptance” means the act of an authorized representative of the Government by which the Government assumes for itself, or as an agent of another, ownership of existing supplies, or approves specific services as partial or complete performance of the contract.

“Supplies” means the end items furnished by the Contractor and related services required under the contract. The word does not include “data.”

(b) Contractor’s obligations.

(1) Notwithstanding inspection and acceptance by the Government of supplies furnished under this contract, or any condition of this contract concerning the conclusiveness thereof, the Contractor warrants that for the time periods stated in Section C, Statement of Work Section C.12.

(i) All supplies furnished under this contract will be free from defects in design, material or workmanship and will conform with all requirements of this contract; and

(ii) The preservation, packaging, packing, and marking, and the preparation for, and method of, shipment of such supplies will conform with the requirements of this contract.

(2) When return, correction, or replacement is required, transportation charges and responsibility for the supplies while in transit shall be borne by the Contractor. However, the Contractor’s liability for the transportation charges shall not exceed an amount equal to the cost of transportation by the usual commercial method of shipment between the place of delivery specified in this contract and the Contractor’s plant, and return.

(3) Any supplies or parts thereof, corrected or furnished in replacement under this clause, shall also be subject to the terms of this clause to the same extent as supplies initially delivered. The warranty, with respect to supplies or parts thereof, shall be equal in duration to that in paragraph (b)(1) of this clause and shall run from the date of delivery of the corrected or replaced supplies.

(4) All implied warranties of merchantability and “fitness for a particular purpose” are excluded from any obligation contained in this contract.

(c) Remedies available to the Government.

(1) The Contracting Officer shall give written notice to the Contractor of any breach of warranties in paragraph (b)(1) of this clause within 90 days after discovery of the defect.

(2) Within a reasonable time after the notice, the Contracting Officer may either --

(i) Require, by written notice, the prompt correction or replacement of any supplies or parts thereof (including preservation, packaging, packing, and marking) that do not conform with the requirements of this contract within the meaning of paragraph (b)(1) of this clause; or

(ii) Retain such supplies and reduce the contract price by an amount equitable under the circumstances.

(3)(i) If the contract provides for inspection of supplies by sampling procedures, conformance of supplies or components subject to warranty action shall be determined by the applicable sampling procedures in the contract. The Contracting Officer --

(A) May, for sampling purposes, group any supplies delivered under this contract;

(B) Shall require the size of the sample to be that required by sampling procedures specified in the contract for the quantity of supplies on which warranty action is proposed;

(C) May project warranty sampling results over supplies in the same shipment or other supplies contained in other shipments even though all of such supplies are not present at the point of reinspection; provided, that the supplies remaining are reasonably representative of the quantity on which warranty action is proposed; and

(D) Need not use the same lot size as on original inspection or reconstitute the original inspection lots.

(ii) Within a reasonable time after notice of any breach of the warranties specified in paragraph (b)(1) of this clause, the Contracting Officer may exercise one or more of the following options:

(A) Require an equitable adjustment in the contract price for any group of supplies.

(B) Screen the supplies grouped for warranty action under this clause at the Contractor’s expense and return all nonconforming supplies to the Contractor for correction or replacement.

(C) Require the Contractor to screen the supplies at locations designated by the Government within the contiguous United States and to correct or replace all nonconforming supplies.

(D) Return the supplies grouped for warranty action under this clause to the Contractor (irrespective of the f.o.b. point or the point of acceptance) for screening and correction or replacement.

(4)(i) The Contracting Officer may, by contract or otherwise, correct or replace the nonconforming supplies with similar supplies from another source and charge to the Contractor the cost occasioned to the Government thereby if the Contractor --

(A) Fails to make redelivery of the corrected or replaced supplies within the time established for their return; or

(B) Fails either to accept return of the nonconforming supplies or fails to make progress after their return to correct or replace them so as to endanger performance of the delivery schedule, and in either of these circumstances does not cure such failure within a period of 10 days (or such longer period as the Contracting Officer may authorize in writing) after receipt of notice from the Contracting Officer specifying such failure.

(ii) Instead of correction or replacement by the Government, the Contracting Officer may require an equitable adjustment of the contract price. In addition, if the Contractor fails to furnish timely disposition instructions, the Contracting Officer may dispose of the nonconforming supplies for the Contractor’s account in a reasonable manner. The Government is entitled to reimbursement from the Contractor, or from the proceeds of such disposal, for the reasonable expenses of the care and disposition of the nonconforming supplies, as well as for excess costs incurred or to be incurred.

(5) The rights and remedies of the Government provided in this clause are in addition to and do not limit any rights afforded to the Government by any other clause of this contract.

(End of Clause)

FAR 52.246-18—WARRANTY OF SUPPLIES OF A COMPLEX NATURE (MAY 2001)

(a) Definitions. As used in this clause-- “Acceptance” means the act of an authorized representative of the Government by which the Government assumes for itself, or as an agent of another, ownership of existing and identified supplies, or approves specific services rendered, as partial or complete performance of the contract.

“Supplies” means the end items furnished by the Contractor and related services required under this contract. The word does not include “data.”

(b) Contractor’s obligations.

(1) The Contractor warrants that for the time periods stated in Section C, Statement of Work, Section C.12, Warranty, all supplies furnished under this contract will be free from defects in material and workmanship and will conform with all requirements of this contract; provided, however, that with respect to Government-furnished property, the Contractor’s warranty shall extend only to its proper installation, unless the Contractor performs some modification or other work on the property, in which case the Contractor’s warranty shall extend to the modification or other work.

(2) Any supplies or parts thereof corrected or furnished in replacement shall be subject to the conditions of this clause to the same extent as supplies initially delivered. This warranty shall be equal in duration to that set forth in paragraph (b)(1) of this clause and shall run from the date of delivery of the corrected or replaced supplies.

(3) The Contractor shall not be obligated to correct or replace supplies if the facilities, tooling, drawings, or other equipment or supplies necessary to accomplish the correction or replacement have been made unavailable to the Contractor by action of the Government. In the event that correction or replacement has been directed, the Contractor shall promptly notify the Contracting Officer, in writing, of the nonavailability.

(4) The Contractor shall also prepare and furnish to the Government data and reports applicable to any correction required (including revision and updating of all affected data called for under this contract) at no increase in the contract price.

(5) When supplies are returned to the Contractor, the Contractor shall bear the transportation costs from the place of delivery specified in the contract (irrespective of the f.o.b. point or the point of acceptance) to the Contractor’s plant and return.

(6) All implied warranties of merchantability and “fitness for a particular purpose” are excluded from any obligation contained in this contract.

(c) Remedies available to the Government.

(1) In the event of a breach of the Contractor’s warranty in paragraph (b)(1) of this clause, the Government may, at no increase in contract price --

(i) Require the Contractor, at the place of delivery specified in the contract (irrespective of the f.o.b. point or the point of acceptance) or at the Contractor’s plant, to repair or replace, at the Contractor’s election, defective or nonconforming supplies; or

(ii) Require the Contractor to furnish at the Contractor’s plant the materials or parts and installation instructions required to successfully accomplish the correction.

(2) If the Contracting Officer does not require correction or replacement of defective or nonconforming supplies or the Contractor is not obligated to correct or replace under paragraph (b)(3) of this clause, the Government shall be entitled to an equitable reduction in the contract price.

(3) The Contracting Officer shall notify the Contractor in writing of any breach of the warranty in paragraph (b) of this clause within 90 days after discovery of the defect. The Contractor shall submit to the Contracting Officer a written recommendation within 14 days as to the corrective action required to remedy the breach. After the notice of breach, but not later than 30 days after receipt of the Contractor’s recommendation for corrective action, the Contracting Officer may, in writing, direct correction or replacement as in paragraph (c)(1) of this clause, and the Contractor shall, notwithstanding any disagreement regarding the existence of a breach of warranty, comply with this direction. If it is later determined that the Contractor did not breach the warranty in paragraph (b)(1) of this clause, the contract price will be equitably adjusted.

(4) If supplies are corrected or replaced, the period for notification of a breach of the Contractor’s warranty in paragraph (c)(3) of this clause shall be 90 days from the furnishing or return by the Contractor to the Government of the corrected or replaced supplies or parts thereof, or, if correction or replacement is effected by the Contractor at a Government or other activity, for 90 days thereafter.

(5) The rights and remedies of the Government provided in this clause are in addition to and do not limit any rights afforded to the Government by any other clause of the contract.

Alternate III (Apr1984).If a fixed-price incentive contract is contemplated, add a paragraph substantially the same as the following paragraph (c)(6) to the basic clause:

(6) All costs incurred or estimated to be incurred by the Contractor in complying with this clause shall be considered when negotiating the total final price under the Incentive Price Revision clause of this contract. After establishment of the total final price, Contractor compliance with this clause shall be at no increase in the total final price. Any equitable adjustments made under paragraph (c)(2) of this clause shall be governed by the paragraph entitled “Equitable Adjustments Under Other Clauses” in the Incentive Price Revision clause of this contract.

(End of Clause) FAR 52.246-19—WARRANTY OF SYSTEMS AND EQUIPMENT UNDER PERFORMANCE SPECIFICATIONS OR DESIGN CRITERIA (MAY 2001)

(a) Definitions. As used in this clause-- “Acceptance” means the act of an authorized representative of the Government by which the Government assumes for itself, or as an agent of another, ownership of existing and identified supplies, or approves specific services rendered, as partial or complete performance of the contract.

“Defect” means any condition or characteristic in any supplies or services furnished by the Contractor under the contract that is not in compliance with the requirements of the contract.

“Supplies” means the end items furnished by the Contractor and related services required under this contract. Except when this contract includes the clause entitled Warranty of Data, supplies also means “data.”

(b) Contractor’s obligations.

(1) The Contractor’s warranties under this clause shall apply only to those defects discovered by either the Government or the Contractor within 12 (twelve) months of preliminary acceptance of each WCC.

(2) If the Contractor becomes aware at any time before acceptance by the Government (whether before or after tender to the Government) that a defect exists in any supplies or services, the Contractor shall --

(i) Promptly correct the defect; or

(ii) Promptly notify the Contracting Officer, in writing, of the defect, using the same procedures prescribed in paragraph (b)(3) of this clause.

(3) If the Contracting Officer determines that a defect exists in any of the supplies or services accepted by the Government under this contract, the Contracting Officer shall promptly notify the Contractor of the defect, in writing, within 90 days after discovery of the defect. Upon timely notification of the existence of a defect, or if the Contractor independently discovers a defect in accepted supplies or services, the Contractor shall submit to the Contracting Officer, in writing, within 14 days a recommendation for corrective actions, together with supporting information in sufficient detail for the Contracting Officer to determine what corrective action, if any, shall be undertaken.

(4) The Contractor shall promptly comply with any timely written direction from the Contracting Officer to correct or partially correct a defect, at no increase in the contract price.

(5) The Contractor shall also prepare and furnish to the Contracting Officer data and reports applicable to any correction required under this clause (including revision and updating of all other affected data called for under this contract) at no increase in the contract price.

(6) In the event of timely notice of a decision not to correct or only to partially correct, the Contractor shall submit a technical and cost proposal within 10 days to amend the contract to permit acceptance of the affected supplies or services in accordance with the revised requirement, and an equitable reduction in the contract price shall promptly be negotiated by the parties and be reflected in a supplemental agreement to this contract.

(7) Any supplies or parts thereof corrected or furnished in replacement and any services reperformed shall also be subject to the conditions of this clause to the same extent as supplies or services initially accepted. The warranty, with respect to these supplies, parts, or services, shall be equal in duration to that set forth in paragraph (b)(1) of this clause, and shall run from the date of delivery of the corrected or replaced supplies.

(8) The Contractor shall not be responsible under this clause for the correction of defects in Government-furnished property, except for defects in installation, unless the Contractor performs, or is obligated to perform, any modifications or other work on such property. In that event, the Contractor shall be responsible for correction of defects that result from the modifications or other work.

(9) If the Government returns supplies to the Contractor for correction or replacement under this clause, the Contractor shall be liable for transportation charges up to an amount equal to the cost of transportation by the usual commercial method of shipment from the place of delivery specified in this contract (irrespective of the f.o.b. point or the point of acceptance) to the Contractor’s plant and return to the place of delivery specified in this contract. The Contractor shall also bear the responsibility for the supplies while in transit.

(10) All implied warranties of merchantability and “fitness for a particular purpose” are excluded from any obligation under this contract.

(c) Remedies available to the Government.

(1) The rights and remedies of the Government provided in this clause --

(i) Shall not be affected in any way by any terms or conditions of this contract concerning the conclusiveness of inspection and acceptance; and

(ii) Are in addition to, and do not limit, any rights afforded to the Government by any other clause of this contract.

(2) Within 30 days after receipt of the Contractor’s recommendations for corrective action and adequate supporting information, the Contracting Officer, using sole discretion, shall give the Contractor written notice not to correct any defect, or to correct or partially correct any defect within a reasonable time at a site to be designated by the Contracting Officer.

(3) In no event shall the Government be responsible for any extension or delays in the scheduled deliveries or periods of performance under this contract as a result of the Contractor’s obligations to correct defects, nor shall there be any adjustment of the delivery schedule or period of performance as a result of the correction of defects unless provided by a supplemental agreement with adequate consideration.

(4) This clause shall not be construed as obligating the Government to increase the contract price.

(5) (i) The Contracting Officer shall give the Contractor a written notice specifying any failure or refusal of the Contractor to --

(A) Present a detailed recommendation for corrective action as required by paragraph (b)(3) of this clause;

(B) Correct defects as directed under paragraph (b)(4) of this clause; or

(C) Prepare and furnish data and reports as required by paragraph (b)(5) of this clause.

(ii) The notice shall specify a period of time following receipt of the notice by the Contractor in which the Contractor must remedy the failure or refusal specified in the notice.

(6) If the Contractor does not comply with the Contracting Officer’s written notice in paragraph (c)(5)(i) of this clause, the Contracting Officer may by contract or otherwise --

(i) Obtain detailed recommendations for corrective action and either --

(A) Correct the supplies or services; or

(B) Replace the supplies or services, and if the Contractor fails to furnish timely disposition instructions, the Contracting Officer may dispose of the nonconforming supplies for the Contractor’s account in a reasonable manner, in which case the Government is entitled to reimbursement from the Contractor, or from the proceeds, for the reasonable expenses of care and disposition, as well as for excess costs incurred or to be incurred;

(ii) Obtain applicable data and reports; and

(iii) Charge the Contractor for the costs incurred by the Government.

Alternate II (Apr1984). If a fixed-price incentive contract is contemplated, add a paragraph substantially the same as the following paragraph (c)(7) to the basic clause:

(7) All costs incurred or estimated to be incurred by the Contractor in complying with this clause shall be considered when negotiating the total final price under the Incentive Price Revision clause of this contract. After establishment of the total final price, Contractor compliance with this clause shall be at no increase in the total final price. Any equitable adjustments made under paragraph (b)(6) of this clause shall be governed by the paragraph entitled “Equitable Adjustments Under Other Clauses” in the Incentive Price Revision clause of this contract.

(End of Clause)

FAR 52.246-23—LIMITATION OF LIABILITY (FEB 1997)

(a) Except as provided in paragraphs (b) and (c) below, and except for remedies expressly provided elsewhere in this contract, the Contractor shall not be liable for loss of or damage to property of the Government (excluding the supplies delivered under this contract) that --

(1) Occurs after Government acceptance of the supplies delivered under this contract; and

(2) Results from any defects or deficiencies in the supplies.

(b) The limitation of liability under paragraph (a) of this clause shall not apply when a defect or deficiency in, or the Government’s acceptance of, the supplies results from willful misconduct or lack of good faith on the part of any of the Contractor’s managerial personnel. The term “Contractor’s managerial personnel,” as used in this clause, means the Contractor’s directors, officers, and any of the Contractor’s managers, superintendents, or equivalent representatives who have supervision or direction of --

(1) All or substantially all of the Contractor’s business;

(2) All or substantially all of the Contractor’s operations at any one plant, laboratory, or separate location at which the contract is being performed; or

(3) A separate and complete major industrial operation connected with the performance of this contract.

(c) If the Contractor carries insurance, or has established a reserve for self-insurance, covering liability for loss or damage suffered by the Government through purchase or use of the supplies required to be delivered under this contract, the Contractor shall be liable to the Government, to the extent of such insurance or reserve, for loss of or damage to property of the Government occurring after Government acceptance of, and resulting from any defects or deficiencies in, the supplies delivered under this contract.

(End of Clause)

FAR 52.246-24—LIMITATION OF LIABILITY -- HIGH-VALUE ITEMS (FEB 1997)

(a) Except as provided in paragraphs (b) through (e) below, and notwithstanding any other provision of this contract, the Contractor shall not be liable for loss of or damage to property of the Government (including the supplies delivered under this contract) that --

(1) Occurs after Government acceptance of the supplies delivered under this contract; and

(2) Results from any defects or deficiencies in the supplies.

(b) The limitation of liability under paragraph (a) above shall not apply when a defect or deficiency in, or the Government’s acceptance of, the supplies results from willful misconduct or lack of good faith on the part of any of the Contractor’s managerial personnel. The term “Contractor’s managerial personnel,” as used in this clause, means the Contractor’s directors, officers, and any of the Contractor’s managers, superintendents, or equivalent representatives who have supervision or direction of --

(1) All or substantially all of the Contractor’s business;

(2) All or substantially all of the Contractor’s operations at any one plant, laboratory, or separate location at which the contract is being performed; or

(3) A separate and complete major industrial operation connected with the performance of this contract.

(c) If the Contractor carries insurance, or has established a reserve for self-insurance, covering liability for loss or damage suffered by the Government through purchase or use of the supplies required to be delivered under this contract, the Contractor shall be liable to the Government, to the extent of such insurance or reserve, for loss of or damage to property of the Government occurring after Government acceptance of, and resulting from any defects or deficiencies in, the supplies delivered under this contract.

(d) (1) This clause does not diminish the Contractor’s obligations, to the extent that they arise otherwise under this contract, relating to correction, repair, replacement, or other relief for any defect or deficiency in supplies delivered under this contract.

(2) Unless this is a cost-reimbursement contract, if loss or damage occurs and correction, repair, or replacement is not feasible or desired by the Government, the Contractor shall, as determined by the Contracting Officer --

(i) Pay the Government the amount it would have cost the Contractor to make correction, repair, or replacement before the loss or damage occurred;

(ii) Provide other equitable relief.

(e) This clause shall not limit or otherwise affect the Government’s rights under clauses, if included in this contract, that cover --

(1) Warranty of technical data;

(2) Ground and flight risks or aircraft flight risks; or

(3) Government property.

Alternate I (Apr 1984). If the contract is for both high-value items and other end items, the contracting officer shall identify the high-value items by line item and insert the following preamble before paragraph (a):

(This clause shall apply only to those items identified in this contract as being subject to this clause:

1. Long Lead Time Materials (LLTM);

2. Insurance Spares;

3. System Stock; and

4. C5I equipment.

(End of Clause)

E.3 INSPECTION AND ACCEPTANCE

Inspection and acceptance shall be made at the origin or destination, as applicable, by a representative of the Contracting Officer, in accordance with the terms and conditions of this contract.

E.4ACCEPTANCE AND APPROVAL OF DATA
(a)Contract data deliverables will be reviewed by the USCG for various purposes including progress monitoring, quality checks (random and systematic) and to ensure the USCG has a reasonable expectation of the contractor meeting the contract requirements. Deliverables may be returned with comments, recommendations or with advisory notes concerning contract compliance. Unless specified otherwise, the term days shall refer to calendar days.
(b)Final approval or acceptance of documentation required herein will be by letter of approval and/or acceptance from the Contracting Officer’s Representative. Any letter of acknowledgment of receipt of material shall not be construed as a waiver of review or as an acknowledgment that the material is in conformance with the contract.
(c)For deliverables that require USCG acceptance, the USCG may provide a response to the deliverable that indicates acceptance or rejection.
(1)Accepted – The submittal is accepted and requires no further changes to the data content.
(2)Rejected – The submittal is not accepted by the USCG due to compliance issues and is subject to the resolution of issues raised by the comments. The Contractor shall respond to USCG comments in the resubmittal. The Contractor shall modify the deliverable to resolve each comment and resubmit updated deliverables within 30 days of receipt of the comments unless otherwise specified in the deliverable response letter.
(d)Deliverables subject to USCG acceptance shall not be modified by the Contractor after receipt of USCG acceptance except as follows:
(1)If the Contractor determines a change to a previously accepted deliverable is required, the Contractor shall notify the Contracting Officer and resubmit the deliverable for USCG review.
(2)Notification and resubmittal is not required if there is a scheduled subsequent submittal of the deliverable within 90 days of the modification.
(e)For deliverables that require USCG approval, the USCG will provide a response to the deliverable that indicates approval or disapproval and may provide comments.
(1)Approved - The submittal is approved and requires no further changes to the data content.
(2)Disapproved - The submittal is not approved by the USCG and is subject to the resolution of issues raised by the comments. The Contractor shall respond to USCG comments and resubmit updated deliverables within 30 days of receipt of the comments unless otherwise specified in the deliverable response letter. Any work effort that is sequentially dependent on those comments shall not proceed. The Contractor may submit a written request to the Contracting Officer’s Representative at the Project Resident Office (PRO) to continue work should the Contractor consider it necessary, and the USCG will respond either granting or denying the request within 7 days of receipt. Requests shall be coordinated through the Contracting Officer.
(f)Deliverables subject to USCG approval shall not be modified by the Contractor after receipt of USCG approval except as follows. If the Contractor determines a change to a previously approved deliverable is required, the Contractor shall notify the Contracting Officer to propose the change, resubmit the deliverable for USCG review, and shall not incorporate the change until approval has been received in writing.
(g)Approval/acceptance of Contractor design deliverables will not relieve the Contractor from meeting the contract performance and testing requirements.
(h)Contract data deliverables will be subject to review by the USCG within 45 days of receipt from the Contractor. Late deliverables may not be reviewed by the USCG within the 45 days.
(i)The review of Engineering Change Proposal (ECP) deliverables may require longer than 45 days from the submission date. Unless instructed to do otherwise, the Contractor shall make its proposals valid for 90 days. The USCG will review the ECP in accordance with the USCG change control process and provide a response upon completion of the review. Acceptance of an ECP data submittal per paragraph E.4(c) does not constitute approval for implementation of the proposed change. Changes to the contract will be accomplished via contract modifications only.
E.5ACCEPTANCE OF THE LEAD AND FOLLOW SHIPS
(a)The term “Acceptance” refers to the physical custody transfer of the ship(s) as documented by the execution of a Form DD 250, Material Inspection and Receiving Report. The Contractor shall provide the original and four duplicates to the Contracting Officer who will be USCG official accepting the lead and each follow ship. The DD 250 shall identify each CLIN and sub-CLIN with the corresponding price. Acceptance may also be referred to as “Delivery,” “Final Acceptance” or “Preliminary Acceptance.”
(b)The Contractor shall be responsible for scheduling a suitable interval between the satisfactory completion of Builder’s Trial requirements and Acceptance Trials in order to correct contractor responsible deficiencies. The interval shall be a minimum of 45 days on the lead ship and 31 days on follow ships. The scheduled interval will not be shortened or eliminated without the Contracting Officer’s approval.
(c)The Contractor shall be responsible for scheduling a minimum of 30 days between the satisfactory completion of Acceptance Trials and delivery. The scheduled interval will not be shortened or eliminated without the Contracting Officer’s approval.
(d)Timely delivery of these ships, particularly the lead ship, is of the essence and substantial compliance with the requirements is not the standard for acceptance. Strict compliance shall be interpreted to mean:
(1)The Contractor has satisfactorily carried out those tests, inspections and trials for which the Contractor is responsible, and that the Contractor has corrected Contractor responsible deficiencies discovered before, during or after completion of all tests, inspections and trials for which the Contractor is responsible.
(2)The Contractor shall not conduct Acceptance Trials until Builder’s Trials have been successfully completed and all discrepancies corrected unless otherwise agreed to in writing by the Contracting Officer. Prior to Acceptance Trials, each ship shall be ready for acceptance.
(3)Following Acceptance Trials, all starred and Priority One trial cards have been corrected to the satisfaction of the Contracting Officer.
(4)Over time, a downward trend in the total number of trial cards generated during Builders Trials has been established.
(e)Each delivered ship shall be at light ship condition plus 95% fuel, 95% lubricating oil, 100% potable water, sewage tank(s) empty and dirty oil tank(s) empty.
(f)Upon satisfactory completion of (1) Acceptance Trials and (2) correction of deficiencies and/or listing of deficiencies (open items) on the DD 250, the Contractor shall present the ship(s) to the Coast Guard for Acceptance.
(g)Following acceptance, the USCG may make the WCC(s) available to the Contractor, at the Contractor's construction facility, or require the Contractor to come to the WCC(s), for purposes such as, but not limited to,
(1)the Contractor is permitted on a not-to-interfere basis to correct defects noted at Acceptance,
(2)for the performance of any additional work required by change orders issued pursuant to the "Changes" clause of this contract prior to the acceptance and not theretofore performed, and
(3)for the correction of warranty items in accordance with the warranty clause.
(h)The USCG is under no obligation to make the ship available at the Contractor’s construction facility; however, if the USCG elects to make the WCC(s) available to the Contractor at the Contractor's construction facility for the accomplishment of the above described work following acceptance, the Contractor agrees to receive the WCC(s) and perform the work. The USCG may leave the WCC(s) at the Contractor's construction facility or return the WCC(s) thereto for the correction of defects not previously corrected and for the performance of any additional work required by change orders issued pursuant to the "Changes" clause of this contract prior to Acceptance and not theretofore performed.
(i)The Contractor shall exercise reasonable care to protect the ships at all times until delivery, and thereafter during such times as the WCC(s) is at the Contractor's construction facility during the warranty period.
E.6POST DELIVERY PERIOD (PDP)
(a)Immediately following acceptance, each WCC will commence a PDP of 30 calendar days at the Contractor's facility. During each PDP, the Contractor shall provide:
(1)Berthing space pier side for the cutter, including a lighted brow and landing platform as appropriate; electrical power, potable water, sewage disposal, compressed air, telephone and data utilities from shore connections, daily trash removal, brow and line handling services, crane services, and material handling services. This consists of disconnection and reconnection of all pier side services, before and after underway periods;
(2)At least three convenient parking spaces for ship's force personnel;
(3)Fire protection, including maintenance of ship’s firemain pressure in the event of cutter’s system failure or interruption for repair purpose, and firefighting water shore tie;
(4)Access through the yard to the cutter for authorized Government personnel, ship's force and authorized visitors; and
(5)Tug and pilot services for six movements, either to move each WCC from the pier or dock to navigable waters and upon return from navigable waters to the pier or dock of the construction facility.
(b)The Contractor may be allowed access to the ship on a not-to-interfere basis. Ship access will be authorized by the ship’s Commanding Officer and coordinated through the Contracting Officer.

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