SOW - MRS.doc

Statement of Work (SOW) for

1.5 Ton Modular Refrigeration System (MRS) Procurement

1.0 INTRODUCTION

1.0.1 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 411, which serves as the In-Service Engineering Agent (ISEA) for Air Conditioning and Refrigeration (AC&R) Systems.

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

1.0.3 Government/Contractor Relationship

1.0.3.1 The services to be delivered under this Contract are non-personal services and the parties recognize and agree that no employer-employee relationship exists or will exist under the Contract 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.

1.0.3.2 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.

1.0.3.3 Contractor personnel under this Contract shall not engage in any of the inherently Governmental functions listed at FAR Subpart 7.5 or DFARS Subpart 207.5.

1.0.4 Employee Relationship:

1.0.4.1 The services to be performed under this Contract do not require the Contractor or its personnel to exercise personal judgment and discretion on behalf of the Government. Rather the Contractor's personnel will act and exercise personal judgment and discretion on behalf of the Contractor.

1.0.4.2 Rules, regulations, directives, and requirements that are issued by the U. S. Navy and NSWCPD under its responsibility for good order, administration, and security are applicable to all personnel who enter a Government installation or who travel on Government transportation. This is not to be construed or interpreted to establish any degree of Government control that is inconsistent with a non-personal services contract.

1.0.4.3 Inapplicability of Employee Benefits: This Contract does not create an employer-employee relationship. Accordingly, entitlements and benefits applicable to such relationships do not apply.

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

1.0.4.4.1 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.

1.0.4.4.2 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:

(i) Confirm the conduct is in violation and when necessary direct the mode of further performance,

(ii) Countermand any communication regarded as a violation,

(iii) Deny that the conduct constitutes a violation and when necessary direct the mode of further performance, or

(iv) In the event the notice is inadequate to make a decision, advise the Contractor what additional information is required, and establish the date by which it should be furnished by the Contractor.

1.1 BACKGROUND

The AC&R Branch (Code 411) in the Auxiliary Machinery Systems Division (Division 41), at the Naval Surface Warfare Center, Philadelphia Division (NSWCPD), provides programmatic, technical, logistical, alteration, and life cycle management services to the United States Navy (USN). One of the current projects in Code 411, is the back-fit, ship alteration of the Ship Stores Refrigeration System (SSRS) on aircraft carriers (CVN). The project aims to deliver the Navy’s latest Modular Refrigeration System (MRS) to all available CVNs.

1.2 SCOPE OF WORK

The Contractor shall provide up to forty-nine (49) 1.5 Ton MRS and two (2) spare parts kits in support of upcoming MRS back-fits on CVN 75, 78, and 79. Each MRS will consist of a Modular Refrigeration Unit (MRU), control panel, rupture disk assembly, and flat plate condenser. Each spare parts kit will consist of those components listed in Table 2, at a minimum.

The contractor shall manufacture these MRS in accordance with the MRS Project Peculiar Document (PPD) 516-8627963.

The contractor shall deliver the MRS and spare parts kits within fifteen (15) months from when ordered via individual Delivery Orders. Section 3.1, provides further details about anticipated ships, quantities, delivery locations, and order timelines.

2.0 APPLICABLE DOCUMENTS

2.1 MRS Project Peculiar Document (PPD) NAVSEA No. 516-8627963.

These documents will be delivered as Government Furnished Information (GFI) upon solicitation.

The Contractor shall reference and utilize the latest version available when performing tasks within this SOW.

3.0. REQUIREMENTS

3.1 1.5 Ton MRS Delivery 3.1.1 The Contractor shall manufacture 1.5 Ton MRS in accordance with the latest revision of NAVSEA PPD No. 516-8627963 and deliver, upon order from Code 411, to the below ships. An estimated quantity, location, and order timeframe are included in Table 1 below. The delivery of each order shall be no more than fifteen (15) months after each order is placed. Specific delivery addresses will be provided in each order. All wide area work flow (WAWF) acceptance will be through NSWCPD.

Table 1: 1.5T MRS Delivery Details

3.1.2 The Contractor shall provide a spare parts kit with the CVN 78 and 79 orders, including the parts listed in Table 2, at a minimum.

Table 2: Spare Parts Kit Breakdown

3.1.3.

The Contractor shall furnish data prepared in accordance with the Contract Data Requirements List (CDRL), Data Items A001 through A006.

3.1.3.1. CDRL A001, Product Drawings/Models and Associated Lists. Shall be delivered to the government upon contract bid and also upon delivery of each MRS set.

3.1.3.2. CDRL A002, Engineer Change Proposal (ECP). An ECP shall be submitted whenever an engineering change to the 1.5 Ton MRS offered and detailed upon contract award, is necessary.

3.1.3.3. CDRL A003, Request for Variance (FRV). An RFV shall be submitted whenever an unplanned nonconformance, to the last submitted Product Drawing Package, is found in the MRS post-production.

3.1.3.4. CDRL A004, Request For Waiver (RFW). An RFW shall be submitted during or after manufacture to obtain authorization to deliver nonconforming items to the Government, which do not comply with PPD 516-8627963.

3.1.3.5. CDRL A005, Visual and Operational Test Report. This report shall be submitted for every third MRS manufactured, and should demonstrate that the MRS conforms with the visual and operational requirements of PPD 516-8627963. This includes capacity testing. See PPD Section 4 for further information on visual and operational testing.

3.1.3.6. CDRL A006, Airborne and Structureborne Noise Test Report. This report shall be submitted for every third MRS manufactured, and should demonstrate that the MRS complies with the noise limitations as outline in PPD 516-8627963.

3.2 Reserved

3.3 Manufacturing Phase-Out or Discontinuation of Production, Diminishing Sources, and Obsolete Materials or Components (Note: Insert in Section C of all requirements (supply or service))

3.3.1 The contractor shall notify the contracting officer immediately upon determining the unavailability of obsolete materials or components. The contractor may recommend a solution to include the impact on the contract price and delivery. The contractor shall not initiate any item redesign or incur any additional costs without the express, written authorization of the contracting officer.

3.4 Diminishing Manufacturing Sources and Material Shortages Management (DMSMS) Contract Requirements (Include if applicable - Please refer to Appendix C. Examples of DMSMS Management Contract Language for sample language to reference when drafting your Section C language.) Please consider the following SECNAV requirements:

3.4.1. DMSMS Management Plan. The Contractor shall develop and submit as part of its proposal (with an advance copy supplied to the Government at time of cost estimate submission), an Obsolescence and DMSMS Management Plan (CDRL A007) for managing the loss, or impending loss, of manufacturers or suppliers of parts and/or material required for performance of this contract.

At a minimum, the plan shall address the following:

· Means and approach for providing the Government with information regarding obsolescence and DMSMS issues

· Planned resolution of current obsolescence and DMSMS issues

· Parts list screening

· Parts list monitoring

· Receiving, processing and disseminating Government-Industry Data Exchange Program (GIDEP) DMSMS Notices

· Receiving, processing and disseminating Defense Logistics Agency (DLA) DMSMS Alerts

· Communication with and availability of information to the Government

· Means and approach for establishing obsolescence and DMSMS solutions

· Plan for conducting DMSMS predictions.

3.4.2. Assignment of Obsolescence Management Responsibility to the Contractor. The Contractor is responsible for managing obsolescence over the entire period of the contract, and notwithstanding any obsolescence issues or problems, the Contractor remains responsible for meeting all performance and other requirements of this contract. This obsolescence management responsibility includes an ongoing review and identification of actual and potential obsolescence issues, including but not limited to obsolescence of items, assemblies, sub-assemblies, piece parts, and material (hereafter referred to for purposes of this section only as “parts and/or material”). The Contractor is responsible for all costs associated with obtaining a replacement if and when any parts and/or material become obsolete. The costs for which the Contractor is responsible include, but are not limited to, the costs of investigating part availability, interchangeability and substitutability, locating part replacement, vendor interface, engineering efforts, testing requirements, internal drawing changes, etc. The Contractor shall prevent any additional costs from being incurred by the Government due to obsolescence. Any configuration changes due to obsolescence shall be approved in accordance with the Configuration Management requirements of this SOW. The Contractor shall provide the Government immediate notice of discovered obsolescence (CDRL A008), and follow-on obsolescence status briefs.

3.4.3. Requirement for Mitigation Information Pertaining to Specific Critical Materials. If a refrigerant on the Environmental Protection Agency’s (EPA) AIM Act HFC Phase out list, or a refrigerant that is a blend of at least one refrigerant on that list, is planned to be used or will be required for maintenance operations, provide the following information for each application and alternative:

1. Cost effectiveness of alternative materials or processes over the Modular Refrigeration System life cycle.

2. Technical feasibility of alternative materials.

3.5 Parts Obsolescence (Insert in all requirements where the contractor’s obsolescence program will be evaluated in the Solicitation (supply or service)

3.5.1 The contractor shall establish and implement a parts obsolescence program. In the event that manufacturing phase-out or discontinuance of production of such items is contemplated, the contractor is required to notify the contracting officer and publish the discontinuance in the Government-Industry Data Exchange Program (GIDEP), where feasible; and to provide immediate advance notice of production phase-out to NSWCPD Code 411.

NOTE TO DOCUMENT PREPARER: Hardware Contracts, if this contract includes acquiring product support data such as drawings, tech manuals, and a Bill of Material (BOM) or services to develop such items. Technical manuals shall include operating and maintenance procedures, troubleshooting, and parts lists. This contract includes services to support the obsolescence management of the equipment and it includes the procurement of spares and the sourcing of replacement parts for items that become obsolete. Please provide a draft copy of the Statement of Work to your Division 31 ILS POC and/or to the C/311 Branch Head for awareness and review.

4.0 DATA REQUIREMENTS

· CDRL A00X, Record Purchase Order and Delivery Schedule Information Report

· CDRL A001, Product Drawings/Models and Associated Lists

· CDRL A002, Engineering Change Proposal

· CDRL A003, Request for Variance

· CDRL A004, Request for Waiver

· CDRL A005, Visual and Operational Test Report

· CDRL A006, Airborne and Structureborne Noise Test Report

· CDRL A007, Diminishing Manufacturing Sources and Material Shortages (DMSMS) Management Plan

· CDRL A008, Obsolescence Alert Notice

· CDRL A009, Unauthorized Supplier Purchase Report

· CDRL A010, Counterfeit Prevention Plan

5.0 SECURITY REQUIREMENTS (Ensure this section matches Security Office’s input)

5.1 SECURITY TRAINING. The Contractor is responsible for completing all required Government mandated training to maintain security and network access to government sites and IT systems to include but not limited to: Antiterrorism Level 1 Awareness; Records Management in the DON: Everyone's Responsibility; Training and Readiness: The Active Shooter; NAVSEA Introduction to Controlled Unclassified Information; Operations Security (OPSEC); NAVSEA Counterintelligence Training; Privacy and Personally Identifiable Information (PII) Awareness Training; NAVSEA Physical Security training and Cybersecurity 101 Training. Certificates of successful completion shall be sent to the COR and as otherwise specified in the contract.

5.1.1 In accordance with the National Industrial Security Program Operating Manual (NISPOM) (37 CFR Part 117), Contractor personnel that require access to Department of Navy (DON) information systems and/or work on-site require an open investigation or favorable adjudicated Tier 3 by the Vetting Risk Operations Center (VROC). An interim clearance is granted by VROC and recorded in the Defense Information System for Security (DISS). An open or closed investigation with a favorable adjudication is required prior to issuance of a badge providing access to NSWCPD buildings. Furthermore, if the Navy Central Adjudication Facility, have made an unfavorable determination access will be denied. For Common Access Card (CAC) you must have an open investigation and/or a favorably adjudicated investigation. Interim security clearance are acceptable for a CAC. Access will be denied for anyone that has eligibility pending in DISS. Vetting through the National Crime Information Center, Sex Offender Registry, and the Terrorist screening database shall be process for a contractor that does not have a favorable adjudicated investigation.

5.1.2 Within 30 days after contract award, the contractor shall submit a list of all contractor personnel, including subcontractor employees, who will have access to DON information systems and/or work on-site at one of the NSWCPD sites to the appointed Contracting Officer Representative (COR) via email. The contractor shall provide each employee's first name, last name, contract number, the NSWCPD technical code, work location, whether or not the employee has a CAC and or Standard Access Control Badge (SACB), the systems the employee can access (i.e., NMCI, RDT&E), and the name of the Contractor's local point of contact, phone number and email address. Throughout the period of performance of the contract, the Contractor shall immediately provide any updated information to the COR when any Contractor personnel changes occur including substitutions or departures.

5.2 ON SITE WORK. Contractor personnel that require a badge to work on-site at one of the NSWCPD sites must provide an I-9 form to verify proof of citizenship. The I-9 form should be signed by the company Facility Security Officer or the company Human Resource Department. In addition to the I-9 form, Contractors shall also bring their birth certificate, current United States Passport or naturalization certificate and state issued ID to the NSWCPD Security Officer at the time of badge request to verify citizenship. Any contractor that has unfavorable information that has not been favorably adjudicated, by Department of Defense Central Adjudication Facility (DOD CAF) will not be issued a badge. Finally, contractors shall supply a copy of their OPSEC Training Certificate or other proof that the training has been completed.

5.2.1 In accordance with NSWCPD security protocol, contractor employees who hold dual citizenship will not be granted security clearance to our facilities.

5.2.4 Reserved

5.3 DD254 Requirement.

N/A

5.4 OPERATIONS SECURITY (OPSEC)

5.4.1 The Contractor shall protect critical information associated with this contract to prevent unauthorized disclosure. The NSWC Philadelphia Division's (NSWCPD) Critical Information List (CIL)/ CIIL (Critical Indicators and information list) will be provided on site, if warranted. Performance under this contract requires the contractor to adhere to OPSEC requirements, which may include the NSWCPD Contractor OPSEC Plan. When the NSWCPD Contractor OPSEC Plan is required, the contractor shall return acknowledgment of the plan within 15 days of receipt. During the period of this contract, the Contractor may be exposed to, use, or produce, NSWCPD Critical Information (CI) and/or observables and indicators which may lead to discovery of CI. NSWCPD’s CI will not be distributed to unauthorized third parties, including foreign governments, or companies under Foreign Ownership, Control, or Influence (FOCI) unless such FOCI has been appropriately mitigated through measures approved by the Defense Counterintelligence and Security Agency. Questions concerning these requirements shall be directed to the PCO.

5.4.2 CUI correspondence transmitted internally on the contractor's unclassified networks or information systems, and externally, shall be protected per NIST SP-800-171, Protecting Controlled Unclassified Information (CUI) in Non-federal Systems and Organizations.

Assembled large components/systems being transported to and from testing areas, other production or government facilities (whether or not on public roadways) shall be in an enclosed van trailer or covered flatbed trailer. Component/System outside storage, staging, and test areas shall be shielded/obscured from public view wherever physically possible.

5.4.3 NSWCPD’s CI shall not be publicized in corporate wide newsletters, trade magazines, displays, intranet pages or public facing websites. Media requests related to this project shall be directed to the PCO, and the COR who will forward the required to the NSWCPD Public Release Authority for review.

5.4.4 Any attempt by unauthorized third parties to solicit, obtain, photograph, or record, or; incidents of loss/compromise of government Classified or CI, Business Sensitive, Company Proprietary information related to this or other program must be immediately reported to the contractor's Facility Security Officer and Cognizant Security Office and/or the Naval Criminal Investigative Service, and the NSWC PD Security Division (Code 105).

5.5 RECEIPT, STORAGE, AND GENERATION OF CONTROLLED UNCLASSIFIED INFORMATION (CUI) (REQUIRED to be included for all SOWS) All Controlled Unclassified Information (CUI) associated with this contract must follow the minimum marking requirements of DoDI 5200.48, Section 3, paragraph 3.4.a, and include the acronym "CUI" in the banner and footer of the document. In accordance with DoDI 5200.48, CUI must be safeguarded to prevent Unauthorized Disclosure (UD). CUI export controlled technical information or other scientific, technical, and engineering information must be marked with an export control warning as directed in DoDI 5230.24, DoDD 5230.25, and Part 250 of Title 32, CFR. Nonfederal information systems storing and processing CUI shall be protected per NIST SP-800-171, or subsequent revisions. All transmissions to personal email accounts (AOL, Yahoo, Hotmail, Comcast, etc.) and posting on social media websites (Facebook, Instagram, Twitter, LinkedIn, etc.) are prohibited. Destroy CUI associated with this contract by any of the following approved methods: A cross-cut shredder; a certified commercial destruction vendor; a central destruction facility; incineration; chemical decomposition; pulverizing, disintegration; or methods approved for classified destruction.

5.6 Planning, Programming, Budgeting and Execution (PPBE) Data.

When contractor employees, in the performance of their duties, are exposed to Planning, Programming, Budgeting and Execution (PPBE) data, a Non-Disclosure Agreement (NDA) with all affected contactor personnel must be executed in coordination with the COR and PCO to ensure safeguarding disclosure of this data.

5.7 U-NNPI SECURITY REQUIREMENTS (Ensure this section matches Security Office’s input)

5.7.1 Security Classification Guidance is as follows of portions of the tasking on this contract when invoked in the task order statement of work:

5.7.1.1 Contractor requires access to information and equipment classified at the Confidential National Security Information (NSI) level in order to provide industrial support services within facilities that actively supports the Navy Nuclear Propulsion Program (NNPP).

5.7.1.2 All contractor personnel accessing classified information or classified material associated with the performance of work related to the resultant contract must be United States citizens, and shall have and maintain at a minimum Confidential security clearance.

5.7.1.3 The Contractor is responsible for completing all required government mandated training to maintain security and network access to government sites and IT systems, as necessary to support.

5.8 U-NNPI

5.8.1 Purpose The Contractor hereby agrees that when provided documents (specifications, drawings, etc.) that are marked as containing NOFORN sensitive information that must be controlled pursuant to Federal law, the information contained therein and generated as part of the inquiry shall be used only for the purpose stated in the contract and shall in no case be transmitted outside the company (unless such transmittals comply with the detailed guidance of the contract) or to any foreign national within the company. While in use, the documents shall be protected from unauthorized observation and shall be kept secure so as to preclude access by anyone not having a legitimate need to view them. The documents shall not be copied unless done in conformance with the detailed guidance of the contract. All the documents shall be promptly returned in their entirety, unless authorized for proper disposal or retention, following completion of the contract.

5.9.2 Specific Requirements for Protecting U-NNPI

a) Only U.S. citizens who have a need to know required to execute the contract shall be allowed access to U-NNPI.

b) When not in direct control of an authorized individual, U-NNPI must be secured in a locked container (e.g., file cabinet, desk, safe). Access to the container must be such that only authorized persons can access it, and compromise of the container would be obvious at sight. Containers should have no labels that indicate the contents. If removed from the site, U-NNPI must remain in the personal possession of the individual. At no time should U-NNPI be left unsecured (e.g., in a home or automobile, or unattended in a motel room or sent with baggage).

c) U-NNPI documents will have the word NOFORN at the top and bottom of each page. The cover sheet will have the warning statement shown below. Documents originated in the course of work that reproduce, expand or modify marked information shall be marked and controlled in the same way as the original. Media such as video tapes, disks, etc., must be marked and controlled similar to the markings on the original information.

d) U-NNPI may not be processed on networked computers with outside access unless approved by CNO (N00N). If desired, the company may submit a proposal for processing NNPI on company computer systems. Personally owned computing systems, such as personal computers, laptops, personal digital assistants, and other portable electronic devices are not authorized for processing NNPI. Exceptions require the specific approval of the cognizant DAA and CNO (N00N).

e) U-NNPI may be faxed within the continental United States and Hawaii provided there is an authorized individual waiting to receive the document and properly control it. U-NNPI may not be faxed to facilities outside the continental United States, including military installations, unless encrypted by means approved by CNO (N00N).

f) U-NNPI may be sent within the continental United States and Hawaii via first class mail in a single opaque envelope that has no markings indicating the nature of the contents.

g) Documents containing U-NNPI shall be disposed of as classified material.

h) Report any attempts to elicit U-NNPI by unauthorized persons to the appropriate security personnel.

i) Report any compromises of U-NNPI to the appropriate security personnel. This includes intentional or unintentional public release via such methods as theft, improper disposal (e.g., material not shredded, disks lost), placement on Web site, transmission via email, or violation of the information system containing U-NNPI.

j) The only approved storage for U-NNPI is CDMS NOFORN.

6.0 PLACE OF PERFORMANCE

All work is to be performed at the Contractor facility.

7.0 No travel is expected under this requirement.

8.0 GOVERNMENT FURNISHED PROPERTY

N/A

9.0 GOVERNMENT FURNISHED INFORMATION

NSWCPD Code 411 will provide the government furnished information referenced in Sections 2.0 at the time of solicitation.

9.1 GFI is for informational purposes and its use by the Contractor is mandatory.

10.0 PURCHASES

N/A

11.0 Counterfeit Material Prevention

11.1 Electronic End-Items

(Select/edit/insert language from Appendix B when procuring electronic parts or end items, components, parts, assemblies that contain electronic parts or services where the contractor will supply electronic parts or components, parts, or assemblies containing electronic parts as part of the service (DFARS 246.870 applies) Delete if not applicable) Please select the SOW language appropriate for your procurement from Appendix D (Appendix B to this document) of the COUNTERFEIT MATERIEL PROCESS GUIDEBOOK, Office of the Assistant Secretary of the Navy (Research, Development & Acquisition) Acquisition and Business Management June 2017.

11.1.1 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

SAE AS6174 contains information regarding the detection, avoidance, and mitigation of counterfeit materiel, and may be used as a reference document for meeting the above steps.

Parts and materials shall not be purchased from unauthorized sources (e.g. independent distributor or broker) unless there is no other means for procurement. In isolated cases when an unauthorized supplier is the only possible choice for procurement, an Unauthorized Supplier Purchase Report (CDRL A009) shall be provided to the Contracting Officer and program office.

The report shall contain the following information:

• Reason why an authorized supplier or original component manufacturer (OM) could not provide the part or material

• Product certificate of conformance with traceability to the OM, if available

• Verification and authenticity data results (e.g., visual inspection, marking/surface finish permanency, DPA, Scanning Acoustic Microscopy, Energy Dispersive X-Ray Spectroscopy, Fourier Transform Infrared (FTIR) Spectroscopy, Rockwell Hardness Test, etc.) SAE AS5553 contains information regarding the detection, avoidance, and mitigation of counterfeit electronic components, and may be used as a reference document for meeting the above steps.

11.1.2 Counterfeit Parts and Materials

The Contractor shall provide a Counterfeit Prevention Plan (CDRL A010) that documents procedures to minimize the risk of procuring and/or using counterfeit parts and materials. This plan shall be in accordance with DFARS 252.246-7007 Contractor Counterfeit Electronic Part Detention and Avoidance. Solicitations and subcontracts for all suppliers shall contain a requirement for procedures to minimize the risk of procuring and/or using counterfeit parts and materials.

11.1.3 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).

11.1.4 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).

11.1.5 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).

11.1.6 Warranty “Counterfeit”

11.1.6.1 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.

11.1.6.2 Unless Buyer expressly identifies the goods that are procured under this Contract as nontechnical and for Buyer’s internal use only, Seller warrants without limitation as to time 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 (collectively, an Authorized

Distributor); (ii) not be or contain Counterfeit Items or Suspect 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 Item means an unlawful or unauthorized reproduction, substitution, alteration, or the false identification of grade, serial number, lot number, date code, or performance characteristic, that has been knowingly mismarked, misidentified, or otherwise misrepresented to be an authentic, unmodified item from the OM, an Authorized Distributor, or an Aftermarket Manufacturer as defined in SAE AS5553 “Counterfeit Electronic Parts;

Avoidance, Detection, Mitigation, and Disposition” (Authorized Aftermarket Manufacturer). A Suspect Counterfeit Item means an item for which credible evidence (including, but not limited to, visual inspection or testing) provides reasonable doubt that the item is authentic. Seller warrants that it will not act as or engage an independent distributor, non-authorized distributor, non-franchised distributor, non-authorized supplier, or non-authorized reseller (collectively, Broker), to assist it in delivering goods pursuant to this Contract unless the Buyer provides prior written approval to do so. Any Seller request to procure from a Broker shall include complete and compelling support for such request and shall include all actions completed by Seller to ensure the goods thus procured are not Counterfeit Items. Seller’s supporting documentation shall include: (i) results of authentication test and analysis conducted (reference SAE AS5553 ), (ii) traceability with identification of all supply chain intermediaries wherever such traceability exists, and (iii) identification of and traceability to the source for any remarked or resurfaced material. Seller shall include the substance of this Section in any agreement between Seller and

Seller’s lower tier subcontractors, including in any agreement between Seller and Seller’s Broker, and Seller shall cause Seller’s lower tier subcontractors and Seller’s Broker to include the substance of this Section in all agreements with any of their lower tier subcontractors.

11.1.6.3 Unless Buyer expressly identifies the goods that are procured under this Contract as nontechnical and for Buyer’s internal use only, Seller, as OM, Authorized Distributor, Authorized Aftermarket Manufacturer or Broker approved by Buyer, further warrants that it has and shall maintain a Counterfeit Item risk mitigation process, internally and with its suppliers, (reference SAE AS5553), for goods delivered hereunder, and in accordance with the standards or instructions set forth in any Buyer’s specifications and other required provisions and specifications 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. Seller shall provide evidence of the Seller’s risk mitigation process to Buyer upon request. Buyer shall have the right to require changes to the processes to conform with Buyer’s defined standards, if any. Seller and Seller's lower-tier subcontractors that are allowed access to the US Government

Industry Data Exchange Program (GIDEP) shall participate in monitoring GIDEP reports and Seller shall act on GIDEP reports that affect product delivered to Buyer. Seller shall immediately notify Buyer with the pertinent facts if Seller becomes aware of or suspects that items delivered for the Contract are, or contain, suspect or confirmed counterfeit items. Failure of the Seller or any of its lower-tier subcontractors to conform its processes with Buyer’s defined standards may result in the termination of this Contract in accordance with the termination provisions set forth herein. If, during Buyer’s inspection procedures, a good delivered hereunder is discovered to be a Counterfeit Item or Suspect Counterfeit Item, Buyer shall have the right to quarantine the good for further investigation of its authenticity. Buyer’s investigation may include the participation of third parties or governmental investigative agencies as required by law or regulations by Buyer’s customer, or by Buyer, in its sole discretion. The Seller and/or the Seller’s lower-tier subcontractors shall cooperate in good faith with any investigation conducted by Buyer, including, but not limited to, cooperation by Seller’s or Seller’s lower-tier subcontractor’s staffs responsible for the maintenance and disclosure of all design, development, manufacturing, and traceability records with respect to the good in possession of Seller or Seller’s lower-tier subcontractor. Upon Buyer’s request, Seller shall provide Buyer certificates of conformance with respect to the goods delivered. Buyer shall not be required to return the good to the Seller during the investigation process or thereafter. Buyer shall not be liable for payment to Seller of the price of any Suspect Counterfeit Items under investigation. When so authorized by Buyer, Seller shall be responsible for counterfeit risk mitigation testing and providing traceability identifiers (i.e. Date Code / Lot Code, Serial number) for Broker procured parts, and identifying items delivered to Buyer that contain such parts. If Buyer determines in its sole discretion that there is credible evidence after visual inspection, testing, or other information that a good delivered under this Contract may have been misrepresented by the Seller or Seller’s lower-tier subcontractor and constitutes a Counterfeit Item or Suspect Counterfeit Item, Seller, or its lower-tier subcontractor, shall, if directed by Buyer to do so, issue a GIDEP alert and shall ensure suspect or confirmed Counterfeit Items are not delivered to Buyer. Buyer reserves its right hereunder, to issue its own GIDEP alert if, after investigation, Buyer concludes, in its sole estimation, that a good is a Counterfeit Item or Suspect Counterfeit Item. Seller shall include the substance of this Section in any agreement between Seller and Seller’s lower tier subcontractors, including in any agreement between Seller and Seller’s Broker, and Seller shall cause Seller’s lower tier subcontractors and Seller’s Broker to include the substance of this Section in all agreements with any of their lower tier subcontractors.

11.1.6.4 Seller warrants without limitation as to time that any hardware, software and firmware goods delivered under this Contract: (i) shall not contain any viruses, malicious code, Trojan horse, worm, time bomb, self-help 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.

11.2 Non-Electronic Materiels

(Include the following language where non-electronic materiel will be procured (DFARS 246.870 does not apply) Delete if not applicable) 11.2.1 Department of the Navy contractors (and their subcontractors at all tiers) who obtain critical or high risk materiel shall implement a risk mitigation process as follows:

11.2.1.1 If the materiel is currently in production or currently available, materiel shall be obtained only from authorized suppliers

11.2.1.2 If the materiel is not in production or currently available from authorized suppliers, materiel shall be obtained from suppliers that meet appropriate counterfeit avoidance criteria

11.2.1.3 Contractor shall notify the contracting officer when critical or high risk materiel cannot be obtained from an authorized supplier;

11.2.1.4 Contractor shall take mitigating actions to authenticate the materiel if purchased from an unauthorized supplier

11.2.1.5 Contractor shall report instances of counterfeit and suspect counterfeit materiel to the contracting officer and the GIDEP as soon as the contractor becomes aware of the issue.

12.0 PERSONNEL

12.1 Personnel Requirements. As a supply contract there are no personnel requirements.

13.0 NSWCPD Electronic Cost Reporting and Financial Tracking (eCRAFT) System (REMOVE IF CONTRACT DOES NOT INCLUDE COST TYPE CLINS) N/A

14.0 SPECIAL REQUIREMENTS (REMOVE IF NOT APPICABLE)

14.0 SPECIAL REQUIREMENTS (REMOVE IF NOT APPICABLE – The below language does not apply to Non-Commercial Supply/Manufacturing (Material Only) procurements.)

14.1 Quality Management System DISCUSS WITH CODE 00Q. This language is applicable to requirements containing shipboard blue collar services, but may also apply to other requirements. This section may requiring tailoring as directed by Code 00Q

REMEMBER TO INCLUDE:

· Clause FAR 52.246-11, Higher-Level Contract Quality Requirement and E-246-H020, Quality Management System when requiring higher level contract QMS like ASQ/ANSI/ISO 9001

· Reminder to invoke CDRL for Quality Assurance Workbook (QAWB)

· A QAWB is required to be submitted to NSWCPD 30 days prior to start of work

· A copy of the completed test and inspection (T&I) plan and associated OQE (contained in the QAWB) shall be submitted to the AIT Manager within 14 days of installation completion)

14.1.1 The Contractor shall adhere to the requirements of the latest NAVSEA Standard Items relevant to the requirements of the SOW.

14.1.2 The Contractor shall maintain a Quality Management System (QMS) in accordance with ASQ/ANSI/ISO 9001:2015 standards. QMS packages are required to adhere to the requirements of:

· NAVSEA Standard Item 009-04 (series) (Modernization & Non-Modernization work)

· NAVSEA Technical Specification 9090-310 (series) (Modernization work only)

14.1.3 The Contractor shall maintain Quality Management System (QMS) acceptance from NAVSEA 09MP in accordance with NAVSEA Technical Specification 9090-310 (series) (Modernization work only).

14.1.4 The Contractor shall notify in writing the following when any changes are made to the Quality Management System (QMS) that may affect work:

· NSWCPD’s Quality Department (Modernization & Non-Modernization work)

· NAVSEA 09MP (Modernization work only)

14.2 Risk Management

N/A

14.3 OCONUS Contractor Personnel Travel During COVID-19 (Remove if not applicable)

N/A

14.4 Software Development Plan (SDP) (Delete if N/A)

N/A SOW-PWS Template 14 July 2023 version