2012_12_19_SF30_Amd_0004.pdf

AMENDMENT OF SOLICITATION/MODIFICATION OF CONTRACT

1. CONTRACT ID CODE

K

2. AMENDMENT/MODIFICATION NO.

3. EFFECTIVE DATE

December 19, 2012

4. REQUISITION/PURCHASE REQ. NO.

5. PROJECT NO. (If applicable)

6. ISSUED BY CODE

DEFENSE LOGISTICS AGENCY ENERGY

SPE600 7. ADMINISTERED BY (If other than Item 6)

CODE

8725 JOHN J. KINGMAN ROAD, SUITE 3928

FT. BELVOIR, VA 22060-6222 FAX (703) 767-2382

BUYER/SYMBOL: ROBERT HUGHES/DLA ENERGY-FEEA

PHONE (703) 767-2716 P.P. 8.2 robert.hughes@dla.mil

8. NAME AND ADDRESS OF CONTRACTOR (NO., street,city,county,State,and ZIP Code)

X

9a. AMENDMENT OF SOLICITATION NO.

SPE600-12-R-0827

9b. DATED (SEE ITEM 11) September 27, 2012

10a. MODIFICATION OF ONTRACT/ORDER NO.

10b. DATED (SEE ITEM 13)

11. THIS ITEM ONLY APPLIES TO AMENDMENTS OF SOLICITATIONS

[] The above numbered solicitation is amended as set forth in Item 14. The hour and date specified for receipt of Offers [] is extended, [ x ] is not Offers must acknowledge receipt of this amendment prior to the hour and date specified in the solicitation or as amended, by one of the following methods: (a) By completing Items 8 and 15, and returning __1__ copies of the amendment;(b) By acknowledging receipt of this amendment on each copy of the offer submitted; or(c) By separate letter or telegram which includes a reference to the solicitation and amendment numbers. FAILURE OF YOUR ACKNOWLEDGMENT TO BE RECEIVED AT THE PLACE DESIGNATED FOR THE RECEIPT OF OFFERS PRIOR TO THE HOUR AND DATE SPECIFIED MAY RESULT IN REJECTION OF YOUR OFFER. If by virtue of this amendment you desire to change an offer already submitted, such change may be made by telegram or letter, provided each telegram or letter makes reference to the solicitation and this amendment, and is received prior to the opening hour and date specified.

12. ACCOUNTING AND APPROPRIATION DATA (If required)

13. THIS ITEM APPLIES ONLY TO MODIFICATIONS OF CONTRACTS/ORDERS, IT MODIFIES THE CONTRACT/ORDER NO. AS DESCRIBED IN

ITEM 14.

A. THIS CHANGE ORDER IS ISSUED PURSUANT TO: (Specify authority) THE CHANGES SET FORTH IN ITEM 14 ARE MADE IN THE

CONTRACT ORDER NO. IN ITEM 10A. I2.05 CHANGES-FIXED PRICE (AUG 87)

B. THE ABOVE NUMBERED CONTRACT/ORDER IS MODIFIED TO REFLECT THE ADMINISTRATIVE CHANGES (such as changes in paying office, appropriation date, etc.) SET FORTH IN ITEM 14, PURSUANT TO THE AUTHORITY OF FAR 43.103(b)

C. THIS SUPPLEMENTAL AGREEMENT IS ENTERED INTO PURSUANT TO AUTHORITY OF: FAR 43.01 OTHER (Specify type of modification and authority)

E. IMPORTANT: Contractor [ ] is not, [ X ] is required to sign this document and return ____1__ copies to the issuing office.

14. DESCRIPTION OF AMENDMENT/MODIFICATION (Organized by UCF section headings, including solicitation/contract subject matter where feasible.)

See following pages.

15A. NAME AND TITLE OF SIGNER (Type or print)

16A. NAME OF CONTRACTING OFFICER

NIKKI HESSION

15B. NAME OF CONTRACTOR/OFFEROR

BY

(Signature of person authorized to sign)

15C.DATE

SIGNED

16B. UNITED STATES OF AMERICA

BY

(Signature of Contracting Officer)

16C.DATE SIGNED

NSN 7540-01-152-8070 30-105 STANDARD FORM 30 (REV. 10-83)

PREVIOUS EDITION UNUSABLE Prescribed by GSA

FAR (48 CFR) 53.243

SPE600-12-R- 0827

Amendment 0004

In order to indicate changes from solicitation SPE600-12-R-0827 as posted on September 27, 2012, and Amendments 0001-0003, additions are highlighted in YELLOW and deletions are crossed through in RED TEXT. Please note it is the responsibility of each offeror to review Amendment 0004 for all changes from the solicitation document.

The purpose of this amendment is to incorporate the following changes into subject solicitation:

1. Section G3, Description/Specification/Work Statement is hereby deleted in its entirety and replaced with the following:

G.3 Price Adjustments:

The monthly Utility Services Charge will be adjusted in accordance with Section I, 1-0002 INT- B19.40 Economic Price Adjustment – Price Index Utility Privatization (DLA Energy, 2012).

This paragraph applies to the monthly Utility Services Charge portion of CLIN 0001 only, and does not apply to any other CLIN unless the contract explicitly states otherwise. However, neither party shall request a change to the monthly Utility Services Charge portion of CLIN 0001 to become effective sooner than one year from the contract start date. This paragraph does not apply to regulated utilities submitting a proposal using Schedule B-1.

Other price adjustments resulting from changed service requirements, at the request of either party to this contract and with reasonable cause, may be negotiated, at any time, in accordance with FAR 52.243-1, Changes -Fixed-Price- Alt 1 or FAR 52.241-7 Changes in Rates or Terms and Conditions of Service for Regulated Services (collectively the “Changes” clauses), whichever is applicable. Price adjustments for noncompliance with accounting procedures shall be in accordance with Section G.4.1.

Any changes to charges, terms, or conditions as a result of negotiations shall be made part of this contract by the issuance of a bilateral contract modification. The failure of the parties to agree upon any change after a reasonable period of time shall be a dispute under the Disputes clause as defined in Section I.

2. Section K, Representations, Certifications, and other Statements of Offerors, FAR clauses 52.204-8, Annual Representations and Certifications, and 52.230-1, Cost Accounting Standards Notices and Certifications are modified as shown. All other Section K information remains in effect.

52.204-8 ANNUAL REPRESENTATIONS AND CERTIFICATIONS (AUG 2012)

(a)

(1) The North American Industry classification System (NAICS) code for this acquisition is ____________ [insert NAICS code].

(2) The small business size standard is ____________ [insert size standard].

(3) The small business size standard for a concern which submits an offer in its own name, other than on a construction or service contract, but which proposes to furnish a product which it did not itself manufacture, is 500 employees.

(b)

(1) If the clause at 52.204-7, Central Contractor Registration, is included in this solicitation, paragraph (d) of this provision applies.

(2) If the clause at 52.204-7 is not included in this solicitation, and the offeror is currently registered in CCR, and has completed the ORCA electronically, the offeror may choose to use paragraph (d) of this provision instead of completing the corresponding individual representations and certification in the solicitation. The offeror shall indicate which option applies by checking one of the following boxes:

[_] (i) Paragraph (d) applies.

[_] (ii) Paragraph (d) does not apply and the offeror has completed the individual representations and certifications in the solicitation.

(c)

(1) The following representations or certifications in ORCA are applicable to this solicitation as indicated:

(i) 52.203-2, Certificate of Independent Price Determination. This provision applies to solicitations when a firm-fixed-price contract or fixed-price contract with economic price adjustment is contemplated, unless—

(A) The acquisition is to be made under the simplified acquisition procedures in Part 13;

(B) The solicitation is a request for technical proposals under two-step sealed bidding procedures; or

(C) The solicitation is for utility services for which rates are set by law or regulation.

(ii) 52.203-11, Certification and Disclosure Regarding Payments to Influence Certain Federal Transactions. This provision applies to solicitations expected to exceed $150,000.

(iii) 52.204-3, Taxpayer Identification. This provision applies to solicitations that do not include the clause at 52.204-7, Central Contractor Registration.

(iv) 52.204-5, Women-Owned Business (Other Than Small Business). This provision applies to solicitations that—

(A) Are not set aside for small business concerns;

(B) Exceed the simplified acquisition threshold; and

(C) Are for contracts that will be performed in the United States or its outlying areas.

(v) 52.209-2, Prohibition on Contracting with Inverted Domestic Corporations— Representation. This provision applies to solicitations using funds appropriated in fiscal years 2008, 2009, 2010, or 2012.

(vi) 52.209-5; Certification Regarding Responsibility Matters. This provision applies to solicitations where the contract value is expected to exceed the simplified acquisition threshold.

(vii) 52.214-14, Place of Performance--Sealed Bidding. This provision applies to invitations for bids except those in which the place of performance is specified by the Government.

(viii) 52.215-6, Place of Performance. This provision applies to solicitations unless the place of performance is specified by the Government.

(ix) 52.219-1, Small Business Program Representations (Basic & Alternate I). This provision applies to solicitations when the contract will be performed in the United States or its outlying areas.

(A) The basic provision applies when the solicitations are issued by other than DoD, NASA, and the Coast Guard.

(B) The provision with its Alternate I applies to solicitations issued by DoD, NASA, or the Coast Guard.

(x) 52.219-2, Equal Low Bids. This provision applies to solicitations when contracting by sealed bidding and the contract will be performed in the United States or its outlying areas.

(xi) 52.222-22, Previous Contracts and Compliance Reports. This provision applies to solicitations that include the clause at 52.222-26, Equal Opportunity.

(xii) 52.222-25, Affirmative Action Compliance. This provision applies to solicitations, other than those for construction, when the solicitation includes the clause at 52.222-26, Equal Opportunity.

(xiii) 52.222-38, Compliance with Veterans' Employment Reporting Requirements. This provision applies to solicitations when it is anticipated the contract award will exceed the simplified acquisition threshold and the contract is not for acquisition of commercial items.

(xiv) 52.223-1, Biobased Product Certification. This provision applies to solicitations that require the delivery or specify the use of USDA-designated items; or include the clause at 52.223-2, Affirmative Procurement of Biobased Products Under Service and Construction Contracts.

(xv) 52.223-4, Recovered Material Certification. This provision applies to solicitations that are for, or specify the use of, EPA- designated items.

(xvi) 52.225-2, Buy American Act Certificate. This provision applies to solicitations containing the clause at 52.225-1.

(xvii) 52.225-4, Buy American Act--Free Trade Agreements--Israeli Trade Act Certificate. (Basic, Alternate I, II, and Alternate III) This provision applies to solicitations containing the clause at 52.225- 3.

(A) If the acquisition value is less than $25,000, the basic provision applies.

(B) If the acquisition value is $25,000 or more, but is less than $50,000, the provision with its Alternate I applies.

(C) If the acquisition value is $50,000 or more, but is less than $77,494, the provision with its Alternate II applies.

(D) If the acquisition value is $77,494 or more, but is less than $100,000, the provision with its Alternate III applies.

(xviii) 52.225-6, Trade Agreements Certificate. This provision applies to solicitations containing the clause at 52.225-5.

(xix) 52.225-20, Prohibition on Conducting Restricted Business Operations in Sudan-- Certification. This provision applies to all solicitations.

(xx) 52.225-25, Prohibition on Contracting with Entities Engaging in Sanctioned Activities Relating to Iran—Representation and Certification. This provision applies to all solicitations.

(xxi) 52.226-2, Historically Black College or University and Minority Institution Representation. This provision applies to—

(A) Solicitations for research, studies, supplies, or services of the type normally acquired from higher educational institutions; and

(B) For DoD, NASA, and Coast Guard acquisitions, solicitations that contain the clause at 52.219-23, Notice of Price Evaluation Adjustment for Small Disadvantaged Business Concerns.

(2) The following certifications are applicable as indicated by the Contracting Officer:

[Contracting Officer check as appropriate.]

___ (i) 52.219-22, Small Disadvantaged Business Status.

___ (A) Basic.

___ (B) Alternate I.

___ (ii) 52.222-18, Certification Regarding Knowledge of Child Labor for Listed End Products.

___ (iii) 52.222-48, Exemption from Application of the Service Contract Act to Contracts for Maintenance, Calibration, or Repair of Certain Equipment Certification.

___ (iv) 52.222-52 Exemption from Application of the Service Contract Act to Contracts for Certain Services--Certification.

___ (v) 52.223-9, with its Alternate I, Estimate of Percentage of Recovered Material Content for EPA-Designated Products (Alternate I only).

___ (vi) 52.227-6, Royalty Information.

___ (A) Basic.

___ (B) Alternate I.

___ (vii) 52.227-15, Representation of Limited Rights Data and Restricted Computer Software.

(d) The offeror has completed the annual representations and certifications electronically via the Online Representations and Certifications Application (ORCA) website accessed through https://www.acquisition.gov. After reviewing the ORCA database information, the offeror verifies by submission of the offer that the representations and certifications currently posted electronically that apply to this solicitation as indicated in paragraph (c) of this provision have been entered or updated within the last 12 months, are current, accurate, complete, and applicable to this solicitation (including the business size standard applicable to the NAICS code referenced for this solicitation), as of the date of this offer and are incorporated in this offer by reference (see FAR 4.1201); except for the changes identified below [offeror to insert changes, identifying change by clause number, title, date]. These amended representation(s) and/or certification(s) are also incorporated in this offer and are current, accurate, and complete as of the date of this offer.

FAR Clause Title Date Change

Any changes provided by the offeror are applicable to this solicitation only, and do not result in an update to the representations and certifications posted on ORCA.

(End of Provision)

52.230-1 – Cost Accounting Standards Notices and Certifications (May 2012).

Note: This notice does not apply to small businesses or foreign governments. This notice is in three parts, identified by Roman numerals I through III.

Offerors shall examine each part and provide the requested information in order to determine Cost Accounting Standards (CAS) requirements applicable to any resultant contract.

If the offeror is an educational institution, Part II does not apply unless the contemplated contract will be subject to full or modified CAS coverage pursuant to 48 CFR 9903.201-2(c)(5) or 9903.201-2(c)(6), respectively.

I. Disclosure Statement -- Cost Accounting Practices and Certification

(a) Any contract in excess of $700,000 resulting from this solicitation will be subject to the requirements of the Cost Accounting Standards Board (48 CFR Chapter 99), except for those contracts which are exempt as specified in 48 CFR 9903.201-1.

(b) Any offeror submitting a proposal which, if accepted, will result in a contract subject to the requirements of 48 CFR Chapter 99 must, as a condition of contracting, submit a Disclosure Statement as required by 48 CFR 9903.202. When required, the Disclosure Statement must be submitted as a part of the offeror’s proposal under this solicitation unless the offeror has already submitted a Disclosure Statement disclosing the practices used in connection with the pricing of this proposal. If an applicable Disclosure Statement has already been submitted, the offeror may satisfy the requirement for submission by providing the information requested in paragraph (c) of Part I of this provision.

https://www.acquisition.gov/

CAUTION: In the absence of specific regulations or agreement, a practice disclosed in a Disclosure Statement shall not, by virtue of such disclosure, be deemed to be a proper, approved, or agreed-to practice for pricing proposals or accumulating and reporting contract performance cost data.

(c) Check the appropriate box below:

□ (1) Certificate of Concurrent Submission of Disclosure Statement. The offeror hereby certifies that, as a part of the offer, copies of the Disclosure Statement have been submitted as follows:

(i) Original and one copy to the cognizant Administrative Contracting Officer (ACO) or cognizant Federal agency official authorized to act in that capacity (Federal official), as applicable; and

(ii) One copy to the cognizant Federal auditor.

(Disclosure must be on Form No. CASB DS-1 or CASB DS-2, as applicable. Forms may be obtained from the cognizant ACO or Federal official and/or from the loose-leaf version of the Federal Acquisition Regulation.)

Date of Disclosure Statement: __________________

Name and Address of Cognizant ACO or Federal Official Where Filed:

The offeror further certifies that the practices used in estimating costs in pricing this proposal are consistent with the cost accounting practices disclosed in the Disclosure Statement.

□ (2) Certificate of Previously Submitted Disclosure Statement. The offeror hereby certifies that the required Disclosure Statement was filed as follows:

Date of Disclosure Statement: __________________

Name and Address of Cognizant ACO or Federal Official Where Filed:

The offeror further certifies that the practices used in estimating costs in pricing this proposal are consistent with the cost accounting practices disclosed in the applicable Disclosure Statement.

□ (3) Certificate of Monetary Exemption. The offeror hereby certifies that the offeror, together with all divisions, subsidiaries, and affiliates under common control, did not receive net awards of negotiated prime contracts and subcontracts subject to CAS totaling $50 million or more in the cost accounting period immediately preceding the period in which this proposal was submitted. The offeror further certifies that if such status changes before an award resulting from this proposal, the offeror will advise the Contracting Officer immediately.

□ (4) Certificate of Interim Exemption. The offeror hereby certifies that

(i) the offeror first exceeded the monetary exemption for disclosure, as defined in

(3) of this subsection, in the cost accounting period immediately preceding the period in which this offer was submitted and

(ii) in accordance with 48 CFR 9903.202-1, the offeror is not yet required to submit a Disclosure Statement. The offeror further certifies that if an award resulting from this proposal has not been made within 90 days after the end of that period, the offeror will immediately submit a revised certificate to the Contracting Officer, in the form specified under subparagraph (c)(1) or (c)(2) of Part I of this provision, as appropriate, to verify submission of a completed Disclosure Statement.

Caution: Offerors currently required to disclose because they were awarded a CAS-covered prime contract or subcontract of $50 million or more in the current cost accounting period may not claim this exemption (4). Further, the exemption applies only in connection with proposals submitted before expiration of the 90-day period following the cost accounting period in which the monetary exemption was exceeded.

II. Cost Accounting Standards -- Eligibility for Modified Contract Coverage

If the offeror is eligible to use the modified provisions of 48 CFR 9903.201-2(b) and elects to do so, the offeror shall indicate by checking the box below. Checking the box below shall mean that the resultant contract is subject to the Disclosure and Consistency of Cost Accounting Practices clause in lieu of the Cost Accounting Standards clause.

□ The offeror hereby claims an exemption from the Cost Accounting Standards clause under the provisions of 48 CFR 9903.201-2(b) and certifies that the offeror is eligible for use of the Disclosure and Consistency of Cost Accounting Practices clause because during the cost accounting period immediately preceding the period in which this proposal was submitted, the offeror received less than $50 million in awards of CAS-covered prime contracts and subcontracts. The offeror further certifies that if such status changes before an award resulting from this proposal, the offeror will advise the Contracting Officer immediately.

Caution: An offeror may not claim the above eligibility for modified contract coverage if this proposal is expected to result in the award of a CAS-covered contract of $50 million or more or if, during its current cost accounting period, the offeror has been awarded a single CAS-covered prime contract or subcontract of $50 million or more.

III. Additional Cost Accounting Standards Applicable to Existing Contracts

The offeror shall indicate below whether award of the contemplated contract would, in accordance with subparagraph (a)(3) of the Cost Accounting Standards clause, require a change in established cost accounting practices affecting existing contracts and subcontracts.

□ YES □ NO

(End of Provision)

3. Section L.4.4, Subfactor 4: Operational Transition Plan is hereby deleted in its entirety and replaced with the following:

L.4.4 Subfactor 4: Operational Transition Plan The offeror shall submit an Operational Transition Plan (Plan) in accordance with applicable requirements of Section C, Description/Specifications/Work Statement. The Plan shall propose an adequate transition period and schedule for turnover of the facilities, equipment, permits, operation and maintenance, and other responsibilities to include any new construction, installation of meters required for utility billing, turnover of meter readings and billing responsibilities, on-site familiarization, and the process for evaluating existing employees for employment.

The Plan must discuss any system condition that will require the offeror to accomplish work in advance of conveyance and include such work as a transition project.

Installation- and utility-specific transition items are listed in the utility-specific attachments. In no case shall the Government accept any transition event until the Contractor demonstrates full capability or the event is otherwise completed. The Plan is subject to final acceptance by the Contracting Officer. The Plan shall include, at a minimum, the following:

1. Length of Transition Period: The offeror shall propose a timeframe in terms of months on which the offeror will assume full responsibility for the utility system(s) and for providing utility service(s) as defined in Section F, Commencement of Utility Services. The offeror will also outline its plans for onsite familiarization, the transition of system operations, and any transition construction necessary in advance of conveyance. The contract start date shall occur on the first day of a given month.

2. Connection Requirements: The Plan shall include a detailed plan and schedule for the implementation/completion of new connections as a result of system transfer, if identified in the utility-specific attachments, or any new connections as proposed by the offeror. The Plan shall include procedures for notification of any related outages.

3. New Meter Requirements: The Plan shall include a detailed plan and schedule for installing new meters, if identified in the utility-specific attachments as a transition requirement, or any new meters as may be proposed by the offeror.

4. Permits and Procedures: The Government will make initial notification to state agencies regarding the termination or transfer of environmental permits and/or other items, if needed. The Plan shall include a detailed plan and schedule for the transfer or acquisition of permits as required. It is essential that advanced planning occurs and the Contractor initiates the acquisition of permits within one week after the transition period begins.

5. Inventory and Transfer Requirements: Contractor-developed checklists will be the basis for the transfer of operations to the Contractor.

a) Inventory and Transfer of Facilities and Fixed Equipment: The Plan shall include a detailed plan, schedule, and checklist for the joint inventory of all facilities and fixed equipment, to include building structures and installed equipment.

b) Inventory and Transfer of Non-fixed Equipment, Spare Parts, and Personal Property: The Plan shall include a detailed plan, schedule, and checklist for the joint inventory of personal property transferring from the Government to the Contractor.

c) Transfer of Manuals and Records: The Plan shall include a detailed plan, schedule, and checklist for the joint inventory of all operating manuals, record drawings, plans and specifications, maintenance records, and other such information available for each utility system.

d) Joint Inventory Execution/Timeline: The joint inventory shall be completed prior to the contract start date in accordance with Section C, Operational Transition Plan. Failure to submit a timely joint inventory that results in an extension of the transition period and a delayed contract start date will not be compensated by the Government if the failure is solely attributable in any way to the acts or omissions of the Contractor.

6. Initial Meter Readings: The Plan shall include a detailed plan and schedule for joint meter readings for secondary meters in place prior to transition.

7. Proposed Status of Wastewater Treatment Facilities (if to be conveyed as part of the Solicitation): If wastewater treatment facilities are being conveyed, offerors submitting a wastewater proposal shall comply with the requirements set forth in Section JA4.1.13. Wastewater proposals must clearly state whether the offeror proposes to own and operate the Wastewater Treatment Plant (WWTP) as either a Federally Owned Treatment Works (FOTW), a Publicly Owned Treatment Works (POTW), or a privately owned treatment works. Offerors proposing to own the WWTP as a privately owned treatment works must address the factors set forth in Section JA4.1.13. Offerors are advised that in order to maintain the applicability of the Domestic Sewage Exclusion (DSE), the Government prefers to convey the WWTP to an entity that will operate it as a POTW. Section JA4.1.13 also provides for submission of alternate proposals to address this ownership issue.

8. Authorized Personnel and Points of Contact: The Plan shall clearly define all offeror personnel holding authority to sign for transfer of operations and property. This shall include the name, title, and clear definition of authority or limitations in authority for each person who will sign for acceptance of final transition. The Plan shall also provide offeror points of contact, to include names, phone numbers, and email addresses, for work to be performed under the contract.

4. Section L.6.1, General, is hereby modified as shown:

1. A completed, signed, and dated SF 33. The original document should be clearly marked under separate cover and should be provided without any punched holes.

2. All required information in accordance with FAR 52.204-99, in Section K. Offerors shall include a hard copy of their representation and certification submission in Volume III.

3. Completed electronic annual representations and certifications at http://orea.bpn.gov in conjunction with required registration in the Central Contractor Registration (CCR) database. Offerors shall include a hard copy of their ORCA submission in Volume III.

3. Completed Cost Accounting Standards (CAS) Notices and Certification (FAR 52.230-1) provided in

Section K for offerors subject to Cost Accounting Standards (CAS) or statement citing exemption from

CAS.

4. Offerors must acknowledge receipt and acceptance of all amendments to the solicitation as part of the proposal submission package.

5. Request and justification for Cost Accounting Standards Waiver and/or FAR 31 Deviation from Contract

Cost Principles pursuant to the DoD Class Deviation signed March 31, 2011, if any.

6. Completed Service Provisions (FAR 52.241-6) provided in Section I, if applicable.

7. Completed Capital Credits (FAR 52.241-13) provided in Section I, if applicable.

http://orea.bpn.gov/

5. Section L.6.2.1 Waiver of Applicability of Cost Accounting Standards and Deviations from Specific Parts of Federal Acquisition Regulation (FAR) Part 31 is hereby deleted in its entirety and replaced with the following:

L.6.2.1.1 Cost Accounting Standards (CAS) Waiver Offerors otherwise subject to CAS (See FAR Part 30 and FAR 52.230-1), who seek to have the utilities privatization CAS waiver allowed by the Cost Accounting Standards Board1 applied to any resultant contract must submit the following information in writing as part of the proposal:

1. Certification that the business segment offering will not, at the time of award, be performing on any other contract that is subject to Cost Accounting Standards;

2. Disclosure of the Offeror’s established accounting practices for allocating costs to contracts for which CAS has been waived; and

3. Certification that offeror will consistently use the disclosed practices to prepare current and future pricing.

Additionally, all the following provisions must be met for the CAS Waiver to be applied:

1. The contract type must be Firm-Fixed Price (FFP), Fixed-Price with Economic Price Adjustment (FPEPA), or Fixed-Price with Prospective Price Redetermination (FPPPR).

2. Cost or Pricing Data as defined in the FAR was not obtained during the award process.

3. Accounting practices used must be disclosed and comply with those laid out in Section G., Accounting

Procedures.

4. Contractor agrees that adjustments to contract pricing can be made by the Government if accounting practices disclosed are not used (see Clause G.4., Price Adjustment for Noncompliance with Accounting Procedure).

5. Any resulting contract includes FAR Clause 52.215-2.

6. For FPPPR contracts, statutorily unallowable costs and costs typically not allowed by cognizant State regulatory bodies (as applicable) are not used for price redetermination .

L.6.2.1.2 FAR Part 31 Deviation Offerors seeking a waiver from any otherwise applicable FAR Part 31 provisions, as permitted by the Office of the Under Secretary of Defense for Acquisition, Technology, and Logistics (OUSD-AT&L) deviation dated March 31, 20112, must provide the following information and the following criteria must be met:

1. FAR 31.205-20 Interest and Other Financial Costs.

a. A description as to why allowing costs otherwise disallowed by the cost principle will significantly reduce the costs to the Government under any resulting contract or price adjustment.

b. Interest costs must be directly related financial costs incurred to obtain loans or borrow capital from third-party financial institutions and are reasonable.

2. FAR 31.205-41 Taxes

a. For Federal Income Tax directly related to a Contribution in Aid of Construction (CIAC) Tax, an offer should be constructed in a manner to ensure no such tax liability is incurred. However, if, prior to award, a CIAC liability is identified, the offer shall notify the Contracting Officer and provide a written description as to why the liability exists, the amount of the liability, and why an offer cannot be structured to eliminate the tax.

1 A copy of the UP CAS Waiver can be found at http://www.acq.osd.mil/dpap/policy/policyvault/USA001350-11- DPAP.pdf, and scroll down to Attachment B.

2 A copy of the Class Deviation can be found at http://www.acq.osd.mil/dpap/policy/policyvault/USA001350-11- DPAP.pdf, and scroll down to Attachment A.

http://www.acq.osd.mil/dpap/policy/policyvault/USA001350-11-DPAP.pdf http://www.acq.osd.mil/dpap/policy/policyvault/USA001350-11-DPAP.pdf http://www.acq.osd.mil/dpap/policy/policyvault/USA001350-11-DPAP.pdf http://www.acq.osd.mil/dpap/policy/policyvault/USA001350-11-DPAP.pdf

b. The allowable portion of any CIAC obligation would be limited to the portion of the actual CIAC tax attributable to the difference between:

i. The fair market value determinations of the Government using a generally accepted valuation methodology, and

ii. The fair market value determination of the Internal Revenue Service in assessing the tax.

c. Please refer to Section H, Contribution in Aid of Construction (CIAC) Tax Liability, for CIAC obligations arising after contract award.

3. General Deviation from FAR Part 31

a. The following criteria must be met in order for a waiver to be granted:

i. Offeror must request a waiver from FAR Part 31, or a specific part of FAR Part 31, and provide a rationale as to why it is in the best interest of the Government to do so.

ii. The contract contemplated must be FFP, FPEPA, or FPPPR and include FAR Clause 52.215-2.

iii. The offer must be either exempt from CAS or have CAS requirements waived for the contract.

iv. The initial fixed-price, fixed-price with economic price adjustment or fixed-price with price redeterminations must:

1. Meet the limitations for any deviation granted from FAR 31.205-20, Interest and other financial costs;

2. Meet the limitations specified for any deviation granted from FAR 31.205-41 Taxes;

3. Exclude costs listed in 10 U.S.C. § 2324(e); and

4. If a regulated entity, exclude costs typically consider to be unallowable by the cognizant State regulatory body.

6. All other terms and conditions shall remain unchanged and in full force and effect.

4. If a regulated entity, exclude costs typically consider to be unallowable by the cognizant State regulatory body.