W15QKN16R0015-0001.pdf

AMENDMENT OF SOLICITATION/MODIFICATION OF CONTRACT 1. Contract ID Code Page Of

2. Amendment/Modification No.

3. Effective Date

4. Requisition/Purchase Req No.

5. Project No. (If applicable)

6. Issued By Code 7. Administered By (If other than Item 6) Code

8. Name And Address Of Contractor (No., Street, City, County, State and Zip Code)

9A. Amendment Of Solicitation No.

9B. Dated (See Item 11)

10A. Modification Of Contract/Order No.

10B. Dated (See Item 13) Code Facility Code

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, is not extended.

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 ____________ copies of the amendments: (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 ONLY APPLIES TO MODIFICATIONS OF CONTRACTS/ORDERS

It Modifies The Contract/Order No. As Described In Item 14.

A. This Change Order is Issued Pursuant To: The Changes Set Forth In Item 14 Are Made In

The Contract/Order No. In Item 10A.

B. The Above Numbered Contract/Order Is Modified To Reflect The Administrative Changes (such as changes in paying office, appropriation data, 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:

D. Other (Specify type of modification and authority)

E. IMPORTANT: Contractor is not, is required to sign this document and return _______________ copies to the Issuing Office.

14. Description Of Amendment/Modification (Organized by UCF section headings, including solicitation/contract subject matter where feasible.)

Except as provided herein, all terms and conditions of the document referenced in item 9A or 10A, as heretofore changed, remains unchanged and in full force and effect.

15A. Name And Title Of Signer (Type or print)

16A. Name And Title Of Contracting Officer (Type or print)

15B. Contractor/Offeror 15C. Date Signed 16B. United States Of America 16C. Date Signed

By (Signature of person authorized to sign) (Signature of Contracting Officer)

NSN 7540-01-152-8070

PREVIOUS EDITIONS UNUSABLE

30-105-02 STANDARD FORM 30 (REV. 10-83)

Prescribed by GSA FAR (48 CFR) 53.243

SEE SCHEDULE

X

Firm Fixed Price

0001 2015NOV25

W15QKN

ARMY CONTRACTING COMMAND - NJ

PICATINNY ARSENAL, NJ 07806-5000

TRISHA FITTON

EMAIL: TRISHA.A.FITTON.CIV@MAIL.MIL

W15QKN-16-R-0015

2015NOV06

X

X

/SIGNED/

2 signed

SEE SECOND PAGE FOR DESCRIPTION

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CONTINUATION SHEET

Reference No. of Document Being Continued Page of

Name of Offeror or Contractor:

PIIN/SIIN MOD/AMD

SECTION A - SUPPLEMENTAL INFORMATION

Buyer Name: TRISHA FITTON

Buyer Office Symbol/Telephone Number: ACC-NJ-MA/(973)724-1936

Type of Contract 1: Firm Fixed Price

Kind of Contract: Supply Contracts and Priced Orders

*** End of Narrative A0000 ***

EXECUTIVE SUMMARY

1. Background: The Office of the Project Manager for Maneuver Ammunition Systems (OPM-MAS), has a requirement to obtain 120mm, M1028

Canister tank ammunition. The M1028 is a 120mm tank fired, anti-personnel canister cartridge, which will be used against advancing dismounted Infantry armed with hand held anti-tank and automatic weapons at close range. The cartridge is to be fired from the

M1A1/M1A2 Abrams Main Battle Tank with the M256 smoothbore cannon. The M1028 provides capability to effectively provide rapid lethal fire against massed assaulting Infantry armed with hand held anti-tank and automatic weapons at close range (threshold: 200-500 meters/objective: 100-700 meters). Additionally, the M1028 cartridge significantly increases the tanks lethality and enhances the tank crews and vehicles defensive capability. This additional capability gives the Abrams Tank the necessary ammunition to fully support friendly infantry assaults.

2. Contracting Strategy: The U.S. Army Contracting Command - New Jersey (ACC-NJ), on behalf of the Project Manager for Maneuver

Ammunition Systems (PM-MAS), will coordinate the issuance of two production contracts for the procurement of 120mm, M1028 Canister tank ammunition. The acquisition strategy for this program is to award two (2) five-year (5) Indefinite Delivery/Indefinite Quantity (ID/IQ) full-scale production contracts pursuant to FAR 6.302-3 "Industrial Mobilization; Engineering, Development, or Research Capability; or

Expert Services" to General Dynamics Ordnance and Tactical Systems (GDOTS) in St. Petersburg, FL and Alliant Techsystems Operations

(ATK) in Plymouth, MN. Additional NTIB restrictions apply to Specialty Metal Parts, Nitrocellulose, Propellant, Combustible Cartridge

Cases, DU and Tungsten Spheres, Load Assemble and Pack (LAP), and Explosively Loaded Components. Each contract shall include a minimum guarantee of $15,000,000.00

3. Ordering Procedures: In accordance with FAR 16.504, Indefinite-quantity contracts, the Government will use the following procedures in issuing orders:

a) If a delivery order is placed, it shall be placed by written order only. Oral orders shall not be used. Orders will be placed on a

Firm Fixed Price basis.

b) Delivery orders shall only be placed by the U.S. Army Contracting Command - New Jersey.

4. Limited Distribution Data Information Instructions:

The following documents are labeled Distribution Statement C.

- Attachment 0004, M1028 Performance Specification, PRF14000044A

- Attachment 0005, CTG 120MM M1028 TDP, 13006675

- Attachment 0008, ECP R15T2003

DISTRIBUTION STATEMENT C - Distribution authorized to U.S. Government Agencies and their contractors to protect technical data that advance current technology in an area of potentially significant military application or that relate to a specific military deficiency or a potential adversary. Other requests for this document shall be referred to the Office of the Project Manager for Maneuver

Ammunition Systems, ATTN: SFAE-AMO-MAS-LC, Picatinny Arsenal, NJ 07806-5000.

Distribution Statement C may be used on unclassified and classified technical documents.

To obtain these documents, Contractors are required to submit an AMSTA-AR 1350 Technical Data Request Questionnaire, a DD 2345 Military

Critical Technical Data Agreement, and a fully executed Non-Disclosure and Non-Use Agreement all of which are included as attachments to this Request for Proposal (RFP). The Handling/Destroying of Unclassified/Limited Distribution documents shall be handled using the same standard as "For Official Use Only (FOUO)" material, and shall be destroyed by any method that will prevent disclosure of contents or reconstruction of the document.

Technical data that is export-controlled must be marked with the following destruction notice:

DESTRUCTION NOTICE For classified documents, follow the procedures in DoD 5220.22-M, Industrial Security Manual, Section 11-19 or DoD

5200.1-R, Information Security Program Regulation, Chapter IX. For unclassified, limited documents, destroy by any method that will prevent disclosure of contents or reconstruction of the document.

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W15QKN-16-R-0015 0001

Name of Offeror or Contractor:

PIIN/SIIN MOD/AMD

All technical documents that are determined to contain export-controlled technical data shall be marked WARNING - This document contains technical data whose export is restricted by the Arms Export Control Act (Title 22, U.S.C., Sec 2751, et. seq.) or the Export

Administration Act of 1979, as amended, Title 50, U.S.C., App. 2401 et. seq. Violations of these export laws are subject to severe criminal penalties. Disseminate in accordance with provisions of DoD Directive 5230.25. When it is technically infeasible to use the entire statement, an abbreviated marking may be used, and a copy of the full statement added to the Notice To Accompany Release of

Export-Controlled Data required by DoD Directive 5230.25.

5. The Government will consider including FAR 52.232-16 into any resultant contracts provided that the contractor submits a request for

Progress Payments along with supporting rationale which supports the contractor's need for Government financing. Proposals shall not be based on the assumption that Progress Payments will be provided. The following documentation shall be submitted by the contractor:

(1) Monthly cash flow forecasts for the period, which include the additional financing.

(2) Estimated profit and loss statements and balance sheets for the same period as the cash flow forecast.

(3) The most recent, audited financial statements.

(4) A description of significant events before or after preparation of financial statements that materially affect the financial condition of the company, the operating statement, or the cash flow statement.

6. In addition to the information submitted under 52.215-6, the contractor shall provide the following information for all facilities and subcontractors facilities that will be performing AA&E work under this contract:

Contractor Name Contractor Address CAGE Code Component/Work being done

*** END OF NARRATIVE A0001 ***

The purpose of this amendment is to answer the following questions submitted by industry:

1. Question: Block 12 on the Standard Form 33 is left blank indicating that proposals should be valid for 60 calendar days. However, Section B2 states that the Government intends to award contracts in September 2016. Is it correct to make the assumption that our proposal validity should be through September 30, 2016?

Answer: In accordance with the instructions on the SF33, Block 12 shall be filled out by the offeror. Proposals shall be valid through September 30, 2016. This shall be indicated in Block 12 by the Offeror with their proposal submission.

2. Question: Statement of Work (SOW) paragraph C.3.3 states that if the Government successfully qualifies 195,000 lbs of demilled 19-perf JA2 propellant, the contractor shall purchase and use the demilled propellant on this effort. The solicitation states that this propellant will not be provided as Government Furnished Material (GFM).

a. Will the Government be responsible for screening and reblending the entire quantity of propellant?

b. Will the Government be responsible for either the cost of transportation of this propellant to a facility for screening/blending or transportation to a LAP facility?

c. What hardware, if any, will the contractor be responsible for providing to support the propellant qualification?

d. Following qualification, will the Government guarantee performance of this propellant in the M1028 projectile?

e. In the past M1028 production has been qualified to and loaded with 7-perf JA2 propellant instead of the 19-perf JA2 listed in this paragraph. If 19-perf propellant is qualified and to be used in this effort, will the configuration of the round change to M1028A1? If not, will any additional effort be required to differentiate between cartridge lots with 7-perf granular JA2 and 19-perf hex JA2 propellant?

Answer:

a.The Government will not be responsible for screening & reblending.

b.The Contractor will be responsible for the cost of transportation to contractor designated destination.

c.The contractors are not expected to support the qualification of 19 perf JA2. This is a Government effort.

d.The Government will provide the qualification report to the Contractor, but does not guarantee performance. It is the responsibility of the contractor to ensure the cartridge meets the requirements of the performance specification.

e.There will be no nomenclature change and no additional effort will be required by the contractor to differentiate between cartridges containing different types of JA2 propellant. The contractor will be responsible for assuring that its manufacturing and process control documentation reflect the final propellant configuration utilized as would normally be done.

3. Question: SOW paragraph C.3.4 states that the contractor shall be responsible for qualification of any reclaimed or new propellant.

However, C.3.3 states that the Government may qualify 19 perf JA2 demilled propellant. Please clarify who is responsible for qualifying

19 perf demilled propellant if it is available and what the expected scope of that qualification would entail.

Answer: The Government will qualify 19 perf JA2, but the contractor is responsible for any efforts necessary to ensure that the performance specification is met.

4. Question: There are five CLINs (0002, 0005, 0008, 0011, and 0014) that list 79 Ballistic FAAT rounds. Please provide details of what testing will be performed on these FAAT rounds. Will there be any anticipated overlap between testing to be performed during FAAT and

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testing to be performed for propellant qualification?

Answer: The 79 Ballistic FAAT rounds are delineated as follows: 75 Ballistic First Article, 3 Accelerated Aging, and 1 Corrosion.

5. Question: SOW paragraph C.4.2.5 states that the contractor shall perform PCAs on all qualification hardware not common to other current US Army tank ammunition production programs. If the Government directs the contractor to use 19-perf JA2 propellant, is it anticipated that a PCA will be required for associated drawings? Will the Government provide the contractor with a list of required

PCAs? If so, at what point in the proposal/contract cycle will that list be provided?

Answer: PCAs will be required for, but not limited to the following:

Projectile

Primer

Propellant

LAP at Marion

Tungsten balls

Packaging Spacer Support

However, the Contractor shall refer to SOW paragraph C.4.2.5.

6. Question: We request that the solicitation be modified to include the fill-ins required under clause I-104 Notification of Changes on page 53 of 95. The first fill-in should be sixty (60) calendar days and the second fill-in should be thirty (30) calendar days.

Answer: This clause has been updated to include 10 days for each fill in.

7. Question: If the Government exercises an order increase, we request that they extend the delivery schedule accordingly. For example, if an award is received on September 30, 2016 for 2,000 Cartridge Assemblies, and another order for an additional 1,999 Cartridge

Assemblies is received 45 days later, the delivery schedule would be adjusted such that all 3,999 Assemblies are due on the same date, which would be 45 days later than the original due date.

Answer: Concur, Section B language has been updated.

8. Question: Will the Government provide a clearer explanation of how they intend to award the first Delivery Order? Alternatively, would they agree that the following synopsis is the correct methodology that will be followed by the Government? Both contractors will be required to submit a proposal which contains certified cost or pricing data and then enter into negotiations with the Government. The result of these negotiations will be an agreement between the contractor and the Government on the Price Range unit prices for all five

Ordering Periods as well as the price for the M1028 Government Ballistic FAAT and the M1028 Contractor Dimensional FAAT. The Government will then issue a contract to both contractors. The Government will then issue a contemplation letter for the Delivery Order 0001 requirement. The contractors will submit their respective proposals for this contemplated Delivery Order. Whichever contractor has the lower price will receive 60% of the anticipated Delivery Order 0001 quantity and the other contractor will receive 40% of the quantity.

The Government will use the previously agreed to pricing charts contained in the contractors base contract in making this award determination unless for some reason the contractor provided a lower unit price in response to the contemplation letter.

Answer: The Government will not issue contemplation letters for Delivery Order 1. Section B.6 has been updated.

9. Question: Section B, paragraph B5 states that the Government reserves the right to issue sole source orders pursuant to FAR

16.505(b), or to award a single delivery order if it determines that a split award is not in its best interest in that particular competition. FAR 16.505 also states that the contracting officer must provide each awardee a fair opportunity to be considered for each order exceeding $3,500 issued under multiple delivery-order contracts or multiple task-order contracts, except as provided for in paragraph (b)(2) of this section. The Exceptions to the fair opportunity process are as follows:

(A) The agency need for the supplies or services is so urgent that providing a fair opportunity would result in unacceptable delays.

(B) Only one awardee is capable of providing the supplies or services required at the level of quality required because the supplies or services ordered are unique or highly specialized.

(C) The order must be issued on a sole-source basis in the interest of economy and efficiency because it is a logical follow-on to an order already issued under the contract, provided that all awardees were given a fair opportunity to be considered for the original order.

(D) It is necessary to place an order to satisfy a minimum guarantee.

(E) For orders exceeding the simplified acquisition threshold, a statute expressly authorizes or requires that the purchase be made from a specified source.

(F) In accordance with section 1331 of Public Law 111-240 (15 U.S.C. 644(r)), contracting officers may, at their discretion, set aside orders for any of the small business concerns identified in 19.000(a)(3). When setting aside orders for small business concerns, the specific small business program eligibility requirements identified in part 19 apply. Other than the guaranteed order requirement, we dont see how any of these exceptions would be applicable to the envisioned contracts for M1028. Does the Government agree with this contention?

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Answer: Section B, paragraph B5 was intended to clarify two situations in which the Government will not split the award. The first is pursuant to FAR 16.505(b), where there is an exception to fair opportunity. In that case, a single delivery order would be awarded. The second is if the Government decides either before soliciting proposals, or after evaluation of proposals, that it is in its best interest not to split the award. In that case, there would be a competition, but a single delivery order would be awarded.

10. Question: As the Government is aware, Progress Payments pay a maximum of 80% of costs, which still places an investment requirement on the contractor. The Government can of course lower this percentage as it sees fit. This said, we anticipate that the full inventory turn cycle of production when a ballistic FAAT is required will be upwards of 18 months. This length of time without financing would represent an extreme period of invested capital carry. In addition, there are several highly volatile and high price commodities involved in the manufacture of this round that do not allow for optimal just in time procurement strategy, bringing a much larger proportion of costs to the front of the performance schedule than the typical low angle S-expenditure curve. It is for these reasons that we strongly recommend that the Government allow the offerors to assume that progress payments will be included in any resultant contract and to submit their pricing based upon this assumption. Negotiation of the % of costs reimbursed by Progress Bills say between

50-80% will still provide the Government with negotiation leverage without placing undue financial strain on the contractors.

Answer: As indicated in Paragraph A.5. of the RFP, offerors may submit a request for Progress Payments along with supporting rationale to be considered for any resultant contract. Proposals shall not be based on the assumption that Progress Payments will be provided.

11. Question: In Section L, page 93, paragraph D, General Instructions states: To compute total prices, utilize the following quantities: 7,200 for Opt 1, 2,900 for Opt 2-5. Page 94, paragraph H, subpart (2), Material and Services states: The contractor is to utilize the estimated quantities provided in paragraph D to compute total subcontractor dollars to determine whether the subcontractor meets the threshold for submission of certified cost or pricing data when an exception doesnt apply. Is the sole purpose of the above to arrive at total price calculation? How will the Government negotiate and definitize the range pricing if the only certified cost or pricing data is for the above quantities?

Answer: As indicated in the RFP, the ranges are provided to calculate a total price and to show the relationship between the contract line item process and the total contract price. Certified cost and pricing will be required on all quantity ranges. The specific quantities referenced above are provided to assist the contractor in computing subcontractor dollars to determine whether the subcontractor meets the threshold for submission of certified cost or pricing data when an exception does not apply.

12. Question: Given the pricing volatility of tungsten powder, we request that the Government include an Economic Price Adjustment (EPA) clause for the Tungsten Payload.

Answer: Please submit information supporting why an EPA is needed for Tungsten no later than 30 November 2015. In addition, please specify the amount of the tungsten needed per cartridge and what percentage of the cartridge unit price is made up of tungsten.

Proposals shall not be based on the assumption that an EPA will be included in the contract.

13. Question: We request that the Government identify M1028 Cartridge Assemblies as the primary Ballistic Test Warmers, and also allow the option to utilize M1002/M865/M831A1 Cartridges as Ballistic Test Warmers.

Answer: M1028s shall NOT be used as Ballistic Test Warmers. It is the preference of the Government that M865s be used, but any of those listed are acceptable.

14. Question: On page 93 the RFP stipulates that To compute total prices, utilize the following quantities: 7,200 for OP1 (CLIN 0001), 2,900 for OP 2-5 (CLINS 004, 0007, 0010, 0013). Should these quantities be utilized to determine the total evaluated proposal amount per supplier when determining whether Certified Cost and Pricing Data is required?

Answer: Yes.

15. Question: Tungsten spheres are restricted to NTIB, does this also apply to tungsten raw materials? Reference Executive Summary

Paragraph 2 (page 2).

Answer: The raw tungsten is not limited to the NTIB. It can come from anywhere as long as it is formed into the spheres within the

NTIB. DFARS Clause 252.225-7007 Prohibition on Acquisition of United States Munitions List Items from Communist Chinese Military

Companies, has been added to the RFP.

16. Question: Do you intend to negotiate both the 60% and 40% quantity awards? Reference box 4, page 1; B.6 (page 5)

Answer: All unit prices will be negotiated under the base contract. Delivery Order 0001 awards will be based off of the prices negotiated for Ordering Period 1. Language has been updated in section B.

17. Question: ECPs: H15A3009 and R15T5017 are not included in the TDP. ECP R11T2004 only has pages 5, 6. Can these ECPs be provided?

Answer: All three ECPs are available and can be provided to contractors upon request.

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18. Question: TDP 3D models: Will the USG provide this or shall the contractor create? Per SOW C.8.4 (page 23)

Answer: The USG will provide the TDP 3D models.

19. Question: We request that the Government remove the Item Unique Identification and Validation (IUID) requirements of this contract per DFARS 252.211-7003. This requirement is not feasible for a tank ammunition round as accomplishing this would be an arduous task.

Also, the addition of an IUID tag might affect the performance of the round.

Answer: The IUID requirement has been removed. DFARS Clause 252.211-7003 has been removed from Section F.

20. Question: Please clarify: SOW paragraph C.2.2 states TDPL 13006675 will be provided. (page 17) Instead, TDPL 13011542 was provided.

Answer: TDPL 13006675 is the correct number. This TDPL represents the Combination of Adopted Items and is the top level cartridge plus all the packaging and marking drawings above it. The other TDPL (#13011542) is a subset of 13006675 and represents the top level cartridge and all of the components below it. Contractors should confirm that they received TDPL 13006675. All references to the TDPL have been updated to reflect TDPL 13006675.

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

*** END OF NARRATIVE A0002 ***

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SECTION B - SUPPLIES OR SERVICES AND PRICES/COSTS

B.1 Contract Mimimum/Maximum Quantity and Contract Value

The minimum quantity and contract value for all orders issued against this contract shall not be less than the minimum quantity and contract value stated in the following table. The maximum quantity and contract value for all orders issued against this contract shall not exceed the maximum quantity and contract value stated in the following table.

MINIMUM MINIMUM MAXIMUM MAXIMUM

QUANTITY AMOUNT QUANTITY AMOUNT

N/A $15,000,000.00 N/A $84,671,008.00

B2. Each Ordering Period (OP) of the contract shall be from the date of award until one year later. For example, if the base contract were awarded on September 1, 2016, OP1 would be from September 1, 2016 to August 31, 2017. OP2 would then begin on September 1, 2017.OPY3-OP5 would follow the same schedule. The Government intends to award contracts in September 2016. OP1 will begin on the date of contract award. If award occurs earlier or later than September 2016, OP1 will begin on that date of award.

B3. The prices agreed to between the Government and the Contractor shall be valid for the entire ordering period (OP), regardless of when an order is placed within that year. For example, if the ordering period is 12 months and an order is placed in the 11th month, the price in effect during that 12 month ordering period is the price that is awarded.

B4. When placing a new order, the Government reserves the right to place that order on its own, or combine it with a previous order that was made within the previous 60 days. If the Government chooses to combine orders, it will modify the previous order reflecting the higher quantity, and will be entitled to any adjustment to the unit price (if any) due to the higher range. The delivery schedule of the previous order will be modified accordingly, so that the full quantity of the new combined order will be delivered on the same date.

This holds true even if the modification occurs after the original ordering period in which the original order was placed has passed.

Furthermore, the Government can only combine orders based upon the original order date, which means any subsequent modification does not restart the 60 day period. For example, if orders are placed in November, January, March, and May, the November and January orders may be combined and the March and May orders may be combined. After combining the November and January orders, the March order may not be combined with January.

B5. The Government intends on competing delivery orders and splitting each award by a percentage of total Government dollars available.

However, the Government reserves the right to issue sole source orders pursuant to FAR 16.505(b), or to award a single delivery order if it determines that a split award is not in its best interest in that particular competition. For each order, the contractor is able to propose a lower unit price than the unit prices on contract.

B6. The Government intends to buy to the total available dollars for Delivery Order 0001 based on pricing achieved through negotiations on the base contract. Contemplation letters will not be issued. The Government will subtract the price of the FAATs (CLINs 0002 and

0003) from the total available dollars and split the remaining total available dollars 60%/40% between the two contractors. The contractor with the lowest unit price for the applicable quantity range will receive the 60% split. The total available funding will dictate the quantity range used for CLIN 0001.

B7. Prices negotiated on contract shall not include demilled propellant. If demilled propellant is available for delivery orders, the

Government will reduce the cost of propellant to $0.01 per pound and unit prices will be reduced for that order. The contractors will have an opportunity to propose a lower price than the reduced unit prices for that order.

*** END OF NARRATIVE B0001 ***

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SECTION F - DELIVERIES OR PERFORMANCE

Status Regulatory Cite Title Date Status Regulatory Cite Title Date _______ _______________ ______________________________________________________________________ ____________ _______ _______________ ______________________________________________________________________ ____________

F-1 DELETED 252.211-7003 ITEM UNIQUE IDENTIFICATION AND VALUATION DEC/2013

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SECTION I - CONTRACT CLAUSES

Status Regulatory Cite Title Date Status Regulatory Cite Title Date _______ _______________ ______________________________________________________________________ ____________ _______ _______________ ______________________________________________________________________ ____________

I-1 ADDED 252.225-7007 PROHIBITION ON ACQUISITION OF UNITED STATES MUNITIONS LIST ITEMS FROM SEP/2006

COMMUNIST CHINESE MILITARY COMPANIES

I-2 CHANGED 52.243-7 NOTIFICATION OF CHANGES APR/1984

(a) Definitions. Contracting Officer, as used in this clause, does not include any representative of the Contracting Officer.

Specifically Authorized Representative (SAR), as used in this clause, means any person the Contracting Officer has so designated by written notice (a copy of which shall be provided to the Contractor) which shall refer to this subparagraph and shall be issued to the designated representative before the SAR exercises such authority.

(b) Notice. The primary purpose of this clause is to obtain prompt reporting of Government conduct that the Contractor considers to constitute a change to this contract. Except for changes identified as such in writing and signed by the Contracting Officer, the

Contractor shall notify the Administrative Contracting Officer in writing promptly, within 10 calendar days from the date that the

Contractor identifies any Government conduct (including actions, inactions, and written or oral communications) that the Contractor regards as a change to the contract terms and conditions. On the basis of the most accurate information available to the Contractor, the notice shall state --

(1) The date, nature, and circumstances of the conduct regarded as a change;

(2) The name, function, and activity of each Government individual and Contractor official or employee involved in or knowledgeable about such conduct;

(3) The identification of any documents and the substance of any oral communication involved in such conduct;

(4) In the instance of alleged acceleration of scheduled performance or delivery, the basis upon which it arose;

(5) The particular elements of contract performance for which the Contractor may seek an equitable adjustment under this clause, including --

(i) What contract line items have been or may be affected by the alleged change;

(ii) What labor or materials or both have been or may be added, deleted, or wasted by the alleged change;

(iii) To the extent practicable, what delay and disruption in the manner and sequence of performance and effect on continued performance have been or may be caused by the alleged change;

(iv) What adjustments to contract price, delivery schedule, and other provisions affected by the alleged change are estimated; and

(6) The Contractors estimate of the time by which the Government must respond to the Contractors notice to minimize cost, delay or disruption of performance.

(c) Continued performance. Following submission of the notice required by paragraph (b) of this clause, the Contractor shall diligently continue performance of this contract to the maximum extent possible in accordance with its terms and conditions as construed by the

Contractor, unless the notice reports a direction of the Contracting Officer or a communication from a SAR of the Contracting Officer, in either of which events the Contractor shall continue performance; provided, however, that if the Contractor regards the direction or communication as a change as described in paragraph (b) of this clause, notice shall be given in the manner provided. All directions, communications, interpretations, orders and similar actions of the SAR shall be reduced to writing promptly and copies furnished to the

Contractor and to the Contracting Officer. The Contracting Officer shall promptly countermand any action which exceeds the authority of the SAR.

(d) Government response. The Contracting Officer shall promptly, within 10 calendar days after receipt of notice, respond to the notice in writing. In responding, the Contracting Officer shall either --

(1) Confirm that the conduct of which the Contractor gave notice constitutes a change and when necessary direct the mode of further performance;

(2) Countermand any communication regarded as a change;

(3) Deny that the conduct of which the Contractor gave notice constitutes a change and when necessary direct the mode of further performance; or

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(4) In the event the Contractors notice information is inadequate to make a decision under subparagraphs (d)(1), (2), or (3) of this clause, advise the Contractor what additional information is required, and establish the date by which it should be furnished and the date thereafter by which the Government will respond.

(e) Equitable adjustments.

(1) If the Contracting Officer confirms that Government conduct effected a change as alleged by the Contractor, and the conduct causes an increase or decrease in the Contractors cost of, or the time required for, performance of any part of the work under this contract, whether changed or not changed by such conduct, an equitable adjustment shall be made --

(i) In the contract price or delivery schedule or both; and

(ii) In such other provisions of the contract as may be affected.

(2) The contract shall be modified in writing accordingly. In the case of drawings, designs or specifications which are defective and for which the Government is responsible, the equitable adjustment shall include the cost and time extension for delay reasonably incurred by the Contractor in attempting to comply with the defective drawings, designs or specifications before the Contractor identified, or reasonably should have identified, such defect. When the cost of property made obsolete or excess as a result of a change confirmed by the Contracting Officer under this clause is included in the equitable adjustment, the Contracting Officer shall have the right to prescribe the manner of disposition of the property. The equitable adjustment shall not include increased costs or time extensions for delay resulting from the Contractors failure to provide notice or to continue performance as provided, respectively, in paragraphs (b) and (c) of this clause.

NOTE: The phrases contract price and cost wherever they appear in the clause, may be appropriately modified to apply to cost-reimbursement or incentive contracts, or to combinations thereof.

(End of Clause)

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Name of Offeror or Contractor:

PIIN/SIIN MOD/AMD

SECTION J - LIST OF ATTACHMENTS

List of Number List of Number

Addenda Title Date of Pages Transmitted By Addenda Title Date of Pages Transmitted By________________ ____________________________________________________________ _______________ ____________ _______________________________ ____________________________________________________________ _______________ ____________ _______________

Attachment 0005 CTG 120MM M1028 TDP, 13006675 04-MAY-2015 001 EMAIL

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