W31P4Q23R0059-0003.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

0003 2023SEP28

W31P4Q

ARMY CONTRACTING COMMAND-REDSTONE

REDSTONE ARSENAL AL 35898-5280

CELIA FARRELL

EMAIL: CELIA.L.FARRELL.CIV@ARMY.MIL

W31P4Q-23-R-0059

2023SEP05

X

X 2023OCT16 05:00pm

/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: CELIA FARRELL

Buyer Office Symbol/Telephone Number: CCAM-PFA/(000)000-0000

Type of Contract 1: Firm Fixed Price

Kind of Contract: Supply Contracts and Priced Orders

*** End of Narrative A0000 ***

A-1. The purpose of Amendment 0003 is to make the following change to Solicitation W31P4Q-23-R-0059:

A-2. Increase in quantities for the part number are summarized below:

Noun: M28A2, Inert Warheads

Part Number: 13540611

QTY Increase: 10,437 Each

- Base Year: 1,837 Each

- Option Year 1: 2,364 Each

- Option Year 2: 2,599 Each

- Option Year 3: 3,637 Each

Quantity increased for CLIN: 0001AA

A-3. Add and update delivery schedule for the following CLINs:

Schedule changed for CLINs: 0003AA, 0004AA, 0005AA, 0006AA, 0007AA

Added CLIN for Option Year 1: 1002AA

Added CLIN for Option Year 2: 2006

Added CLIN for Option Year 3: 3007

A-4. Solicitation due date has been extended from 09 October 2023 to 16 October 2023. Offerors shall submit all responses and proposals electronically no later than 1700 hours CDT on 16 October 2023 to the following email addresses:

celia.l.farrell.civ@army.mil and latisha.r.walters.civ@army.mil

*** END OF NARRATIVE A0004 ***

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W31P4Q-23-R-0059

PIIN/SIIN

Page of

Name of Offeror or Contractor:

ITEM NO SUPPLIES/SERVICES QUANTITY UNIT UNIT PRICE AMOUNT

Reference No. of Document Being Continued

MOD/AMD

SECTION B - SUPPLIES OR SERVICES AND PRICES/COSTS

0001AA US ARMY RRPR - INERT WARHEAD 288 EA $ $ ____________________________ ______________ __________________

COMMODITY NAME: Inert WH US Army Cam

CLIN CONTRACT TYPE:

Firm Fixed Price

PRON: PF3RRPA82K PRON AMD: 01

Packaging and Marking _____________________

Inspection and Acceptance _________________________

INSPECTION: Origin ACCEPTANCE: Origin

Deliveries or Performance _________________________

DOC SUPPL

REL CD MILSTRIP ADDR SIG CD MARK FOR TP CD ______ ________ ______ ______ ________ _____

001 W80FLR3194EF02 CL0VJS J 3

PROJ CD BRK BLK PT _______ __________

GG4

DEL REL CD QUANTITY DEL DATE __________ ______________ ___________

001 100 28-APR-2024

002 100 31-MAY-2024

003 88 30-JUN-2024

FOB POINT: Origin

SHIP TO:

(CL0VJS) XR LOCKHEED MARTIN CORPORATION

15604 W AR 274 HWY

CAMDEN,AR,71701-5042

0002 INERT WH US ARMY LEM

NSN: 9999-99-999-9999

Mfr CAGE: 18876

Mfr Part Number: 111111111

0002AA US ARMY RRPR- INERT WARHEAD 48 EA $ $ ___________________________ ______________ __________________

COMMODITY NAME: INERT WH US ARMY LEM

PRON: PF3RRPA72K PRON AMD: 01

Packaging and Marking _____________________

Inspection and Acceptance _________________________

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Page of

Name of Offeror or Contractor:

ITEM NO SUPPLIES/SERVICES QUANTITY UNIT UNIT PRICE AMOUNT

Reference No. of Document Being Continued

MOD/AMD

INSPECTION: Origin ACCEPTANCE: Origin

Deliveries or Performance _________________________

DOC SUPPL

REL CD MILSTRIP ADDR SIG CD MARK FOR TP CD ______ ________ ______ ______ ________ _____

001 W80FLR3194EF01 W25G1R J 3

PROJ CD BRK BLK PT _______ __________

GG4

DEL REL CD QUANTITY DEL DATE __________ ______________ ___________

001 12 28-APR-2024

002 12 31-MAY-2024

003 12 30-JUN-2024

004 12 28-JUL-2024

FOB POINT: Origin

SHIP TO:

(W25G1R) SR W39Z LETTERKENNY MUNITIONS CTR

ROUTE 997

VOELZ GATE EMERGENCY 717 267 880

CHAMBERSBURG,PA,17201-4150

0003AA USMC RRPR - INERT WARHEAD 684 EA $ $ _________________________ ______________ __________________

COMMODITY NAME: USMC 684 Inert Warhe

PRON: T13MCIW159 PRON AMD: 01

Packaging and Marking _____________________

Inspection and Acceptance _________________________

INSPECTION: Origin ACCEPTANCE: Origin

Deliveries or Performance _________________________

DOC SUPPL

REL CD MILSTRIP ADDR SIG CD MARK FOR TP CD ______ ________ ______ ______ ________ _____

001 W80FLR3198EF01 W25G1R J 3

DEL REL CD QUANTITY DEL DATE __________ ______________ ___________

001 75 28-APR-2024

002 75 31-MAY-2024

003 75 30-JUN-2024

004 75 28-JUL-2024

005 75 31-AUG-2024

006 75 30-SEP-2024

007 75 30-OCT-2024

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Name of Offeror or Contractor:

ITEM NO SUPPLIES/SERVICES QUANTITY UNIT UNIT PRICE AMOUNT

Reference No. of Document Being Continued

MOD/AMD

008 158 30-NOV-2024

009 1 01-DEC-2024

FOB POINT: Origin

SHIP TO:

(W25G1R) SR W39Z LETTERKENNY MUNITIONS CTR

ROUTE 997

VOELZ GATE EMERGENCY 717 267 880

CHAMBERSBURG,PA,17201-4150

0004AA ROMANIA - INERT WARHEAD 264 EA $ $ _______________________ ______________ __________________

COMMODITY NAME: Inert Warheads - Rom

CLIN CONTRACT TYPE:

Firm Fixed Price

PRON: J52ST75459 PRON AMD: 01

FMS COUNTRY/CASE: RO/UEW

Packaging and Marking _____________________

Inspection and Acceptance _________________________

INSPECTION: Origin ACCEPTANCE: Origin

Deliveries or Performance _________________________

DOC SUPPL

REL CD MILSTRIP ADDR SIG CD MARK FOR TP CD ______ ________ ______ ______ ________ _____

001 BROC7511199098B CL0VJS M 3

DEL REL CD QUANTITY DEL DATE __________ ______________ ___________

001 94 30-JUN-2024

002 70 28-JUL-2024

003 50 31-AUG-2024

004 48 30-SEP-2024

005 1 01-OCT-2024

006 1 02-OCT-2024

FOB POINT: Origin

SHIP TO:

(CL0VJS) XR LOCKHEED MARTIN CORPORATION

15604 W AR 274 HWY

CAMDEN,AR,71701-5042

0005AA TAIWAN - INERT WARHEAD 324 EA $ $ ______________________ ______________ __________________

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ITEM NO SUPPLIES/SERVICES QUANTITY UNIT UNIT PRICE AMOUNT

Reference No. of Document Being Continued

MOD/AMD

COMMODITY NAME: Inert Warheads - Tai

CLIN CONTRACT TYPE:

Firm Fixed Price

PRON: J52ST75559 PRON AMD: 01

FMS COUNTRY/CASE: TW/ZDJ

Packaging and Marking _____________________

Inspection and Acceptance _________________________

INSPECTION: Origin ACCEPTANCE: Origin

Deliveries or Performance _________________________

DOC SUPPL

REL CD MILSTRIP ADDR SIG CD MARK FOR TP CD ______ ________ ______ ______ ________ _____

001 BTWU2520779002B CL0VJS M 3

DEL REL CD QUANTITY DEL DATE __________ ______________ ___________

001 25 31-MAY-2024

002 100 30-JUN-2024

003 24 28-JUL-2024

004 50 31-AUG-2024

005 125 30-SEP-2024

FOB POINT: Origin

SHIP TO:

(CL0VJS) XR LOCKHEED MARTIN CORPORATION

15604 W AR 274 HWY

CAMDEN,AR,71701-5042

0006AA SINGAPORE - INERT WARHEAD 144 EA $ $ _________________________ ______________ __________________

COMMODITY NAME: Inert Warheads - Sin

CLIN CONTRACT TYPE:

Firm Fixed Price

PRON: J52ST75659 PRON AMD: 01

FMS COUNTRY/CASE: SN/VGX

Packaging and Marking _____________________

Inspection and Acceptance _________________________

INSPECTION: Origin ACCEPTANCE: Origin

Deliveries or Performance _________________________

DOC SUPPL

REL CD MILSTRIP ADDR SIG CD MARK FOR TP CD ______ ________ ______ ______ ________ _____

001 BSN02420049001B CL0VJS M 3

DEL REL CD QUANTITY DEL DATE __________ ______________ ___________

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ITEM NO SUPPLIES/SERVICES QUANTITY UNIT UNIT PRICE AMOUNT

Reference No. of Document Being Continued

MOD/AMD

001 35 28-JUL-2024

002 83 31-AUG-2024

003 25 30-SEP-2024

004 1 01-OCT-2024

FOB POINT: Origin

SHIP TO:

(CL0VJS) XR LOCKHEED MARTIN CORPORATION

15604 W AR 274 HWY

CAMDEN,AR,71701-5042

0007AA JORDAN - INERT WARHEAD 84 EA $ $ ______________________ ______________ __________________

COMMODITY NAME: Inert Warheads - Jor

CLIN CONTRACT TYPE:

Firm Fixed Price

PRON: J52ST75159 PRON AMD: 01

FMS COUNTRY/CASE: JO/YAY

Packaging and Marking _____________________

Inspection and Acceptance _________________________

INSPECTION: Origin ACCEPTANCE: Origin

Deliveries or Performance _________________________

DOC SUPPL

REL CD MILSTRIP ADDR SIG CD MARK FOR TP CD ______ ________ ______ ______ ________ _____

001 BJOF9N20849011B CL0VJS M 3

DEL REL CD QUANTITY DEL DATE __________ ______________ ___________

001 25 28-JUL-2024

002 34 31-AUG-2024

003 25 30-SEP-2024

FOB POINT: Origin

SHIP TO:

(CL0VJS) XR LOCKHEED MARTIN CORPORATION

15604 W AR 274 HWY

CAMDEN,AR,71701-5042

0008 INERT WH FAI/PLV

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ITEM NO SUPPLIES/SERVICES QUANTITY UNIT UNIT PRICE AMOUNT

Reference No. of Document Being Continued

MOD/AMD

0008AA FIRST ARTICLE INSPECTION/PRODUCTION LOT 1 LO $ _______________________________________ __________________

SERVICE REQUESTED: INERT WH FAI/PLV

CLIN CONTRACT TYPE:

Firm Fixed Price

PRON: PF3RRPA92K PRON AMD: 01

Inspection and Acceptance _________________________

INSPECTION: Origin ACCEPTANCE: Origin

DLVR SCH PERF COMPL

REL CD QUANTITY DATE ________ ______________ __________

001 1 20-DEC-2024

1002 INERT WARHEAD

1002AA US ARMY RRPR- INERT WARHEAD $ $ ___________________________ ______________ __________________

COMMODITY NAME: INERT WARHEAD

DOC REL CD QUANTITY DATE__________ ________ ____

001 0 TBD

SHIP TO: (W25G1R)

SR W39Z LETTERKENNY MUNITIONS CTR ROUTE 997

VOELZ GATE EMERGENCY

717 267 880

CHAMBERSBURG, PA

17201-4150

(End of narrative B001)

Packaging and Marking _____________________

Inspection and Acceptance _________________________

INSPECTION: Origin ACCEPTANCE: Origin

Deliveries or Performance _________________________

DOC SUPPL

REL CD MILSTRIP ADDR SIG CD MARK FOR TP CD ______ ________ ______ ______ ________ _____

FOB POINT: Origin

2006 CONTRACT DATA REQUIREMENTS LIST (CDRLS) $ $ _______________________________________ ______________ __________________

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Reference No. of Document Being Continued

MOD/AMD

COMMODITY NAME: INERT WARHEAD

This CLIN is "Not Separately Priced" (NSP).

Pricing for data shall be included in the unit prices of the CLIN 2001AA and 2002AA.

The Contractor shall provide Data Items A001 -

A011 in accordance with the Contract Data

Requirements Package, Exhibit A.

(End of narrative B001)

Packaging and Marking _____________________

Inspection and Acceptance _________________________

INSPECTION: Origin ACCEPTANCE: Origin

Deliveries or Performance _________________________

DOC SUPPL

REL CD MILSTRIP ADDR SIG CD MARK FOR TP CD ______ ________ ______ ______ ________ _____

FOB POINT: Origin

3007 CONTRACT DATA REQUIREMENTS LIST (CDRLS) $ $ _______________________________________ ______________ __________________

COMMODITY NAME: INERT WARHEAD

This CLIN is "Not Separately Priced" (NSP).

Pricing for data shall be included in the unit prices of the CLIN 3001AA and 3002AA.

The Contractor shall provide Data Items A001 -

A011 in accordance with the Contract Data

Requirements Package, Exhibit A.

(End of narrative B001)

Packaging and Marking _____________________

Inspection and Acceptance _________________________

INSPECTION: Origin ACCEPTANCE: Origin

Deliveries or Performance _________________________

DOC SUPPL

REL CD MILSTRIP ADDR SIG CD MARK FOR TP CD ______ ________ ______ ______ ________ _____

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ITEM NO SUPPLIES/SERVICES QUANTITY UNIT UNIT PRICE AMOUNT

Reference No. of Document Being Continued

MOD/AMD

FOB POINT: Origin

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SECTION I - CONTRACT CLAUSES

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

I-1 CHANGED 52.232-16 PROGRESS PAYMENTS (MAR 2020) (DEVIATION 2020-O0010) NOV/2021

The Government will make progress payments to the Contractor when requested as work progresses, but not more frequently than monthly, in amounts of $2,500 or more approved by the Contracting Officer, under the following conditions:

(a) Computation of amounts.

(1) Unless the Contractor requests a smaller amount, the Government will compute each progress payment as 80 percent of the Contractor's total costs incurred under this contract whether or not actually paid, plus financing payments to subcontractors (see paragraph (j) of this clause), less the sum of all previous progress payments made by the Government under this contract. The Contracting Officer will consider cost of money that would be allowable under FAR 31.205-10 as an incurred cost for progress payment purposes.

(2) The amount of financing and other payments for supplies and services purchased directly for the contract are limited to the amounts that have been paid by cash, check, or other forms of payment, or that are determined due and will be paid to subcontractors

(i) In accordance with the terms and conditions of a subcontract or invoice; and

(ii) Ordinarily within 30 days of the submission of the Contractor's payment request to the Government.

(3) The Government will exclude accrued costs of Contractor contributions under employee pension plans until actually paid unless-

(i) The Contractor's practice is to make contributions to the retirement fund quarterly or more frequently; and

(ii) The contribution does not remain unpaid 30 days after the end of the applicable quarter or shorter payment period (any contribution remaining unpaid shall be excluded from the Contractor's total costs for progress payments until paid).

(4) The Contractor shall not include the following in total costs for progress payment purposes in paragraph (a)(1) of this clause:

(i) Costs that are not reasonable, allocable to this contract, and consistent with sound and generally accepted accounting principles and practices.

(ii) Costs incurred by subcontractors or suppliers.

(iii) Costs ordinarily capitalized and subject to depreciation or amortization except for the properly depreciated or amortized portion of such costs.

(iv) Payments made or amounts payable to subcontractors or suppliers, except for-

(A) Completed work, including partial deliveries, to which the Contractor has acquired title; and

(B) Work under cost-reimbursement or time-and-material subcontracts to which the Contractor has acquired title.

(5) The amount of unliquidated progress payments may exceed neither (i) the progress payments made against incomplete work (including allowable unliquidated progress payments to subcontractors) nor (ii) the value, for progress payment purposes, of the incomplete work.

Incomplete work shall be considered to be the supplies and services required by this contract, for which delivery and invoicing by the

Contractor and acceptance by the Government are incomplete.

(6) The total amount of progress payments shall not exceed 80 percent of the total contract price.

(7) If a progress payment or the unliquidated progress payments exceed the amounts permitted by subparagraphs (a)(4) or (a)(5) above, the Contractor shall repay the amount of such excess to the Government on demand.

(8) Notwithstanding any other terms of the contract, the Contractor agrees not to request progress payments in dollar amounts of less than $2,500. The Contracting Officer may make exceptions.

(9) The costs applicable to items delivered, invoiced, and accepted shall not include costs in excess of the contract price of the

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items.

(b) Liquidation. Except as provided in the Termination for Convenience of the Government clause, all progress payments shall be liquidated by deducting from any payment under this contract, other than advance or progress payments, the unliquidated progress payments, or 80 percent of the amount invoiced, whichever is less. The Contractor shall repay to the Government any amounts required by a retroactive price reduction, after computing liquidations and payments on past invoices at the reduced prices and adjusting the unliquidated progress payments accordingly. The Government reserves the right to unilaterally change from the ordinary liquidation rate to an alternate rate when deemed appropriate for proper contract financing.

(c) Reduction or suspension. The Contracting Officer may reduce or suspend progress payments, increase the rate of liquidation, or take a combination of these actions, after finding on substantial evidence any of the following conditions:

(1) The Contractor failed to comply with any material requirement of this contract (which includes paragraphs (f) and (g) below).

(2) Performance of this contract is endangered by the Contractor's (i) failure to make progress or (ii) unsatisfactory financial condition.

(3) Inventory allocated to this contract substantially exceeds reasonable requirements.

(4) The Contractor is delinquent in payment of the costs of performing this contract in the ordinary course of business.

(5) The fair value of the undelivered work is less than the amount of unliquidated progress payments for that work.

(6) The Contractor is realizing less profit than that reflected in the establishment of any alternate liquidation rate in paragraph (b) above, and that rate is less than the progress payment rate stated in subparagraph (a)(1) above.

(d) Title.

(1) Title to the property described in this paragraph (d) shall vest in the Government. Vestiture shall be immediately upon the date of this contract, for property acquired or produced before that date. Otherwise, vestiture shall occur when the property is or should have been allocable or properly chargeable to this contract.

(2) Property, as used in this clause, includes all of the below-described items acquired or produced by the Contractor that are or should be allocable or properly chargeable to this contract under sound and generally accepted accounting principles and practices.

(i) Parts, materials, inventories, and work in process;

(ii) Special tooling and special test equipment to which the Government is to acquire title;

(iii) Nondurable (i.e., noncapital) tools, jigs, dies, fixtures, molds, patterns, taps, gauges, test equipment, and other similar manufacturing aids, title to which would not be obtained as special tooling under subparagraph (ii) above; and

(iv) Drawings and technical data, to the extent the Contractor or subcontractors are required to deliver them to the Government by other clauses of this contract.

(3) Although title to property is in the Government under this clause, other applicable clauses of this contract, e.g., the termination clauses, shall determine the handling and disposition of the property.

(4) The Contractor may sell any scrap resulting from production under this contract without requesting the Contracting Officer's approval, but the proceeds shall be credited against the costs of performance.

(5) To acquire for its own use or dispose of property to which title is vested in the Government under this clause, the Contractor must obtain the Contracting Officer's advance approval of the action and the terms. The Contractor shall (i) exclude the allocable costs of the property from the costs of contract performance, and (ii) repay to the Government any amount of unliquidated progress payments allocable to the property. Repayment may be by cash or credit memorandum.

(6) When the Contractor completes all of the obligations under this contract, including liquidation of all progress payments, title shall vest in the Contractor for all property (or the proceeds thereof) not

(i) Delivered to, and accepted by, the Government under this contract; or

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(ii) Incorporated in supplies delivered to, and accepted by, the Government under this contract and to which title is vested in the

Government under this clause.

(7) The terms of this contract concerning liability for Government-furnished property shall not apply to property to which the

Government acquired title solely under this clause.

(e) Risk of loss. Before delivery to and acceptance by the Government, the Contractor shall bear the risk of loss for property, the title to which vests in the Government under this clause, except to the extent the Government expressly assumes the risk. The Contractor shall repay the Government an amount equal to the unliquidated progress payments that are based on costs allocable to property that is lost (see 45.101).

(f) Control of costs and property. The Contractor shall maintain an accounting system and controls adequate for the proper administration of this clause.

(g) Reports, forms, and access to records.

(1) The Contractor shall promptly furnish reports, certificates, financial statements, and other pertinent information (including estimates to complete) reasonably requested by the Contracting Officer for the administration of this clause. Also, the Contractor shall give the Government reasonable opportunity to examine and verify the Contractor's books, records, and accounts.

(2) The Contractor shall furnish estimates to complete that have been developed or updated within six months of the date of the progress payment request. The estimates to complete shall represent the Contractor's best estimate of total costs to complete all remaining contract work required under the contract. The estimates shall include sufficient detail to permit Government verification.

(3) Each Contractor request for progress payment shall:

(i) Be submitted on Standard Form 1443, Contractor's Request for Progress Payment, or the electronic equivalent as required by agency regulations, in accordance with the form instructions and the contract terms; and

(ii) Include any additional supporting documentation requested by the Contracting Officer.

(h) Special terms regarding default. If this contract is terminated under the Default clause, (i) the Contractor shall, on demand, repay to the Government the amount of unliquidated progress payments, and (ii) title shall vest in the Contractor, on full liquidation of progress payments, for all property for which the Government elects not to require delivery under the Default clause. The Government shall be liable for no payment except as provided by the Default clause.

(i) Reservations of rights.

(1) No payment or vesting of title under this clause shall (i) excuse the Contractor from performance of obligations under this contract or (ii) constitute a waiver of any of the rights or remedies of the parties under the contract.

(2) The Government's rights and remedies under this clause (i) shall not be exclusive but rather shall be in addition to any other rights and remedies provided by law or this contract and (ii) shall not be affected by delayed, partial, or omitted exercise of any right, remedy, power, or privilege, nor shall such exercise or any single exercise preclude or impair any further exercise under this clause or the exercise of any other right, power, or privilege of the Government.

(j) Financing payments to subcontractors. The financing payments to subcontractors mentioned in paragraphs (a)(1) and (a)(2) of this clause shall be all financing payments to subcontractors or divisions, if the following conditions are met:

(1) The amounts included are limited to

(i) The unliquidated remainder of financing payments made; plus

(ii) Any unpaid subcontractor requests for financing payments.

(2) The subcontract or interdivisional order is expected to involve a minimum of approximately 6 months between the beginning of work and the first delivery; or, if the subcontractor is a small business concern, 4 months.

(3) If the financing payments are in the form of progress payments, the terms of the subcontract or interdivisional order concerning progress payments

(i) Are substantially similar to the terms of this clause for any subcontractor that is a large business concern, or this clause with its Alternate I for any subcontractor that is a small business concern;

(ii) Are at least as favorable to the Government as the terms of this clause;

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(iii) Are not more favorable to the subcontractor or division than the terms of this clause are to the Contractor;

(iv) Are in conformance with the requirements of FAR 32.504(e); and

(v) Subordinate all subcontractor rights concerning property to which the Government has title under the subcontract to the Government's right to require delivery of the property to the Government if

(A) The Contractor defaults; or

(B) The subcontractor becomes bankrupt or insolvent.

(4) If the financing payments are in the form of performance-based payments, the terms of the subcontract or interdivisional order concerning payments

(i) Are substantially similar to the Performance-Based Payments clause at FAR 52.232-32 and meet the criteria for, and definition of, performance-based payments in FAR Part 32;

(ii) Are in conformance with the requirements of FAR 32.504(f); and

(iii) Subordinate all subcontractor rights concerning property to which the Government has title under the subcontract to the

Government's right to require delivery of the property to the Government if

(A) The Contractor defaults; or

(B) The subcontractor becomes bankrupt or insolvent.

(5) If the financing payments are in the form of commercial item financing payments, the terms of the subcontract or interdivisional order concerning payments

(i) Are constructed in accordance with FAR 32.206(c) and included in a subcontract for a commercial item purchase that meets the definition and standards for acquisition of commercial items in FAR Parts 2 and 12;

(ii) Are in conformance with the requirements of FAR 32.504(g); and

(iii) Subordinate all subcontractor rights concerning property to which the Government has title under the subcontract to the

Government's right to require delivery of the property to the Government if

(A) The Contractor defaults; or

(B) The subcontractor becomes bankrupt or insolvent.

(6) If financing is in the form of progress payments, the progress payment rate in the subcontract is the customary rate used by the contracting agency, depending on whether the subcontractor is or is not a small business concern.

(7) Concerning any proceeds received by the Government for property to which title has vested in the Government under the subcontract terms, the parties agree that the proceeds shall be applied to reducing any unliquidated financing payments by the Government to the

Contractor under this contract.

(8) If no unliquidated financing payments to the Contractor remain, but there are unliquidated financing payments that the Contractor has made to any subcontractor, the Contractor shall be subrogated to all the rights the Government obtained through the terms required by this clause to be in any subcontract, as if all such rights had been assigned and transferred to the Contractor.

(9) To facilitate small business participation in subcontracting under this contract, the Contractor shall provide financing payments to small business concerns, in conformity with the standards for customary contract financing payments stated in FAR 32.113. The Contractor shall not consider the need for such financing payments as a handicap or adverse factor in the award of subcontracts.

(k) Limitations on undefinitized contract actions. Notwithstanding any other progress payment provisions in this contract, progress payments may not exceed 80 percent of costs incurred on work accomplished under undefinitized contract actions. A contract action is any action resulting in a contract, as defined in subpart 2.1, including contract modifications for additional supplies or services, but not including contract modifications that are within the scope and under the terms of the contract, such as contract modifications issued pursuant to the Changes clause, or funding and other administrative changes. This limitation shall apply to the costs incurred, as computed in accordance with paragraph (a) of this clause, and shall remain in effect until the contract action is definitized. Costs incurred which are subject to this limitation shall be segregated on Contractor progress payment requests and invoices from those costs eligible for higher progress payment rates. For purposes of progress payment liquidation, as described in paragraph (b) of this clause, 14 15

Name of Offeror or Contractor:

PIIN/SIIN MOD/AMD

progress payments for undefinitized contract actions shall be liquidated at 80 percent of the amount invoiced for work performed under the undefinitized contract action as long as the contract action remains undefinitized. The amount of unliquidated progress payments for undefinitized contract actions shall not exceed 80 percent of the maximum liability of the Government under the undefinitized contract action or such lower limit specified elsewhere in the contract. Separate limits may be specified for separate actions.

(l) Due date. The designated payment office will make progress payments on the ____ [Contracting Officer insert date as prescribed by agency head; if not prescribed, insert "30th"] day after the designated billing office receives a proper progress payment request. In the event that the Government requires an audit or other review of a specific progress payment request to ensure compliance with the terms and conditions of the contract, the designated payment office is not compelled to make payment by the specified due date. Progress payments are considered contract financing and are not subject to the interest penalty provisions of the Prompt Payment Act.

(m) Progress payments under indefinite-delivery contracts. The Contractor shall account for and submit progress payment requests under individual orders as if the order constituted a separate contract, unless otherwise specified in this contract.

(End of clause)

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