W52P1J-17-R-0141_0002.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

Fixed Price with EPA - Actual Costs

0002 2018DEC07

W52P1J

ARMY CONTRACTING COMMAND - RI

ROCK ISLAND, IL 61299-8000

BLDGS 60 & 62

BENJAMIN J. GILLEN

EMAIL: BENJAMIN.J.GILLEN.CIV@MAIL.MIL

W52P1J-17-R-0141

2018OCT31

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:

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SECTION A - SUPPLEMENTAL INFORMATION

Buyer Name: BENJAMIN J. GILLEN

Buyer Office Symbol/Telephone Number: CCRC-AC/(309)782-4571

Type of Contract 1: Fixed Price with EPA - Established Prices

Kind of Contract: Supply Contracts and Priced Orders

*** End of Narrative A0000 ***

W52P1J-17-R-0141 / Amendment 0002

The purpose of this amendment is to effect the following changes to Request for Proposal (RFP) W52P1J-17-R-0141.

1. Revise the following to update the Government Property clause references from FAR 52.245-1 to FAR 52.245-1 - Alternate I.

a) Narrative A0001, Paragraph 2(j)

b) Narrative H0005, Paragraph (a) - Ownership of Personal Property

c) Narrative H0009, Commercial Utilization & Contractor Investment in the Facility, Paragraph (b)

d) Section J, Attachment 0001 - PWS 1 - Maintenance

e) Section J, Attachment 0007 - PWS 7 - Government Property in Possession of the Contractor

2. Revise the following Section J Attachments to make administrative changes and include the M2A2 can.

a) Attachment 0032 - FAT Price Matrix - 5.56mm

b) Attachment 0033 - FAT Price Matrix - 7.62mm

c) Attachment 0034 - FAT Price Matrix - .50 Caliber

d) Attachment 0035 - FAT Price Matrix - .22 Caliber

3. There is no change to the proposal response date as a result of this amendment.

4. All other terms and conditions of solicitation W52P1J-17-R-0141 remain in full force and effect.

*** END OF NARRATIVE A0003 ***

1. EXECUTIVE SUMMARY _________________

(a) Solicitation W52P1J-17-R-0141 is for the production of small caliber ammunition and the operation, maintenance, and modernization of the Lake City Army Ammunition Plant (LCAAP) for Fiscal Years (FY) 2020 through 2029.

(b) General information regarding this solicitation can be found on the Federal Business Opportunities (FBO) website at www.fbo.gov by searching solicitation number W52P1J-17-R-0141. The Government has also established a Virtual Technical Library (VTL) on a controlled server, and an On-Site Library (OSL) at LCAAP, for contractors to use in support of proposal development. Instructions for obtaining access to the VTL and OSL are available on FBO. The data furnished by the Government to contractors under this solicitation may only be used in support of proposal development. No other use of this data is authorized.

(c) This acquisition is restricted to only those firms within the U.S. or its outlying areas.

(d) A SECRET Facility Security Clearance is required of the operating contractor of LCAAP due to the criteria identified in Attachment

0024, DD254 - Contract Security Classification Specification. The Government reserves the right to conduct an assessment of offerors' eligibility to obtain a SECRET Facility Security Clearance prior to contract award. Reference Narrative C0012, Facility Security

Clearance Requirement, for additional details.

(e) Specifications and drawings in the Technical Data Packages (TDPs) are Distribution D and Export Controlled. These documents are only available to those firms with an active registration with the US/Canada Joint Certification Program (JCP). Refer to Narrative C0001, Technical Data Package Information, and Distribution and Destruction of Restricted Technical Data, for specific instructions for requesting a copy of the TDPs and specifications.

(f) Contractors must have an active registration in the System for Award Management (SAM) to do business with the Federal Government.

Contractors are required to be registered in SAM at the time of proposal submission. The website for registering in SAM is www.sam.gov

(g) Utilizing a best value subjective tradeoff evaluation, and subject to availability of funds, this solicitation will result in the award of one, Firm-Fixed-Price (FFP) contract, to a single contractor.

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W52P1J-17-R-0141

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(h) The resultant contract will consist of a base period with five, one-year ordering periods; an evaluated option for two, one-year ordering periods exercised at time of award; and an evaluated three-year Award Term. Therefore, the maximum period of performance is ten years should the full three year Award Term be earned. The resulting contract will also include a one-year transition following the contract's final ordering period to allow for completion of deliveries and ongoing projects.

Base Period: Date of Award (DOA)-FY24 (DOA - 30 September 2024)

Option Period: FY25-26 (01 October 2024 - 30 September 2026)

Maximum Potential Award Term: FY27-10 years after DOA (01 October 2026 - 10 years after DOA)

(i) In year six of the contract, a determination to extend the contract will be made based upon the contractor's performance measured against the evaluation criteria set forth in Attachment 0027, Award Term Plan. See Narrative H0010, Award Term Plan, for details.

(j) Offerors are advised that the current operating contractor will encumber and maintain the LCAAP facility through 30 September 2020.

Both the incumbent and the successful offeror are contractually required to negotiate contract start-up activities in good faith to affect a complete, safe, and secure assumption of responsibilities without impacting facility operations and production deliveries as required by Attachment 0010, PWS 10 - Contract Start-Up and Transition. The successful offeror will take over operational control of the facility at 0000 CST on 01 October 2020, unless otherwise negotiated with the incumbent and contractually executed by the Government.

(k) Pursuant to FAR 9.103, a contract will only be awarded to a contractor that the Contracting Officer determines to be responsible.

Offerors must be able to demonstrate that they meet the standards of responsibility as set forth in FAR 9.104. The Government reserves the right to conduct a pre-award survey on any or all offerors, and if applicable, joint venture partners, contractors included in teaming arrangements, and major subcontractors.

(l) Receipt of an contractor's proposal in response to this solicitation is an affirmation that the contractor has had access to and received adequate information to prepare a proposal.

(m) In accordance with FAR 9.5, Organizational and Consultant Conflicts of Interest, it has been determined that the companies, and any affiliates or subsidiaries, listed below have an Organizational Conflict of Interest (OCI) and are prohibited from offering a proposal as a prime contractor or participating as a sub-contractor or a member of any team competing for this contract. The Government reserves the right to reject any offer it considers to represent an OCI.

(1) Science Applications International Corporation (SAIC)

(2) The Shenton Group

(3) Azimuth Consulting Services

(4) Franklin Engineering

(5) Technical Management Services

(6) Universal Technical Resource Services

(n) Offerors are advised that the Government will be using contractor support from SAIC during the source selection process. As SAIC will have access to offerors' proposals, in addition to the aforementioned restrictions under paragraph (m), offerors are required to execute a Non-Disclosure Agreement (NDA) with SAIC. SAIC is prohibited from participating as a subcontractor on any efforts/projects executed under the resultant contract. Offerors shall provide the executed NDA with its proposal submission. The NDA found at Attachment

0045 serves as a template and may be altered if mutually agreed upon by both parties.

2. REQUIREMENTS SUMMARY: ____________________

(a) The contract will consist of both FFP Requirements Contract Line Item Numbers (CLINs) and Indefinite-Delivery, Indefinite-Quantity

(IDIQ) CLINs. Accordingly, clauses specific to Requirement-type contracts apply to the Requirement CLINs. Clauses specific to IDIQ-type contracts apply to the IDIQ CLINs. Those clauses which are not specific to contract type apply to both.

(b) Requirement CLINs include all 5.56mm, 7.62mm, .50 Caliber, .30 Caliber, and .22 Caliber families of ammunition awarded by the Army

Contracting Command - Rock Island (ACC-RI). The Government reserves the right to not award any Requirements item(s) if any of the following conditions exist:

(1) There are delinquent quantities under the contract associated with that caliber,

(2) The contractor does not have the existing capability to produce within the Government's required delivery date for the particular order without impacting other deliveries. For urgent actions, the Government's required delivery date may be prior to the standard delivery date (i.e. 30 September of the following delivery order).

(3) The contractor cannot produce without Government funded facilitization (perishable tooling excluded), or

(4) It is a new item not previously procured under the contract.

(c) IDIQ CLINs include the IDIQ items identified in the price matrices at Attachments 0028 - 0031, and the AB46 (5.56mm M199A1 DDI

Fluted), AB47 (Cartridge, 7.62mm Dummy), AB36 (.50 Caliber Dummy M2 Linked), and AB48 (Cartridge .50 caliber Dummy M2).

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(d) The costs associated with performing the following indirect PWSs shall be accomplished by the contractor at no direct cost to the

Government (i.e., borne by the product price):

PWS 1 Maintenance

PWS 2 Safety

PWS 3 Security and Antiterrorism

PWS 4 Environmental

PWS 5 Utilities and Energy

PWS 6 Fire and Emergency Services

PWS 7 Government Property in Possession of the Contractor

PWS 8 Ammunition Materiel Management

PWS 9 Contract Production and Delivery Reporting

PWS 10 Contract Start-Up and Transition

PWS 11 Occupational Health and Industrial Hygiene

PWS 12 Support of On-Site Government Ballistic Services Office and NATO North American Regional Test Center

PWS 13 Mowing

PWS 14 Mail Services

PWS 15 Propellant Risk Mitigation

PWS 16 On-Site Government Personnel Support

(e) The following PWS will be funded utilizing tenant rent revenue: PWS 17 - Armament Retooling and Manufacturing Support.

(f) The following PWS will be directly funded, subject to availability of funds: PWS 18 - Facility Plans, Strategies, and Analyses.

(g) The following PWS will be directly funded on a cost reimbursable basis in accordance with FAR 52.216-11, Cost Contract, No Fee: PWS

19 - Army Family Housing.

(h) Deliveries shall be made in accordance with Narrative F0005, Ordering/Required Delivery Schedule.

(i) Reference Narrative H0001, Restriction of Critical Items and Components, for a list of critical items and components whose manufacture are restricted to sources within the U.S. or its outlying areas.

(j) Government Property: The Government intends to provide the property listed at Attachment 0023 - Government Furnished Property, to the successful offeror under this contract in an "as is, where is" condition. The Government will retain ownership and rights to this property, as well as all property acquired and/or utilized by the contractor. See PWS 7 - Government Property in Possession of the

Contractor, Narrative H0005, Ownership of Property, and FAR 52.245-1 - Alternate I, Government Property, for details.

(k) Government Furnished Material (GFM): M548 ammunition containers will be provided as GFM for use in performance of this contract to support standard military packaging (MILPACK) requirements only. M548 containers will not be provided for orders requiring commercial packaging (COMM PACK) applications.

(l) The contract is F.O.B. Origin. The Government is only responsible for the costs associated with the shipment of the deliverable end item; the contractor is responsible for all other shipping.

(m) First Article Tests (FATs) are required in accordance with Narrative E0009, First Article Test (Contractor Testing), and shall be priced in accordance with Attachments 0032-0035.

(n) The LCAAP facility is subject to a Collective Bargaining Agreement (CBA) with the International Association of Machinists and

Aerospace Workers. The current CBA is available on the LCAAP VTL.

(o) The successful offeror is required to abide by the terms of the LCAAP Armament Retooling and Manufacturing Support (ARMS) Tenant Use

Agreements in existence and effective beyond 30 September 2020. The ARMS Tenant Use Agreements are provided at Attachment 0026.

(p) The Government has conducted a Baseline Facility Assessment (BFA) and Baseline Environmental Condition Assessment (BECA) at LCAAP for the purpose of establishing the current environmental conditions. The results are available to contractors via LCAAP's VTL.

(q) A Small Business (SB) Subcontracting Plan is required at the time of proposal submission; see FAR 52.219-9, Small Business

Subcontracting Plan -- Alternate II (Deviation 2018-O0018), for details. Small Business goals are as follows:

Small Business: 32%

Small Disadvantaged Business: 2%

Women-Owned Small Business: 4%

HUBZone Certified Small Business: 4%

Veteran-Owned Small Business: 3%

Service Disabled Veteran-Owned Small Business: 3%

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(r) All contractual provisions specified are obligatory for the prime contractor. The prime contractor is responsible for enforcing contractual provisions upon all subcontractors, suppliers, and vendors.

(s) Offerors may submit an Indemnification request package. Packages shall be IAW Section L and are due December 7, 2018.

(t) With the exception of Volume 6, Indemnification Request Package, offerors' proposals shall be submitted no later than the date specified in Block 9 of the SF33, and shall be valid for a minimum of 330 days after submission. This requirement takes precedence over the days stated in Block 12 of the SF33.

(u) The successful offeror's proposal in response to this solicitation may be incorporated into the resultant contract in whole or in part at the time of the award. If incorporated, the offeror's proposal will therefore be a material term of the contract and failure to fully implement it could result in termination. No revisions or changes to the contractor's proposal may be made after award without prior approval of the Contracting Officer.

(v) The Government will re-negotiate, as required, the terms and conditions of this contract if future Base Realignment and Closure

(BRAC) legislation or other Government decisions alter current plant status/missions. The Government shall retain the right to modify the mission of the facility; this may include, or result in, the potential closure of the facility.

(w) The Contractor is advised that contract changes, to include engineering changes, will be authorized only by the Contracting Officer

IAW the terms of the resultant contract. No other Government personnel, whether in the act of technical supervision or administration, is authorized to make any commitment or instruct the contractor to perform or terminate any work, or to incur any obligation.

(x) The ACC-RI Contracting Officer is the only individual authorized to issue orders under the resultant contract.

*** END OF NARRATIVE A0001 ***

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SECTION H - SPECIAL CONTRACT REQUIREMENTS

OWNERSHIP OF PROPERTY_____________________

(a) Ownership of Personal Property: ______________________________

In accordance with, FAR 52.245-1 - Alternate I, Government Property, and PWS 7 - Government Property in Possession of the Contractor, the Government will retain title and ownership to all Government-furnished property and modifications to Government furnished property provided under the contract. In addition, the Government will establish title and ownership in all property acquired and/or utilized by the contractor in the performance of the contract as provided for in FAR 52.245-1 - Alternate I. Pursuant to FAR 52.245-1 - Alternate I, paragraph (e)(2), this narrative establishes specific requirements for passage of title, wherein title to property acquired, fabricated, or utilized by the contractor for use on fixed price contracts or fixed price line items will vest with the Government, rather than be retained by the contractor. This requirement for passage of title to the Government for property acquired and/or utilized by the contractor under fixed price efforts applies to acquisitions under the contract resulting from solicitation W52P1J-17-R-0141, as well as third party contracts authorized by the Government under the contract. The requirement for Government title includes, but is not limited to, plant equipment required to maintain capabilities to produce small caliber ammunition and components for the DoD at LCAAP. The

Government will retain title and ownership of all personal property that is maintained, upgraded, replaced, or added, as necessary, to sustain existing, new, or additional capabilities as may be determined by the Government throughout the life of the contract. No separate funding will be provided, except in the case of direct funded PWSs. Title to any property, including special tooling and test equipment, will vest to the Government in accordance with FAR 52.245-1 - Alternate I, PWS 7, and the provisions of this narrative, whether provided or acquired and/or utilized under fixed-priced, or cost reimbursable contract efforts, and whether as a direct, or indirect cost item. In clarification, this provision applies only to the contractor and does not apply to the property of contractor's subcontractors or ARMS tenants, unless that property was purchased with ARMS funds or is part of the Army's capacity (as described in

Narrative B0002, Industrial Capacity); it does not apply to the contractor's property acquired or used solely for commercial production unless that property is part of the Army's capacity. Commercial Production includes any business activity not undertaken pursuant to the performance of the production, facility or 3rd party contracts. For property acquired and/or utilized by the contractor under fixed price efforts, where absent the provisions of this narrative, title would have vested in the contractor, title will vest with the

Government at the end of the final contract performance period, whether or not the contract is extended by execution of an award term.

Once acquired/utilized by the contractor in performance of the contract, the property shall not be removed from LCAAP without approval of the Contracting Officer except for repair/modification with subsequent return to LCAAP. Prior to passage of title, the contractor shall manage and maintain the property in accordance with PWS 7 and PWS 1 - Maintenance; and plans and procedures associated with those

PWSs. The contractor shall provide a Transferrable Property List of all tagged property acquired in performance of the contract, including investment projects, wherein title is vested with the contractor until transfer to the Government at the end of the contract as outlined herein and in accordance with Exhibit B, CDRL A129, Transferrable Property List.

(b) Technical Data Rights: _____________________

Through the contract resulting from solicitation W52P1J-17-R-0141, the Government will establish rights in all technical data required to produce small caliber ammunition and components at LCAAP, including the processes and procedures necessary to maintain those capabilities as determined by the Government throughout the life of the contract; as well as technical data used in the performance of prime and third party contracts for other than small caliber ammunition and components. For the purpose of this narrative, technical data includes, but is not limited to, all process records, descriptions of manufacture, operating and inspection procedures, quality performance and test procedures, maintenance procedures and records, material and component purchase descriptions, software, and software applications. Technical data rights for non-commercial software and software applications encompass, but are not limited to, system design and architecture, program source code, interfaces, and associated system and user documentation. Data rights for commercial off the shelf (COTS) software applications encompass features of tailoring necessary for software implementation/functionality at LCAAP, including but not limited to customized scripts, database parameters, screens, reports, interfaces and user documentation. Technical data rights in software and software applications include all features necessary to enable a successor, to continue use of the software systems in place should the successor choose to use the same non-commercial software and/or license the same COTS software. While technical data rights are established by DFARS 252.227-7013, Rights in Technical Data

Noncommercial Items, and DFARS 252.227-7014, Rights in Noncommercial Computer Software and Noncommercial Computer Software

Documentation, the Government requires as a result of this contract, nothing less than Government purpose rights in technical data as defined by DFARS 252.227-7013, DFARS 252.227-7014, and this narrative. Accordingly, irrespective of the source of funds, the contractor grants nothing less than Government purpose rights in all technical data used in the execution of any contract awarded under solicitation W52P1J-17-R-0141, as well as third party contracts under the contract. In clarification, this grant (of nothing less than

Government purpose rights) applies only to the technical data of the contractor; it does not apply to the technical data of the contractor's subcontractors or ARMS tenants, or technical data associated solely with commercial production, with the exception of technical data of a subcontractor(s) or ARMS tenant(s) associated with operation and maintenance of Government property, modifications to Government property, or property title to which will vest in the Government under the provisions of the preceding paragraph. In these instances, the Government will receive no less than Government purpose rights to that technical data. No separate funding will be provided for these rights in technical data. Any costs associated with the rights granted to the Government must be included in the unit prices proposed. Unless otherwise approved in advance by the Contracting Officer, the Government will receive Government purpose rights at that point in time when the technical data is implemented in performance of this contract and/or third party contracts. Where technical data is associated with property acquired/utilized by the contractor under fixed price efforts, Government purpose rights to technical data will be established upon implementation, per this paragraph, regardless of the later (end of contract) transfer of title to the property itself defined in the preceding paragraph. Government purpose rights will convert to unlimited rights according to DFARS

252.227-7013 and DFARS 252.227-7014, or at the end of this contract, whichever occurs earlier. Technical data will be provided to the

Government at the end of the contract performance period in its most current form; i.e., current as of the last date of its use.

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The contractor shall provide access to technical data to the Contracting Officer and representatives designated by the Contracting

Officer during the course of this contract. The contractor shall deliver technical data to the Government at one intermediate point, as well as any new and/or updated technical data, concurrent with competition for a successor contract, as requested by the Government;

technical data delivered will be current as of the date of the Government's request. Form/media for technical data delivery (e.g., electronic, flat file) will facilitate its transfer and use and will be specified by the Contracting Officer at a later date.

*** END OF NARRATIVE H0005 ***

COMMERCIAL UTILIZATION AND CONTRACTOR INVESTMENT IN THE FACILITY________________________________________________________________

(a) The contractor's proposed Commercial Utilization Plan (CUP) and Contractor Investment Plan (CIP), as well as its associated consideration and investment dollars are binding upon contract award. Loss of Blanket Facility Use approval, as provided in accordance with Narrative H0003, Facility Use Requirements, does not relieve the contractor of its CUP and CIP obligations, as outlined in

Attachment 0053, nor does it warrant an adjustment to ammunition matrix prices. Execution of projects by the contractor, without advance

Contracting Officer approval and contract modification, will not be credited toward meeting the contractors CUP and CIP commitments.

(b) Changes to either the CIP or CUP must be agreed to by the Government and implemented via a bilateral modification to the contract.

Resolution of matters upon which mutual agreement cannot be reached will be determined by the Contracting Officer and will not be subject to the Disputes clause. All CIP investment in the facility shall become the property of the Government at the Government's discretion pursuant to PWS 7 - Government Property in Possession of the Contractor, Narrative H0005 -

Ownership of Property, and FAR 52.245-1 - Alternate I, Government Property.

(c) Execution. CUP and CIP consideration amounts will be based on a quantitative method proposed by the offeror based on the

Government's total quantity ordered in the previous year DO.

(1) For a guaranteed minimum plus percent of commercial sales CUP approach, the consideration proposed will consist of a guaranteed minimum investment and a threshold amount (gross commercial sales dollars) at which point a percentage of commercial sales will be applied. Once commercial sales have exceeded the threshold amount, additional consideration will be required based on applying the contractor's proposed percentage of sales investment to all sales beyond the threshold amount. Both the guaranteed minimum and percent of commercial sales consideration will be based on the Government's total quantity ordered and the contractors commercial sales in the previous year DO. Note that commercial sales are counted for CUP investment purposes at the point they are transacted/accepted, not delivered.

Example:

Delivery Order: 03

Annual USG Order: 645M-<918M

Guaranteed Minimum: $3 million

%/Threshold: 5% / $5 million

DO 03 Commercial Sales: $20 million

Delivery Order: 04

Annual USG Order: 645M-<918M

Guaranteed Minimum: $4 million

%/Threshold: 5% / $5 million

DO 04 Commercial Sales: $25 million

Delivery Order: 05

Annual USG Order: 645M-<918M

Guaranteed Minimum: $5 million

%/Threshold: 5% / $5 million

DO 05 Commercial Sales: $30 million

In DO 04, the contractor will be required to invest the guaranteed minimum amount of $3 million from DO 0003 within the current period (i.e., DO 0004), plus the variable amount of $750,000 from DO 03 ($15 million in commercial above threshold x 5% = $750,000).

In DO 05, the contractor will be required to invest the guaranteed minimum amount of $4 million from DO 0004 within the current period (i.e., DO 0005), plus the variable amount of $1 million from DO 04 ($20 million in commercial above threshold x 5% = $1 million).

(2) For a guaranteed minimum plus percentage of commercial sales approach, commencing upon contract award, the contractor shall provide a Commercial Sales Summary Report on a quarterly basis that includes a breakout of all items sold during the quarter, as well as a running total of all commercial items sold within the applicable delivery order. The report shall clearly identify the transaction date, quantity, and price of all commercial items sold. The report shall be submitted within five business days of the end of each

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quarter and shall be fully supported with sales invoices. At the end of each ordering period, the Government will utilize the report to determine the CUP dollars owed to the Government.

(3) For a fixed CUP approach and the fixed CIP investment, the contractors investment amount will be based on the Government's total quantity ordered in the previous year DO.

Example:

Delivery Order: 01

Annual USG Order: 918M-<1.196B

Fixed Amount: $12 million

Delivery Order: 02

Annual USG Order: 918M-<1.196B

Fixed Amount: $10 million

In DO 02, the contractor will be required to invest the fixed amount of $12 million from DO 0001 within the current period (i.e., DO

0002). In DO 03, the contractor will be required to invest the fixed amount of $10 million from DO 0002 within the current period (i.e., DO 0003).

(4) No later than 31 October of each year (beginning 31 October 2020 for investment of DO 01 funds in the period of performance of

DO 02), the contractor is required to submit to the Contracting Officer the planned projects for CUP and CIP for execution in that fiscal year. The planned projects should utilize the full investment required as determined by the prior DOs total quantity ordered and commercial sales (if applicable). If the contractor has requested and been approved to invest in advance of the realization of the quantities ordered by DO, any outstanding CUP and CIP balances required to that date shall also be included in the contractor's list of planned projects.

(5) The planned projects should include a Not-to-Exceed (NTE) price and be accompanied by the substantiated cost (exclusive of any fee) for each project (which will be used to establish an agreed upon NTE price) and a project authorization charter, defining the project in accordance with an agreed upon template. Deliverables shall include, but not be limited to, Standard Operating Procedures, Capital Equipment, etc. Upon agreement between the parties, the Government will issue a bilateral modification(s) authorizing the project(s), the period of performance, and the NTE. No later than 60 days after project close-out, the contractor shall submit its cost data and a modification will be issued to document completion and track the total dollars credited for both CUP and CIP). The list of projects and the agreed upon NTEs are both binding; therefore, if the project costs exceed the NTE, the contractor is contractually bound to complete the project, as defined in the project authorization charter, but will only receive credit toward the total dollar investment for the value (i.e., the NTE) as included in the bilateral modification. If the project costs are below the NTE, the contractor will only receive credit toward the total dollar investment for the incurred costs. If all the projects identified in the contractor's CUP and CIP are executed, but the dollar value has not been exhausted, the contractor, in conjunction with the Government, will determine additional projects to be implemented. Significant changes to the project scope, such as identification of altered baseline conditions, shall be submitted to the Contracting Officer after Government strategic concept approval, with applicable rationale for adjustment to the project period of performance and NTE cost as applicable.

(d) If CIP/CUP investment obligations are not met, the contractor shall ensure excess funds are paid to the treasury or other means as determined by the Contracting Officer.

*** END OF NARRATIVE H0009 ***

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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 0001 PWS 1 - MAINTENANCE 06-DEC-2018 015

Attachment 0007 PWS 7 - GOVERNMENT PROPERTY IN POSSESSION OF THE CONTRACTOR 06-DEC-2018 015

Attachment 0032 FAT PRICE MATRIX - 5.56MM 06-DEC-2018 012

Attachment 0033 FAT PRICE MATRIX - 7.62MM 06-DEC-2018 012

Attachment 0034 FAT PRICE MATRIX - .50 CALIBER 06-DEC-2018 012

Attachment 0035 FAT PRICE MATRIX - .22 CALIBER 06-DEC-2018 012

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