W52P1J-22-R-0009_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 2022JAN21

W52P1J

ARMY CONTRACTING COMMAND - RI

ROCK ISLAND, IL 61299-8000

BLDGS 60 & 62

ALLISON N. HOWELL

EMAIL: ALLISON.N.HOWELL2.CIV@ARMY.MIL

W52P1J-22-R-0009

2021DEC15

X

X 2022FEB11 12:00pm

/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: ALLISON N. HOWELL

Buyer Office Symbol/Telephone Number: CCRI-AC/(309)782-1297

Type of Contract 1: Firm Fixed Price

Kind of Contract: Supply Contracts and Priced Orders

*** End of Narrative A0000 ***

The purpose of Amendment 0001 to Solicitation W52P1J-22-R-0009 is as follows:

1. Extend the closing date from January 26, 2022 12:00 CST to February 11, 2022 at 12:00 CST.

2. Revise EXECUTIVE SUMMARY of Narrative A0001 as follows:

(m) Contact Information: Proposals shall be submitted electronically via DoD Safe to the following:

Contract Specialist, Ms. Allison Howell, allison.n.howell2.civ@army.mil

PCO, Ms. Anna Whitcomb, anna.e.whitcomb2.civ@army.mil

Price Analyst, Mr. Ron Stablein, ronald.e.stablein.civ@army.mil

DCAA, DCAA-FAO4441@dcaa.mil

3. Revise Narrative C0008, STATEMENT OF WORK (SOW) FOR 40MM SYSTEMS FAMILY OF AMMUNITION, paragraph 11, to incorporate updated

Controlled Unclassified Information (CUI) language. Refer to Section C.

4. Incorporate Narrative C0012, STATEMENT OF WORK ENHANCED SECURITY PROTECTIONS FOR CONTRACTOR INFORMATION SYSTEMS. Refer to Section C.

5. Revise FAR Clause 52.217-6, OPTION FOR INCREASED QUANTITY, to incorporate/revise cumulative pricing language. Refer to Section I.

6. Incorporate revised Attachment 0001 - 40MM SYSTEMS PRICE MATRIX, dated 14 January 2022, to add option pricing for Option Period One.

See Section J.

7. All other terms and conditions of Solicitation W52P1J-22-R-0009 remain unchanged and in full force and effect.

*** END OF NARRATIVE A0002 ***

1. NOTICE:

(a) The Technical Data Packages (TDPs) associated with this procurement is classified as Distribution D which means it is limited to the

Department of Defense (DoD) and U.S. DoD Contractors only. Dissemination shall be in accordance with the provisions of DoD directive

5230.25. Violations of export laws are subject to civil and criminal penalties. Distribution of this TDP is only authorized to U.S.

agencies and private individuals or enterprises eligible to obtain export-controlled technical data in accordance with regulations implementing 10 U.S.C. 130. The complete TDPs are available electronically for download. To obtain the Technical Information for this solicitation, AMTEC must request explicit access through SAM.gov "Contracting Opportunities" through the "attachments/links" tab under

Request for Proposal (RFP) W52P1J-22-R-0009. See Section C narrative, TECHNICAL DATA PACKAGE INFORMATION, AND DISTRIBUTION AND

DESTRUCTION OF RESTRICTED TECHNICAL DATA, for further guidance.

(b) Contract C Requirements/Engineering Exceptions are available electronically for download once AMTEC obtains explicit access to

SAM.gov, as noted above. These documents are located within the respective cartridge's TDP.

(c) All contractors who provide goods/services to the DoD must be registered in the System for Award Management (SAM). If a contractor is not registered in SAM, said contractor cannot be awarded a DoD Contract. Refer to Federal Acquisition Regulation (FAR) clause 52.204-

7, System for Award Management, for details regarding registration.

2. EXECUTIVE SUMMARY:

(a) This solicitation is issued on a sole source basis to AMTEC Corporation under the authority of 10 U.S.C. 2304(c)(1), as implemented by Federal Acquisition Regulation (FAR) 6.302-1, Only one responsible source and no other supplies or services will satisfy agency requirements. This solicitation is for the production of the following 40mm Systems Family of Ammunition configurations, which will result in a single Firm Fixed-Price (FFP) contract for a base award of Mixed Belt and M781, and five evaluated option periods to include the following: M430A1-Metal Pallet, M430A1-Wood Pallet, M433, M583A1, M781, M918, Mixed Belt, M385A1, M992, M585, M661, M662, and M433E1

(see FAR 52.217-6, Option for Increased Quantity, in Section I). The option periods reflect the timeframes in which the USG may procure additional cartridges. The USG reserves the right not to exercise options for any reason. Option Periods are as follows:

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W52P1J-22-R-0009

Name of Offeror or Contractor:

PIIN/SIIN MOD/AMD

Option Period One: FY22 (Date of Award - 30 Sep 2022)

Option Period Two: FY23 (01 Oct 2022 - 30 Sep 2023)

Option Period Three: FY24 (01 Oct 2023 - 20 Sep 2024)

Option Period Four: FY25 (01 Oct 2024 - 30 Sep 2025)

Option Period Five: FY26 (01 Oct 2025 - 30 Sep 2026)

(b) In accordance with the terms of the resultant contract, the U.S. Government (USG) may provide Government Furnished Property (see FAR

Clause 52.245-1 in Section I).

(c) AMTEC shall insert all unit prices and First Article Test (FAT) prices for all Contract Line Item Numbers (CLINs) base and option quantities identified in Attachment 0001 Price Matrix. Do NOT use price lines in Section B Schedule. Delivery schedules will be determined at point of award.

(d) Transportation shall be F.O.B. Origin.

(e) The following restrictions apply to this requirement:

- Load, Assemble, and Pack (LAP) of up to 250,000 HV cartridges per month or up to 3,000,000 per year will be restricted to Iowa Army

Ammunition Plant (IAAAP) in order to maintain the production facilities for this critical process in the event of a national emergency.

This is contingent upon availability of adequate funding and acceptable technical/schedule performance by American Ordnance (AO), the operating contractor of IAAAP. However, the PM reserves the right to remove or reduce the restriction if necessary in order to balance

Industrial Base requirements to mitigate readiness risk or prevent single point of failure.

- LAP of LV cartridges will be restricted to the U.S., its outlying areas, or Canada.

- Fuzes and Propellant will be restricted to the U.S., its outlying areas, or Canada.

(f) The items contained in this RFP are determined to be hazardous; therefore a pre-award safety survey will be required, as prescribed in DFARS PGI 223.370-4(1)(iv). Additional preaward survey criteria may also be required.

(g) Prior approval of Contract Data Requirements List (CDRLs), i.e. AIE, SPC, ADC, on other USG contracts does NOT guarantee roll-over approval of CDRLs on award(s) resulting from this solicitation.

(h) Flowdown of Requirements: All CDRL requirements of solicitation W52P1J-22-R-0009 and the resultant contract must be flowed down to and met by subcontractors and vendors at all tiers. These include, but are not limited to: Quality System Plans, Critical

Characteristics Control Plans (CCCPs), Critical Plans of Action (CPOAs), Phosphate Coating Pre-Production Procedures, Engineering Change

Proposals (ECPs), Requests for Variation (RFVs), Contractor Identified Critical Characteristic Listing (CICCLs), Notifications, Investigations, Segregated Material Use and Restart Requests, Performance Oriented Packaging (POP) Testing, Operations Security (OPSEC)

Plans.

(i) AMTEC is responsible for including sufficient details to permit a complete and accurate evaluation of the proposal. The USG will not make assumptions concerning AMTEC's intent, capabilities, facilities or experience. The submission of CLEAR, ACCURATE, and COMPLETE information is the sole responsibility of AMTEC. Please ensure all fill-ins are completed, if applicable. If fill-ins are not applicable, AMTEC shall indicate N/A.

(j) The solicitation includes Economic Price Adjustment (EPA) provisions for steel, aluminum, zinc, tungsten and copper. See Section I, for further details.

(k) The USG requests AMTEC's proposal remains valid for 270 days. AMTEC shall annotate the 270-day validity period in Block 12 of this

RFP.

(l) In the event that a discrepancy between any statements in Narrative A and another section of the RFP exists, the other sections take precedence.

(m) Contact Information: Proposals shall be submitted electronically via DoD Safe to the following:

Contract Specialist, Ms. Allison Howell, allison.n.howell2.civ@army.mil

PCO, Ms. Anna Whitcomb, anna.e.whitcomb2.civ@army.mil

Price Analyst, Mr. Ron Stablein, ronald.e.stablein.civ@army.mil

DCAA, DCAA-FAO4441@dcaa.mil

*** END OF NARRATIVE A0001 ***

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SECTION C - DESCRIPTION/SPECIFICATIONS/WORK STATEMENT

STATEMENT OF WORK (SOW) FOR 40MM SYSTEMS FAMILY OF AMMUNITION

1. SCOPE: The contractor is required to manufacture and deliver 40mm cartridges (see Section B) in accordance with the TDPs provided by the Government as referenced in Section C. The quantities to be manufactured and delivered are those cited in the schedule (Section B) of the contract.

2. APPLICABLE DOCUMENTS: Technical Data Package Lists (TDPLs) shall be in accordance with those listed in Section C of the contract to include any modifications. Unless otherwise specifically noted in the contract, the production shall be in accordance with the applicable specification.

3. REQUIREMENTS:

(a) The contractor shall perform all tasks necessary to ensure the manufacture and delivery of 40mm cartridges in accordance with the TDPs referenced in Section C of this document. These tasks include, but are not limited to, the following activities:

- Planning and scheduling production;

- Procurement or production of components;

- Conducting engineering assessments of test data;

- Conducting engineering assessments of the hardware and production processes necessary to ensure production on schedule;

- Selection of appropriate combinations of component dimensions and of the production processes to ensure that

TDP/Specification requirements are met;

- Testing of components and assemblies for verification of performance levels;

- Monitoring of subcontractors to assure they are meeting TDP/Specification requirements;

- Management of a product assurance quality system as defined in Sections C and E; and

- Resolution of any manufacturing or quality issues encountered during the performance of this contract.

Performance of these minimum tasks shall not be construed as relieving the contractor of the responsibilities under the terms and conditions of the contract to furnish the Government with items fully in conformance with the requirements of the product drawings, Quality Assurance Provisions (QAPs), and specifications.

(b) The contractor should not assume, nor does the Government guarantee, that all possible combinations permitted by the tolerance limits of the specifications and drawings will consistently satisfy the requirements. Individual items within the TDP may not all be made to the limits of the tolerance bands as it may prevent proper assembly or performance. Therefore, the contractor is obligated to choose those combinations of tolerances and fits within the limits of the TDP and drawings that best suit its process needs and still satisfy all requirements.

(c) The Government reserves the right to obtain the necessary data required to adequately make a decision regarding the acceptability of cartridges/components and/or whether contractual requirements are being met. This may include proprietary data; such data will be protected by the Government and only be provided on a "need-to-know" basis. The PCO may request in writing, at no additional cost to the Government, the following types of data:

- Certified material test reports;

- Incoming inspection reports;

- First Article reports;

- Rework procedures;

- Production Process control documents/Work instructions;

- Process control data/plans;

- Quality system plans;

- Critical defects plans; and

- Raw data from component ballistic tests.

The PCO reserves the right to require submission of other types of data as required. Requests for documentation in no way waive any rights of the Government under the Inspection Clause, 52.246-2 or obligations of the Contractor under the Warranty Clause, 52.246-17.

(d) The contractor shall perform configuration management in accordance with the provisions and clauses pertaining to Engineering

Change Proposals (ECPs), Value Engineering Change Proposals (VECPs), Notices of Revision (NORs), and Requests for Variance (RFVs).

Submission of all these documents shall address ozone-depleting chemicals (ODCs), as required by Public Law 102-484, Section 326.

(e) The contractor shall maintain a Quality System in compliance with ISO 9001-2008, or equivalent. Supplements to the Quality

System requirements are contained elsewhere in this contract. MIL-STD-1916 describes DoD's preferred test methods for product acceptance. (In this SOW and contract, references to the Quality Assurance Representative (QAR) are intended to mean the prime contractor's QAR.) The Contractor's QAR may delegate any responsibilities to a subcontractor's QAR as deemed appropriate.

(f) The contractor shall include in its Quality System Plan (QSP) provisions for audits of suppliers to verify compliance to

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process controls and contract quality requirement. Results of such audits shall be made available to the Government, upon request. As a part of the QSP, the contractor shall identify the key characteristics and key processes that affect safety and performance. The contractor shall also identify how it is intended to control these processes and characteristics and what corrective action(s) will be taken when these processes and characteristics fall below established threshold levels identified in the QSP. The contractor shall provide a copy of the key characteristics to the PCO annually. Any deletions to the key characteristics list shall be provided as they occur, along with supporting data and rationale for the change.

(g) First Article Test (FAT) requirements apply to ALL 40mm family items as called out in the respective TDPLs. Contractor should not assume it is "qualified" or "approved" or that pre-production or subsequent FAT requirements will be waived. However, the contractor may submit requests for FAT waiver to the PCO for consideration. The request shall include the prior contract number, respective specification, and verification that the applicable component has not been out of production in excess of ninety (90) days.

(h) Acceptance Inspection Equipment (AIE), inclusive of Automated Acceptance Inspection Equipment (AAIE) is required for all items as called out in the respective TDPLs. Contractor should not assume it is "qualified" or "approved" by the Government, or that approvals from other contracts will be rolled over. However, the contractor may submit a request to roll over AIE (inclusive of AAIE) approval to the PCO for consideration. The request shall include the prior contract number, the previously approved AIE (AAIE) documentation, and

Contracting Officer's letter of approval with applicable enclosed Evaluation of Acceptance Inspection Equipment Designs (EAIED).

(i) With regard to narrative clause CRITICAL CHARACTERISTICS (SIX SIGMA), in Section E, AMTEC is provided the following clarification relative to the terms "generating" and "critical non-conformance escape":

- Paragraph (b) 'generating':

The manufacturing process has 'generated' a critical defect whenever a critical defect is discovered, regardless of where in the manufacturing process it is discovered.

- Paragraph (c) 'critical non-conformance escape':

A 'critical non-conformance escape' has occurred any time a critical non-conformance is discovered at any point in the manufacturing process after the designated inspection point for that defect, regardless of whether or not the defective unit has physically left the manufacturing facility.

4. PROGRAM MANAGEMENT REVIEWS (PMRs): PMRs shall be held as often as quarterly with the location and time to be established by the PCO.

Responsible and cognizant contractor personnel shall attend these reviews to provide cognizant Government personnel with a status update, accomplishments during the previous period, and a review of any technical and administrative issues associated with the program.

The contractor is encouraged to have partners/vendors/subcontractors (as applicable) participate in the PMRs, and the Government may request their participation to address specific issues. Accomodations must be made for virtual participants.

5. CONSIDERATION FOR REVISED DELIVERY SCHEDULES: The contractor is responsible for meeting the delivery schedules defined in the contract. Pursuant to FAR 52.249-8 "Default (Fixed-Price Supply and Service)" as contained within this contract, unexcused failure to deliver supplies within the time specified in this contract or any extension constitutes default. In the event of contractor default, or anticipatory default, with respect to delivery schedules, the Government may, at the PCO's discretion, revise the delivery schedule and, as a result, seek consideration from the contractor for the change.

6. PRODUCTION PROGRESS REPORTS: Production Progress Reports are required, and shall be submitted in contractor MS Excel format (the format to be approved by the PCO). These reports shall be submitted monthly, and shall include (but not be limited to) the following information: PRON, CLIN, ship to location, ACRN, TAC, MILSTRIP, delivery date, quantity required, unit price, extended total, DD250 number, quantity shipped and balance due. These data elements, at a minimum, shall each be included in a separate cell within the row for a given record in the Excel file.

The contractor shall also report any delay in the scheduled delivery or completion as soon as known or anticipated.

Production Progress Reports shall be distributed electronically to the following, at a minimum:

1. Procuring Contracting Officer and Contract Specialist

2. Defense Contract Management Agency (DCMA)

3. JMC Production Manager.

7. GOVERNMENT FURNISHED PROPERTY:

(a) Pursuant to the Government Property clause in Section I of this contract, the Government shall furnish F.O.B. contractor's place of performance, the Government-owned property listed below for use in the performance of this contract.

Government Furnished Material (GFM):

Calibration Rounds, NSN 1310-01-624-2826

CH-6 Explosive, NSN 1376-00-787-7614

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(b) The GFM shall be delivered no later than thirty (30) days prior to the contractor's required delivery schedule.

(c) If the GFM is not received in accordance with the schedule set forth above, the Contractor shall immediately notify the

Contracting Officer in writing. If the GFM is to be sent to a location other than the directed Load, Assemble and Pack (LAP) facility, notification should be provided within ten (10) days of award of the requiring respective cartridges.

(d) As stated in 7(a), above, the Government is furnishing CH-6 explosive to the contractor for use in performance of this contract.

Notwithstanding any other clause or provision hereof, the CH-6 is being furnished as-is to the contractor, delivered FOB destination to the directed LAP facility. The Government makes no warranties or guaranties of suitability of the material for a particular purpose. The

Government further makes no representation that the material meets the specifications and requirements of the contract. Therefore it is incumbent upon the contractor to inspect the material and assure compliance with contract requirements prior to use. If any discrepancies are noted, the contractor shall notify the PCO. Should there be any quantity of CH-6 unused or remaining upon completion of the contract, the contractor shall be responsible for demilitarization (demil) and disposal of any such remaining quantity at no additional cost to the Government. The demil of any such remaining quantity shall be accomplished in accordance with any procedures or requirements set forth or incorporated into the contract. The contractor will report at closeout of the contract the total amount used, and shall provide a certification that the remaining amount has been demilitarized. The contractor agrees to hold harmless and indemnify the Government, except in a case of willful misconduct or gross negligence, from any claim for damages or injury, including wrongful death claims, to any person or property arising out of the furnishing of the CH-6.

8. DISPOSAL OF REMAINING GFM AMMUNITION AND EXPLOSIVES FOLLOWING CONTRACT COMPLETION OR TERMINATION: The following requirements apply to Government-Furnished Material (GFM) Ammunition and Explosives (A&E). All A&E are potentially hazardous and tend toward less stability with the passage of time. In particular, A&E containing nitrocellulose based components (such as propellants) or nitrate ester-based components (such as nitroglycerine) loses stability with time.

(a) Within 30 days of completion or termination of the contract, the contractor shall request disposition instructions from the contracting officer for any residual GFM A&E, regardless of condition. The condition of all such GFM A&E, identified by contract number, and NSN or part number, will be indicated in the request. The contracting officer shall provide disposition instructions to the contractor within 90 days of the request.

(b) If the contractor has the capability to dispose of these materials at its facility and is instructed to dispose of the materials through disposition instructions, the contractor shall provide notification to the contracting officer of the destruction of the materials. The notification shall include the contract number, NSN or part number, lot number, nomenclature, and quantity or weight of materials destroyed, and the date of destruction.

(c) The contractor shall manage (to include the treatment, storage and disposal of) all GFM A&E in accordance with all applicable state and federal regulations.

9. LOAD, ASSEMBLE, AND PACK (LAP) OF HIGH VELOCITY (HV) CARTRIDGES.

(a) As set forth in Section H of this solicitation, LAP shall be performed at Iowa Army Ammunition Plant (IAAAP) for HV cartridges, for the quantity up to and including 250,000 per month/3 million per year, provided the funding and requirements exist. This requirement is a monthly requirement, intended to facilitate level production. Contract delivery schedules will reflect level production rates for

HV cartridges to the maximum extent possible. Should a month's requirements fall short of 250,000, the shortfall is expected to be made up in subsequent months, so that the funding year total produced is 3 million rounds, provided the funds and requirements exist.

Requests to accelerate HV deliveries in such a manner that does not provide for level monthly production will not be considered.

Any HV cartridge LAP needed above the 250,000 per month/3 million per year ("excess HV quantities") may be obtained from IAAAP or from other sources within the National Technology and Industrial Base (NTIB). Where a contractor elects to use another NTIB source

("alternate LAP facility") for LAP of any excess HV quantities, the cost for all FAT(s) at the alternate LAP facility shall be borne by the contractor. For proposal and contract commitment purposes, the 40mm cartridges included in the quantity of 250,000 per month/3 million per year commitment are the following HV items: M430A1, M385A1, M918, and Mixed Belt (Ratio of 22:10 M918 to M385A1).

(b) During contract performance, if the contractor intends to terminate, in full or in part, any portion of the directed workload to IAAAP, then it must notify the Government 30 days in advance of any potential termination. The notification should identify the cause of the termination as well as the quantifiable impacts and when these impacts will begin. The contractor must also provide the rationale and actions taken to date to mitigate the situation. If the termination is the result of a delinquent quantity, the contractor must identify the delinquent quantity by cartridge type and month and provide a copy of the agreed-to delivery schedule with the LAP contractor.

10. ANTI-TERRORISM (AT) LEVEL I TRAINING REQUIREMENT: All contractor employees, to include subcontractor employees, requiring access to

Army installations, facilities and controlled access areas shall complete Anti-Terrorism (AT) Level I awareness training within 30 calendar days after contract start date. The contractor shall submit certificates of completion for each affected contractor employee

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and subcontractor employee, to the contracting officer, within 30 calendar days after completion of training by all employees and subcontractor personnel. AT Level I awareness training is available at the following website: http://jko/jten/mil .

11. SECURITY

(a) Access And General Protection/Security Policy And Procedures: Where Contractor/Subcontractor employees have an area of performance within an Army controlled installation, facility, or area, Contractor and all associated subcontractor employees shall provide all information required for background checks to meet installation access requirements to be accomplished by installation

Provost Marshal Office, Director of Emergency Services or Security Office. Contractor workforce must comply with all personal identity verification requirements (FAR clause 52.204-9, Personal Identity Verification of Contractor Personnel) as directed by DOD, HQDA and/or local policy. In addition to the changes otherwise authorized by the changes clause of this contract, should the Force Protection

Condition (FPCON) at any individual facility or installation change, the Government may require changes in contractor security matters or processes.

(b) For contractors that do not require CAC, but require access to a DoD facility or installation: Contractor and all associated subcontractors employees shall comply with adjudication standards and procedures using the National Crime Information Center Interstate

Identification Index (NCIC-III) and Terrorist Screening Database (TSDB)(Army Directive 2014-05/AR 190-13), applicable installation, facility and area commander installation/facility access and local security policies and procedures (provided by government representative), or, at OCONUS locations, in accordance with status of forces agreements and other theater regulations.

(c) Controlled Unclassified Information (CUI): Contractor employees that will require access to CUI will follow all DoD (DoDI

5200.48) and Army policies regarding access to CUI, and the handling, storage, transmission, and destruction of CUI. Contractor employees are required to complete initial CUI training (available at https://securityhub.usalearning.gov/index.html ) within 30 days of start of performance on the contract, and then annually thereafter. All CUI must be transmitted via encrypted channels such as the

DoD Safe Access File Exchange (SAFE) website (https://safe.apps.mil/ ).

12. OPSEC TRAINING. Per AR 530-1 Operations Security, the contractor employees must complete Level I OPSEC Awareness training. New employees must be trained within 30 calendar days of their reporting for duty and annually thereafter.

*** END OF NARRATIVE C0008 ***

STATEMENT OF WORK ENHANCED SECURITY PROTECTIONS FOR CONTRACTOR INFORMATION SYSTEMS

1. System Security Plan and Plans of Action and Milestones (SSP/POAM) Reviews

(a) Within thirty (30) days of contract award, unless otherwise notified by the Government, the Contractor shall make its System

Security Plan(s) (SSP(s)) for its covered contractor information system(s) available for review by the Government at the Contractor's facility. The SSP(s) shall describe how the National Institute of Standards and Technology (NIST) Special Publication (SP) 800-171 security requirements are implemented as required by Defense Federal Acquisition Regulation Supplement (DFARS) clause 252.204-7012, which is included in this contract, and identify all applicable Commercial and Government Entity Code codes affected. The Contractor shall fully cooperate in the Government's review of the SSPs at the Contractor's facility.

(b) If the Government determines that the SSP(s) does not adequately describe how the NIST SP 800-171 security requirements are implemented, then the Government shall notify the Contractor of each identified deficiency. The Contractor shall correct any identified deficiencies within thirty (30) days of notification by the Government. The contracting officer may provide for a correction period longer than thirty (30) days and, in such a case, may require the Contractor to submit a Plan of Action and Milestones (POAM) for the correction of the identified deficiencies. The Contractor shall immediately notify the contracting officer of any failure or anticipated failure to meet a milestone in such a POAM.

(c) Upon conclusion of the correction period, the Government may conduct a follow-on review of the SSP(s) at the Contractor's facilities. The Government may continue to conduct follow-on reviews until the Government determines that the Contractor has corrected all identified deficiencies in the SSP(s).

(d) The Government may, in its sole discretion or in response to a cyber incident, conduct subsequent reviews at the Contractor's site to verify the information in the SSP(s). The Government may conduct reviews at any time upon thirty (30) days' notice to the

Contractor.

2. Compliance to NIST SP 800-171

(a) The Contractor shall fully implement the Controlled Unclassified Information (CUI) Security Requirements (Requirements) in NIST

SP 800-171 in effect at the time the solicitation is issued or as authorized by the Contracting Officer, or establish a SSP(s) and

POAMs) that varies from NIST SP 800-171 only in accordance with DFARS clause 252.204-7012(b)(2), for all covered contractor information systems affecting this contract.

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(b) Notwithstanding the allowance for such variation, the Contractor shall identify in any SSP and POAM their plans to implement the following, at a minimum:

(1) Implement Requirement 3.5.3 (Multi-factor authentication). This means that multi-factor authentication is required for all users, privileged and unprivileged accounts that log into a network. In other words, any system that is not standalone should be required to utilize acceptable multi-factor authentication. For legacy systems and systems that cannot support this requirement, a combination of physical and logical protections acceptable to the Government may be substituted;

(2) Implement Requirement 3.1.5 (least privilege) and associated Requirements, and identify practices that the Contractor implements to restrict the unnecessary sharing with, or flow of, covered defense information to its subcontractors, suppliers, or vendors based on need-to-know principles;

(3) Implement Requirement 3.1.12 (monitoring and control remote access sessions)-Require monitoring and controlling of remote access sessions and include mechanisms to audit the sessions and methods;

(4) Audit user privileges on at least an annual basis;

(5) Implement Requirement 3.13.11 (Federal Information Processing Standards (FIPS) 140-2 validated cryptology or implementation of National Security Agency- or NIST-approved algorithms (i.e., FIPS 140-2 Annex A: Advanced Encryption Standard (AES) Or

Triple Data Encryption Standard (DES) or compensating controls as documented in a SSP and POAM));

(6) Implement Requirement 3.13.16 (Protect the confidentiality of CUI at rest) or provide a POAM for implementation which can be evaluated by the Government Program Manager for risk to the program;

(7) Implement Requirement 3.1.19 (encrypt CUI on mobile devices) or provide a plan of action for implementation which can be evaluated by the Government Program Manager for risk to the program.

3. Cyber Incident Response:

(a) The Contractor shall, within fifteen (15) days of discovering the cyber incident (inclusive of the 72-hour reporting period in

DFARS clause 252.204-7012 ), deliver all data used in performance of the contract that the Contractor determines is impacted by the incident and begin assessment of potential warfighter/program impact. Incident data shall be delivered in accordance with the Department of Defense Cyber Crimes Center (DC3) Instructions for Submitting Media available at http://www.acq.osd.mil/dpap/dars/pgi/docs/lnstructions_for_Submitting_Media.docx . In delivery of the incident data, the Contractor shall, to the extent practical, remove contractor-owned information from Government covered defense information.

(b) If the Contractor subsequently identifies any such data not previously delivered to DC3, then the Contractor shall immediately notify the contracting officer in writing and shall deliver the incident data within ten (10) days of identification. In such a case, the Contractor may request a delivery date later than ten (10) days after identification. The contracting officer will approve or disapprove the request after coordination with DC3.

4. Army Counterintelligence (Cl) Outreach

The Contractor shall engage, whenever practicable, with Army Cl industry outreach efforts and consider recommendations for hardening of covered contractor information systems affecting Army programs and technologies; and make Contractor personnel available for threat briefings specific to foreign intelligence threats to Army programs and technologies.

5. Army Cl/Industry Monitoring

(a) In the event of a cyber incident or at any time the Government has indication of a vulnerability or potential vulnerability, the Contractor shall cooperate with the Army Cl, which may include cooperation related to: threat indicators; pre-determined incident information derived from the Contractor's infrastructure systems; and the continuous provision of all Contractor, subcontractor, or vendor logs that show network activity, including any additional logs the Contractor, subcontractor or vendor agrees to initiate as a result of the cyber incident or notice of actual or potential vulnerability.

(b) If the Government determines that the collection of all logs does not adequately protect its interests, the Contractor will coordinate with Army Cl to implement additional measures, which may include allowing the installation of an appropriate network device that is owned and maintained by the Army Cl, on the Contractor's information systems or information technology assets. The specific details (e.g., type of device, type of data gathered, monitoring period) regarding the installation of an Army Cl network device shall be the subject of a separate agreement negotiated between Army Cl and the Contractor. In the alternative, the Contractor may install network sensor capabilities or a network monitoring service, either of which must be reviewed for acceptability by Army Cl. Use of this alternative approach shall also be the subject of a separate agreement negotiated between Army Cl and the Contractor.

(c) In all cases, the collection or provision of data and any activities associated with this statement of work shall be in accordance with federal, state, and non-US law.

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*** END OF NARRATIVE C0012 ***

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SECTION I - CONTRACT CLAUSES

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

I-1 CHANGED 52.217-6 OPTION FOR INCREASED QUANTITY MAR/1989

(a) Exercising Options:

(1) The Government reserves the right to increase the quantity of any or all items by a quantity of up to and including the maximum quantity found in the Pricing Matrix (Attachment 0001) as an evaluated option at the price(s) found in the Pricing Matrix (Attachment

0001).

(2) The Contracting Officer may exercise the evaluated option at any time, by giving written notice to the Contractor thirty (30) days prior to exercising each option, within each option validity period. Validity periods are defined as follows:

Option Period One: FY22 (Date of Award - 30 Sep 2022)

Option Period Two: FY23 (01 Oct 2022 - 30 Sep 2023)

Option Period Three: FY24 (01 Oct 2023 - 20 Sep 2024)

Option Period Four: FY25 (01 Oct 2024 30 - Sep 2025)

Option Period Five: FY26 (01 Oct 2025 30 - Sep 2026)

Offeror is advised that circumstances may require award and/or delivery of more than one option quantity during either the base or any option period. The Government may require the contractor to provide any quantity of cartridges, both identified as base and option cartridges, in any combination, so long as the total contract value, including options, does not exceed $826,812,797.40.

(3) Subject to the limitations contained in this clause, the Government may exercise this option on one or more occasions, and may exercise any portions of any options at the time of award. NOTE: Exercising an evaluated option is ALWAYS at the Government's discretion. No guarantee with regard to exercise of option quantities is explicitly, or implicitly, implied.

(b) Option Pricing:

(1) Offered unit prices for the base and option quantities will be submitted on the Pricing Matrix in Excel format, included as

Attachment 0001. Contractor's final Pricing Matrix will become an Attachment to the contract.

(2) Option prices may be adjusted in accordance with Section H Narrative H0005 - Economic Price Adjustment (Steel, Aluminum, Zinc, Tungsten and Copper). The Government reserves the right to unilaterally exercise options in the event an EPA is not requested by the contractor within 20 days of its receipt of the Governments intent to award an option, pursuant to the Section H Narrative H0005.

(3) Cumulative Option Pricing will be utilized in all option periods. If additional requirements for the same cartridge(s) for which a base quantity or option has been previously exercised within the past 60 days, any new exercised option quantities will be exercised at the unit price in the range for the total of the previous quantity plus the new exercised option quantity. In the event this cumulative pricing changes the price range of the previously awarded quantity for that cartridge, the price of the previously awarded quantity will be adjusted accordingly. This cumulative pricing will be applied only one time within the 60-day period and will be executed by modification.

The following is an example of how this cumulative pricing clause is expected to work:

An award is made or an option is exercised on 15 January 2022 for 10,000 Cartridge "A" at a price of $1.00 per cartridge.

Cartridge "A" Option Range as Follows:

1 January 2022 through 31 December 2022

Range Quantities: Unit Price:

5,000 - 10,000 $1.00 Each

10,001 - 20,000 $.80 Each

20,001 - 30,000 $.60 Each

On 1 February 2022, a letter of intent is sent to exercise a new option quantity of 15,000 of Cartridge "A". The total of the January and February awards/options is 25,000 each of Cartridge "A". In this case, both the January and February awards/options would be priced at $.60 each as the total for both options falls in the 20,001 - 30,000 range. The February option would be exercised at $.60 each and a modification would be executed reducing the January award/option unit price from $1.00 each to $.60 each.

**NOTE: ESTIMATED QUANTITIES FOR ALL OUT YEARS ARE NOT GUARANTEED AND ARE UNFUNDED UNTIL AWARDED.

(c) Option Deliveries:

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(1) The Government will make the decision, at time of an option award, whether a First Article Test (FAT) is required.

(2) For the first award of a cartridge, delivery shall begin no later than 365 days after award if a FAT is not required or 455 days if a FAT is required. In the case where a FAT is required, the delivery of the FAT report is required no later than 365 days after award.

Production schedules will be as agreed between the Government and contractor, with completion due within 360 days after first delivery.

(3) For additional awards of the same cartridge, initial deliveries will begin no later than 270 days after award if a FAT is not required or 360 days if a FAT is required. In the case where a FAT is required, the delivery of the FAT report is required no later than

270 days after award. If production deliveries are currently in process for a given cartridge, deliveries for the option quantity will follow the current production at the same rate of delivery, or as otherwise agreed between the Government and contractor. Where production is not currently in process for a given cartridge, production schedules will be as agreed between the Government and contractor, with completion due within 360 days after first delivery.

(End of Clause)

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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 40MM SYSTEMS PRICE MATRIX 14-JAN-2022 001

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