DRAFT_Section_H.docx

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Draft Section H - Special contract requirements.

H.1. Ordering Information. This contract is a Requirements contract in accordance with FAR 52.216-21 “Requirements”. The acquisition of the supplies and services under this requirements contract will be executed by issuing Delivery Orders. All FMTV vehicle requirements (within the ordering years referenced below in H.2) processed through the TACOM FMTV Program Management Office will be purchased under this contract.

H.2. Effective Period The effective period of this requirements contract include five ordering years and two option years (see H.3 below) which are defined as follows:

H.3. Ordering Year Options.

The Government may unilaterally extend the term of the contract to include up to two additional ordering years. The Government may exercise these options no later than 30 days before the end of the last performing ordering year of the contract and in accordance with FAR 52.217-9 “Option to Extend the Term of the Contract”. Note that these are ordering years, therefore deliveries or performance may continue beyond the seven years.

H.3.1. If the Government extends the term of the contract, the effective period of the contract is extended as follows:

H.3.1.1. Ordering Year 06 (i.e. Option Period One): 1,825 days after contract award through 2,189 days after contract award.

H.3.1.2. Ordering Year 07 (i.e. Option Period Two): 2,190 days after contract award through 2,554 days after contract award.

H.3.2. If the Government extends the term of the contract, prices for the supplies or services shall be determined by the option period in which the supplies or services are procured in accordance with Attachment 0042, “Contract Prices”.

H.4. FMS Requirements. The U.S. Government may issue delivery orders against this contract to fulfill Foreign Military Sales commitments undertaken by the U.S. Government on behalf of a foreign country.

H.5. Supplies: Unless specifically stated, supplies described in this section are Firm Fixed Priced. The Government will establish the fixed unit prices for the supplies in each order based on the date of Delivery Order award and not the date of delivery for the supply(s). The firm fixed unit price will be based on the quantity range of each particular model in a delivery order issued in a specific ordering year as listed in Attachment 0042 “Contract Prices” (e.g. if vehicle orders are made in the second ordering year and delivered in the third ordering year, the Government will use the second ordering year prices).

H.5.1. Quantity Range Price Reduction: Downward Adjustment Calculation: The cumulative number of supplies ordered during individual Ordering Years (See H.2 above) may result in a more favorably priced quantity RANGE (see Attachment 0042 “Contract Prices”). If this occurs, the Government has the unilateral right to downwardly adjust the unit price of previously ordered supplies made during the same Ordering Year. The downward adjustment will be calculated by subtracting the unit price used for previously ordered supplies within the Ordering Year from the unit price of the cumulative number of the same supplies ordered. This difference will be de-obligated from the unit price of all previously exercised supply SubCLINs.

H.5.2. Vehicles. By written notification to the Contractor, the Government has the right to unilaterally order vehicles on a firm fixed price basis in any ordering year and in any configuration listed in C.2.3 or combination thereof, and subject to the delivery requirements listed in Paragraph H.5.5. Vehicle prices will be ordered in accordance with the Attachment 0042, “Contract Prices”. Vehicle prices will be based on the ordering year that the vehicle is ordered and not the period of delivery.

H.5.2.1. Installed Kits. As described in C.2.3.3.2 and C.2.3.3.3, the following kits may be installed on the vehicle as additional configuration options: Artic Kits, Underbody Kits, RST Kits, RSV Kits, Weapon Station Transfer Kits, Alternate Paint Requirement (any of the following: green color 383 (Chip number 34094, FED STD 595), sandstone brown (Chip number 33531, FED-STD-595), or sand color (Chip 30372, FED- STD 595)), the application of Corrosion Prevention Compound (CPC), B-Kit (Supplemental Armor Kits), M1114 Gun Ring, and OGPK.

H.5.2.1.1. The Government will order the installation of the kit at the time of vehicle order. The unit price will be determined by the following equation: Base Vehicle unit price in applicable ordering year plus installed kit(s) unit price(s) in the applicable ordering year. Unit prices will be determined in accordance with the Attachment 0042, “Contract Prices”. Prices will be based on the ordering year that the kit is ordered and not the period of delivery.

H.5.2.2For CPC, the Government may order this application at the time of vehicle order, or at least 60 days in advance of the contract schedule delivery date. However, the Government reserves the right order CPC application on vehicles which remain on the Contractors premises after acceptance, provided notification is made by contract modification, not later than 30 days prior to shipment. Unit prices will be determined in accordance with the Attachment 0042, “Contract Prices”. Prices will be based on the ordering year that the kit is ordered and not the period of delivery.

H.5.2.3 Delivery Requirements: Whenever possible, the Government will provide the Contractor thirty (30) business days to review the vehicle quantities by variant for a proposed Delivery Order and to propose a delivery schedule for those vehicles. The notification will be in writing from the PCO. In the event that the Contractor cannot provide a delivery schedule in that timeframe and the Government needs to make an award, the Government will establish the delivery schedule for those vehicles. Monthly deliveries will not exceed the maximum monthly rate of 150 trucks and 10 trailers and deliveries will not start earlier than 10 months after award and end no later than 22 months after award, unless mutually agreed upon by the parties.

H.5.3. Packaged Kits: As described in C.2.3.3.2, Arctic Kits, Underbody Kits, and Weapon Station Transfer Kits, may also be ordered as separately packaged and delivered instead of installed on the vehicle. By written notification to the Contractor, the Government has the right to unilaterally order packaged kits on a firm fixed price basis in any ordering year and in any configuration listed in C.2.3 or combination thereof, and subject to the delivery requirements listed in Paragraph H.5.3.1 Packaged kit prices will be ordered in accordance with the Attachment 0042, “Contract Prices”. Packaged kit prices will be based on the ordering year that the kit is ordered and not the period of delivery.

H.5.3.1 Delivery Requirements: Delivery of the Packaged kits shall start no later than 10 months after award and end no later than 22 months after award.

H.6. Program Support and Logistics Support. Funding that is applied to this contract for Program Support, Logistic Program Support, Integrated Product Support, and Logistics Test Support as described in C.3 and C.6 will be added at time of the first Delivery Order of each Ordering Year on a firm fixed price basis, if supplies or services are ordered, and may also be extended up until the final required vehicle or packaged kits delivery. Funding will be added for a 12-month period. The contractor will invoice this line item on no more than on a monthly incremental basis.

H.7. Test Support. Test support may include CFAT, FPVI, PVT, OT, or LFT and consists of the scope described in E.2.11, E.2.13, E.3, E.4, E.5 and E.6. By written notification to the contractor, the Government has the right to unilaterally place orders for lots of Test Support on a firm fixed price basis. Test Support orders will be exercised in accordance with Attachment 0042, “Contract Prices”. The Contractor shall provide Test Support in accordance with Attachment 0042, “Contract Prices”. Test Support lot orders will be exercised in yearly increments.

H.8. Technical Data Package Purchase Option. As described in C.2.5 and C.2.6, the Government reserves the right to unilaterally order the TDP on a firm fixed price basis. The TDP option will be exercised in accordance with Attachment 0042, “Contract Prices”.

H.9. Services: Unless specifically stated, services for STS (see C.4-C.4.4), MTR (see C.4.5), and TFP (see C.7) under this contract are CPFF. This contract provides options to exercise hours or mandays, as described in H.9.1 below, for STS, MTR and TPF over the contract term (see H.2), including Ordering Year 06 and 07, if exercised. The Government is not obligated to exercise all of these hours and mandays, and if exercised, can be exercised in one or more increments. The current balance of available hours under this contract is set forth in Section H.9.6 below. These services will be procured under this contract in accordance with this Section H.9.

H.9.1. The Government may exercise options for up to:

424,000 man-hours of STS, 6,000 mandays of CONUS MTR support, 4,200 mandays of OCONUS* MTR support and, 450,325 man-hours of TPF

* The location for OCONUS MTR support may be either 1) SWA or 2) other than SWA. When used in this contract, SWA consists of Kuwait, Iraq & Afghanistan.

H.9.2. All STS, MTR and TPF efforts shall be performed in accordance with Work Directive(s) (WDs) issued by the PCO in accordance with Clause 52.242-4011, “Work Directives”, and Section C.4-C.4.4, C.4.5 and C.7 of this contract. Hours will be exercised for WD(s), which can be either Term (Level-of-Effort (LOE)) or Completion. The Government will bilaterally exercise Term and Completion WD(s) based on Basis of Estimate (BOE) data submitted in accordance with H.9.4.

H.9.2.1. Term (or LOE) describes the work in general terms and obligates the contractor to devote a specified level of effort for a stated time period. At its discretion, the Government may exercise additional LOE hours to complete the effort. The contractor is not authorized to incur effort in excess of the specified LOE hours and total cost. Any costs incurred for excess effort are unallowable.

H.9.2.2. Completion Scope describes a WD that states a definite goal or target and specifies an end product. Completion Scope requires the contractor to complete and deliver the specified end product (e.g., a final report of research accomplishing the goal or target) regardless of the number of hours awarded or performed. In the event the contractor cannot complete the scope within the estimated cost, the Government may require more effort without increase in fixed fee, provided that the Government increases the estimated cost.

H.9.3. The individual WD will define if it is a term or completion effort. STS, MTR and TPF options will be exercised in accordance Attachment 0042, “Contract Prices”. Option prices will be based on the period that the option is exercised and not the period of completion.

H.9.4. Prior to award of the WD(s), the contractor will review the draft WD provided by the PCO and shall submit a BOE for each WD within 10 business days of receipt of the draft WD of the estimated cost of the work directive. The estimated cost for each WD shall consist of: 1) Number of Labor Hours or Mandays utilizing rates established in Attachment 0042 “Contract Prices”; 2) Material, if applicable; and 3) ODCs, if applicable. Material and ODCs shall be proposed on a cost only basis. Pricing of each WD shall be determined using a Government technical review of the contractor’s BOE for quantity of hours, material and ODCs.

H.9.5. The Contractor is not authorized to begin work on any WD until the Government PCO executes a contract modification or provides written approval of a WD.

H.9.6. BALANCE OF AVAILABLE HOURS OR MANDAYS (LOE AND COMPLETION): Each Delivery Order which exercises STS hours, TPF hours or MTR mandays will include the following language, as applicable, to track the balance of available hours or mandays.

H.9.6.1. BALANCE OF AVAILABLE HOURS – STS: At base contract award, 424,000 man-hours of STS hours are available for exercise during the contract term as described in H.9.1 of the base contract. Delivery Order ____, Modification ___ exercises ___ hours. As a result of Delivery Order ___ Modification ___, the current Balance of Available Hours is decreased from ____ to _____.

H.9.6.2. BALANCE OF AVAILABLE MANDAYS – MTR CONUS: At base contract award, 6,000 mandays of CONUS MTR support are available for exercise during the contract term as described in H.9.1 of the base contract. Delivery Order ____, Modification ___ exercises ___ mandays. As a result of Delivery Order ___ Modification ___, the current Balance of Available Mandays is decreased from ____ to _____.

H.9.6.3. BALANCE OF AVAILABLE MANDAYS – MTR OCONUS: At base contract award, 4,200 mandays of OCONUS* MTR support are available for exercise during the contract term as described in H.9.1 of the base contract. Delivery Order ____, Modification ___ exercises ___ mandays. As a result of Delivery Order ___ Modification ___, the current Balance of Available Mandays is decreased from ____ to _____.

H.9.6.4. BALANCE OF AVAILABLE HOURS – TPF: At base contract award, 450,325 man-hours of TPF hours are available for exercise during the contract term as described in H.9.1 of the base contract. Delivery Order ____, Modification ___ exercises ___ hours. As a result of Delivery Order ___ Modification ___, the current Balance of Available Hours is decreased from ____ to _____.

H.9.7. PAYMENT OF COST AND FIXED FEE

H.9.7.1. Each funded CLIN shall be defined as a Term/ LOE or a completion effort. Each WD awarded will have its own CLIN.

H.9.7.2. The estimated cost for the performance of work under this contract is established in Section B at the four-digit CLIN level. The contract clause FAR 52.232-20 (LIMITATION OF COST) applies to each CPFF CLIN separately.

H.9.7.3. In addition to the notification requirements of FAR 52.232-20 (LIMITATION OF COST), the contractor shall also provide notification whenever there is reason to believe the hours (if Term/LOE) or cost (if completion) awarded under a CLIN are either insufficient or excessive for the performance of the work required. This notification shall be in writing and submitted to the PCO within 5 business days of determination.

H.9.7.4. Allowable cost shall be determined, and payment thereof shall be in accordance with FAR clause 52.216-7, ALLOWABLE COST AND PAYMENT. No work is authorized outside of the period of performance of the CLIN, and any work performed outside of the period of performance of the CLIN is at the contractor's risk and the Government has no obligation to reimburse.

H.9.7.5. FIXED FEE: The fixed fee, together with the reimbursement of cost shall constitute full and complete consideration for the contractor services in connection with the work required and performed under this contract. The contractor will be paid the total fixed fee for the performance of work in accordance with the contract clause entitled FIXED FEE, FAR 52.216-8, and as set forth in Section H.9.7.5.1 and H.9.7.5.2 below.

H.9.7.5.1. Term/LOE WORK DIRECTIVE(s) H.9.7.5.1.1. During the performance of the Work Directive and associated CLIN, the Government will make interim payments of fixed fee with each invoice submitted. For each request for payment, the contractor shall invoice fee as follows: Invoice Fee = Total CLIN Fixed Fee amount times the hours performed for the invoice period divided by total CLIN hours. Interim fixed fee payments shall be subject to the withholding provisions.

H.9.7.5.1.2. The payable fixed fee amount is based upon satisfactory completion of the specified LOE hours for the stated period of performance. In the event the Government wants to increase the specified LOE hours the additional hours are subject to more estimated cost and fixed fee pursuant to H.9. The contractor is not authorized to incur effort in excess of the specified LOE hours. Any costs incurred for excess effort are unallowable.

H.9.7.5.1.3. Pursuant to contract clause FAR 52.232-20 (LIMITATION OF COST) and FAR 16.306(d), in the event the contractor cannot perform LOE hour(s) within the estimated cost set forth in the CLIN, the Government may increase the estimated cost of the hour(s) but will not increase the fixed fee for the hour(s).

H.9.7.5.2. Completion Work Directive(s) H.9.7.5.2.1. The contractor shall be paid the total fixed fee stated in Section B opposite the CLIN exercised for the performance of work in accordance with the contract clause entitled FIXED FEE, FAR 52.216-8. The fixed fee together with the reimbursement of cost shall constitute full and complete consideration for the contractor services in connection with the work required and performed under this contract. During the performance of the Work Directive and the associated CLIN, the Government will make interim payments of fixed fee with each invoice submitted per FAR 52.216-7, ALLOWABLE COST AND PAYMENT, in the same ratio as the fixed fee is to the estimated cost for the CLIN. Interim fixed fee payments shall be subject to the withholding provisions.

H.9.7.5.2.2. The fixed fee is based upon satisfactory delivery of the specified end product within the estimated cost. Pursuant to contract clause FAR 52.232-20 (LIMITATION OF COST) and FAR 16.306(d), in the event the contractor cannot complete the scope within the estimated cost, the Government may require more effort without increase in fixed fee, provided the Government increases the estimated cost.

H.9.8. STATUS OF FUNDS ON COST REIMBURSEMENT CLINS

H.9.8.1. The contractor shall review the funding as it relates to work performed on the cost reimbursement CLIN(s) under this contract and shall provide the PCO a written determination of which, if any, funds are excess to requirements (leaving a reasonable amount for final overhead rate negotiations and other reasonably predicted requirements) and are available for de-obligation. This review shall be coordinated with the Administrative Contracting Officer (ACO) and the written determination shall be accomplished within 120 days of completion of performance under the CLIN. The report shall include hours worked (if Term/LOE CLIN) and total cost incurred.

H.10. ORGANIZATIONAL CONFLICTS OF INTEREST (OCI)

H.10.1. The contractor and its subcontractors, consultants, parent companies, subsidiaries, joint ventures, or other business affiliates at any tier may be excluded from performing under this contract if the PCO determines that an OCI exists due to bias or unfair competitive advantage.

H.10.2. The contractor shall flow down this provision in any subcontracts or other related instruments (at all tiers). The contractor shall monitor its activities and the activities of its subcontractors and related entities, and promptly disclose any actual or potential OCIs and any actions taken or proposed to negate or mitigate such conflicts.

H.10.3. The offeror shall disclose any potential OCI situations to the PCO as soon as identified including prior to proposal submission and throughout performance of this effort. The disclosure must include the facts and an analysis of the actual or perceived conflict and a recommended approach to neutralize, avoid, or mitigate the potential conflict. The preferred approach to potential conflicts is to negate/obviate the conflict. Mitigation is considered only if it is not practical to negate/obviate the conflict. The PCO will promptly respond to resolve any potential conflicts.

H.10.4. If the offeror does not identify any potential OCI situations, it shall provide an affirmative statement that it does not have an OCI applicable. In such instances, the contractor shall provide this statement prior to proposal submission, and prior to award of any subcontracts which may occur at any time during performance of this effort.

H.10.5. Remedies for breach of any of the above restrictions or for nondisclosure or misrepresentation of any relevant facts required to be disclosed concerning this contract, the Government may terminate the contract for default, disqualify the contractor for subsequent related contractual efforts, and pursue such other remedies as may be permitted by law or this contract.

H.11. Warranty H.11.1. Definitions. For purposes of this clause, the following definitions apply:

H.11.1.1. Vehicle/Model. A vehicle includes the entire end item including all parts, all BII and items, components, or kits required to be delivered with it.

H.11.1.2. End Item. An assemblage of supplies that comprise a complete system, i.e. a truck is an end item, a trailer is an end item.

H.11.1.3. Defect/Failure.

(1) Any condition or characteristic in the end item that is not in compliance with the requirements of this contract.

(2) Any item, part, assembly, or subassembly on the end item that does not function or operate as it is designed/intended.

H.11.1.4. Systemic Defect. The classification of failures that occur or may occur with a frequency, pattern, or sameness to indicate a regularity of occurrence which exceeds the expected failure rate by 100% as set forth in the FMEA, CDRL E002, “List of DFMEAs and PFMEAs”, which would justify multiple end item corrective actions. If an item is not in a FMEA, then items with a top failure rate for a minimum of three months may be reviewed for the possibility of a systemic defects.

H.11.1.5. Correction. The repair or replacement of defective or failed warranted components on the end items delivered under this contract.

H.11.1.6. Redesign. The remedy to correct a failure or defect on warranted items when workmanship, material and manufacturing nonconformance have been eliminated as the cause of the failure or defect. Redesign applies only to systemic defects.

H.11.1.7. Unclassified (Workmanship) Deficiencies. All workmanship deficiencies that have no effect on form fit or function, safety, interchangeability, life, vehicle performance or jeopardize mission capability but are considered departures from good workmanship. Examples of such deficiencies may include, but are not limited to, foot and/or finger prints, trash or debris left over from the manufacturing process, wraps not trimmed or washers that remain on the floor after assembly.

H.11.2. Warranty Types H.11.2.1. Hand-Off Warranty. Under this warranty, the Contractor shall be liable for the correction of all failures or defects from final acceptance (DD250) of the vehicles up to and including vehicle hand-off to the user (Soldier), as evidenced by entry into the user's (Soldier's) hand receipt or property book. Notwithstanding inspection and acceptance by the Government of the end items and services provided under the contract or any provision of this contract concerning the conclusiveness thereof, the Contractor hereby warrants that the vehicles conform to the performance and manufacturing requirements specifically delineated in this contract/specification and will conform to the performance requirements defined in ATPD 2131U, Attachment 0002. The warranty is the same for both CONUS and OCONUS. In the event the Government places vehicles in storage following acceptance and shipment from manufacturer’s facility prior to hand-off, the warranty shall be extended for the length of time the vehicles are in storage, or for 12 months, whichever comes first. The Contractor shall provide repair parts. Labor to correct hand-off defects will be performed by the Contractor or Government at the Government’s discretion. The Contractor shall not be responsible for transportation damage.

H.11.2.2. Material and Workmanship Warranty. This warranty covers the complete vehicle, parts and labor, except for accident damage, misuse, alterations, damage due to lack of maintenance or use of fluids and lubricants not recommended, and normal maintenance and scheduled service items such as filters, screens, fluids, windshield wipers, and brake shoes. Notwithstanding inspection and acceptance by the Government of the end items furnished under this contract, or any clause concerning the conclusiveness thereof, the Contractor warrants that the end items will be free from defects in material and workmanship and will conform to the requirements of this contract for the duration of 24 months from the date of Hand-Off as defined in paragraph H.11.2.1. Additionally, no warranty claims shall be submitted for less than $300.00 total value (labor and Government cost of parts). For labor, the Government will use DCMA’s approved hourly FSR labor rate. For cost of parts for warranty claim submissions by the Government to the Contractor, the cost shall be determined by the cost of parts listed in the Federal Logistics (FEDLOG) database. The warranty is the same for both CONUS and OCONUS.

H.11.2.3. Pass-Through Warranties. To the extent the Contractor’s suppliers normally provide a commercial or trade practices warranty, the Contractor shall pass the identical warranty to the Government but only in cases where that supplier's warranty offers coverage exceeding that provided by the Contractor. The Contractor shall provide a list of the warranted parts and assemblies IAW CDRL C089, “List of Pass through Warranties”.

H.11.2.3.1. The Contractor shall be responsible for administering all pass-through warranties to the terms of the supplier warranty. Pass-through warranties will start at the time specified by the Contractor’s suppliers. All remedies which the Government may seek as the result of such pass-through warranties will be brought against the Contractor and the Contractor shall administer such remedies in accordance with the supplier warranty terms and conditions.

H.11.2.4. Systemic Defect Warranty. Notwithstanding inspection and acceptance by the Government of the end items furnished under this contract or any clause concerning the conclusiveness thereof, the Contractor shall warrant that end items are free of systemic defects or failures during the duration of this warranty. The warranty duration will be from date of first end item shipment to 24 months from date of shipment of last end item shipped from the manufacturer’s facility. The Contractor shall be responsible for correcting systemic defects (H.11.1.4) on all end items covered under this warranty at the time of defect notification. If a systemic defect is discovered and workmanship, material or manufacturing non-conformance has been determined as the cause of such defect, the Contractor shall be responsible for developing and implementing a remedy acceptable to the Government, as necessary to correct the defect at no additional cost to the Government.

H.11.2.4.1. Under this warranty, when a systemic defect has been determined to have occurred, the Government may presume that all parts produced under like circumstances are similarly defective and, dependent upon the Government's review of the failure data, may require their correction at no additional cost to the Government. Produced under like circumstance means components grouped by common factors, for example, manufactured date or production lots, delivered under the contract, whether installed on end items or delivered individually.

H.11.2.5. Warranty of Logistics Data. The Contractor shall warrant all Logistics Data and associated source data developed or delivered under this contract as defined under Section C for a period of 18 months after the date of final acceptance by the Government. In these cases, the deficiency will be corrected and delivered to the Government IAW the corresponding CDRL after notification of deficiencies is provided to the Contractor by the Government. Deficiencies do not include errors found as a result of engineering designs which are Government approved configuration changes.

H.11.2.6. Warranty of Changes to the Government TDP. The Contractor shall assure the ECPs/VECPs/RFVs IAW section C.2 of this contract contain accurate up-to-date information. At a minimum, the ECPs/VECPs/RFVs shall accurately define the current production configuration, the reason for the proposed change, and the proposed production configuration. Erroneous or deficient change packages shall be corrected by the Contractor at no additional cost to the Government. This shall include deficient changes to the production hardware as well as the production configuration. The Contractor shall prepare corrective ECPs and follow-on ERR packages in accordance with the requirements of this contract at no cost to the Government. The ECPs shall be identified as Warranty of Data in Blocks 10 & 16, of the DD1692. Warranty period shall be in accordance with DFAR Clause 252.246-7001 and shall begin at the date of submittal to the Government.

H.11.3. Additional Conditions. All parts provided or furnished pursuant to a warranty claim shall be subject to all provisions of the warranty as though the replaced parts had been incorporated into the vehicle prior to vehicle acceptance.

H.11.4. Exclusions. The warranties set forth shall not apply to any defect caused by misuse or abuse of the end item, damage incurred during Government transportation, combat damage, normal wear and tear, or by the Government's failure to perform proper maintenance or service on the end item. If the Contractor believes the defect is due to misuse, damage, alterations or lack of maintenance, the Contractor shall be responsible for providing the rationale to the Government Warranty Coordinator for determination. The PCO will make the final determination based on Contractor evidence.

H.11.5. Notification. The Contractor shall establish a warranty claims website. The website shall allow for submission of claims and customer service contact information. During vehicle deprocessing, the Contractor shall submit warranty claims utilizing the warranty claims website. Warranty claims may also be submitted by the gaining unit or the Government Warranty Coordinator.

H.11.5.1. Notification dates initiate the period for the Contractor to perform the necessary corrective action(s). Notification of a systemic defect shall be in writing to the Contractor from the PCO.

H.11.6. Contractor Correction. The Contractor shall complete repairs, on site at the vehicles location or at a Government approved repair facility, under the Material and Workmanship and Pass-Through warranties within 5 calendar days of the notification date. If a claim exceeds 5 calendar days, the Contractor shall extend the vehicle warranty by the number of days the claim was open, calculated from claim open date to claim closure date.

H.11.6.1. The Contractor shall correct systemic defects within 60 days after notification unless an extensive repair effort is required. If an extensive repair effort is required, the Contractor shall notify the PCO in writing within 30 days after notification and provide the date by which repairs will be completed, subject to Government concurrence or acceptance.

H.11.7. Government Correction. When the Government elects to perform corrective actions/repairs for warranted components, the Contractor shall ship replacement parts for Government corrective actions within 5 calendar days of notification. If a claim exceeds 5 calendar days, the Contractor shall extend the vehicle warranty by the number of days the claim was open, calculated from claim open date to claim closure date. CONUS requirements shall be shipped to the repair location, including Alaska and Hawaii. OCONUS requirements shall be shipped to a Government provided APO or CONUS Port of Embarkation.

H.11.7.1. The Contractor shall reimburse the Government for the labor required to correct or repair defective parts. The cost of labor shall be the Contractor’s current hourly labor rate multiplied by the number of actual labor hours incurred, not to exceed the labor hours identified in the Maintenance Allocation Chart within the applicable Technical Manual, to include pre-conditions and follow on tasks.

H.11.7.2. The Government Warranty Coordinator will notify the Contractor of the number of hours associated with the repair.

H.11.8. Warranty Reimbursement. The Contractor shall remit payment by the 15th day of each month for all warrantable claims by the Government for reimbursement which were received by the Contractor in the previous month. Payment shall be sent to the U.S. Department of Treasury, with checks made payable to "The Treasurer of the United States"; with reporting IAW CDRL C090, “Warranty Reimbursement Reporting”.

H.11.9. Contractor Rights and Remedies. The Contractor has the right to inspect parts found to be defective under the Hand-Off, Material and Workmanship, and Pass-Through vehicle warranties at the fielding or using unit location. The Contractor will be allowed to take possession of failed parts following their replacement upon request. All such parts for which the Contractor takes into possession will be identified by the Contractor with all the information necessary to later identify the vehicle from which the part was removed and the associated mileage at time of removal. All freight charges for the requested return of defective/failed parts released to the FSR or otherwise disposed of are the responsibility of the Contractor.

H.11.9.1. The Contractor will be allowed to inspect defective supplies under the Systemic warranty to the extent possible. Because of the nature of a systemic defect, all individual defective parts may not be available. The Contractor will be provided with all documentation used to determine that a defect is considered systemic upon written request to the PCO. The Contractor shall inform the Government of any testing, study or inspection findings of returned warranty parts upon Government request. The above described inspection rights do not relieve the Contractor of its obligation to initiate the warranty replacement/repair action when notified by the Government of a warranty claim. In the event that the Contractor determines that the defective supplies are not warrantable, it shall immediately notify the PCO and provide detailed rationale supporting its position.

H.11.10. WARRANTY DATABASE

H.11.10.1. The Contractor shall develop, utilize, maintain, and update daily a comprehensive Web Based Warranty Database. The Contractor shall develop a database to establish warranty communications that supports direct exchange of warranty data between the Contractor and product managers' offices, end user (Soldier) and fielding team locations worldwide, all based on Government provided information of the vehicle fielded locations. The database shall provide information updated daily for its employees and designated Government access. The Government representatives shall have the necessary read-only capability for this database and possess the capability to access information for reporting purposes. The database shall allow for warranty report to be download into MS Office products (ex: Excel and PowerPoint). The Contactor shall develop the database to enable ad hoc search including any of the available database elements. The Contractor shall maintain this Web Based warranty database available through an online Web Based access to the Government. The Contractor shall report Contractor funded retrofit actions in the warranty database. The database must be tailored for different levels in order to support the Contractor use, Government Program Office use and the customer (Soldier) use. The source data shall be U.S. Government property. The Contractor shall maintain and operate the database for the life of the contract. Upon contractual close- out, all source data will be provided to the Government. The Contractor shall update the database within 5 working days of repair completion. The Contractor shall submit a Warranty Database Report IAW CDRL C091, “Warranty Database Report”. The Contractor shall identify and appoint their designated Warranty Manger. The Contractor is responsible for data integrity, cybersecurity and redundancy that ensures no loss of current or archive data. Corresponding source files shall be due at time of CDRL delivery.

H.11.10.2. The Contractor shall develop a real time overarching set of Program Office dashboard metrics within the warranty database. The Contractor shall use the metrics to support the data presented during the MMRs. The Contractor shall develop Metrics including:

· Total warranty response time (based on calendar days)

· Accept or reject response time within 72 hours

· Warranty cycle time (Time the warranty claim was opened to the time the warranty claim is closed)

· Average

· Ordered list (bar chart format)

· Query interface to provide a running 12-month average.

· Total cost of repairs, repair parts and a running 12-month average.

· The top 20 most frequently replaced parts by warranty claims. Viewable by the last 12-months.

· The top 20 most frequent warranty parts with supporting NSN, quantity, nomenclature, Part Number and cage/manufacture code.

· A geographic map of where the warranty claims are coming from (location) with the associated serial number, NSN, model numbers and quantity of claims.

· The contractors cost of repairs (labor) per claim and with the capability to provide a 12-month average.

· Warranty Item UII when applicable.

· Vehicle Serial Numbers

· Vehicle NSNs

· Model Numbers

· NSN/PN of Replaced Part(s).

· Nomenclature of replaced parts and cost of repair part(s).

· Unit Location and Address.

· Repair completion date and denied claims with reason of denial

· Date the field service contractor reported onsite.

H.11.10.3. The Contractor shall develop the database construct as outlined in Attachment 0021, “Warranty Specific Issue Classification (SIC) Parameter Summary & Requirements”.

H.11.11. WARRANTY REPORTING

H.11.11.1. The Contractor shall use the warranty database to complete and deliver DA Form 7744 (Warranty Summary and Assessment) and 7744-1 (Warranty Program Assessment and Reporting) IAW, CDRL C092, “Warranty Summary and Assessment”. All supporting data shall be due at time of CDRL delivery.

H.11.12. WARRANTY PROVISIONS FOR FMS VEHICLES

H.11.12.1. FMTV vehicles acquired under this contract shall be subject to the warranty requirements stipulated in this provision (H.11). For purposes of this contract, the FMS Warranty shall also apply to vehicles which are purchased by the US and then sold, transferred or donated to a foreign country. FMS warranty shall apply to the extent that the recipient of the FMS vehicle can show properly performed and documented maintenance.

H.11.13. Gifted Vehicle Warranty. A Gifted Vehicle is a vehicle purchased by the U.S. Army and transferred to another country. Any gifted vehicle warranty shall apply to the extent that the recipient of the gifted vehicle can show properly performed and documented maintenance for the warranty clauses of this contract to apply.

H.12. Government Furnished Property/Equipment/Information H.12.1. Pursuant to the Government Property Clause in Section I of the contract, the Government will furnish Government property, equipment and information under this contract FOB Contractor's location, for use in the performance of this contract.

H.12.2. The Government will provide the Contractor with Publication, Provisioning, Packaging and Training Source Data at the time of contract award.

H.12.2.1. The Government will provide the property shown on Attachment 0022, “GFE”.

H.12.2.2. Government Property Management Report: The Contractor shall establish, manage, and maintain a Government Property Management Report to account for Government property. The report shall encompass furnished vehicles and equipment information to provide traceability of Government assets. Contractor shall submit reports on a monthly basis IAW CDRL C093, "Government Property Management Report".

H.12.2.3. STS GFE: Any items provided as STS GFE as part of this contract, shall be accounted for and maintained by the Contractor IAW H.12.

H.12.3. Option for Continued Vehicle Care and Storage Prior to Shipment. The Government has the right to exercise up to 36,500 days of Contractor support to perform Vehicle Care and Storage services as delineated in the Contractor's Storage Exercise and Maintenance Plan, CDRL E010, “Care, Storage, Exercise, and Maintenance Plan and Modifications”, (as approved by the Government) after all other care and storage services required by the contract (see paragraphs E.2.30) have been exhausted for a particular vehicle. The Government is not obligated to exercise all of these days, and if exercised, can be exercised in one or more increments. Vehicle Care and Storage prices will be based on the ordering year that the Vehicle Care and Storage will be executed during in accordance with Attachment 0042, “Contract Prices”.

H.13. Reimbursement for Federal Retail Excise Tax (FRET) Expenses.

H.13.1. The FRET applicable to each vehicle will not be included in the vehicle CLIN price but will, instead, be included in a separate FRET Cost Only Reimbursement CLIN. FRET Reimbursement CLINs will reimburse the Contractor the actual amount of FRET paid by the Contractor to the Internal Revenue Service, as evidenced by quarterly retail excise tax returns (Form 720), and subject to the unit price for each model.

H.13.2. The Contractor shall submit incremental invoices to the PCO for reimbursement of FRET actually paid to the Internal Revenue Service or deposited for that purpose. The incremental invoice request shall contain a copy of Federal Tax Deposits (Form 8109-B) and Quarterly Tax Return (Form 720) to reconcile deposits made to actual tax liability if reimbursement is requested more frequently than quarterly, or Quarterly Tax Returns only (Form 720) if reimbursement is requested on a quarterly basis. Since the Federal Tax Deposits for excise taxes used in connection with Form 720, as well as the Quarterly Tax Return itself, are for the total excise tax liability paid by the Contractor, without regard to individual Contracts nor distinguishable as military or commercial, the Contractor must provide sufficient supporting data to enable identification of the part of Federal Tax Deposits or Quarterly Tax amounts that are attributable to vehicle models under this contract. Failure to adequately identify those deposits or payments attributable to vehicles delivered under this contract may result in delays in reimbursement with any such delay being the sole responsibility of the Contractor. Reimbursement requests shall be submitted no less frequently than on a quarterly basis. All reimbursement requests shall be submitted to the PCO no later than 10 days after the due date for the submission of deposits or the due date for submission of Quarterly returns. Concurrent with the submittal of incremental invoices for reimbursement, and in addition to the supporting data required above, the Contractor shall submit a report indicating the total number of vehicles sold during the period, the total number of vehicles sold to date, and the total number of vehicles exported during the period. Vehicles sold under this contract shall also be identified by: (1) CLIN, (2) Quantity, (3) Vehicle Serial Number, (4) Document Number, (5) Gross Vehicle Weight, (6) Destination, and (7) Amount of Federal Retail Excise Tax paid or deposited for that vehicle.

H.13.3. In the event that the Government reimburses the Contractor for FRET on a vehicle that was initially shipped to a CONUS destination but which vehicle is subsequently exported within 6 months of the date of final acceptance, the Contractor agrees, consistent with the Federal, State and Local Tax clauses, to pursue a refund from the Internal Revenue Service if tax has been paid, or refund the tax amounts if not paid, or if only included in a periodic deposit, within 30 days of receipt of such refund (in the case of taxes paid) or notice of export (in the case of funds not paid or only included in a periodic deposit). The Government shall provide the required certification for Proof of Export to the Contractor to support such requests for refund or return of taxes not yet paid.

H.13.4. In the event that the parties disagree on the amount of refund for FRET, the issue shall be resolved through the Disputes Clause.

H.13.5. Contractor Representation of Basis for Adjustment in Contract Price Due to Change in FRET Liability after Contract Award.

H.13.5.1. Offerors should submit proposals based on the current applicability of FRET.

H.13.5.2. The purpose of this clause is to prescribe procedures for Contractor representation of net FRET adjustments required to be made to the contract price as a result of after-imposed Federal Tax or after-relieved Federal Tax as those terms are defined in the clause, FEDERAL, STATE, AND LOCAL TAXES, located in Section I of this contract.

H.13.5.3. As detailed in subparagraphs (c)-(d) of FAR 52.229-3, the Contractor shall notify the PCO promptly of all matters relating to FRET which may reasonably be expected to require an increase or decrease in the contract price in excess of $100.

H.13.5.4. Within 120 days after a change in FRET liability for contracted items calls for an adjustment in the contract price pursuant to FAR 52.229-3 Federal State and Local Taxes (or such greater period of time as the parties may mutually agree upon) the Contractor shall forward a statement as specified in FAR 33.207(c) signed by a representative with binding contractual authority which states the following for each supply-item CLIN:

H.13.5.4.1. The detailed tax basis and method of calculation for FRET for the former liability amount and the adjusted FRET liability amount due to an after-imposed or after-relieved tax.

H.13.5.4.2. The amount previously included in the contract price for FRET liability and a warrant in writing that an amount for a newly imposed FRET or rate increase was not included in the contract price as a contingency reserve or otherwise.

H.13.5.4.3. The amount paid by the Contractor to the IRS for FRET (plus interest and penalty to the extent allowable under FAR 31.205) for each contract CLIN supply item which is subject to a FRET change, and any and all amounts refunded by the IRS (plus interest and penalty amounts as applicable). Net adjustments to the IRS should clearly reflect the debits and credits included in the overall calculations.

H.13.5.4.4. The Contractor's statement shall be submitted with sufficient supporting evidence to permit the Government to verify the accuracy of the statement through audit review as expressed in the contract clause entitled AUDIT AND RECORDS - NEGOTIATIONS in Section I of the contract. The supporting evidence shall conform to generally accepted accounting principles and practices, inclusive of compliance with applicable Cost Accounting Standards.

H.13.5.4.5. All FRET adjustments (inclusive of interest and penalty amounts when applicable) which are to be credited to the Government under the terms of the contract's FEDERAL, STATE, AND LOCAL TAXES clause shall bear interest at the rate stated in the FAR 52.232-17 INTEREST clause commencing thirty days after receipt by the Contractor from the IRS.

H.13.5.4.6. The requirements of this clause are in addition to, and not in limitation of, the requirements of any other contract clause.

H.14. Department of Defense Activity Address Code. The Department of Defense Activity Address Code (DoDAAC) for use under this contract is CK0TUA, and will be addressed under each Delivery Order.

H.15. IMPACTS OF LATE/DEFICIENT FIELDING SUPPORT DATA.

H.15.1. If the technical data specified to be delivered under this contract, to include the system support package needed for fielding (TMs/IETM, provisioning, LMI, training, etc.), is not delivered within the time specified by this contract, or is deficient upon delivery, the PCO may until such data is accepted by the Government, defer acceptance of any trucks, and also withhold payment to the Contractor of a portion of the total contract price. Payment shall not be withheld when the Contractor's failure to make timely delivery or to deliver such data without deficiencies arises out of causes beyond the control and without fault or negligence of the Contractor.

H.16. Data Communications Submitted to the Government Electronically.

H.16.1. The Government often employs Contractors as system administrators to operate and maintain Government computer systems. These systems include local area networks, web sites, databases, other electronic records, e-mail accounts, other electronic data transfer mechanisms and computer software. The employees of these contracted system administrators sign nondisclosure agreements obligating them not to reveal information contained in files, documents, computers or systems that they administer. However, unless such information is protected in some way, contracted system administrators do have the ability to access such information.

H.16.2. Contractors as well as any other parties are thus advised to take steps needed to prevent access by contracted system administrators to information submitted electronically to the Government. Absent such steps, it is assumed that contracted system administrators are permitted the capability to access the data.