RETS_Draft_RFP_(DRFP)_19APR2017.pdf

CODE

(Hour)

PAGE(S)

until local time

X

A X B

C D

EX

X G F 80 - 90

91 - 115 X H 116 - 123

RATING PAGE OF PAGES

7. ISSUED BY

(Date)

IMPORTANT - Award will be made on this Form, or on Standard Form 26, or by other authorized official written notice.

Previous Edition is Unusable 33-134 STANDARD FORM 33 (REV. 9-97)

Prescribed by GSA FAR (48 CFR) 53.214(c)

1 123

(If other than Item 7)

15A. NAME 16. NAME AND TITLE OF PERSON AUTHORIZED TO

AND

ADDRESS

SIGN OFFER (Type or print)

OF

OFFEROR

AMENDMENT NO. DATE

15B. TELEPHONE NO (Include area code) 17. SIGNATURE15C. CHECK IF REMITTANCE ADDRESS

IS DIFFERENT FROM ABOVE - ENTER

SUCH ADDRESS IN SCHEDULE.

18. OFFER DATE

1. THIS CONTRACT IS A RATED ORDER

UNDER DPAS (15 CFR 700)

2. CONTRACT NO.

W9113M 8. ADDRESS OFFER TO

See Item 7

9. Sealed offers in original and copies for furnishing the supplies or services in the Schedule will be received at the place specified in Item 8, or if handcarried, in the depository located in

CAUTION - LATE Submissions, Modifications, and Withdrawals: See Section L, Provision No. 52.214-7 or 52.215-1. All offers are subject to all terms and conditions contained in this solicitation.

10. FOR INFORMATION

CALL:

A. NAME (NO COLLECT CALLS)

11. TABLE OF CONTENTS

SOLICITATION/ CONTRACT FORM

SUPPLIES OR SERVICES AND PRICES/ COSTS

1 - 3 4 - 23

X I CONTRACT CLAUSES

DESCRIPTION/ SPECS./ WORK STATEMENT X

PACKAGING AND MARKING

J LIST OF ATTACHMENTS

INSPECTION AND ACCEPTANCE

DELIVERIES OR PERFORMANCE

24 - 27 28 - 30

X K

REPRESENTATIONS, CERTIFICATIONS AND

OTHER STATEMENTS OF OFFERORS

CONTRACT ADMINISTRATION DATA 31 - 33 X

SPECIAL CONTRACT REQUIREMENTS

OFFER (Must be fully completed by offeror) 34 - 58 X M

L INSTRS., CONDS., AND NOTICES TO OFFERORS

EVALUATION FACTORS FOR AWARD

NOTE: Item 12 does not apply if the solicitation includes the provisions at 52.214-16, Minimum Bid Acceptance Period.

is inserted by the offeror) from the date for receipt of offers specified above, to furnish any or all items upon which prices are offered at the price set opposite each item, delivered at the designated point(s), within the time specified in the schedule.

13. DISCOUNT FOR PROMPT PAYMENT

(See Section I, Clause No. 52.232-8)

14. ACKNOWLEDGMENT OF AMENDMENTS

(The offeror acknowledges receipt of amendments

AMENDMENT NO. DATE

to the SOLICITATION for offerors and related documents numbered and dated):

FACILITY

12. In compliance with the above, the undersigned agrees, if this offer is accepted within calendar days (60 calendar days unless a different period

SOLICITATION, OFFER AND AWARD

X

(X) SEC. DESCRIPTION (X) SEC. DESCRIPTION PAGE(S)

PART I - THE SCHEDULE

26. NAME OF CONTRACTING OFFICER (Type or print) 27. UNITED STATES OF AMERICA 28. AWARD DATE

EMAIL:TEL: (Signature of Contracting Officer)

CODE CODE

B. TELEPHONE (Include area code) C. E-MAIL ADDRESS

AWARD (To be completed by Government)

19. ACCEPTED AS TO ITEMS NUMBERED 20. AMOUNT 21. ACCOUNTING AND APPROPRIATION

22. AUTHORITY FOR USING OTHER THAN FULL AND OPEN COMPETITION:

10 U.S.C. 2304(c)( ) 41 U.S.C. 253(c)( ) (4 copies unless otherwise specified)

23. SUBMIT INVOICES TO ADDRESS SHOWN IN ITEM

24. ADMINISTERED BY (If other than Item 7) CODE 25. PAYMENT WILL BE MADE BY CODE

PART IV - REPRESENTATIONS AND INSTRUCTIONS

PART III - LIST OF DOCUMENTS, EXHIBITS AND OTHER ATTACHMENTS

59 - 78

PART II - CONTRACT CLAUSES

USASMDC/ARSTRAT

SMDC-RDC-BA

PO BOX 1500

HUNTSVILLE AL 35807-3801 256-799-3044

FAX:

TEL:

FAX:

TEL:

NOTE: In sealed bid solicitations "offer" and "offeror" mean "bid" and "bidder".

SOLICITATION

6. REQUISITION/PURCHASE NO.5. DATE ISSUED4. TYPE OF SOLICITATION

SEALED BID (IFB)

NEGOTIATED (RFP)

[ X ]

3. SOLICITATION NO.

W9113M-15-R-0007

Section A - Solicitation/Contract Form

EXECUTIVE SUMMARY

1. OBJECTIVE

a. The objective of this solicitation is to obtain proposals for the RETS Performance Work Statement (PWS), in support of the highly specialized test and evaluation operations of RTS at both the USAG-KA and ROC-H locations.

b. The RETS acquisition is via FULL AND OPEN COMPETITION.

c. The anticipated contract will consist of cost-plus-fixed-fee - level of effort (CPFF-LOE) services for RETS TMS/I&M effort; cost-plus-incentive-fee (CPIF) for STS effort, cost reimbursable (CR) No Fee for direct materials, ODC, and travel, and CPFF for transition (Phase-In/Phase-Out) effort.

d. The resulting contract from this solicitation shall be a 10 year contract consisting of a four year base period and three options that are two year option periods. Transition (phase-in) will occur during the first 90 days of the base period. The transition (phase-out) option, if exercised, will be performed during the final 90 days of the base or current option period, as applicable.

e. Upon contract award CLIN 0009 “Phase-In” and all of the remaining base period CLINs (0001-0008) will be awarded and will be incrementally funded.

2. BACKGROUND/DESCRIPTION

a. The U.S. Army Space and Missile Defense Command/Army Forces Strategic Command (USASMDC/ARSTRAT) Technical Center is responsible for the Ronald Reagan Ballistic Missile Defense Test Site, commonly referred to as Reagan Test Site (RTS), a subdivision of USASMDC/ARSTRAT, that provides missile test and evaluation and space situational awareness services in support of USASMDC/ARSTRAT Joint, and (approved) commercial agencies as component of the Department of Defense (DoD) Major Range and Test Facility Base (MRTFB) through split-based / distributed operations. RTS executes and reports on theater and strategic offensive and defensive ballistic missile testing and supports space situational awareness operations and experiments from the USAG-KA and from the RTS ROC-H, using a wide array of highly sophisticated radar, telemetry, and optical sensors to meet the needs of the DoD in defending the Nation and its interests. RTS operates as a tenant unit on U.S. Army Garrison-Kwajalein Atoll (USAG-KA) and at the RTS Operations Center (ROC-H) located in Huntsville, Alabama.

b. The North American Industry Classification System (NAICS) code 541712 -- Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology) is applicable to RETS. The Product Service Code (PSC) for this acquisition is AC24 – Research and Development – Defense System: Missile/Space Systems (Engineering Development).

3. RELEVANT INFORMATION

a. Attention is specifically directed to Sections B, H, I, J, K, L, and M. Any proposal submitted to the Contracting Officer shall be prepared in accordance with the proposal preparation instructions in section L. Failure to submit a proposal that complies with Section L will result in the rejection of the proposal for evaluation. The offeror is responsible for its proposal and by proposing the offeror is in agreement that they can meet the solicitation requirement. Any element of the offeror’s proposal that the Government finds advantageous may be conformed to the contract as a material obligation subject to sole discretion of the Contracting Officer. The evaluation of proposals submitted in response to the RETS solicitation will be conducted IAW Section M of the solicitation.

b. Proposals must be submitted within 45 days from release of this RFP. Following receipt of proposals, they will be evaluated and a contract may be awarded for the effort. Contract award is projected for first quarter of FY2018.

c. This Request for Proposal (RFP) shall not be discussed with any Government employee except via the Procuring Contracting Officer (PCO) or her representative. During the proposal preparation phase, the contractor shall address questions regarding this solicitation to the PCO or her representative. Under no circumstances will communications regarding the RETS solicitation be directed to any other Government or contractor employee.

d. The Government point of contact for this solicitation is Mr. Nathan Martin, Contracting Specialist, nathan.d.martin18.civ@mail.mil. Comments and/or questions should be directed to this individual.

e. This executive summary is provided as an administrative convenience and is not intended to alter the terms and conditions of the RFP. Any inconsistency between the executive summary and other provisions of the RFP shall be resolved in favor of the provisions in the RFP.

Section B - Supplies or Services and Prices

ITEM NO SUPPLIES/SERVICES QUANTITY UNIT UNIT PRICE AMOUNT

0001 Hours Base Period, Year 1 STS Labor

CPIF

Base period for STS labor will be begin NLT 90 days After Date of Contract award (ADC) with a 9-month period of performance. Contractor shall perform in accordance with Attachment 01, Performance Work Statement (PWS), Reagan Test Site (RTS) Engineering and Technical Services (RETS), in Section J. See Section B, FAR clause 52.216-10 and Section H.29 Incentive Fee. Share Ratio above and below target is 70/30.

FOB: Destination

TARGET COST

TARGET FEE

TOTAL TGT COST + FEE

MINIMUM FEE

MAXIMUM FEE

SHARE RATIO ABOVE TARGET

SHARE RATIO BELOW TARGET

0002 Lot Base Period, Yrs. 1-4 STS Travel

COST

Base period for STS travel will begin NLT 90 days ADC with a 45-month period of performance. Contractor shall perform in accordance with Attachment 01, PWS, RETS, in Section J. Travel must be completed within the cost reimbursable amounts allowed per the Federal Acquisition Regulation (Part 31), its supplements and the Joint Travel Regulations (JTR) and the respective company's Implementation and Policy Procedures. NO FEE ON THIS CLIN.

ESTIMATED COST

0003 Lot Base Period, Yrs. 1-4 STS Material

COST

Base period for STS material will begin NLT 90 days ADC with a 45-month period of performance. Contractor shall perform in accordance with Attachment 01, PWS, RETS, in Section J. NO FEE ON THIS CLIN.

0004 Lot Base Period, Yrs. 1-4 STS ODC

COST

Base period for STS ODC will begin NLT 90 days ADC with a 45-month period of performance. Contractor shall perform in accordance with Attachment 01, PWS, RETS, in Section J. NO FEE ON THIS CLIN.

0005 Hours Base Period, Yrs. 1-4 TMS Labor

CPFF

Base period for TMS labor will begin NLT 90 days ADC with a 45-month period of performance. Contractor shall perform in accordance with Attachment 01, PWS, RETS, in Section J.

FIXED FEE

TOTAL EST COST + FEE

0006 Lot Base Period, Yrs. 1-4 TMS Travel

COST

Base period for TMS travel will begin NLT 90 days ADC with a 45-month period of performance. Travel must be completed within the cost reimbursable amounts allowed per the FAR Part 31, its supplements and the JTR and the respective company's Implementation and Policy Procedures. NO FEE ON THIS CLIN.

0007 Lot Base Period, Yrs. 1-4 TMS Material

COST

Base period for TMS material will begin NLT 90 days ADC with a 45-month period of performance. NO FEE ON THIS CLIN.

0008 Lot Base Period, Yrs. 1-4 TMS ODC

COST

Base period for TMS ODC will begin NLT 90 days ADC with a 45-month period of performance. NO FEE ON THIS CLIN.

Phase-In

CPFF

Phase-in will began at contract award with a 90 day period of performance.

Contractor shall perform in accordance with Attachment 01, PWS, RETS, in Section J.

1001 Hours Base Period, Yr. 2 STS Labor

CPIF

Base period for STS labor will begin NLT 1 year ADC with a 12-month period of performance. Contractor shall perform in accordance with Attachment 01, PWS, RETS, in Section J. See Section B, FAR clause 52.216-10 and Section H.29 Incentive Fee. Share Ratio above and below target is 70/30.

2001 Hours Base Period, Yr. 3 STS Labor

CPIF

Base period for STS labor will begin NLT 2 years ADC with a 12-month period of performance. Contractor shall perform in accordance with Attachment 01, PWS, RETS, in Section J. See Section B, FAR clause 52.216-10 and Section H.29 Incentive Fee. Share Ratio above and below target is 70/30.

3001 Hours Base Period, Yr. 4 STS Labor

CPIF

Base period for STS labor will begin NLT 3 years ADC with a 12-month period of performance. Contractor shall perform in accordance with Attachment 01, PWS, RETS. See Section B, FAR clause 52.216-10 and Section H.29 Incentive Fee. Share Ratio above and below target is 70/30.

4001 Hours OPTION Option 1, Yr. 1 STS Labor

CPIF

Option for STS labor may be exercised NLT 4 years ADC with a 12-month period of performance. Contractor shall perform in accordance with Attachment 01, PWS, RETS. See Section B, FAR clause 52.216-10 and Section H.29 Incentive

4002 Lot OPTION Option 1, Yrs. 1-2 STS Travel

COST

Option for STS travel may be exercised NLT 4 years ADC with a 24-month period of performance. Travel must be completed within the cost reimbursable amounts allowed per the FAR Part 31, its supplements and the JTR and the respective company's Implementation and Policy Procedures. NO FEE ON THIS

CLIN.

4003 Lot OPTION Option 1, Yrs. 1-2 STS Material

COST

Option for STS material may be exercised NLT 4 years ADC with a 24-month

4004 Lot OPTION Option 1, Yrs. 1-2 STS ODC

COST

Option for STS ODC may be exercised NLT 4 years ADC with a 24-month

4005 Hours OPTION Option 1, Yrs. 1-2 TMS Labor

CPFF

Option for TMS labor may be exercised NLT 4 years ADC with a 24-month period of performance. Contractor shall perform in accordance with Attachment

01, PWS, RETS.

4006 Lot OPTION Option 1, Yrs. 1-2 TMS Travel

COST

Option for TMS travel may be exercised NLT 4 years ADC with a 24-month period of performance. Travel must be completed within the cost reimbursable amounts allowed per the FAR Part 31, its supplements and the JTR and the respective company's Implementation and Policy Procedures. NO FEE ON THIS

4007 Lot OPTION Option 1, Yrs. 1-2 TMS Material

COST

Option for TMS material may be exercised NLT 4 years ADC with a 24-month

4008 Lot OPTION Option 1, Yrs. 1-2 TMS ODC

COST

Option for TMS ODC may be exercised NLT 4 years ADC with a 24-month

5001 Hours OPTION Option 1, Yr. 2 STS Labor

CPIF

Option for STS labor may be exercised NLT 4 years ADC but performance will not start until 5 years ADC with a 12-month period of performance. Contractor shall perform in accordance with Attachment 01, PWS, RETS. See Section B, FAR clause 52.216-10 and Section H.29 Incentive Fee. Share Ratio above and below target is 70/30.

6001 Hours OPTION Option 2, Yr. 1 STS Labor

CPIF

Option for STS labor may be exercised NLT 6 years ADC with a 12-month period of performance. Contractor shall perform in accordance with Attachment 01, PWS, RETS. See Section B, FAR clause 52.216-10 and Section H.29 Incentive

6002 Lot OPTION Option 2, Yrs. 1-2 STS Travel

COST

Option for STS travel may be exercised NLT 6 years ADC with a 24-month period of performance. Travel must be completed within the cost reimbursable amounts allowed per the FAR Part 31, its supplements and the JTR and the respective company's Implementation and Policy Procedures. NO FEE ON THIS

6003 Lot OPTION Option 2, Yrs. 1-2 STS Material

COST

Option for STS material may be exercised NLT 6 years ADC with a 24-month

6004 Lot OPTION Option 2, Yrs. 1-2 STS ODC

COST

Option for STS ODC may be exercised NLT 6 years ADC with a 24-month

6005 Hours OPTION Option 2, Yrs. 1-2 TMS Labor

CPFF

Option for TMS labor may be exercised NLT 6 years ADC with a 24-month period of performance. Contractor shall perform in accordance with Attachment

6006 Lot OPTION Option 2, Yrs. 1-2 TMS Travel

COST

Option for TMS travel may be exercised NLT 6 years ADC with a 24-month period of performance. Travel must be completed within the cost reimbursable amounts allowed per the FAR Part 31, its supplements and the JTR and the respective company's Implementation and Policy Procedures. NO FEE ON THIS

6007 Lot OPTION Option 2, Yrs. 1-2 TMS Material

COST

Option for TMS material may be exercised NLT 6 years ADC with a 24-month

6008 Lot OPTION Option 2, Yrs. 1-2 TMS ODC

COST

Option for TMS ODC may be exercised NLT 6 years ADC with a 24-month

7001 Hours OPTION Option 2, Yr. 2 STS Labor

CPIF

Option for STS labor may be exercised NLT 6 years ADC but performance will not start until 7 years ADC with a 12-month period of performance. Contractor shall perform in accordance with Attachment 01, PWS, RETS. See Section B, FAR clause 52.216-10 and Section H.29 Incentive Fee. Share Ratio above and

8001 Hours OPTION Option 3, Yr. 1 STS Labor

CPIF

Option for STS labor may be exercised NLT 8 years ADC with a 12-month period of performance. Contractor shall perform in accordance with Attachment 01, PWS, RETS. See Section B, FAR clause 52.216-10 and Section H.29 Incentive

8002 Lot OPTION Option 3, Yrs. 1-2 STS Travel

COST

Option for STS travel may be exercised NLT 8 years ADC with a 24-month period of performance. Travel must be completed within the cost reimbursable amounts allowed per the FAR Part 31, its supplements and the JTR and the respective company's Implementation and Policy Procedures. NO FEE ON THIS

8003 Lot OPTION Option 3, Yrs. 1-2 STS Material

COST

Option for STS material may be exercised NLT 8 years ADC with a 24-month

8004 Lot OPTION Option 3, Yrs. 1-2 STS ODC

COST

Option for STS ODC may be exercised NLT 8 years ADC with a 24-month

8005 Hours OPTION Option 3, Yrs. 1-2 TMS Labor

CPFF

Option for TMS labor may be exercised NLT 8 years ADC with a 24-month period of performance. Contractor shall perform in accordance with Attachment

8006 Lot OPTION Option 3, Yrs. 1-2 TMS Travel

COST

Option for TMS travel may be exercised NLT 8 years ADC with a 24-month period of performance. Travel must be completed within the cost reimbursable amounts allowed per the FAR Part 31, its supplements and the JTR and the respective company's Implementation and Policy Procedures. NO FEE ON THIS

8007 Lot OPTION Option 3, Yrs. 1-2 TMS Material

COST

Option for TMS material may be exercised NLT 8 years ADC with a 24-month

8008 Lot OPTION Option 3, Yrs. 1-2 TMS ODC

COST

Option for TMS ODC may be exercised NLT 8 years ADC with a 24-month

9001 Hours OPTION Option 3, Yr. 2 STS Labor

CPIF

Option for STS labor may be exercised NLT 8 years ADC but performance will not start until 9 years ADC with a 12-month period of performance. Contractor shall perform in accordance with Attachment 01, PWS, RETS. See Section B, FAR clause 52.216-10 and Section H.29 Incentive Fee. Share Ratio above and

9002 Lot OPTION Phase-Out

CPFF

Option for phase-out may be exercised NLT 9 years ADC but performance will not start until 117-months ADC with a 90 day period of performance.

Contractor shall perform in accordance with Attachment 01, PWS, RETS, in Section J and CDRL A011.

9992 Lot CDRLs

COST

Data items to be delivered under this contract shall be cited in the Contract Data Requirements List (CDRL), DD Form 1423, Exhibit A, incorporated herein and attached as set forth in Section J hereof. These CDRLs are for CLINs 0001 through 0009; 1001; 2001; 3001; 4001 through 4008; 5001; 6001 through 6008;

7001; 8001 through 8008; 9001 and 9002 (if exercised). NSP

9993 Lot Manpower Reporting

COST

Contractor Manpower Reporting - ALL PERIODS OF PERFORMANCE. The contractor is required to completely fill in all the information in the format using the following web address: http://www.ecmra.mil. The reporting period will be the period of performance NTE 12 months ending 30 September (USG fiscal year end) and must be reported NLT 31 October of each calendar year. NSP

9994 Lot Reporting of CAP

COST

The contractor is required to report Contractor-Acquired Property (CAP). CAP includes items requiring Item Unique Identification (IUID) markings. The format will be contractor created and Government accepted to include the following information: Header titled "Contractor-Acquired Property", Specify Contract Number, and Identify Contractor. Then, the spreadsheet should provide for the following column headings: CLIN, Item Description, Type Designation (as required), National Stock Number (NSN), Part or Identifying Number (PIN), Quantity, Unit of Measure, Serial Number (Unique Item Identifier (UII)) if known, Original Unit Acquisition Cost, Date Received, Physical Location, and Comments (CDRLs A0XX, A0XX and A0XX). Delivered equipment shall remain on CAP/GFP lists with “delivered” status, so that all CAP remains accountable and contractor reports can be compared to Government property books. CAP will be input into Wide Area Work Flow (WAWF) upon delivery to the Government and identified as Government Furnished Property (GFP). NSP

B.1 INCENTIVE FEE

a. This contract provides for payment of fee on an incentive fee basis for STS Labor CLINs 0001, 1001, 2001, 3001, 4001, 5001, 6001, 7001, 8001 and 9001. Target, Minimum and Maximum incentive fee is comprised of 50% delegated to cost performance and 50% delegated to technical performance. Share ratio is 70/30 for overrun and 70/30 for underrun. Incentive fee is earned by the contractor based on the contractor’s cost and technical performance for the CLIN period of performance. The contractor is only entitled to fee on estimated target costs that have been funded. The Target Fee, Minimum Fee, and Maximum Fee available for cost performance and technical performance is identified by CLIN as follows ($ TBD in this section will be completed and updated based on the pro rata relationship of estimated target costs to the funds being obligated):

CLIN 0001 Total Cost Performance (50%) Technical Performance (50%) Target Fee $ TBD $ TBD (50% of Total $TBD (50% of Total) Minimum Fee $ 0.00 $ 0.00 $ 0.00 Maximum Fee $ TBD $ TBD (50% of Total) $TBD (50% of Total)

CLIN 1001 Total Cost Performance (50%) Technical Performance (50%) Target Fee $ TBD $ TBD (50% of Total $TBD (50% of Total) Minimum Fee $ 0.00 $ 0.00 $ 0.00 Maximum Fee $ TBD $ TBD (50% of Total) $TBD (50% of Total)

CLIN 2001 Total Cost Performance (50%) Technical Performance (50%) Target Fee $ TBD $ TBD (50% of Total $TBD (50% of Total) Minimum Fee $ 0.00 $ 0.00 $ 0.00 Maximum Fee $ TBD $ TBD (50% of Total) $TBD (50% of Total)

CLIN 3001 Total Cost Performance (50%) Technical Performance (50%) Target Fee $ TBD $ TBD (50% of Total $TBD (50% of Total) Minimum Fee $ 0.00 $ 0.00 $ 0.00 Maximum Fee $ TBD $ TBD (50% of Total) $TBD (50% of Total)

CLIN 4001 Total Cost Performance (50%) Technical Performance (50%) Target Fee $ TBD $ TBD (50% of Total $TBD (50% of Total) Minimum Fee $ 0.00 $ 0.00 $ 0.00 Maximum Fee $ TBD $ TBD (50% of Total) $TBD (50% of Total)

CLIN 5001 Total Cost Performance (50%) Technical Performance (50%) Target Fee $ TBD $ TBD (50% of Total $TBD (50% of Total) Minimum Fee $ 0.00 $ 0.00 $ 0.00 Maximum Fee $ TBD $ TBD (50% of Total) $TBD (50% of Total)

CLIN 6001 Total Cost Performance (50%) Technical Performance (50%) Target Fee $ TBD $ TBD (50% of Total $TBD (50% of Total) Minimum Fee $ 0.00 $ 0.00 $ 0.00 Maximum Fee $ TBD $ TBD (50% of Total) $TBD (50% of Total)

CLIN 7001 Total Cost Performance (50%) Technical Performance (50%) Target Fee $ TBD $ TBD (50% of Total $TBD (50% of Total) Minimum Fee $ 0.00 $ 0.00 $ 0.00 Maximum Fee $ TBD $ TBD (50% of Total) $TBD (50% of Total)

CLIN 8001 Total Cost Performance (50%) Technical Performance (50%) Target Fee $ TBD $ TBD (50% of Total $TBD (50% of Total) Minimum Fee $ 0.00 $ 0.00 $ 0.00 Maximum Fee $ TBD $ TBD (50% of Total) $TBD (50% of Total)

CLIN 9001 Total Cost Performance (50%) Technical Performance (50%) Target Fee $ TBD $ TBD (50% of Total $TBD (50% of Total) Minimum Fee $ 0.00 $ 0.00 $ 0.00 Maximum Fee $ TBD $ TBD (50% of Total) $TBD (50% of Total)

The maximum total contract incentive fee paid for (cost and technical performance) shall not exceed maximum fee amounts or be less than minimum fee amounts. Unearned incentive fees in one performance area are not available in any other performance area. Unearned incentive fees from one time period are not available in any other time period.

b. COST PERFORMANCE (50%)

Cost performance will be evaluated as provided in FAR 52.216-10, Incentive Fee; based on the relationship of total allowable cost incurred compared to the associated estimated target costs for work that has been authorized.

Estimated target costs that have not been funded, will not be included in underrun/overrun calculations. The share ratio for cost performance incentive fee (underrun and overrun) is 70/30. The cost performance incentive fee payable under this contract shall be the cost performance target fee (identified in paragraph a. above) increased by 30 cents for every dollar that the total allowable cost incurred is less than the target cost or decreased by 30 cents for every dollar that the total allowable cost incurred is more than the target cost. In no event shall the cost performance incentive fee be greater than the cost performance maximum fee or less than the cost performance minimum fee.

The Target Fee, Minimum Fee, and Maximum Fee attributable to Cost Performance are identified by CLIN in the preceding breakout of Incentive Fee between Cost Performance and Technical Performance. Cost performance incentive fee is subject to downward adjustments described in paragraph c. below.

c. ADJUSTMENTS TO COST INCENTIVE FEE BASED ON TECHNICAL PERFORMANCE

Negative adjustments to the cost incentive fee (calculated in paragraph b. above) will apply when minimal technical performance metrics are not achieved by the contractor. The adjustments are stated in Section H.29. Under no circumstances will the annual incentive fee be less than minimum.

d. TECHNICAL PERFORMANCE (50%)

Technical performance will be evaluated for each of the three areas identified below for the stated technical parameters (Also see Section H.29):

Performance Area Performance Metrics

1. Sensor Maintenance Maintain Operational Availability of all RTS Instrumentation Systems

(Sensors)

2. Sensor Maintenance Maintain Operational Status of mandatory RTS Sensors during designated mission execution window

3. RTS Network Maintenance RTS System Network Availability

Target incentive fee will be adjusted upwards or downwards based on the contractor’s technical performance in each of the performance areas.

Performance Area - Metric Incentive Fee Adjustment

1. Sensor Maintenance - For operational availability above 98%, the performance Operational Availability area target fee increases linearly not to exceed the performance area maximum fee for each period. For operational availability from 95% to 98%, the performance area target fee decreases linearly to the performance area minimum. For operational availability below 95%, only minimum fee is earned.

2. Sensor Maintenance - For operational status above 99%, the performance area target Operational Status fee increases linearly to the performance area maximum fee for each period. For operational status from 98% to 99%, the performance area target fee decreases linearly to the performance area minimum. For operational status below 98%, only minimum fee is earned.

3. RTS Network Maintenance - For network availability above 99%, the performance area Network Availability target fee increases linearly to the performance area maximum fee for each period. For network availability from 95% to 99%, the performance area target fee decreases linearly to the performance area minimum fee. For network availability below 95%, only minimum fee is earned.

The Target Fee, Minimum Fee, and Maximum Fee available for Technical performance is identified by CLIN as follows ($ TBD in this section will be completed and updated based on estimated target costs for which funds are obligated to the contract):

CLIN 0001 Technical Performance Performance Performance Performance Area 1 (34%) Area 2 (33%) Area 3 (33%) Target Fee $ TBD $ TBD (34%) $ TBD (33%) $ TBD (33%) Minimum Fee $ 0.00 $ 0.00 $ 0.00 $ 0.00 Maximum Fee $ TBD $ TBD (34%) $ TBD (33%) $ TBD (33%)

CLIN 1001 Technical Performance Performance Performance

Performance Area 1 (34%) Area 2 (33%) Area 3 (33%) Target Fee $ TBD $ TBD (34%) $ TBD (33%) $ TBD (33%) Minimum Fee $ 0.00 $ 0.00 $ 0.00 $ 0.00 Maximum Fee $ TBD $ TBD (34%) $ TBD (33%) $ TBD (33%)

CLIN 2001 Technical Performance Performance Performance Performance Area 1 (34%) Area 2 (33%) Area 3 (33%) Target Fee $ TBD $ TBD (34%) $ TBD (33%) $ TBD (33%) Minimum Fee $ 0.00 $ 0.00 $ 0.00 $ 0.00 Maximum Fee $ TBD $ TBD (34%) $ TBD (33%) $ TBD (33%)

CLIN 3001 Technical Performance Performance Performance Performance Area 1 (34%) Area 2 (33%) Area 3 (33%) Target Fee $ TBD $ TBD (34%) $ TBD (33%) $ TBD (33%) Minimum Fee $ 0.00 $ 0.00 $ 0.00 $ 0.00 Maximum Fee $ TBD $ TBD (34%) $ TBD (33%) $ TBD (33%)

CLIN 4001 Technical Performance Performance Performance Performance Area 1 (34%) Area 2 (33%) Area 3 (33%) Target Fee $ TBD $ TBD (34%) $ TBD (33%) $ TBD (33%) Minimum Fee $ 0.00 $ 0.00 $ 0.00 $ 0.00 Maximum Fee $ TBD $ TBD (34%) $ TBD (33%) $ TBD (33%)

CLIN 5001 Technical Performance Performance Performance Performance Area 1 (34%) Area 2 (33%) Area 3 (33%) Target Fee $ TBD $ TBD (34%) $ TBD (33%) $ TBD (33%) Minimum Fee $ 0.00 $ 0.00 $ 0.00 $ 0.00 Maximum Fee $ TBD $ TBD (34%) $ TBD (33%) $ TBD (33%)

CLIN 6001 Technical Performance Performance Performance Performance Area 1 (34%) Area 2 (33%) Area 3 (33%) Target Fee $ TBD $ TBD (34%) $ TBD (33%) $ TBD (33%) Minimum Fee $ 0.00 $ 0.00 $ 0.00 $ 0.00 Maximum Fee $ TBD $ TBD (34%) $ TBD (33%) $ TBD (33%)

CLIN 7001 Technical Performance Performance Performance Performance Area 1 (34%) Area 2 (33%) Area 3 (33%) Target Fee $ TBD $ TBD (34%) $ TBD (33%) $ TBD (33%) Minimum Fee $ 0.00 $ 0.00 $ 0.00 $ 0.00 Maximum Fee $ TBD $ TBD (34%) $ TBD (33%) $ TBD (33%)

CLIN 8001 Technical Performance Performance Performance Performance Area 1 (34%) Area 2 (33%) Area 3 (33%) Target Fee $ TBD $ TBD (34%) $ TBD (33%) $ TBD (33%) Minimum Fee $ 0.00 $ 0.00 $ 0.00 $ 0.00 Maximum Fee $ TBD $ TBD (34%) $ TBD (33%) $ TBD (33%)

CLIN 9001 Technical Performance Performance Performance Performance Area 1 (34%) Area 2 (33%) Area 3 (33%) Target Fee $ TBD $ TBD (34%) $ TBD (33%) $ TBD (33%) Minimum Fee $ 0.00 $ 0.00 $ 0.00 $ 0.00 Maximum Fee $ TBD $ TBD (34%) $ TBD (33%) $ TBD (33%)

The following scenario is an example of the method the Government will use to calculate fee earned on the CPIF CLINs (Note: the estimated cost, estimated target fee and maximum fee used in this example is not indicative of what the Government anticipates for offerors to propose): Example will be forth coming.

Section E - Inspection and Acceptance

INSPECTION AND ACCEPTANCE TERMS

Supplies/services will be inspected/accepted at:

CLIN INSPECT AT INSPECT BY ACCEPT AT ACCEPT BY

0001 N/A N/A N/A Government 0002 N/A N/A N/A Government 0003 N/A N/A N/A Government 0004 N/A N/A N/A Government 0005 N/A N/A N/A Government 0006 N/A N/A N/A Government 0007 N/A N/A N/A Government 0008 N/A N/A N/A Government 0009 N/A N/A N/A Government 1001 N/A N/A N/A Government 2001 N/A N/A N/A Government 3001 N/A N/A N/A Government 4001 N/A N/A N/A Government 4002 N/A N/A N/A Government 4003 N/A N/A N/A Government 4004 N/A N/A N/A Government 4005 N/A N/A N/A Government 4006 N/A N/A N/A Government 4007 N/A N/A N/A Government 4008 N/A N/A N/A Government 5001 N/A N/A N/A Government 6001 N/A N/A N/A Government 6002 N/A N/A N/A Government 6003 N/A N/A N/A Government 6004 N/A N/A N/A Government 6005 N/A N/A N/A Government 6006 N/A N/A N/A Government 6007 N/A N/A N/A Government 6008 N/A N/A N/A Government 7001 N/A N/A N/A Government 8001 N/A N/A N/A Government 8002 N/A N/A N/A Government 8003 N/A N/A N/A Government 8004 N/A N/A N/A Government 8005 N/A N/A N/A Government 8006 N/A N/A N/A Government 8007 N/A N/A N/A Government 8008 N/A N/A N/A Government 9001 N/A N/A N/A Government 9002 N/A N/A N/A Government 9992 N/A N/A N/A Government 9993 N/A N/A N/A Government 9994 N/A N/A N/A Government

CLAUSES INCORPORATED BY REFERENCE

52.246-3 Inspection Of Supplies Cost-Reimbursement MAY 2001 52.246-5 Inspection Of Services Cost-Reimbursement APR 1984

CLAUSES INCORPORATED BY FULL TEXT

52.244-2 SUBCONTRACTS (OCT 2010)

(a) Definitions. As used in this clause--

Approved purchasing system means a Contractor's purchasing system that has been reviewed and approved in accordance with Part 44 of the Federal Acquisition Regulation (FAR).

Consent to subcontract means the Contracting Officer's written consent for the Contractor to enter into a particular subcontract.

Subcontract means any contract, as defined in FAR Subpart 2.1, entered into by a subcontractor to furnish supplies or services for performance of the prime contract or a subcontract. It includes, but is not limited to, purchase orders, and changes and modifications to purchase orders.

(b) When this clause is included in a fixed-price type contract, consent to subcontract is required only on unpriced contract actions (including unpriced modifications or unpriced delivery orders), and only if required in accordance with paragraph (c) or (d) of this clause.

(c) If the Contractor does not have an approved purchasing system, consent to subcontract is required for any subcontract that—

(1) Is of the cost-reimbursement, time-and-materials, or labor-hour type; or

(2) Is fixed-price and exceeds—

(i) For a contract awarded by the Department of Defense, the Coast Guard, or the National Aeronautics and Space Administration, the greater of the simplified acquisition threshold or 5 percent of the total estimated cost of the contract; or

(ii) For a contract awarded by a civilian agency other than the Coast Guard and the National Aeronautics and Space Administration, either the simplified acquisition threshold or 5 percent of the total estimated cost of the contract.

(d) If the Contractor has an approved purchasing system, the Contractor nevertheless shall obtain the Contracting Officer’s written consent before placing the following subcontracts:

(e)(1) The Contractor shall notify the Contracting Officer reasonably in advance of placing any subcontract or modification thereof for which consent is required under paragraph (b), (c), or (d) of this clause, including the following information:

(i) A description of the supplies or services to be subcontracted.

(ii) Identification of the type of subcontract to be used.

(iii) Identification of the proposed subcontractor.

(iv) The proposed subcontract price.

(v) The subcontractor’s current, complete, and accurate certified cost or pricing data and Certificate of Current Cost or Pricing Data, if required by other contract provisions.

(vi) The subcontractor’s Disclosure Statement or Certificate relating to Cost Accounting Standards when such data are required by other provisions of this contract.

(vii) A negotiation memorandum reflecting—

(A) The principal elements of the subcontract price negotiations;

(B) The most significant considerations controlling establishment of initial or revised prices;

(C) The reason certified cost or pricing data were or were not required;

(D) The extent, if any, to which the Contractor did not rely on the subcontractor’s certified cost or pricing data in determining the price objective and in negotiating the final price;

(E) The extent to which it was recognized in the negotiation that the subcontractor’s certified cost or pricing data were not accurate, complete, or current; the action taken by the Contractor and the subcontractor; and the effect of any such defective data on the total price negotiated;

(F) The reasons for any significant difference between the Contractor’s price objective and the price negotiated; and

(G) A complete explanation of the incentive fee or profit plan when incentives are used. The explanation shall identify each critical performance element, management decisions used to quantify each incentive element, reasons for the incentives, and a summary of all trade-off possibilities considered.

(2) The Contractor is not required to notify the Contracting Officer in advance of entering into any subcontract for which consent is not required under paragraph (c), (d), or (e) of this clause.

(f) Unless the consent or approval specifically provides otherwise, neither consent by the Contracting Officer to any subcontract nor approval of the Contractor’s purchasing system shall constitute a determination—

(1) Of the acceptability of any subcontract terms or conditions;

(2) Of the allowability of any cost under this contract; or

(3) To relieve the Contractor of any responsibility for performing this contract.

(g) No subcontract or modification thereof placed under this contract shall provide for payment on a cost-plus-a-percentage-of-cost basis, and any fee payable under cost-reimbursement type subcontracts shall not exceed the fee limitations in FAR 15.404-4(c)(4)(i).

(h) The Contractor shall give the Contracting Officer immediate written notice of any action or suit filed and prompt notice of any claim made against the Contractor by any subcontractor or vendor that, in the opinion of the Contractor, may result in litigation related in any way to this contract, with respect to which the Contractor may be entitled to reimbursement from the Government.

(i) The Government reserves the right to review the Contractor’s purchasing system as set forth in FAR Subpart 44.3.

(j) Paragraphs (c) and (e) of this clause do not apply to the following subcontracts, which were evaluated during negotiations:

(End of clause)

Section F - Deliveries or Performance

DELIVERY INFORMATION

CLIN DELIVERY DATE QUANTITY SHIP TO ADDRESS DODAAC

0001 90 dys. ADC N/A

0002 90 dys. ADC N/A

0003 90 dys. ADC N/A

0004 90 dys. ADC N/A

0005 90 dys. ADC N/A

0006 90 dys. ADC N/A

0007 90 dys. ADC N/A

0008 90 dys. ADC N/A

0009 ADC N/A

1001 1 yr. ADC N/A

2001 2 yrs. ADC N/A

3001 3 yrs. ADC N/A

4001 4 yrs. ADC N/A

4002 4 yrs. ADC N/A

4003 4 yrs. ADC N/A

4004 4 yrs. ADC N/A

4005 4 yrs. ADC N/A

4006 4 yrs. ADC N/A

4007 4 yrs. ADC N/A

4008 4 yrs. ADC N/A

5001 5 yrs. ADC N/A

6001 6 yrs. ADC N/A

6002 6 yrs. ADC N/A

6003 6 yrs. ADC N/A

6004 6 yrs. ADC N/A

6005 6 yrs. ADC N/A

6006 6 yrs. ADC N/A

6007 6 yrs. ADC N/A

6008 6 yrs. ADC N/A

7001 7 yrs. ADC N/A

8001 8 yrs. ADC N/A

8002 8 yrs. ADC N/A

8003 8 yrs. ADC N/A

8004 8 yrs. ADC N/A

8005 8 yrs. ADC N/A

8006 8 yrs. ADC N/A

8007 8 yrs. ADC N/A

8008 8 yrs. ADC N/A

9001 9 yrs. ADC N/A

9002 117 mths. ADC N/A

9992 ADC N/A N/A

9993 ADC N/A N/A

9994 ADC N/A N/A

52.242-15 Stop-Work Order AUG 1989 52.247-34 F.O.B. Destination NOV 1991 52.247-55 F.O.B. Point For Delivery Of Government-Furnished

Property

JUN 2003

Section G - Contract Administration Data

252.204-0012 INVOICING AND

PAYMENT INSTRUCTIONS FOR MULTIPLE ACCOUNTING CLASSIFICATION CITATIONS

This contract contains requirements and funding from multiple agencies using multiple Accounting Classification Reference Number (ACRN) and appropriations including but not limited to O&M and RDT&E. The order of the ARCNs invoiced cannot be determined until the work is completed by the contractor, therefore PGI 252.204-0001 – 0011 are not applicable. PGI 204.7108 (d) 012 Other is applicable and DFAS should pay as invoiced by the contractor.

The following instructions apply at the Contract Line Item Number (CLIN) or Subline Item Number (SLIN) level:

Consistent with billing instructions, the contractor shall segregate and accumulate costs for the performance of this contract by the appropriate ACRN listed in the Accounting Data provided in Section G. The contractor’s invoice shall identify the appropriate CLIN, SLIN, and the specific ACRN. Invoices submitted to the paying office that do not comply with this requirement will be returned to the contractor for resubmission. The contractor shall provide an electronic copy of each invoice to the Contracting Officer’s Representative at the time of submission to DCAA/DFAS. The payment office shall make payment from each ACRN in accordance with the amounts invoiced by CLIN/SLIN/ACRN as referenced on the contractor’s invoice. The contractor shall upload additional supporting documents for each payment as attachments within Wide Area Workflow (WAWF) for the associated invoice.

252.232-7003 Electronic Submission of Payment Requests and Receiving

Reports

JUN 2012

CLAUSES INCORPORATED BY FULL TEXT

252.232-7006 WIDE AREA WORKFLOW PAYMENT INSTRUCTIONS (MAY 2013)

(a) Definitions. As used in this clause--

Department of Defense Activity Address Code (DoDAAC) is a six position code that uniquely identifies a unit, activity, or organization.

Document type means the type of payment request or receiving report available for creation in Wide Area WorkFlow (WAWF).

Local processing office (LPO) is the office responsible for payment certification when payment certification is done external to the entitlement system.

(b) Electronic invoicing. The WAWF system is the method to electronically process vendor payment requests and receiving reports, as authorized by DFARS 252.232-7003, Electronic Submission of Payment Requests and Receiving Reports.

(c) WAWF access. To access WAWF, the contractor shall--

(1) Have a designated electronic business point of contact in the System for Award Management at https://www.acquisition.gov; and

(2) Be registered to use WAWF at https://wawf.eb.mil/ following the step-by-step procedures for self-registration available at this Web site.

(d) WAWF training. The contractor should follow the training instructions of the WAWF Web-Based Training Course and use the Practice Training Site before submitting payment requests through WAWF. Both can be accessed by selecting the “Web Based Training” link on the WAWF home page at https://wawf.eb.mil/.

(e) WAWF methods of document submission. Document submissions may be via Web entry, Electronic Data Interchange, or File Transfer Protocol.

(f) WAWF payment instructions. The contractor must use the following information when submitting payment requests and receiving reports in WAWF for this contract/order:

(1) Document type. The contractor shall use the following document type(s).

Services (Cost Type) – Select Cost Voucher

(2) Inspection/acceptance location. The contractor shall select the following inspection/acceptance location(s) in WAWF, as specified by the contracting officer.

W31RPD

W4T8 USASMDC HUNTSVILLE

P.O. BOX 1500

Redstone Arsenal, AL 35807-3807

(3) Document routing. The contractor shall use the information in the Routing Data Table below only to fill in applicable fields in WAWF when creating payment requests and receiving reports in the system.

Routing Data Table* Field Name in WAWF Data to be entered in WAWF Pay Official DoDAAC HQ0339 Issue By DoDAAC W9113M Admin DoDAAC W9113M Inspect By DoDAAC N/A Ship To Code W31RPD Ship From Code N/A Mark For Code N/A Service Approver (DoDAAC) W31RPD Service Acceptor (DoDAAC) W31RPD Accept at Other DoDAAC N/A LPO DoDAAC N/A DCAA Auditor DoDAAC TO BE FILLED OUT AT AWARD Other DoDAAC(s) N/A

(*Contracting Officer: Insert applicable DoDAAC information or “See schedule” if multiple ship to/acceptance locations apply, or “Not applicable.”)

(4) Payment request and supporting documentation. The contractor shall ensure a payment request includes appropriate contract line item and subline item descriptions of the work performed or supplies delivered, unit price/cost per unit, fee (if applicable), and all relevant back-up documentation, as defined in DFARS Appendix F, (e.g. timesheets) in support of each payment request.

(5) WAWF email notifications. The contractor shall enter the email address identified below in the “Send Additional Email Notifications” field of WAWF once a document is submitted in the system.

TBD - Contracting Officers Representative.

S. Kay Harris; (256) 955-5907; sharon.k.harris22.civ@mail.mil, Contracting Officer.

(g) WAWF point of contact. (1) The contractor may obtain clarification regarding invoicing in WAWF from the following contracting activity's WAWF point of contact.

Jessie Y. Moore; Jessie.y.more.civ@mail.mil

(2) For technical WAWF help, contact the WAWF helpdesk at 866-618-5988.

(End of clause)

Section H - Special Contract Requirements

H.1 NON-GOVERNMENT ADVISORS

IN THE SOURCE SELECTION PROCESS

a. These individuals will be authorized access only to those portions of the proposal data and discussions that are necessary to enable them to perform their respective duties. Such firms are expressly prohibited from competing on the subject acquisition. Listed below are the points of contact for these firms, and their phone numbers.

TBD, LTSS Consulting, LLC, TBD, Massachusetts Institute of Technology Lincoln Laboratory (MIT-LL), TBD, Mb Solution Inc., and, TBD, Warfighter Solutions.

b. In accomplishing their duties related to the source selection process, the aforementioned firms may require access to proprietary information contained in the offerors' proposals. Therefore, pursuant to FAR Part 9.505-4, these firms must execute an agreement with each offeror that states that they will (1) protect the offerors’ information from unauthorized use or disclosure for as long as it remains proprietary and (2) refrain from using the information for any purpose other than that for which it was furnished. To expedite the evaluation process, each offeror must contact the above companies to effect execution of such an agreement prior to the submission of proposals. Each offeror shall submit copies of the agreement with its proposal.

H.2 COMPLIANCE WITH THE

COMPACT OF FREE ASSOCIATIOH.1 N AND IMPLEMENTING AGREEMENTS

Consistent with Sections 321 and 323 of Title Three, Article II of the Compact of Free Association Act of 1985 (Compact), PL 99-239, January 14, 1986, effective 21 October 1986, the United States (U.S.) has entered into two agreements with the Government of the Republic of the Marshall Islands (RMI), concerning U.S. use and operation of the U.S. Army Kwajalein Atoll/Reagan Test Site (USAG-KA/RTS). These implementing agreements are: (1) Military Use and Operating Rights Agreement (MUORA) and (2) Status of Forces Agreement (SOFA). While the contractor must ensure that its performance under the contract is in compliance with all applicable provisions of the Compact and the implementing agreements, of particular significance are the following provisions, which affect the employment of personnel:

a. MUORA Article VIII - Employment of Labor. This article includes provisions dealing with (i) “grandfathering” of wages of local hire personnel employed by U.S. contractors; and (ii) equal pay for equal work in the employment of local hire personnel. Local hire personnel is defined in Article I, Section 2(f), of the SOFA as citizens and nationals of the Republic of the Marshall Islands, who are employed in the Marshall Islands by the Armed Forces of the United States or U.S. contractors. In implementation of these provisions, the contractor shall ensure that local hire personnel employed on the effective date of the Compact shall continue to receive wages no less than wages paid as of the effective date of the Compact October 21, 1986. Wages, for the purpose of insuring “grandfathering” of wages, is defined as (a) actual base pay; (b) employee fringe benefits e.g., vacation and sick leave, group insurance, hazardous pay, pension, and holidays; and (c) overtime pay as required by the Contract Work Hours and Safety Standards Act (CWHSSA). For example, if local hire personnel employed on the effective date of the Compact as carpenters were paid $5.00 per hour base pay, fringe benefits, and $7.50 per hour for overtime, after the effective date of the Compact such local hire personnel shall be paid a wage not less than $5.00 per hour base pay, $7.50 per hour for overtime worked, and the same fringe benefits. Further, Grandfathered Marshallese employees must receive a wage, which is not less than the wage paid for equal work to U.S./third country employees. In contrast, local hire personnel newly employed after the effective date of the Compact may be paid a wage consistent with the minimum wage laws of the Marshall Islands, provided the minimum wage does not exceed the prevailing minimum wage in the United States, and the wage provides equal pay for equal work among such local hire personnel.

Further, locally hired non-grandfathered Marshallese employees must receive a wage which is not less than the wage paid for equal work to any U.S./third country employees who are hired in the RMI; however, they may be paid a wage which is less than the wage(s) paid for equal work to grandfathered Marshallese employees and to U.S./third country employees hired outside the RMI. For purposes of interpreting this special provision, allowances/benefits, which relate to Foreign Service of employees hired outside the RMI (e.g., relocation/dislocation allowances, foreign pay differentials, transportation costs) are not considered to be part of the wages paid to such employees; and nothing herein requires that such Foreign Service allowances/benefits be paid to employees hired in the RMI.

b. SOFA Article IV, Utilization of Contractors and Employment of Labor. This article includes provisions dealing with (i) employment preference for citizens, nationals, and permanent resident aliens of the RMI, Federated States of Micronesia (FSM), and of the U.S.; and (ii) U.S. contractors use of best efforts to employee persons present in the RMI and FSM. In implementation of these provisions, the contractor shall give preference in hiring to citizens, nationals, and permanent resident aliens of the RMI, FSM, and the United States. This includes dependents as defined in Article I, Section 2(d) (4) of the SOFA. The contractor shall not employ or continue employment of third country personnel as defined in Article I, Section 2(e) of the SOFA without the prior written permission of the Contracting Officer. It is anticipated that permission to hire third country personnel will be given only in limited and exceptional circumstances. Therefore, the contractor should rely on third country personnel as a labor source in performance of this contract only in the exceptional situation where qualified citizens, nationals, and permanent resident aliens of the RMI, FSM, and the United States are not available.

Marshallese citizens/nationals, as well as other employees, shall be given equal consideration for promotion to positions for which they are qualified.

H.3 APPLICATION OF UNITED

STATES LAWS IN THE REPUBLIC OF THE MARSHALL ISLAND

a. Section 171 of Article Two, Title VII of the Compact of Free Association Act of 1985, PL 99-239, January 14, 1986, states: Except as provided in this Compact or its related agreements, the application of the Laws of the United States to the Trust Territory of the Pacific Islands by virtue of the Trusteeship Agreement ceases with respect to the Marshall Islands and the Federated States of Micronesia as of…