W9127818R0001-0001 Amendment_Modification.pdf

AMENDMENT OF SOLICITATION/MODIFICATION OF CONTRACT 1. CONTRACT ID CODE PAGE OF PAGES

1 2

2. AMENDMENT/MODIFICATION NO. 3. EFFECTIVE 4. REQUISITION/PURCHASE 5. PROJECT NO. (If applicable)

W9127818R0001-0001 13 FEB 2020

6. ISSUED BY CODE 7. ADMINISTERED BY(If other than item 6)

CODE

Corps of Engineers 109 St. Joseph St.

Mobile, AL 36602

8. NAME AND ADDRESS OF CONTRACTOR (No., street, county, State and ZIP code) 9A. AMENDMENT OF SOLICITATION

NO.

W9127818R0001

9B. DATED (SEE ITEM 11)

24 JAN 2020

10A. MODIFICATION OF

CONTRACT/ORDER NO.

10B. DATED (SEE ITEM 13)

CODE

FACILITY CODE

11. THIS ITEM ONLY APPLIES TO AMENDMENTS OF SOLICITATIONS

The above numbered solicitation is amended as set forth in item 14. The hour and date specified for receipt of Offers is extended, is not extended. Offers must acknowledge receipt of this amendment prior to the hour and date specified in the solicitation or as amended, by one of the following methods: (a) By completing items 8 and 15, and returning copies of the amendment; (b) By acknowledging receipt of this amendment on each copy of the offer submitted; or (c) By separate letter or telegram which includes a reference to the solicitation and amendment numbers. FAILURE OF YOUR ACKNOWLEDGEMENT TO BE RECEIVED AT THE PLACE DESIGNATED FOR THE RECEIPT OF OFFERS PRIOR TO THE HOUR AND DATE SPECIFIED MAY RESULT IN REJECTION OF YOUR OFFER. If by virtue of this amendment you desire to change an offer already submitted, such change may be made by telegram or letter, provided each telegram or letter makes reference to the solicitation and this amendment, and is received prior to the opening hour and date specified.

12. ACCOUNTING AND APPROPRIATION DATA (if required)

13. THIS ITEM APPLIES ONLY TO MODIFICATIONS OF CONTRACTS/ORDERS,

IT MODIFIES THE CONTRACT/ORDER NO. AS DESCRIBED IN ITEM 14.

A. THIS CHANGE ORDER IS ISSUED PURSUANT TO: (Specify authority)

THE CHANGES SET FORTH IN ITEM 14 ARE MADE IN THE CONTRACT ORDER NO. IN ITEM 10A

B. THE ABOVE NUMBERED CONTRACT/ORDER IS MODIFIED TO REFLECT ADMINISTRATIVE CHANGES (such as changes in paying office, appropriation date, etc.) SET FORTH IN ITEM 14, PURSUANT TO AUTHORITY OF FAR 43.103(b)

C. THIS SUPPLEMENTAL AGREEMENT IS ENTERED INTO PURSUANT TO AUTHORITY OF:

D. OTHER (Specify type of modification and authority)

E. IMPORTANT: Contractor is not, is required to sign this document and return copies to the issuing office.

14. DESCRIPTION OF AMENDMENT/MODIFICATION (Organized by UCF section headings, including solicitation/contract subject matter where feasible)

The subject solicitation for: TWO-PHASE SOUTH REGION UNRESTRICTED MULTIPLE AWARD TASK ORDER CONTRACT (MATOC), MOBILE DISTRICT AOR

Is modified in the following: REFER TO THE ENCLOSED REVISED SPECIFICATIONS FOR AMENDMENT NO. 0001

Except as provided herein, all terms and conditions of the document reference in item 9A or 10A, as Heretofore changed, remains unchanged and in full force and effect.

15A. NAME AND TITLE OF SIGNER (Type or print) 16A. NAME AND TITLE OF CONTRACTING OFFICE (Type or print)

15B. CONTRACTOR/OFFEROR

(Signature of person authorized to sign)

15C. DATE SIGNED 16B. UNITED STATES OF AMERICA

BY

(Signature of contracting officer)

16C. DATE SIGNED

NSN 7540-01-152-8070 30-105 STANDARD FORM 30 (REV. 10-83)

PREVIOUS EDITION UNUSABLE Prescribed by GSA

Two-Phase South Region Unrestricted MATOC W9127818R0001 Mobile District AOR

SF 30 Page 2 W9127818R0001-0001

PART I - REVISIONS MADE BY ADDED AND/OR REPLACEMENT PARAGRAPHS/PAGES/SECTIONS

The items listed below are to be replaced by the corresponding added and/or revised paragraphs/pages or sections. Added and/or revised paragraphs/pages or sections are indicated by a note in bottom right hand corner of each paragraph or page. Added sections are hereby made a part of the contract and are to be inserted in the specification in the proper numerical/alphabetical sequence.

Within the specifications, deletions from the specifications are indicated by strikethrough, e.g.: deletions are marked with strikethrough and additions to the specifications including revisions/substitutions are indicated in bold, italic and underlined, e.g.: additions are indicated thus.

Corresponding Added or Revised Paragraph SECTION Page, and/or Section

00 11 00 Revised Paragraph 4.2

00 12 00 Revised Paragraph 3.6.1

00 70 00 Revised Section 00 70 00 Table of Contents

Revised Clause 52.236-1

Deleted Clauses 52.230-2, 52.230-6, 252.242-7005 and 252.242-7006

01 00 02 Revised Paragraph 6.0

Encl as stated:

Revised pages of the specifications as indicated in Part I.

SECTION 00 11 00

Revised by AMENDMENT NO. W9127818R0001-0001

SECTION 00 11 00

4.2 Volume II - Tab A, Factor 1 – Past Performance Information of the Prime Contractor. The Past Performance of the Prime Contractor (Offeror) consists of (a) Relevant Company Effort and (b) Quality of Past Performance. The Government will review recent, relevant company efforts and quality information provided by the owners of those efforts to assess the Offeror’s past experience and probability of successfully performing the work described in this solicitation. For this factor, a recent, relevant project is a construction project:

(a) Performed under a contract or task order, as those terms are defined in FAR 2.101, for the Federal Government, or similar contractual agreements for State or Local Governments, or the commercial or private sector. (Multiple projects under a single contract or task order are considered one project. However, do not combine multiple projects under separate contracts or task orders to create a single project.);

(b) That is “recent”; one that has been completed within eight (8) six

(6) years of the solicitation issue date, or one where the construction is at least 50% complete (measured by performance period days) as of the solicitation issue date. (Offerors are responsible for providing start and completion dates for each completed project, or the start and scheduled completion dates for projects currently under construction.);

(c) That is “relevant”; one that is similar in scope (type, size, complexity and dollar value) to the project types described in this solicitation. In terms of dollar value, a relevant project is one ranging from $18M to $50M; however, projects outside of this dollar range may be considered when similar in scope and complexity. For a project to be assessed any degree of “relevancy” it must reflect performance of design, repair, and construction requirements as described by this solicitation.

(NOTE: The remainder of the section is unchanged by the amendment.)

This page was intentionally left blank for duplex printing.

SECTION 00 12 00

Revised by AMENDMENT NO. W9127818R0001-0001

Section 00 12 00

3.6.1 The offeror is to submit the following information: (1) Standard Form 1442, and acknowledgement of all amendments (2) proposal bid schedules, (3) representations and certification, and (4) most recent Financial Statement.

In Volume IV, offerors shall also submit the required pre-award information, which includes but is not limited to:

(a) A list of present commitments, including the dollar value thereof.

Include names and telephone numbers of personnel within the organization who are familiar with company’s performance. For a newly formed Joint Venture (JV), each JV partner must submit a list of present commitments.

(b) Bid Bonds as required by Section 00 70 00.

(c) Representations and Certifications as required by Section 00 45 00.

(d) All other documentation as identified in the Contract Clauses specifications sections within this solicitation.

00 70 00 – Page 1

Unrestricted MATOC W9127818R0001

Section 00 70 00 – Conditions of the Contract

Table of Contents 52.202-1 -- Definitions…………………………………………………………………………..8

52.203-3 – Gratuities……………………………………………………………………………8

52.203-5 -- Covenant Against Contingent Fees……………………………………………….9

52.203-6 -- Restrictions on Subcontractor Sales to the Government………………………..9

52.203-7 -- Anti-Kickback Procedures……………………………………………………….10

52.203-8 -- Cancellation, Rescission, and Recovery of Funds for Illegal or Improper Activity…………………………………………………………………………………….…...12

52.203-10 -- Price or Fee Adjustment for Illegal or Improper Activity……………………12

52.203-12 -- Limitation on Payments to Influence Certain Federal Transactions………...14

52.203-13 – Contractor Code of Business Ethics and Conduct……………………………..18

52.203-17 – Contractor Employee Whistleblower Rights and Requirement To Inform Employees of Whistleblower Rights………………………………………………………….23

52.203-19 – Prohibition on Requiring Certain Internal Confidentiality Agreements or Statements……………………………………………………………………………………...23

52.204-2 -- Security Requirements (Alternate II)…………………………………………

52.204-4 -- Printed or Copied Double-Sided on Postconsumer Fiber Content Paper…….25

52.204-9 -- Personal Identity Verification of Contractor Personnel……………………….25

52.204-10 – Reporting Executive Compensation and First-Tier Subcontract Awards…...26

52.204-13 – System for Award Management Maintenance…………………………………30

52.204-18 Commercial and Government Entity Code Maintenance……………………….32

52.204-19 – Incorporation by Reference of Representations and Certifications…………..33

52.204-21 – Basic Safeguarding of Covered Contractor Information Systems…………….33

52.204-23-Prohibition on Contracting for Hardware, Software, and Services Developed or Provided by Kaspersky Lab and Other Covered Entities…………………………………..35

Revised by Amendment No. W9127818R0001-0001

00 70 00 – Page 2

52.209-6 -- Protecting the Governments Interest When Subcontracting with Contractors Debarred, Suspended, or Proposed for Debarment………………….……………………..37

52.209-7 – Information Regarding Responsibility Matters………………………………...38

52.209-9 – Updates of Publicly Available Information Regarding Responsibility Matters.39

52.209-10 – Prohibition on Contracting With Inverted Domestic Corporations………….41

52.210-1 – Market Research……………………………………………………….…….……41

52.211-10 -- Commencement, Prosecution, and Completion of Work…………………..…42

52.211-12 -- Liquidated Damages – Construction……………………...……………………42

52.211-13 -- Time Extensions………………………………………………………………….43

52.211-18 -- Variation in Estimated Quantity………………………………………………..43

52.215-2 -- Audit and Records – Negotiation……………………………………...…………43

52.215-10 -- Price Reduction for Defective Certified Cost or Pricing Data………………..45

52.215-11 -- Price Reduction for Defective Certified Cost or Pricing Data – Mods………47

52.215-12 -- Subcontractor Certified Cost or Pricing Data-Class Deviation 2018-O0015..49

52.215-15 -- Pension Adjustments and Asset Reversions………………..………………….51

52.215-18 -- Reversion or Adjustment of Plans for Postretirement Benefits (PRB) Other Than Pensions…………………………………………………………………………….…...52

52.215-19 -- Notification of Ownership Changes…………………………………………….52

52.215-20 -- Requirements for Certified Cost or Pricing Data and Data Other Than Certified Cost or Pricing Data………………………………………………………...………53

52.215-21 -- Requirements for Certified Cost or Pricing Data and Data Other Than Certified Cost or Pricing Data – Modifications………………………………………………54

52.216-19 -- Order Limitations…………………..……………………………………………56

52.216-22 -- Indefinite Quantity……………………………………………………………….57

52.217-7 -- Option for Increased Quantity -- Separately Priced Line Item……..…………58

52.219-8 -- Utilization of Small Business Concerns…………………………………….……58

52.219-9 -- Small Business Subcontracting Plan - Alternate II-DEVIATION 2018-O0018..61

52.219-16 -- Liquidated Damages -- Subcontracting Plan…………………………………..73

52.222-1 -- Notice to the Government of Labor Disputes…………………………………...74

52.222-3 -- Convict Labor……………………………………………………………………..74

00 70 00 – Page 3

52.222-4 -- Contract Work Hours and Safety Standards -- Overtime Compensation...…..75

52.222-6 – Construction Wage Rate Requirements..........................................................…...76

52.222-7 -- Withholding of Funds………………………………………..……………………79

52.222-8 -- Payrolls and Basic Records……………………………….………………………80

52.222-9 -- Apprentices and Trainees…………………………………………………………81

52.222-10 -- Compliance with Copeland Act Requirements…………………………………83

52.222-11 -- Subcontracts (Labor Standards)……………………………………………...…83

52.222-12 -- Contract Termination – Debarment..............................................................…...85

52.222-13 -- Compliance with Construction Wage Rate Requirements and Related Regulations………………………………………………………………………………..……86

52.222-14 -- Disputes Concerning Labor Standards…………………………………………86

52.222-15 -- Certification of Eligibility………………………………………………….……86

52.222-21 -- Prohibition of Segregated Facilities……………………………………….……86

52.222-26 -- Equal Opportunity………………………………………………………………87

52.222-27 -- Affirmative Action Compliance Requirements for Construction

52.222-35 -- Equal Opportunity for Veterans……………………………………………..…97

52.222-36 – Equal Opportunity for Workers With Disabilities………………………….…97

52.222-40 – Notification of Employee Rights Under the National Labor Relations Act….98

52.222-50 -- Combating Trafficking in Persons……………………………………..………99

52.222-54 – Employment Eligibility Verification……………………………………..……108

52.222-55 -- Minimum Wages Under Executive Order 13658…………………….………111

52.222-62 Paid Sick Leave Under Executive Order 13706…………………………...……116

52.223-2 -- Affirmative Procurement of Biobased Products Under Service And Construction Contracts………………………………………………………………………122

52.223-3 -- Hazardous Material Identification and Material Safety Data……………..…123

52.223-5 -- Pollution Prevention and Right-to-Know Information……………….………125

52.223-6 -- Drug-Free Workplace……………………………………………………………126

52.223-15 – Energy Efficiency in Energy-Consuming Products………………………...…128

00 70 00 – Page 4

52.223-17 – Affirmative Procurement of EPA-Designated Items in Service and Construction Contracts…………………………………………………………………..….129

52.223-18 – Encouraging Contractor Policies to Ban Text Messaging While Driving..…129

52.223-21 -- Foams……………………………………………………………………………130

52.225-11 -- Buy American—Construction Materials under Trade Agreements……..…131

52.225-12 -- Notice of Buy American Requirement—Construction Materials Under Trade Agreements……………………………………………………………………………………136

52.225-13 -- Restrictions on Certain Foreign Purchases…………………………..………138

52.227-1 -- Authorization and Consent…………………………………………..…………138

52.227-2 -- Notice and Assistance Regarding Patent and Copyright Infringement...……139

52.227-4 -- Patent Indemnity -- Construction Contracts……………………..……………139

52.227-14 -- Rights in Data – General………………………………………………………139

52.227-23 -- Rights to Proposal Data (Technical)……………………………………..……145

52.228-2 -- Additional Bond Security………………………………………………………..145

52.228-5 -- Insurance -- Work on a Government Installation………………………..……146

52.228-11 -- Pledges of Assets……………………………………………………………..…146

52.228-12 -- Prospective Subcontractor Requests for Bonds……………………..……….147

52.228-14 -- Irrevocable Letter of Credit…………………………………...………………148

52.228-15 -- Performance and Payment Bonds – Construction……………………………152

52.229-3 -- Federal, State, and Local Taxes…………………………………………………153

52.230-2 -- Cost Accounting Standards. (Deviation 2018-O0015)…………………………155

52.230-6 -- Administration of Cost Accounting Standards…………………………………159

52.232-5 -- Payments Under Fixed-Price Construction Contracts………………...………168

52.232-17 -- Interest………………………………………………………………………..…171

52.232-23 -- Assignment of Claims………………………………………………….………172

52.232-27 -- Prompt Payment for Construction Contracts………………………..………173

52.232-33 -- Payment by Electronic Funds Transfer-- System for Award Management..181

52.232-39 – Unenforceability of Unauthorized Obligations………………………….……183

52.232-40 – Providing Accelerated Payments to Small Business Subcontractors…….…184

00 70 00 – Page 5

52.233-1 -- Disputes………………………………………………………….……………….185

52.233-2 -- Service of Protest…………………………………………………………...……186

52.233-3 -- Protest After Award………………………………………………………..……187

52.233-4 -- Applicable Law for Breach of Contract Claim……………………………..…188

52.236-1 -- Performance of Work by the Contractor…………………………………...….188

52.236-2 -- Differing Site Conditions……………………………………………………..…188

52.236-3 -- Site Investigation and Conditions Affecting the Work…………………..……189

52.236-5 -- Material and Workmanship……………………………………………….……190

52.236-6 -- Superintendence by the Contractor………………………………………….…190

52.236-7 -- Permits and Responsibilities…………………………………………………….191

52.236-8 -- Other Contracts……………………………………………………………….…191

52.236-9 -- Protection of Existing Vegetation, Structures, Equipment, Utilities, and Improvements…………………………………………………………………………..…….191

52.236-10 -- Operations and Storage Areas…………………………………………………192

52.236-11 -- Use and Possession Prior to Completion………………………………………192

52.236-12 -- Cleaning Up……………………………………………………………….……193

52.236-13 -- Accident Prevention……………………………………………………………193

52.236-14 -- Availability and Use of Utility Services………………………………………194

52.236-15 -- Schedules for Construction Contracts………………………………………..195

52.236-17 -- Layout of Work……………………………………………………...…………195

52.236-21 -- Specifications and Drawings for Construction…………………………….…196

52.236-26 -- Preconstruction Conference……………………………………………………197

52.242-5 – Payments to Small Business Subcontractors……………………………………197

52.242-13 -- Bankruptcy………………………………………………………………………198

52.242-14 -- Suspension of Work………………………………………………………….…198

52.243-4 -- Changes………………………………………………………………………...…199

52.244-6 -- Subcontracts for Commercial Items……………………………………………200

52.246-12 -- Inspection of Construction………………………………………………….…203

52.246-21 -- Warranty of Construction…………………………………………………..…204

00 70 00 – Page 6

052.248-3 -- Value Engineering – Construction……………………………………………..205

52.249-2 -- Termination for Convenience of the Government (Fixed-Price) Alternate I…209

52.249-10 -- Default (Fixed-Price Construction)…………………………………………….213

52.253-1 -- Computer Generated Forms………………………………………………….…215

252.201-7000 Contracting Officer's Representative……………………………………..…215

252.203-7000 Requirements Relating to Compensation of Former DoD Officials…….…215

252.203-7001 Prohibition on Persons Convicted of Fraud or Other Defense Contract- Related Felonies………………………………………………………………………………217

252.203-7004 Display of Hotline Posters……………………………………………………218

252.204-7000 Disclosure of Information………………………………………………….…219

252.204-7003 Control of Government Personnel Work Product…………………………220

252.204-7005 Oral Attestation of Security Responsibilities…………………………….…220

252.204-7012 Safeguarding Covered Defense Information & Cyber Incident Reporting.220

252.204-7015 Notice of Authorized Disclosure of Information for Litigation Support….227

252.205-7000 Provision of Information to Cooperative Agreement Holders…………..…228

252.209-7004 Subcontracting with Firms that are Owned or Controlled by the Government of a Country that is a State Sponsor of Terrorism…………………………………………228

252.216-7006 Ordering………………………………………………………………………..229

252.219-7003 Small Business Subcontracting Plan (DoD Contracts)…………………..…229

252.223-7001 Hazard Warning Labels……………………………..……………………….231

252.223-7004 Drug-Free Work Force………………………………………………………232

252.223-7008 Prohibition of Hexavalent Chromium………………………………………234

252.225-7012 Preference for Certain Domestic Commodities……………………….……235

252.225-7048 Export-Controlled Items………………………………………………..……238

252.227-7022 Government Rights (Unlimited)……………………………..………………239

252.227-7023 Drawings and Other Data to Become Property of Government…………..240

252.227-7030 Technical Data--Withholding of Payment………………………………..…240

252.227-7033 Rights in Shop Drawings………………………………………………….….240

252.232-7003 Electronic Submission of Payment Requests and Receiving Reports……..241

00 70 00 – Page 7

252.232-7010 Levies on Contract Payments………………………………..………………242

252.236-7000 Modification Proposals--Price Breakdown………………………………….243

252.236-7001 Contract Drawings and Specifications……………………..……………….244

252.236-7008 Contract Prices--Bidding Schedules…………………………………………244

252.236-7013 Requirement for Competition Opportunity for American Steel Producers, Fabricators, and Manufacturers…………………………………………………………….245

252.242-7005 Contractor Business Systems…………………………………………...……245

252.242-7006 Accounting System Administration………………………………………….250

252.243-7001 Pricing of Contract Modifications……………………………………………253

252.243-7002 Requests for Equitable Adjustment………………………………………….253

252.244-7000 Subcontracts for Commercial Items………………………………………….254

252.246-7004 Safety of Facilities, Infrastructure, and Equipment for Military

Operations……………………………………………………………………………………..255

UAI 5152.222-9000 Contractor Supply and Use of Electronic Software for Processing Wage Rate Requirements Statute Certified Labor Payrolls…………………………..………….256

UAI 5152.231-9000 Equipment Ownership and Operating Expense Schedule…….….…257

UAI 5152.236-9009 Partnering……………………………………………………………….258

UAI 5152.249-9000 Basis for Settlement of Proposals………………………………………258

UAI 5152.236-9000 Design-Build Contract Order of Precedence……………………… …259

UAI 5152.236-9001 Personnel, Subcontractors, and Outside Associates or Consultants...259

UAI 5152.236-9002 Government-Furnished Specifications, Drawings, Surveys, and Specifications in the Request for Proposal……………………………………………....….260

UAI 5152.236-9003 Government-Furnished Specifications and Drawings for Construction………………………………………………………………………………….260

UAI 5152.236-9004 Responsibility of the Contractor for Design………………………….260

UAI 5152.236-9005 Warranty of Design……………………………………………………261

UAI 5152.236-9006 Deviating from the Accepted Design…………………………………261

UAI 5152.236-9007 Contractor's Role During Design Process……………………………262

UAI 5152.236-9008 Value Engineering after Award………………………………………262

UAI 5152.236-9010 Government Re-Use of Design…………………………………..……263

SECTION 00 70 00

52.236-1 -- Performance of Work by the Contractor.

As prescribed in 36.501(b), insert the following clause. [Complete the clause by inserting the appropriate percentage consistent with the complexity and magnitude of the work and customary or necessary specialty subcontracting (see 36.501(a)).]

Performance of Work by the Contractor (Apr 1984)

The Contractor shall perform on the site, and with its own organization, work equivalent to at least fifteen (15) [insert the appropriate number in words followed by numerals in parentheses] percent of the total amount of work to be performed under the contract. This percentage may be reduced by a supplemental agreement to this contract if, during performing the work, the Contractor requests a reduction and the Contracting Officer determines that the reduction would be to the advantage of the Government.

(End of Clause)

52.230-2 -- Cost Accounting Standards. (Deviation 2018-O0015).

(a) Unless the contract is exempt under 48 CFR 9903.201-1 and 9903.201-2, the provisions of 48 CFR Part 9903 are incorporated herein by reference and the Contractor, in connection with this contract, shall --

(1) (CAS-covered Contracts Only) By submission of a Disclosure Statement, disclose in writing the Contractor’s cost accounting practices as required by 48 CFR 9903.202-1 through 9903.202-5, including methods of distinguishing direct costs from indirect costs and the basis used for allocating indirect costs. The practices disclosed for this contract shall be the same as the practices currently disclosed and applied on all other contracts and subcontracts being performed by the Contractor and which contain a Cost Accounting Standards (CAS) clause. If the Contractor has notified the Contracting Officer that the Disclosure Statement contains trade secrets and commercial or financial information which is privileged and confidential, the Disclosure Statement shall be protected and shall not be released outside of the Government.

(2) Follow consistently the Contractor’s cost accounting practices in accumulating and reporting contract performance cost data concerning this contract. If any change in cost accounting practices is made for the purposes of any contract or subcontract subject to CAS requirements, the change must be applied prospectively to this contract and the Disclosure Statement must be amended accordingly. If the contract price or cost allowance of this contract is affected by such changes, adjustment shall be made in accordance with subparagraph (a)(4) or (a)(5) of this clause, as appropriate.

(3) Comply with all CAS, including any modifications and interpretations indicated thereto contained in 48 CFR Part 9904, in effect on the date of award of this contract or, if the Contractor has submitted certified cost or pricing data, on the date of final agreement on price as shown on the Contractor’s signed certificate of current cost or pricing data. The Contractor shall also comply with any CAS (or modifications to CAS) which hereafter become applicable to a contract or subcontract of the Contractor. Such compliance shall be required prospectively from the date of applicability to such contract or subcontract.

(4)

(i) Agree to an equitable adjustment as provided in the Changes clause of this contract if the contract cost is affected by a change which, pursuant to subparagraph (a)(3) of this clause, the Contractor is required to make to the Contractor’s established cost accounting practices.

(ii) Negotiate with the Contracting Officer to determine the terms and conditions under which a change may be made to a cost accounting practice, other than a change made under other provisions of subparagraph (a)(4) of this clause;

provided that no agreement may be made under this provision that will increase costs paid by the United States.

(iii) When the parties agree to a change to a cost accounting practice, other than a change under subdivision (a)(4)(i) of this clause, negotiate an equitable adjustment as provided in the Changes clause of this contract.

(5) Agree to an adjustment of the contract price or cost allowance, as appropriate, if the Contractor or a subcontractor fails to comply with an applicable Cost Accounting Standard, or to follow any cost accounting practice consistently and such failure results in any increased costs paid by the United States. Such adjustment shall provide for recovery of the increased costs to the United States, together with interest thereon computed at the annual rate established under section 6621(a)(2) of the Internal Revenue Code of 1986 (26 U.S.C.6621(a)(2)) for such period, from the time the payment by the United States was made to the time the adjustment is effected. In no case shall the Government recover costs greater than the increased cost to the Government, in the aggregate, on the relevant contracts subject to the price adjustment, unless the Contractor made a change in its cost accounting practices of which it was aware or should have been aware at the time of price negotiations and which it failed to disclose to the Government.

(b) If the parties fail to agree whether the Contractor or a subcontractor has complied with an applicable CAS in 48 CFR 9904 or a CAS rule or regulation in 48 CFR 9903 and as to any cost adjustment demanded by the United States, such failure to agree will constitute a dispute under 41 U.S.C. chapter 71, Contract Disputes.

(c) The Contractor shall permit any authorized representatives of the Government to examine and make copies of any documents, papers, or records relating to compliance with the requirements of this clause.

(d) The Contractor shall include in all negotiated subcontracts which the Contractor enters into, the substance of this clause, except paragraph (b), and shall require such inclusion in all other subcontracts, of any tier, including the obligation to comply with all CAS in effect on the subcontractor’s award date or if the subcontractor has submitted certified cost or pricing data, on the date of final agreement on price as shown on the subcontractor’s signed Certificate of Current Cost or Pricing Data. If the subcontract is awarded to a business unit which pursuant to 48 CFR 9903.201-2 is subject to other types of CAS coverage, the substance of the applicable clause set forth in subsection 30.201-4 of the Federal Acquisition Regulation shall be inserted.

This requirement shall apply only to negotiated subcontracts in excess of $750,000, except that the requirement shall not apply to negotiated subcontracts otherwise exempt from the requirement to include a CAS clause as specified in 48 CFR 9903.201-1.

52.230-2 Cost Accounting Standards (DEVIATION 2018-O0015).

Insert the following clause, in lieu of the clause at FAR 52.230-2, Cost Accounting Standards, in negotiated contracts, unless the contract is exempted (see 48 CFR 9903.201-1 (FAR Appendix)), the contract is subject to modified coverage (see 48 CFR 9903.201-2 (FAR Appendix)), or the clause at 52.230-4, Disclosure and Consistency of Cost Accounting Practices-Foreign Concerns (DEVIATION 2018-O0015) provided in this attachment is used.

Cost Accounting Standards (DEVIATION 2018-O0015) (MAY 2018)

(a) Unless the contract is exempt under 48 CFR 9903.201-1 and 9903.201-2, the provisions of 48 CFR Part 9903 are incorporated herein by reference and the Contractor, in connection with this contract, shall—

(1) (CAS-covered Contracts Only) By submission of a Disclosure Statement, disclose in writing the Contractor’s cost accounting practices as required by 48 CFR 9903.202-1 through 9903.202- 5, including methods of distinguishing direct costs from indirect costs and the basis used for allocating indirect costs. The practices disclosed for this contract shall be the same as the practices currently disclosed and applied on all other contracts and subcontracts being performed by the Contractor and which contain a Cost Accounting Standards (CAS) clause. If the Contractor has notified the Contracting Officer that the Disclosure Statement contains trade secrets and commercial or financial information which is privileged and confidential, the Disclosure Statement shall be protected and shall not be released outside of the Government.

(2) Follow consistently the Contractor’s cost accounting practices in accumulating and reporting contract performance cost data concerning this contract. If any change in cost accounting practices is made for the purposes of any contract or subcontract subject to CAS requirements, the change must be applied prospectively to this contract and the Disclosure Statement must be amended accordingly. If the contract price or cost allowance of this contract is affected by such changes, adjustment shall be made in accordance with paragraph (a)(4) or (a)(5) of this clause, as appropriate.

(3) Comply with all CAS, including any modifications and interpretations indicated thereto contained in 48 CFR Part 9904, in effect on the date of award of this contract or, if the Contractor has submitted certified cost or pricing data, on the date of final agreement on price as shown on the Contractor’s signed certificate of current cost or pricing data. The Contractor shall also comply with any CAS (or modifications to CAS) which hereafter become applicable to a contract or subcontract of the Contractor. Such compliance shall be required prospectively from the date of applicability to such contract or subcontract.

(4)(i) (Agree to an equitable adjustment as provided in the Changes clause of this contract if the contract cost is affected by a change which, pursuant to paragraph (a)(3) of this clause, the Contractor is required to make to the Contractor’s established cost accounting practices.

(ii) Negotiate with the Contracting Officer to determine the terms and conditions under which a change may be made to a cost accounting practice, other than a change made under other provisions of paragraph (a)(4) of this clause; provided that no agreement may be made under this provision that will increase costs paid by the United States.

(iii) When the parties agree to a change to a cost accounting practice, other than a change under subdivision (a)(4)(i) of this clause, negotiate an equitable adjustment as provided in the Changes clause of this contract.

(5) Agree to an adjustment of the contract price or cost allowance, as appropriate, if the Contractor or a subcontractor fails to comply with an applicable Cost Accounting Standard, or to follow any cost accounting practice consistently and such failure results in any increased costs paid by the United States. Such adjustment shall provide for recovery of the increased costs to the United States, together with interest thereon computed at the annual rate established under section 6621(a)(2) of the Internal Revenue Code of 1986 (26 U.S.C. 6621(a)(2)) for such period, from the time the payment by the United States was made to the time the adjustment is effected.

In no case shall the Government recover costs greater than the increased cost to the Government, in the aggregate, on the relevant contracts subject to the price adjustment, unless the Contractor made a change in its cost accounting practices of which it was aware or should have been aware at the time of price negotiations and which it failed to disclose to the Government.

(b) If the parties fail to agree whether the Contractor or a subcontractor has complied with an applicable CAS in 48 CFR 9904 or a CAS rule or regulation in 48 CFR 9903 and as to any cost adjustment demanded by the United States, such failure to agree will constitute a dispute under 41 U.S.C. chapter 71, Contract Disputes.

(c) The Contractor shall permit any authorized representatives of the Government to examine and make copies of any documents, papers, or records relating to compliance with the requirements of this clause.

(d) The Contractor shall include in all negotiated subcontracts which the Contractor enters into, the substance of this clause, except paragraph (b), and shall require such inclusion in all other subcontracts, of any tier, including the obligation to comply with all CAS in effect on the subcontractor’s award date or if the subcontractor has submitted certified cost or pricing data, on the date of final agreement on price as shown on the subcontractor’s signed Certificate of Current Cost or Pricing Data. If the subcontract is awarded to a business unit which pursuant to 48 CFR 9903.201-2 is subject to other types of CAS coverage, the substance of the applicable clause set forth in subsection 30.201-4 of the Federal Acquisition Regulation shall be inserted.

This requirement shall apply only to negotiated subcontracts in excess of $2 million, except that the requirement shall not apply to negotiated subcontracts otherwise exempt from the requirement to include a CAS clause as specified in 48 CFR 9903.201-1.

(End of Clause)

[Deviation per DAR Tracking Number: 2018-O0015, Effective 01 July 2018, contracting officers shall use $2 million as the threshold for obtaining certified cost or pricing data, in lieu of the threshold of $750,000. This will remain in effect until incorporated into the FAR, or otherwise rescinded.]

52.230-6 -- Administration of Cost Accounting Standards.

For the purpose of administering the Cost Accounting Standards (CAS) requirements under this contract, the Contractor shall take the steps outlined in paragraphs (b) through (i) and (k) through

(n) of this clause:

(a) Definitions. As used in this clause—

“Affected CAS-covered contract or subcontract” means a contract or subcontract subject to CAS rules and regulations for which a Contractor or subcontractor--

(1) Used one cost accounting practice to estimate costs and a changed cost accounting practice to accumulate and report costs under the contract or subcontract; or

(2) Used a noncompliant practice for purposes of estimating or accumulating and reporting costs under the contract or subcontract.

“Cognizant Federal agency official (CFAO)” means the Contracting Officer assigned by the cognizant Federal agency to administer the CAS.

“Desirable change” means a compliant change to a Contractor's established or disclosed cost accounting practices that the CFAO finds is desirable and not detrimental to the Government and is, therefore, not subject to the no increased cost prohibition provisions of CAS-covered contracts and subcontracts affected by the change.

“Fixed-price contracts and subcontracts” means--

(1) Fixed-price contracts and subcontracts described at FAR 16.202, 16.203, (except when price adjustments are based on actual costs of labor or material, described at 16.203-1(a)(2)), and16.207;

(2) Fixed-price incentive contracts and subcontracts where the price is not adjusted based on actual costs incurred (FAR Subpart 16.4);

(3) Orders issued under indefinite-delivery contracts and subcontracts where final payment is not based on actual costs incurred (FAR Subpart 16.5); and

(4) The fixed-hourly rate portion of time-and-materials and labor-hours contracts and subcontracts (FAR Subpart 16.6).

“Flexibly-priced contracts and subcontracts” means—

(1) Fixed-price contracts and subcontracts described at FAR 16.203-1(a)(2), 16.204, 16.205, and 16.206;

(2) Cost-reimbursement contracts and subcontracts (FAR Subpart 16.3);

(3) Incentive contracts and subcontracts where the price may be adjusted based on actual costs incurred (FAR Subpart 16.4);

(4) Orders issued under indefinite-delivery contracts and subcontracts where final payment is based on actual costs incurred (FAR Subpart 16.5); and

(5) The materials portion of time-and-materials contracts and subcontracts (FAR Subpart 16.6).

“Noncompliance” means a failure in estimating, accumulating, or reporting costs to--

(1) Comply with applicable CAS; or

(2) Consistently follow disclosed or established cost accounting practices.

“Required change” means—

(1) A change in cost accounting practice that a Contractor is required to make in order to comply with applicable Standards, modifications or interpretations thereto, that subsequently becomes applicable to existing CAS-covered contracts or subcontracts due to the receipt of another CAS-covered contract or subcontract; or

(2) A prospective change to a disclosed or established cost accounting practice when the CFAO determines that the former practice was in compliance with applicable CAS and the change is necessary for the Contractor to remain in compliance.

“Unilateral change” means a change in cost accounting practice from one compliant practice to another compliant practice that a Contractor with a CAS-covered contract(s) or subcontract(s) elects to make that has not been deemed a desirable change by the CFAO and for which the Government will pay no aggregate increased costs.

(b) Submit to the CFAO a description of any cost accounting practice change as outlined in paragraphs (b)(1) through (3) of this clause (including revisions to the Disclosure Statement, if applicable), and any written statement that the cost impact of the change is immaterial. If a change in cost accounting practice is implemented without submitting the notice required by this paragraph, the CFAO may determine the change to be a failure to follow paragraph (a)(2) of the clause at FAR 52.230-2, Cost Accounting Standards; paragraph (a)(4) of the clause at FAR 52.230- 3, Disclosure and Consistency of Cost Accounting Practices; or paragraph (a)(4) of the clause at FAR 52.230-4, Disclosure and Consistency of Cost Accounting Practices—Foreign Concerns; or paragraph (a)(2) of the clause at FAR 52.230-5, Cost Accounting Standards-- Educational Institution.

(1) When a description has been submitted for a change in cost accounting practice that is dependent on a contract award and that contract is subsequently awarded, notify the CFAO within 15 days after such award.

(2) For any change in cost accounting practice not covered by (b)(1) of this clause that is required in accordance with paragraphs (a)(3) and (a)(4)(i) of the clause at FAR 52.230- 2; or paragraphs (a)(3), (a)(4)(i), or (a)(4)(iv) of the clause at FAR 52.230-5; submit a description of the change to the CFAO not less than 60 days (or such other date as may be mutually agreed to by the CFAO and the Contractor) before implementation of the change.

(3) For any change in cost accounting practices proposed in accordance with paragraph (a)(4)(ii) or (iii) of the clauses at FAR 52.230-2 and FAR 52.230-5; or with paragraph (a)(3) of the clauses at FAR 52.230-3 and 52.230-4, submit a description of the change not less than 60 days (or such other date as may be mutually agreed to by the CFAO and the Contractor) before implementation of the change. If the change includes a proposed retroactive date submit supporting rationale.

(4) Submit a description of the change necessary to correct a failure to comply with an applicable CAS or to follow a disclosed practice (as contemplated by paragraph (a)(5) of the clause at FAR 52.230-2 and FAR 52.230-5; or by paragraph (a)(4) of the clause at FAR 52.230-3 and FAR 52.230-4)—

(i) Within 60 days (or such other date as may be mutually agreed to by the CFAO and the Contractor) after the date of agreement with the CFAO that there is a noncompliance; or

(ii) In the event of Contractor disagreement, within 60 days after the CFAO notifies the Contractor of the determination of noncompliance.

(c) When requested by the CFAO, submit on or before a date specified by the CFAO--

(1) A general dollar magnitude (GDM) proposal in accordance with paragraph (d) or (g) of this clause. The Contractor may submit a detailed cost-impact (DCI) proposal in lieu of the requested GDM proposal provided the DCI proposal is in accordance with paragraph (e) or (h) of this clause;

(2) A detailed cost-impact (DCI) proposal in accordance with paragraph (e) or (h) of this clause;

(3) For any request for a desirable change that is based on the criteria in FAR 30.603- 2(b)(3)(ii), the data necessary to demonstrate the required cost savings; and

(4) For any request for a desirable change that is based on criteria other than that in FAR 30.603-2(b)(3)(ii), a GDM proposal and any other data necessary for the CFAO to determine if the change is a desirable change.

(d) For any change in cost accounting practice subject to paragraph (b)(1), (b)(2), or (b)(3) of this clause, the GDM proposal shall--

(1) Calculate the cost impact in accordance with paragraph (f) of this clause;

(2) Use one or more of the following methods to determine the increase or decrease in cost accumulations:

(i) A representative sample of affected CAS-covered contracts and subcontracts.

(ii) The change in indirect rates multiplied by the total estimated base computed for each of the following groups:

(A) Fixed-price contracts and subcontracts.

(B) Flexibly-priced contracts and subcontracts.

(iii) Any other method that provides a reasonable approximation of the total increase or decrease in cost accumulations for all affected fixed-price and flexibly-priced contracts and subcontracts;

(3) Use a format acceptable to the CFAO but, as a minimum, include the following data:

(i) The estimated increase or decrease in cost accumulations by Executive agency, including any impact the change may have on contract and subcontract incentives, fees, and profits, for each of the following groups:

(A) Fixed-price contracts and subcontracts.

(B) Flexibly-priced contracts and subcontracts.

(ii) For unilateral changes, the increased or decreased costs to the Government for each of the following groups:

(A) Fixed-price contracts and subcontracts.

(B) Flexibly-priced contracts and subcontracts; and

(4) When requested by the CFAO, identify all affected CAS- covered contracts and subcontracts.

(e) For any change in cost accounting practice subject to paragraph (b)(1), (b)(2), or (b)(3) of this clause, the DCI proposal shall--

(1) Show the calculation of the cost impact in accordance with paragraph (f) of this clause;

(2) Show the estimated increase or decrease in cost accumulations for each affected CAS-covered contract and subcontract unless the CFAO and Contractor agree to include--

(i) Only those affected CAS-covered contracts and subcontracts having an estimate to complete exceeding a specified amount; and

(ii) An estimate of the total increase or decrease in cost accumulations for all affected CAS-covered contracts and subcontracts, using the results in paragraph (e)(2)(i) of this clause;

(3) Use a format acceptable to the CFAO but, as a minimum, include the information in paragraph (d)(3) of this clause; and

(4) When requested by the CFAO, identify all affected CAS- covered contracts and subcontracts.

(f) For GDM and DCI proposals that are subject to the requirements of paragraph (d) or (e) of this clause, calculate the cost impact as follows:

(1) The cost impact calculation shall include all affected CAS- covered contracts and subcontracts regardless of their status (i.e., open or closed) or the fiscal year in which the costs were incurred (i.e., whether or not the final indirect rates have been established).

(2) For unilateral changes--

(i) Determine the increased or decreased cost to the Government for flexibly-priced contracts and subcontracts as follows:

(A) When the estimated cost to complete using the changed practice exceeds the estimated cost to complete using the current practice, the difference is increased cost to the Government.

(B) When the estimated cost to complete using the changed practice is less than the estimated cost to complete using the current practice, the difference is decreased cost to the Government;

(ii) Determine the increased or decreased cost to the Government for fixed-priced contracts and subcontracts as follows:

(A) When the estimated cost to complete using the changed practice is less than the estimated cost to complete using the current practice, the difference is increased cost to the Government.

(B) When the estimated cost to complete using the changed practice exceeds the estimated cost to complete using the current practice, the difference is decreased cost to the Government;

(iii) Calculate the total increase or decrease in contract and subcontract incentives, fees, and profits associated with the increased or decreased costs to the Government in accordance with 48 CFR 9903.306(c). The associated increase or decrease is based on the difference between the negotiated incentives, fees, and profits and the amounts that would have been negotiated had the cost impact been known at the time the contracts and subcontracts were negotiated; and

(iv) Calculate the increased cost to the Government in the aggregate.

(3) For equitable adjustments for required or desirable changes--

(i) Estimated increased cost accumulations are the basis for increasing contract prices, target prices and cost ceilings; and

(ii) Estimated decreased cost accumulations are the basis for decreasing contract prices, target prices and cost ceilings.

(g) For any noncompliant cost accounting practice subject to paragraph (b)(4) of this clause, prepare the GDM proposal as follows:

(1) Calculate the cost impact in accordance with paragraph (i) of this clause.

(2) Use one or more of the following methods to determine the increase or decrease in contract and subcontract prices or cost accumulations, as applicable:

(i) A representative sample of affected CAS-covered contracts and subcontracts.

(ii) When the noncompliance involves cost accumulation the change in indirect rates multiplied by the applicable base for only flexibly-priced contracts and subcontracts.

(iii) Any other method that provides a reasonable approximation of the total increase or decrease.

(3) Use a format acceptable to the CFAO but, as a minimum, include the following data:

(i) The total increase or decrease in contract and subcontract price and cost accumulations, as applicable, by Executive agency, including any impact the noncompliance may have on contract and subcontract incentives, fees, and profits, for each of the following groups:

(A) Fixed-price contracts and subcontracts.

(B) Flexibly-priced contracts and subcontracts.

(ii) The increased or decreased cost to the Government for each of the following groups:

(A) Fixed-price contracts and subcontracts.

(B) Flexibly-priced contracts and subcontracts.

(iii) The total overpayments and underpayments made by the Government during the period of noncompliance.

(4) When requested by the CFAO, identify all CAS-covered contracts and subcontracts.

(h) For any noncompliant practice subject to paragraph (b)(4) of this clause, prepare the DCI proposal as follows:

(1) Calculate the cost impact in accordance with paragraph (i) of this clause.

(2) Show the increase or decrease in price and cost accumulations for each affected CAS-covered contract and subcontract unless the CFAO and Contractor agree to--

(i) Include only those affected CAS-covered contracts and subcontracts having--

(A) Contract and subcontract values exceeding a specified amount when the noncompliance involves estimating costs; and

(B) Incurred costs exceeding a specified amount when the noncompliance involves accumulating costs; and

(ii) Estimate the total increase or decrease in price and cost accumulations for all affected CAS-covered contracts and subcontracts using the results in paragraph (h)(2)(i) of this clause.

(3) Use a format acceptable to the CFAO that, as a minimum, include the information in paragraph (g)(3) of this clause.

(4) When requested by the CFAO, identify all CAS-covered contracts and subcontracts.

(i) For GDM and DCI proposals that are subject to the requirements of paragraph (g) or (h) of this clause, calculate the cost impact as follows:

(1) The cost impact calculation shall include all affected CAS- covered contracts and subcontracts regardless of their status (i.e., open or closed) or the fiscal year in which the costs are incurred (i.e., whether or not the final indirect rates have been established).

(2) For noncompliances that involve estimating costs, determine the increased or decreased cost to the Government for fixed-price contracts and subcontracts as follows:

(i) When the negotiated contract or subcontract price exceeds what the negotiated price would have been had the Contractor used a compliant practice, the difference is increased cost to the Government.

(ii) When the negotiated contract or subcontract price is less than what the negotiated price would have been had the Contractor used a compliant practice, the difference is decreased cost to the…