3101_Section_H_Updated_17_Aug_2018.DOCX

Section H – Special Contract Requirements

H01 CONTRACT ORGANIZATION

A. PLANNING, ENGINEERING AND SCHEDULING

“Planning, Engineering and Scheduling” is line item 0001AA of the Contract and commences only after receipt by the Contractor of a Notice of Contract Award (Award) and a Notice To Proceed (NTP) with Contract line item 0001AA, “Planning, Engineering and Scheduling,” respectively. This phase is also referred to as Phase I in these specifications. In this first phase of the Contract, the Contractor is required to present planning information that demonstrates a logical, orderly and workable approach to the Contract and to complete the design, perform other production engineering, and develop the contract schedule.

To ensure that this phase is completed in a timely manner and does not adversely impact the construction schedule, the Government has made a concerted effort to reduce the level of effort associated with its review and approval of the Contractor deliverables submitted during this phase. The drawings listed in H13 will be reviewed in accordance with Contract Clause H05 only to ensure compliance with the contract design package, the Contractor’s proposal, and the requirements of the regulatory agency. Deficiencies found by the regulatory agency during its review of the drawings/calculations shall be corrected by the Contractor prior to acceptance of the drawing by the agency. Corrections to deficiencies addressed by MDC in its review of the drawings in Contract Clause H13 shall be implemented prior to acceptance of the drawing by MDC. All required changes to the drawings/calculations shall be reflected in the “As-Built” drawings submitted for review and approval by the COR after construction has been completed.

B. CONSTRUCTION, TESTING AND DELIVERY

“Construction, Testing and Delivery” is line item 0001AB of the Contract and will commence only after completion of Phase I and receipt by the Contractor of Notice To Proceed with Line Item 0001AB “CONSTRUCT, TEST AND DELIVER.” This phase is also referred to as Phase II in these specifications. During this phase of the Contract, necessary records and scheduling documents shall be completed, the vessel constructed, tests and trials performed and physical delivery shall be made. This phase of the Contract is completed with receipt by the Contractor of a letter of Final Acceptance and submittal of all final documents.

C. PHASE SEQUENCING

It is intended that the two phases will be performed sequentially.

The time allotted for each phase spans an interactive process involving both the Contractor and the Government. This process includes preparation, review and approval of the phase submittals, contract administration, mailing, preparation and issuance of Notices To Proceed.

In order for the Contractor to plan the work and for the Government to properly apply Liquidated Damages and Termination Clauses, a graphic identifying the sequence milestones and the performance period allotted to each milestone has been developed and is shown on a following page.

The graphic shows the two basic Contract Phases. Each Contract Phase is further subdivided into the milestones that must be completed within each phase and the amount of time allowed to accomplish each. Note that the total time allowed for each phase of the Contract matches the “Required Delivery Schedule” in Contract Section F, Clause F02, “Performance.”

The milestones and periods of performance identified in the graphic are contract requirements.

The Contractor must be aware that the quality, completeness and detail of the submittals have a direct bearing on the approval process. Extended review iterations will extend the time necessary to receive approval of the submittals and will subject the Contractor to assessment of Liquidated Damages or Termination for Default.

Refer to Contract Clause H05 for information concerning the submittal review process.

CLIN 0001

Receipt by Contractor of NTP Phase I

(PLANNING, ENGINEERING AND SCHEDULING)

Phase I – CLIN 0001AA 180 Calendar Days

CONTRACT PHASE SEQUENCING

15 CD

Receipt by Contractor of NTP Phase II

(CONSTRUCTION, TESTING AND DELIVERY)

Phase II – CLIN 0001AB 365 Calendar Days

365 CD

Construction, Testing and Delivery

Final Acceptance at Government’s Facility

All final contract deliverables provided.

H02 CONTRACTOR SUBMITTALS

A. PLANNING, ENGINEERING AND SCHEDULING PHASE SUBMITTALS

The following is a summary of the items that the Contractor must submit during the “Planning, Engineering and Scheduling” phase. All items must be received, reviewed and accepted by the COR before a Notice To Proceed (NTP) will be issued for the Construction, Testing and Delivery phase of the contact:

B. CONSTRUCTION, TESTING AND DELIVERY PHASE SUBMITTALS

The following is a summary of items that the Contractor must submit after a Notice To Proceed when the “Construction, Testing and Delivery” phase of the Contract is issued. All items must be received, reviewed and approved by the COR before Final Payment will be made. The following items are required:

H03 DESIGN REQUIREMENTS

The Contractor shall provide the necessary engineering to develop the Final Design of the vessel.

The weight estimate shall be updated monthly in accordance with Section C, Clause C115.

A torsional analysis of the propulsion system shall be performed.

The criteria below were used by the Government to develop the Contract Drawing package. All drawings required to be developed and/or finalized by the Contractor shall comply with these requirements.

· Structural drawings shall delineate all structural members, brackets, plating and plate seams, all welding and all joint details complete with all dimensions noted. “Typical” views may be used for numerous repetitions of identical or mirror images. Every effort shall be made to make the design consistent from sheet to sheet and drawing to drawing. If necessary, calculations showing that all foundations, under-deck structure and headers shall meet the requirements of ABS and any specific requirements of Section C and shall be submitted with the associated drawings. The calculations shall be clearly annotated as to specific requirement being addressed and explanation of all assumptions.

· The propulsion system shall be defined with main engine and propellers selected. If necessary, calculations justifying the engine and propeller selections shall be submitted with the associated drawing.

· For the mechanical systems, all pumps, compressors, heat exchangers, hydraulic components and machinery, deck machinery and ancillary equipment shall be sized and selected. The mechanical system drawings shall show all valves, filters, controls, receivers, pumps, strainers, sea chests, consumers, takedown, separators and other principal features or devices. The drawings shall consist of a system schematic and a Material List and an Equipment List, and where necessary to show equipment locations, a detailed system drawing superimposed on a vessel arrangement and necessary sections and elevations on subsequent sheets. If necessary, calculations sizing the equipment shall be submitted with the system drawing. These calculations shall include the sizing of piping systems and pumps. Catalog cut-sheets of all equipment shall be submitted with the drawing.

· Major equipment on arrangement drawings (engines, motors, pumps, strainers, etc.) shall be shown in actual outline form (not schematic or by block).

· HVAC systems shall be defined and will include the calculations of fan and blower sizes and powers, heating and air conditioning equipment sizing and duct sizing. The HVAC system drawings shall consist of a system schematic and a diagrammatic of the system superimposed on a vessel arrangement with a Material List and an Equipment List and necessary sections and elevations on the second and subsequent sheets. An HVAC load analysis shall be completed. These calculations shall be submitted with the system drawings.

· The electrical system shall be defined with consumers identified and quantified, controls and switchgear identified, a complete load analysis, short circuit analysis and one line diagram prepared and generator sets selected. Cabling and lighting drawings shall be prepared using the general arrangements for background.

· Joiner details and material selection shall be worked out with schedules for sheathing, insulation, doors, windows, furniture, fixtures, etc.

· Any drawing submitted without the required calculations, as stated herein or in the appropriate clause of Section C, will not be considered a formal submittal and will not be reviewed.

During the development of the Final Design, the Contractor may discover circumstances that dictate a need to change some of the equipment or materials specifically required by the Contract. Examples of this situation might be that the item is no longer available, or the lead time is too great to meet the vessel delivery. Such circumstances shall be immediately identified to the COR by letter for resolution, along with a proposed solution. Adjustments to the Contract required as a result of such circumstances, will be made under the “CHANGES” Clause.

The Contractor shall prepare Final Design drawings for regulatory submittals, COR submittal, “As-Built” drawings, and other technical details necessary to support his administration, operation, and production practices. Refer to Contract Clause H13, “Engineering and Drawings”, for a minimum list of required drawings and drafting standards.

H04 not used

H05 REVIEW OF CONTRACTOR SUBMITTALS

A. GENERAL

The Contractor shall not use the drawing review or submittal process for contract deviations. Changes in equipment, materials, construction techniques or details must be the subject of separate, specific correspondence. Any such request made by the Contractor must be specific and clear as to what is contractually required, the proposed change, location and/or extent, benefits resulting from the change and effect on contract cost and delivery.

Submittals for review by the Government will be return-mailed or sent electronically (at the discretion of the Contractor) in accordance with the Phase Sequencing Graphic – Refer to Contract Clause H01. The Contractor shall plan the submittal schedules so as not to affect contract performance.

B. CONTRACTOR REVIEW

The Contractor shall comply with the requirements of the design embodied in the Contract. Prior to submission of plans, calculations and designs to MDC or any regulatory agency as part of this Contract, the Contractor must have them reviewed and stamped by a registered Professional Engineer (PE) licensed by one of the 50 states of the United States or the District of Columbia. It is the responsibility of the PE to ensure that he or she does not exceed the scope of his or her PE license. The PE stamp must appear on the certified document itself.

C. AGENCY REVIEW

Plans and calculations submitted by the Contractor for approval, classification or certification by ABS or other regulatory agency will be reviewed by the applicable agency. Government acceptance of these submittals will be contingent upon acceptance by those agencies. Included will be all drawings and calculations required for issuance of any Statements of Fact by ABS.

A copy of all correspondence and submittals made to ABS shall be furnished to the COR. The Contractor shall also require ABS to furnish a copy of all correspondence from ABS to the Contractor, including copies of reviewed submittals and letters of approval, which shall be sent simultaneously to the COR. The Contractor shall coordinate with ABS to ensure adequate numbers of submittal copies so that the COR can be provided with a copy through the O2E system.

The Contractor shall authorize ABS to disclose to and discuss with the COR any Rule or certification criteria issues, design assumptions and their impact on classification and certification, and any other technical considerations on which classification shall be based or which may affect future classification or certification of the vessel. See Contract Section C, Clause C004 for further details.

D. GOVERNMENT REVIEW

The drawings/calculations listed in Contract Clauses H12 and H13 will be reviewed by MDC to ensure the contractual requirements are met. MDC will generate a letter indicating our review action for the drawing. If necessary, the letter will include review comment(s). MDC review letters will be transmitted within 30 days of receipt of the submittal. If review comments are generated, the Contractor shall than be responsible for making the necessary revision(s) and providing one copy of the revised drawing(s)/calculation(s) to MDC.

H06 CONSTRUCTION PLAN

Within 30 days after receipt of the Notice To Proceed with CLIN 0001AA, “Planning, Engineering and Scheduling”, the Contractor shall develop and submit to the Contracting Officer’s Representative the Contractor’s proposed plan for the construction of the vessel.

The plan shall be prepared on USACE standard ENG Form 2454 (Construction Progress Chart) furnished by the Government. A copy of this form is included in Section J. The plan will be a summary level view of the Contract. The plan will show the Contractor’s proposed starting date, duration in weeks, ending date, and percentage completion (both as planned and as achieved) for all of the major activities of the Contract. The plan shall also show the amount of the total bid price (percent and actual dollars) associated with each activity, including any Contract modification. The plan will also have the progress “S” curve plotted (both as planned and as achieved).

The activities shown on the chart shall be developed by the Contractor and shall include, as a minimum, the following:

· Planning and Scheduling

· Engineering

· Bonding

· ABS Fees (Inspection, Surveys, Testing, Vessel & Material Certification)

· Direct Construction Labor, separated into principal vessel areas

· Material Purchases separated into principal vessel areas

· Material Deliveries separated into principal vessel areas

· Construction of modules

· Launch and Builder’s Test and Trials

· Dock and Open Water Trials

· Delivery (Shipment)

· Overhead and Profit

In addition, the following milestone events, as a minimum, shall be marked on the chart timeline:

· Award of Contract

· Notice to Proceed with “PLANNING, ENGINEERING AND SCHEDULING”

· Full Notice To Proceed with “CONSTRUCTION, TESTING AND DELIVERY”

· Tests and Trials

· Final Inspection

· Provisional Acceptance

· Delivery

· Final Acceptance

After review, revision as necessary and approval by the COR, the plan shall be updated and submitted monthly with the Progress Payment Request. The plan shall be updated with all modifications, reflecting the modification value and the updated total Contract value.

H07 CONTRACTOR’S SAFETY PLAN

Within 30 days after Notice To Proceed with CLIN 0001AA, “Planning, Engineering and Scheduling”, the Contractor shall submit a Safety Plan for the facility at which the work is to be performed.

The Contractor’s Safety Plan shall outline the procedures used by the Contractor to ensure the safety of his employees and minimize lost-time accidents.

The Safety Plan shall identify by name and title the Contractor’s Safety Officer who is responsible for enforcing the Contractor’s safety rules and the Contractor’s designated “Competent Person” (29 CFR 1915.7) who is responsible for testing the atmosphere in confined and enclosed spaces. In the event that the Contractor has no designated “competent person,” a statement that a Marine Chemist will perform the tests and inspections that require a “competent person” shall be included with the Safety Plan, and the name of the Marine Chemist shall appear on the Subcontracting Plan (see Contract Clause H09).

H08 PROCUREMENT PLAN

Within 60 days after Notice To Proceed with CLIN 0001AA, “Planning, Engineering and Scheduling”, the Contractor shall submit a Procurement Plan for the vessel.

The Procurement Plan shall identify the major or schedule controlling components and equipment in the Contract, estimated delivery time for each, the selected vendor and planned date of ordering.

The Procurement Plan shall be in “spreadsheet” format and will later be developed into the Materials and Equipment Schedule (see Contract Clause H10).

Upon written approval of the Procurement Plan by the COR, the Contractor may commence procurement of any or all of those items on the plan.

Costs for long lead items and materials which are in the accepted procurement plan must be included on the bid schedule under line item 0001AB, “Construction, Testing and Delivery.” Progress payments will be made in accordance with Contract Clause H20, “Progress Payment Based on a Percentage or Stage of Completion.”

H09 SUBCONTRACTING PLAN

Within 30 days after Notice To Proceed with CLIN 0001AA, “Planning, Engineering and Scheduling”, the Contractor shall submit a Subcontracting Plan for the Contract. This should not be confused with the SUBCONTRACTING PLAN required of Large Business as a part of their affirmative action responsibilities.

The Subcontracting Plan shall identify the areas or features of the Contract or vessel that will be performed, all or in part by subcontractors. The plan shall identify the scope of work, subcontractor firm’s name, and shall reference the subcontractor’s proposal or letter of intent.

The Contractor shall provide copies of all pre and post Contract correspondence between themselves and their representatives and all potential subcontractors when requested by the Contracting Officer’s Representative.

The Subcontracting Plan shall specifically address the Contractor’s plan for design and engineering.

If any part of the Contractor’s engineering is to be subcontracted, the Contractor shall also submit the subcontractor’s qualifications, the scope of work and the contract, purchase order, or letter of intent.

If the engineering is to be performed by the Contractor’s hired labor, the plan shall make that specifically clear. The Contractor shall provide a statement of qualifications for any “in house” engineering personnel.

All persons employed as naval architects or marine engineers, either by the Contractor or by any subcontractor, shall be professionally competent by virtue of education, training, experience or licensing. The required “Engineering Qualifications” submittal shall be submitted by the Contractor within 30 days after Notice To Proceed with CLIN 0001AA, “Planning, Engineering and Scheduling.”

The Subcontracting Plan shall be in “spreadsheet” format and will be incorporated into the Materials and Equipment Schedule (see Contract Clause H10).

Upon written approval of the Subcontracting Plan by the Contracting Officer’s Representative, the Contractor is authorized to proceed to place the subcontracts on the plan.

H10 MATERIALS AND EQUIPMENT SCHEDULE

Within 60 days after Notice To Proceed with CLIN 0001AA, “Planning, Engineering and Scheduling”, the Contractor shall develop a schedule of all items, including major stock materials (excluding nuts, bolts, gaskets, consumables, etc.), to be used in the construction of the vessel.

The schedule shall be prepared in “spreadsheet” format and contain the following information for the vessel:

· Component/equipment

· Quantity

· Vendor name and address

· Make, model, and options

· Drawing references (if appropriate)

· Purchase Order or Contract Number

· Scheduled order date

· Actual order date

· Scheduled (promised) receipt at shipyard

· Actual receipt at shipyard

After submittal, review, revision and approval by the COR, the schedule shall be updated and submitted to the Government monthly. All changes from the previous month shall be highlighted for the Government’s review. Final submission to MDC shall include priced copies of all purchase orders, purchase specifications and receipts.

Upon written approval of the schedule by the Contracting Officer’s Representative, the Contractor is authorized to proceed with procurement of all items and materials in the schedule.

At any time during the Contract, the COR may request and the Contractor shall furnish, correspondence, telephone conversation records, priced copies of purchase orders, purchase specifications and material receipts or other records between the Contractor and the various subcontractors.

H11 SUBMITTAL SCHEDULE

Within 30 days after receipt of Notice To Proceed with CLIN 0001AA, “Planning, Engineering and Scheduling”, the Contractor shall develop and submit a submittal schedule for all Contractor submittals required by the Contract (see Contract Clause H02).

The schedule shall be in “spreadsheet” format and contain the following minimum information for the vessel:

· Drawing number (if any)

· Name or title of submittal

· Scheduled submittal date(s)

· Actual submittal date(s)

· Submittal letter number

· Reply letter number

· Reply letter date

For drawings or items with repetitive submittals (monthly, etc.) the schedule must allow for drawing review iterations or repetitive submissions.

After review, subsequent revision and approval by the COR, the schedule will be updated and submitted with the monthly Progress Payment Request for the life of the Contract.

H12 DRAWING INDEX

Within 30 days after Notice To Proceed with CLIN 0001AA, “Planning, Engineering and Scheduling”, the Contractor shall prepare an index of all drawings to be prepared by the Contractor as part of this Contract. The list will be subdivided into three parts.

The first part shall list all the drawings the Contractor intends or expects to prepare during the “Planning, Engineering and Scheduling” phase of the Contract. See Contract Clause H13.

The second part shall list all drawings the Contractor intends or expect to prepare during the “Construction, Testing and Delivery” phase of the Contract. See Contract Clause H13.

The third part shall list all of the “As-Built” drawings. The As-Built drawings shall consist of updated and corrected originals of all Contract Drawings, all of the drawings prepared by the Contractor (listed in the first part of this index) plus any standard drawings or details created by the Contractor during construction.

All parts of the drawing index shall include the drawing title, MDC Drawing Number, status, the Contractor’s drawing number (if any), the scheduled submittal date, the actual submittal date, submittal letter number, reply date and MDC reply letter number. The status of each drawing shall be one of the following:

· No Review Required

· Under Development

· Under Review

· Approval status (based on MDC reply letter for that drawing)

After review, revision, assignment of MDC drawing numbers and approval by the COR the index will be updated and submitted monthly to the Contracting Officer’s Representative.

H13 ENGINEERING AND DRAWINGS

A. ENGINEERING

The Contractor shall perform engineering (prepare calculations, drawings, etc.) in order to:

· Generate the required drawings (refer to Contract Clauses H12 and J01)

· Develop the Final Design

· Launch, construct, and deliver the vessel

· Obtain regulatory body approval.

· Obtain COR approval(s)

· Finalize Contract Drawings

· Complete As-Built Drawings

All drawings and documents prepared by the Contractor or substantively modified by the Contractor shall be forwarded to the Marine Design Center for review, comment, and acceptance.

It is the responsibility of the Contractor to schedule submission of the listed drawings/documents to allow for review by MDC, without adversely affecting the construction schedule or submittals to regulatory bodies (refer Contract Clause H02).

The Government will be the sole owner of the design and will have "unlimited rights" in the duplication, use reprocurement and disclosure of all drawings used in the development and construction of this vessel.

B. DRAWINGS

All drawings shall be prepared in CADD form, and shall conform to the American National Standards Institute (ANSI) Standard Y14. Drawings shall be flat, folded to 81/2” x 11” size and trimmed to within 1/2” of the outer border. Drawing size shall be format A (horizontal or vertical) or D as defined by ANSI Y14.1. In no case will drawings of any other size or format be accepted. Title blocks shall conform to ANSI dimensions and shall be submitted to MDC for approval before use. Drawings of two or more sheets shall have follow-on sheets titled according to ANSI Y14.1 for continuation sheets and shall not be separately titled.

Electronic (.pdf) files of each submission shall be emailed to the Technical Manager, Project Manager, and Contracting Officer’s Representative.

The Contractor shall provide to the Contracting Officer's Representative copies of all pre and post Contract correspondence between the Contractor and ABS, including all correspondence from ABS to the Contractor.

The Contractor shall also provide to the Contracting Officer's Representative, approved and stamped copies of all drawings and documents reviewed by ABS, with all comments resolved (if applicable).

C. DESIGN OUTLINE

The “Engineering and Scheduling” phase design effort to complete the Final Design shall include the preparation of drawings, calculations, and reports that address the topics listed on the following guidance index. Refer to Contract Clause H03 for basic level of detail guidance for all vessel systems and refer to the specific clauses of Section C for any detailed requirements. It is acceptable to combine details and features on drawings. The designations “Drawing” below refers to full D size CAD drawings. The designations “Report” refers to calculations, system reports, etc. and are provided on standard letter size.

DRAWINGS TO BE DEVELOPED AND SUBMITTED

DRAWING NO. TITLE DELIVERABLE

* To be developed during the “Construction, Testing and Delivery” phase of the Contract.

Cut sheets shall be provided for all furniture, furnishings and outfitting items listed in Contract Section C, Clause C437.

DRAWINGS TO BE FINALIZED AND SUBMITTED

DRAWING NO. TITLE DELIVERABLE

826-C615-01

H14 “AS-BUILT” DRAWINGS, calculations & reports

In order to provide a record of the "As-Built" vessel the Contractor shall update the vessel drawings and documents to clearly show the construction, details and systems of the vessel at the time of delivery.

All of the drawings and documents shown on the Submittal Schedule required by Contract Clauses H11, H12 and H13, and all of the Contract Drawings listed in Contract Section J, Clause J01, “Contract & Reference Drawings”, shall be updated and corrected to form an "As Built" record of the vessel.

The “As-Built” drawings shall be based on the Contract Drawings, these specifications and the actual “As-Built” conditions. All principal dimensions shall be indicated. System drawings shall consist be consistent with the level of detail provided in the Contract Drawings. The Bill of Materials shall be updated with make, model and quantities for each system and outfit drawing. The arrangements shall be to scale with equipment shown in actual outline form. Please refer to Contract Clause H03 for complete details on the design/drawing detail requirements.

The title block of all drawings shall be updated with the correct phase (“D” phase for “As-Built”) and the vessel’s name (see Contract Section C, Clause C006, “Vessel Identification and Principal Characteristics”). All “As-Builts” shall be Revision -.

The "As-built" drawings shall be delivered as follows:

· Prior to FINAL INSPECTION, the Contractor shall submit one set of prints of the "As-Built" drawings for review and acceptance.

· Prior to PROVISIONAL ACCEPTANCE, the Contractor shall provide the following:

· Two sets of black or blue line prints of all "As Built" drawings.

· Two sets of electronic files of all CADD prepared drawings, reports and calculations. The files shall be provided on 4-3/4”, 650 MB, 74 min. digital Compact Discs (CD). The CADD drawings shall be provided in AutoCAD 2012 .dwg file format and in .pdf file format. Each drawing filename shall conform to the file naming convention below. The .pdfs of each sheet shall be compiled into a signal file for multiple sheet drawings. All reports and calculations shall be provided in pdf file format. Multiple files may be provided per disc, but compression utilities such as PKZIP may not be used.

Each complete set of files on each CD, shall be encased in plastic jewel boxes, labeled, indexed in numerical order by filename furnished in protective plastic sleeves, and bound in a three-ring binder suitable for storage. The binder shall have the Contract number, MDC hull number, MDC project number, and name of the vessel printed on the cover and the binding edge.

Drawing files shall be named based on the drawing phase, WBS number, task number, sheet number, and revision number. The following example will illustrate the naming convention:

· For a single or multi-sheet drawing with a drawing number of 826-C685-02 and a revision of “C” the drawing filename would be 826-C685-02C.DWG or .pdf.

The direct relationship between the drawing number and the drawing filename is as follows:

IN DRAWING # IN DRAWING FILENAME

File Extension .DWG

The Government will be the sole owner of the design and will have "unlimited rights" in the duplication, use re-procurement and disclosure of all drawings used in the development and construction of this vessel.

H15 SUBSTITUTIONS

“Substitution” as used in this clause, is an administrative action, not resulting in a Contract change of cost or time.

Prior to issuance of a NTP with “Construction, Testing and Delivery,” the Contractor shall prepare and submit a comprehensive list and analysis of any Contractor proposed substitutions of the equipment and materials required in the Contract.

The Substitution List shall be limited to equipment and materials specifically required by the Contract. Equipment and Materials where the Contractor has selection responsibility (i.e. “similar to”) are not to be included in the list.

Each proposed substitution shall be accompanied with a detailed analysis and comparison of the equipment or materials specified and the equipment or materials proposed, including features, dimensions, performance characteristics, benefit to the Government, and the compelling reason why the substitution should be made. In the absence of compelling reasons for making the substitution, the Contractor’s proposal may be denied.

Should the substitution be accepted, the Contractor shall be responsible for integrating the substitution into the design at no increase in Contract cost or no extension of Contract completion. Such modifications to the design must be completed, submitted for approval, revised as necessary and accepted by the COR prior to issuing a NTP with “Construct, Test and Deliver.”

The Contractor bears ultimate responsibility for satisfactory performance of all systems impacted or affected by an accepted substitution as well as the operation of the completed vessel, as affected by the substitution.

Once a NTP with “Construction, Testing and Delivery” has been issued, substitutions will not be considered.

H16 MANUFACTURER OR SUBCONTRACTOR DRAWINGS AND MANUALS

The Contractor shall provide three complete sets of drawings and manuals and two electronic (DVD/CD) sets for each piece of machinery and equipment provided by the Contractor; that clearly describe the operation, construction, maintenance, repair, adjustment, lubrication, parts lists and “trouble shooting” of every item of machinery and equipment. This shall include Detailed Fabrication Drawings where they exist.

The manuals for the non-propulsion and generators can be combined/saved to the same DVD/CD.

One addition set of printed manuals and drawings shall be provided for the main engines, diesel generators and z-drives.

Manuals shall be in the English language with all dimensions in the footpoundsecond systems of units. Manuals shall be no larger than 8 inches x 11 inches, and bound in hard covers of durable materials.

Manufacturer or subcontractors’ drawings may be included in the manual but must be folded to page size.

Drawings not suitable for inclusion in the manuals must be considered as engineering and design drawings and shall be prepared and submitted in accordance with the requirements of Contract Clause H13.

At least 15 days prior to Final Inspection of the vessel, one set of the manuals shall be submitted to the Contracting Officer’s Representative for review, comment and/or approval. This set of manuals will be returned to the Contractor with approval or comments. Final submittal of the manuals shall consist of three sets of the manuals and electronic versions of the manuals shall be completed prior to Final Acceptance of the vessel.

If photocopies (Xerox or similar) of parts lists, text, diagrams, etc., are furnished, one of the sets shall be a “Master” and must be made up of all “original” sheets and be clearly identified as the “Master” copy. Photocopies will be clear with high black/white contrast, sharp lines, full sheet reproduction, and no background shadow or clutter.

Where catalog “cut-sheets” are provided, all information not pertinent to the equipment or machinery provided shall be obliterated.

H17 OPERATOR’S MANUAL

The Contractor shall prepare and furnish an Operator’s Manual customized for the vessel. The manual shall be a guide to the operation, maintenance, and utilization of the various systems on the vessel and the vessel itself.

The manual shall be arranged such that an operator can get a thorough overview and understanding of a system and its operation, with specific steps and guidelines to clearly affect system actuation, control, monitoring, troubleshooting, adjustment, startup and shutdown.

The manual shall also include specific maintenance instructions for each system, and item of equipment as a supplement to the manufacturer’s manuals.

The manual shall include a description and procedures for each system as installed. Every gauge, meter and indicator shall include interpretive information such as expect parameters and procedures to follow if the information is outside the specified parameters. Information specific installation (OEM) shall be captured, including but not limited to fluid types, capacities, filters, special required tools and supplies.

References to manufacturer’s manuals shall be included, but it is not the intent to “Cut and Paste” from manufacturer’s manuals. In all cases where the manufacturer’s manual describes options, the operator’s manual shall describe/identify the options installed.

The manual shall also include specific maintenance schedule matrix and instructions for each system, and item of equipment.

The manual shall contain simplified and reduced size arrangement and schematic and/or diagrammatic-on-arrangement drawings of each system.

The language and level of detail for the operating, monitoring, maintenance, and troubleshooting procedures shall be targeted to a professional mariner crew.

The manual shall be bound in hard cover binders of a durable material.

Three copies of the manual shall be provided prior to Final Acceptance of the vessel. One copy shall be the “Master” copy and shall contain the original typed or reproducible version of the manual. An electronic copy of the “Master” shall be provided.

H18 RECORD PHOTOGRAPHS

A. CONSTRUCTION PROGRESS PHOTOGRAPHS

The Contractor shall provide monthly photographs deliverable in digital format. The photographs shall document the construction progress, the launching, and tests and trials of the vessel.

The photographs shall be in JPG file format of at least SVGA Resolution, 24-bit color depth, and at a compression ratio no greater than 25% (75% Quality).

Approximately 15 or 20 photographs shall be provided monthly. The quantity of photographs shall be commensurate with the level of production.

B. RECORD PHOTOGRAPHS

The Contractor shall furnish the services of a professional photographer to take digital color photographs upon completion of the vessel, as described below:

Exterior shots (not less than 20 shots of the vessel shall be taken) shall include:

· Each side

· Each end

· Port and Starboard 3/4 views (endon)

· Elevated 3/4 views

· Action shots of the launching

Interior shots shall include views of each interior space from various angles (4 minimum per space), so as to display principal equipment and features.

The Contractor shall provide the digital files for each shot and two sets of prints.

The Contracting Officer Representative will select two shots of the vessel. The Contractor shall have the selected shots custom printed in 11” x 14” size by Cibachrome process, mounted, double matted and framed under clear glass in suitable wooden frame. Four sets of these pictures shall be furnished to the Contracting Officer's Representative (total of eight matted & framed color photographs).

H19 GOVERNMENT PROPERTY

All GovernmentFurnished equipment and equipment for which the Government has made payment or partial payment shall be considered Government Property.

The Contractor shall accept all risk for Government Property in his possession.

The Contractor shall maintain an inventory of all Government Property, update and submit the inventory monthly.

All Government Property shall be stored in enclosed, weather tight secure, warehouse buildings. Security shall consist of restricted access, locked and fenced storage. Warehouse buildings shall be heated above freezing and ventilated to prevent condensation or sweating.

H20 PROGRESS PAYMENT BASED ON PERCENTAGE OR STAGE OF COMPLETION

The Government will make progress payments monthly as the work proceeds, or at more frequent intervals as determined by the Contracting Officer, on estimates of work accomplished which meets standards of quality established under the Contract, as accepted by the Contracting Officer. If requested by the Contracting Officer, the Contractor shall furnish a breakdown of the total Contract price showing the amount included therein for each principal category of work, in such detail as requested, to provide a basis for determining progress payments. In the preparation of estimates, the Contracting Officer may authorize payment for material delivered to the site and at locations other than the site may also be taken into consideration if---

· Consideration is specifically authorized by this Contract; and

· The Contractor furnishes satisfactory evidence that it has acquired title to such material and that the material will be used to perform this Contract.

If the Contracting Officer finds that satisfactory progress was achieved during any period for which progress payment is to be made, the Contracting Officer will authorize payment to be made in full. However, if satisfactory progress has not been made, the Contracting Officer may retain a maximum of fifteen percent (15%) of the amount of the payment until satisfactory progress is achieved. When the work is substantially complete, the Contracting Officer may retain from previously withheld funds and future progress payments that amount the Contracting Officer considers adequate for protection of the Government and will release to the Contractor all remaining withheld funds.

All material and work covered by progress payments made shall, at the time of payment, become the sole property of the Government, but this shall not be considered as---

· Relieving the Contractor from the sole responsibility for all material and work upon which payments have been made or the restoration of any damaged work; or

· Waiving the right of the Government to require the fulfillment of all of the terms of the Contract.

In making these progress payments, the Government will, upon request, reimburse the Contractor for the amount of premiums paid for performance and payment bonds (including co-insurance and reinsurance agreements, when applicable) after the Contractor has furnished evidence of full payment to the surety. The retainage provision preceding shall not apply to that portion of progress payments attributed to bond premiums.

The Government will pay the amount due the Contractor under this Contract after---

· Completion and acceptance of all work; and

· Presentation of a properly executed voucher.