Atch_11_Sample_Contract_Requirements_-_SRs_29Aug14.pdf

SPECIAL CONTRACT REQUIREMENTS

SR-0 DESCRIPTION OF WORK

The scope of work for this contract includes all works to be executed as detailed within the

Specifications, Drawings, Host Nation Technical Requirements (HNTRs) and the Bid Schedule.

The contract will consist of two separate construction project locations on one base:

Site 13317 and Site 13318. The Prime contactor shall provide the four (4) Key

Personnel: Project Manager, Site Superintendent, Contractor Quality Control Manager and

Site Safety and Health Officer for each project site.

The Scope of Work for Site 13317 consists of the construction of a 3-story building. The 3-story building will include systems for HVAC air handling units, chillers, elevator, electricity, communication, UPS systems, water and sewage systems. The finishing work includes architectural work (interior walls, floors, doors, etc), mechanical work, fire protection (fire detection systems, fire extinguishing systems), waterproofing, and building management system.

The work also includes the construction of 3 remote concrete structures for generator and chillers. From these structures, the contractor shall supply an underground pipes and cables according to the system requirements and the drawings.

The project will include the upgrading of an electrical structure (“Trafo Station 11”) and install electrical feeders from two sources to the new building as detailed in the specifications and drawings.

Site 13317 Option 1: - Furnishing and installing the external 800kva generator, elevator and the

EMP door will be according to the specifications and drawings.

The Scope of Work for Site 13318 consists of the construction for a 1-story building includes 4 major training rooms and a large communication room. The building will include systems for

HVAC air handling units, chillers, electricity, communication, UPS systems, water and sewage systems. The finishing work includes architectural work (interior walls, floors, doors, etc), fire protection (fire detection systems, fire extinguishing systems), waterproofing, and building. The majority of construction is concrete with inner divisions of gypsum walls.

Site 13318 – Option 2: Providing architectural finishes, HVAC and electricity in rooms #37, #38, #42, #43 and #44.

Site 13318 – Option 3: Acelarates the period of performance to include the Site 13318 base and Option 2 requirements

Refer to the Price Schedule for base and optional requirements.

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Solicitation W912GB-14-R-0030 FY 15 Israel MATOC

SR-1 TAX CLAUSE: TAXES IMPOSED BY THE GOVERNMENT OF ISRAEL

1. General:

Contractors and subcontractors will be required to pay all taxes, duties, or other charges levied by the Government of Israel (GOI) in accordance with Israeli law and regulations. Certain expenditures for taxes, duties or similar charges will be reimbursable to the prime contractor as provided in this clause. Bid prices shall not include the value of taxes for which the contractor will be reimbursed.

2. Definitions:

a. Direct taxes: As used in this clause, direct taxes are: personal income and employment taxes for third country national workers imported into Israel exclusively for work on this contract or other contracts in LOA#IS-B-SAC. Direct taxes will be reimbursed based upon actual expenses incurred by the contractor and subcontractors under procedures set out in this clause. Third Country National Tax Plan shall be submitted by the successful offeror within seven (7) calendar days after award.

Personal Income and Employment Taxes for Third Country Nationals:

1) For purposes of this clause, Third Country Nationals (TCNs) are those persons who are nationals of countries other than the United States or Israel.

2) The tax exemption for TCN personal income and employment taxes on earnings is limited to those third country nationals who enter Israel as employees of the contractor or subcontractors to work exclusively on this contract or other contracts under LOA#IS-

B-SAC. As an interim measure, for a limited time only, the GOI has agreed to extend coverage of this exemption to TCNs who did not enter Israel to work on projects under this LOA.

3) At least 15 days prior to the arrival of TCNs at the job site, the Contractor will provide the Contracting Officer with the following information for each TCN employee:

Full Name

Date of Birth

Place of Birth

Citizenship

Passport Number, date and place of issuance

Visa Information

Current Residence

The Contracting Officer will forward this information to the GOI and the GOI will verify eligibility for tax exemption. The Contracting Officer will notify the contractor upon verifications by the GOI that the submitted employees have qualified for tax exempt status.

4) The contractor and/or subcontractors shall not withhold personal income taxes from the wages of qualifying TCN employees. The contractor and/or subcontractors will pay all income taxes required by Israeli law to the appropriate agencies/jurisdictions for qualifying TCN employees.

5) Income and employment taxes paid for qualifying employees of the contractor and subcontractors will be itemized on the monthly contractor invoices to the U. S.

Government. For each qualifying employee, invoices will include the amount and type of taxes paid, period for which taxes were paid, and employee earnings for the period. The contractor will require all subcontractors to provide this information to the contractor for qualifying employees of the subcontractors. Invoices submitted more than 90 days after the taxes were paid by the contractor will not be reimbursed.

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Solicitation W912GB-14-R-0030

6) TCN personal income and employment taxes paid will be reimbursed in U. S.

dollars to contractors as part of their regular periodic payments, after approval of invoices by the Contracting Officer. Reimbursement will be based upon exchange rates in effect on the date the contractor paid the taxes. For this purpose, the exchange rate shall be the rate in use by the U. S. Embassy in Tel Aviv.

b. Indirect taxes: As used in the clause, all duties, charges and fees levied by the GOI other than those defined in this clause as 'direct taxes' will be considered to be 'indirect taxes'.

Reimbursement of indirect taxes will not be done on actual cost basis. Indirect taxes will be reimbursed to the contractor as a percentage of contract amount. Under this contract, 1.63% for site 13317 and 1.85% for site 13318 of the contract price will be paid to the contractor in U. S. dollars as a full and complete reimbursement for indirect taxes paid. The percentage of reimbursement is not subject to adjustment and cannot be the subject of a claim under the dispute provision of this contract. Payments to the contractor for indirect taxes will be based upon contract earnings as shown on approved invoices to the U. S. Government for progress payments.

3. Value Added Tax (VAT)

a. The contractor, or the contractor's legal representative in Israel, will be required to register with the GOI VAT authorities, in accordance with GOI law and regulation.

b. For Israeli VAT paid by the contractor to subcontractors, suppliers, or others, the contractor shall seek reimbursement directly from the VAT authorities. For purposes of this clause, this is considered to be the input tax.

c. For every invoice the contractor submits to the U. S. Government, the contractor should add a separate line reflecting Israeli VAT at the appropriate rate. The U. S. Government will not pay the amount of the VAT line. Reimbursement of VAT other than input tax will occur in the specified way below:

i. The contractor is required to pay VAT to the GOI VAT authorities at the normal rate (currently18.0%). In this event, the contractor will submit to the MOD an invoice in Shekels for the VAT. The invoice to the MOD should reflect the VAT on the amount of the approved U. S. Government invoice. A copy of the contractor's approved invoice to the U. S. Government should be attached to the invoice to MOD. The contractor will be paid by the GOI MOD for VAT in

Israeli Shekels, based upon it's invoice to MOD. The contractor will than pay the

VAT to the VAT authorities.

The details of the process for reimbursement will be established between the contractor and the Ministry of Defense prior to the start of construction.

d. For pricing proposes, the contractor should not include VAT in the contract prices.

4. Third Country National Tax Plan:

a. The Contractor shall submit a Third Country National (TCN) Tax Plan within 7 calendar days after award which shall include: (1) an estimate of the amount of TCN personal income and employment taxes expected to be incurred in performance of the contract;

and, (2) a projected expenditure schedule showing when the contractor expects to incur these costs over the duration of the contract. Submission of the plan and acceptance of the contractor's proposal by the Contracting Officer will not constitute agreement to minimum level of reimbursement nor will it be a limitation on reimbursement to the contractor. The plan must address subcontractors as well as the prime contractor.

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Solicitation W912GB-14-R-0030

b. The TCN Tax Plan submitted is a required submittal under the resultant contract. In the event of significant changes in expenditure levels or timing of TCN workers during performance of the contract, an updated plan, along with justification for any changes, must be resubmitted by the contractor for Contracting Officer approval. The Contracting

Officer will not unreasonably withhold approval for changes in the plan.

c. The requirement for submission of a TCN Tax Plan does not constitute a requirement to use TCN labor on the project, not is it a warranty of the availability of TCN labor.

Ensuring adequate manpower to perform the work and decision concerning the makeup of the labor force are the responsibility of the contractor, acting within the laws and regulations of the State of Israel.

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SR-2 EXISTING STRUCTURE AND INSTALLATIONS

Prior to starting work, the contractor shall be in coordination with the Contracting

Officer or their representative for conformance with the contract requirements; and ensure that the contractor has all the information concerning cables and/or other pipes such as: telephone cables, electric cables, water pipes, sewage, etc.

The contractor is responsible for the wholeness of existing structures and installations, above and below the ground, at and in the vicinity of the work location, and will fix, at his own expense, any damage resulting from performance of his work, and/or as the result of harm to them in any way during the work performance (hit, bumped into, etc.) whether or not they are marked in the drawings or information was provided about them.

In the event it is discovered that an installation interferes with the work of the contractor, the contractor shall immediately notify the Contracting Officer or their representative and receive orders from him concerning the required handling of the matter.

Performance of work in the vicinity of underground electric cables, whether or not marked in drawings of the site or whether notification of their existence was provided by the Contracting Officer or their representative, is conditioned on the presence of the base electrical engineer or the engineer of the installation wherein the work is performed.

Performance of work in the vicinity of communications cables - only in the presence of a representative of Bezeq.

Performance of work in the vicinity of computer lines - in the presence of an authorized representative of the base and the Contracting Officer or their representative.

Within the framework of the contract price proposed by the Contractor, he is responsible to coordinate and summon these above mentioned representatives through the Contracting

Officer or their representative. The contractor will pay their costs.

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Solicitation W912GB-14-R-0030

SR-3 BASE SECURITY REQUIREMENTS

The Contractor shall comply with the base security requirements with respect to employees as detailed in Document C1

Subject to the security document hereinafter:

a. Entrance to the site is only by approval by name

b. Prior to issuing the Notice to Proceed, the contractor shall submit to the

Contracting Officer or their representative, a list of names of the workers that he intends to employ at the work site, including all the required personal details.

c. Workers whose entrance is approved shall be supplied with approval by name for the required performance time.

d. During performance at the site, the contractor and his workers are subject to the security conditions of the area as will be publicized from time to time by the proper authorities.

Israel Base Security Requirements

(Employment of Non-Israeli Employees)

1. The employment of all non-Israeli employees from any country having diplomatic relations with Israel is allowed. We do not warrant the availability of labor from these countries nor do we give assurance that individuals will be granted access.

2. The Contractor shall submit to the Contracting Officer or their representative a list of his permanent employees, enclosing their pictures. Each morning, upon arrival to the site, the employee will be inspected at the site gate by the base HQ representative according to this list, and then shall be accompanied by the contractor’s liaison (refer to Israel Base General Security Requirements Section, paragraph 7 below) up to the work site. The employees shall leave their passports at the gate upon arrival, and shall pick up their passports at the gate upon leaving at the end of the workday.

3. The Contracting Officer retains all rights to refuse or inhibit employment of any employee or the employment of any group of employees.

4. The following are conditions set forth for the employment of non-Israeli employees in Israel base areas:

a. The construction site shall be separated from the close military installations by means of a solid tight fence a minimum of 2 meters high.

b. The fenced area shall have one gate only for both entering and exiting the site.

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c. Arrival and exit to and from the work site shall be accomplished in a group only.

d. Work at the sites beyond a standard 8-hour workday will not be permitted without the prior express written approval of the

Contracting Officer or their representative. No overnight stay at the

Base construction site shall be allowed. The Contractor shall verify that after working hours no employee is left on site for overnight stay.

e. A liaison on behalf of the Contractor, serving as liaison officer between the Contractor and the Contracting Officer or their representative, shall be present on site during the employees’ stay on site. This person shall be an Israeli citizen who has completed their Israeli Defense Force (IDF) service, and shall have the approval of the field security.

f. During work hours, all employees shall stay at the construction site only. No exit or entrance to the site shall be allowed during work hours except for material supply trucks.

g. The Contractor shall supply his employees with all necessary services through the work site areas.

Israel Base General Security Requirements

(All Employees)

1. The base HQ, in coordination with the Contracting Officer or their representative and the Contractor liaison person, shall oversee the entry and exit of material trucks into the construction sites.

2. The Contractor performing the works shall sign a secrecy obligation document, according to which the Contractor agrees to fulfill all these present field security instructions, as well as any future instructions set forth for the construction site by the base HQ.

3. The Contracting Officer retains all rights to stop the Contractor’s work if he does not comply with the field security instructions set forth in this document and this action shall not be a reason for any financial claim.

4. Prior to issuing the Notice to Proceed, the Contractor shall submit the list of the project designers to the Contracting Officer in order to qualify them for entrance to the bases.

5. The employee’s work clothing shall be uniform in appearance with the

Contractor's name on it (not military of any kind).

6. For the matter of entrance and exiting of non Israeli workers (approved according Israel Base Security Requirements (Employment of Non-Israeli Employees

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Solicitation W912GB-14-R-0030

Section)), material trucks and visitors that do not have an entry permit, the base

HQ in coordination with the Contracting Officer or their representative, will approve a Contractor liaison to escort them from the gate to the work site and back. The liaison shall be an Israeli citizen from managerial echelon of the

Contactor.

7. The contractor shall appoint a guard (or multiple guards as required by this paragraph) that will be on site and will prevent any construction employees from leaving the construction fenced area and will escort any employee that has to leave the fenced area for any construction activity .The guard will be on site every working day from the time that the employees are arriving in the morning until the employees are leaving at the end of the day .The guard will not have any other assignments on site. The guard will be an Israeli citizen who served in the IDF.

The contractor shall submit the guard's documents for Base approval through the

Contracting Officer or their representative. The Contractor shall supply one (1) guard for each group of ten (10) non-classified Israeli employees.

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Restricted

(Confidential After Filling-in)

Form No. 1 – List of Employees

Serial

No.

Contractor name + liaison person and tel.

ID Card or

Passport

No.

Military

Number

Last

Name

First

Name

Father

Name

Full Address start date end date

A B C D E F G H

Contractor’s Signature: _______________________

(END OF THE ATTACHMENT TO THE SPECIAL CONTRACT REQUIREMENTS)

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Solicitation W912GB-14-R-0030