ML20009F760
| ML20009F760 | |
| Person / Time | |
|---|---|
| Issue date: | 04/03/1981 |
| From: | Glagola A NRC OFFICE OF ADMINISTRATION (ADM) |
| To: | Donohew J, Eisenhut D Office of Nuclear Reactor Regulation |
| References | |
| CON-NRC-03-81-130, CON-NRC-3-81-130 NUDOCS 8107310539 | |
| Download: ML20009F760 (1) | |
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N R C F O m a.i 25s flRC-03-81-130 OtvistON OF CONTR ACTS MCOtFICAr80N Piu?. S E R U.S. NUCLE AR REGULATORY CC.t?.115SICrJ II/A WASHINGTON. O.C. 20555
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NOTIFICATION OF CONTRACT EXECUTION CCNT9 ACT CASEC Crl-To:
Darrell G. 'Eisenhut. nirnetn" AuTaoaizATiON Nu..:sE R ITot;e)
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TYTE OF CONT AACT cost p10s award fee FE ATCO OF PE At C A?.: ANCE PRC;ECT TITLE Technical Assistance in Support of NRC Reactor 4/3/81 - 4/3/84 Operating Licensings Action Program II P AiNCIP AL INVESTiO ATOR NHC AUTHOG12EO RE?RC3dNTATIVE J. Donohew,flRR e?.a nu.:ce n F<:..~ J'.;52 R AP.: CUNT 2n 19-01-06 R6RQ1 No.4/ NRC FUf!OS S750,000 FUNDING ' ~
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Page 2 of 36 s.
LISTING OF CONTRACT ARTICLES Section 1.0 Description of Wot.
Article 1.1 Scope of Work Article 1.2 Reporting Requirements Article 1.3 Level of Effort Section 2.0 Performance and Delivery Article 2.1 Period of Performance Place of Performance Article 2.2 Options to Extend The Terms and Increase the Number of Article 2.3 Reactor Licensing Actions of the Contract Section 3.0 Consideration and Payment Estimated Cost, Base Fee, Award Fee, and Obligation of Funds Article 3.1 Award Fee and Performance Evaluation Article 3.2 Article 3.3 Payment of Indirect Costs Article 3.4 Payment of Base and Award Fee Article 3.5 Letter of Credit Article 3.6 Billing Instructions Article 3.7 Provisional Award Fee Payment Section 4.0 Inspection and Acceptance Article 4.1 Inspection Article 4.2 Acceptance Section 5.0 Special Provisions Article 5.1 Identification of NRC Project Officer Article 5 2 Responsibilities of NRC Project Of ficer Article 5.3 Technical Direction Article 5.4 Private Use and Protection of Unclassified Government l
Information and Control Information Data Protection of Proprietary and Company Confidential Article 5.5 Information Article 5.6 Disclaimer Article 5.7 Continuity of Services Article 5.8 Key Personnel Article 5.9 Government Furnished Material / Data Article 5.10 Representation and Certification Article 5.11 Subcontracts Article 5.12 Cuidelines for Work Flow Article 5.13 Small Business and Small Disadvantaged Business Subcontracting Plan (negotiated)
Section 6.0 Ceneral Provisions Article 6.1 Ceneral Provisions Article 6.2 Alterations to Ccneral Provisions
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Section 7.0 Contract Documents
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' DIE CONTRACT SCHEDULE Section 1.0 Description of Work i
Article 1.1 Scope of Work Independently, and not as an agent of the Government, the contractor shall manage and review 300 Reactor Licensing Actions associated with the engineering disciplines listed below. The specific licensing actions will be selected from the topics listed below for each discipline or similar topics of equivalent complexity. The specific review assignments will be made in accordance with the procedure set forth in Article 5.12 below.
Specific Topics 1.0 Reactor Systems Engineering 1.1 Reactor Vessel Overpressure Protection Incidents have occurred at pressurized water reactors involving over-pressurizing the reactor vessel while the reactor was in a solid cold shutdown condition. The NRC staff has required that licensees propose plant modifications to provide an overpressure mitigating system and technical specifications to govern the availability and operation of the mitigating system.
The systems proposed generally include electrical control and mechanical pressure relief features. The contractor will review the licensees proposals for compliance with NRC criteria and model technical specifications.
1.2 Conversion to Standard Technical Specifications Each nuclear power plant operating license is restricted by a set of specifications for safe operation referred to as the plant technical specifications.
These specifications. include requirements for the minimum number of safety systems which must be operable in the various permissible modes of plant operation and other general safety requirements.
The HRC staff has developed a sct of standard technical l
specifications for each of the major types of licensed power reactors.
However, these standard technical specifications have not been backfitted 1'
across the board to all existing reactors.
Licensees occasionally propose amendments to existing technical specifications for operating convenience and improved safety.
In addition the NRC staff has instituted a program for the orderly conversion of existing plant technical specifications to standard technical specifications all reactors when practical.
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Page 4 of 36 fhe contractor will review proposed individual technical specification amenda2nts and ecmplete conversions of technical specifications for compliance proposed deviations with the NRC standard set for the type of reactor involved.
from the NRC standard technical specificatiens will be evaluated from en Plant specific inputs required overall nuclear safety systems point of view.
for the standard technical specifications will be evaluated against the individual plant syste:s design.
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Durino tona Tehn Coolino Fo11cwine a LB.A 1.3 poronSolubility During Icng ter.s cooling fo11cwing a LOCA, the concantration of boric
. acid in the reactor vessel should be caintained be1cw the solubility limits to avoid precipitation by providing a flushing flow of coolant through the reactor vessel. This flushing is acccmplished either by simultanecus cold and hot leg infecticns of coolant, or by simultaneous Either method is cold leg. injection and hot leg suction of coolant.
acceptable; hcwever, areas of concern have arisen on the long termFive CE acceptability of these methods.
St. Lucie 1, Palisades, f t. Calhoun 1, and Calvert Clif fs 1 and 2) have The contractor will review been requested to address these concerns.
the responses of the ifcensees and provide written technical evaluations to the NRC.
2.0 Electricai Encineerino 2'.1 Status Annunciator and Indication Instrumentation pcwer Sucoly Systems Safe operation of a nuclear plant requires that sufficient information be available to operators at all tims to bring the plant to a safe shutdown condition in the event of a loss of offsite power or some other emergency.
The contractor will review information provided by the licensees to detent.ine if the pcwer supply and bus arrangemnts for the ststus annunciator systems and indication instrumntation are adequate to assure that at least one channel of information is available at all times. The pcwer supply system status annunciator system will also be. reviewed to detem*ne if it is adequate to assure that the operators will be aware of any degradation which may have l
occurred.
Dacraded Vol tace of Offsite and Onsite Pcwer Distribution System and Interaction _
2.2 of the Offsite ano Onsite Emergency Pcwer Syscems
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The contractor will review and evaluate licensee's submittals concerning onsite emergency power and distribution systems to assess the susceptibility of the associated redundant safety-related electrical equipment to:
a)
Sustained degraded voltage conditions at the offsite power source.
b)
Interaction of the offsite and onsite emergency power systems.
c) Voltage drop of the offsite and onsite pcwer distribution systems.
The contractors evaluation' vill be based en criteria and positions esta'clished' by the NRC staff.
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2.3 RpS power Sucolies_
During the review of Hatch 2 operating license application..NRC cuestioned tne capability of the Class lE reactor, protectic:' system (RpS) (and other Class 1E systems and components pcwered from the Ep! power supply) to accorodate the effects of possible sustained abnorral voltage and freq-These abnormal power ueocy conditions from the non-Class lE supply.
conditions could be caused either by combinations of undetected single These abnorcal failures or by multiple failure c'aused by earthquakes.
power conditions could result in damage to the Class 1E systers and components with the attendant potential loss of capability to performNRC their intended safety function.
vulnerable to the sare potential failure as Hatch 2.
GE has proposed a' design in conceptual form which"will resolve NRC's The proposed modifications consist of the addition of two Class IE " protection packages" in series between each motor generator conce rns.
set and its respective Rps bus, and the addition of two similar packages Each pro-in series between the alternate power source and the Rps bus.
tective package would include a breaker and associated overvoltage,Each prote undervoltage, and underfrequency relays.
Sore be testable-and seismically qualified as Class lE equipment.-fa modifications.
The contractor will review the submittals of the licensees which request installation of the protective packages to make sure that they meet NRC criteria and provide written technical evaluations to the NRC.
2.4 Diesel Generator Reliability Operation of a nuclear plant requires that the diesel generators supplying onsite emargency power are available on demand for safe shutdown of the A report has reactor in the event of an accident or loss of offsite power.
been completed NUREG/CR-0560, " Enhancement of Onsite Eme Generator Reliability."
that have had an effect on the reliability and availability of onsite emergency diesel generators at various nuclear plants, and reconne for corrections of these problers.
areas which, with one exception, are generic to all emargency generator The one exception applies to plants using emergency genera-tors driven by diesel engines manufactured by the Electro-Motive D i
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of General Motors (EMD-GM).
The licensees ations have been forwarded to all liceniaes of operating plants.
will respcnd to these requests stating how they moet or will meet the The Contractor will evaluata these responses to assure d i
. that each licensee has complied with and will implement the reccamen at ons recomnendations.
The end product will be the preparation of a Safety of NUREG/CR-0560.
Evaluacion Report (SER) for each operating plant.
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t Page 6 of 36 Fechanical Encineerino and Ecuicment Oualification_
3.0 Electrical and Mechanical Ecuicaant Environmntal Oualification.
3.1 the ability The NRC staff has undersay a program to systemtically evaluat.:
of safety related equipmnt to function in the severe hostile environment it could be exposed to during a design basis accident (e.g., LOCA, Main Steam The licensees and applicants for licenses are submitting Line Break).
docupantation (topical reports,. test reports, etc.) to deconstrate the ability Tne cent actor will review this of the equipraant to functicn as recuind.
documentation for c:mplianca with NRC criteria.
3.2 Seismic and Vibration huip. tent Qualification Equipment important to safety must be qualified.to function in any vibratory The environment-that could result from normal operation or a seismic event.
utility licensees and applicants for licenses are required to provide data The and analyses to dec:nstrate the qualificatica of this equipment.
contractor will review the licensees and applicants submittals for compliance with NRC criteria using a set of review guidelines to be developed by the NRC and contractor for different classes of plants and approved by the NRC prior to beginning the reviews. The review guidelines will, be based on Regulatory Guide 1.100, IEEE Std. 344-1975, and the NRC Standard Review Plan Sections 3.9.2, 3.9.3, and 3.10.
3.3 PW1 Teedsater Line Cracks Cracks, cracklike indications, or fabrication defects have been found in the The primary vicinity of feedwater oczzies at pressurized water reactors.
cause of cracking is thermal fatigue due to significant temperature differenc.es between the top and bottom of the pipes when the facilities are at hot standby conditions and during startup and shutdown when the feedsater heaters are not being used.
The NRC PWR Pipe Crack Study Group has investigated the safety imol. cation of this cracking incidence and will rec: pand both short tem and long tem corrective actions to minimize the potential for further cracking.
f The contractor will assist the staff to review the applicants /11censees surveillance programs ta ensure that both short term and long tem corrective.
l measures to be recomwanied by the Pipe Crack Study Group are appropriately included in tneir surveillance programs. This work will require a strong background in the areas of stress and fatigue analyses, thermal hydraulics and reactor system operation, materials engineering, and ASME Code Sections III and XI.
BWR Feedsater No::le and Centrol Rod Drive Return Line (CRDRL) Nozzle Cracking 3.4 Cracking in feedwater noz:le blend radius or bore region has been cbserved over the past few years in the majority of operating SWR Tne initiation of cracking is due to high cycle feigue caused by fluctuations in watar temperature within the vessal in the sparger-no::le region during periods of Icw feedsater temperature when the ficw may be
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unsteady and intamittent.
the larger pressure and ther.at cycles associated with startuo and shutdcwn.
Cracks similar to those found in fecesater no::les were also cetected in l
CRDP.L nor:les.
The cause of cracking appears to be thermal fatigue.
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Page 7 of 36 The resolution of these issues was rece. tly published in NUREG-0619 whichThe centains the staff positions on implementation of corrective reasures.
contractor will review the applicants / licensees surveillance program to ensure that the reccacanded corrective actions will be implemented.
The contractor should have expertise in the areas of stress and fatigue analyses, reactor system operation, and materials engineering.
Some kncwledge of ASME Code Sections III and XI is also desirable.
3.5 Piping and Support Rean,alysis There have been several cases over the past couple of years wherc licensees have been required to perform piping and support reanalyses. These cases resulted from the discovery of either incorrect modeling assumptions or computer code errors. To resolve this type o'f problem the licensee cust make an assessment of the extent of pro 61em, obtain either verified modeling data or computer codes, perform reanalysis of the affected piping and supports and make any required field modifications. The contractor wi11 be required to review and evaluate the information submitted by the licensee to document the appropriateness of his actions.
ahis work will require a strong background
, in piping analysis and support design and experience in the application of
%he ASME Code,Section III.
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Page 8 of 36 4.0 Faterials Engineering 4.1 Stress Corrosion Crackinc in EWR pressure Scundary pioing Leaks and cracks in the heat-affected :cnes of welds that fain austamatic stainless steel piping and associated cceponents in SWRS have been observed in 304 s:ainless steel with dia.eters of 8 inches or less.
The incidence of cracking has also teen :5 served in saae large diameter (>20 inches) stainless steel piping in a foreign country. All the cracks were attributed to intergranular stress corrosien cracking (IGSCC) due to the c:mbination of high local stress, sensittaation of material, and high oxygen content in the wa ter.
The NRC staff will shortly issue an implementation.docuaznt, NUREG-0313 Revision 1, which sets forth the revised acceptable methods to reduce the IGSCC susceptibility of SWR Coce Class pressure. boundary piping.
Con tractor personnel with a strong background in stress corrosion cracking problers and inservice inspecticn of nuclear piping will review the BWR applicants /
licensees technical specifications to determine if they comply with the staff's positions to be specified in NUREG-0313,Revisicn 1.
5.0 Radiolooical Encineering and "ealth Physics 5.1 Radiological Effluent Technical Soecificatiens (RETS) Imolementation for Ooeratinc Reactors The technical specifications which govern the cperation of a power reactor presently incluce limits on the amount of radicactivity which may be released in effluents.
These technical specifications for operating power reactors must be amended to implement the requirements of 10 CFR Part 50, Appendix I and 40 CFR Part 190.
The NRC staff has sent the model standard RETS to operating reactors as an example of an acceptable method of imple-mentation. The operating reactor licensees have submitted proposals to amend their technical specifications.
The RETS include specifications on -
effluent monitoring, enviror. mental radiological monitoring, and rad 4aste equipment operation. Also, the RETS are supported by an Offsite Dose Caiculational Manual and a (Solid Radwaste) Process Control Program. The cos 'ractor will review the licensee's proposed amandments and supporting docLzants for compliance with NRC criteria.
l 5.2 Radiation Monitorino to Allow Containment Puraing and Vent Value Ciosure During Power 0:eration The NRC is presently ccmpleting a generic review of the radiological consequences of containment venting or purging during power operation.
The generic evaluation includes an assessment of the thyroid and whole body doses at the site boundary for the expected normal operation, for operation at the maximum permissible values of coolant activity levels l
and coolant leakage, and under accident conditions ranging from r.
small leak to the design basis LOCA.
Based on the conclusions of this j
generic study, NRC will require limitation of contairment venting / purging operations to assure that the radiological consequences are within the l
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Page 9 of 3J applicable regulatory guidelines by ' appropriate tech spec's.
Depending on the specific plant paranaters, eperating reactor licensees may submit technical specif: cations which differ from the generic evalua-tions.
The contractor is to review such submittals to determine: (a) the applicability of the generic evaluation to the specific plant and site, (b) the need to modify the generic requirements for venting /
purging, and (c) evaluate the radiological consec,uences of any deviations from the generic evaluation. The contractor is to document his review in a plant-specific technical' evaluation repor+
5.3 Radiolocical Steam Generator Reclacement Procrams
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Steam generators at several PWRs are experiencing continued tube degra-dation.
At thrm. plants (Surry, Turkey Point, and Palisadas) the degradation has become severe enough to warrant replace ent of the steam generators.
All three licensees h ve submitted their plans for replacement to the NRC.
NRC revies of the Surry Plan is complete and its review of the Turkey Point Plan is almost complete.
These planned replace:ents (replacement is complete at Surry II) will involve occupae tional doses on.the order of 2000 m.an-rems p'er reactor unit.
The contractor will review other licensees plans for compliance with NRC criteria and regulations.
The review will include the preparation of.Techaical Evaluation Reports, Environmental Statements, and expert testimony for ASLB hearings on the subject.
The NRC criteria will be those established in the Surry and~ Turkey Point reviews covering such topics as:
- 1) Occupational radiation exposure estimates. -
- 2) Radiological effluent estimates, and
- 3) License
- efforts to maintain occupational radiation exposure as low as is reasonably achievable.
5.4 Control of Heavv toads Over Scent Feel Pool l
1 Overhead handling systems are used to' lift heavy objects in the vicinity of spent fuel in both PWRs and SWRs.
If a., heavy object, e.g., a spent fuel shipping cask or shielding block, were to fall or tip onto spent fuel in the storage pool or the reactor core during refueling and damage the fuel, there could be a release of radioactivity to the environment and a potential for radiation over-exposure to inolan.t peFsonnel.
NRC has initiated a generic review of the potential for such accidents at all operating reactors.
For those facilities where this review indicates that damage to scent fuel, as a result of a heavy load drop, cannot be ruled out, it will be necessary to perfonr. calculations regarding the radiological consequences of such an accident.
The contractor will perform the radiological consequences calculations, including an analysis of the releases resulting from the failed fuel, transport of the radio active material to the environment, and calculation of on-site and cff-site doses.. The contractor may review the licensee's submittais of the radiological consequences of such an accident.
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5.5 Post '.0CA Hydrogen Control Hydrogen is generated following a loss-of coolant accident as a result Several of metal-water reacton in the core and by radiolysis of water.
methods are typically used in crder to ma'intain hydrogen at safe concentrations in the post accident containment atmosphere.
These include:
inerted atmospnere, hydrogen recombiners, and containment venting. The contractor will calculate the radiological consequences of venting the containment for post-accident hydrogen control.
The analysis includes.the calculation of decay factors for a source term specified by NRC, the transport of rcdioactive materials to the environment, and the resulting doses at the site boundary and low population zone boundary.
The contractor may review the licensee's calculations of the radiological consequences of venting the containment. The contractor will review any licensee's proposed licensing amendments and supporting documents for compliance with NRC criteria.
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6.0 HUMN FACTORS ANALYSIS,6 NFp CONTROL ROOMS, PROCEDURES AND PERSONNE(
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Control room layouts /ound in present day nuclear power plants have been designed to 'accomodate the function to be perforr.ad rather than firstly relating to the human operator. This lack of hur.an engineering in control room design as wall as procedures to be utili:ed during all plant operating modes can lead to undesired consequences such as those which occurred during the EI-2 accicent. Therefore, several types of
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reviews and audits east be made to assure the adequacy of current day procedures, c:erator training and control room design.
The contractor will raview the license; proposals, i.e., licensing actions, for imole-i entation of NRC criteria developed in response to the mI Action Plans.
6.1 Emertency Oceracino procedures
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The contractor will assist NRC in the preparation of guidelines to be implemanted in a review of plant emergency operating procedures.
Using these guidelines the contracter will review the procedures and prepare Technical Evaluation Reports to document the results of their reviews.
The initial reviews will include the emergency operating procedures for such accidents as a small break LOCA, Steam generator tube rupture, Main Fee &ater transient cnd inadequate core cooling.-
l 6.2 Control Room Layout A review of control room layouts will be performed using detailed guide-lines furnished by the Staff. The contractor c.ay be required to review and corcent en the guidelines before beginning the reviews.
It is antici-pated that the reviews will include the use of coccon human factors monitoring equipment (e.g., light maters, noise level indicators).
A Technical j
Evaluation Report will be generated for each control room reviewed.
6.3 Operator Oualifications The contractor will revien licensee's operator qualification and training programs against a set of NRC requirements with specific emphasis on:
Adequacy of licensee's examination p'rogram for replacemant operators a.
(see NUREG-0094, NRC Operator Licensing Guides).
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Adequacy of licensee's requalification/ certification program for j
existing operators and training facilities.
In addition the contractor will assist the NRC in developing requirements l
for licensee's training instructors and review the training programs for compliance.
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Page 12 of 36 7.0 Structural Encineerino 7.1 Scent ruel prol Modifications _
Modifications are frequently proposed by licensees to increase spent fuel The increase is accceplished by using higher density storage capacity.The new spent fuel storage rack designs are revicond for storage racks.
structural design, caterials aspects, analysis procedures for all loads including seismic and impact icadings, loading ccmbinations and structural acceptance criteria, and quality control for the fabrication and installa-The review is perfonaad in accordance with Sections 3.7 and 3.8 tion.
of the Standard. Review Plan and the associated branch technical position The centractor will review the licensee proposed on spen fuel storage.
nodification for compliance with NRC criteria.
Structural Reevaluations for New or Increased Plant loads _
7.2 The staff occasionally finds it necessary to re-evaluate nuclear power plant structures in the light of new seismic and plant accident data.
Experience indicates that, on reassessment, seismic inputs tend to be raised and new plant accident loads are developed that require the reeval-The contractor uation of plant structures to withstand these loadings.
will perfora qualitative and quantitative assesscents of the suitability of plant structures to resist such loads as ceasured against current or modified acceptance criteria.
Thi? work requires background and knowledge of nuclear structural analysis procedures and industry concrete and steel design codes and practices.
Article 1.2 Reporting Requirements The contractor shall furnish a monthly letter-type progress report by the fifteenth of the month for'the previous month being reported.
This report shall state in concise form:
A short description of the project and objectives; a.
b.
A brief statement on what was actually accomplished in completing each assigned task during the reporting period; i
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Page 13 of 36 c.
Funds committed during -Jz.e reporting period; d.
What is planned for accomplishment during the next reporting perod; Preliminary or interim results, conclusions, trends, or other e.
items of information that the contractor feels are of timely interest; f.
Problems or delays that the contractor has experienced in the conduct of his ef fort; i
g.
Specific action that the contractor would like NRC to undertake to alleviate a problem; h.
Updated task and sub-task schedules, network flow chart, program milestone chart, program management summary, personnel assignments, and funding from those initially submitted in the plan of work and methodology.
The contractor shall. prepare a report for each licensee submittal at the completion of his review. This report shall as a minimum include:
The licensee's submittals should be reviewed to determine the adequacy of the information presented with the information requirement stated
^
by the sta f f.
If the submittals are found to be incomplete, the contractor will provide requests to be transmitted to the NRC staf f for forwarding to licensees to obtain additional information. The contractor will determine the extent to which the licensee's design criteria comply with criteria provided by the staff.
The contractor will provide a written technical evaluation for each plant addressing the acceptability of the licensee's proposed design and technical specification modifications as appropriate and the adequacy of these modifications.
Copies of all progress reports shall be submitted in accordance with the above criteria and shall be forwarded to the following NRC personnel:
1 Fee Determination Official (FDO)
Darrell Eisenhut Performance Evaluation Board (PEB) -
Evaluation Coordinator A. F. Clagola y
Performance Monitors All current monitors The contractor shall prepare and arrange the monthly progress meeting to be held each month. Final arrangements for the meeting (i.e.,
agenda, date, time, and location) shall be made with the NRC Project Officer named in Article 5.1-Sec.5.0.
Generally, these meetings will j
be held at the contractor's facilitics in Philadelphia, Pennsylvania.
l l
E. Butcher, M.J. Mattia, J. Donohew, C. Lainas, J. Olshinski.
y Page 14 of 36 Article 1.3 Level of Effort Druing the performance of work under this contract, the contractor agrees to utilize personnel in the following categories for the approximate time indicated.
Category for Franklin Research Center Approximate Person-Hours
- Department Director 1,500 Laboratory Manager 3,000 Principal Scientist / Engr.
6,000 Sr. Staff Scientist / Engr.
14,712 Sr. Research Scientist / Engr.
19,500 Res. Scientist I/Res. Engr. I 9,000 Res. Scientist II/Res. Engr. II 6,000 Research Assistant
-1,800 Res.'Scientis; III/Res. Engr. III 3,000 Report Preparation - Technical 1,500 Report Preparation - Tying 1,500 TOTAL 67,512 The contractor agrees to use his best efforts to accomplish all the work outlined or referenced above. His obligation will be deemed complete if the work is performed in accordance with high standards of scientific and professional skill, and the approximate level of effort has been digligently applied; except, however, all other requirements must be met including delivery of reports and materials as may be required under the contract.
Section 2.0 Performance and Delivery Article 2.1 Period of Performance Performance of this contract shall begin on April 3,1981 and shall not extend beyond April 3, 1984, unless the period is extended by amendment of the contract.
Article 2.2 Place of Performance The work under this contract shall be performed at the Contractor's facilities located in Philadelphia, Pennsylvania.
4 Article 2.3 Cption to Extend the Terms and Increase the Number of Reactor Licensing Action under the Contract The Government may at its option increase the number of Licensing Actions to be reviewed up to a maximal of 300 and extend the term of the contract for an additional one, two or three (3) years. The contracting Officer shall give preliminary notice of the Government's Intention to exercise said option at least 120 days before this contract is to expire. The Government at anytime within this 120 day period may exercise this option, if at all, by written or telegraphic notice signed by the Contracting Officer and sent within the option period specified.
(Such a preliminary e
Page 15 of 36 notice will not be deemed to commit the Government to exercise of said option.)
Within thirty days af ter receipt of the written notice of the Government's intent to renew, the contractor shall submit a cost proposal and a Small and Disadvantaged Business Subcontracting Plan, if required to the Government.
If the Government exercise this option for a one year period, the contract as i
renewed shall be deemed to include this option provision. However, the total duration of this contract, including the exercise of any options under this clause, shall not exceed (6) years.
Section 3.0 Consideration and Payment Article 3.1 Estimated Cost, Base Fee, and Award Fee 1.
2.
The Contractor shall be reimbursed for all allowabic costs incurred, t
and accepted by the Contracting Officer, not to exceed the estimated l
amount of 3.
Award Fee may also be carned under this contract as provided by l
Article 3.2, Award Fee.
4.
Total funds currently available for payment and allotted to this contract is $750,000. 00 of which $683,952.00 represents the estimated reimbursable costs, and of which 66,048.00 represents the l
award fee for the period April 3, 1981 through September 30, 1981.
For further provisions on funding, see the General Provision entitled:
" Limitation of Funds", clause No. 3.
i 5.
It is estimated that the amount currently allotted hereby will cover the performance period April 3,1981 through October 31, 1981.
Article 3.2 Base and Award Fee An award fee pool of M is hereby established for the period April 3,1981 through september 30, 1981.
Evaluation of award fee earned l
for the period April 3, 1981 through September 30, 1981 shall be accomplished quarterly. Evaluation of award fee earned for the period i
i April 3, 1981 through April 3, 1984 shall be accomplished as follows:
1 April 3,1981 through June 30, 1981 July 1, 1981 7"
September 30, 1981
(
October 1, 1981 March 30, 1982 April 1, 1982 September 30, 1982 October 1, 1982 March 30, 1983 April 1, 1933 September 30, 1983 October 1, 1933 December 30, 1983 January 1, 1984 April 3, 1984 Preliminary evaluation shall be conducted by a Performance Evaluation Board (PEB).
The board shall recommend the fee award to the NRC Fee Determination Official (FDO).
The final evaluation and interim determination as to the amount of award fee carned during an evaluation 1
Page 16 of 36 l
I.
Article 3.3 - Payment of Indirect Costs Pending establishment of final indirect cost rates for any period, billing and reimbursement of indirect costs pursuant to General Provision No. 5.5, Negotiated Overhead Rates, the following provisional rates applied.to the bases identified shall be in effect unless otherwise modified:
Identification of Type of Rate Rate Base Overhead 1EED Total Direct Labor and
~m eet.- Fringe Eenefits G&A See below See Below
~
The above provisional rates apply for the period April 3, 1981 through January 1, 1982.
The following provisional rates apply to bases identified and shall apply for the-period April 3, 1981 through December 31, 1981 unless otherwise modified:
A provisional C & A rate of ll h is applied to all FRC costs except subcontracting costs. A provisional G & A rate of is applied to the first 4llllllP of each subcontract.
A fixed G & A rate of is applied to those to exceed 6 subcontracting costs in excess of ut not for each subcontract. A fixed G & A rate of is applied to each subcontracting costs exceeding 6 l
e e
sq u a u
s Article 3.4 Psyrent of Base and Award Fee Tne fees provided for in Article 3.1, " Estimated Co'st, Base Fee, Aw'ards Fe_e and Obligation of F nds", shall be paid as specified in Attachment A.
Letter of Credit Article 3.5 This contract shall he funded under a Nuclear Regulatory Co.h. mission (NRC) letter
~
of Credit, against uhich the Contractor uili uithdraw funds pursuant to HRC Letter of Credit Procedures and Instructions for Recipient Grganizations as approved by the U. S. Capartmant of Treasury'*on April 1,1977.
Tne Contractor shall request cash drawdcwns only as and when actua11y needed for its disbursements, and shall make timely reporting as required by NRC with the understanding that failure to adhere to these commitments.11y.cause the unabligatad portion of the Letter of Credit to be revoked.
In no event shall the accunniated total of funds withdrawn for the account of this contract against such Letter of Credit exceed the presently obligated amount in the contract as covered by Article 3.1 subparagraph 4.
Wen io requested in writing by the Contr. acting Office'r, the Contrac, tons)3a11 repay to the Government such part oT the unliquidated balance of the advance payments as shall, in the opinion of the Contracting Officer, be in excess of the Contractor's current needs oFin eicess of the contract's estimated cost.
if upon completion or tarmination of this contract, all amounts obtained by the Centractor under this '.ettar of Credit have not been fully liquidated by t
authorized charges undar.the contract, the balance thereof shali be deducted frcm any sums otherwise due to the Contractor from the Governmenc, and any excess funds sha11 be repa,id by the Contractor to the Government upon damand.
Tne Letter of Credit Identification Number for The Franklin Institute is 31-00-0002 3
f.
t Upon the happening of any of the folloQing events of default, (1) termination of this contract by reason of fault of the. contractor; (2) a finding by the Adhinistering
, Office that the Contractor (1) has failed to observe any of the covenants, conditions, or warranties of these provisions or has failed to comply with any material provision of this contract, or (ii) has so failed to make progress, or is in such unsatisfactory
,_,,,g,,
Page 18 of 36 i
or (iii) financial condition, as to endanger performance of this contracct, has allocated inventory to this contract substantially exceeding reasonable requirements, or (iv) is delinquent in payment of taxes of the costs of in the ordinary course of business; (3) performance of this contract appointment of a trustee, receiver or liquidator for all or a substantial part of the Contractor's property, or institution of bankruptcy, reorganization, (4) arrangement or liquidation proceedings by or against the contractor; service of any writ of attachment, levy of execution, or commencement of garnishment proceedings with respect to the Special Bank Account ; or (5) the commission of an act of bankruptcy; the Covernment, without limiting any rights which it may otherwise have, may, in its discretion and upon written Bank notice to the Contractor, withhold further withdrawals from the Special Account and withhold further payments on this contract. Upon the continuance of any such events of default for a period of thirty (30) days af ter such written notice to the Contractor, the Covernment may, in its discretion, and take the without limiting any other rights which the Government may have, following additional actions as it may deem appropriate in the circumstances:
(1) Withdraw all or any part of the balance in the Special Bank Account by checks payable to the Treasurer of the United States signed solely by the Countersigning Agency and apply such amounts in reduction of advance payments then outstanding hereunder and in reduction of any claims of the Government against the Contractor; (?) Charge interest on advance payments outstanding during the period of any such default at the rate established by the Secretary of the Treasury pursuant to Public Law 9 2-41, 8 5 S ta t. 97 for the Renegotiation Board:
No interest shall be charged for advance payments made hereunder, except interest during a periol oi' 'cfault as provided in the preceding paragraph.
The Contractor shal. charge interest at the rate established by the Secretary of the Treasury pursuant to Public Law 92-41; 85 Stat. 97, for the Renegotiation Board on subadvances or downpayments to subcontractors, and such interest will be credited to the account of the government.
However, interest need not be charged in subadvances on subcontracts with nonprofit educational or research institutions for experimental, developmental or research work.
Article 3.6 Billing Instructions In addition to the procedures specified in Attachment D, U.S. N.R.C letter of Credit Instructions for Recipient Organizations, the Contractor shall forward concurrently two (2) copics of each monthly invoice to the Contrecting Officer.
Art,icic 3.7 - Provisional Award Fee Payment to exceed Provisional payment o f award fee shall be made in an amount not
$256,440.00 (based on one-half of the award fee and representing the " expected level of effort").
During the period April 3, 1981 - April 3, 1984, the Contractor may bill for provisional payment of award fee at the rate of 1/2 of the total award fee dollars available for the evaluation period. These billings shall be made
. monthly and prorated accordingly.
' ' ~
Pege 19 of 36
, Interim fee payment will, cease when:
l.
The fee awarded exceeds the provisional fee.
2.
The Contracting Officer determines that the proje'cted award fee will be less than the fee paid under this provision.
Payments under the provisions of this Article shall be credited to any amount awarded under Article 3.2 - Award Fee.
In the event that the payment under the provisions of this Article
. should " exceed that amount which can be awarded under the provision's of Article 3.2 - Award Fee, then such overpayment may be deducted frcm allowable costs due and payable or paid under this contract.
Section a.0 Insoection and Acceotance-Inscection_
Article 4.1 Inspection of the serhicas and d511verables called for hereunder shall be perfor=ad by the f:RC Project Officer specified in Article 5.1.
Acceota.ce, Article 4.2 Acceptance of the services snd deliverables called for hereunder shall be accomplished by the Contracuing Officer, or his duly authorized representative, contract shall be the t,:RC Project officer named who for the purposes of thit in Article 5.1.
Section5.b Soecial Provisions Article 5.1 Identification of f:RC Profect Officer r.
J. Donohew isdesienEtedbytheContractingOfficarasProjectOfficer' under this contract. Authorities and responsibilities as delineated in Article's 5.2 and 5.3.
Article 5.2 Resconsibilities of the :RC Profect Officar (a) The Project Officer is resocnsitia for:
(1) Mcnf toring :ne contrac:cr's.:achnical prcgress, including :he surveillance and assessmen; of ;arfor:anca anc racc=endinc :: the Cen:rac:ing Officer changes in recuire.eents; (2) in ar:reiing the s:a: aman:
of work; (3) parforming technical evalua:icn as raquirec; (1) performing tachnical inscac:f ons anc Sc C:ancas r?cuir2d Dy this contrac:: anc (5) assis:ine :ne ::n:rac:or in :he resolutica of tachnical or:cleos anc:un arec durine : arf:r anca.
- 4ithin the ;urview of this autacrity. :ne recrassniative is authorized to accrove ;ayran vcucnars for succlias/rarvices recuirad uncer :ne c:n:ract. ~he ccntrac-inc Officer is
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respcnsib*e f:r dirai.:ing er nego ia-ing ary changes in : ares,
~
conditions, or am0un:s citac in the g n.rac:.
3
j, Page 20 of 36 (c)
If the contractor receives guidance from the Project Officer which the contractor feels is not valid under the criteria cited above, the contractor shall immediately notify the Project Officer.
If the two are not able to resolve the question within five days, the contractor shall notify the Contracting Officer.
\\
Article 5.3 Technical Direction (a) The NRC Project Officer named in Article 5.1 of this contract is responsible for guiding the technical aspects of the project and for the general surveillance of the work performed. The Project Officer
.is not authorized to make any commitments or any changes which constitute work not within the general scope of this contract, change the expressed terms and conditions incorporated into this l
contract, or constitute a basis for any increase in contract price or extension of the contract Period of Performance.
l l
f (b) Technical direction must be within the general scope of work state in the contract.
The Project Officer does not have the authority to I
l and may not issue any technical direction which:
(1)
Constitutes an assignment of additional work outside the 1
I general scope of the contract.
(2)
Constitutes a change as defined in the clause of the General Provisions, entitled " Changes."
(3)
In any way causes an increase or decrease in the total estimated contract cost, the fixed fee, if any, or the time required for contract performance.
1 I
Page 21 of 36 (4)
Changes any of the expressed terms, conditions or specifications of the contract.
i (c) ALL TECHNI JAL DIRECTIONS SHALL BE ISSUED BY THE PROJECT OFFICER OR HIS AUTHORIZED TCPTCSENTATIVE IN WRITING OR SHALL BE CONFIRMED BY HIM IN WRITING WITHIN TEN 130)
WORKING DAYS AFTER VERBALLY AUTHORIZED:
A copy of said written authorization shall be submitted to the Contracting Of ficer.
If the contractor receives guidance fron the Project Officer or his authorized representative which the contractor feels is not valid i
l
. nder the criteria cited above, the contractor shall immed ate y u
notify the Project Officer.
If the Project Officer and the contractor are not able to resolve the question within five days, the contractor shall notify the Contracting Of ficer.
(d)
In the event the Project Of ficer desires a change to the c ontract within one or more of the categories as defined in (1) through (4) to the Contracting of paragraph B above, he must direct such request Officer. The Contracting Office will handle the request in accordance with applicable laws and regulations.
(e) Any unauthorized commitment or direction issued by the Project Officer may result in an unnecessary delay in the Contractor's performance, and may even result in the contractor expending his funds unallowable costs under the contract.
( f) For guidance from the Project Officer to the contractor to be valid, it must:
(1) be consistent with the description of work set forth in this contract; (2) not constitute new assignment of work or change to the expressed terms, conditions, or specifications incorporated into this contract; (3) not constitute a basis for an extension to the period of permformance or contract delivery 4
schedule; (4) not constitute a basis for any increase in the contract price.
4
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Page 22 of '36
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Article 5.4 Private Use and Fre:ection of Unclassified Govern =ent information and tontrac: inforra:1:n inc Cata (a) Except as specifically authorized by this c,0ntract, or as otherwisa ~ approved by the Centrac:ing Officer, records, data, Informaticn, doc'. cants and ma:arial caveloced'or accuired by or furnished to the contrac':or in the carfcr=ance of this contract snall be used cnly in c:nnection with the work per-formed under this c:ntract.
The c:n:rac;ce shall, ucen ccmolation or :arminatica of this centract transmit to the Ccm=ission all records or other information, cccurents and caterial, anc any copies :nereof, furnished by the C:= mission to the centrac ce in tne ;erformance of this centract.
(b) The centractor shall be res:cnsible for safeguardine frcm unauthori:ed disclosure any informaticn er other documents and daterial 'exemot from public discicsure by the Ccemission's reculaticas and cade available to the c:n:rac:or in c:nnectica with the perfor=ance of the work under Onis c:ntrac:.
The contractor agrees to conform to all regu'aticns, recuiremen:3, and directica of the C:mmissicn wi:5 respac: :o such ma arial.
(c) The c:ntractor's duties under this clausa shall not be c nstrued to limit or affec: in any way the c:n:rac:or's obligati n :o ::nf:rm to all securi y regulaticns anc recuire-cents. of the C: mission ;ertaining to classified informaticn and catarial.
Article 5.5 Fratec: ten of pr:orietary and Cemaany Ccnfidential Informa:icn If procrietary cr'ce: any confidential data is provided to the contractor by
.*e Governcan: in c:nnectica with this centrac:, the c:ntractor agrees :3 safeguard such informatica and acrees no
- o release such inforeatica to any person not cicec:1y involvec in :ne pericreanca of werk under this contrac: unless such re'!sasa is authori:ed in writing by the Cen:racting Officer. Ucen c:=cleticn or ter=ination of this contract, all' c:cies of any surn cr:prie:ary or ::=pany c:nfidan:f al data shall te re:urned to tne C:: mission.
Article 5.6 Disclaimer The fellcwing no: ice shall be added to any recor; prepared under the provisiens of this centract: "This reccr: was crecared as an account of work s:cnsorea by an agency of :ne Unitec i:ates Gcvarnrant.
.ieither the Unitac S:ates Governmen: nor any agancy : hereof, er any of their accicyees, makas any war-an:y, ex:ressac or inc'iad, or assume any legai ita:fli:y or rescensibility ice any :hird :ar:y's usa, or the results cf su:nusa, :f any inf:rea:fcn, accact:vs.
- rccuc
- cr ;rocess :iscicsaa in :nis reccc, :r re:resants :na: 's usa by such third ; arty acula not infringe ;riva:tiy :wned rig.,:s."
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Page 23 of 36 Article 5.7 Continuity of -Services In recognition of the fact that the' functions covered under this contract
'are in support of t:RC programs, and require unintarrupted performance; 'that
,upon expiration of this contract, the services hereunder may be provided by the Government or a successcr Contractor, as a result of a co petitive solici-tation, and any successor will require phasa-in train,i,ng; that the retention of personnel e eperienced 'in the work covered heret:nder by any succes sor is 'iqportan; t,o the Covein=ent;. he Contractor agrees-as :follows:
t
- 1. ' 73 provide the necessary resources to 'co=plete those work i tems commenced during the period of this. contrac: or any renewal thereof, which would not otherwise ha've been completed, within such a period.
2.
To provide phase-in, phase-our services for a per'iod not to exceed-sixty (60) days, commencing the day after expiration of the contract, to the extent required by the Government, and expeditiously negotiate an equitable adjustment to the estimated cos: of the contract for such services, to be provided by continuing the assignment of qualif'ied personnel then currently assi2ned to. the contrac Upon s'elec: ion of a successor Contrac$or, to join-ly prepare 3.
with said successor, a cutually agre'eable nlan for phase-in,
,hase-ou: cp e ra ti ons.
Said plan shall se: for:h in detail the p
training program for the successor with a propcsed'date,by which the successor will as.sume responsibility for work performanc=.
Prior to said date the contractor shall re:ain full responsibility for work perforced.
This plan shall be submitted to the Contracting Officer for his approval prior to eroiration of this contract, and' icplementa-ion in accordance therewith. ' However, it is unders tood and agreed that the foregoing is subject to the "Limitatien of Cosc" or
" Limitation of Funds" clause of this contract.
' Article 5.8 - Key Personnel
" Pursuant to General Provision No.2.3 entitled, " Key Personnel", the following individuals are considered to be esse'ntial to the work being performed hereunder:
Name Title Dr. L. Zudans Project Director Dr. S. Carfagno Project Manager Mr. C. Crane Assistant Project Manager
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Page 24 of 36 Article 5.9 - Covernment Furnished Material / Data The Covernment shall furnish to the contractor all vital and necessary data / material in order for the contractor to perform the work above.
Article 5.10 - Representations and Certifications The offeror representations and certifications submitted in response to RFP No. RS-NRR-80-138 as modified by the Contrac, tor's letter dated August 28, 1981.
Article 5.11 - Subcontracts The contractor is hereby authorized to enter into negotiations with its proposed subcontractors and upon consummation of negotations, forward to the Contracting Officer the necessary documentation as required by Cen7ral Provision No. 2.5 entitled Subcontracts.
1.
Article 5.'12 - Guidelines for Work Flow NRC will forward to FRC preliminary work assignments identified as Tentative i
Work Assignment A.B.C., etc.
All such work assignments must be signed by the Project Officer.
Specific NRC individuals will be identified in the letter as authorized point (s) of contact regarding that particular assignment. Franklin will review the tentative assignment, provide its comments, propose a schedule for completion of the work, and estimate the technical staff resources required in a letter to the Project Officer.
l After receipt at NRC, the Franklin propsed schedule will be discussed, and following agreement with FRC, final work assignments identified as Assignment
- 1, 2, 3, etc. will be issued by the Project Officer. The work performance period will be in accordance with the mutually agreed upon schedule in the final aasignment letter. The schedule may be modified by mutual agreement.
Prior to receipt of the final assignment letter, Franklin personnel should not begin any work unless authorized by the Project Officer. Any verbal I
authorization to begin work will be verified in writing within 10 working days.
j Fol'owing agreement and receipt of a final work assignment, Franklin may enter iato discussions or correspond with any of the individuals identified in the work assignment (s).
Franklin is not to conduct any discussions with licensees for'any purpose whatsoever without NRC representation either at physical meetings or through conference telephone conversations except as authorized either verbally or in writing by the Project Officer or his authorized representative.
1 I
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Page 25 of 36 ARTICLE 5.13 SNL'. JUS! :ESS C:0 S:KLL DISADU :TAGFD BUS";ES'S SUSCC DCCT!i?G TLC D:EGOT! ATE. '
A.
The offerce acknowledges that it is aware of the subcontirac:ing plan requiremen s in this provision, anc, if it is the apparent successful offeror, agrees to negotiate a '
plan which inclu:fes :
1.
Percentage goals (expressed in terms of percentage of total planned subcontrie.-
ing dollars) for the utilization as subcontractors of sra.sil business concerns and small business concerns owned and controlled by socially and econcmically disadvantaged individuals; (For the purposes of the subcontracting plan, the contractor shall include all purchases wnicn contribute to the performance of the contract, including a proportionate share of products, services, etc. wnose
~
costs are non ally allocated as indirect or overhead costs.)
/ 2.
The name of an individual within the employ of the offeror who will administer
., the subcontracting program of the offeron and a description of the duties of such individual; 3.
A description of the efforts the offerer will'take to assure that small busi-ness concerns and small business concerns owned and controlled by socially anc economically disadvantaged individuals will have an equitable opportunity to cocpete for subccntracts; C
4 Assurances that the offeror will include the clause entitled Utilication cf Small. Susiness Concerns and Small Susiness Concerns Cwned and Centrollec by Socially and Econcaically Disadvantaged Individuals in all subcontracts which further succontracting cpportunities and to require all subcontrac:ces (ey.cac:
small business ccncerns) who receive subcontracts in excess of 5500,000, er in tne case of a contract for the construction of any public facility, 51,000,00~.
to adept a plan similar to the plan agreed to by the offeror; 5.
Assurances tha: :he offaror will submit such periodic repor:s and cocpe'ra:e in any studies or surveys as may be required by the contracting agency or the Small Business Administration in order to determine the ex ent of compliance by the offeror with the subcontracting plan; and
(
6.
A recitation of the types of records the offeror will caintain to deacnstrate procedures which have been adopted to comply with the requirements and goals f.
set forth in the plan, including the establishment of source lists of scall business concer.ns and small business cencerns owned and centrolled by socially and economically disadvantaged individuals; and effor:s to identify and award subcontracts to such small business concerns.
l B.
-The offeror understands that:
1.
No contract will he awarded unless and until an acceptable plan is negotiated with the contracting officer and that an acceptable plan will be incorporated into the contract, as a caterial part thereof.
o An acceptable plan cust, in the deter =ination of the contracting officer, 2.
provide the maximum practicable opcor: unity for small business concerns and small business cencerns owned and controlled by socially ans ecencaicaily disadvantaged parsons to participate in the ' performance of tne contract.
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Page 26 of 36 C
3.
If a subcontracting plan acceptable.to the contracting officer is not negt-e a 3:
-(
within the time limits prescribed, the of ferer shall be ineligible for an a..ar:.
The contracting officer shall notify tne contractor in writing of his reas: s for determining a subcontracting plan to be unacceptable.
Such notice sha ' :e given early enougn in the negotiation process to allow 'the contractor to c:::fy the plan within the time limits prescribed.
4.
Prior compliance of the offero'r with other such subcontracting plans under :re-vious contracts will be considered by the contracting officer in determinin; tha responsibility of the offeror for award of the contract.
5.
It is the offeror's responsibility to develop a satisfactory subcentracting pla.-
with respect to both small business ccncerns and small business concerns o:. ed and controlled by so'cially and econcmically disadvantaged individuals and t.a.
each such aspect of the offeror's plan will be judged independently of the Otrer
~
'C.
Subcontracting plans are not required of small. business concerns.
D.
The fa.ilure of any centractor.or subcontractor to cceply in good faith with (1) the clause entitled Utili:stion of Small Business Concerns and Small Business C:ncerns Owned and Controlled by Socially and Economicarily Disadvantaged Individuals or (2) an approved plan required by this'Small Business and Small Disadvantaged Business.
Subcontracting Plan (Negotiated). provision, will be a material breach of of sucn contract or subcontract.
E.
Nothing contained in this provision supersedes the requirements of Defense Manpc..er Policy 4A or any successor policy.
F.
If the price centract is for a cc=erical product (defin'ed belcw)', the requ' ired subcentracting plan may relate to the ccmpany's production of the item generally (both for the Government contract and for regular cc=ercial sale) rather tnan solely to the item being procured under the government contract.
In such cases, l
the contractor snall be required to submit one cc=any-wide, annual plan to be reviewed for acproval by the first agency with wnica he enters into a prime con-tract (which requires a subcontracting plan) during the fiscal year.
The appre.ed i
I plan will remain in effect for the entire fiscal year.
Cc=ercial products are defined as products in regular production sold in substan-tial quantities to the general public and/or industry at established market or
~ catalog prices.
' G.
In negotiating subcontracting plans, the contracting officer shall take into account a price contractor's stated inability to subcontract due to an existing "make-or-buy' policy. A "make-or-buy" policy concerns the major subsystems, assembles, and ccm:0-
=-
nents which the contractor manufactures, develops, or assemblies in his cwn facili-ties, and those which it obtains elsewhere by contract.
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Page 27 of 36 SECTION 6.0 GENERAL PROVIS10riS ARTICLE 6.1 - GEf4ERAL PROVISIONS /ALTERATIO IS This contract is subject to the attached provisions of Appendix A, General Provisions, entitled " Cost Type Research and Development Contracts With Commercial Organizations," dated 11/80.
ARTICLE 6.2 - ALTERATIONS TO GENERAL PROVISIONS
~The following clauses are added:
6.2.1 Labor Surplus Area Subcontracting Program (1-1.805-3(b))
(a) The ' Contractor agre'es to establish and conduct a program which will encourage labor surplus area concerns to compete for subcontracts within their capabilities. In this connection, the Contractor shall--
(1) Designate a liaison officer who will (i) maintain liaison with duly authorized representatives of the Government on labor surplus area matters, (ii) supervise compliance with the Utilization of Concerns in Labor Surplus Areas clause, and (iii) administer the Contractor's " Labor Surplus Area Sub-contracting Program;"
(2) Provide adequate and timely consideration of the potentialities of labor surplus area concerns in all "make-or-buy" decisions; (3) Assure that labor surplus area concerns will have an equitable opportunity to compete for subcontracts, particularly by arranging solicitations, time for the preparation of bids, quantitics, specifications, and delivery schedules so as to facilitate the participation of labor surplus area concerns; (4) Maintain records showing the procedures which have been adopted to ccmply with the policies set forth in this clause and report subcontract awards (see 41 CFR 1-16.804-5 regarding use of Optional Form 61).
Records maintained pu suant to this clause will be kept available,for review by the Government until the expiration of 1 year after the award of this contract, or for such longer period as may be required by any other clause of this contract or by applicable law or regulations; and (5) Include the Utilization of Concerns in Labor Surplus Areas clause in subcontracts which offer substantial labor surplus area subcontracting opportunities.
(b)
(1) The term " labor surplus area" means a geographical area identified by the Department of Labor as an area of concentrated unemployment or under-employment or an area of labor surplus.
(2) The term " concern located in a labor surplus area" m2ans a labor surplus area concern.
(3) The tenn " labor surplus area concern" means a concern that, together with its first-tier subcontractors, will perform substantially in labor surplus areas.
(4) The term " perform substantially in labor surplus areas" means that the costs incurred on account of manufacturing, production, or appropriate s_ervices in labor surplus areas exceed 50 percent of the contract price.
(c) The Contractor further agrees to insert, in any subcontract hereunder
.which may exceed $500,000 and which contains the Utilization of Concerns in Labor Surplus Areas clause, provisions which shall confonn substantially to the language of this clause, including this paragraph (c), and to notify the Contracting WhreaMUviruimpsugLswlh mbcantractors.
Page 28 of 36 6.2.2 Utilization of Women-Owned Business Concerns (Over $10,000)
(a)
It is the policy of the United States Government that women-owned businesses shall have the maximum practicable opportunity to participate in the performance of contracts awarded by any Federal agency.
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(b) The Contractor agrees to use his best efforts to carry out this policy in the award of subcontracts to the fullest extent consistent with the efficient performance of this contract.
As used in the contract, a " women-owned business" concern means a butiness that is at least 51% owned by a woman or women who also control and operate it.
" Control" in this context means exercising the power to nake policy decisions.
" Operate" in this context means being actively involved in the day-to-day management.
" Women" mean all women business owners.
6.2.3 Women-0wned Business Concerns Subcontracting Program (0ver $500;000 or
$1,000;000 for Construction of Any Public Facility)
(a) The Contractor agrees to establish and conduct a program which will enable women-owned business concerns to be considered fairly as subcontractors and suppliers under this contract.
In this connection, the contractor shall:
(1) Designate a liaison officer who will administer the Contractor's
" Women-0wned Business Concerns Program."
(2) Provide adequate and timely consideration of the potentialities of known women-owned business concerns in all "make-or-buy" decisions.
(3) Develop a list of qualified bidders that are women-owned businesses and assure that known women-owned business concerns have an equitable opportunity to compete for subcontracts, particularly by making ir. formation on forthcoming opportunities available, by arranging solicitations, time for the preparation of bids, quantities, speci-fications, and delivery schedules so as to facilitste the participation of women-owned business concerns.
(4) Maintain records showing (i) procedures which have been adopted to compy with the policies set forth in this clause, including the establishment of a source list of women-owned business concerns; (ii) awards to women-owned businesses on the source list by minority and non-minority women-owned business concerns; and (iii) specific efforts to identify and award contracts to women-owned business concerns.
(5)
Inc'ude the " Utilization of Women-0wned Business Concerns" clause in subcontracts which offer substantial subcontracting opportunities.
(6) Cooperate in any studies and surveys of the Contractor's women-owned business concerns procedures and practices that the Contracting Officer may from time-to-time conduct.
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(7) Submit periodic reports of subcontracting to women-owned business concerns with respect to the records referred to in subparagraph (4) above, in such form and manner and at such time (not more often than quarterly) as the Contracting Officer may prescribe.
(b) The Contractor further agrees to insert, in any subcontract hereunder which may exceed $500,000 or $1,000,000 in the case of contracts for the construction of any public facility and which offers substantial subcontracting possibilities, provisions which shall conform substantially to the language of this clause, including this paragraph (b), and to notify the Contracting Officer of the names of such subcontractors.
(c) The contractor further agrees to require written certification by its subcontractors that they are bona fide women-owned and controlled business concerns in accordance with the definition of a women-owned business concern as set forth in the Utilization Clause 1(b) above at the time of submission of bids or proposals.
6.2.4 Price keduction for Defective Cost or Pricing Data (1-3.854-1(a))
If any price, including profit or fee, negotiated in conNetion with this contract or any cost reimbursable under this contract was increased by any signi-ficant suas because:
(a) The Contractor furnished cost or pricing data which was not accurate, complete and current as certified in the Contractor's Certificate of Current Cost or Pricing Data; (b) A subcontractor, pursuant to the clause of this contract entitled l
" Subcontractor Cost or Pricing Data" or " Subcontractor Cost or Pricing Data--Price Adjustments" or any subcontract clause therein required, furnished cost or pricina data which was not accurate, complete and current as certified in the subcontractor's Certificate of Current Cost or Pricing Data; (c) A subcontractor or prospective subcontractor furnished cost or oricing data which was required to be accurate, complete and current and to be submitted to supoort a subcontract cost estimate furnished by the Contractor but which was not accurate, complete and current as of the date certified in the Contractor's
. Certificate of Current Cost or Pricing Data; or (d) The Contractor or a subcontractor or prospective subcontractor furnished any data, not within (a), (b) or (c) above, which was not accurate as submitted:
the price or cost shall be ' reduced accordinqly and the contract shall be modified in writing as may be necessary to reflect such reduction. However, any reduction in the contract price due to defective subcontract data of a prosoective subcon-tractor when the subcontract was not subsequently awarded to such subcontractor, will Se limited to the amount (olus apolicable overhead and profit markuo) by which the actual subcontract,- or actual cost to the Contractor if there was no subcontract, was less than the prospective subcontract cost estimate submitted by the Contractor:
Provided The actual subcontract price was not affected by defective cost or pricing data.
(Note: Since the contract is subject to reduction under this clause by reason of defective cost or pricing data submitted in connection with certain subcontracts, it is expected that the Contractor may wish to include a clause in-each such subcontract requiring the subcontractor to appropriately ind enify the Contractor.
It is also expected that any subcontractor subject to suu indemnification will generally require substantially similar indemnificatM for l
defective cost or pricing data required to be submitted by his low tier l
subcontractors.)
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Page 30 of 36 6.2,5 Price Reduction for Defective Cost or Pricing Data - Price Adjustments (1-3.814-1(b))
(a) This clause shall become coerative only with reipect to any modification of this contract which involves aggregate increases and/or decreases in costs plus applicable profits in excess of $100,000 unless the modification is priced on the basis of adequate price competition, established catalog or market prices of corraercial items sold in substantial quantities to the general public, or orices set by law or regulation. The right to price reduction under this clause is limited to defects in data relating to such modification.
(b)
If any price, including profit, or fee, neootiated in connection with any price adjustment under this contract was increased by any significant sums because:
(i) The Contractor furnished cost or pricina data which was not accurate, complete and current as certified in the Contractor's Certificate of Current Cost or Pricing Data; (2), A subcontractor, pursuant to the clause of this contract entitled
" Subcontractor Cost or Pricing Data" or " Subcontractor Cost or Pricino Data--Price Adjustments" or any subcontract clause therein required, furnished cost or pricina data which was not accurate, complete and current as certified in the subcontractor's Certificate of Current Cost or Pricina Data; (3) A subcontractor or prospective subcontractor furnished cost or pricing data which was recuired to be accurate, complete and current and to be submitted to support a subcontract cost estimate furnished by the Contractor but which was not accurate, complete and current as of the date certified in the Con-tractor's Certificate of Current Cost or Pricing Data; or (4) The Contractor or a subcontractor or prospective subcontractor furnished any data, not within (1), (2) or (3) above, which was not accurate, as submitted; the price shall be reduced accordingly and the contract shall be modified in writing as may be necessary to reflect such reduction. However, any reduction in the contract price due to defective subcontract data of a prospective subcon-tractor, when the subcontract was not subsequently awarded to such subcontractor, will be limited to the amount (plus apolicable overhead and profit markup) by which the actual subcontract, or actual cost to the Contractor if there was no subcontract, was less than the prospective subcontract cost estimate submitted by the Contractor.
Provided the actual subcontract price was not.affected by defective cost or pricing data.
(Note: Since the contract is subject to reduction under this clause by reason of defective cost or pricina data submitted in connection with certain subcontracts, it is expected that the Contractor may wish to include a clause in each such subcontract requiring the subcontractor to appropriately indemnify the Contractor.
It is also expected that any subcontractor subject to such indemnifi-cation will generally require substantially similar indemnification for defective cost or pricing data required to be submitted by his lower tier subcontractors.)
(c) Failure to agree on a reduction shall be a discute concernino a question of fact witnin the meaning of the " Disputes" clause of this contract.
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Page 31 of 36 6.2.C Subcontractor Cost and Pricing Data (1-3.814-3(a))
(a) TheContractorshallrequiresubcontractorshereundertosubmiti,~'
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actually or by specific identification in writing, cost or pricinq data under the following circumstances:
(1) Prior to the award of any subcontract the amount of which is expected to exceed $100,000 when entered into; (2) Prior to the pricing of any subcontract modification which involves aggregate increases and/or decreases in costs plus applicable orofits expected to exceed $100,000; except where the price is based on adequate price competition, established catalog or market prices of comercial it2ms sold in substantial quantities to the general public, or prices set by law or regulation.
(b) The Contractor shall require subcontractors to certify, in substantially the same forin as that used in the certificate by the Prime Contractor to the Government, that to the best of their knowledge and belief, the cost and pricing data submitted under (a) above is accurate, complete, and current as of the date of agreement on the negotiated price of the subcontract or subcontract change or modification.
(c) The Contractor shall insert the substance of this clause includino this paragraph (c) in each subcontract hereunder which exceeds $100,000 when entered into except where the price thereof is based on adequate' price ccmpetition, established catalog or market prices of commercial items sold in substantial quantities to the general public, or prices set by law or regulation.
In each such expected subcontract hereunder in excess of $100,000, the Contractor shall insert the substance of the following clause:
SUBCONTRACTOR COST OR PRICING DATA-PRICE ADJUSTMENTS (a) Paragraphs (b) and (c) of this clause shall become operative only with l
respect to any modification made pursuant to one or more provisions of this contract which involves aggregate increases and/or decreases in costs plus applicable profits expected to exceed $100,000. The requirements of this clause shall be limited to such contract modifications.
(b) The Contractor shall require subcontractors hereund'er to submit, actually or by specific identification in writing, cost or pricino data under the following circumstances:
(1) Prior to award of any subcontract, the amount of which is expected i
to exceed $100,000 when entered into; (2) Prior to the pricing of any subcontract modification which involves aggregate increases and/or decreases in costs plus applicable profits expected to exceed $100,000; except where the price is based on adequate price competition, established catalog or market prices of commercial items sold in substantial quantities to the general public, or prices set by law or regulation.
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6.2.6 Subcontract Cost and Pricing Data (1-3.814-3(a)) Cont'd (2) The Contractor shall require subcontractors to certify, in substantially the same form as that used in the certificate by the Prime Contractor to the Government, that to the best of their knowledge and belief the cost and pricing data submitted under (b) above is accurate, complete, and current as of the date of agreement on the negotiated price of the subcontract or subcontract change or modification.
(d) The Contractor shall insert the substance of this clause including this paragraph (d) in each subcontract hereunder which exceeds $100,000 when entered into.
6.2.7 Cost A'ccounting Standards--Nondefense Contract (1-3.1204-2(a))
(a) Unless the Administrator of General Services has prescribed rtiles or regulations exempting the Contractor or this contract frcm standards, rules,. and regulations promulgated by the Cost Accounting Standards Board, the Contractor, in connection with'this contract, shall:
(1) Follow consistently the cost accounting practices established or disclosed as required by regulations of the Cost Accounting Standards Board and administert:d under the Administration of Cost Accounting Standards clause.
If any change in disclosed practices is made for purposes of any contract or subcontract subject to those disclosure requirements, the change must be applied in a consistent manner to this contract.
(2) Comply with all cost accounting standards which the Contractor is 4
required to ccmply with by revan of concurrent performance of any contract or subcontract subject tn the cost Accounting Standards clause (4 CFR 331) and administered under the Administration of Cost Accounting Standards clause. The Contractor also shall comply with any cost accounting standard which hereafter becomes applicable to such a contract or subcontract.
Such compliance shall be required prospectively from the date of applicability to such contract or subcontract. ; Compliance shall continue until the Contractor completes per-l fomance of work under this contract.
(3) Agree to an equitable adjustment (as provided in the Changes clause of this contract, if any) if the contract cost is affected by a change which, pursuant to (2) above, the Contractor is required to make to his estab-lished cost accounting practices whether such practices are covered by a Dis-l closure Statement or not.
(4) Negotiate with the Contracting Officer to determine the terms and conditions under which a change to either a disclosed cost accounting practice or an established cost accounting practice, other than a change under (a)(3) above or (a)(6) below, may be made. A change to a practice may be proposed by either the Government or the Contractor, Provided, however, That no agreement l
may be made under this provision that will increase costs paid by the United States.
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' 6.2.7 Cost Accounting Standards--Nondefense Contract (1-3.1204-2(a)) Cont'd.
(5) Agree to an adjustment of the contract price or cost allowance, as appropriate, if it or a subcontractor fails to comply with the applicable Cost Accounting Standards or to follow any practice disclosed or established pursuant to subparagraph (a)(1) or (a)(2) above 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 rate detemined by the Secretary of the Treasury pur-suant to Pub. L. 92-41 (50 U.S.C. App.1215(b)(2)), or 7 percent per annum, whichever is less, frcm time the payment by the United States was mde to the time the adjustment is effected.
(6) Negotiate an equitab e adjustment (as provided in the Changes clause of this contract, if any) when the parties agree to a change to either a disclosed cost accounting practice or an established cost accounting practice.
(b) The Contractor shall pemit any authorized representatives of the head of the agency, of the Cost Accounting Standards Board, or of the Comptroller General of the United States to examine and m ke copies of any documents, papers, or records relating to compliance with the requirements of this clause antil the expiration of 3 years after final paymant under this centract oi such lesser time specified in the Federal Procurement Regulations (FPR) part 1-20.
(c) Unless a subcontract or Subcontractor is exempt under rules or recu-lations prescribed by the administrator of General Services, the Contractor:
(1) shall include the substance of this clause including this paragraph (c) in all negotiated subcontracts under this contract with subcontractors that are currently perfoming a national defense contract or subcontract that contains the clause entitled to Cost Accounting Standards and that are currently required to accept the clause in applicable national defense awards, and (2) shall include the substance of the Consistency of Cost Accounting Practices--Non-defense Contract clause set forth in i 1-3.1204-2(b) of the FPR in negotiated subcontracts under this contract with all other subcontractors. The Contractor my elect to use the substance of the solicitation notice set forth in i 1-l 3.1203-2(b) of the FPR in his detemination of applicability cost accounting standards to subcontracts.
(d) The tems defined in 5 331.20 of Part 331 of Title 4 Code of Federal Regulations, shall have the same meaning herein. As there defined, " negotiated
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subcantract" means "any subcontract except a firm fixed-price subcontract mde l
by a contractor or subcontractor after receiving offers from at least two fims not associated with each other or such contractor or subcontractor, providing (1) the solicitation to all competing fims is identical, (2) price is the only consideration in selecting the subcontractor from among the competing fims solicitied, and (3) the lowest offer received in compliance with the solicitation from among those solicited is accepted."
(e) The administration of this clause by the Government shall be accom-plished in conjunction with the administration of the Contractor's national defense :ontracts and subcontracts subject to rules and regulations of the Cost Accounting Standards Board, pursuant to the Administration of Cost Accounting Standards clause. For the purposes of the Administration of Cost Accounting Standards clause contained in this contract, references to the Cost Accounting Standards clause shall be deemed to includs this Cost Accounting Standards--
Nondefense Contract clause and reference to the Disclosure and Consistency of
- 3 Cost Accounting Practices clause shall be deemed to include the Consistency of Cost Accounting Practices--Nondefense Contract clause.
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6.2.8 Administration of Cost Accounting Standards (1-3.1204-1(b))
For the purpose of administrating Cost Accounting Standards requirements under this centract, the Contractor shall:
..(a) Submit to the cognizant Contracting Officer a description of the accounting change and the general dollar magnitude of the change to reflect the sum of all increases and the sum of all decreases for all contracts containing.
the Cost Accounting Standards clause or the Disclosure and Consistency of Cost Accounting Practices clause:
(1) For any change in cost accounting practices required to comply with a new cost accounting standard in accordance with paragraph (a)(3) and (t)(4)(A) of the Cost Accounting Standards clause within 60 days (or such other date as may be mutually agreed to) after award of a contract requiring such change; (2) For any change to cost accounting practices proposed in accord-ance with paragraphs (a)(4)(B), (a)(4)(C) of the Cost Accounting Standards clause or with paragraph (a)(3) or (a)(5) of the Disclosure and Consistency of Cost Accounting Practices clause not less than 60 days (or such other date as may be mutually agreed to) prior to the effective date of the Proposed change; or (3) For any failure to comply with an applicable Cost Accounting Standard or to follow a disclosed practice as contemplated by paragraph (a)(5) of the cost Accounting Standards clause or with paragraph (a)(4) of the Disclosure and Consistency of Cost Accounting Practices clause within 60 days (or such other date as may be mutually agreed to) after the date of agree: rant of such nonccmpliance by the Contractor.
(b) Submit a cost impact proposal in the form and canner specified by the cognizant Contracting Officer within sixty (60) days (or such other date as may be mutually agreed to) after the date of determination of the adequacy and compliance of a change submitted pursuant to (a) (1), (2), or (3), above.
(c) Agrre to appropriate centract and subcontract amendments to reflect adjustments established in accordance with paragraphs (a)(4) and (a)(5) of the Cost Accounting Standards clause or with paragraphs (a)(3), (a)(4), or (a)(5) of the Disclosure and Consistency of Cost Accounting Practices clause.
l (d) When the subcontract is subject to either the Cost Accounting Standards clause or the Disclosure and Consistency of Cost Accounting Practice clause so state-in the body of the subcontract and/or in the letter of award. Self-deleting clauses shall not be used.
(e) Include the substance of this clause in all negotiated subcontracts containing either the Cost Accounting Standards clause or the Disclosure and Consistency of Cost Accounting Practices clause.
In addition, include a pro-vision in these subcontracts which will require such subcontractors, within 30 days after receipt of award (or such other date as may be mutually agreed to) to submit the following infomation to the Contract Administration Office Cognizant of. the subcontractor's facility.
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6.2.8 Administration of Cost Accounting Standards (1-3.1204-1(b)) Cont'd.
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(1) Subcontiactor's name and subcontract number.
(2) Dollar amount and date of award.
(3) Name of Contractor naking the award.
(4) A statement as to whether the subcontractor has made or proposes to make any changes to accounting practices that affect prime contracts or subcontracts containing the Cost Accounting Standards clause or Disclosure and Consistency of Cost Accounting Practices clause unless such changes have already been reported.
If award of the subcontract results in making a cost accounting 1
standard (s) effective for the first time, this shall also be reported.
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(f) For negotiated subcontracts containing the Cost Accounting Standards clause, require the subcontractor to comply with all Standards in effect on the date of final agreement on price as shown on the subcontractor's signed Certificate of Current Cost or Pricing Data or date of award, whichever is earlier.
(g)
In the event an adjustment is required to be made to any subcontract hereunder, notify the Contracting Officer in writing of such adjustment and agree to an adjustment in the price or estimated cost and fee of this contract, as appropriate, based upon the adjustment established under the suocontract.
Such notice shall be given within 30 days after receipt of the proposed sub-contract adjustment, and shall include a proposal for adjustgent to such higher tier subcontract or prima contract as appropriate.
(h) When either the Cost Accounting Standards clause or the Disclosure and Consistency of Cost Accounting Practices clause and this clause are included in i
subcontracts, the term " Contracting Officer" shall be suitably altered to i
identify the purchaser.
6.2.9 Cost Accounting Standard Withdrawal bnst Accounting Standard 414--Cost of money as an elenent of the cost of facilities capital--shall not be reimbursed as an allowable cost under this conti act.
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'o1 Section 7.0 Contract Documents Article 7.1 - Documents Incorporated Physically The following listed documents are physically incorporated in this contract:
Cover Sheet Award / Contract-SF26 Listing of Contract Articles Contract Articles The Schedule Attachment A Award Fee Determination Plan Attachment B Letter of Credit Instructions for Recipient Organizations
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Appendix A General Provisions Appendix B Subcontracting Plan for Utilization of Small, Women Owned, Labor Surplus, Socially and Economically Disadvantaged Businesses
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