ML20044B635

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Ltr Contract,Authorizing & Directing Sumitomo Heavy Industries Effective 921117 to Initiate Task 1 Work,Per Request for Proposal RES-92-079,Amend 1 & Technical Proposal 92-4706 to Rosa Facility Mod
ML20044B635
Person / Time
Issue date: 11/13/1992
From: Mace M
NRC OFFICE OF ADMINISTRATION (ADM)
To: Ochi H
JAPAN
References
CON-NRC-04-93-057, CON-NRC-4-93-57 NUDOCS 9303010009
Download: ML20044B635 (4)


Text

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UNITED STATES

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NUCLEAR REGULATORY COMMISSION 3/

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November 13, 1992 SENT VIA FACSIMILE l

Mr. Hiroshi Ochi Manager Plant and Engineering Division International Operations Sumitomo Heavy Industries, Ltd.

Mitoshiro-cho 1 Kanda, Chiyoda-Ku l

Tokyo, Japan l

Dear Mr. Ochi:

Subject:

Letter Contract No. NRC-04-93-057 Entitled " ROSA Facility Modification" Pending negotiation of formal Contract No. NRC-04-93-057 and contingent i

upon your acceptance of the terms and conditions of thi.s Letter Contract, Sumitomo Heavy Industries (SHI) is authorized and directed effective November 17, 1992 to initiate Task I work in accordance with' Request For r

t Proposal No. RES-92-079, Amendment No. I thereto dated September 24, 1992, and SHI's tecnnical proposal No. 92-4706 dated November 4, 1992.all of which are made apart of this Letter Contract.

52.216-23 EXECUTION AND COMMENCEMENT OF WORK (APR 1984)

I The Contractor shall indicate acceptance of this letter contract by signing three copies of the contract and returning them to the Contracting Officer not late 7 than November 16, 1992. Upon acceptance by both parties, the Contractor shall proceed with performance of the work, including purchase of necessary materials.

(End of clause)

(R 7-802.2 1964 MAR) 52.216-24 LIMITATION OF GOVERNMENT LIABILITY ( APR 1984)

(a) In performing this contract, the Contractor is not authorized to make expenditures or incur obligations exceeding $750,000 U.S.

(b) The maximum amount for which the Government shall be liable if this contract is terminated-is $750,000 U.S.

(End of clause)

(R 7-802.3 1967 OCT) s iD 9303010009 921113 i

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Hiroshi Ochi

-2 52.216-25 CONTRACT DEFINITIZATION (APR 1984)

(a) A' firm fixed price type. definitive contract is. contemplated._ The Contractor agrees-to begin promptly negotiating with the Contracting

.l Officer the terms of a definitive contract that will. include'(1) al.1

,j clauses required by the Federal Acquisition Regulation (FAR) on the.date.

t of execution of the letter contract, (2) all~ clauses required by. law.on

-i the-date of. execution of the definitive contract, and (3)'any other mutually agreeable clauses, terms, and conditions. The Contractor agrees j

to submit a firm fixed price proposal and cost or pricing data supporting its proposal.

j (b) The schedule for definitizing this contract is:

J

- t (1) Date for submission of Best and Final Offer:

December 11, 1992.

(2) Target date for. contract definitization:

December 23, 1992, (c) If agreement on a definitive contract to supersede this letter contract is not reached by the target date in paragraph (b).above, or within any extension of it granted by the Contracting Officer,' the Contracting Officer may, with the approval of the head of the contracting--

activity, determine a reasonable price or fee in accordance with'Subpart

-i 15.8 and Part 31 of the FAR, subject to Contractor appeal as provided in

.the Disputes clause. In any event, the Contractor shall proceed with i

completion of the contract, subject only to the Limitation of Governme'nt j

Liability clause.

(1) After the Contracting Officer's determination'of pri.ce or fee,.the-contract shall be governed by--

1 (i) All clauses required by the FAR on the date of execution of this 1

letter contract for either fixed price or. cost-reimbursement contracts, as determined by the Contracting Officer under this. paragraph (c);

~l (ii) All clauses required by law as of the date~of the Contracting i

Officer's determination; and (iii) Any other clauses, terms, and conditions mutually agreed upon.

4 (2) To the extent consistent with subparagraph (c)(1) above, all clauses,.

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terms, and conditions included in this letter contract shall continue in effect, except those that by their nature' apply only to a letter contract.

I (End of clause)

(R 7-802.5(a) 1969 DEC) i

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52.216-26 PAYMENTS 0F ALLOWABLE COSTS BEFORE DEFINITIZATION (APR 1984)

_(a) Reimbursement rate.

Pending'the placing of the definitive contract-referred to in this letter contract, the Government shall promptly reimburse the Contractor for all allowable costs under.this contract at:

the following rates:

(1) One hundred percent of approved costs representing progress payments to subcontractors under fixed price subcontracts; provided, thatf the Government's payments to the Contractor shall not exceed 80 percent of the allowable costs of those subcontractors.

(2) One hundred percent of approved costs representing cost-reimbursement subcontracts; provided, that the Government's payments to the Contractor shall not exceed 85 percent of the allowable costs of those subcontractors.

(3) Eighty-five percent of all other approved costs.

(b) Limitation of reimbursement.

To determine the amounts payable to the Contractor under this letter contract, the Contracting Officer shall determine allowable costs in'accordance witn the applicable cost principles in Part 31 of the Federal. Acquisition Regulation (FAR). The total reimbursement made under this paragraph shall not exceed 85. percent 1

of the maximum amount of the Government's liability, as stated in1this contract.

(c) Invoicing.

Payments'shall be made promptly to the Contractor when requested as work progresses, but (except for:small' business concerns) not more often than every 2 weeks, in amounts ' approved by the Contracting Officer; The Contractor may submit to an authorized representative.of the Contracting Officer, in such form and reasonable detail as the representative may require, an invoice or voucher supported by a statement' of the claimed allowable cost incurred by the Contractor in the performance of this contract.

(d) Allowable costs.

For the purpose of determining allowable costs, the term " costs" includes--

(1) Those recorded costs that result, at the time of the request for-reimbursement, from payment by cash, check, or other form of actual payment for items or services purchased directly for the contract; (2) When the Contractor is not delinquent in payment of costs of contract performance in the ordinary course of business, costs incurred, but not necessarily paid, for--

(i) Materials issued from the Contractor's stores inventory and placed in the production process for use on the contract; (ii) Direct labor; (iii) Direct travel; (iv) Other direct in-house costs; and

mo Hiroshi Ochi 4-(v) properly allocable and allowable indirect costs as shown on the records maintained by the Contractor for purposes of obtaining reimbursement under Government contracts; and (3) The amount of progress payments that have been paid to the Contractor's subcontractors under similar cost standards.

(e) Small business concerns.

A small business concern may receive more frequent payments than every 2 weeks and may invoice and be paid for recorded costs for items or services purchased directly for the contract, even though it has not yet paid for such items or services.

(f) Audit. At any time before final payment, the Contracting Officer may have the Contractor's invoices or vouchers and statements of costs audited. Any payment may be (1) reduced by any amounts found by the Contracting Officer not to constitute allowable costs or (2) adjusted for overpayments or underpayments made on preceding invoices or vouchers.

(End of clause)

(R 7-802.4(a) 1972 MAY)

Please indicate your acceptance of this Letter Contract by signing and returning three (3) copies of the document as soon as possible.

The fourth copy is for your records.

Sincerely, f

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Mar.H.M/ce,ContractingOfficer Divisior of Contracts and Property Management Office of Administration

Enclosure:

As Stated ACCEPTED:

Sumitomo Heavy Industries, Ltd.

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Title:

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MW Date: US AUJVYRG52 MO

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