ML20055A888
| ML20055A888 | |
| Person / Time | |
|---|---|
| Issue date: | 06/16/1982 |
| From: | Mattia M, Pevenstein J NRC OFFICE OF ADMINISTRATION (ADM), NUSAC, INC. |
| To: | |
| Shared Package | |
| ML20055A885 | List: |
| References | |
| CON-FIN-B-7348-2, CON-NRC-02-82-034, CON-NRC-2-82-34 NUDOCS 8207200093 | |
| Download: ML20055A888 (30) | |
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NRC-02-82-034 PDR
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i TABLE OF CONTENTS i
This contract consist of:
1.
Standard Form 26 2.
Table of Contents 3.
Schedule Article I Statement of Work Article II Period of Performance Article III Consideration and Payment Article IV Overhead / General and Administrative Rates Article V Allowable Cost Article VI Travel Reimbursement Article VII Private Use and Protection of Unclassified Government Information Article VIII - Key Personnel Article IX
.- Technical Direction Article X Project Officer General Provisions / Alterations Article XI General Provisions - Cost Type Research and Development Contracts with Commercial Organizations Appendix A - Billing Instructions for Cost-Type Contracts t
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SCHEDULE ARTICLE I - STATEMENT OF WORK A.
OBJECTIVE' The purpose of this effort is to merge the Material Control LEMUF and MUF simulation (MCLAMS.) Material Accounting Simulation Program with the Automated j
Material Accounting Statistics System (AMASS).
AMASS is a multi-period material,
accounting model whi'ch propagates for a set of inventory periods from given measurement system error estimates, the measurement error contribution to the variance of ID.
It also has the ability to calculate the measurement error contribution to the covariance of ID.between different inventory components within an inventory period or across inventories.
MCLAMS, dn the other hand, does not treat covariance and is limited to the analysis of a single material accounting period.
However, in addition to propagating the measurement error contribution to ID variance, it has the added feature of obtaining, via a Monte Car _lo simulation, a probability distribution for the estimated measurement.
system ID variance, taking into acccunt the uncertainty associated with the estimates for measurement error variances that result from the licensee's analysis of measurement control data.
Furthermore, HCLAMS incorporates pro' cess errors such as holdup, accidental release, etc., in terms of appropriate probability distributions, based on e,ngineering judgment, that are specified by the analyst or by licensee process personnel.
By combining the contribution
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to ID variance.due to process errors with the contribution due to measurement errors, MCLAMS is able to generate probability distributions for the variance of ID.
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This worr. will require developing additional sof tware for AMASS in order to compute the variance corresponding to the uncertainty of the AMASS estimate of the measurement errot 3D variance and to enable the incorporation of probability distributions to model identifiable process errors.
It will be necessary to accordingly modify inputs as well as output reports to reflect this aug nented capabilith.
Sof tware validation will also have to be accomplished as well as developing modified users / analyst and' systems manuals and input data coding sheets.
B. BACKGR00fiD The MClams methodology for the simulation and snalysis of 3D performance was originally developed for the T4RC under a contract with the Lawrence Berkeley
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Laburatory and, subsequently, applied to the' analysis of the ID performance of
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several licensed nuclear fuel cycle facilities.
The MCLAMS opproach had the serious disadvantage in that it did not model all measurement system covariances, and did not permit analysis of multi-period ID data.
To correct these rieficiencies, the AMASS methodology was developed for the NP.C by NUSAC, Inc., with a subcontract to BDM Inc. (Contract No. TiRC-02-80-024).
The At%55 methodology propagates LEID accounting for all measurement error covariance and is able to calculate meas'urement induced covariance between different inventories which permits the analysis of multi-period ID data.
Using a prospective approach, AMASS also estimates the contribution to the variance '
of ID as a result of process errors.
The MCLAMS and AMASS methodologies represent two different approaches to the analysis of 3D data.
The AMASS approach is a computational model employ!
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y a very general algorithm for propagating the LE1D based on a very comprehensive measurement error structure and uses historical ID data to obtain estimates of the non-measurement contributors to the varia~nce of 1D.
The MCLAMS approach, on the other hand, is a simulation model which simulates the estimation of i
4 measurement system error components from measurement control data and then, in conjunction with non-measurement contributors which are explicitly postulated loss mechanisms or measurement system biases, simulates ID.
MCLAMS, thus, has the advantage of generating distributions for ID and LEID as well as permitting the analysis of the effects of particular loss mechanisms and biases.
Merging the MCLAMS model into the AMASS methodology will enhance the capability of AMASS and will permit the Division of Safeguards to study the ID performance of licensed facilities by enabling the characterization of the distributions of ID and LEID, investigating the effect of changes to the measurement control program and measurement frequencies, and by examining the effect of hypothesized loss mechanism and measurement system biases.
C.
WORK REQUIRED The Contractor shall be required to modify the AMASS computer program to e
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obtain the MCLAMS capability.
This includes estimation of the LEID uncertainty, and incorporation of a capability to specify known contributors to ID in terms t
of distributions.
The contractor shall also. be required to determine conditions of validity for a prospective approach using historical ID data (e.g. stationarity).
This shall require incorporation of additional code into AMASS, restructuring e
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the inputs to the AMASS program as well as the output reports, restructuring the data files to include additional data, development of new users / analyst and systems manuals to document the modified methodology and computer code, and' development of new input data coding sheets to facilitate user application of the methodology.
It is desired that the analytical methodology be preferred to simulation techniques.
The contractor shall supply the services, material, and personnel to accomplish the work specified in this statement of work.
Task 1:
The contractor shall review documentation pertaining to the A!! ASS and MCLAMS methodologies.
The review shall include :
a)
MCLAMS users / analyst manual
'b) 'MCLAMS systems manual c) fiUREG 0290, "A Study of tiuclear Material Accounting" d) tiUREG CR-0083, " Material Unaccounted for Performance Analysis of a U. 5. riuclear Regulatory Commission Licensee" e)- SAI report !SA1-81-206-WA, " Development of Improved Techniques for Analyzing Material Control and Accounting Da""
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f). Mathematical Development of AMASS Methodology g) AMASS Users / Analyst Manual h) AMASS Systems Manual s
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Memo from M. Messinger to Ted Sherr, dated July 29, 1981,
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" Integration of AMASS and MCLAMS" j) Any additional relevant documents identified by the tiRC Project Officer or the Contractor.
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- i Task 2:
Based on the Review of Task 1, the contractor shall detail all the modifications necessary to incorporate into the AMASS
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i methodology a method for estimating the uncertainty in LEID, a l
i method,tc input known contributors of ID, and conditions under i
which a prospective historical approach may be used. A report i
shall be developed documenting all changes to be made. A technical progress meeting shall follow the completion of this task to review the proposed modifications to ascertain that the objectives of this effort a,re being made.
Specific technical guidance to the contractor shall be furnished by the Project Officer before work on the remaining tasks commence.
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l Task 3:
Based on the results of Task 2. the contractor shall develop
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l flow charts and/or documentation considered equivalent by the project officer to completely detail all computer implementation of all changes and permit technical review to verify that all changes are correctly made. The documentation developed under this task shall be reviewed and approved by the project officer prior to commencement of Task 5.
Task 4:
The contractor shall develop input data coding sheets and output reports to facilitate inputti,ng the licensees' material control and accounting data and interpreting program resu'lts. The I
coding sheets and output reports shall be reviewed and approved by the project officer prior to commencement of Task 5.
l Task 5:
The contractor shall modify the computer code based on the results of Tasks 2, 3, and 4. The modified AMASS computer code shall employ ANSI Standard X3.9-1978 FORTRAN.
The computer code shall be
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1 capable of running at the NIH computer facility for at least 10 periods of material accounting data for all nuclear fuel cycle facilities licensed at the date of contract award.
Steps should be taken by the contractor to insure efficient use of core reflecting the data structure of the actual facility analyzed. _
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Task 6:
The contractor shall establish an operational. copy of that code on the - _.
tilH IBM 370 computer system, and provida an operational version of that i
code, for running classified data, on the Oak Ridge IBM 360 computer system compatible with Dak Ridge security requirements. Access to the Oak Ridge computer will be accomplished by tiRC Q-cleare,d personnel.
This shall, for each computer facility, include validation of all aspects of the code using a multi-period example developed by the contractor.
and approved by the fiRC Project Officer prior to commencement of Task 6.
. This example must exercise all aspects of the methodology and be an extension of three-period example used in the AMASS validation.
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Task 7:
The contractor shall provide a short training course for approximately 15 people to familiarize tiRC personnel with the methodology and a briefing to NRC management on the capability of the AMASS computer methodology.
This training session should not exceed two days in length, and shall be held at the f4RC offices in Silver Spring, MD.
The management briefing shall be approximately two hours in length, and shall hiso be held at the tiRC offices in Silver Spring.
Details of the course and briefing, as well as all course and briefing materials, e
shall be developed by the contractor and submitted to the tiP.C Project Officer for comments two iceks prior to presentation of the course.
The comments and subsequent approval will be provided to the Contractor within one week of presentation of the course.
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D.
REPORTING REQUIREMENTS 1.
Monthly Progress Reports Each month the contractor shall submit a brief progress report in letter format containing the following information:
(1) a comprehensive discussion of.the work performed during the previous month as each task progresses.
The discussion shall include comments about progress, problems encountered, and other pertinent technical, management, or administrative information.
(2) personnel time expenditures during the prev,ious month.
(3) costs:
(i) current period, (ii) cumulative to date, and (iii) cost projection by month to completion of the work effort.
(The first monthly report shall provide the initial cost projection and subsequent reports shall either provide revised projections or indicate "no change in the cost projection.") The contractor shall identify and explain the reason for any significant variances between:
Actual costs' for the progress reported and the originally budgeted costs for the same work.
actual and planned schedule for the progress reported, actual and planned technical performance.
The report shhll be due by the 15th of each month with distribution a
as follows:
Project Officer (1 cy)
Office of the Director, NMSS (ATTN: Program Support) (1 cy)
-(ATTN: R.J. Smith) (1 cy)
Chief, fuel Facil,ity Safeguards Licensing Branch (1 cy)
Contracting Officer, ATTN:
Ms. Mary Jo Mattia (1 cy) e
2.
Task 2 Reports The contractor shall submit a report at the completion of Task 2_.
detailing all modifications necessary to the AMASS methodology to obtain all the MCLAMS capabilities.
The NRC Project Officer shall provide comments no later than 21 days after receipt of the draft report. The contractor shall incorporate NRC comments and provide the final Task 2 report within 15 days following reciept of NRC's comments.
The Task 2 report shall then be submitted in final form.
3.
Manuals At the completion of Tash 2 the contractor shall subnit a draft users / analyst manual and systems manual.
Doc,umentation shall be in accordance with ANSI standard N413. " Guidance for Documentation
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of Digital Computer Programs. The NRC Project Officer shall provide written comments to the contractor for inclusion in the final manuals within 30 days of receipt of the draft.
Based on these comments, the contractor shall revise the. drafts and submit the final manuals to the NRC no later than 15 days after receipt of the Project Officer's comments. The final manuals shall be submitted in looseleaf binders with printed covers to pennit updating as later modifications to the methodology are made.
4.
At the completion of Task 6 the contractor shall submit the following computer documentation:
a.
Coding sheets b.
Source code listings.for.the NIH and Oak Ridge computer facilities c.
A verified card listing of all source codes
d.
Computer tapes of source codes for the NIH and Oak Ridge computer facilities.
(These tapes may remain in the-respective computer facilities tape libraries).
e.
Compiled object codes resident of disk for both computer facilities.
f.
Documentation of the sample test cases and results used in the validation of the computer software.
g.
Sultable card decks to permit access to and modification of the code.
5.
Within 30 days of completion of the contract the contractor shall conduct a training session and management briefing stipulated in Task 7.
Distribution of Reports Distrib0 tion of all draft and final reports -shall be made ai follows:
a) Draft reports Project Officer:
5 copies b)
Final Reports Project Officer:
10 copies Office of the Director 0AMSS (Att: ProgramSupportBranch): 1 copy.
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Ms. Mary J. Mattia, Contracting Officer:
1 copy o
Mr. Bud Evans, Branch Chief, Fuel Facility Safeguards Licensin'e Branch:
1 copy Also, for all final reports, an unbound camera ready copy for further NRC-g reproduction shall be provided to the NRC Project Officer.
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Schedule of Reports and Deliverables ~--'
The following sets forth projected schedules for project milestones and deliverable products:
Event Schedule Date 1.
Contract Initiation Meeting Within 5 days of contract award 2
Submittal of Draft Task 2 Report
- 45. days after award 3.
Meeting to review results of Tasks 1 &2 55 days after award 4.
Contractor's receipt of RRC comments on 66 days after award draft Task 2 Report 5
Submittal'of Fiisal Task 2 Report 71 days after award 6.
Meeting to discuss documentation developed under Tasks 3 and 4 146 days after award 7.
Submittal of draft users / analyst manual systems manual 270 days after award l
8.
Contractor's receipt of NRC comments on user's/ analyst and systems manual 300 days after award 9.
Submittal of final users / analyst and 315 days after award systems manual
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- 10. Submittal of all required computer documentation 330 days after award 11.
Training Session and Managment Briefing 360 days after award
t E.
MEETINGS AND TRAVEL The first project meeting shall be held at the NRC Offices in Silver Spring, Maryland within one week after award of the contract to discuss technical details related to performance of the tasks.
Th'e contractor shall be required to attend an estimate of twelve additional two day meetings at the NRC offices in Silver Spring, Maryland to ' discuss technical progress under the tasks or relate to management level review of all work in progress.
F.
NRC FURNISHED MATERIAL At the time of contract a. ward, the NRC will furnish current documentation of the AMASS and MCLAMS methodology and user documentation for the NIH computer system.
Access to the NIH computer, at no cost to the contractor, will be provided.
C.
- QUALITY ASSURANCE For all draft and final technical reports delivered under this contract,
~the contractor shall assure that an independent review and verification for technical accuracy, clarity or presentation, and completeness is performed by qualified contractor personnel other than the original
' author (s) of the report. The cover letter accompanying the report shall state that this review has been completed prior to submission
' to the NRC.
H.
CONTRACTOR'S PROPOSAL The effort specified in Article I, Paragraphs A-G shall be performed in accordance with the Contractor's Technical Proposal Number Pl. - 76.1 dated November 4,1981, add the supplement dated March 10,1982 which is incorporated herein by this reference, d
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ARTICLE II - PERIOD OF PERFORMAliCE The perfurnance of work described in ARTICLE I hereof shall connence as of the effective date of this contract and shall continue to completion thereof, esti-mated to-occur within 12 months after said contract is effective.
ARTICLE III - CONSIDERATION AND PAYMENT A.
Estimated Cost. Fixed Fee and Oblication 1.
It is estimated that the total cost to the Government for full perform-ante of this contract will be
, of which the sum of represents the estimated reimbursable costs, and of which 5
represents the fixed fee.
2.
Total funds currently available for payment and allotted to this con-tract are 5 of which $
represents the estirated reimbursable co.tts, and of which $
represents the fixec fee.
3.
There shall be no adjustment in the amount of the contractor's fixed fee by reason of differences between any estimate of cost for performance of the work under this contract and the actual cost performance of that work.
B.
Payment The Government shall render payment to the contractor in approximately tr.irty (30) days after submission of proper and correct invoices or vouchers.
_ Additional provisions relating to payment are contained in Clause 5.1-3 of the Ceneral Provisions hereto.
. ARTICLE IV - DVERHEAD/ GENERAL AND ADMINISTRATIVE RATES A.
Pending the establishment of final overhead ratas which shall be negotiated based or, audit of actual costs, the contractor shall be reimbursed for allowable indirect costs hereunder at the provisional rate of percent of : Direct Labor.
B.
Pending the establishment of final general and administrative rates
. which shall be negotiated based on audit of actuai costs, the contractor shall be reimbursed for allowable indirec: costs nereunder at the provi-sional rate of percent of : General and Administra'tive Costs.
C.
Notwithstanding A. and B. of this Article, said prov.sions1 overhead and G&A rates may be adjusted as appropriate during the term of the contract upon the acceptance of such revised rates by the Contracting Officer, l
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Article V - Allowable Cost Allowable Costs' for the Contractor's services under this contract shall be determined in accordance with General Provision No. 5.3
" Allowable Cost, Fixed-Fee and Payment."
A.
Prior Authorization of Certain Direct Costs Prior authorization in writing by the Contracting Officer is required for the following costs:
1.
Consultant Fees - Exception: The Contractor is hereby authorized to Utilize Dr. Fred H. Tingey, Mathematical Statistician, at a rate of s per hour.
It is estimated that Dr. Tingey's services shall not exceed a total of The Contractor is hereby authorized to utilize Mr. Robert Rose, Software Systems Engineer, at a rate of per hour.
It is estimated that Mr. Rose's services shall not exceed a total of 2c - Overtime, shift of incentive payments.
3.
All travel outside the United States.
4.
Rental agreements, service contracts, or maintenance of Covernment Equipment.
B.
Subcontractor Cost The Contractor is hereby authorized to enter into a subcontract with
.TS Infosystems, Inc., Ft. Washington, Maryland, for services on a cost-plus-fixed-fee basis in the estimated amount of The subcontract will include articles of this contract and applicable 4;RC General Provisions. A copy of the subcontract shall be submitted
.to the Contracting Officer upon execution.
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,1 l ARTICLE VI - TRAVEL itEI!!BURSEliENT The contractor will be reimbursed for the folicwing reasonable domestichtravel costs incur.ed directly and specifically in the' perfonnance of this contract and accepted by ths Contracting Officer:.
l' The subsistence rate,shall be reimbursed at a-daily rate not 1.
The per diem amount'is comprised of lodging expense plus $.to exceed $75.00.
for meals and mircellaneous expense.
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2.
The cost of travel by pri,tately owned autonebile shall be reimbursed at the rate of 20.56. per mile.
3.
The cost of travel by rentee.autor obile skall be reimbursed on a reasonable actual expense b' asis.
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4.
All, common carrier travel reimbursable hereunder shall beyia economy class rates when availablel If not available, reimbursement vcucr.ers will be annotated'that economy class.accUmmodation's were not availab'ie.
First-class air travel is not authorized.'
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Receipts are required for common carr er tratsportation, lodging and
/n miscellaneous items. in excess of, 515.00 s ~
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f ARTICLE VII PRIVATE USE AfiD PROTECTIOff 0F Ut4 CLASSIFIED GOVERitMENT liiFORMATION A.
Except as specifically authorized by this contract. or as otherwise approved l
by the Contracting Of ficer, records or other infomation, documents and material furnished by the Comission to the contractor in the performance of
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this contract, or infomation developed -by-the contractor in-the course of the work hereunder, shall be used only in connection with the work performed under this contract.
The contractor shall, upon completion or termination of this contract, transmit to the Comission all records or other information,
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documents and material, and any copies thereof, furnished by the Comission to the contractor or developed by the contractor in the performance of this contract.
B.
The contractor shall be responsible for safeguarding from unauthorized dis-closure any.infomation or other documents and material exempt from public disclosure by the Comission's regulations and made available to the con-tractor in connection with the performance of work under this contract.
The contractor agrees to confom to all regulations, requirements, and directions
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of the Comission with respect to such material.
/ ', C.
The contractor's duties under this clause shall not be construeo to limit or affect in any way the contractor's obligation to confom to all security rcgulations and requirements of the Commission pertaining to classified information and material.
AblCLEVIll-KEYPERSONNEL Pursuant to this ARTICLE (Key Personnel), the following individuals are considerea to be c::cnt4al to the successful performance of tne work hereunder and shall not ce replaced without the prior approval of the Contracting Officer.
In such event, the ccntractor agrees to substitute persons possessing substantially equal abilities andjqualifications satisfactory to the Contracting Officer.
/ Ralph Jones - Project Manager Dr. Fred Tingey - Mathematical Statistician l
Ron Hawkins - MC&A Systems Engineer Mr. Robert Rose - Software Systems Engineer 2 Ralph G. Lumb - Sr. Scientist ARTICI.E IX
- TECHNICAL DIRECTICH 4
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A.
Performance of the work under this contract shall be subject to the tech-l
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nical direction of the NRC Project Officer named in ARTICLE X
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The term " Technical Direction" is defined to include the
,'37 following:
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1.
Technical direction to the contractor which shif ts work emphasis between areas of work or tasks, requires pursuit of certain lines of inquiry, fills in details or otherwise serves to accomplish the con-tractual scope of work.
2.
Providing assistance to the contractor in the preparation of drawin55 specifications or technical portions of the work description.
3.
Review and where required by the contract, approval of technical reports, drawings, specifications and technical information to De delivered by the contractor to the Gover.uant under the contract.
oT3 be incorporated into any resultant contract.
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Technical direction must be within the ' general scope of work stated in the contract.
The Project Of ficer does not have the authority to and may not issue any technical direction which:
1.
Constitutes an assignment of. additional work outside the general scope of the contract.
l 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.
4.
Changes any of the expressed terms, conditions or specifications of the contract.
C.
ALL TECHNICAL DIRECTIONS SHALL BE ISSUED IN WRITING BY THE PROJECT OFFICER OR SHALL BE CONF RMED BY SUCH PERSON IN WRITING WITHIN TEN (10) WORKING DAYS AFTER VERBAL ISSUANCE.
A copy of said written direction shall be submitted to the Contracting Officer.
The contractor shall proceed promptly with the performance of technical directions du'ly issued by the Project Officer in the manner prescribed by i
this article and within such person's authority under the provisions of i
this article.
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-.If, in the opin-:on of the contractor, any instruction or direction issued by.the Project Officer is within one of the categories as defined in B(1) through (4) above, the contractor shall not proceed but shall notify the Contracting Officer in writing within five (5) working days after the receipt of any such instruction or direction and shall request the Contracting Officer to modify the contract accordingly.
Upon receiving such notification frcm the contractor, the Contraccing Officer shall issue an appropriate cont-act modification or advise the contractor in writing that,' ir, the Contracting Officer's opinion, the technical direction is within the scope of this article and does not constitute a change under the Changes Clause.
s D.
Any unauthorized commitment or direction issued by the Project Officer may l
result in an unnecessary delay in the contractor's performance, and nay I
dven result in the contractor expending funds for unallowable costs under the contract.
E.
A failure of the parties to agree upon the nature of the instruction or direction or upon the contract action to be taken with respect thereto shall be subject to the provisions of the contract clause entitled " Disputes."
ARTI'CLE X
- PROJECT OFFICER
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Dr. Hartin Messinger is hereby designated as the Contracting Officer's authorized representative (hereinafter called Project Officer) for technical aspects of this contract.
The Project Officer is not authorized to approve or request any action which results in or could result in an increase in contract cost; or terminate, settle any claim or dispute arising under the contract; or issue any unilateral directive whatever.
The Project Officer is responsible for:
(1) monitoring the contractor's technical progress, including surveillance and assessment of performance, and recommending to the Contracting Officer changes in requirerents; (2) interpreting the scope of work; (3) performing technical evaluation as required; (4) performing technical inspections and acceptances required by this contract; and (5) assisting the contractor in the resolution of technical problems encountered during performance.
Within the purview of this authority, the Project Officer is authorized to review all costs requested for reimbursement by contractors and submit reconmendations for approval, disapproval, or suspension for supplies, services required under the contract. The Contracting Officer is responsible for directing or negotiating any changes in terms, conditions, or amounts cited in the contract.
For guidance from the Project Officer to the contractor to be valid, it must:
(1) be consistent with tne description of work set forth in the contract; (2) not constitude new assignment of work or change to th'e expressed terms, conditions or specifications incorporated into this contract; (3) not constitute a basis for an extenn. ion to the perio'd of performance or contract delivery schedule; and, as,
stated above, (4) not constitute a basis for any increase in the contract cost.
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l ARTICLE XI - GEHERAL PROVISIONS / ALTERATIONS This contract is subject to the attached provisions of Appendix A. General Provisions, entitled " Cost Type Research and Development Contracts With Commercial Organizations," dated 12/1/81 with the following alterations made thereto:
A.
Deletions:
1.
Articles 1.21 and 1.22, " Privacy Act Notification", and " Privacy Act" respectivelp are deleted in their entirety.
Provisions Added:
3.12 ' Labor Surplus Area Subcontracting Program (1-1.905-3(b))
(a) The Contractor agrees to establish arid conduct a program which will encourage labor surplus area concerns to compete, for subcontracts within their capalTities.
In this connection, the Contractor shall--
(1)
Designate a liaison officer who will (1) maintain liaison with dulyauthorized representatives of the Government on labor surplus area matters, (ii) supervise compliance with the Utilization of Concerns in Labor Surplus Areas cluse, 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; l
(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, quantities, 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 comply with the policies set forth in this clause and report subcontract l
awards (see 41 CFR 1-16.804-5 regarding use of Optional Form 61). Records f
maintained pursuant 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 fqr such longer period as may be required by any other clause of this contract f
or by applicable law or regulations; and.
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Include the Utilization of Concerns in Labor Surplus Areas clause l
(5) in subcontracts which offer substantial labor surplus area subcontracting i
opportunities.
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(b)
(1) The term " labor surplus area" means a geographical area identified
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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" means a labor surplus area concern.
(3) The term " 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 services in labor surplus areas exceed 50 percent of the contract price.
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(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 Sur-lus Areas clause, provisions which shall conform substantially to the languace of this clause, including this paragraph.(c), and to notify the Contracting Officer of the names of such subcontractors.
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_ 3,13 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
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performance of contracts awarded by any Federal agency.
(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 business 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 make policy decisions.
" Operate".in this context means being actively involved in the day-to-day management.
" Women" mean all women business owners.
3.14 Women-OwnedBusinessConcernsSubcontractingPhogram(Over$500;000or
$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.
(':) Develop a list of qualified bidders that are women-owned businesses and assure that known women-owned business concerns have an equitable cgortunity to compete for subcontracts, particularly by making
- information on forthcoming opportunities available, by arranging solicitations, time for the preparation of bids, quantities, speci-
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fications, and delivery schedules so as to facilitate 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.
l (5) Include the " Utilization of Women 20wned Business Concerns" clause in subcontracts which offer substantial subcontracting opportunities.
(6) Cooperate in any studies and surveys of the Contractor's women-owned l
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 i
than quarterly) as the Contracting Officer may prescribe.
(b) The Contractor further agrees to insert, in any subcontract hereunder 4
which may exceed $500,000 or $1,000,000 in the case of contracts for the construction i
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 d6finition 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.
5.8 Price Reduction for Defective Cost or Pricing Data (1-3.814-1(a))
If any price, including profit or fee, negotiated in connection with this contract or any cost reimbursable under this contract was increased by any signi-ficant sums because:
(a) The Contractor furnished cost or pricing data which was not accurate, i
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 entitit.:
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" Subcontractor Cost or Pricing Data" or " Subcontractor Cost or Pricing Data--Price Adjustments" or any subcontract clause therein required, furnished cost or pricina l
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 pricing data which was required to be accurate, complete and current and to be submitted to
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support 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 Certificata 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 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 applicable 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 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 indemnify the Contractor. It is also expected that any subcontractor subject to such indemnification will generally require substantially similar indemnification for defective cost or pricing data required to be submitted by his low tier
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. subcontractors.)
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5.9 Price Reduction for Defective Cost or Pricing Data - Price Adjustmen'ts (1-3.814-1(b))
(a) This clause shall become operative only with respect 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 comercial items sold in substantial quantities to the general public, or prices 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, negotiated in connection with any price adjustment under this contract was increased by any significant sums because:
(1) The Contractor furnished cost or pricing data which was not i
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 Pricing Data--Price Adjustments" or any subcontract clause therein required, furnished cost or pricinq
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data which was not accurate, complete and current as. certified in the subcontractor's Certificate of Current Cost or Pricing Data; (3) A subcontractor or prospective subcontractor furnished cost or pricing data which was required to be accurate, complete and current and to be submitted to support a subcontract cost estimate furnished by the Contractor but l
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
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submitted; the price shall be reduced accordingly and the contract shall be modified l
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 applicable 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.
l (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 l
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 disoute concerning a question of fact within the meaning of the " Disputes" clause of this contract.
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5.10 Subcontractor Cost and Pricing Data' (1-3.814-3(a))
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(a) The Contractor shall require subcontractors hereunder to submit, 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 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 l
quantities to the general public, or prices set by law or regulation.
(b) 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 (a) above is accurate, complete, and current as of the date of agreement on the negotiated price of the subcontract or subcontract change or modificayu.1.,
(::) The Contractor shall insert the substance of this clause including this paragraph (c) in each subcontract hereunder which exceeds $100,000 when entered into except where the price thereof 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.
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 l
.' (a) Paragraphs (b) and (c) of this clause shall become operative only with res;:tet to any modification made pursuant to one or more provisions of this contract e
which-involves aggregate increases and/or decreases in coas plus applicable profits expectM to neeed $100,000. The requirements of this clause shall be limited l
to such contract modifications.
(b) The Contractor shall require subcontractors hereunder to submit, i
actually or by specific identification in writing, cost or pricing data under the following circumstances:
(1) Prior to award of any subcontract, the amount of which is expected to exceed $100,000 when entered into; 1
(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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5.10 Subcontract Cost and Pricing Data (1-3.814-3(a)) Cont'd (c) 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.
5.11 Cost Accounting Standards--Nondefense Contract (1-3.1204-2(a))
(a) Unless the Administrator of General Services has prescribed rules or regulations exempting the Contractor or this contract from standards, rules, and regulations promulgated by the Cost Accounting Standards Board, the Contractor, in co.mection with this contract, shall:
(1) Follow consistently the cost accounting practices established or disclosed.is required by regulations of the Cost Accounting Standards Board and administered 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 required to comply with by reason of concurrent performance of any contract or subcontract. subject to 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 hernmes 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-formance 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-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 edy be made under this provision that will increase costs paid by the United States.
-j 5.11 Cost Accounting Standards--Nondefense Contract (1-3.1204-2(a)) Cont'd.
1 (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 determined 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, from time the payment by the United States was made to the time the adjustment is effected.
(6) Negotiate an equitable 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 permit any authorized representatives of the head of the agency, of the Cost Accounting Standards Board, or of the Comptroller l'
General of the United States to examine and make copies of any documents, papers, or records relating to compliance with the requirements of this clause entil. the expiration of 3 years after final payment under this contract or such lesser time ~specified in the Federal Procurement Regulations (FPR) part 1-20.
(c).Unless a subcontract or Subcontractor is exempt under rules or regu-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 performing a national defense contract or subcontract that contains th::-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-I defense Contract clause set forth in 51-3.1204-2(b) of the FPR in negotiated subcor. tracts under this contract with all other subcontractors. The Contractor may elect to use the substance of the solicitation notice set for+.h in 51-
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3.1203-2(b) of the FPR in his determination of applicability cost accounting standarde tu subcontracts.
(d) The-terms 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 subcontract" means "any subcontract except a firm fixed-price subcontract made by a contractor or subcontractor after receiving offers from at least two firms -
not associated with each other or such contractor or subcontractor, providing (1) the solicitation to all competing finns is identical, (2) price is'the only consideration in selecting the subcontractor from among the competing firms.
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 d2fense contracts 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 include this Cost Accounting Standards--
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Nondefense Contract clause and reference to the Disclosure and Consistency of Cost Accounting Practices clause shall be deemed to include the Consistency of Cost Accounting Practices--Nondefense Contract clause.
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5.12 ' Administration of Cost Accounting Standards '(1-3.1204-1(b))
~i For the purpose of administrating Cost Accounting Standards requirements under this contract, 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 4
sum of all increases and the sum of all decreases for all contracts containing.
1 the Cost Accounting Standards clause or the Disclosure and Consistency of Cost Accounting Practices clause:
(1) For any cnange in cost accounting practices required to' comply with a new cost accounting standard in accordance with paragraph (a)(3) and (a)(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;'
1 (2) For any chan ance with paragraphs (a)(4)ge to cost accounting practices proposed in accord-(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 mutual.ly 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 tvfollow a disclosed prac;tice as contemplated by paragraph (a)(5) of the Cost Accounting Standards clatse or with paragraph (a)(4) of the Disclosure and Consistency of Cost Accounting Fractices clause within 60 days (or such other date a: ;;;sy be mutually agreed to) after the date of agreement of such noncompliance by the Contractor.
(b) Submit a cost impact proposal in the form and manner specified by the cognizant Contracting Officer within sixty (60) days (or such other date as may be mtually 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) Agree to appropriate contract and subcontract amendments to reflect adjustments-est:bli:hed 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.
(d) Waen 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. Sel f.-
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 uay be mutually agreed to) to submit the following infonnation to the Contract Administration Office Cognizant i
I of the subcontractor's facility.
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5.12 Administration of Cost Accounting Standards (1-3.1204-1(b)) Cont'd.
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(1) Subcontractor's name and subcontract number. -
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(2) Dollar amount and date of award.
(3) Name of Contractor making 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 standard (s) effective for the first time, this shall also be reported.
(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 apprcpripte, based upon the adjustment established under the subcontract.
Such notice shall be given within 30 days after receipt of the proposed sub-con' tract adjustment, and shall include a proposal for adjustment to such higher tier subcontract or prime 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 subcontracts, the term " Contracting Officer" shall be suitably altered to identify the purchaser.
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