ML20062C055
| ML20062C055 | |
| Person / Time | |
|---|---|
| Issue date: | 06/28/1982 |
| From: | Findley D, Mattia M NRC OFFICE OF ADMINISTRATION (ADM), SCIENCE APPLICATIONS INTERNATIONAL CORP. (FORMERLY |
| To: | |
| Shared Package | |
| ML20062C052 | List: |
| References | |
| CON-FIN-B-7356-2, CON-NRC-02-82-043, CON-NRC-2-82-43 NUDOCS 8208050146 | |
| Download: ML20062C055 (14) | |
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$363,2 materials, and services to accomplish the effort Fixed ce
, _ 32,5 entitled, " Assay of Long-Lived Radionuclides in Cost P us Fixed Fee 395,7I Low-Level Wastes from Power Reactors," as set forth in the Statement of Work herein and as implemented by SAI's technical proposal dated April 30, 1982 and SAI's letters of May 17, 1982 and May 21, 1982.
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TABLE OF CONTENTS This contract consists of the.following:
i 1.
STANDARD FORM 26 - COVER PAGE i
I 2.
TABLE OF CONTENTS 3.
CONTRACT SCHEDULE:
i Article I
- Statement of Work
~~~
Article II' ~- Period of Performance Article III - Consideration and Payment Article IV
- Incremental Funding Article V
- Overhead / General and Administrative Rates Article VI
- Private Use and Protection of Unclassified Government Information 4
Article VII - Key Personnel i
Article VIII - Technical Direction Article IX
- Project Officer Article X
- Travel Reimbursement i
Article XI
- General Provisions / Alterations
+
Article XII - Billing Instructions for NRC Cost-Type Contracts 4.
ATTACHMENTS:
j a) General Provisions for Cost Type Research and Development Contracts, dated 12/01/81 i
b) NRC Manual Appendix 3202 i
c) Microform Specifications for Division of Waste Management Contracts 1
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4 6
c.
C0flTRACT SCHEDULE ARTICLE I - STATEMEtiT OF WORK l
1.0 BACKGROUtiD l
The fluclear Regulatory Congnission (f1RC) recently published in the Federal Register (Vol. 46, fic.142, Friday, July 24, 1981, pp 38081-38105 a j
proposed rule,10 CFR 61, " Licensing Requirements for Land Disposal of Radioactive Maste." This proposed rule provides requirements for waste i
form characteristics based on a waste classification system.
The waste classification system defines waste form requirements based on the concen t ra t i on's 'o f7pec i fi ed ra d i onuc l i des.
In order to implement the waste classiirication system in a manner which is enforceable, is cost-effective, minimizes occupational exposures, and provides sufficiently accurate quantification of nuclides, the fiRC needs a data base of radionuclide concentrations in representative weste streams from nuclear power plants.
In addition, the riRC needs a method for correlating the concentrations of those radionuclides whir.h require complex analytical assay methods to the concentration of radionuclide which can be measured more easily.
2.0 WORK REQUIRED The contractor shall provide the necessary personnel, materials and facilities required to accomplish the tasks set forth in the Statement of Work.
l Task 1.
Radionuclide Assay The Contractor shall research the literature 1 Nt""*b0eth03m st 3
90 efgctivgganagicprocefugesforassayingH,C
, iii
, Ni
, Sr fib
, Tc
,I
, and Cs in radwaste samples.
The contractor shall also. provide for a peer review in order to come to a concensus pegarding the assay procedures to be used for the radwaste samples. The. contractor shall then j
analyze up to one hundred' twenty-five (125) samples obtained from the Electric Power Research Institute (EPRI) study, " Activity Levels of 5
Transuranic fluclides in low-Level Solid Wastes from U.S. Power Reactors,"
and determine to ghe gtent gractfcable ghe cggcengtions ofge following 5
g radionuclides:
H gg
, fii
, tii
, fib
, Tc
,I
, and Cs 90 fieasurements for Sr shall be performed on those samples for which Sr measurements were not previously performed.
In order to confirm the validity of analytic results, the contractor shall organize a confirmatory sample-splitting program and contract with an outside source to verify the analytic results.
4 In order to assure that the EPRI samples, which are up to six (6) years old, have undergone negligible aging effects, up to twenty (20) new samples from similar nuclear power facility waste streams as used in the EPPI study, shall be acciuired and analyzed.
If practicable, the new samples should be acquired from the same facilities as the EPRI study samples.
In addition to the analyses performed as described above, measurements shall be made for the actinide and gamma-emitting nuclides i
,o L
determined in the EPRI study.
The data from the new samples shall be compared with the data from the EPRI study samples to assure that the older sample results are consistent with the new sample data.
Task 2.
Scaling Factor Development Following the generation of the assay data, the contractor shall apply statistical correlation methods to provide appropriate scaling factors for use in implementing the 10 CFR 61 waste classification system.
Statistical correlation methods could include the linear least square method or other appropriate computational techniques.
Scaling factors should be b85ed f39 rrel ti, and Ce?R4 with more easily measured nuclides such as Co
, Cs 3.0 REPORTING REQUIREMENTS.
3.1 Project Plan Within three weeks after the award of the contract, the contractor shall submit to the NRC Project Officer for approval a detailed schedule of the planned activities showing milestones, and key events within each milestone.
The project plan will be approved or comments for revision returned to the contractor within two weeks after receipt by the NRC Project Officer.
Comments shall be resolved and a revised project plan shall be submitted to the NRC Project Officer for approval.
The NRC Project Officer's review of the project plan shall not delay the contractor's start of the project effort.
Revisions to the approved project plan shall be made only with the approval of the NRC Project Officer or Contracting Officer.
3.2 Monthly Progress Reports Each month the contractor shall submit a progress report which includes a detailed summa.y of the work accomplished during the reporting period.
The progress report shall also summarize (1) personnel time expenditures during the previous month; and (2) costs: (i) current period,(ii) cumulative to date, and (iii) cost projection by month to the completion of the work effort.
(The first monthly report shall provide the initial cost projections and subsequent reports shall either provide revised projections or indicate "no change in the cost projection.") The report shall be due by the 15th of the month following each reporting period.
One (1) copy of the progress report shall be submitted to the NRC Project Officer and one (1) copy shall be submitted to the Director, Division of Waste Management.
3.3 Final Report At the'Lonclusion of Tasks 1 and 2, the contractor shall furnish to the NRC Project Officer for review and comment ten (10) copies of a draft final report.
The report shall be in the format specified in NRC Manual Appendix 3202 for " Formal Contractor Documents. Attachment B."
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5 of 23 I
~~i The NRC Project Of ficer will furnish comments on the draft report to the contractor within four (4) weeks after receipt of the draf t report.
i Within six (6) weeks after the receipt of the NRC Project Officer's comments, the contractor shall revise the draft report and submit to the i
NRC Project Officer one (1) camera-ready copy and ten (10) copies of the
)
final report.
In addition, one (1) copy shall be submitted to the Contracting Officer, Division of Contracts, one (1) copy to the Program Support Branch, Office of Nuclear Materials Safety and Safeaguards, one (1) copy to the Director, Division of Waste Management, and one (1) copy to the Waste Management Docket Control Center, Division of Waste Management.
3.4 Microfiche Requirements i
Microfiche is required of all interim'and final reports.
The specifications for this microfiche are listed in Attachment C and the j
distribution is as follows:
Document Management Branch l
Division of Technical Information and Document Control, 1 Master Docket Control Center Division of Waste Management,1 Duplicate i
3.5 Meetings The Contractor shall meet with the NRC Project Officer up to four (4) times during the conduct of the study and within two (2) weeks following submittal of the draft final report.
Upon completion of the final report the contractor shall brief the NRC Project Officer and other NRC staff on the final report.
These meetings shall be of (1) day's duration and shall be held at at the NRC's offices in Silver Spring, MD.
4.0 NRC FURNISHED MATERIAL i
Within two (2) weeks of the award of this contract, the NRC Project Officer will provide the performing organization with one (1) copy of the proposed rule,10 CFR 61, " Licensing Requirements for Land Disposal of Radioactive Waste" and _one (1) copy of HUREG-0782, " Draft Environmental Ir pact Statement on 10 CFR Part 61."
5.0 QUALITY ASSURANCE PROCEDURES For all draft and final technical reports delivered under this contract the contractor shall assure that an independent review and verification of all numerical computations and mathematical equations and derivations are performed by qualified personnel other than the original I
author (s) of the reports.
If the contractor proposes to verify / check less than 100 percent of all computations and mathematical equations and Berivations in the report (s), (such as might be the case when there are a large number of routine, repetitive calculations), the contractor must
v vi ns first obtain written approval from the NRC Project Officer.
Computer-generated calculations will not require verification where the computer program has already been verified.
In addition, for all reports, including those which do not contain numerical analyses, a managment review shall be conducted at Division Manager level prior to submission to the NRC.
All reports shall be annotated to indicate that the review and verification has been accomplished prior to their submission to the NRC.
(This may be accomplished by use of a cover letter accompanying the report-if preferable. )"
ARTICtE' II'- P'ERIO'D 0[ PERFORMANCE
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The performance of work depcribed in ARTICLE I hereof shall commence as of the i
effective date of this contract and shall continue through 24 months after said contract is effective at which time all work shall have been completed and all reports shall have been submitted.
ARTICtE Ill - CONSIDERATION AND PAYMENT (Incrementally Funded CPFF)
A.
Estimated Cost, Fixed Fee and Obligation 1.
It is estimated that the total cost to the Government for full perform-ante of this contract will be
$395,769.00, of which the sum of
$363,257.00 represents the estimated reimbursable costs, and of which
$32,512.00 represents the fixed fee.
2.
Total funds currently available for payment and allotted to this con -
tract are $300,000.00 of which $275,356.00 represents the estimated reimbursable costs, and of which
$24,644.00 represents the fixec
,ree.
3.
It is estimated that the amount currently allotted will cover performance through 14 months from the effective date of the contract.
B.
Payment The Government shall render payment to the contractor in approximately thirty (30) days after submission of proper and correct invoices or vouchers.
Additional provisions relating to payment are contained in Provision No. 5.3 of.
the General Provisions hereto.
I
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7 of 23 ARTICLE IV
- IliCREMEllTAL Fut1DIf1G 1.
Sufficient funds are not presently available to cover the totality of work over the entire period of performance under this contract.
Additional funds will be alloted from time to time by contract modification up to -the full estimated amount of the contract.
While it is the Government's intention.to progressively fund tnis contract up to the full estimated amount over the entire period of performance, the Government will not be obligated to reimburse the Contractor for costs in excess of periodic allotments, nor will the contracto'r be obligated to continue performance in excess of amounts alloted.
2.
Clause fiumber 5.2 " Limitation of Funds" of the General Provisions, attache @
hereto, shall supercede Clause fiumber 5.1 " Limitation of Cost" until such time as the contract is fully funded.
ARTICLE V - OVERHEAD / GENERAL AND ADMINISTRATIVE RATES /ALLOUABLE COSTS A.
Pending the establishment of final overhead rates which shall be negotiated based on audit of actual costs, the contractor shall be reimbursed for material overhead costs at the provisional rate of 2.5 percent of subcentract costs and for labor overhead costs at the provisional rate of 83.5 percent of direct labor costs.
The fringe benefit overhead cost shall be reimbursed at the provisional rate of 40.7 percent of direct labor costs.
B.
Pending the establishment of final general and administrative rates which shall be negotiated based on audit of actual costs, the contractor shall be reimbursed for allowable indirect costs hereunder at the provisional rate of 12.5 percent of total direct cost and overhead except for subcontract costs.
C.
Notwithstanding A. and B. of this Article, said provisional 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.
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. ARTICLE VI
- PP,IVATE USE AtiD FROTECTION OF U*iCLASSIFIED GOVERtmEr4T INFOR%T1 A.
Except as specifically authorized by this contract, or as otherwise apprd material furnished by the Comission to the contractor in the perfomanc by the Contracting Of ficer, records or other information, documents and this contract, or infomation developed by the contractor in the course c the work hereunder _, shall be used only in connection with the work perfor under this contract.
The contractor shall, upon completion or 'teminatic this contract, transmit to the Comission all records or other informatic documents and material, and any copies thereof, furnished by the Comissi to the contractor or developed by the contractor in the perfonnance of ti contract.
B.
The contractor shall be responsible for safeguarding from unautiiorized di closure any infonnation or other documents and material exemot from publ1 disclosure _by the Commission's regulations and made available to the con-tractor in connection with the performance of work under this -contract.
contractor agrees to confom to all ' regulations, requirements, and direc1 of the Commission with respect,to such material.
C.
The contractor's duties under this clause shall not be construed to limi1 or affeut in any way the contractor's obligation to confom to all secur' regulations and requirements of the Comission pertaining to classified infonnation and material.
ARTICLE VII - KEY PERS0fitiEL Pursuant to General Provision ilo. 2.3 (Key Personnel), the following individuals are. considered to be essential to the successful performance of the work hereunder
.and.shall not be replaced without the prior approval of the Contracting Officer.
In.such event, the contractor agrees to substitute persons possessing substantiall cqual abilities and qualifications satisfactory to the Contracting Officer.
James E. Cline, Project fianager Joanne Hollcroft, Senior Analyst James R. fioyce, Principal-Investigator Charles A. Pelletier, Technical Advis Kelvin L. Wright, Lead Chemist ARTICLE VIII-
- TECHlilCAL DIRECTICfi A.
Performance of the work under this contract shall be subject to the tech-nical direction of the 14RC Project Officer named in ARTICLE IX' of this contract.
The term " Technical Direction" is defined to include the following:
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 acccmplish the con-tractual scope of work.
2 2.
Providing assistance to the contractor in the preparation of drawings, specifications or technical portions of the work description.
3.
Review and where required by the contract, approval of technical reports, drawings, specifications and technical informa tion to oe delivered by the contractor to the Goverr.mant under the contract.
, em
. B.
Technical direc tion must be within the general scope of work stated in W contract.
The Project Of ficer does not have the authority to and may na issue any technical direction which:
1.
Constitutes an assignment of additional work outside the general sct of the contract'.
2.
Constitutes a change as defined in the clause of the General Provis enti tled " Changes."-
3.
In any way causes an increase or decrease in the total estinated 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 Of OR SHALL BE CONFIRMED BY SUCH P'ERSON IN WRITING WITHIN TEN (10) WOR 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 duly issued by the Project Officer in the manner prescribed bg this article and within such person's authority under the provisions of this article.
If, in the opinion of the contractor, any instruction or direction issuef by the Project Officer is within one of the categories as defined in B(l[
through (4) above, the contractor shall not proceed but shall notify the Contracting Of ficer in writing within five (5) working days after the receipt of any such instruction or direction and shall request the Contra <
Officer to modify the contract accordingly.
Upon receiving such notifica from the contractor, the Contracting Officer shall issue an appropriate contract modification or advise the contractor in writing that, in the Cgntracting Officer's opinion, the technical direction is within the scop of this article and does not constitute a change under the Changes Clause.
i D.
A6y unauthorized commitment or direction issued by the Project Office'r rag result in an unnecessary delay in the contractor's performance, and ray sven result in the contractor expending funds for unallowable costs under the contract.
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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 "Disputt I
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ARTICLE IX'- PROJECT OFFICER Timothy Johnson,(hereinafter called Pis hereby desionated as the Cont NMSS representative roject Officer) for technical aspects of contract.
The Project Officer is not authorized to approve or request any a which results in or could result in an increase in contract cost; or termina:
settle any claim or dispute arising under the contract; or issue any unilate directive whatever.
The Project Officer-is responsible for:
(1)- monitoring the contractor's tec progress, including surveillance and assessment of performance, and recommen to the Contracting Officer changes in requiremants; (2) interpreting the sc@
work; (3) performing technical evaluation as required; (4) performing techni inspections and acceptances required by this contract; and (5) assisting th; contractor in the resolution of technical problems encountered during perfor Within the purview of this authority, the Project Officer is authorized to r all costs reouested for reimbursement by contractors and submit recommendatil for approval, disapproval, or suspension for supplies, services required undi the contract.
The Contracting Officer is responsible for directing or negot 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 the description of work set forth in the contract; (2
constitute new assignment of work or change to the expressed terms, conditior or specifications incorporated into this contract; (3) not constitute a basis an extension to the period of performance or contract delivery schedule; and, stated above, (4) not constitute a basis for Eny increase in the contract cos s
ARTICLE X - TRAVEL REll1BURSEliENT
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The contractor will be reimbursed._for the following reasonabTe-~doieltic'tras costs incurred-directly and specifically in the performance of this contract and accepted by the Contracting Officer:
1.
The cost of travel by privately owned automobile shall be reimbursed at 1 rate of.20c per mile.
The ccst of travel by rented automobile shall be reimbursed on a reasonat 2.
actuai expense basis.
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' ' AR11CLE XI
- GEliERAL PROVIS10!iS/AllERAT10d5 This contract is subject to Attachment A provisions of Appendix A, General Provisions, entitled " Cost Type Research and Development Contracts With Cormercial Organizations " dated 12/1/81.
Provisions Added:--
3.12 Labor Surplus Area Subcontracting Program (1-1.805-3(b))(Over $500,000)
(a) The Contractor agrees 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 reprisentatives 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, quantities, specifications, and delivery schecules 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 awards (see 41 CFR l-16.804-5 regarding use of Optional Form 61).
Records 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 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-employmen't or an area of labor surplus.
(2) The term " concern located in a labor surplus area" means 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.
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(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.
(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 conform substantially to the language of this clause, including this paragraph (c), and to notify the Contracting Officer of the names of such subcontractors.
a s; 23 3.13 Utilization of Women-Daned 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.
(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 er 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-Owned Business Concerns Subcontracting Program (Over $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-Owned Business Concerns Program."
(2) Provide adequate and timely consideration of the potentialities of i
known women-owned business concerns in all "make-or-buy" decisions.
(3) Develop a list of qualified bidders that are women-owned businesses i
and assure that known women-owned business concerns have an equitable opportunity to compete for subcontracts, particularly by making information on forthcoming opportunities available, by arranging solicitations, time for the preparation of bids, quantities, speci-fications, and delivery schedules so as to facilit6te the participatios of women-owned business concerns.
(4) Maintain records showing (i) procedures which have been adopted l
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
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efforts to identify and award contracts to women-owned business concerns. -
(5)
Include the " Utilization of Women-Owned 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 p'rocedures and practices that the Contracting Of ficer may from time-to-time conduct.
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(7) Submit periodic reports of subcontracting to women-owned business concerns withrrespect to the records referred to in subparagraph (4) above, in such. form and manner and at such time (not.more of ten 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 construc of any public-facility -and-which offers-substantial subcontracting possibil.itiesa provisions which shall conform substantially to the language of this clause, incl 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 subc6ntractors that they ar'e bona fide women-owned and controlled business concer in accordance with the definition of a women-owned business concern as set forth in the Utilization Clause 1(b) ab' ve at the time of submission of bids or propose o
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 sioni-ficant sums 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
" 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' 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 suppcrt 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
'(di 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 l
in the contract price due to defective subcontract data of a prosoective subcon-I 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 subcontracti or actual cost to the Contractor if there was no subcontrac2 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 subcontractors.)
5.9 Price Peduction for Defective Cost or Pricing Data - Price Adjustments (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 conmercial 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 limites to defects in data relating to such modification.
(b)
If any price, including profit, or fee, necotiated in connection with '
^
any price adjustment under this contract was increased by any significant sums because:
(1) 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 Adjustmcr.ts" or any subcontract clause therein required, furnished cost or pricina data which was not accurate, complete and current as certified in the subcontractor
Certificate of Current Cost or Pricino Data; (3) A subcontractor or prospective subcontractor furnished cost or pricing data which was recuired to be accurate, complete and current and to be submi.tted 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 nadified 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 estirate 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 ce pricing data required to be submitted by his lower tier subcontractors.)
(c) Failure to agree on a reduction shall be a disnute concernino a question of fact within the meaning of the " Disputes" clause of this contract.
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