Part I - The Schedule (Continued)
Section H - Special Contract Requirements

H.1             [Orig]  PROHIBITION AGAINST USE OF FOREIGN SHIPYARDS

H.1.1.             [Orig]  In accordance with 14 U.S.C. 665, the boat, including major components of the hull or superstructure, required by the contract may not be constructed in a foreign shipyard.

 

H.2             [Orig]  LIABILITY AND INSURANCE

H.2.1.             [Orig]  The Contractor shall exercise reasonable care and use their best efforts to prevent accidents, injury or damage to all employees, persons and property, in and about the work, and to the RB-M(s) or parts thereof upon which work is done.  Notwithstanding this clause, the Government does not assume any risk with respect to, and will not pay for any costs of the Contractor for the inspection, repair, replacement, or renewal of any defects in the RB-M(s) or such systems, materials, and equipment for which the Contractor is responsible, in accordance with the clauses of the contract concerning quality assurance, warranty or inspection.

H.2.2.             [Orig]  The Contractor shall not, unless otherwise directed or approved in writing by the Contracting Officer, carry or incur the expense of any insurance against any form of loss or damage to the RB-M(s) or to the systems, materials, or equipment therefore to which the Government has title.  The Government assumes the risks of loss of and damage to the RB-M(s) and such materials and equipment which would have been assumed by the underwriters if the Contractor had procured and maintained throughout the term of this contract, on behalf of itself and the Government, insurance with respect to the RB-M(s) and such systems, materials, and equipment for full value against pre keel and post keel laying risks which would have been customarily carried by the Contractor in the absence of the foregoing requirement that the Contractor not carry or incur the expense of insurance.  The Government does not assume any risk with respect to loss or damage compensated for by insurance or otherwise or resulting from risks with respect to which the Contractor has failed to procure or maintain insurance, if available, as required or approved by the Contracting Officer; provided, further, that under this clause the Government does not assume any risk with respect to, and will not pay for any costs of the Contractor for the inspection, repair, replacement or renewal of any defects themselves in the RB-M(s) or systems, materials, or equipment performed by or furnished by the Contractor or its Subcontractors which do(es) not conform to the requirements of the contract, whether or not any such defect is latent or whether or not any such nonconformance is the result of negligence; provided, further, that under this clause the Government does not assume the risk of and will not pay for the costs of any loss, damage, liability or expense caused by, resulting from, or incurred as a consequence of delay or disruption of any type whatsoever; or willful misconduct or lack of good faith on the part of any of the Contractor's managers, superintendents or other equivalent representatives who have supervision or direction of (i) all or substantially all of the Contractor's business, (ii) all or substantially all of the Contractor's operation at any one plant or (iii) a separate and complete major industrial operation connected with the performance of this contract (Lack of good faith is presumed where management has been notified of any unsafe condition or practice contrary to the Fire, Flooding and Destructive Weather Plans, corrective action has been agreed to by management or directed by  the contracting officer, corrective action is not taken after a reasonable time, and such unsafe condition or practice materially contributes to either the cause of the fire or the extent of the damage.); provided, however, that as to such risk assumed and borne by the Government, the Government shall be subrogated to any claim, demand or cause of action against third persons which exists in favor of the Contractor, and the Contractor shall, if required, execute a formal assignment or transfer of claims, demands or causes of action; provided, further, that nothing contained in this paragraph shall create or give rise to any right, privilege or power in any person except the Contractor, nor shall any person (except the Contractor) be or become entitled thereby to proceed directly against the Government, or join the Government as codefendant in any action against the Contractor's liability or for any other purpose.  Notwithstanding the foregoing, the Contractor shall bear the first deductible of loss or damage for each occurrence or incident the risk of which the Government otherwise would have assumed under the provisions of this paragraph.  This deductible is initially set at $30,000.00 and may vary from $10,000.00 to $50,000.00.  For each month from approval of the Fire and Flooding Protection Plan that there is no loss in excess of the deductible, the deductible decreases by $5,000.00 until the floor of $10,000.00 is reached.  Upon the occurrence of a loss in excess of the deductible, the deductible increases to $50,000.00 and remains at that amount until 3 months with no losses at which time the deductible may then begin to decrease $5,000.00 for each month without loss in excess of the deductible.

H.2.3.             [Orig]  The Contractor indemnifies and holds harmless the Government, its agencies and instrumentalities, against all suits, actions, claims, costs or demands, (including, without limitation, suits, actions, claims, costs or demands resulting from death, personal injury, and property damage) to which the Government, its agencies and instrumentalities, may be subject or put by reason of damage or injury (including death) to the property or person of any one other than the Government, its agencies, instrumentalities and personnel, arising or resulting in whole or in part from the fault, negligence, wrongful act or wrongful omission of the Contractor, or any subcontractor, or their servants, agents or employees; provided, that the Contractor's obligation to indemnify under H.2.3 shall not exceed the sum of $500,000.00 on account of any one accident or occurrence in respect of any one RB-M.  Such indemnity shall include, without limitation, suits, actions, claims, costs or demands of any kind whatsoever, resulting from death, personal injury or property damage occurring during the period of performance; and with respect to any such suits, actions, claims, costs, or demands resulting from death, personal injury or property damage occurring after the expiration of such period, the rights and liabilities of the Government and the Contractor shall be as determined by other provisions of this contract and by law; provided, however, that such indemnity shall apply to death occurring after such period which results from any personal injury received during the period covered by the Contractor's indemnity as provided herein.

H.2.4.             [Orig]  The Contractor shall procure, and thereafter maintain such casualty, accident and liability insurance, in such forms and amounts as may be approved by the Contracting Officer, insuring the performance of their obligations under H.2.3 above.  Further, the Contractor shall procure and maintain in force Workmen's Compensation Insurance (or its equivalent) covering their employees engaged on the work and shall insure the procurement and maintenance of such insurance by all subcontractors engaged on the work.  The Contractor shall provide such evidence of such insurance as may be, from time to time, as required by the Government.  All such insurance which is or may be required or approved pursuant to this clause shall be in such form, in such amounts, for such periods of time, and with such insurers as the Contracting Officer may from time to time require or approve, provided the Contractor shall be named as an insured and shall be entitled to payment of any loss or damage as its interest may appear.

H.2.5.             [Orig]  No allowance shall be made to the Contractor in the contract price for the inclusion of any premium expense or charge for any reserve made on account of self-insurance for coverage against any risk assumed by the Government under this clause.  The cost of the insurance required by H.2.4 above is included in the price and the cost of all other insurance, which may be required or approved pursuant to this clause will be considered allowable costs under this contract.  If the Contracting Officer should require or approve the cancellation of any such insurance, the Contractor will promptly pay to the Government the amount of all unearned premiums refunded to the Contractor, but only to the extent that such premiums shall have been reimbursed to the Contractor by the Government or included in the contract price.

H.2.6.             [Orig]  As soon as practicable after the occurrence of any loss or damage the risk of which the Government has assumed, written notice of such loss or damage shall be given by the Contractor to the Contracting Officer.  This notice shall contain full particulars of such loss or damage.  If claim is made or suit is brought thereafter against the Contractor as a result or because of such event, the Contractor shall immediately deliver to the Government every demand, notice, summons or other process received by themselves or their representatives.  The Contractor shall cooperate with the Government and, upon the Government's request, shall assist in effecting settlements, securing and giving evidence, obtaining the attendance of witnesses and in the conduct of suits; and the Government shall pay to the Contractor the expense, other than the cost of maintaining the Contractor's usual organization, incurred in so doing.  The Contractor shall not, except at its own cost, voluntarily make any payment, assume any obligation, or incur any expense other than shall be imperative for the protection of the RB-M(s) at the time of said occurrence of such event.

H.2.7.             [Orig]  In the event of loss of or damage to any of the RB-Ms or any of the systems, materials, or equipment therefore which may result in a claim against the Government under the insurance provisions of this contract, the Contractor promptly shall notify the Contracting Officer of such loss or damages, and the Contracting Officer may, without prejudice to any other right of the Government:

H.2.7.1.             [Orig] Either order the Contractor to proceed with replacement or repair in which event the Contractor shall effect such replacement or repair.  The Contractor shall submit to the Contracting Officer a request for the cost of such replacement or repair together with such supporting documentation as the Contracting Officer may reasonably require, and shall identify such requests as being submitted under the "Insurance" Clause of this contract.  If the Government determines that the risk of such loss or damages is within the scope of the risks assumed by the Government under this clause, the Government will reimburse the Contractor for the reasonable, allowable cost of such replacement or repair, plus a reasonable profit (if the work of replacement or repair was performed by the Contractor) less the deductible amount as specified in H.2.2 above.  Payments by the Government to the Contractor under this Insurance clause are outside the scope and shall not affect the pricing structure of the contract, and are additional to the compensation otherwise payable to the Contractor under this contract

H.2.7.2.             [Orig] Or, in the event the Contracting Officer decides that the loss or damage shall not be replaced or repaired,

H.2.7.2.1.              [Orig] Either modify the contract appropriately consistent with the reduced requirements reflected by the un-replaced or un-repaired loss or damage,

H.2.7.2.2.              [Orig] Or terminate under the FAR 52.249-2 "Termination for Convenience of the Government (Fixed Price)." incorporated in Section I.1 of this contract.

H.2.8.             [Orig]  Reserved.

 

H.3             [Orig]  ACCESS TO CONTRACTOR’S FACILITY

H.3.1.             [Orig]  Officers, employees, and associates of other prime contractors with the Government and their subcontractors, shall, as authorized by the Contracting Officer, have at all reasonable times, admission to the Contractor’s facility, where and as required, and be permitted within the Contractor’s facility to perform and fulfill their respective obligations to the Government.  The Contractor shall make reasonable arrangements with the Government or contractors of the Government, as shall have been identified and authorized by the Contracting Officer, to be given admission to the Contractor’s facility, office space, work areas, storage or shop areas, or other facilities and services reasonable and necessary for the performance of the respective responsibilities involved.

H.3.2.             [Orig]  Reasonable access shall be provided to the Government to carry out its responsibilities under this contract.

 

H.4             [Orig]  POST AWARD CONFERENCE

H.4.1.             [Orig]  The Contractor shall host a Post Award Conference (PAC), which the Contracting Officer will chair, at the production facility within 30 days following contract award.  The conference is expected to be approximately three days in duration and cover topics provided by the Contracting Officer.  The Contractor may recommend additional topics but, at a minimum, topics are expected to include:

H.4.1.1.             [Orig] A Post Award Debriefing, if requested in accordance with FAR 15.506.

H.4.1.2.             [Orig] An introduction of key personnel by both the Government and the Contractor.

H.4.1.3.             [Orig] A presentation and discussion led by the Contractor concerning the Contractor’s Contract Work Breakdown Structure.

H.4.1.4.             [Orig] A presentation and discussion led by the Contractor concerning the Contractor’s Integrated Master Plan and Integrated Master Schedule for the initial delivery order.

H.4.1.5.             [Orig] An opportunity for the Government to conduct Earned Value and Integrated Baseline Review preparation training, as outlined in SOW Section  041-10.2.3.

H.4.1.6.             [Orig] A presentation and discussion led by the Contractor concerning use of the IPDE for CDRL deliverables and file sharing.  IPDE access and protection should be included in the discussion.

H.4.1.7.             [Orig] A discussion of the delivery order for CLIN 1002, including potential break-out sessions for the subject matter experts on the following topics:

H.4.1.7.1.              [Orig] A presentation and discussion led by the Contractor concerning the Contractor’s plan for Detailed Design Review.

H.4.1.7.2.              [Orig] A presentation and discussion led by the Contractor concerning the Contractor’s plan for meeting the contract requirements for configuration management.

H.4.1.7.3.              [Orig] A presentation and discussion led by the Contractor concern the Contractor’s plan for meeting the contract requirements for the Integrated Systems Model and the IT Integrator.

H.4.2.             [Orig]  The Contracting Officer will provide a list of attendees.  Coast Guard representation will likely include the Contracting Officer, Project Manager, Project Sponsor’s Representative, Deputy Project Manager, Project Technical Manager, Project Logistician, Project Master Chief, and the Commanding Officer and senior staff of the Project Resident Office.  Contractor personnel should include equivalent representation.

H.4.3.             [Orig]  The PAC is not a substitute for the Contractor’s full understanding of the work requirements at the time offers are submitted.  Furthermore, it shall not preclude the Coast Guard from identifying errors, omissions, and inconsistencies during contract performance.

H.4.4.             [Orig]  The Contractor shall be responsible for meeting agenda and minutes in accordance with SOW Section 042-2.

 

H.5             [Orig]  MAJOR SUBCONTRACTORS

H.5.1.             [A00012]  Major subcontractors, including the IT Integrator and any subcontractors performing a substantial portion of the effort, are essential to the work being performed under this contract.  The major subcontractors listed below may not be changed without prior written consent from the Contracting Officer.  The Contractor is responsible for providing justification for any change including any proposed substitute.

Kvichak Marine Industries

EDO Corporation

Gradient eLearning

 

H.6             [Orig]  EARNED VALUE MANAGEMENT SYSTEM

H.6.1.             [Orig]  “Earned Value Management (EVM) as used in this clause, means a project management system used by the Contractor that effectively integrates the project technical scope of work with schedule and cost elements for optimum project planning and control.  The qualities and operating characteristics of earned value management systems are described in American National Standards Institute (ANSI)/Electronic Industries Alliance (EIA) Standard-748- A-1998, Earned Value Management Systems, approved: May 19, 1998, Reaffirmed: August 28, 2002.  A copy of the standard is available from Global Engineering Documents (1-800-854-7179).

H.6.2.             [Orig]  In the performance of this contract the Contractor shall use an earned value management system (EVMS) to manage the contract that –

H.6.2.1.             [Orig] At the time of contract award has been recognized by the contracting officer or her/his authorized representative as compliant with the guidelines in ANSI/EIA Standard -748-A.  If, at the time of award, the Contractor's EVMS has not been recognized by the Contracting Officer as complying with EVMS criteria, the Contractor shall apply the system to the contract and shall be prepared to demonstrate to the contracting officer that the EVMS complies with the EVMS criteria referenced in paragraph H.6.1 of this clause.

H.6.2.2.             [Orig] Provides, in a format prescribed by the Statement of Work and Contract Data Requirement 041-006 on a monthly basis, or more often as negotiated by the contracting officer, the following project status information at WBS level specified in the Statement of Work and CDR 041-006, with capability to report at any lower level at the request of the Contracting Officer:

H.6.2.2.1.              [Orig] Budgeted (planned) cost for work scheduled (BCWS); = Planned Value