**OFFEROR PRICE AND MILESTONE PAYMENT PROPOSAL**

**[SECTION 1 - OVERVIEW]{.underline}**

The Draft Statement of Work and Sample Subcontract identify the
Tri-Laboratories' suggested milestones for the TLCC Procurement.
Offerors may propose alternate milestones if they believe alternate
milestones are more advantageous to the Tri-Laboratories.

*Offerors must complete this form to identify its proposed milestones
and associated payment amounts. Offerors must return this form along
with its proposal submission.*

*Offerors proposing milestones in accordance with the Draft Statement of
Work and Sample Subcontract must insert proposed milestone payment
amounts (for each milestone) in Section 2 below.*

*Offerors proposing alternate milestones must complete the tables and
insert milestone payment amounts (for each milestone) in Section 3
below.*

Offerors are advised that milestone payment amounts must be commensurate
with the value to be received by the Tri-Laboratories for each
milestone. The Tri-Laboratories will not seriously consider milestone
payment proposals that are "front-loaded", meaning that proposed
milestone payment amounts (for each quarter delivery) are valued
significantly higher for initial SU build milestones and leave little or
no payment in reserve for final cluster acceptance milestones. The
University prefers milestone payment proposals that include reasonable
payment reserves for cluster acceptance, which serve to protect the
Tri-Laboratories' interest. Also note that the Tri-Laboratories strongly
prefer to pay for service in arrears (as opposed to advance payments)
for the TLCC Procurement.

**[SECTION 2 -- OFFEROR PAYMENT PROPOSAL FOR UNIVERSITY SUGGESTED
MILESTONES]{.underline}**

OFFEROR NAME: \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

> A. Offeror's proposed milestone payment schedule for deliverables
> follows.

  --------------------------------------------------------------------------
  **Milestone   **Milestone Description**          **Due Date**  **Payment
  No.**                                                          Amount**
  ------------- ---------------------------------- ------------- -----------
  6.3.1         Detailed Project Plan              7 days after  *insert* \$
                                                   Subcontract   
                                                   award         

  6.3.2         Tri-Laboratory BASS Final Checkout 09/15/07      *insert* \$

  6.3.3         Phase 1 SU Build                   10/07         *insert* \$

  6.3.4         Phase 1 SU Delivery and Acceptance 10/07         *insert* \$

  6.3.5         Phase 1 Cluster Integration        11/07         *insert* \$

  6.3.9         Phase 2 SU Build                   01/08         *insert* \$

  6.3.10        Phase 2 SU Delivery and Acceptance 01/08         *insert* \$

  6.3.11        Phase 2 Cluster Integration        02/08         *insert* \$

  6.3.12        Phase 3 SU Build                   04/08         *insert* \$

  6.3.13        Phase 3 SU Delivery and Acceptance 04/08         *insert* \$

  6.3.14        Phase 3 Cluster Integration        05/08         *insert* \$

  6.3.18        Phase 4 SU Build                   07/08         *insert* \$

  6.3.19        Phase 4 SU Delivery and Acceptance 07/08         *insert* \$

  6.3.20        Phase 4 Cluster Integration        08/08         *insert* \$

                **TOTAL**                                        *insert* \$
  --------------------------------------------------------------------------

> B. Offeror's proposed milestone payment schedule for service (i.e.,
> hardware and software maintenance and training) follows.

  ------------------------------------------------------------------------
  **Milestone   **Milestone Description**    **Completion     **Payment
  No.**                                      Date**           Amount**
  ------------- ---------------------------- ---------------- ------------
  1             Acceptance of service for    The date the     *insert* \$
                Phase 1 SUs                  University       
                                             accepts          
                                             Milestone 6.3.5  

  2             Acceptance of first service  180 days after   *insert* \$
                period for Phase 1 clusters  the date the     
                                             University       
                                             accepts          
                                             Milestone 1      

  3             Acceptance of second service 185 days after   *insert* \$
                period for Phase 1 clusters  the date the     
                                             University       
                                             accepts          
                                             Milestone 2      

  4             Acceptance of third service  180 days after   *insert* \$
                period for Phase 1 clusters  the date the     
                                             University       
                                             accepts          
                                             Milestone 3      

  5             Acceptance of fourth service 185 days after   *insert* \$
                period for Phase 1 clusters  the date the     
                                             University       
                                             accepts          
                                             Milestone 4      

  6             Acceptance of fifth service  180 days after   *insert* \$
                period for Phase 1 clusters  the date the     
                                             University       
                                             accepts          
                                             Milestone 5      

  7             Acceptance of final service  185 days after   *insert* \$
                period for Phase 1 clusters  the date the     
                                             University       
                                             accepts          
                                             Milestone 6      

  8             Acceptance of service for    The date the     *insert* \$
                Phase 2 SUs                  University       
                                             accepts          
                                             Milestone 6.3.11 

  9             Acceptance of first service  180 days after   *insert* \$
                period for Phase 2 clusters  the date the     
                                             University       
                                             accepts          
                                             Milestone 8      

  10            Acceptance of second service 185 days after   *insert* \$
                period for Phase 2 clusters  the date the     
                                             University       
                                             accepts          
                                             Milestone 9      

  11            Acceptance of third service  180 days after   *insert* \$
                period for Phase 2 clusters  the date the     
                                             University       
                                             accepts          
                                             Milestone 10     

  12            Acceptance of fourth service 185 days after   *insert* \$
                period for Phase 2 clusters  the date the     
                                             University       
                                             accepts          
                                             Milestone 11     

  13            Acceptance of fifth service  180 days after   *insert* \$
                period for Phase 2 clusters  the date the     
                                             University       
                                             accepts          
                                             Milestone 12     

  14            Acceptance of final service  185 days after   *insert* \$
                period for Phase 2 clusters  the date the     
                                             University       
                                             accepts          
                                             Milestone 13     

  15            Acceptance of service for    The date the     *insert* \$
                Phase 3 SUs                  University       
                                             accepts          
                                             Milestone 6.3.14 

  16            Acceptance of first service  180 days after   *insert* \$
                period for Phase 3 clusters  the date the     
                                             University       
                                             accepts          
                                             Milestone 15     

  17            Acceptance of second service 185 days after   *insert* \$
                period for Phase 3 clusters  the date the     
                                             University       
                                             accepts          
                                             Milestone 16     

  18            Acceptance of third service  180 days after   *insert* \$
                period for Phase 3 clusters  the date the     
                                             University       
                                             accepts          
                                             Milestone 17     

  19            Acceptance of fourth service 185 days after   *insert* \$
                period for Phase 3 clusters  the date the     
                                             University       
                                             accepts          
                                             Milestone 18     

  20            Acceptance of fifth service  180 days after   *insert* \$
                period for Phase 3 clusters  the date the     
                                             University       
                                             accepts          
                                             Milestone 19     

  21            Acceptance of final service  185 days after   *insert* \$
                period for Phase 3 clusters  the date the     
                                             University       
                                             accepts          
                                             Milestone 20     

  22            Acceptance of service for    The date the     *insert* \$
                Phase 4 SUs                  University       
                                             accepts          
                                             Milestone 6.3.20 

  23            Acceptance of first service  180 days after   *insert* \$
                period for Phase 4 clusters  the date the     
                                             University       
                                             accepts          
                                             Milestone 22     

  24            Acceptance of second service 185 days after   *insert* \$
                period for Phase 4 clusters  the date the     
                                             University       
                                             accepts          
                                             Milestone 23     

  25            Acceptance of third service  180 days after   *insert* \$
                period for Phase 4 clusters  the date the     
                                             University       
                                             accepts          
                                             Milestone 24     

  26            Acceptance of fourth service 185 days after   *insert* \$
                period for Phase 4 clusters  the date the     
                                             University       
                                             accepts          
                                             Milestone 25     

  27            Acceptance of fifth service  180 days after   *insert* \$
                period for Phase 4 clusters  the date the     
                                             University       
                                             accepts          
                                             Milestone 26     

  28            Acceptance of final service  185 days after   *insert* \$
                period for Phase 4 clusters  the date the     
                                             University       
                                             accepts          
                                             Milestone 27     

                **TOTAL**                                     *insert* \$
  ------------------------------------------------------------------------

> C. Offeror's proposed milestone payment schedule for options follows.

  ---------------------------------------------------------------------------------
  **Option   **Milestone**   **Option Milestone            **Due Date** **Payment
  No.**                      Description**                              Amount**
  ---------- --------------- ----------------------------- ------------ -----------
  1          6.3.6           Phase 1 Option SU Build       TBD          *insert* \$

             6.3.7           Phase 1 Option SU Delivery    TBD          *insert* \$
                             and Acceptance                             

             6.3.8           Phase 1 Option Cluster        11/07        *insert* \$
                             Integration                                

  2          6.3.15          Phase 3 Option SU Build       04/08        *insert* \$

             6.3.16          Phase 3 Option SU Delivery    04/08        *insert* \$
                             and Acceptance                             

             6.3.17          Phase 3 Option Cluster        05/08        *insert* \$
                             Integration                                

  3          29              Acceptance of service for     The date the *insert* \$
                             Phase 1 option SUs            University   
                                                           accepts      
                                                           Milestone    
                                                           6.3.8        

             30              Acceptance of first service   180 days     *insert* \$
                             period for Phase 1 option     after the    
                             clusters                      date the     
                                                           University   
                                                           accepts      
                                                           Milestone 29 

             31              Acceptance of second service  185 days     *insert* \$
                             period for Phase 1 option     after the    
                             clusters                      date the     
                                                           University   
                                                           accepts      
                                                           Milestone 30 

             32              Acceptance of third service   180 days     *insert* \$
                             period for Phase 1 option     after the    
                             clusters                      date the     
                                                           University   
                                                           accepts      
                                                           Milestone 31 

             33              Acceptance of fourth service  185 days     *insert* \$
                             period for Phase 1 option     after the    
                             clusters                      date the     
                                                           University   
                                                           accepts      
                                                           Milestone 32 

             34              Acceptance of fifth service   180 days     *insert* \$
                             period for Phase 1 option     after the    
                             clusters                      date the     
                                                           University   
                                                           accepts      
                                                           Milestone 33 

             35              Acceptance of final service   185 days     *insert* \$
                             period for Phase 1 option     after the    
                             clusters                      date the     
                                                           University   
                                                           accepts      
                                                           Milestone 34 

  4          36              Acceptance of service for     The date the *insert* \$
                             Phase 3 option SUs            University   
                                                           accepts      
                                                           Milestone    
                                                           6.3.17       

             37              Acceptance of first service   180 days     *insert* \$
                             period for Phase 3 option     after the    
                             clusters                      date the     
                                                           University   
                                                           accepts      
                                                           Milestone 36 

             38              Acceptance of second service  185 days     *insert* \$
                             period for Phase 3 option     after the    
                             clusters                      date the     
                                                           University   
                                                           accepts      
                                                           Milestone 37 

             39              Acceptance of third service   180 days     *insert* \$
                             period for Phase 3 option     after the    
                             clusters                      date the     
                                                           University   
                                                           accepts      
                                                           Milestone 38 

             40              Acceptance of fourth service  185 days     *insert* \$
                             period for Phase 3 option     after the    
                             clusters                      date the     
                                                           University   
                                                           accepts      
                                                           Milestone 39 

             41              Acceptance of fifth service   180 days     *insert* \$
                             period for Phase 3 option     after the    
                             clusters                      date the     
                                                           University   
                                                           accepts      
                                                           Milestone 40 

             42              Acceptance of final service   185 days     *insert* \$
                             period for Phase 3 option     after the    
                             clusters                      date the     
                                                           University   
                                                           accepts      
                                                           Milestone 41 

                             **TOTAL OPTION PRICES**                    *insert* \$
  ---------------------------------------------------------------------------------

**[SECTION 3 -- OFFEROR PAYMENT PROPOSAL FOR ALTERNATE
MILESTONES]{.underline}**

OFFEROR NAME: \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

> A. Offeror's proposed alternate milestone payment schedule for
> deliverables follows.

  ------------------------------------------------------------------------
  **Milestone   **Milestone Description**          **Due       **Payment
  No.**                                            Date**      Amount**
  ------------- ---------------------------------- ----------- -----------
  *insert #s*   *insert milestone descriptions*    *insert due *insert \$*
                                                   date*       

                                                               

                                                               
  ------------------------------------------------------------------------

> B. Offeror's proposed alternate milestone payment schedule for service
> (i.e., hardware and software maintenance and training) follows.

  ------------------------------------------------------------------------
  **Milestone   **Milestone Description**    **Completion     **Payment
  No.**                                      Date**           Amount**
  ------------- ---------------------------- ---------------- ------------
  *insert #s*   *insert milestone            *insert due      *insert \$*
                descriptions*                date*            

                                                              

                                                              
  ------------------------------------------------------------------------

> C. Offeror's proposed alternate milestone payment schedule for options
> follows.

  -----------------------------------------------------------------------
  **Option   **Option Milestone Description**     **Due       **Payment
  No.**                                           Date**      Amount**
  ---------- ------------------------------------ ----------- -----------
  *insert    *insert milestone descriptions*      *insert due *insert \$*
  #s*                                             date*       

  -----------------------------------------------------------------------

END.