**SECTION I**

**CONTRACT CLAUSES**

Application of FAR and DEAR Clauses is incorporated by reference as
explained in FAR 52.252-2. Subsequent changes to FAR and DEAR are not
applicable to this contract unless incorporated by Contract
Modification. Additional information required by certain clauses is
provided below.

+-----+-------------+----------------------------+-------------------+
| Cla | # FAR/DEA   | ## Title                   | Fill-In           |
| use | R Reference |                            | Information (See  |
| No. |             |                            | FAR 52.104(d)     |
+-----+-------------+----------------------------+-------------------+
|     |             |                            |                   |
+-----+-------------+----------------------------+-------------------+
| I.1 | FAR         | Definitions (DEC 2001) (As | None              |
|     | 52.202-1    | Modified by DEAR           |                   |
|     |             | DEFINITIONS (apr 2002)     |                   |
|     | DEAR        |                            |                   |
|     | 952.202-1   |                            |                   |
+-----+-------------+----------------------------+-------------------+
| I.2 | FAR         | Gratuities (APR 1984)      | None              |
|     | 52.203-3    |                            |                   |
+-----+-------------+----------------------------+-------------------+
| I.3 | FAR         | Covenant Against           | None              |
|     | 52.203-5    | Contingent Fees (APR 1984) |                   |
+-----+-------------+----------------------------+-------------------+
| I.4 | FAR         | RESTRICTIONS ON            | None              |
|     | 52.203-6    | SUBCONTRACTOR SALES TO THE |                   |
|     |             | GOVERNMENT (JUL 1995)      |                   |
+-----+-------------+----------------------------+-------------------+
| I.5 | FAR         | ANTI-KICKBACK PROCEDURES   | None              |
|     | 52.203-7    | (JUL 1995)                 |                   |
+-----+-------------+----------------------------+-------------------+
| I.6 | FAR         | CANCELLATION, RECISSION,   | None              |
|     | 52.203-8    | AND RECOVERY OF FUNDS FOR  |                   |
|     |             | ILLEGAL OR IMPROPER        |                   |
|     |             | ACTIVITY (jan 1997)        |                   |
+-----+-------------+----------------------------+-------------------+
| I.7 | FAR         | PRICE OR FEE ADJUSTMENT    | None              |
|     | 52.203-10   | FOR ILLEGAL OR IMPROPER    |                   |
|     |             | ACTIVITIY (JAN 1997)       |                   |
+-----+-------------+----------------------------+-------------------+
| I.8 | FAR         | LIMITATION ON PAYMENTS TO  | None              |
|     | 52.203-12   | INFLUENCE CERTAIN FEDERAL  |                   |
|     |             | TRANSACTIONS (JUN 2003)    |                   |
+-----+-------------+----------------------------+-------------------+
| I.9 | FAR         | APPROVAL OF CONTRACT (DEC  | DOE Procurement   |
|     | 52.204-1    | 1989)                      | Executive or      |
|     |             |                            | Designee          |
+-----+-------------+----------------------------+-------------------+
| I   | FAR         | PRINTED OR COPIED          | None              |
| .10 | 52.204-4    | DOUBLE-SIDED ON RECYCLED   |                   |
|     |             | PAPER (AUG 2000)           |                   |
+-----+-------------+----------------------------+-------------------+
| I   | FAR         | PROTECTING THE             | None              |
| .11 | 52.209-6    | GOVERNMENT'S INTEREST WHEN |                   |
|     |             | SUBCONTRACTING WITH        |                   |
|     |             | CONTRACTORS DEBARRED,      |                   |
|     |             | SUSPENDED, OR PROPOSED FOR |                   |
|     |             | DEBARMENT (JUL 1995)       |                   |
+-----+-------------+----------------------------+-------------------+
| I   | FAR         | MATERIAL REQUIREMENTS\     | None              |
| .12 | 52.211-5    | (aug 2000)                 |                   |
+-----+-------------+----------------------------+-------------------+
| I   | FAR         | ORDER OF PRECEDENCE --     | None              |
| .13 | 52.215-8    | UNIFORM CONTRACT FORMAT    |                   |
|     |             | (OCT 1997)                 |                   |
+-----+-------------+----------------------------+-------------------+
| I   | FAR         | UTILIZATION OF SMALL       | None              |
| .14 | 52.219-8    | BUSINESS CONCERNS (OCT     |                   |
|     |             | 2000)                      |                   |
+-----+-------------+----------------------------+-------------------+
| I   | FAR         | SMALL BUSINESS             | None              |
| .15 | 52.219-9    | SUBCONTRACTING PLAN (jan   |                   |
|     |             | 2002)                      |                   |
+-----+-------------+----------------------------+-------------------+

  ------ -------------- ----------------------------- --------------------
  I.16   FAR 52.219-16  lIQUIDATED                    None
                        DAMAGES-SUBCONTRACTING PLAN   
                        (JAN 1999)                    

  I.17   FAR 52.219-25  SMALL DISADVANTAGED BUSINESS  None
                        PARTICIPATION PROGRAM --      
                        DISADVANTAGED STATUS AND      
                        REPORTING (oct 1999)          

  I.18   FAR 52.222-1   NOTICE TO THE GOVERNMENT OF   None
                        LABOR DISPUTES (FEB 1997)     

  I.19   FAR 52.222-2   PAYMENT OF OVERTIME PREMIUM   OT Premium:
                        (JUL 1990)                    \$375,000

  I.20   FAR 52.222-3   CONVICT LABOR (JUN 2003)      None

  I.21   FAR 52.222-4   CONTRACT WORK HOURS AND       None
                        SAFETY STANDARDS ACT-OVERTIME 
                        COMPENSATION (SEP 2000)       

  I.22   FAR 52.222-6   DAVIS-BACON ACT (FEB 1995)    None

  I.23   FAR 52.222-7   WITHHOLDING OF FUNDS (FEB     None
                        1988)                         

  I.24   FAR 52.222-8   PAYROLLS AND BASIC RECORDS    None
                        (FEB 1988)                    

  I.25   FAR 52.222-9   APPRENTICES AND TRAINEES (FEB None
                        1988)                         

  I.26   FAR 52.222-10  COMPLIANCE WITH COPELAND ACT  None
                        REQUIREMENTS (FEB 1988)       

  I.27   FAR 52.222-11  SUBCONTRACTS (LABOR           None
                        STANDARDS) (FEB 1988)         

  I.28   FAR 52.222-12  CONTRACT                      None
                        TERMINATION-DEBARMENT (feb    
                        1988)                         

  I.29   FAR 52.222-13  COMPLIANCE WITH DAVIS-BACON   None
                        AND RELATED ACT REGULATIONS   
                        (FEB 1988)                    

  I.30   FAR 52.222-14  DISPUTES CONCERNING LABOR     None
                        STANDARDS (FEB 1988)          

  I.31   FAR 52.222-15  CERTIFICATION OF ELIGIBILITY  None
                        (FEB 1988)                    

  I.32   FAR 52.222-16  APPROVAL OF WAGE RATES (FEB   None
                        1988)                         

  I.33   FAR 52.222-20  WALSH-HEALEY PUBLIC CONTRACTS None
                        ACT (DEC 1996)                

  I.34   FAR 52.222-21  PROHIBITION OF SEGREGATED     None
                        FACILITIES (FEB 1999)         

  I.35   FAR 52.222-26  EQUAL OPPORTUNITY (Apr 2002)  None

  I.36   FAR 52.222-35  EQUAL OPPORTUNITY FOR SPECIAL None
                        DISABLED VETERANS, VETERANS   
                        OF THE VIETNAM ERA, AND OTHER 
                        ELIGIBLE VETERANS (DEC 2001)  
  ------ -------------- ----------------------------- --------------------

  ------ -------------- ----------------------------- --------------------
  I.37   FAR 52.222-36  AFFIRMATIVE ACTION FOR        None
                        WORKERS WITH DISABILITIES     
                        (jUN 1998)                    

  I.38   FAR 52.222-37  EMPLOYMENT REPORTS ON SPECIAL None
                        DISABLED VETERANS, VETERANS   
                        OF THE VIETNAM ERA, AND OTHER 
                        ELIGIBLE VETERANS (DEC 2001)  

  I.39   FAR 52.222-38  COMPLIANCE WITH VETERANS'     None
                        EMPLOYMENT REPORTING          
                        REQUIREMENTS (DEC 2001)       

  I.40   FAR 52.222-41  SERVICE CONTRACT ACT OF 1965, None
                        AS AMENDED (MAY 1989)         

  I.41   FAR 52.225-9   Buy american act --           Paragraph (b) (2):
                        construction Materials\       None
                        (JUN 2003)                    

  I.42   FAR 52.223-3   HAZARDOUS MATERIAL            As Required
                        IDENTIFICATION AND MATERIAL   
                        SAFETY DATA (JAN 1997)        
                        ALTERNATE I (JUL 1995)        

  I.43   FAR 52.223-5   POLLUTION PREVENTION AND      None
                        RIGHT-TO-KNOW INFORMATION     
                        ((AUG 2003)                   

  I.44   FAR 52.223-6   DRUG-FREE WORKPLACE (MAY      None
                        2001)                         

  I.45   FAR 52.223-10  WASTE REDUCTION PROGRAM (AUG  None
                        2000)                         

  I.46   FAR 52.223-11  ozone-depleting substances    None
                        (MAY 2001)                    

  I.47   FAR 52.223-12  REFRIGERATOR EQUIPMENT AND    None
                        AIR CONDITIONERS (MAY 1995)   

  I.48   FAR 52.223-14  TOXIC CHEMICAL RELEASE        None
                        REPORTING (AUG 2003)          

  I.49   FAR 52.224-1   PRIVACY ACT NOTIFICATION (APR None
                        1984)                         

  I.50   FAR 52.224-2   PRIVACY ACT (APR 1984)        None

  I.51   FAR 52.225-1   BUY AMERICAN ACT - SUPPLIES\  None
                        (JUN 2003)                    

  I.52   FAR 52.225-13  RESTRICTIONS ON CERTAIN       None
                        FOREIGN PURCHASES (DEC 2003)  

  I.53   FAR 52.226-1   UTILIZATION OF INDIAN         None
                        ORGANIZATIONS AND             
                        INDIAN-OWNED ECONOMIC         
                        ENTERPRISES (JUN 2000)        

  I.54   FAR 52.227-23  RIGHTS TO PROPOSAL DATA       (All of Volumes II
                        (TECHNICAL) (jUN 1987)        and III), (August 9,
                                                      2002)

  I.55   FAR 52.230-2   COST ACCOUNTING STANDARDS     None
                        (APR 1998)                    
  ------ -------------- ----------------------------- --------------------

  ------ -------------- -------------------------------- --------------------
  I.56   FAR 52.230-6   ADMINISTRATION OF COST           None
                        ACCOUNTING STANDARDS\            
                        (NOV 1999)                       

  I.57   FAR 52.232-17  INTEREST (JUN 1996)              None

  I.58   FAR 52.232.23  ASSIGNMENT OF CLAIMS (jAN 1986)  None

  I.59   FAR 52.233-1   DISPUTES (JUL 2002) ALTERNATE I  None
                        (DEC 1991)                       

  I.60   FAR 52.233-3   PROTEST AFTER AWARD (AUG 1996)   None
                        ALTERNATE I (JUN 1985)           

  I.61   FAR 52.237-3   CONTINUITY OF SERVICES (JAN      None
                        1991)                            

  I.62   FAR 52.242-1   NOTICE OF INTENT TO DISALLOW     None
                        COSTS (APR 1984)                 

  I.63   FAR 52.242-13  BANKRUPTCY (JUL 1995)            None

  I.64   FAR 52.244-5   COMPETITION IN SUBCONTRACTING    None
                        (DEC 1996)                       

  I.65   FAR 52.244-6   SUBCONTRACTS FOR COMMERCIAL      None
                        ITEMS (APR 2003)                 

  I.66   FAR 52.247-63  PREFERENCE FOR U.S.-FLAG AIR     None
                        CARRIERS (JUN 2003)              

  I.67   FAR 52.247-64  PREFERENCE FOR PRIVATELY OWNED   None
                        U.S.-FLAG COMMERCIAL VESSELS     
                        (apr 2003)                       

  I.68   FAR 52.249-6   TERMINATION (COST REIMBURSEMENT) [Clause Attached
                        (SEP 1996) (MODIFIED)            (full text)](#I68)

  I.69   FAR 52.249-14  EXCUSABLE DELAYS (APR 1984)      None

  I.70   FAR 52.251-1   GOVERNMENT SUPPLY SOURCES        [Clause Attached
                        (MODIFIED) (APR 1984)            (full text)](#I70)

  I.71   FAR 52.251-2   INTERAGENCY FLEET MANAGEMENT     Correct last
                        SYSTEM VEHICLES AND RELATED      citation to read "41
                        SERVICES (JAN 1991)              CFR 101-38."

  I.72   FAR 52.252-2   CLAUSES INCORPORATED BY          [Clause Attached
                        REFERENCE (FEB 1998)             (full text)](#I72)

  I.73   FAR 52.252-6   AUTHORIZED DEVIATIONS IN CLAUSES [Clause Attached
                        (APR 1984)                       (Full Text)](#I73)

  I.74   FAR 52.253-1   COMPUTER GENERATED FORMS (JAN    None
                        1991)                            

  I.75   DEAR           WHISTLEBLOWER PROTECTION FOR     None
         952.203-70     CONTRACTOR EMPLOYEES (DEC 2000)  

  I.76   DEAR 952.204-2 SECURITY (mAY 2002)              None

  I.77   DEAR           CLASSIFICATION/DECLASSIFICATON   None
         952.204-70     (SEP 1997)                       

  I.78   RESERVED                                        

  I.79   DEAR           PUBLIC AFFAIRS (DEC 2000)        None
         952.204-75                                      
  ------ -------------- -------------------------------- --------------------

+-----+-------------+----------------------------+-------------------+
| I   | DEAR        | ORGANIZATIONAL CONFLICTS   | Paragraph         |
| .80 | 952.209-72  | OF INTEREST (JUN 1997)     | (b)(1)(i) three   |
|     |             | ALERNATE I                 | (3) years. The    |
|     |             |                            | words "advisory   |
|     |             |                            | and assistance    |
|     |             |                            | services" used    |
|     |             |                            | throughout this   |
|     |             |                            | clause shall be   |
|     |             |                            | changed to        |
|     |             |                            | "management and   |
|     |             |                            | professional      |
|     |             |                            | support services" |
+-----+-------------+----------------------------+-------------------+
| I   | DEAR        | KEY PERSONNEL (DEC 2000)   | Section J --      |
| .81 | 952.215-70  |                            | Appendix G        |
+-----+-------------+----------------------------+-------------------+
| I   | DEAR        | ACQUISITION OF REAL        | None              |
| .82 | 952.217-70  | PROPERTY (APR 1984)        |                   |
+-----+-------------+----------------------------+-------------------+
| I   | DEAR        | PAPERWORK REDUCTION ACT    | None              |
| .83 | 952.224-70  | (APR 1984)                 |                   |
+-----+-------------+----------------------------+-------------------+
| I   | DEAR        | DISPLACED EMPLOYEE HIRING  | None              |
| .84 | 952.226-74  | PREFERENCE (JUN 1997)      |                   |
+-----+-------------+----------------------------+-------------------+
| I   | DEAR        | CONTRACTOR EMPLOYEE TRAVEL | None              |
| .85 | 952.251-70  | DISCOUNTS (DEC 2000)       |                   |
+-----+-------------+----------------------------+-------------------+
| I   | DEAR        | MANAGEMENT CONTROLS (DEC   | None              |
| .86 | 970.5203-1  | 2000)                      |                   |
+-----+-------------+----------------------------+-------------------+
| I   | DEAR        | PERFORMANCE IMPROVEMENT    | None              |
| .87 | 970.5203-2  | AND COLLABORATION (DEC     |                   |
|     |             | 2000)                      |                   |
+-----+-------------+----------------------------+-------------------+
| I   | DEAR        | CONTRACTOR'S ORGANIZATION  | [See Clause       |
| .88 | 970.5203-3  | (DEC 2000) (DEVIATION)     | Attached](#I88)   |
|     |             | \[use DEAR 970.5204-12     |                   |
|     |             | CONTRACTOR'S ORGANIZATION  |                   |
|     |             | (APR 1984)\]               |                   |
+-----+-------------+----------------------------+-------------------+
| I   | DEAR        | counterintelligence (dec   | None              |
| .89 | 970.5204-1  | 2000)                      |                   |
+-----+-------------+----------------------------+-------------------+
| I   | DEAR        | LAWS, REGULATIONS, AND     | None              |
| .90 | 970.5204-2  | DOE/SPRPMO DIRECTIVES (DEC |                   |
|     |             | 2000)                      |                   |
+-----+-------------+----------------------------+-------------------+
| I   | DEAR        | ACCESS TO AND OWNERSHIP OF | Contractor-owned  |
| .91 | 970.5204-3  | RECORDS (DEC 2000)         | records: (b):     |
|     |             |                            | Paragraphs (1)    |
|     |             |                            | through (4)       |
|     |             |                            | (Paragraph (5) is |
|     |             |                            | not applicable to |
|     |             |                            | this              |
|     |             |                            | solic             |
|     |             |                            | itation/contract) |
+-----+-------------+----------------------------+-------------------+
| I   | DEAR        | PRINTING (DEC 2000)        | None              |
| .92 | 970.5208-1  |                            |                   |
+-----+-------------+----------------------------+-------------------+
| I   | DEAR        | TOTAL AVAILABLE FEE: BASE  | Alternate III,    |
| .93 | 970.5215-1  | FEE AMOUNT AND PERFORMANCE | paragraph (f):    |
|     |             | FEE AMOUNT (DEC 2000),     |                   |
|     |             | Alternate I (DEC 2000) and | 10 calendar days  |
|     |             | alternate iii (dec 2000)   |                   |
+-----+-------------+----------------------------+-------------------+
| I   | DEAR        | MAKE OR BUY PLAN (DEC      | None              |
| .94 | 970.5215-2  | 2000)                      |                   |
+-----+-------------+----------------------------+-------------------+
| I   | DEAR        | CONDITIONAL PAYMENT OF     | [Clause Attached  |
| .95 | 970.5215-3  | FEE, PROFIT, AND OTHER     | (Full             |
|     |             | INCENTIVES -- FACILITY     | Text)](#i95)      |
|     |             | MANAGEMENT CONTRACTS (JAN  |                   |
|     |             | 2004), ALTERNATE II (JAN   |                   |
|     |             | 2004)                      |                   |
+-----+-------------+----------------------------+-------------------+
| I   | RESERVED    |                            |                   |
| .96 |             |                            |                   |
+-----+-------------+----------------------------+-------------------+
| I   | DEAR        | COLLECTIVE BARGAINING      | None              |
| .97 | 970.5222-1  | AGREEMENTS-MANAGEMENT AND  |                   |
|     |             | OPERATING CONTRACTS (DEC   |                   |
|     |             | 2000)                      |                   |
+-----+-------------+----------------------------+-------------------+
| I   | DEAR        | OVERTIME MANAGEMENT (DEC   | None              |
| .98 | 970.5222-2  | 2000)                      |                   |
+-----+-------------+----------------------------+-------------------+
| I   | DEAR        | INTEGRATION OF             | None              |
| .99 | 970.5223-1  | ENVIRONMENT, SAFETY AND    |                   |
|     |             | HEALTH INTO WORK PLANNING  |                   |
|     |             | AND EXECUTION (DEC 2000)   |                   |
+-----+-------------+----------------------------+-------------------+
| I.  | DEAR        | affirmative procurement    | None              |
| 100 | 970.5223-2  | program (mar 2003)         |                   |
+-----+-------------+----------------------------+-------------------+
| I.  | DEAR        | DIVERSITY PLAN (DEC 2000)  | None              |
| 101 | 970.5226-1  |                            |                   |
+-----+-------------+----------------------------+-------------------+
| I.  | DEAR        | COMMUNITY COMMITMENT (DEC  | None              |
| 102 | 970.5226-3  | 2000)                      |                   |
+-----+-------------+----------------------------+-------------------+
| I.  | DEAR        | RIGHTS IN                  | None              |
| 103 | 970.5227-1  | DATA---FACILITIES (DEC     |                   |
|     |             | 2000)                      |                   |
+-----+-------------+----------------------------+-------------------+
| I.  | DEAR        | AUTHORIZATION AND CONSENT  | None              |
| 104 | 970.5227-4  | (aug 2002)                 |                   |
+-----+-------------+----------------------------+-------------------+
| I.  | DEAR        | NOTICE AND ASSISTANCE      | None              |
| 105 | 970.5227-5  | REGARDING PATENT AND       |                   |
|     |             | COPYRIGHT INFRINGEMENT\    |                   |
|     |             | (AUG 2002)                 |                   |
+-----+-------------+----------------------------+-------------------+
| I.  | DEAR        | PATENT INDEMNITY           | None              |
| 106 | 970.5227-6  | SUBCONTRACTORS (DEC 2000)  |                   |
+-----+-------------+----------------------------+-------------------+
| I.  | DEAR        | REFUND OF ROYALTIES (aug   | None              |
| 107 | 970.5227-8  | 2002)                      |                   |
+-----+-------------+----------------------------+-------------------+
| I.  | DEAR        | PATENT RIGHTS - MANAGEMENT | None              |
| 108 | 970.5227-11 | AND OPERATING CONTRACTS,   |                   |
|     |             | FOR PROFIT CONTRACTOR,     |                   |
|     |             | NON-TECHNOLOGY TRANSFER    |                   |
|     |             | (DEC 2000)                 |                   |
+-----+-------------+----------------------------+-------------------+
| I.  | DEAR        | INSURANCE-LITIGATION AND   | None              |
| 109 | 970.5228-1  | CLAIMS (MAR 2002)          |                   |
+-----+-------------+----------------------------+-------------------+
| I.  | DEAR        | STATE AND LOCAL TAXES (dec | None              |
| 110 | 970.5229-1  | 2000)                      |                   |
+-----+-------------+----------------------------+-------------------+
| I.  | DEAR        | PREEXISTING CONDITIONS     | Insert in         |
| 111 | 970.5231-4  | (DEC 2000) ALTERNATE i     | paragraph (a)     |
|     |             | (DEC 2000)                 | "April 1, 2003"   |
|     |             |                            | "Strategic        |
|     |             |                            | Petroleum         |
|     |             |                            | Reserve"          |
|     |             |                            | "D                |
|     |             |                            | E-AC96-93PO18000" |
+-----+-------------+----------------------------+-------------------+
| I.  | DEAR        | REDUCTION OR SUSPENSION OF | None              |
| 112 | 970.5232-1  | ADVANCE, PARTIAL, OR       |                   |
|     |             | PROGRESS PAYMENTS (DEC     |                   |
|     |             | 2000)                      |                   |
+-----+-------------+----------------------------+-------------------+
| I.  | DEAR        | PAYMENTS AND ADVANCES (DEC | Insert in         |
| 113 | 970.5232-2  | 2000) ALTERNATE ii (DEC    | Paragraph (c)     |
|     |             | 2000), ALTERNATE III (DEC  |                   |
|     |             | 2000)                      | "Appendix C"      |
+-----+-------------+----------------------------+-------------------+
| I.  | DEAR        | ACCOUNTS, RECORDS, AND     | Insert in         |
| 114 | 970.5232-3  | INSPECTION (DEC 2000)      | Paragraph (b)     |
|     |             |                            | "I.91". Insert in |
|     |             |                            | Paragraph (d)     |
|     |             |                            | "I.91"            |
+-----+-------------+----------------------------+-------------------+
| I.  | DEAR        | OBLIGATION OF FUNDS (DEC   | Insert in         |
| 115 | 970.5232-4  | 2000)                      | Paragraph (a)     |
|     |             |                            | "Set forth in     |
|     |             |                            | Section B."       |
|     |             |                            | Insert in         |
|     |             |                            | Paragraph (c)     |
|     |             |                            | "90", "90".       |
+-----+-------------+----------------------------+-------------------+
| I.  | DEAR        | LIABILITY WITH RESPECT TO  | None              |
| 116 | 970.5232-5  | COST ACCOUNTING STANDARDS  |                   |
|     |             | (DEC 2000)                 |                   |
+-----+-------------+----------------------------+-------------------+
| I.  | DEAR        | WORK FOR OTHERS FUNDING    | None              |
| 117 | 970.5232-6  | AUTHORIZATIONS (DEC 2000)  |                   |
+-----+-------------+----------------------------+-------------------+

  ------- -------------- ----------------------------- --------------------
  I.118   DEAR           FINANCIAL MANAGEMENT SYSTEM   None
          970.5232-7     (DEC 2000)                    

  I.119   DEAR           INTEGRATED ACCOUNTING (DEC    None
          970.5232-8     2000)                         

  I.120   DEAR           GOVERNMENT FACILITY           None
          970.5236-1     SUBCONTRACT APPROVAL (DEC     
                         2000)                         

  I.121   DEAR           FACILITIES MANAGEMENT (DEC    None
          970.5237-2     2000)                         

  I.122   DEAR           PENALTIES FOR UNALLOWABLE     None
          970.5242-1     COSTS (DEC 2000)              

  I.123   DEAR           CHANGES (DEC 2000)            None
          970.5243-1                                   

  I.124   DEAR           CONTRACTOR PURCHASING SYSTEM  None
          970.5244-1     (DEC 2000)                    

  I.125   DEAR           PROPERTY (DEC 2000)           None
          970.5245-1                                   

  I.126   DEAR           DOE Motor vehicle fleet fuel  None
          970.5223-5     efficiency (Oct 2003)         
  ------- -------------- ----------------------------- --------------------

[]{#I68 .anchor}Clause I.68 FAR 52.249-6 - TERMINATION (COST
REIMBURSEMENT) (SEP 1996) (MODIFIED)

\(a\) The Government may terminate performance of work under this
contract in whole or, from time to time, in part, if-

> \(1\) The Contracting Officer determines that a termination is in the
> Government\'s interest; or

(2) The Contractor defaults in performing this contract and fails to
    cure the default within 10 days (unless extended by the Contracting
    Officer) after receiving a notice specifying the default.
    \"Default\" includes failure to make progress in the work so as to
    endanger performance.

    b.  The Contracting Officer shall terminate by delivering to the
        Contractor a Notice of Termination specifying whether
        termination is for default of the Contractor or for convenience
        of the Government, the extent of termination, and the effective
        date. If, after termination for default, it is determined that
        the Contractor was not in default or that the Contractor\'s
        failure to perform or to make progress in performance is due to
        causes beyond the control and without the fault or negligence of
        the Contractor as set forth in the Excusable Delays clause, the
        rights and obligations of the parties will be the same as if the
        termination was for the convenience of the Government.

\(c\) After receipt of a Notice of Termination, and except as directed
by the Contracting Officer, the Contractor shall immediately proceed
with the following obligations, regardless of any delay in determining
or adjusting any amounts due under this clause:

> \(1\) Stop work as specified in the notice.
>
> \(2\) Place no further subcontracts or orders (referred to as
> subcontracts in this clause), except as necessary to complete the
> continued portion of the contract.
>
> \(3\) Terminate all subcontracts to the extent they relate to the work
> terminated.
>
> \(4\) Assign to the Government, as directed by the Contracting
> Officer, all right, title, and interest of the Contractor under the
> subcontracts terminated, in which case the Government shall have the
> right to settle or to pay any termination settlement proposal arising
> out of those terminations.
>
> \(5\) With approval or ratification to the extent required by the
> Contracting Officer, settle all outstanding liabilities and
> termination settlement proposals arising from the termination of
> subcontracts, the cost of which would be reimbursable in whole or in
> part, under this contract; approval or ratification will be final for
> purposes of this clause.
>
> \(6\) Transfer title (if not already transferred) and, as directed by
> the Contracting Officer, deliver to the Government-
>
> \(i\) The fabricated or unfabricated parts, work in process, completed
> work, supplies, and other material produced or acquired for the work
> terminated;
>
> \(ii\) The completed or partially completed plans, drawings,
> information, and other property that, if the contract had been
> completed, would be required to be furnished to the Government; and
>
> \(iii\) The jigs, dies, fixtures, and other special tools and tooling
> acquired or manufactured for this contract, the cost of which the
> Contractor has been or will be reimbursed under this contract.
>
> \(7\) Complete performance of the work not terminated.
>
> \(8\) Take any action that may be necessary, or that the Contracting
> Officer may direct, for the protection and preservation of the
> property related to this contract that is in the possession of the
> Contractor and in which the Government has or may acquire an interest.
>
> \(9\) Use its best efforts to sell, as directed or authorized by the
> Contracting Officer, any property of the types referred to in
> paragraph (c)(6) of this clause; provided, however, that the
> Contractor (i) is not required to extend credit to any purchaser and
> (ii) may acquire the property under the conditions prescribed by, and
> at prices approved by, the Contracting Officer. The proceeds of any
> transfer or disposition will be applied to reduce any payments to be
> made by the Government under this contract, credited to the price or
> cost of the work, or paid in any other manner directed by the
> Contracting Officer.

\(d\) The Contractor shall submit complete termination inventory
schedules no later than 120 days from the effective date of termination,
unless extended in writing by the Contracting Officer upon written
request of the Contractor within this 120-day period.

\(e\) After expiration of the plant clearance period as defined in
Subpart 45.6 of the Federal Acquisition Regulation, the Contractor may
submit to the Contracting Officer a list, certified as to quantity and
quality, of termination inventory not previously disposed of, excluding
items authorized for disposition by the Contracting Officer. The
Contractor may request the Government to remove those items or enter
into an agreement for their storage. Within 15 days, the Government will
accept the items and remove them or enter into a storage agreement. The
Contracting Officer may verify the list upon removal of the items, or if
stored, within 45 days from submission of the list, and shall correct
the list, as necessary, before final settlement.

\(f\) After termination, the Contractor shall submit a final termination
settlement proposal to the Contracting Officer in the form and with the
certification prescribed by the Contracting Officer. The Contractor
shall submit the proposal promptly, but no later than 1 year from the
effective date of termination, unless extended in writing by the
Contracting Officer upon written request of the Contractor within this
1-year period. However, if the Contracting Officer determines that the
facts justify it, a termination settlement proposal may be received and
acted on after 1 year or any extension. If the Contractor fails to
submit the proposal within the time allowed, the Contracting Officer may
determine, on the basis of information available, the amount, if any,
due the Contractor because of the termination and shall pay the amount
determined.

\(g\) Subject to paragraph (f) of this clause, the Contractor and the
Contracting Officer may agree on the whole or any part of the amount to
be paid (including an allowance for fee) because of the termination. The
contract shall be amended, and the Contractor paid the agreed amount.

> \(h\) If the Contractor and the Contracting Officer fail to agree in
> whole or in part on the amount of costs and/or fee to be paid because
> of the termination of work, the Contracting Officer shall determine,
> on the basis of information available, the amount, if any, due the
> Contractor, and shall pay that amount, which shall include the
> following:
>
> \(1\) All costs reimbursable under this contract, not previously paid,
> for the performance of this contract before the effective date of the
> termination, and those costs that may continue for a reasonable time
> with the approval of or as directed by the Contracting Officer;
> however, the Contractor shall discontinue those costs as rapidly as
> practicable.
>
> \(2\) The cost of settling and paying termination settlement proposals
> under terminated subcontracts that are properly chargeable to the
> terminated portion of the contract if not included in paragraph (h)(1)
> of this clause.
>
> \(3\) The reasonable costs of settlement of the work terminated,
> including-
>
> \(i\) Accounting, legal, clerical, and other expenses reasonably
> necessary for the preparation of termination settlement proposals and
> supporting data;
>
> \(ii\) The termination and settlement of subcontracts (excluding the
> amounts of such settlements); and
>
> \(iii\) Storage, transportation, and other costs incurred, reasonably
> necessary for the preservation, protection, or disposition of the
> termination inventory. If the termination is for default, no amounts
> for the preparation of the Contractor\'s termination settlement
> proposal may be included.
>
> \(4\) A portion of the fee payable under the contract, determined as
> follows:
>
> \(i\) If the contract is terminated for the convenience of the
> Government, the settlement shall include a percentage of the fee equal
> to the percentage of completion of work contemplated under the
> contract, but excluding subcontract effort included in
> subcontractors\' termination proposals, less previous payments for
> fee.
>
> \(ii\) If the contract is terminated for default, the total fee
> payable shall be such proportionate part of the fee as the total
> number of articles (or amount of services) delivered to and accepted
> by the Government is to the total number of articles (or amount of
> services) of a like kind required by the contract.
>
> \(5\) If the settlement includes only fee, it will be determined under
> paragraph (h)(4) of this clause.

\(i\) The cost principles and procedures in Part 31 of the Federal
Acquisition Regulation as supplemented in subpart 970.31 of the
Department of Energy Regulation, in effect on the date of this contract,
shall govern all costs claimed, agreed to, or determined under this
clause.

\(j\) The Contractor shall have the right of appeal, under the Disputes
clause, from any determination made by the Contracting Officer under
paragraph (f), (h), or (l) of this clause, except that if the Contractor
failed to submit the termination settlement proposal within the time
provided in paragraph (f) and failed to request a time extension, there
is no right of appeal. If the Contracting Officer has made a
determination of the amount due under paragraph (f), (h) or (l) of this
clause, the Government shall pay the Contractor-

> \(1\) The amount determined by the Contracting Officer if there is no
> right of appeal or if no timely appeal has been taken; or
>
> \(2\) The amount finally determined on an appeal.
>
> \(k\) In arriving at the amount due the Contractor under this clause,
> there shall be deducted-
>
> \(1\) All unliquidated advance or other payments to the Contractor,
> under the terminated portion of this contract;
>
> \(2\) Any claim which the Government has against the Contractor under
> this contract; and
>
> \(3\) The agreed price for, or the proceeds of sale of materials,
> supplies, or other things acquired by the Contractor or sold under
> this clause and not recovered by or credited to the Government.

\(l\) The Contractor and Contracting Officer must agree to any equitable
adjustment in fee for the continued portion of the contract when there
is a partial termination. The Contracting Officer shall amend the
contract to reflect the agreement.

> (m)(1) The Government may, under the terms and conditions it
> prescribes, make partial payments and payments against costs incurred
> by the Contractor for the terminated portion of the contract, if the
> Contracting Officer believes the total of these payments will not
> exceed the amount to which the Contractor will be entitled.
>
> \(2\) If the total payments exceed the amount finally determined to be
> due, the Contractor shall repay the excess to the Government upon
> demand, together with interest computed at the rate established by the
> Secretary of the Treasury under 50 U.S.C. App. 1215(b)(2). Interest
> shall be computed for the period from the date the excess payment is
> received by the Contractor to the date the excess is repaid. Interest
> shall not be charged on any excess payment due to a reduction in the
> Contractor\'s termination settlement proposal because of retention or
> other disposition of termination inventory until 10 days after the
> date of the retention or disposition, or a later date determined by
> the Contracting Officer because of the circumstances.

\(n\) The provisions of this clause relating to fee are inapplicable if
this contract does not include a fee.

[]{#I70 .anchor}Clause I.70 FAR 52.251-1 - GOVERNMENT SUPPLY SOURCES
(MODIFIED) (APR 1984)

> The Contracting Officer may issue the Contractor an authorization to
> use Government supply sources in the performance of this contract.
> Title to all property acquired by the Contractor under such an
> authorization shall vest in the Government unless otherwise specified
> in the contract. Such property shall not be considered to be
> \"Government-furnished property,\" as distinguished from \"Government
> property.\" The provisions of the clause entitled \"Property,\" shall
> apply to all property acquired under such authorization.

[]{#I72 .anchor}Clause I.72 FAR 52.252-2 - CLAUSES INCORPORATED BY
REFERENCE (FEB 1998)

This contract incorporates one or more clauses by reference, with the
same force and effect as if they were given in full text. Upon request,
the Contracting Officer will make their full text available. Also, the
full text of a clause may be accessed electronically at this/these
address(es):

<http://www.arnet.gov/far/> (Federal Acquisition Regulations)

[Acquisition
Regulation](http://professionals.pr.doe.gov/ma5/MA-5Web.nsf/Procurement/Acquisition+Regulation?OpenDocument)
(Department of Energy Acquisition Regulations)

[]{#I73 .anchor}Clause I.73 FAR 52.252-6 - AUTHORIZED DEVIATIONS IN
CLAUSES (APR 1984)

> \(a\) The use in this solicitation or contract of any Federal
> Acquisition Regulation (48 CFR Chapter 1) clause with an authorized
> deviation is indicated by the addition of \"(DEVIATION)\" after the
> date of the clause.
>
> \(b\) The use in this solicitation or contract of any Department of
> Energy Regulation (48 CFR Part 9) clause with an authorized deviation
> is indicated by the addition of \"(DEVIATION)\" after the name of the
> regulation.

[]{#I88 .anchor}Clause I.88 DEAR 970.5203-3- CONTRACTOR'S ORGANIZATION
(DEC 2000) (DEVIATION)\
\[Use DEAR 970.5204-12 CONTRACTOR'S ORGANIZATION (APR 1984)\]

(a) Organization chart. As promptly as possible after the execution of
    this Contract, the Contractor shall furnish to the Contracting
    Officer a chart showing the names, duties, and organization of key
    personnel to be employed in connection with the work, and shall
    furnish from time to time supplementary information reflecting
    changes therein.

(b) Supervisory representative of Contractor. Unless otherwise directed
    by the Contracting Officer, a competent full-time resident
    supervisory representative of the Contractor satisfactory to the
    Contracting Officer shall be in charge of the work at the site at
    all times. This also applies to off-site work.

\(c\) Control of employees. The contractor shall be responsible for
maintaining satisfactory standards of employee competency, conduct, and
integrity and shall be responsible for taking such disciplinary action
with respect to his employees as may be necessary. In the event the
Contractor fails to remove any employee from the contract work whom DOE
deems incompetent, careless, or insubordinate, or whose continued
employment on the work is deemed by DOE to be contrary to the public
interest, the Government reserves the right to require the Contractor to
remove the employee.

Clause I.95 DEAR 970.5215-3 - CONDITIONAL PAYMENT OF FEE, PROFIT, AND
OTHER\
INCENTIVES --- FACILITY MANAGEMENT CONTRACTS (JAN 2004)

> []{#i95 .anchor}\
> (a) General. (1) The payment of earned fee, fixed fee, profit, or
> share of cost savings under this contract is dependent upon:\
> \
> (i) The contractor\'s or contractor employees\' compliance with the
> terms and conditions of this contract relating to environment, safety
> and health (ES&H), which includes worker safety and health (WS&H),
> including performance under an approved Integrated Safety Management
> System (ISMS); and\
> \
> (ii) The contractor\'s or contractor employees\' compliance with the
> terms and conditions of this contract relating to the safeguarding of
> Restricted Data and other classified information.\
> \
> (2) The ES&H performance requirements of this contract are set forth
> in its ES&H terms and conditions, including the DOE approved
> contractor ISMS or similar document. Financial incentives for timely
> mission accomplishment or cost effectiveness shall never compromise or
> impede full and effective implementation of the ISMS and full ES&H
> compliance.\
> \
> (3) The performance requirements of this contract relating to the
> safeguarding of Restricted Data and other classified information are
> set forth in the clauses of this contract entitled, \"Security\" and
> \"Laws, Regulations, and DOE Directives,\" as well as in other terms
> and conditions.\
> (4) If the contractor does not meet the performance requirements of
> this contract relating to ES&H or to the safeguarding of Restricted
> Data and other classified information during any performance
> evaluation period established under the contract pursuant to the
> clause of this contract entitled, \`\`Total Available Fee: Base Fee
> Amount and Performance Fee Amount,\'\' otherwise earned fee, fixed
> fee, profit or share of cost savings may be unilaterally reduced by
> the contracting officer.\
> \
> (b) Reduction Amount. (1) The amount of earned fee, fixed fee, profit,
> or share of cost savings that may be unilaterally reduced will be
> determined by the severity of the performance failure pursuant to the
> degrees specified in paragraphs (c) and (d) of this clause.\
> \
> (2) If a reduction of earned fee, fixed fee, profit, or share of cost
> savings is warranted, unless mitigating factors apply, such reduction
> shall not be less than 26% nor greater than 100% of the amount of
> earned fee, fixed fee, profit, or the contractor\'s share of cost
> savings for a first degree performance failure, not less than 11% nor
> greater than 25% for a second degree performance failure, and up to
> 10% for a third degree performance failure.\
> \
> (3) In determining the amount of the reduction and the applicability
> of mitigating factors, the contracting officer must consider the
> contractor\'s overall performance in meeting the ES&H or security
> requirements of the contract. Such consideration must include
> performance against any site specific performance
> criteria/requirements that provide additional definition, guidance for
> the amount of reduction, or guidance for the applicability of
> mitigating factors. In all cases, the contracting officer must
> consider mitigating factors that may warrant a reduction below the
> applicable range (see 48 CFR 970.1504-1-2). The mitigating factors
> include, but are not limited to, the following ((v), (vi), (vii) and
> (viii) apply to ES&H only).\
> \
> (i) Degree of control the contractor had over the event or incident.\
> \
> (ii) Efforts the contractor had made to anticipate and mitigate the
> possibility of the event in advance.\
> \
> (iii) Contractor self-identification and response to the event to
> mitigate impacts and recurrence.\
> \
> (iv) General status (trend and absolute performance) of: ES&H and
> compliance in related areas;\
> or of safeguarding Restricted Data and other classified information
> and compliance in related areas.\
> \
> (v) Contractor demonstration to the contracting officer\'s
> satisfaction that the principles of industrial ES&H standards are
> routinely practiced (e.g., Voluntary Protection Program, ISO 14000).\
> \
> (vi) Event caused by \"Good Samaritan\" act by the contractor (e.g.,
> offsite emergency response).\
> \
> (vii) Contractor demonstration that a performance measurement system
> is routinely used to improve and maintain ES&H performance (including
> effective resource allocation) and to support DOE corporate
> decision-making (e.g., policy, ES&H programs).\
> \
> (viii) Contractor demonstration that an Operating Experience and
> Feedback Program is functioning that demonstrably affects continuous
> improvement in ES&H by use of lessons-learned and best practices
> inter- and intra-DOE sites.\
> \
> (4)(i) The amount of fee, fixed fee, profit, or share of cost savings
> that is otherwise earned by a contractor during an evaluation period
> may be reduced in accordance with this clause if it is determined that
> a performance failure warranting a reduction under this clause occurs
> within the evaluation period.\
> \
> (ii) The amount of reduction under this clause, in combination with
> any reduction made under any other clause in the contract, shall not
> exceed the amount of fee, fixed fee, profit, or the contractor\'s
> share of cost savings that is otherwise earned during the evaluation
> period.\
> \
> (iii) For the purposes of this clause, earned fee, fixed fee, profit,
> or share of cost savings for the evaluation period shall mean the
> amount determined by the contracting officer or fee determination
> official as otherwise payable based on the contractor\'s performance
> during the evaluation period. Where the contract provides for
> financial incentives that extend beyond a single evaluation period,
> this amount shall also include: any provisional amounts determined
> otherwise payable in the evaluation period; and, if provisional
> payments are not provided for, the allocable amount of any incentive
> determined otherwise payable at the conclusion of a subsequent
> evaluation period. The allocable amount shall be the total amount of
> the earned incentive divided by the number of evaluation periods over
> which it was earned.\
> \
> (iv) The Government will effect the reduction as soon as practicable
> after the end of the evaluation period in which the performance
> failure occurs. If the Government is not aware of the failure, it will
> effect the reduction as soon as practical after becoming aware. For
> any portion of the reduction requiring an allocation the Government
> will effect the reduction at the end of the evaluation period in which
> it determines the total amount earned under the incentive. If at any
> time a reduction causes the sum of the payments the contractor has
> received for fee, fixed fee, profit, or share of cost savings to
> exceed the sum of fee, fixed fee, profit, or share of cost savings the
> contractor has earned (provisionally or otherwise), the contractor
> shall immediately return the excess to the Government. (What the
> contractor \"has earned\" reflects any reduction made under this or
> any other clause of the contract.)\
> \
> (v) At the end of the contract:\
> \
> (A) The Government will pay the contractor the amount by which the sum
> of fee, fixed fee, profit, or share of cost savings the contractor has
> earned exceeds the sum of the payments the contractor has received;
> or\
> \
> (B) The contractor shall return to the Government the amount by which
> the sum of the payments the contractor has received exceeds the sum of
> fee, fixed fee, profit, or share of cost savings the contractor has
> earned. (What the contractor \"has earned\'\' reflects any reduction
> made under this or any other clause of the contract.)\
> \
> (c) Environment, Safety and Health (ES&H). Performance failures occur
> if the contractor does not comply with the contract\'s ES&H terms and
> conditions, including the DOE approved contractor ISMS. The degrees of
> performance failure under which reductions of earned or fixed fee,
> profit, or share of cost savings will be determined are:\
> \
> (1) First Degree: Performance failures that are most adverse to ES&H.
> Failure to develop and obtain required DOE approval of an ISMS is
> considered first degree. The Government will perform necessary review
> of the ISMS in a timely manner and will not unreasonably withhold
> approval of the contractor\'s ISMS. The following performance failures
> or performance failures of similar import will be considered first
> degree.\
> \
> (i) Type A accident (defined in DOE Order 225.1A).\
> \
> (ii) Two Second Degree performance failures during an evaluation
> period.\
> \
> (2) Second Degree: Performance failures that are significantly adverse
> to ES&H. They include failures to comply with an approved ISMS that
> result in an actual injury, exposure, or exceedence that occurred or
> nearly occurred but had minor practical long-term health consequences.
> They also include breakdowns of the Safety Management System. The
> following performance failures or performance failures of similar
> import will be considered second degree:\
> (i) Type B accident (defined in DOE Order 225.1A).\
> \
> (ii) Non-compliance with an approved ISMS that results in a near miss
> of a Type A or B accident. A near miss is a situation in which an
> inappropriate action occurs, or a necessary action is omitted, but
> does not result in an adverse effect.\
> \
> (iii) Failure to mitigate or notify DOE of an imminent danger
> situation after discovery, where such notification is a requirement of
> the contract.\
> \
> (3) Third Degree: Performance failures that reflect a lack of focus on
> improving ES&H. They include failures to comply with an approved ISMS
> that result in potential breakdown of the System. The following
> performance failures or performance failures of similar import will be
> considered third degree:\
> \
> (i) Failure to implement effective corrective actions to address
> deficiencies/non-compliances documented through: external (e.g.,
> Federal) oversight and/or reported per DOE Order 232.1A requirements;
> or internal oversight of DOE Order 440.1A requirements.\
> \
> (ii) Multiple similar non-compliances identified by external (e.g.,
> Federal) oversight that in aggregate indicate a significant
> programmatic breakdown.\
> \
> (iii) Non-compliances that either have, or may have, significant
> negative impacts to the worker, the public, or the environment or that
> indicate a significant programmatic breakdown.\
> \
> (iv) Failure to notify DOE upon discovery of events or conditions
> where notification is required by the terms and conditions of the
> contract.\
> \
> (d) Safeguarding Restricted Data and Other Classified Information.
> Performance failures occur if the contractor does not comply with the
> terms and conditions of this contract relating to the safeguarding of
> Restricted Data and other classified information. The degrees of
> performance failure under which reductions of fee, profit, or share of
> cost savings will be determined are as follows:\
> \
> (1) First Degree: Performance failures that have been determined, in
> accordance with applicable law, DOE regulation, or directive, to have
> resulted in, or that can reasonably be expected to result in,
> exceptionally grave damage to the national security. The following are
> examples of performance failures or performance failures of similar
> import that will be considered first degree:\
> \
> (i) Non-compliance with applicable laws, regulations, and DOE
> directives actually resulting in, or creating a risk of, loss,
> compromise, or unauthorized disclosure of Top Secret Restricted Data
> or other information classified as Top Secret, any classification
> level of information in a Special Access Program (SAP), information
> identified as sensitive compartmented information (SCI), or high risk
> nuclear weapons-related data.\
> \
> (ii) Contractor actions that result in a breakdown of the safeguards
> and security management system that can reasonably be expected to
> result in the loss, compromise, or unauthorized disclosure of Top
> Secret Restricted Data, or other information classified as Top Secret,
> any classification level of information in a SAP, information
> identified as SCI, or high risk nuclear weapons-related data.
>
> \(iii\) Failure to promptly report the loss, compromise, or
> unauthorized disclosure of Top Secret Restricted Data, or other
> information classified as Top Secret, any classification level of
> information in a SAP, information identified as SCI, or high risk
> nuclear weapons-related data.\
> (iv) Failure to timely implement corrective actions stemming from the
> loss, compromise, or unauthorized disclosure of Top Secret Restricted
> Data or other information classified as Top Secret, any classification
> level of information in a SAP, information identified as SCI, or high
> risk nuclear weapons-related data.\
> \
> (2) [Second Degree]{.underline}: Performance failures that have been
> determined, in accordance with applicable law, DOE regulation, or
> directive, to have actually resulted in, or that can reasonably be
> expected to result in, serious damage to the national security. The
> following are examples of performance failures or performance failures
> of similar import that will be considered second degree:\
> \
> (i) Non-compliance with applicable laws, regulations, and DOE
> directives actually resulting in, or creating risk of, loss,
> compromise, or unauthorized disclosure of Secret Restricted Data or
> other information classified as Secret.\
> \
> (ii) Contractor actions that result in a breakdown of the safeguards
> and security management system that can reasonably be expected to
> result in the loss, compromise, or unauthorized disclosure of Secret
> Restricted Data, or other information classified as Secret.\
> \
> (iii) Failure to promptly report the loss, compromise, or unauthorized
> disclosure of Restricted Data or other classified information
> regardless of classification (except for information covered by
> paragraph (d)(1)(iii) of this clause).\
> \
> (iv) Failure to timely implement corrective actions stemming from the
> loss, compromise, or unauthorized disclosure of Secret Restricted Data
> or other classified information classified as Secret.\
> \
> (3) [Third Degree]{.underline}: Performance failures that have been
> determined, in accordance with applicable law, regulation, or DOE
> directive, to have actually resulted in, or that can reasonably be
> expected to result in, undue risk to the common defense and security.
> In addition, this category includes performance failures that result
> from a lack of contractor management and/or employee attention to the
> proper safeguarding of Restricted Data and other classified
> information. These performance failures may be indicators of future,
> more severe performance failures and/or conditions, and if identified
> and corrected early would prevent serious incidents. The following are
> examples of performance failures or performance failures of similar
> import that will be considered third degree:\
> \
> (i) Non-compliance with applicable laws, regulations, and DOE
> directives actually resulting in, or creating risk of, loss,
> compromise, or unauthorized disclosure of Restricted Data or other
> information classified as Confidential.\
> \
> (ii) Failure to promptly report alleged or suspected violations of
> laws, regulations, or directives pertaining to the safeguarding of
> Restricted Data or other classified information.\
> \
> (iii) Failure to identify or timely execute corrective actions to
> mitigate or eliminate identified vulnerabilities and reduce residual
> risk relating to the protection of Restricted Data or other classified
> information in accordance with the contractor\'s Safeguards and
> Security Plan or other security plan, as applicable.\
> \
> (iv) Contractor actions that result in performance failures which unto
> themselves pose minor risk, but when viewed in the aggregate indicate
> degradation in the integrity of the contractor\'s safeguards and
> security management system relating to the protection of Restricted
> Data and other classified information.
>
> \(e\) Minimum requirements for specified level of performance. (1) At
> a minimum the contractor must perform the following:\
> \
> (i) The requirements with specific incentives which do not require the
> achievement of cost efficiencies in order to be performed at the level
> of performance set forth in the Statement of Work, Work Authorization
> Directive, or similar document unless an otherwise minimum level of
> performance has been established in the specific incentive;\
> \
> (ii) All of the performance requirements directly related to
> requirements specifically incentivized which do not require the
> achievement of cost efficiencies in order to be performed at a level
> of performance such that the overall performance of these related
> requirements is at an acceptable level; and\
> \
> (iii) All other requirements at a level of performance such that the
> total performance of the contract is not jeopardized.\
> \
> (2) The evaluation of the Contractor\'s achievement of the level of
> performance shall be unilaterally determined by the Government. To the
> extent that the Contractor fails to achieve the minimum performance
> levels specified in the Statement of Work, Work Authorization
> Directive, or similar document, during the performance evaluation
> period, the DOE Operations/Field Office Manager, or designee, may
> reduce any otherwise earned fee, fixed fee, profit, or shared net
> savings for the performance evaluation period. Such reduction shall
> not result in the total of earned fee, fixed fee, profit, or shared
> net savings being less than 25% of the total available fee amount.
> Such 25% shall include base fee, if any.\
> \
> (f) Minimum requirements for cost performance. (1) Requirements
> incentivized by other than cost incentives must be performed within
> their specified cost constraint and must not adversely impact the
> costs of performing unrelated activities.\
> \
> (2) The performance of requirements with a specific cost incentive
> must not adversely impact the costs of performing unrelated
> requirements.\
> \
> (3) The contractor\'s performance within the stipulated cost
> performance levels for the performance evaluation period shall be
> determined by the Government. To the extent the contractor fails to
> achieve the stipulated cost performance levels, the DOE
> Operations/Field Office Manager, or designee, may reduce in whole or
> in part any otherwise earned fee, fixed fee, profit, or shared net
> savings for the performance evaluation period. Such reduction shall
> not result in the total of earned fee, fixed fee, profit or shared net
> savings being less than 25% of the total available fee amount. Such
> 25% shall include base fee, if any.