**KSC 52.223-120 [MONETARY AWARD FOR SAFETY CONSCIOUS PERFORMANCE AND
REPORTING PROCEDURES FOR CLOSE CALLS AND MISHAPS]{.underline} (JUL
2004)**

[Pursuant to NFS 1852.223-70, Safety and Health]{.underline}:

\(a\) Safety is the freedom from those conditions that can cause death,
injury, occupational illness, damage to or loss of equipment or
property, or damage to the environment. NASA's safety priority is to
protect: the public, astronauts and pilots, the NASA workforce
(including contractor employees working on NASA contracts), and
high-value equipment and property.

\(b\) The Contractor shall take all reasonable safety and occupational
health measures in performing this contract. The Contractor shall comply
with all Federal, State, and local laws applicable to safety and
occupational health and with the safety and occupational health
standards, specifications, reporting requirements, and any other
relevant requirements of this contract.

> []{.mark}

[Kennedy Space Center Voluntary Protection Program (VPP)]{.underline}

Kennedy Space Center has implemented a comprehensive safety and health
management system, and has demonstrated its commitment to providing and
maintaining a safe workplace by successfully completing a rigorous
evaluation process to achieve recognition by the Occupational Health and
Safety Administration (OSHA) as a "Voluntary Protection Program (VPP)
Star Worksite." The VPP program promotes effective worksite-based safety
and health, encourages employers and employees to reduce the number of
occupational safety and health hazards at their places of employment,
establishes cooperative relationships between management, labor, and
OSHA, and serves to augment limited OSHA resources.

[Monetary Award for Safety Conscious Performance]{.underline}

In order to encourage contractors to share NASA's commitment to safety,
preclude the need for unnecessary OSHA investigations, and avoid the
expense associated with conducting mishap and close call investigations,
a monetary award for demonstrated safety-conscious performance is being
provided under this contract. The total amount being made available is
0.50% (0.005, or ½ of one percent) of the base bid amount, not to exceed
\$15,000. The computed amount is shown as a separate line item under the
"Items Awarded" article of the contract. Deductions to the total award
amount will be made as described below for each safety violation. The
remaining balance will be paid with the final contract payment. The
total amount will be earned upon completion of work with no documented
accidents, incidents, or other serious safety violations as listed
below. Note that certain safety violations that result in imminent
danger to personnel or have a high potential for serious injury or loss
of life will result in loss of the total amount. The entire amount will
also be forfeited if the contractor fails to report any close calls,
incidents or accidents as required by this contract.

The government's intent in making this safety performance award
available is not to provide a slight increase in the contractor's profit
margin, but rather to reward safety conscious performance by individual
employees. Contractors are therefore strongly encouraged to share the
award at the end of the contract as a means of motivating prime and
subcontractor employees to continually exercise the best safety
practices available to them.

Safety violations listed in the following table shall result in
unilateral deductions from the baseline bonus pool in the amounts shown.
Deductive amounts are not negotiable.

+------------------------+-------------------+-----------+------------+
| **[                    | **[Regulatory     | **[First  | **[Repeat  |
| Hazard/]{.underline}** | Referen           | Violatio  | Violat     |
|                        | ce]{.underline}** | n\*]{.und | ion\*]{.un |
| **[Vi                  |                   | erline}** | derline}** |
| olation]{.underline}** |                   |           |            |
+------------------------+-------------------+-----------+------------+
| Personal Protective    | 29 CFR 1926.95    | \$250     | \$500      |
|                        |                   |           |            |
| Equipment              |                   |           |            |
+------------------------+-------------------+-----------+------------+
| Electrical/Equipment   | 29 CFR 1926       | \$250     | \$500      |
|                        | Subpart K         |           |            |
+------------------------+-------------------+-----------+------------+
| [KSC Emergency         | N/A               | \$500     | \$1000     |
| P                      |                   |           |            |
| rocedures]{.underline} |                   |           |            |
|                        |                   |           |            |
| (JHB 2000,             |                   |           |            |
| Comprehensive          |                   |           |            |
| Emergency              |                   |           |            |
|                        |                   |           |            |
| Management Plan;       |                   |           |            |
|                        |                   |           |            |
| KHB 1710.2, Kennedy    |                   |           |            |
|                        |                   |           |            |
| Space Center Safety    |                   |           |            |
|                        |                   |           |            |
| Practices Handbook;    |                   |           |            |
|                        |                   |           |            |
| QA-UG-0001, Employee   |                   |           |            |
|                        |                   |           |            |
| Safety & Health Guide) |                   |           |            |
+------------------------+-------------------+-----------+------------+
| Traffic Safety         | FDOT/             | \$500     | \$1000     |
|                        |                   |           |            |
|                        | MUTCD             |           |            |
+------------------------+-------------------+-----------+------------+
| Traffic Safety         | "                 | 100%      | n/a        |
|                        |                   |           |            |
| **(Imminent danger)**  |                   |           |            |
+------------------------+-------------------+-----------+------------+
| Lockout/ Tagout        | 29 CFR 1926       | 50%       | 100%       |
|                        | Subpart K         |           |            |
|                        |                   |           |            |
|                        | (1926.417)        |           |            |
|                        |                   |           |            |
|                        | 29 CFR 1910       |           |            |
|                        | Subpart J         |           |            |
|                        |                   |           |            |
|                        | (1910.147)        |           |            |
+------------------------+-------------------+-----------+------------+
| Lockout/ Tagout        | "                 | 100%      | n/a        |
|                        |                   |           |            |
| **(Imminent danger)**  |                   |           |            |
+------------------------+-------------------+-----------+------------+
| Scaffolding            | 29 CFR 1926       | 50%       | 100%       |
|                        | Subpart L         |           |            |
|                        |                   |           |            |
|                        | (1926.450)        |           |            |
+------------------------+-------------------+-----------+------------+
| Scaffolding            | "                 | 100%      | n/a        |
|                        |                   |           |            |
| **(Imminent danger)**  |                   |           |            |
+------------------------+-------------------+-----------+------------+
| Fall Protection        | 29 CFR 1926       | 50%       | 100%       |
|                        | Subpart M         |           |            |
|                        | (1926.500)        |           |            |
+------------------------+-------------------+-----------+------------+
| Fall Protection        | "                 | 100%      | n/a        |
|                        |                   |           |            |
| **(Imminent danger)**  |                   |           |            |
+------------------------+-------------------+-----------+------------+
| Excavation             | 29 CFR 1926       | 50%       | 100%       |
|                        | Subpart P         |           |            |
|                        | (1926.650)        |           |            |
+------------------------+-------------------+-----------+------------+
| Excavation             | "                 | 100%      | n/a        |
|                        |                   |           |            |
| **(Imminent danger)**  |                   |           |            |
+------------------------+-------------------+-----------+------------+

\* Note -- Percentages apply against balance at the time of the safety
violation.

The NASA Safety Office representative will make the final determination
regarding type and severity of any documented safety violation.
Adjustments to the Safety Bonus will be executed by the Contracting
Officer based upon this determination, with concurrence from the
Contracting Officer's Technical Representative.

Any adjustment made to the available safety bonus pool as outlined above
will not limit the Government's right to pursue other remedies available
under this contract.

[Reporting Procedures for Close Calls and Mishaps]{.underline}

(Also reference NFS 1852.223-70, Safety and Health)

The contractor shall submit a NASA Mishap Report (NASA Form 1627) to the
Contracting Officer to document close calls or mishaps and associated
corrective actions. In addition, the Contracting Officer will issue a
"Report of Safety and Health Noncompliance" to document safety
violations under this contract. The Contractor shall use the form
provided to communicate actions taken to correct or mitigate
safety/health non-conformance at the job-site, as well as any corrective
actions taken to prevent recurrence. This report must be posted on the
job site until all corrective actions have been completed.

In the event the non-compliance poses imminent danger, the Contracting
Officer may invoke the stop-work order clause in this contract until
such time as the immediate hazard has been mitigated. If the Contractor
fails or refuses to institute prompt corrective action, the Contracting
Officer may invoke the stop-work order clause or any other remedy
available to the Government in the event of such failure or refusal.

The Contractor (or subcontractor or supplier) shall insert the
"Reporting Procedures for Close Calls and Mishaps" section
[of]{.underline} this clause, including this paragraph and any
applicable Schedule provisions and clauses, with appropriate changes of
designations of the parties, in all solicitations and subcontracts of
every tier, when the work will be conducted completely or partly on
premises owned or controlled by the Government.