EXHIBIT 10.2

UNCLASSIFIED

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AWARD/CONTRACT

1. THIS CONTRACT IS A RATED ORDER UNDER DPAS (15 CFR 350)

RATING

PAGE OF PAGES

        1              23   

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2. CONTRACT (Proc. Inst. Ident.) No.
NRO000-03-C-0139

3. EFFECTIVE DATE
04/01/2003

4. REQUISITION/PURCHASE REQUEST/PROJECT NO.

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5. ISSUED BY

CODE 

 

6. ADMINISTERED BY

CODE  

 

 

 

 

 

 

 

NRO

 

 

<SEE BLOCK 5>

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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7. NAME AND ADDRESS OF CONTRACTOR           (No., street, city,
                                        
                                       county, State and Zip Code)

 

8. DELIVERY
    o FOB ORIGIN           x OTHER (See below)

IRVINE SENSORS CORPORATION

 

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3001 REDHILL AVE

 

9. DISCOUNT FOR PROMPT PAYMENT

BLDG 3-108
COSTA MESA CA 92626

 

     See Section G

 

 

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10. SUBMIT INVOICES

ITEM

 

 

(4 copies unless otherwise specified)

 

 

 

TO THE ADDRESS

      See Section G

CODE

FACILITY CODE

 

SHOWN IN:

 

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11. SHIP TO, MARK FOR
<SEE SECTION F>

CODE 

 

12. PAYMENT WILL BE MADE BY

CODE  

 

 

 

 

     See Section G

 

 

 

 

 

 

 

 

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13. AUTHORITY FOR USING OTHER THAN FULL AND OPEN COMPETITION:
o  10 USC 2304(c) (     )      o 41 USC 253(c) (            )

 

14. ACCOUNTING AND APPROPRIATION DATA

     See Section G

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15A. ITEM NO.

15B. SUPPLIES/SERVICES

15C. QUANTITY

15D.UNIT

15E. UNIT PRICE

15F. AMOUNT

 

 

 

 

 

 

 

 

 

 

 

 

 

   See Section B

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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15G. TOTAL AMOUNT OF CONTRACT       

$1,055,430

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16. TABLE OF CONTENTS

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x

SEC.

DESCRIPTION

PAGE(S)

x

SEC.

DESCRIPTION

PAGE(S)

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PART I - THE SCHEDULE

PART II - CONTRACT CLAUSES

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x

A

SOLICITATION/CONTRACT FORM

1

x

I

CONTRACT CLAUSES

12-22

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x

B

SUPPLIES OR SERVICES AND PRICES/ COSTS

2-3

PART III - LIST OF DOCUMENTS, EXHIBITS AND OTHER ATTACH.

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x

C

DESCRIPTION/SPECS./WORK STATEMENT

4

x

J

LIST OF ATTACHMENTS

23

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x

D

PACKAGING AND MARKING

5

PART IV - REPRESENTATIONS AND INSTRUCTIONS

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x

E

INSPECTION AND ACCEPTANCE

6

o

K

REPRESENTATIONS, CERTIFICATIONS AND OTHER STATEMENTS OF OFFERORS

 

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x

F

DELIVERIES OR PERFORMANCE

7

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x

G

CONTRACT ADMINISTRATION DATA

8-10

o

L

INSTRS., CONDS., AND NOTICES TO OFFERORS

 

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x

H

SPECIAL CONTRACT REQUIREMENTS

11

o

M

EVALUATION FACTORS FOR AWARD

 

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CONTRACTING OFFICER WILL COMPLETE ITEM 17 OR 18 AS APPLICABLE

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17. o CONTRACTOR’S NEGOTIATED AGREEMENT.          (Contractor is required to
sign this document and return _________ copies to issuing office.) Contractor
agrees to furnish and deliver all items or perform all the services set forth or
otherwise identified above and on any continuation sheets for the consideration
stated herein. The rights and obligations of the parties to this contract shall
be subject to and governed by the following documents: (a) this award/contract,
(b) the solicitation, if any, and (c) such provisions, representations,
certifications, and specifications, as are attached or incorporated by reference
herein.
(Attachments are listed herein.)

 

18. o AWARD (Contractor is not required to sign this document.)     Your offer
on Solicitation Number ________________________________________________, 
including the additions or changes made by you which additions or changes are
set forth in full above, is hereby accepted as to the items listed above and on
any continuation sheets. This award consummates the contract which consists of
the following documents: (a) the Government’s solicitation and your offer, and
(b) this award/contract. No further contractual document is necessary.

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19A. NAME AND TITLE OF SIGNER          (Type or print)

 

20A. NAME OF CONTRACTING OFFICER

John C. Carson

 

Nancy Lindsay

President

 

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19B. NAME OF CONTRACTOR

19C. DATE SIGNED

 

20B. UNITED STATES OF AMERICA

20C. DATE SIGNED

 

 

 

 

 

BY

/s/ [ILLEGIBLE]

4-4-03

 

BY

/s/ [ILLEGIBLE]

4-4-03

 

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(Signature of person authorized to sign)

 

 

 

(Signature of person authorized to sign)

 

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NSN 7540-01-152-8069

26-107

STANDARD FORM 26 (REV. 4.85)

PREVIOUS EDITION UNUSABLE

 

Prescribed by GSA
FAR (48 CFR) 53.214(a)

UNCLASSIFIED

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UNCLASSIFIED

PART I – THE SCHEDULE

SECTION B - SUPPLIES OR SERVICES AND PRICES/COSTS

B-1     TYPE OF CONTRACT AND TOTAL CONTRACT VALUE

The Contractor shall, in accordance with the terms and conditions set forth
herein, furnish the necessary qualified personnel, services, travel, facilities
and materials (except those specifically designated to be provided by the
Government) and do all things necessary and incidental to complete the
contractual effort in accordance with the Statement of Work incorporated by
Section C - Description/Specifications/Statement of Work hereto.

The total current contract value is $1,055,430.

CLIN 0001, as identified in this contract and in the total estimated amounts set
forth below are CR/CPFF, as described under the Federal Acquisition Regulations
(FAR) 16,306.

Description: Design, fabricate, and test tile for large area mosaic Focal Plane
Array

Estimated Cost

 

$

963,230

 

FCCOM

 

$

10,102

 

Total Estimated Cost

 

$

973,332

 

Fixed Fee

 

$

82,098

 

Total CPFF

 

$

1,055,430

 

The total value for the Contract Line Item 0001, and any modifications thereto
are shown below.

 

 

Estimated Cost

 

FCCOM

 

Total Estimated Cost

 

Fixed Fee

 

Total CPFF

 

 

 

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P00000

 

$

963,230

 

$

10,102

 

$

973,332

 

$

82,098

 

$

1,055,430

 

CLIN 0002 (Option), as identified in this contract and in the total estimated
amounts set forth below are CR/CPFF, as described under the Federal Acquisition
Regulations (FAR) 16.306.

Description: Design, Fabricate, Assemble, Test and Evaluate a large-area,
four-side buttable, fully integrated mosaic FPA.

Estimated Cost

 

$

1,667,165

 

FCCOM

 

$

13,543

 

Total Estimated Cost

 

$

1,680,708

 

Fixed Fee

 

$

120,750

 

Total CPFF

 

$

1,801,458

 

The total value for the Contract Line Item 0002 (Option), and any modifications
thereto are shown below.

 

 

Estimated Cost

 

FCCOM

 

Total Estimated Cost

 

Fixed Fee

 

Total CPFF

 

 

 

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

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P00000

 

$

1,667,165

 

$

13,543

 

$

1,680,708

 

$

120,750

 

$

1,801,458

 

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CLIN 0003 (Option), as identified in this contract and in the total estimated
amounts set forth below are CR/CPFF, as described under the Federal Acquisition
Regulations (FAR) 16.306.

Description: Radiation Tolerance Assessment of four-side buttable tiles as well
as the assembled mosaic FPA

Estimated Cost

 

$

271,407

 

FCCOM

 

$

3,385

 

Total Estimated Cost

 

$

274,792

 

Fixed Fee

 

$

26,047

 

Total CPFF

 

$

300,839

 

The total value for the Contract Line Item 0003 (Option), and any modifications
thereto are shown below.

 

 

Estimated Cost

 

FCCOM

 

Total Estimated Cost

 

Fixed Fee

 

Total CPFF

 

 

 

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P00000

 

$

271,407

 

$

3,385

 

$

274,792

 

$

26,047

 

$

300,839

 

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UNCLASSIFIED

SECTION C - DESCRIPTION/SPECS./WORK STATEMENT

C-1     Statement of Work

The Government’s Statement of Work entitled Large Area Mosaic Focal Plan Array
dated 28 Feb 2003 is incorporated and made part of this contract as Attachment 1
to Part III of Section J hereto.

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SECTION D - PACKAGING AND MARKING

D-1     Packaging and Marking

Packaging and marking of deliverable items called for hereunder shall be in
accordance with:

          (1) the Contractors best commercial practice and

          (2) any delineated requirements in the Statement of Work required to
insure safe arrival at the destination.

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SECTION E - INSPECTION AND ACCEPTANCE

E-1     N52.252-002 Clauses Incorporated by Reference (MAR 2001)

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. The full text of each clause may
also be accessed electronically at this address: http://arc.westfields.net/nam.

Number

 

Title

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52.246-8

 

Inspection of Research and Development — Cost-Reimbursement (MAY 2001)

52.246-9

 

Inspection of Research and Development (Short Form) (APR 1984)

N52.246-002

 

Inspection And Acceptance Test Procedures (MAR 1996)

N52.246-006

 

Requirement For Data Acceptance (MAR 1996)

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SECTION F - DELIVERIES OR PERFORMANCE

F-1     N52.252-002 Clauses Incorporated by Reference (MAR 2001)

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. The full text of each clause may
also be accessed electronically at this address: http://arc.westfields.net/nam.

Number

 

Title

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52.242-15 Alternate 1

 

Stop-Work Order (AUG 1989) (Alternate I) (APR 1984)

F-2     N52.211-006 Contractor Performance And Delivery (JUN 2002)

(a) Period of Performance: The period of performance of this contract shall be:

CLIN

 

Start Date

 

Completion Date

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0001

 

04/01/2003

 

03/31/2004

0002

 

04/01/2004

 

01/31/2005

0003

 

07/01/2004

 

03/31/2005

The principal place of performance under this contract shall be the facility
located at:

(b) Delivery: In the event an item under this contract is delivered directly to
the COTR, the contractor shall obtain a signed receipt from the COTR, and retain
this document for audit purposes.

(c) When the contractor encounters difficulty in meeting performance
requirements, or anticipates difficulty in complying with the contract delivery
schedule or date, they shall immediately notify the Contracting Officer in
writing giving pertinent details; provided, however, that this data shall be
informational only in character and that this provision shall not be construed
as a waiver by the Government of any delivery schedule for any rights or
remedies provided by law or under this contract.

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SECTION G - CONTRACT ADMINISTRATION DATA

G-1     GOVERNMENT POINTS OF CONTACT

Title

 

Name

 

Phone Number

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COTR

 

Dr. Frank Spagnolo

 

(703) 808-2605

CO

 

Nancy Lindsay

 

(703) 808-6641

G-2     PURCHASE REQUEST NUMBER AND ACCOUNTING AND APPROPRIATION DATA

Contract
Doc

 

CLIN

 

RCA#

 

RCA
ACTNG
#

 

BLI

 

FY

 

BOC

 

Dollars Obligated

 

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P00000

 

 

0001

 

 

AST-02-0526-0000

 

 

1

 

 

LDT93

 

 

03

 

 

2550

 

$

400,000

 

P00000

 

 

0001

 

 

AST-03-0412-0000

 

 

1

 

 

LDT93

 

 

03

 

 

2550

 

$

475,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Subtotal:

 

$

875,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total:

 

$

875,000

 

G-3     N52.252-002 Clauses Incorporated by Reference (MAR 2001)

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. The full text of each clause may
also be accessed electronically at this address: http://arc.westfields.net/nam.

Number

 

Title

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N52.204-004

 

Contract Clause Numbering (MAR 1996)

G-4     N52.232-007 Instructions for Requesting Contract Payment (JUN 2002)

(a)  All requests for invoice and contract financing payments (other than
progress payments) shall be prepared on a Standard Form 1034, Public Voucher for
Purchases and Services Other Than Personal, Contractors may request payment for
commercial contracts using either the SF 1034 or a commercial invoice that
contains all the information required by FAR 52.212-4(g). Submit vouchers and
invoices to the following billing office:

Name and address of Contracting Officer or designee:
National Reconnaissance Office, 14675 Lee Road, Chantilly VA 20151-1715
Nancy Lindsay 14B16B

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UNCLASSIFIED

Invoices may be faxed to: Unclassified: (703) 808-1623
The required mode of delivery is:  fax

(b)  For cost reimbursable contracts, those contractors authorized by DCAA to
use Direct Billing procedures must submit only the first, final, and any earned
award fee payment vouchers to the billing office listed above. Unless otherwise
directed by the contracting officer, submit all other vouchers, including those
for or including provisional award fee, directly to the paying office specified
below. Attach a copy of the DCAA Direct Billing authorization letter to the
first voucher submitted to the paying office for each contract, and enter
“Direct Billing Authorized” in the signature block of all vouchers submitted via
Direct Billing.

For FFP-LOE contracts and task orders, those contractors authorized by DCAA to
use Direct Billing procedures must submit the first, final, and any earned award
fee vouchers to the billing office listed above. Unless otherwise directed by
the contracting officer, submit all other vouchers, including those for or
including provisional award fee, directly to the paying office specified below.
Attach a copy of the DCAA authorization letter to the first voucher submitted
under Direct Billing procedures for each contract, and enter “Direct Billing
Authorized” in the signature block of each voucher submitted under these
procedures. Submit a separate Monthly Status Report to the contracting officer
for use by the Government in documenting receipt and acceptance of the goods and
services billed. This report should correspond to the period of performance
indicated in the monthly voucher, and contain, as a minimum, the contract
number; description and quantity of the supplies delivered and/or services
performed; and the date the supplies were delivered and/or services performed.
If receipt and acceptance of any goods or services billed cannot be verified,
the contracting officer will suspend further payments until the issue is
resolved.

Mode of Delivery and Address: FAX: Unclassified (703) 808-2438

The Contracting Officer Does Not require copies of vouchers submitted under
Direct Billing procedures

(c)  Requests for progress payments shall be prepared on a Standard Form 1443,
Contractor’s Request for Progress Payment, and submitted to the following
billing office:

Name and address of Contracting Officer or designee:
Not applicable to this effort.
Not applicable

Invoices may be faxed to: Not applicable to this effort.
The required mode of delivery is:   Not applicable to this effort

(d)  The payment periods designated in the FAR Prompt Payment clause(s)
contained in this contractual document will begin on the date a proper voucher
or request for payment (SF 1034 or SF 1443) is received in the billing office
listed above. Vouchers must be prepared in accordance with NAM Appendix N65,
Contract Payments, with all charges segregated by CLIN. The following additional
voucher preparation instructions and requirements for supporting documentation
also apply:

None

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(e) The government billing office or payment office will notify the contractor
of any apparent error, defect, or impropriety in a voucher or request for
payment within seven days of receipt by the billing office. Inquiries regarding
vouchers or requests for payment submitted to the billing office should be
directed to the government contracting officer. Inquiries regarding vouchers or
requests for payment submitted directly to ROM/FIN/AP at (703) 808-4100
(unclassified) or 850-4100 (secure).

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SECTION H - SPECIAL CONTRACT REQUIREMENTS

H-1     Reserved

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PART II - CONTRACT CLAUSES

SECTION I - CONTRACT CLAUSES

I-1     N52.252-002 Clauses Incorporated by Reference (MAR 2001)

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. The full text of each clause may
also be accessed electronically at this address: http://arc.westfields.net/nam.

Number

 

Title

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52.202-1

 

Definitions (DEC 2001)

52.203-3

 

Gratuities (APR 1984)

52.203-5

 

Covenant Against Contingent Fees (APR 1984)

52.203-6

 

Restrictions on Subcontractor Sales to the Government (JUL 1995)

52.203-7

 

Anti-Kickback Procedures (JUL 1995)

52.203-8

 

Cancellation, Rescission, and Recovery of Funds for Illegal or Improper Activity
(JAN 1997)

52.203-10

 

Price or Fee Adjustment for Illegal or Improper Activity (JAN 1997)

52.203-12

 

Limitation on Payments to Influence Certain Federal Transactions (JUN 1997)

52.204-4

 

Printed or Copied Double-Sided on Recycled Paper (AUG 2000)

52.209-6

 

Protecting the Government’s Interest when Subcontracting with Contractors
Debarred, Suspended, or Proposed for Debarment (JUL 1995)

52.215-2

 

Audit and Records — Negotiation (JUN 1999)

52.215-8

 

Order of Precedence — Uniform Contract Format (OCT 1997)

52.215-12

 

Subcontractor Cost or Pricing Data (OCT 1997)

52.216-7

 

Allowable Cost and Payment (DEC 2002)

52.216-8

 

Fixed Fee (MAR 1997)

52.222-2

 

Payment for Overtime Premiums (JUL 1990)

52.222-21

 

Prohibition of Segregated Facilities (FEB 1999)

52.222-35

 

Equal Opportunity for Special Disabled Veterans, Veterans of the Vietnam Era,
and Other Eligible Veterans (DEC 2001)

52.222-37

 

Employment Reports on Special Disabled Veterans, Veterans of the Vietnam Era,
and Other Eligible Veterans (DEC 2001)

52.223-6

 

Drug-Free Workplace (MAY 2001)

52.225-13

 

Restrictions on Certain Foreign Purchases (JUL 2000)

52.227-1

 

Authorization and Consent (JUL 1995)

52.227-2

 

Notice and Assistance Regarding Patent and Copyright Infringement (AUG 1996)

52.227-14

 

Rights in Data — General (JUN 1987)

52.230-2

 

Cost Accounting Standards (APR 1998)

52.230-6

 

Administration of Cost Accounting Standards (NOV 1999)

52.232-22

 

Limitation of Funds (APR 1984)

52.232-23

 

Assignment of Claims (JAN 1986)

52.233-3

 

Protest after Award (AUG 1996)

52.242-1

 

Notice of Intent to Disallow Costs (APR 1984)

52.242-13

 

Bankruptcy (JUL 1995)

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Number

 

Title

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52.245-1

 

Property Records (APR 1984)

52.249-14

 

Excusable Delays (APR 1984)

52.253-1

 

Computer Generated Forms (JAN 1991)

N52.203-003

 

Prohibition on Persons Convicted of Fraud or Other Defense-Contract-Related
Felonies (DEC 1999)(DFARS 252.203-7001)

N52.209-001

 

Acquisition From Subcontractors Subject To On-Site Inspection Under The
Intermediate-Range Nuclear Forces (INF) Treaty (MAR 1996)

N52.219-001

 

Utilization Of Small Business Concerns (MAR 2001)

N52.223-006

 

Contractor Compliance with Environmental Safety and Health, and System Safety
Requirements (OCT 1997)

N52.227-001

 

Non-Estoppel (MAR 1996) (DFARS 252.227-7000)

N52.233-002

 

Disputes (MAY 1996)

N52.233-004

 

Request for Dispute Resolution (SEP 2000)

N52.242-002

 

Contractor Performance Assessment Review (MAR 2002)

N52.244-001

 

Subcontracts (Educational Institutions) (SEP 1996)

N52.245-005

 

Prohibition on Contractor Acquisition of Personal Property for Use by Government
Employees (JUN 2001)

I-2     52.227 - 11 Patent Rights — Retention by the Contractor (Short Form)
(JUN 1997)

(a) Definitions.

          (1) “Invention” means any invention or discovery which is or may be
patentable or otherwise protectable under title 35 of the United States Code, or
any novel variety of plant which is or may be protected under the Plant Variety
Protection Act (7 U.S.C. 2321, et seq.)

          (2) “Made” when used in relation to any invention means the conception
or first actual reduction to practice of such invention.

          (3) “Nonprofit organization” means a university or other institution
of higher education or an organization of the type described in section
501(c)(3) of the Internal Revenue Code of 1954 (26 U.S.C. 501(c)) and exempt
from taxation under section 501(a) of the Internal Revenue Code (26 U.S.C.
501(a)) or any nonprofit scientific or educational organization qualified under
a state nonprofit organization statute.

          (4) “Practical application” means to manufacture, in the case of a
composition of product; to practice, in the case of a process or method, or to
operate, in the case of a machine or system; and, in each case, under such
conditions as to establish that the invention is being utilized and that is
benefits are, to the extent permitted by law or Government regulations,
available to the public on reasonable terms.

          (5) “Small business firm” means a small business concern as defined at
section 2 of Pub. L. 85-536 (15 U.S.C. 632) and implementing regulations of the
Administrator of the Small Business Administration. For the

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UNCLASSIFIED

purpose of this clause, the size standards for small business concerns involved
in Government procurement and subcontracting at 13 CFR 121.3-8 and 13 CFR
121.3-12, respectively, will be used.

          (6) “Subject invention” means any invention of the contractor
conceived or first actually reduced to practice in the performance of work under
this contract, provided that in the case of a variety of plant, the date of
determination (as defined in section 41(d) of the Plant Variety Protection Act,
7 U.S.C. 2401(d)) must also occur during the period of contract performance.

(b) Allocation of principal rights. The Contractor may retain the entire right,
title, and interest throughout the world to each subject invention subject to
the provisions of this clause and 35 U.S.C. 203. With respect to any subject
invention in which the Contractor retains title, the Federal Government shall
have a nonexclusive, nontransferable, irrevocable, paid-up license to practice
or have practiced for or on behalf of the United States the subject invention
throughout the world.

(c) Invention disclosure, election of title, and filing of patent application by
Contractor.

          (1) The Contractor will disclose each subject invention to the Federal
agency within 2 months after the inventor discloses it in writing to Contractor
personnel responsible for patent matters. The disclosure to the agency shall be
in the form of a written report and shall identify the contract under which the
invention was made and the inventor(s). It shall be sufficiently complete in
technical detail to convey a clear understanding to the extent known at the time
of the disclosure, of the nature, purpose, operation, and the physical,
chemical, biological or electrical characteristics of the invention. The
disclosure shall also identify any publication, on sale or public use of the
invention and whether a manuscript describing the invention has been submitted
for publication and, if so, whether it has been accepted for publication at the
time of disclosure. In addition, after disclosure to the agency, the Contractor
will promptly notify the agency of the acceptance of any manuscript describing
the invention for publication or of any on sale or public use planned by the
Contractor.

          (2) The Contractor will elect in writing whether or not to retain
title to any such invention by notifying the Federal agency within 2 years of
disclosure to the Federal agency. However, in any case where publication, on
sale or public use has initiated the 1-year statutory period wherein valid
patent protection can still be obtained in the United States, the period for
election of title may be shortened by the agency to a date that is no more than
60 days prior to the end of the statutory period.

          (3) The Contractor will file its initial patent application on a
subject invention to which it elects to retain title within 1 year after
election of title or, if earlier, prior to the end of any statutory period
wherein valid patent protection can be obtained in the United States after a
publication, on sale, or public use. The Contractor will file patent
applications in additional countries or international patent offices within
either 10 months of the corresponding initial patent application or 6 months
from the date permission is granted by the Commissioner of Patents and
Trademarks to file foreign patent applications where such filing has been
prohibited by a Secrecy Order.

          (4) Requests for extension of the time for disclosure election, and
filing under subparagraphs (c)(l), (2), and (3) of this clause may, at the
discretion of the agency, be granted.

(d) Conditions when the Government may obtain title. The Contractor will convey
to the Federal agency, upon written request, title to any subject invention—

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          (1) If the Contractor fails to disclose or elect title to the subject
invention within the times specified in paragraph (c) of this clause, or elects
not to retain title; provided, that the agency may only request title within 60
days after learning of the failure of the Contractor to disclose or elect within
the specified times.

          (2) In those countries in which the Contractor fails to file patent
applications within the times specified in paragraph (c) of this clause;
provided, however, that if the Contractor has filed a patent application in a
country after the times specified in paragraph (c) of this clause, but prior to
its receipt of the written request of the Federal agency, the Contractor shall
continue to retain title in that country.

          (3) In any country in which the Contractor decides not to continue the
prosecution of any application for, to pay the maintenance fees on, or defend in
reexamination or opposition proceeding on, a patent on a subject invention.

(e) Minimum rights to Contractor and protection of the Contractor right to file.

          (1) The Contractor will retain a nonexclusive royalty-free license
throughout the world in each subject invention to which the Government obtains
title, except if the Contractor fails to disclose the invention within the times
specified in paragraph (c) of this clause. The Contractor’s license extends to
its domestic subsidiary and affiliates, if any, within the corporate structure
of which the Contractor is a party and includes the right to grant sublicenses
of the same scope to the extent the Contractor was legally obligated to do so at
the time the contract was awarded. The license is transferable only with the
approval of the Federal agency, except when transferred to the successor of that
part of the Contractor’s business to which the invention pertains.

          (2) The Contractor’s domestic license may be revoked or modified by
the funding Federal agency to the extent necessary to achieve expeditious
practical application of subject invention pursuant to an application for an
exclusive license submitted in accordance with applicable provisions at 37 CFR
Part 404 and agency licensing regulations (if any). This license will not be
revoked in that field of use or the geographical areas in which the Contractor
has achieved practical application and continues to make the benefits of the
invention reasonably accessible to the public. The license in any foreign
country may be revoked or modified at the discretion of the funding Federal
agency to the extent the Contractor, its licensees, or the domestic subsidiaries
or affiliates have failed to achieve practical application in that foreign
country.

          (3) Before revocation or modification of the license, the funding
Federal agency will furnish the Contractor a written notice of its intention to
revoke or modify the license, and the Contractor will be allowed 30 days (or
such other time as may be authorized by the funding Federal agency for good
cause shown by the Contractor) after the notice to show cause why the license
should not be revoked or modified. The Contractor has the right to appeal, in
accordance with applicable regulations in 37 CFR Part 404 and agency
regulations, if any, concerning the licensing of Government-owned inventions,
any decision concerning the revocation or modification of the license.

(f) Contractor action to protect the Government’s interest.

          (1) The Contractor agrees to execute or to have executed and promptly
deliver to the Federal agency all instruments necessary to (i) establish or
confirm the rights the Government has throughout the world in those subject
inventions to which the Contractor elects to retain title, and (ii) convey title
to the Federal agency when requested under paragraph (d) of this clause and to
enable the Government to obtain patent protection throughout the world in that
subject invention.

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          (2) The Contractor agrees to require, by written agreement, its
employees, other than clerical and nontechnical employees, to disclose promptly
in writing to personnel identified as responsible for the administration of
patent matters and in a format suggested by the Contractor each subject
invention made under contract in order that the Contractor can comply with the
disclosure provisions of paragraph (c) of this clause, and to execute all papers
necessary to file patent applications on subject inventions and to establish the
Government’s rights in the subject inventions. This disclosure format should
require, as a minimum, the information required by subparagraph (c)(1) of this
clause. The Contractor shall instruct such employees, through employee
agreements or other suitable educational programs, on the importance of
reporting inventions in sufficient time to permit the filing of patent
applications prior to U.S. or foreign statutory bars.

          (3) The Contractor will notify the Federal agency of any decisions not
to continue the prosecution of a patent application, pay maintenance fees, or
defend in a reexamination or opposition proceeding on a patent, in any country,
not less than 30 days before the expiration of the response period required by
the relevant patent office.

          (4) The Contractor agrees to include, within the specification of any
United States patent application and any patent issuing thereon covering a
subject invention, the following statement, “This invention was made with
Government support under (identify the contract) awarded by (identify the
Federal agency). The Government has certain rights in the invention.”

(g) Subcontracts.

          (1) The Contractor will include this clause, suitably modified to
identify the parties, in al subcontracts, regardless of tier, for experimental,
developmental, or research work to be performed by a small business firm or
domestic nonprofit organization. The subcontractor will retain all rights
provided for the Contractor in this clause, and the Contractor will not, as part
of the consideration for awarding the subcontract, obtain rights in the
subcontractor’s subject inventions.

          (2) The Contractor will include in all other subcontracts, regardless
of tier, for experimental, developmental, or research work the patent rights
clause required by Subpart 27.3.

          (3) In the case of subcontracts, at any tier, the agency,
subcontractor, and the Contractor agree that the mutual obligations of the
parties created by this clause constitute a contract between the subcontractor
and the Federal agency with respect to the matters covered by the clause;
provided, however, that nothing in this paragraph is intended to confer any
jurisdiction under the Contract Disputes Act in connection with proceedings
under paragraph (j) of this clause.

(h) Reporting on utilization of subject inventions. The Contractor agrees to
submit, on request, periodic reports no more frequently than annually on the
utilization of a subject invention or on efforts at obtaining such utilization
that are being made by the Contractor or its licensees or assignees. Such
reports shall include information regarding the status of development, date of
first commercial sale or use, gross royalties received by the Contractor, and
such other data and information as the agency may reasonably specify. The
Contractor also agrees to provide additional reports as may be requested by the
agency in connection with any march-in proceeding undertaken by the agency in
accordance with paragraph (j) of this clause. As required by 35 U.S.C.
202(c)(5), the agency agrees it will not disclose such information to persons
outside the Government without permission of the Contractor.

(i) Preference for United States industry. Notwithstanding any other provision
of this clause, the Contractor agrees that neither it nor any assignee will
grant to any person the exclusive right to use or sell any subject

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invention in the United States unless such person agrees that any product
embodying the subject invention or produced through the use of the subject
invention will be manufactured substantially in the United States. However, in
individual cases, the requirement for such an agreement may be waived by the
Federal agency upon a showing by the Contractor or its assignee that reasonable
but unsuccessful efforts have been made to grant licenses on similar terms to
potential licensees that would be likely to manufacture substantially in the
United States or that under the circumstances domestic manufacture is not
commercially feasible.

(j) March-in rights. The Contractor agrees that, with respect to any subject
invention in which it has acquired title, the Federal agency has the right in
accordance with the procedures in 37 CFR 401.6 and any supplemental regulations
of the agency to require the Contractor, an assignee or exclusive licensee of a
subject invention to grant a nonexclusive, partially exclusive, or exclusive
license in any field of use to a responsible applicant or applicants, upon terms
that are reasonable under the circumstances, and if the Contractor, assignee, or
exclusive licensee refuses such a request the Federal agency has the right to
grant such a license itself if the Federal agency determines that—

          (1) Such action is necessary because the Contractor or assignee has
not taken, or is not expected to take within a reasonable time, effective steps
to achieve practical application of the subject invention in such field of use;

          (2) Such action is necessary to alleviate health or safety needs which
are not reasonably satisfied by the Contractor, assignee, or their licensees;

          (3) Such action is necessary to meet requirements for public use
specified by Federal regulations and such requirements are not reasonably
satisfied by the Contractor, assignee, or licensees; or

          (4) Such action is necessary because the agreement required by
paragraph (i) of this clause has not been obtained or waived or because a
licensee of the exclusive right to use or sell any subject invention in the
United States is in breach of such agreement.

(k) Special provisions for contracts with nonprofit organizations. If the
Contractor is a nonprofit organization, it agrees that—

          (1) Rights to a subject invention in the United States may not be
assigned without the approval of the Federal agency, except where such
assignment is made to an organization which has as one of its primary functions
the management of inventions; provided, that such assignee will be subject to
the same provisions as the Contractor;

          (2) The Contractor will share royalties collected on a subject
invention with the inventor, including Federal employee co-inventors (when the
agency deems it appropriate) when the subject invention is assigned in
accordance with 35 U.S.C. 202(e) and 37 CFR 401.10;

          (3) The balance of any royalties or income earned by the Contractor
with respect to subject inventions, after payment of expenses (including
payments to inventors) incidental to the administration of subject inventions
will be utilized for the support of scientific research or education; and

          (4) It will make efforts that are reasonable under the circumstances
to attract licensees of subject inventions that are small business firms, and
that it will give a preference to a small business firm when licensing a subject
invention if the Contractor determines that the small business firm has a plan
or proposal for marketing the invention which, if executed, is equally as likely
to bring the invention to practical application as

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any plans or proposals from applicants that are not small business firms;
provided, that the Contractor is also satisfied that the small business firm has
the capability and resources to carry out its plan or proposal. The decision
whether to give a preference in any specific case will be at the discretion of
the contractor. However, the Contractor agrees that the Secretary of Commerce
may review the Contractor’s licensing program and decisions regarding small
business applicants, and the Contractor will negotiate changes to its licensing
policies, procedures, or practices with the Secretary of Commerce when the
Secretary’s review discloses that the Contractor could take reasonable steps to
more effectively implement the requirements of this subparagraph (k)(4).

(l) Communications.

I-3     N52.203-004 Personal Conduct (APR 1997)

(a)  The Contractor, its employees, and its subcontractors shall comply with the
conduct requirements in effect at the Government’s work site. The Government
reserves the right to exclude or remove from the work site any employee of the
contractor or of a subcontractor whom the Government deems careless,
uncooperative, or whose continued employment on the work site is deemed by the
Government to be contrary to the public interest.

(b)  The Contractor shall inform its employees that the NRO has a zero tolerance
policy for harassing behavior. Any Contractor or subcontractor employee
determined by the Government to have engaged in harassing behavior shall be
immediately escorted from the premises and denied further access to the
worksite. The Contractor shall emphasize this requirement to its employees.

(c)  Exclusion from the worksite under the circumstance described in this clause
shall not relieve the Contractor from full performance of the contract, nor will
it provide the basis for an excusable delay or any claims against the
Government.

I-4     N52.204-003 Special Notification And Approval Requirements (MAR 2002)

(a)  It is a material condition of this contract that the contractor notify and
seek approvals as required in the following situations:

          (1)  Litigation or Requests for Information Relating to This Contract.

                    (i)  The contractor hereby agrees to immediately give notice
to the Contracting Officer of any anticipated or current litigation or request
for information from a third party (including individuals, organizations, and
federal, state, or local governmental entities) involving or in any way relating
to this contract, pertinent subcontracts, or the Government’s relationship with
the contractor or subcontractor(s). Said notice shall include all relevant
information with respect thereto.

                    (ii)  The Contracting Officer shall have access to and the
right to examine any pertinent books, documents, papers, and records of the
prime contractor or subcontractor(s) involving customer transactions related to
any contract litigation.

          (2)  Utilization of Government Relationship for Publicity, Advertising
or Public Relations Purposes.

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                    (i)  The contractor agrees not to use or allow to be used
any aspect of this contract for publicity, advertisement, or any other public
relations purposes. It is further understood that this obligation shall not
expire upon completion or termination of this contract, but will continue until
rescinded by the U.S. Government.

                    (ii)  The contractor may request a waiver or release from
the foregoing but shall not deviate therefrom unless authorized to do so in
writing by the Contracting Officer.

                    (iii)  Unless otherwise stated in this contract, the
contractor is not prohibited from identifying the existence of a Government
contract pursuant to federal statute or regulation, e.g., Securities Exchange
Commission filings, if consistent with security requirements. A copy of all such
filings or disclosures shall be promptly forwarded to the Contracting Officer.

          (3)  Past Performance Information. The contractor may provide past
performance information regarding this contract to any NRO contracting officer
supporting an NRO source selection without the approval of the Contracting
Officer.

(b)  The contractor agrees to insert this clause in any subcontract under this
contract. In the event of litigation, the Subcontractor shall immediately notify
its next tier Subcontractor or the Prime contractor, as the case may be, of all
relevant information with respect to such litigation.

I-5     N52.209-013 Enabling Clause for Prime and Support Contractor
Relationships (JUN 2001)

(a)  The Government has or may enter into contracts with one or more of the
following companies to provide Contracted Advisory and Assistance Services
(CAAS) and/or Systems Engineering and Technical Assistance (SETA):

TASC, Inc. (a subsidiary of Northrop Grumman)

(b)  In the performance of this contract, the contractor agrees to cooperate
with the companies listed above (hereafter referred to as CAAS/SETAs).
Cooperation includes allowing observation of technical activities by appropriate
CAAS/SETA technical personnel; discussing technical matters related to this
program; responding to invitations from authorized CAAS/SETA personnel to attend
meetings; and providing access to technical information and research and
development planning data. The contractor shall provide CAAS/SETA personnel
access to data such as, but not limited to, design and development analyses;
test data and results; equipment and process specifications; test and test
equipment specifications; procedures, parts, and quality control procedures;
records and data; manufacturing and assembly procedures; and schedule and
milestone data. CAAS/SETA personnel engaged in general systems engineering and
integration effort are normally authorized access to any technical information
pertaining to this contract. However, exceptions, such as the case where the
contractor seeks to preclude CAAS/SETA personnel from having access to
contractor trade secrets, will be handled on a case-by-case basis. If the
contractor seeks to limit distribution of data to Government personnel only, the
contractor must submit this request in writing to the contracting officer.

(c)  The contractor further agrees to include in each subcontract a clause
requiring compliance by the subcontractor and succeeding levels of
subcontractors with the response and access provisions of paragraph (b) above,
subject to coordination with the contractor. This agreement does not relieve the
contractor of responsibility to manage the subcontracts effectively and
efficiently, nor is it intended to establish privity of contract between the
Government or CAAS/SETAs and such subcontractors.

(d)  CAAS/SETA personnel are not authorized to direct the contractor in any
manner. The contractor agrees to accept technical direction as follows;

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          (1) Technical direction under this contract will be given in
accordance with the contract clause entitled Authority and Designation of the
Contracting Officer’s Technical Representative.

          (2) Whenever it becomes necessary to modify the contract and redirect
the effort, a change order signed by the contracting officer or supplemental
agreement signed by both the contracting officer and the contractor will be
issued.

(e)  CAAS/SETA contracts will contain an organizational conflict of interest
clause that requires the CAAS/SETA contractor to protect contract data and
prohibits the CAAS/SETA contractors from using such data for any purpose other
than that for which the data was presented.

I-6     N52.211-004 Usage Of The Metric System Of Measurement (SI) (MAR 1996)

(a)  Basic requirement. This contract requires, unless authorized in paragraph
(d) below, that all supplies, components, reports, documentation, or services
which are designed, fabricated, assembled, delivered or performed under this
contract shall utilize the “International System of Units” (SI).

(b)  The “International System of Units” is as established by the General
Conference of Weights and Measures in 1960; it is also known as “System
International (SI)” or “Metric System”; and it is interpreted for US usage by
the Department of Commerce’s Interpretation of the International System of Units
for the United States as printed in Federal Register Volume 55, Page 52242, Dec.
20, 1990, and supplemented for the Federal Government’s usage by the General
Services Administration’s Federal Standard 376, Preferred Metric Units of
General Use by the Federal Government.

(c)  Conflict of interest. In the event there is a conflict between the
International System of Units; 55 FR 52242, Dec. 20, 1990; Federal Standard 376;
or the contract schedule, the order of precedence in resolving the conflict
shall be contract schedule first, followed by Federal Standard 376; 55 FR 52242,
Dec. 20, 1990; and International System of Units in descending importance.

(d)  Exemption to requirement. The following supplies, components, reports,
documentation, or services that are designed, fabricated, assembled, delivered
or performed under this contract are exempt from the requirements of this
clause:

None known at this time.

The contractor should submit a request for exemption to the Contracting Officer
whenever compliance is either not possible, impracticable, or otherwise not in
the Government’s best interest. The scope of the request shall be limited to
only those items negatively impacted by the requirement.

I-7     N52.215-003 Key Personnel (JAN 1998)

(a)  The contractor shall identify the key technical, management and
administrative personnel to be assigned to work under this contract:

Name

 

Title

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Stewart Clark

 

Principal Investigator

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(b)  The personnel specified above are considered to be essential to the work
performed hereunder. Prior to replacing any of the specified individuals, the
contractor shall provide advance notification of at least thirty (30) calendar
days to the Contracting Officer and shall submit resumes of the qualifications
of the proposed replacements in sufficient detail to permit evaluation of the
impact on the program. All proposed substitutes must have qualifications that
are equal to or higher than the qualifications of the person to be replaced.
Unless otherwise directed by the Contracting Officer within the 30 day notice
period, the contractor may replace the individual with one of the proposed
replacements following the notice period. No diversion from the above procedure
shall be made by the contractor without the written consent of the Contracting
Officer, provided that the Contracting Officer may ratify in writing such
diversion and such ratification shall constitute the consent of the Contracting
Officer required by this clause.

(c)  No personnel substitutions will be approved during the first 120 days of
the contract performance period unless required due to an individual’s sudden
illness, death, or termination of employment.

I-8     N52.215-006 Incorporation Of Section K, Representations, Certifications,
And Other Statements Of Offerors (DEC 1998)

Section K, dated 20 March 2003, completed and submitted with the contractor’s
proposal, in support of this effort, or on file with the contracting officer’s
Directorate/Office, is incorporated herein by reference and made a part of this
contract.

I-9     N52.223-005 Prohibition On Storage And Disposal Of Toxic And Hazardous
Materials (OCT 1997)

(a)  Definitions. As used in this clause:

          (1) ˜Storage˜ means a non-transitory, semi-permanent or permanent
holding, placement, or leaving of material. It does not include a temporary
accumulation of a limited quantity of a material used in or a waste generated or
resulting from authorized activities, such as servicing, maintenance, or repair
of Government items, equipment, or facilities.

          (2) ˜Toxic or hazardous materials˜ means those materials identified in
the “EPA Title III List of Lists”.

(b)  The contractor is prohibited from transporting, storing, disposing or using
toxic or hazardous materials in performing this contract except for those
materials listed in (c) below or when authorized in writing by the Contracting
Officer.

(c)  Toxic and hazardous materials authorized for use in the performance of this
contract are as listed below:

None at this time.

I-10     N52.245-001 Property Administration And Control (JUN 2001)

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(a)  For the purposes of this contract, property administration authority is
delegated to the following NRO Property Analyst:

Annie Battle

(b)  The contractor shall maintain adequate property control procedures,
records, and a system of identification for all Government property accountable
to this contract in accordance with FAR Part 45 and NAM Part N45.

(c)  The contractor shall provide the name, address, and telephone number of the
company official responsible for establishing and maintaining control of
Government property under this contract to the NRO Property Analyst listed above
within thirty (30) days after receipt of this contract.

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PART III - LIST OF DOCUMENTS/EXHIBITS AND OTHER ATTACHMENTS

SECTION J - LIST OF ATTACHMENTS

J-1     Incorporation Of Attachments And Exhibits

The Attachments and/or Exhibits listed below are incorporated herein and made
part hereof:

Attachment
Number

 

Description

 

No. Pages

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1

 

Large Area Mosaic Focal Plan Array dated 28 Feb 2003

 

8

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