Exhibit 10(g)(1)


 


AMENDMENT
OF SOLICITATION/MODIFICATION OF CONTRACT


 


1.               CONTRACT
ID CODE


 


2.               AMENDMENT/MODIFICATION
NO.


 


M116


 


3.               EFFECTIVE
DATE


 


See Block 16


 


4.               REQUISITION/PURCHASE
REQ. NO.


 


N/A


 


5.               PROJECT
NO. (If applicable)


 


6.               ISSUED BY                                                            CODE


 


U.S. Department of Energy

Rocky Flats Project Office

10808 Highway 93, Unit A

Golden, CO 80403-8200


 


7.               ADMINISTERED
BY (If other than Item 6)CODE


 


8.               NAME
AND ADDRESS OF CONTRACTOR (No., street,
county, State and ZIP Code)


 


Kaiser-Hill Company, L.L.C.


Rocky Flats Environmental
Technology Site


10808 Highway 93, Unit B


Golden, CO 80403-8200


 


	
  CODE

  	
   

  	
  FACILITY
  CODE

  



 


	
   

  	
   

  	
  9A.
  AMENDMENT OF SOLICITATION NO.

  
	
  o

  	
   

  	
   

  
	
   

  	
   

  	
  9B. DATED (SEE ITEM 11)

  



 


	
   

  	
   

  	
  10A.
  MODIFICATION OF CONTRACT/ORDER NO. 

  DE-AC34-00RF01904

  
	
  ý

  	
   

  	
   

  
	
   

  	
   

  	
  10B. DATED (SEE ITEM 13)

  February 1, 2000 

  



 


11. THIS ITEM ONLY APPLIES TO AMENDMENTS OF
SOLICITATIONS


 


o                 The above
numbered solicitation is amended as set forth in Item 14. The house and date
specified for receipt of Offers


 


o                 Is extended.


 


o                 Is not extended


 


Offers must acknowledge receipt
of this amendment prior to the hour and date specified in the solicitation or
as amended, by one of the following methods:


(a) By completing Items 8 and
15 and returning
                
copies of the amendment: (b) By acknowledging receipt of this amendment on each
copy of the offer submitted; or (c) By separate letter or telegram which
includes a reference to the solicitation and amendment numbers. FAILURE OF YOUR
ACKNOWLEDGMENT TO BE RECEIVED AT THE PLACE DESIGNATED FOR THE RECEIPT OF OFFERS
PRIOR TO THE HOUR AND DATE SPECIFIED MAY RESULT IN REJECTION OF YOUR OFFER. If
by virtue of this amendment you desire to change an offer already submitted,
such change may be made by telegram or letter, provided each telegram or letter
makes reference to the solicitation and this amendment, and is received prior
to the opening hour and date specified.


 


12.         ACCOUNTING
AND APPROPRIATION DATA (If required)


 


13. THIS ITEM APPLIES ONLY TO MODIFICATIONS
OF CONTRACTS/ORDERS,

IT MODIFIES THE CONTRACT/ORDER NO. AS DESCRIBED IN ITEM 14.


 


o        A. THIS CHANGE ORDER IS ISSUED PURSUANT TO
(Specify authority) THE CHANGES SET FORTH IN ITEM 14 ARE MADE IN THE CONTRACT
ORDER NO. IN ITEM 10A.


 


o        B. THE ABOVE NUMBERED CONTRACT/ORDER IS
MODIFIED TO REFLECT THE ADMINISTRATIVE CHANGES (such as changes in paying
office, appropriation date, etc, SET FORTH IN ITEM 14, PURSUANT TO THE
AUTHORITY OF FAR 43.103(b).


 


ý        C.
THIS SUPPLEMENTAL AGREEMENT IS ENTERED INTO PURSUANT TO AUTHORITY OF:


Mutual
Agreement of the Parties / Clause 1.75, Changes – Cost Reimbursement (AUG 1987)
– Alt, I (APR 1984)


 


o        D. OTHER (Specify type of
modification and authority)


 


E. IMPORTANT: Contractor  o
is not,  ý
is required to sign this document and return 3 copies to the issuing office.


 


14.         DESCRIPTION
OF AMENDMENT/MODIFICATION (Organized by UCF section headings, including
solicitation/contract subject matter where feasible)


 


 


The purpose of this
modification is to extend the range of incentive effectiveness.


 


Except as provided herein, all
terms and conditions of the document referenced in Item 9A or 10A, as
heretofore changed, remains unchanged and in full force and effect.


 


15A.         NAME
AND TITLE OF SIGNER (Type or print)


 


L.A. MARTINEZ


Director of Administration and
Chief Financial Officer


 


15B.           CONTRACTOR/OFFEROR


 


	
  /s/ Len A.
  Martinez

  	
   

  
	
  (Signature
  of person authorized to sign)

  



 


15C.           DATE
SIGNED


3/24/04


 


16A.         NAME
AND TITLE OF CONTRACTING OFFICER (Type or
print)


 


CHARLES A. DAN, JR.


Contracting Officer


 


16B.           UNITED
STATES OF AMERICA


 


	
  /s/ Charles
  A. Dan, Jr.

  	
   

  
	
  (Signature
  of contracting officer)

  



 


18C. DATE SIGNED


3/24/04


 


	
  NSN
  7540-01-152-8070

  PREVIOUS
  EDITION

  UNUSABLE

  	
  30-105

  	
  STANDARD
  FORM 30 (Rev. 10-83)

  Prescribed
  by GSA

  FAR (48 CFR)
  53243

  



 

















 


DE-AC34-00RF01904


Modification M116


Page 2 of 4


 


1. Section B, Clause B.5 “Schedule Incentive,” paragraph (d) is hereby
modified to read:


 


(d) In no event shall the schedule incentive fee payable under
subparagraphs (b) and (c) plus the incentive fee payable in accordance with
Clause I.23 exceed 14.09417% of Target Cost. Any fee reduction for late
schedule set forth in subparagraphs (b) and (c) shall be deducted from the
incentive fee payable under Clause I.23. Nothing in this subparagraph shall
limit the deduction from fee for Category 1, 2, or 3 events as set forth in
Clause B.6 (3).


 


2. Part II-Contract Clauses, Section I., Clause I.23 entitled Incentive
Fee (MAR1997), subparagraph (e) is hereby revised to read as follows:


 


“(e) Fee payable.


 


(1) Cost Incentive:


a.                    The cost incentive fee payable
under this contract shall be the target fee increased by the sum of the
following:


(i) thirty (30) cents for every dollar that
the total allowable cost is below Target


Cost down to $401,230,884 less than Target
Cost; plus


(ii) twenty (20) cents for every dollar that
the total allowable cost is below Target


Cost less $401,230,884, down to $673,273,309
less than Target Cost; plus


(iii) twenty-five (25) cents for every dollar
than the total allowable cost is below


Target Cost less $673,273,309, down to
$850,864,464 less than Target Cost.


b.                   The fee payable under this contract
shall be decreased by thirty (30) cents for every dollar that the total
allowable cost exceeds Target Cost up to $886,081,537 greater than Target Cost.


c.                    In no event shall the cost
incentive fee be greater than 14.09417 percent or less than 1.88761 percent of
Target Cost. The Maximum Fee, including any fees earned under the Cost
Incentive under this Clause I.23 plus
the Schedule Incentive earned under Clause B.5, Schedule Incentive, shall not
exceed 14.09417 percent of the Target Cost.


d.                   The provisions set forth above are
depicted by the curve included in Section J, Attachment H.”


 


2

















 


DE-AC34-00RF01904


Modification M116


Page 3 of 4


 


3. Clause B.8, Additional Item(s) Excluded from Actual Cost, is amended
by adding the following as paragraphs f and g:


 


f.                 Costs incurred for the following
Requests for Equitable Adjustment (REAs), up to a cumulative total of
$40,000,000:


 


	
  REA #

  	
   

  	
  Description

  
	
  2002-1040

  	
   

  	
  Waste Isolation Pilot Plant (WIPP)/Waste Acceptance Criteria (WAC)
  –Part III

  
	
  2004-1051

  	
   

  	
  Waste Isolation Pilot Plant (WIPP)/Waste Acceptance Criteria (WAC) –
  Part IV

  
	
  2000-1004

  	
   

  	
  Special Nuclear Material (SNM) Removal Delays (Government-Furnished
  Services and Items)

  
	
  2003-1045

  	
   

  	
  National Emergency Part II

  
	
  2003-1047

  	
   

  	
  Waste Disposition (Government-Furnished Services and Items)

  
	
  2003-1048

  	
   

  	
  Remediation Waste Volumes

  
	
  2001-1036

  	
   

  	
  Plutonium Oxide Moisture Measurement

  
	
  2002-1042

  	
   

  	
  Size Reduction/Shipment of Items to Savannah River Site

  
	
  2000-1018

  	
   

  	
  Plutonium Separation and Packaging System (PuSPS) Outside Requirement
  (Savannah River Site)

  
	
  2002-1038

  	
   

  	
  Assignment and Qualification of Systems Engineers and DNFSB 2000-2
  Phase 2 B371 Vital safety Systems

  
	
  2002-1041

  	
   

  	
  Air Monitoring for Beryllium and Radionuclides During Building
  Demolition

  
	
  2000-1027

  	
   

  	
  Shipment of Waste to WIPP (Vent Filters)

  
	
  2001-1030

  	
   

  	
  Nevada Test Site WAC

  
	
  2002-1043

  	
   

  	
  Implementation of Contact Handled WAC

  



 


g.              The incurred costs, from February 1, 2000
through the date of Physical Completion, of Pension Contributions, Active
Employee Health Care Benefits, and Retiree Health Benefits exceeding a combined
total of $246,777,000 as identified in Closure Project Baseline WBS Activities:


IJAG010030,31,32,33,34,35,36 (lines
101,102,106,107 and 117)


IJXXX1003 (lines 101,102,106 and 117)


IJAG010040,41


IJAD086502,03,04,05,06


IJXXX86506


 


4.                  Section J, Attachment H, Schedule and
Cost Incentive Graphs: The Cost Incentive Graph is hereby replaced by the
attached Cost Incentive Graph, Revision 1. The Schedule Incentive Graph remains
unchanged.


 


3

















 


DE-AC34-00RF01904


Modification M116


Page 4 of 4


 


Contractor’s Statement of Release


 


In consideration of the
modification(s) agreed to herein, Kaiser-Hill Company, L.L.C. hereby releases
the Government from any and all liability under this Contract for further
equitable adjustment in Target Cost, Target Schedule or Target Fee associated
with changes up to $40,000,000 in cost associated with the REAs identified in
Clause B.8 (f), above. In the event additional funding is not provided to cover
the total $40,000,000 by October 1, 2005, Kaiser-Hill Company, L.L.C. reserves
its right to request an equitable adjustment in Target Cost, Target Schedule or
Target Fee for any remaining unfunded costs.


 


End of Modification


 

















 


Cost Incentive, Revision 1


 





 


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