**Exhibit 10(g)(1)**

 

**AMENDMENTOF SOLICITATION/MODIFICATION OF CONTRACT**

 

1.               CONTRACTID CODE

 

2.               AMENDMENT/MODIFICATIONNO.

 

M116

 

3.               EFFECTIVEDATE

 

See Block 16

 

4.               REQUISITION/PURCHASEREQ. NO.

 

N/A

 

5.               PROJECTNO. *(If applicable)*

 

6.               ISSUED BY                                                            CODE

 

U.S. Department of EnergyRocky Flats Project Office10808 Highway 93, Unit AGolden, CO 80403-8200

 

7.               ADMINISTEREDBY (If other than Item 6)CODE

 

8.               NAMEAND ADDRESS OF CONTRACTOR *(No., street,county, State and ZIP Code)*

 

Kaiser-Hill Company, L.L.C.

Rocky Flats EnvironmentalTechnology 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 OFSOLICITATIONS**

 

o                 The abovenumbered solicitation is amended as set forth in Item 14. The house and datespecified for receipt of Offers

 

o                 Is extended.

 

o                 Is not extended

 

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

(a) By completing Items 8 and15 and returning                copies of the amendment: (b) By acknowledging receipt of this amendment on eachcopy of the offer submitted; or (c) By separate letter or telegram whichincludes a reference to the solicitation and amendment numbers. FAILURE OF YOURACKNOWLEDGMENT TO BE RECEIVED AT THE PLACE DESIGNATED FOR THE RECEIPT OF OFFERSPRIOR TO THE HOUR AND DATE SPECIFIED MAY RESULT IN REJECTION OF YOUR OFFER. Ifby 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 lettermakes reference to the solicitation and this amendment, and is received priorto the opening hour and date specified.

 

12.         ACCOUNTINGAND APPROPRIATION DATA *(If required)*

 

**13. THIS ITEM APPLIES ONLY TO MODIFICATIONSOF 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 CONTRACTORDER NO. IN ITEM 10A.

 

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

 

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

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

 

o        D. OTHER (Specify type ofmodification and authority)

 

E. IMPORTANT: Contractor  ois not,  ýis required to sign this document and return 3 copies to the issuing office.

 

14.         DESCRIPTIONOF AMENDMENT/MODIFICATION (Organized by UCF section headings, includingsolicitation/contract subject matter where feasible)

 

 

The purpose of thismodification is to extend the range of incentive effectiveness.

 

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

 

15A.         NAMEAND TITLE OF SIGNER (Type or print)

 

L.A. MARTINEZ

Director of Administration andChief Financial Officer

 

15B.           CONTRACTOR/OFFEROR

 
| /s/ Len A.  Martinez                      |   |
|-------------------------------------------|--------|
| (Signature  of person authorized to sign) |

 

15C.           DATESIGNED

3/24/04

 

16A.         NAMEAND TITLE OF CONTRACTING OFFICER *(Type orprint)*

 

CHARLES A. DAN, JR.

Contracting Officer

 

16B.           UNITEDSTATES 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 |
|----------------------------------------------------|--------|-------------------------------------------------------------------------|

 

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DE-AC34-00RF01904

Modification M116

Page 2 of 4

 

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

 

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

 

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

 

“(e) Fee payable.

 

(1) Cost Incentive:

a.                    The cost incentive fee payableunder this contract shall be the target fee increased by the sum of thefollowing:

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

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

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

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

(iii) twenty-five (25) cents for every dollarthan 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 contractshall be decreased by thirty (30) cents for every dollar that the totalallowable cost exceeds Target Cost up to $886,081,537 greater than Target Cost.

c.                    In no event shall the costincentive fee be greater than 14.09417 percent or less than 1.88761 percent ofTarget Cost. The Maximum Fee, including any fees earned under the CostIncentive under this Clause I.23 *plus*the Schedule Incentive earned under Clause B.5, Schedule Incentive, shall notexceed 14.09417 percent of the Target Cost.

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

 

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DE-AC34-00RF01904

Modification M116

Page 3 of 4

 

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

 

f.                 Costs incurred for the followingRequests 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, 2000through the date of Physical Completion, of Pension Contributions, ActiveEmployee Health Care Benefits, and Retiree Health Benefits exceeding a combinedtotal of $246,777,000 as identified in Closure Project Baseline WBS Activities:

IJAG010030,31,32,33,34,35,36 (lines101,102,106,107 and 117)

IJXXX1003 (lines 101,102,106 and 117)

IJAG010040,41

IJAD086502,03,04,05,06

IJXXX86506

 

4.                  Section J, Attachment H, Schedule andCost Incentive Graphs: The Cost Incentive Graph is hereby replaced by theattached Cost Incentive Graph, Revision 1. The Schedule Incentive Graph remainsunchanged.

 

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DE-AC34-00RF01904

Modification M116

Page 4 of 4

 

**Contractor’s Statement of Release**

 

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

 

**End of Modification**

 

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**Cost Incentive, Revision 1**

 

 

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