Scope of Work 

Exhibit A 

CSX Transportation, Inc. Scope of Work for 

Switch-Duty Locomotive Conversions 

in Atlanta, Georgia 

Upon execution of the contract and continuing through 24 months, unless terminated early under 

provisions of agreement, Contractor will perfmm tasks as described in Exhibit B to reduce 

emissions fi·om locomotives used for switching in Atlanta for purposes of improving air quality 

in Georgia. These tasks include: 

A Within 45 days of execution of agreement, Contractor shall provide to the Division a 

project schedule with specific dates for completing each project related task that is 

consistent with timeline provided in Contractor's project application; 

B. Contractor shall convert, as described more fully in Section 2 Locomotive Rail Yard 

Location and Operation and the "Locomotive Conversion" paragraph therein of Exhibit B, 

6locomotives fium Tier 0 or a lower rating as desc1ibed in the Project Proposal (Exhibit 

B) to 3000 

horsepower locomotives meeting EPA Tier 3 Line-haul and Tier 2 Switch emission 

standards or better (i.e. with lower emissions); 

C. The contractor shall maintain the locomotives sufficiently to assure the technology 

remains operational for at least ten years and operate the locomotives at least 80% of their 

operating time in the Atlanta PM2. 5 urban core nonattainment counties, as depicted in 

Figure I on page 8 of the July 13, 2012 Request for Applications unless the locomotive is 

damaged beyond repair or 

becomes permanently inoperable. The 

contractor shall inform the Division of all locomotives that are converted as pmt of this 

agreement that are removed fi·om the fleet due to dan1age or inoperability. The ten-year 

period will start on the date that the conve1ied locomotives are operational in their 

assigned yards and all tasks in tllis Scope of Work have been completed other than 

submission of the required reports. The contractor shall not sell the equipment until the 

ten-yem operational period has passed or Division deems equipment non-operational. 

D. Repmting requirements for each conve1ted locomotive will include: 

(1) An i1litial repmt before the locomotive is converted, 

(2) A repmi within one month after completion of the conversion(s), 

(3) A repmi each 6 months for the first two yem·s of operation of the converted 

locomotive (witllin one month of completing the six-month pe1iod) and 

( 4) A report once per yem for the remaining period of commitment (within one 

month of completing the year peliod). 

The Contractor shall subnlit repmis to the Division by electronic mail (e-mail) and shall 

provide two copies of the repmts in the e-mail with one in Microsoft Word fo1mat and 

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the second in a PDF format. The Contractor shall submit a hard copy of the report upon 

the Division's request. 

E. The repmts will include the following components: 

(1) Initial report: 

a The initial repmt will contain manufacturer's data regarding the activity, 

emissions, and fuel use for the locomotive to be convetted/replaced. 

(2) Post conversion repmt: 

a A description of expected emission levels based on the equipment 

installed. 

b. Cettification/assmance that the equipment was properly installed and is in 

working condition and confitmation of proper maintenance of locomotives 

and conversion equipment. 

c. A description of the provisions that ensure enforcement of warranty claims 

against vendors if problems arise. 

d If the proposed time for completing the conversion is exceeded, provide a 

description and explanation of the delay. 

(3) Six months descriptive operation reports (four repmts; one each six months for 

the first two years of operation). 

a. Contractor will make reasonable, good faith efforts to track and compile, 

to the extent available, the following: 

1. Activity, emissions, and estimated fuel use infmmation for the 

convetted/replaced locomotive. 

ii. Description or confitmation of operating pattems, including 

confitmation of the use of the converted locomotives in the 

designated areas during the reporting period. 

iii. Certification/assmance of proper operation and maintenance of the 

locomotive and emissions control equipment. 

b. In the event of tracking system failme, Contractor will provide the 

infonnation gathered, averaged over the length of the repmting period. 

( 4) Annual normal operation repmts (beginning in year three): 

a Activity, emissions, and estinmted fuel use information. 

b. Description or confilmation of operating patterns, including confumation 

of the use of the convetted locomotives in the designated areas duril1g the 

repmting period. 

c. Certification/assmance of proper operation and maintenance of the 

locomotive and emissions control equipment. 

Contractor must repmt if there have been any changes in operating pattems that would 

cause significant differences in activity data, deviance fi·om the contractual agreements, or 

need for unexpected maintenance or repair beyond nmmal expectations that would cause 

the locomotive to be removed fi·om service for extended periods of time and must detail 

the cause. If the locomotive became inoperable and was unable to be repaired, it must be 

repmted within sixty ( 60) business days after the final detennination by the locomotive 

owner (Grantee). To the extent the repmting requirements set fmth above differ fi·om the 

repmtil1g elements as described in the July 13, 2012 Request for Applications, the 

provisions in this Scope of Work control. 

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F. Contractor will take reasonable measures to protect its rights under any applicable vendor 

wananties in accordance with contractual rights and federal regulations. Funds must be 

returned to the Division if Contractor fails to complete the conversion of the 

locomotive( s ). 

G. Within 30 days after completing all project tasks as described in the Contractor's project 

schedule and after strutup of the six convmted locomotives, but no later than twenty-four 

(24) months after the effective date of this contract, the Contractor shall submit a Post 

Conversion Surnmruy repmt that includes the overall project description, final pictures of 

the locomotives, verification that the provisions of this CONTRACT have been met, 

success stories related to this project, shottcomings or obstacles that had to be overcome 

to mal<e this project successful, and lessons leamed while completing this project. The 

Contractor shall submit this repmt to the Division by electronic mail (e-mail) a11d shall 

provide two copies of the repmts in the e-mail with one in Microsoft Word format and 

the second in a PDF fmmat. The Contractor shall submit a hard copy of the repmt upon 

the Division's request. 

H. Contract funds will cover up to 70% of the total locomotive conversion cost and will be 

distributed to the Contractor incrementally (not more than once per a1111ual qurutet) 

following completion of conversion task(s), provided the match has been satisfied for the 

incremental distribution. 

I. The Contractor shall only invoice the Division for expenses eligible for award funding. 

As prut of the invoice, the Contractor shall cettify each task that has been completed a11d 

provide picture updates of any significant visible progress. Upon completion of the 

project, the Contractor shall submit a fmal invoice requesting up to the remaining funds 

for any unpaid task expenses for work completed during the project period, provided that 

the total grant distribution for this project does not exceed $7,560,000. The final invoice 

shall provide all the infotmation as requested in Method of Payment section of contract. 

J. The Contractor shall only invoice the Division for eligible expense resulting fi'om the 

locomotive conversions as prut of completing tasks as described by the Contractor's 

project schedule (Exhibit B). 

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K. The Contractor may not seek reimbursement or cost share consideration for certain 

ineligible cost, which would include ma11agement or similar fees used to accumulate a11d 

reserve funds for ongoing business expenses, urtforeseen liabilities, or for other similar 

costs. The Contractor may not seek fees for consultants in excess of five hundred eightyseven dollars and twenty cents ($587.20) per day nor seventy-three dollars rutd forty cents 

($73 .40) per hour 

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