Document:

Purchase Order 3H03105 between the Registrant and The Boeing Company

 Exhibit 10.21 
  

			
	

	  	Purchase Order
	THE BOEING COMPANY	  	3H03105
		
	13100 Space Center Blvd	  	Date: 07/14/2003
	Houston, TX 77059	  	Ref Contract:

  

					
	 To:
 SPACEHAB INCORPORATED

12130 HIGHWAY 3, BLDG. 1
 WEBSTER, TX 775981504
	  	 Contact: Nelda Wilbanks
 Phone:
(713) 558-5000
 FAX: (713) 558-5960
	  	 Buyer: Annette M. Henson IX
 Phone:
(281) 226-4371
 Mail Code: HB2-30

	  	 Payment Terms
 Net 30 Days
	  	 Total Value:
 $0.00

	FOB: DESTINATION	  	 Resale: l Yes O No
 1-91-0425694-6
	  	 Funded Value:
 $0.01

	
	Ship To: Boeing, 13150 Space Center Blvd., Houston, TX 77059
			
	Ship Via:	  	 	  	 

  
 Mail Invoice To: The Boeing
Company, PO BOX 61014, Anaheim, CA 92803 
  

					
	 Prime Contract No: NAS15-10000
	  	DPAS Priority: DOC9	  	 

  
 This is a rated order certified for
national defense use, and you are required to follow all of the Provisions of the Defense Priorities and Allocations System regulation (15 CFR Part 700). You are required to acknowledge this order in writing or electronically within 10 working days
of a DX- rated order and 15 working days of a DO- rated order. If you reject the order, you must give reasons in writing (not electronically) for the rejection. When the priority rating on the face of this order is “NTD,” DPAS ratings are
specified in the 5000-series clause incorporated in this order. 
  
 Terms and
Conditions clauses applicable to this contract are from the IDS Common Terms and Conditions Guide and are incorporated here in by reference. Unless indicated otherwise elsewhere in this contract, the version of each incorporated clause applicable to
this contract is the latest dated version as of the confirming date of this contract. The Guide is on the Internet at: http://www.boeing.com/company offices/doingbiz/sccommon/flash.html. Note: Representations and Certifications required by U.S.
Government contracts have been incorporated into clause 4001,4002,4003 and 4004, as applicable. Referenced attachments are incorporated herein by reference. 
  
 Clauses Applicable to All Items: EXH. A SCHEDULE, EXH. B T’S & C’S 
  
 Purchase Order Comments / Additional Provisions / Information: 
  
 Exhibit A, Schedule; and Exhibit B, Terms & Conditions, are attached hereto and incorporated herein by reference. 
  
 “Information furnished to Seller under this solicitation/purchase contract may contain
data subject to U.S. Export Laws and Regulations. Seller is advised that such data may not be exported or re-exported to foreign persons, employed by or associated with, or under contract to Seller or Seller’s lower-tier suppliers, without the
prior written consent of Boeing and under authority of an export license or applicable license exemption. If such data is marked as Export Controlled, Seller shall indemnify and hold Buyer harmless from and against any and all claims, liabilities
and expenses resulting from Seller’s failure to comply with the export laws and regulations of the United States.” 
  
 “Seller’s acceptance of this Purchase Contract, confirms that: 
  
 l) it is not a foreign corporation, 
  
 2) it is not a Representative of a Foreign Interest (RFI), and 
 Seller agrees
to notify Boeing of any change in status set forth above.” 
  
 Seller agrees
to comply fully with all applicable U.S. laws and regulations as they may apply to the export of any hardware, software, defense service or technical data (collectively “Data”) provided by, through or with the cooperation of Seller in the
performance of this subcontract in the U.S. or abroad or under any export license or exemption issued to Boeing. Seller agrees that it will not permit the re-export of Data, including to foreign nationals, employed by or associated with, or under
contract to Seller or Seller’s lower-tier suppliers, without the prior written consent of Boeing and under authority of an export license or applicable license exemption. 
  
 Period of Performance: 05/19/2003 to 12/31/2003 
  

 Page 1 of 2 

 Purchase Order number 3H03105 
  

															
	 Item

	  	Quantity

	  	U/M

	  	 Part Number/Name

	  	Unit Price

	  	U/M

	  	Extended Price

	 000
	  	1	  	LT	  	NPN	  	$	0.00	  	 	  	$	0.00

  
 Basic Ordering
Agreement 
  

			
	 Line Item Text:
	  	Establish a BOA w/Spacehab to perform NASA, customer directed, activities to be implemented via Task Order. All Tasks should be associated with a Spacehab carrier or module as provided by
Spacehab.

  

			
	 Requisition Number: *******
	  	 Item Number: 0

  

											
	 Qty

	  	Activity ID

	  	Qty

	  	Activity ID

	  	Qty

	  	Activity ID

	 	  	GTQDSHAB	  	 	  	 	  	 	  	 

  

									
	 	 	 	 	 	 	Acknowledgement	 	 
					
	Buyer Signature:	 	 	 	 	 	Seller Signature:	 	 
					
	/s/    ANNETTE HENSON        	 	7/15/03	 	 	 	/s/    NELDA WILBANKS        	 	7/15/03
	Authorized Agent	 	Date	 	 	 	 	 	Date

  

 Page 2 of 2 

 Purchase Order 3H03105 
 Dated: 01 May 2003 
  

 Exhibit A 
 SCHEDULE 
  

	1.0	STATEMENT OF WORK 

  
 It should be understood that any time “Seller” is mentioned it is referring to SPACEHAB, Inc., and any time “Buyer” is mentioned it is referring to The Boeing Company. 
  
 Seller shall provide, as directed by the Buyer’s Technical Representative (BTR), all
labor, transportation, supervision, and materials necessary to furnish engineering, technical and administrative support for Buyer’s internal technical support activities for the International Space Station (ISS) Program. 
  
 Seller shall provide support with qualified personnel having Space Station experience to
support general tasks, which may include, but not be limited to the following: 
  

	 	•	 	Conduct Buyer’s approved trade studies 

  

	 	•	 	Develop Buyer’s approved presentation material including graphics and illustrations 

  

	 	•	 	Provide Buyer analytical tools/models developed for approved tasks 

  

	 	•	 	Provide Buyer approve Project Coordination 

  

	 	•	 	Support Knowledge Capture activities 

  

	 	•	 	Provide Buyer approved evaluation of existing data such as White papers, Trade Studies, RFP’s and contract generated by NASA and/or contractors 

  

	 	•	 	Provide Buyer approved evaluation of essential facilities, test beds and support equipment 

  

	 	•	 	Provide Buyer approved evaluation of current mission requirements and the rational for limitations on the International Space Station 

  
 Each set of direction provided by the BTR shall be in the form of a task order similar to
Exhibit A-1. Each task order will identify the Supplier Data Requirements Lists (SDRL) and other information as required. 
  
 Seller shall be required to provide Buyer with a firm fixed price for each task order requirement as submitted. 
  

	2.0	TECHNICAL DIRECTION 

  

	A.	Performance of the work under this contract is subject to the written task order provided by the Buyer. “Technical direction” means a directive to the Seller that relates
approaches, solutions, designs, or refinements, fills in details or otherwise completes the general description of work or documentation items, shifts emphasis among work areas or tasks, or furnishes similar instruction to the Seller. Technical
direction includes requiring studies and pursuit of certain lines of inquiry regarding matters within the general tasks and requirements of this contract as noted above. 

 Purchase Order 3H03105 
 Dated: 01 May 2003 
  

	B.	The BTR does not have the authority to, and shall not, issue any instruction purporting to be technical direction that – 

  

	 	1)	Constitutes an assignment of additional work outside the scope of this Schedule without revision to the Task Order, 

  

	 	2)	In any manner causes an increase or decrease in the total estimated contract cost, or the time required for contract performance without revision to the Task Order, or

  

	 	3)	Changes any of the expressed terms, conditions, or specifications of the contract, without revision to this Exhibit, or 

  

	 	4)	Interferes with the Seller’s rights to perform the terms and conditions of the contract. 

  

	C.	All technical direction shall be issued in writing by the BTR. 

  

	 	1)	The Seller shall proceed promptly with the performance of technical direction dully issued by the BTR in the manner prescribed by this clause and within the BTR’s authority.

  

	 	2)	If, in the Seller’s opinion, any instruction or direction by the BTR falls within any of the categories defined in paragraph B. above, the Seller shall not proceed but shall
notify the Buyer in writing within 5 working days after receiving such instruction and shall request the Buyer to take action as described in this clause. Upon receiving this notification, the Buyer shall either issue an appropriate task
modification within a reasonable time or rescinded in its entirety. 

  

	D.	Any action(s) taken by the Seller in response to any direction given by any person other than the Buyer or the BTA shall be at the Seller’s risk. 

  

	3.0	TASK ORDERING PROCEDURE 

  

	Performance	under this Exhibit A is subject to the following procedure: 

  

	A.	Seller shall incur costs under this contract in the performance of task order(s) and/or modifications issued in accordance with this ordering procedure. No other costs are
authorized without the express written consent of the Buyer. 

  

	B.	From time to time during the term of this contract, the Buyer will issue task orders and/or modifications in writing to Seller, providing specific information on work to be
performed within the scope of the contract. 

  

	 	1)	Task orders will contain, at a minimum, the following information: 

  

	 	a)	Signature of the Buyer 

  

	 	b)	Contract number, order number and date 

  

	 	c)	Description of work 

  

	 	d)	Maximum (Not to Exceed) dollar amount authorized (price) 

 Purchase Order 3H03105 
 Dated: 01 May 2003 
  

	 	e)	Documentation requirements 

  

	 	f)	Delivery performance schedule 

  

	 	g)	Quality assurance standards, as appropriate 

  

	 	h)	Travel authorized 

  

	 	i)	Any other necessary information 

  

	 	2)	Unless otherwise directed by the Buyer, Seller shall submit the following information for each task order: 

  

	 	a)	Estimated date of commencement of work, and any changes proposed to the schedule of performance 

  

	 	b)	Direct labor hours, by applicable labor category, and the total direct labor hours estimated to complete the task. 

  

	 	c)	The total firm fixed price, where appropriate for completion of the task order, including: 

  

	 	1)	The travel and Material estimates 

  

	 	2)	An estimate for subcontractors and consultants, including the direct labor hours, if applicable. 

  

	 	3)	Each task order shall require Seller to acknowledge receipt and acceptance of the order within five (5) calendar days after receipt. If Seller cannot comply with a task order
requirement, Seller shall indicate in its acknowledgment, the changes required before its acceptance. Any differences must be resolved between the parties and the order modified to reflect the agreement. 

  

	4.0	BUYER’S REPRESENTATIVES 

  
 Notwithstanding anything contained in this Order to the contrary, the parties hereto agree that “Buyer’s Technical Representative” (BTR) or designated
alternate is authorized to call for, and is responsible for directing, all within the scope of this Order, the service(s) to be performed hereunder. Seller agrees that while its representatives are at the service(s) location, actions of such
representatives while performing said service(s) shall be under the direction and control of BTR. Except as authorized pursuant to the “Changes” clause of this Order, the parties hereto agree that in no event will actions of the BTR result
in any adjustment in the terms and provisions of this Order. 
  
 For the purposes
of this Order, Buyer’s Technical Representatives (BTR) are: 
  
 Charles Chassay 
 The Boeing Company 
 3700 Bay Area Boulevard 
 Houston, Texas 77058 
  
 Department: J320, Mail Code: HB6-20 
 Telephone: (281) 244-4245 

 Purchase Order 3H03105 
 Dated: 01 May 2003 
  

 Alternate Technical Representative: 
  
 Ian Falkinham 
 Department: J320, Mail Code: HB6-20 
 Telephone: (281) 244-4412 
  
 Buyer’s Subcontract Management & Procurement Representative shall be Annette Henson,
Department J240, mail stop HB2-30, (281) 226-4371. Seller shall contact Ms. Henson on all contractual issues. 
  

	5.0	SELLER’S TECHNICAL REPRESENTATIVE 

  
 Buyer’s Technical Representative will coordinate all technical issues with Seller’s Technical Representative, Pete Gadsby, at (713)558-5099. 
  

	6.0	PAYMENT AND BILLING 

  
 Seller shall submit a firm fixed price for each task order issued under this Basic Ordering Agreement and shall submit invoices upon completion of each task and payment will be made net 30 days upon receipt of
invoice. 

 Exhibit B 
 Negotiated Terms and Conditions 
  
 General Provisions (GP2)(Rev 02/01/2001) 
  

	1.	FORMATION OF CONTRACT. 

  
 This proposed contract is Buyer’s offer to purchase the goods and services (Services) described in this offer. Acceptance is strictly limited to the terms and
conditions included in this offer. Unless specifically agreed to in writing by Buyer’s Authorized Procurement Representative, Buyer objects to, and is not bound by, any term or condition that differs from or adds to this offer. Seller’s
commencement of performance or acceptance of this offer in any manner shall conclusively evidence acceptance of this offer as written. In the event Buyer and Seller agree that Seller should begin performance prior to complete agreement on all terms
and conditions, Buyer shall incorporate a document detailing Seller’s exceptions (objections and desired wording) into the letter, change or order authorizing Seller to proceed. Such incorporation of Seller’s exceptions shall not indicate
Buyer’s agreement with such exceptions, but shall indicate that the specific clauses or articles listed remain subject to negotiation. Buyer and Seller shall in this event negotiate promptly and in good faith to resolve these exceptions.
Seller’s commencement of performance or acceptance of this offer in any manner shall conclusively evidence acceptance of this offer as written with the exception of those clauses under negotiation. 
  

	2.	SCOPE OF SERVICES. 

  
 During the term of this Agreement, Seller shall furnish the Services set forth in the Amendments of this Agreement. 
  

	3.	INDEPENDENT CONTRACTOR. 

  
 Seller is an independent contractor for all purposes. Seller shall have complete control over the performance of, and the details for accomplishing, the Services. In no
event shall Seller or its agents, representatives or employees be deemed to be agents, representatives or employees of Buyer. Seller’s employees shall be paid exclusively by Seller for all services performed. Seller shall comply with all
requirements and obligations relating to such employees under federal, state and local law (or foreign law, if applicable). Such compliance shall include, but not be limited to, laws regarding minimum wages, social security, unemployment insurance,
federal and state income taxes and workers’ compensation insurance. 
  

	4.	STANDARDS. 

  
 At any time for acts prohibited by law or regulation, lack of performance, or conduct deemed inappropriate by Buyer or Buyer’s customer, Buyer may require Seller to withdraw the services of any person who has
direct contact with Buyer or Buyer customer personnel and require that Seller provide replacements for such persons reasonably satisfactory to Buyer within a reasonable time. In addition to the other indemnification provisions within this contract,
Seller specifically agrees to indemnify and hold harmless Buyer from and against any liabilities, claims, charges or suits for alleged losses, costs, damages or expenses arising from Buyer’s reasonable exercise of its rights hereunder. The
indemnification in the prior sentence does not apply to indemnification against charges or suits brought by the Federal Government or any state or local government. 
  

	5.	WARRANTY. 

  
 Seller warrants that all Services performed hereunder shall be performed by employees or agents of Seller who are experienced and skilled in their profession and in accordance with industry standards. Seller further
warrants that all Services performed under this contract, at the time of acceptance, shall be free from defects in workmanship and conform to the requirements of this contract. Buyer 

  

 Page 1 of 20 

 Exhibit B 
 Negotiated Terms and Conditions 
  

 
shall be free from defects in workmanship and conform to the requirements of this contract. Buyer shall give written notice of any defect or nonconformance
to Seller within 45 days from the date of acceptance by Buyer. Seller shall make timely and reasonable efforts, within the scope of the existing contract, to correct or re-perform services as necessary to satisfy the requirements of this contract.

  

	6.	TAXES. 

  
 Unless this contract specifies otherwise, the price of this contract includes, and Seller is liable for and shall pay, all taxes, impositions, charges and exactions imposed on or measured by this contract except for
applicable sales and use taxes that are separately stated on Seller’s invoice. Prices shall not include any taxes, impositions, charges or exactions for which Buyer has furnished a valid exemption certificate or other evidence of exemption.

  

	7.	INVOICE AND PAYMENT 

  
 As compensation for services to be performed by Seller, Buyer shall pay Seller as set forth in this contract. Buyer shall have no liability for any other expenses or costs incurred by Seller. Payment due date, shall
be computed from the date of the later of the actual delivery date or the date of receipt of a correct invoice. Payment shall be deemed to have been made on the date the Buyer’s check is mailed or payment is otherwise tendered. Seller shall
promptly repay to Buyer any amounts paid in excess of amounts due Seller. 
  

	8.	CHANGES 

  

	 	a.	Buyer’s Authorized Procurement Representative may, without notice to sureties and in writing, direct changes within the general scope of this contract in any of the following:
(i) technical requirements and descriptions, specifications, statement of work, drawings or designs; (ii) shipment or packing methods; (iii) place of delivery, inspection or acceptance; (iv) reasonable adjustments in quantities or delivery schedules
or both; (v) amount of Buyer- furnished property, and, if this contract includes services, (vi) description of services to be performed; (vii) the time of performance (e.g., hours of the day, days of the week, etc.); (viii) place of performance, and
(ix) terms and conditions of this contract required to meet Buyer’s obligations under Government prime contracts or subcontracts. Seller shall comply immediately with such direction. 

  

	 	b.	If such change increases or decreases the cost or time required to perform this contract, Buyer and Seller shall negotiate an equitable adjustment in the price or schedule, or both,
to reflect the increase or decrease. Buyer shall modify this contract in writing accordingly. Unless otherwise agreed in writing, Seller must assert any claim for adjustment to Buyer’s Authorized Procurement Representative in writing within 25
days and deliver a fully supported proposal to Buyer’s Authorized Procurement Representative within 60 days after Seller’s receipt of such direction. Buyer may, at its sole discretion, consider any claim regardless of when asserted. If
Seller’s proposal includes the cost of property made obsolete or excess by the change, Buyer may direct the disposition of the property. Buyer may examine Seller’s pertinent books and records to verify the amount of Seller’s claim.
Failure of the parties to agree upon any adjustment shall not excuse Seller from performing in accordance with Buyer’s direction. 

  

	 	c.	 If Seller considers that Buyer’s conduct constitutes a change, Seller shall notify Buyer’s Authorized Procurement Representative immediately in writing as
to the nature of such 

  

 Page 2 of 20 

 Exhibit B 
 Negotiated Terms and Conditions 
  

	 	 
conduct and its effect upon Seller’s performance. Pending direction from Buyer’s Authorized Procurement Representative, Seller shall take no action
to implement any such change. 

  

	9.	DISPUTES. 

  
 Any dispute that arises under or is related to this contract that cannot be settled by mutual agreement of the parties may be decided by a court of competent jurisdiction. Pending final resolution of any dispute,
Seller shall proceed with performance of this contract according to Buyer’s instructions so long as Buyer continues to pay amounts not in dispute. 
  

	10.	FORCE MAJEURE. 

  
 Seller shall not be liable for the excess re-procurement costs pursuant to the “Cancellation for Default” article of this contract incurred by Buyer because of any failure to perform this contract under its
terms if the failure arises from causes beyond the control and without the fault or negligence of Seller. Examples of these causes are (a) acts of God or of the public enemy, (b) acts of the Government in either its sovereign or contractual
capacity, (c) fires, (d) floods, (e) epidemics, (f) quarantine restrictions, (g) strikes, (h) freight embargoes and (i) unusually severe weather. In each instance, the failure to perform must be beyond the control and without the fault or negligence
of Seller. If the delay is caused by a delay of a subcontractor of Seller and if such delay arises out of causes beyond the reasonable control of both, and without the fault or negligence of either, Seller shall not be liable for excess costs unless
the goods or services to be furnished by the subcontractor were obtainable from other sources in sufficient time to permit Seller to meet the required delivery schedules. Seller shall notify Buyer in writing within 10 days after the beginning of any
such cause. 
  

	11.	TERMINATION FOR CONVENIENCE 

  
 Buyer reserves the right to terminate this contract, or any part hereof, for its sole convenience. In the event of such termination, Seller shall immediately cease all
work hereunder and shall immediately cause any and all of its suppliers and subcontractors to cease work. In case of termination for convenience by Buyer of all or any part of this contract, Seller may submit a claim to Buyer within 60 days after
the effective date of termination. In no event shall Buyer be obligated to pay Seller any amount in excess of the contract price. The provisions of this article shall not limit or affect the right of Buyer to cancel this contract for default.

  

	12.	CANCELLATION FOR DEFAULT 

  

	 	a.	Buyer may, by written notice to Seller, cancel all or part of this contract (i) if Seller fails to deliver the Services within the time specified by this contract or any written
extension; (ii) if Seller fails to perform any other provision of this contract or fails to make progress, so as to endanger performance of this contract, and, in either of these two circumstances, does not cure the failure within 10 days after
receipt of notice from Buyer specifying the failure; or (iii) in the event of Seller’s bankruptcy, suspension of business, insolvency, appointment of a receiver for Seller’s property or business, or any assignment, reorganization or
arrangement by Seller for the benefit of its creditors. 

  

	 	b.	Seller shall continue work not canceled. 

  

	13.	ASSIGNMENT, DELEGATION AND SUBCONTRACTING 

  
 Seller shall not assign any of its rights or interest in this contract or subcontract all or substantially all of its performance of this contract without Buyer’s
prior written consent. Seller shall not delegate any of its duties or obligations under this contract. Seller may assign its right to monies due or to 

  

 Page 3 of 20 

 Exhibit B 
 Negotiated Terms and Conditions 
  

 
become due. No assignment, delegation or subcontracting by Seller, with or without Buyer’s consent, shall relieve Seller of any of its obligations under
this contract or prejudice any of Buyer’s rights against Seller whether arising before or after the date of any assignment. This article does not limit Seller’s ability to purchase standard commercial supplies or raw materials. 

 

	14.	INDEMNIFICATION, INSURANCE AND PROTECTION OF PROPERTY 

  

	 	a.	Indemnification Negligence of Seller or Subcontractor. Seller shall indemnify and hold harmless The Boeing Company, its subsidiaries, and their directors, officers, employees
and agents from and against all actions, causes of action, liabilities, claims, suits, judgments, liens, awards and damages of any kind and nature whatsoever for property damage, personal injury or death (including without limitation injury to or
death of employees of Seller or any subcontractor thereof) and expenses, costs of litigation and counsel fees related thereto or incident to establishing the right to indemnification, arising out of or in any way related to this contract, the
performance thereof by Seller or any subcontractor thereof or other third parties, including, without limitation, the provision of services, personnel, facilities, equipment, support, supervision or review. The foregoing indemnity shall apply only
to the extent of the negligence of Seller, any subcontractor thereof or their respective employees. In no event shall Seller’s obligations hereunder be limited to the extent of any insurance available to or provided by Seller or any
subcontractor thereof. Seller expressly waives any immunity under industrial insurance, whether arising out of statute or source, to the extent of the indemnity set forth in this paragraph (a). 

  

	 	b.	Commercial General Liability. If Seller or any subcontractor thereof will be performing work on Buyer’s premises, Seller shall carry and maintain, and ensure that all
subcontractors thereof carry and maintain, throughout the period when work is performed and until final acceptance by Buyer, Commercial General Liability insurance with available limits of not less than one million dollars ($1,000,000) per
occurrence for bodily injury and property damage combined. Such insurance shall contain coverage for all premises and operations, broad form property damage, contractual liability (including, without limitation, that specifically assumed under
paragraph (a) herein) and goods and completed-operations insurance with limits of not less than one million dollars ($1,000,000) per occurrence for a minimum of 24 months after final acceptance of the work by Buyer. Such insurance shall not be
maintained on a per-project basis unless the respective Seller or subcontractor thereof does not have blanket coverage. 

  

	 	c.	Automobile Liability. If licensed vehicles will be used in connection with the performance of the work, Seller shall carry and maintain, and ensure that any subcontractor
thereof who uses a licensed vehicle in connection with the performance of the work carries and maintains, throughout the period when work is performed and until final acceptance by Buyer, Business Automobile Liability insurance covering all
vehicles, whether owned, hired, rented, borrowed or otherwise, with available limits of not less than one million dollars ($1,000,000) per occurrence combined single limit for bodily injury and property damage. 

  

	 	d.	Workers’ Compensation. Throughout the period when work is performed and until final acceptance by Buyer, Seller shall, and ensure that any subcontractor thereof shall,
cover or maintain insurance in accordance with the applicable laws relating to Workers’ Compensation with respect to all of their respective employees working on or about Buyer’s premises. If Buyer is required by any applicable law to pay
any Workers’ Compensation premiums with respect to an employee of Seller or any subcontractor, Seller shall reimburse Buyer for such payment. 

  

 Page 4 of 20 

 Exhibit B 
 Negotiated Terms and Conditions 
  

	 	e.	Certificates of Insurance. Prior to commencement of the work, Seller shall provide for Buyer’s review and approval certificates of insurance reflecting full compliance
with the requirements set forth in paragraphs (b) Commercial General Liability, (c) Automobile Liability and (d) Workers’ Compensation. Such certificates shall be kept current and in compliance throughout the period when work is being performed
and until final acceptance by Buyer, and shall provide for 30 days advance written notice to Buyer in the event of cancellation. Failure of Seller or any subcontractor thereof to furnish certificates of insurance, or to procure and maintain the
insurance required herein or failure of Buyer to request such certificates, endorsements or other proof of coverage shall not constitute a waiver of Seller’s or subcontractor’s obligations hereunder. 

  

	 	f.	Self-Assumption. Any self-insured retention, deductibles and exclusions in coverage in the policies required under this article shall be assumed by, for the account of and at
the sole risk of Seller or the subcontractor which provides the insurance and to the extent applicable shall be paid by such Seller or subcontractor. In no event shall the liability of Seller or any subcontractor thereof be limited to the extent of
any of the minimum limits of insurance required herein. 

  

	 	g.	Protection of Property. Seller assumes, and shall ensure that all subcontractors thereof and their respective employees assume, the risk of loss or destruction of or damage
to any property of such parties whether owned, hired, rented, borrowed or otherwise. Seller waives, and shall ensure that any subcontractor thereof and their respective employees waive, all rights of recovery against Buyer, its subsidiaries and
their respective directors, officers, employees and agents for any such loss or destruction of or damage to any property of Seller, any subcontractor or their respective employees. 

  

	 	h.	At all times Seller shall, and ensure that any subcontractor thereof shall, use suitable precautions to prevent damage to Buyer’s property. If any such property is damaged by
the fault or negligence of Seller or any subcontractor thereof, Seller shall, at no cost to Buyer, promptly and equitably reimburse Buyer for such damage or repair or otherwise make good such property to Buyer’s satisfaction. If Seller fails to
do so, Buyer may do so and recover from Seller the cost thereof. 

  

	15.	Reserved 

  

	16.	ACCESS TO PLANTS AND PROPERTIES 

  
 Seller shall comply with all the rules and regulations established by Buyer for access to and activities in and around premises controlled by Buyer or Buyer’s
customer. 
  

	17.	Reserved 

  

	18.	PATENT, TRADEMARK AND COPYRIGHT INDEMNITY 

  
 Seller will indemnify, defend and hold harmless Buyer and its customer from all claims, suits, actions, awards (including, but not limited to, awards based on intentional
infringement of patents known at the time of such infringement, exceeding actual damages and/or including attorneys’ fees and/or costs), liabilities, damages, costs and attorneys’ fees related to the actual or alleged infringement of any
United States or foreign intellectual property right (including, but not limited to, any right in a patent, copyright, industrial design or semiconductor mask work, or based on misappropriation or wrongful use of information or documents) and
arising out of the manufacture, sale or use of Seller’s products by either Buyer or its customer. Buyer and/or its customer will duly 

  

 Page 5 of 20 

 Exhibit B 
 Negotiated Terms and Conditions 
  

 
notify Seller of any such claim, suit or action; and Seller will, at its own expense, fully defend such claim, suit or action on behalf of indemnities.
Seller will have no obligation under this article with regard to any infringement arising from (a) Seller’s compliance with formal specifications issued by Buyer where infringement could not be avoided in complying with such specifications or
(b) use or sale of goods in combination with other items when such infringement would not have occurred from the use or sale of those goods solely for the purpose for which they were designed or sold by Seller. For purposes of this article only, the
term Buyer will include The Boeing Company and all Boeing subsidiaries and all officers, agents and employees of Boeing or any Boeing subsidiary. 
  

	19.	CONFIDENTIAL, PROPRIETARY AND TRADE SECRET INFORMATION AND MATERIALS 

  

Buyer and Seller shall each keep confidential and protect from unauthorized use and disclosure all (a) confidential, proprietary and/or trade secret information; (b)
tangible items containing, conveying or embodying such information; and (c) tooling identified as being subject to this clause and obtained, directly or indirectly, from the other in connection with this contract or other agreement referencing this
contract (collectively referred to as “Proprietary Information and Materials”). Buyer and Seller shall each use Proprietary Information and Materials of the other only in the performance of and for the purpose of this contract Buyer shall
have the right to use, disclose and reproduce Seller’s Proprietary Information and Materials, and make derivative works thereof, for the purposes of testing, certification, use, sale or support of any product delivered under this contract. Any
such use, disclosure, reproduction or derivative work by Buyer shall, whenever appropriate, include a restrictive legend suitable for the particular circumstances. The restrictions on disclosure or use of Proprietary Information and Materials by
Seller shall apply to all materials derived by Seller or others from Buyer’s Proprietary Information and Materials. Upon Buyer’s request at any time, and in any event upon the completion, termination or cancellation of this contract,
Seller shall return to Buyer all of Buyer’s Proprietary Information and Materials and all materials derived there from, unless specifically directed otherwise in writing by Buyer. Seller shall not, without the prior written authorization of
Buyer, sell or otherwise dispose of (as scrap or otherwise) any parts or other materials containing, conveying, embodying or made in accordance with or by reference to any Proprietary Information and Materials of Buyer. Prior to disposing of such
parts or other materials as scrap, Seller shall render them unusable. Buyer shall have the right to audit Seller’s compliance with this article. Seller may disclose Proprietary Information and Materials of Buyer to its subcontractors as
required for the performance of this contract, provided that each such subcontractor first agrees in writing to the same obligations imposed upon Seller under this article relating to Proprietary Information and Materials. Seller shall be liable to
Buyer for any breach of such obligation by such subcontractor. The provisions of this article are effective in lieu of any restrictive legends or notices applied to Proprietary Information and Materials. The provisions of this article shall survive
the performance, completion, termination or cancellation of this contract. 
  

	20.	PUBLICITY 

  
 Without Buyer’s prior written approval, Seller shall not, and shall require that its subcontractors at any tier shall not, release any publicity, advertisement, news release or denial or confirmation of same
regarding this contract or the Services or program to which it pertains. Seller shall be liable to Buyer for any breach of such obligation by any subcontractor. 
  

 Page 6 of 20 

 Exhibit B 
 Negotiated Terms and Conditions 
  

	21.	EVIDENCE OF CITIZENSHIP OR IMMIGRANT STATUS 

  
 Buyer may be required to obtain information concerning citizenship or immigrant status of Seller’s personnel or Seller’s subcontractor personnel entering the
premises of Buyer. Seller agrees to furnish this information before commencement of work and at any time thereafter before substituting or adding new personnel to work on Buyer’s premises. Information submitted by Seller shall be certified by
an authorized representative of Seller as being true and correct. 
  

	22.	GRATUITIES 

  
 Seller warrants that neither it nor any of its employees, agents or representatives have offered or given, or will offer or give, any gratuities to Buyer’s employees, agents or representatives for the purpose of
securing this contract or securing favorable treatment under this contract. 
  

	23.	Reserved 

  

	24.	Reserved 

  

	25.	RIGHTS AND REMEDIES 

  
 Any failures, delays or forbearances of either party in insisting upon or enforcing any provisions of this contract, or in exercising any rights or remedies under this contract, shall not be construed as a waiver or
relinquishment of any such provisions, rights or remedies; rather, the same shall remain in full force and effect. Except as otherwise limited in this contract, the rights and remedies set forth herein are cumulative and in addition to any other
rights or remedies that the parties may have at law or in equity. If any provision of this contract is or becomes void or unenforceable by law, the remainder shall be valid and enforceable. 
  

	26.	COMPLIANCE WITH LAWS 

  
 Seller shall comply with all applicable statutes and government rules, regulations and orders, including those pertaining to United States Export Controls. 
  

	27.	GOVERNING LAW 

  
 This contract shall be governed by and construed in accordance with the laws of the state of Washington. No consideration shall be given to Washington’s conflict of laws rules. This contract excludes the
application of the 1980 United Nations Convention on Contracts for the International Sale of Goods. 
  

	28.	Reserved 

  

	29.	PACKING AND SHIPPING 

  

	 	a.	Seller shall pack the materials to prevent damage and deterioration. Seller shall comply with carrier tariffs. Unless this contract specifies otherwise, the price includes shipping
charges for materials sold F.O.B. destination. Unless otherwise specified in this contract, materials sold F.O.B. place of shipment shall be forwarded collect. Seller shall make no declaration concerning the value of the materials shipped except on
the materials where the tariff rating is dependent upon released or declared value. In such event, Seller shall release or declare such value at the maximum value within the lowest rating. Buyer may charge Seller for damage to or deterioration of
any materials resulting from improper packing or packaging. 

  

	 	b.	 Unless this contract specifies otherwise, Seller will ship the materials in accordance with the following instructions: (i) Shipments by Seller or its
subcontractors must include packing sheets containing Buyer’s contract number, line item number, description and quantity of 

  

 Page 7 of 20 

 Exhibit B 
 Negotiated Terms and Conditions 
  

	 	 
materials shipped, part number or size, if applicable, and appropriate evidence of inspections. A shipment containing hazardous and non-hazardous materials
must have separate packing sheets for the hazardous and non-hazardous materials. Seller shall not include vermiculite or other hazardous substance in any packing material included with the Goods. Items shipped on the same day will be consolidated on
one bill of lading or airbill unless Buyer’s Authorized Procurement Representative authorizes otherwise. The shipping documents will describe the material according to the applicable classification and/or tariff. The total number of shipping
containers will be referenced on all shipping documents. Originals of all Government bills of lading will be surrendered to the origin carrier at the time of shipment. (ii) Seller will not insure any FOB origin shipment unless authorized by Buyer.
(iii) Seller will label each shipping container with the contract number and the number that each container represents of the total number being shipped (e.g., box 1 of 2, box 2 of 2). (iv) Buyer will select the carrier and mode of transportation
for all shipments where freight costs will be charged to Buyer. (v) Seller will include copies of documentation supporting prepaid freight charges (e.g., carrier invoices or UPS shipping log/manifest), if any, with its invoices. (vi) If Seller is
unable to comply with the shipping instructions in this contract, Seller will contact Buyer’s Traffic Management Department referenced elsewhere in this contract or Buyer’s Authorized Procurement Representative.

  

	30.	Reserved 

  

	31.	Reserved 

  

	32.	Reserved 

  

	33.	ACCEPTANCE 

  
 Buyer shall accept the Services or give Seller written notice of rejection within 45 days after delivery, unless otherwise stated in the purchase order, notwithstanding any payment or prior test or inspection. No
inspection, test, delay or failure to inspect or test or failure to discover any defect or other nonconformance shall relieve Seller of any of its obligations under this contract or impair any rights or remedies of Buyer or Buyer’s customers.

  

	34.	REJECTION 

  

	 	a.	If Seller delivers nonconforming Services, Buyer may require Seller to promptly correct or replace the nonconforming Services. 

  

	 	b.	Seller shall not redeliver corrected or rejected Services without disclosing the former rejection or requirement for correction. Seller shall disclose any corrective action taken.
All repair, replacement and other correction and redelivery shall be completed within the original delivery schedule or such later time as Buyer may reasonably direct. 

  

	35.	SELLER NOTICE OF DISCREPANCIES 

  
 Seller shall immediately notify Buyer in writing when discrepancies in Seller’s process or materials are discovered or suspected which may affect the Services
delivered or to be delivered under this contract. 
  

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 Exhibit B 
 Negotiated Terms and Conditions 
  

	36.	SCHEDULE 

  

	 	a.	Seller shall strictly adhere to the shipment or delivery schedules specified in this contract. In the event of any anticipated or actual delay, Seller shall promptly notify Buyer in
writing of the reasons for the delay. 

  

	 	b.	Seller may deliver Services prior to the scheduled delivery date(s) unless otherwise directed by Buyer. 

  

	37.	SUSPENSION OF WORK 

  

	 	a.	Buyer’s Authorized Procurement Representative may, by written order, suspend all or part of the work to be performed under this contract for a period not to exceed 100 days.
Within such period of any suspension of work, Buyer shall (i) cancel the suspension of work order; (ii) terminate this contract in accordance with the “Termination for Convenience” article of this contract; (iii) cancel this contract in
accordance with the “Cancellation for Default” article of this contract; or (iv) extend the stop work period. 

  

	 	b.	Seller shall resume work whenever a suspension is canceled. Buyer and Seller shall negotiate an equitable adjustment in the price or schedule or both if (i) this contract is not
canceled or terminated; (ii) the suspension results in a change in Seller’s cost of performance or ability to meet the contract delivery schedule; and (iii) Seller submits a claim for adjustment within 20 days after the suspension is canceled.

  

	38.	ENTIRE AGREEMENT 

  
 This contract contains the entire agreement of the parties and supersedes any and all prior agreements, understandings and communications between Buyer and Seller related to the subject matter of this contract. No
amendment or modification of this contract shall bind either party unless it is in writing and is signed by Buyer’s Authorized Procurement Representative and an authorized representative of Seller. 
  
 BOEING CORPORATE CREDIT OFFICE 
  
 The Boeing Corporate Credit Office shall obtain Seller’s financial data made available
through the Securities and Exchange Commission (SEC) via 10-Q and 10-K reporting requirements. In the event that Seller is no longer required to file forms 10-Q and 10-K with the SEC, Seller shall provide the same financial data, on a quarterly
basis, as requested by the Boeing Corporate Credit Office. In the event of deterioration in Supplier’s financial condition or performance, supplementary financial data required to assess the level of risk may be requested by the Boeing
Corporate Credit Office. This type of business data typically includes - but is not always limited to - schedules of accounts receivable and payable, major lines of credit, creditors, firm backlog and projected operating results. Copies of
information that is prepared in the Seller’s normal course of business will be made available within 5 business days of any written request by Boeing’s Corporate Credit Office or upon their completion if that timeframe is greater than 5
business days. Information that is not prepared in the normal course of business will be made available within 10 working days of any written request. Boeing shall treat all such information as confidential. 
  

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 Exhibit B 
 Negotiated Terms and Conditions 
  

 General Terms and Conditions 863. - Additional General Provisions (Fixed Price Services Contract)

  
 The following terms and conditions are in addition to the terms and
conditions in GP2, The Boeing Company General Provisions (Fixed Price Services Contract). In some cases, they modify or supplement terms and conditions with the same or similar titles as in GP2. 
  

	1.	INSPECTIONS 

  
 Seller will keep records evidencing inspections, if required, and their results and will make these records available to buyer and the Government, where applicable, during contract performance and for four years after
final payment. This requirement, if applicable, will be identified in each request for proposal, and specifically stated in the resultant Amendment to this Agreement. 
  

	2.	INVOICE AND PAYMENT 

  
 For each shipment of materials or completed item of services, Seller will submit an original invoice marked “Original” and one copy marked “Copy” to Buyer’s appropriate Accounts Payable.

  

	3.	Reserved 

  

	4.	Reserved 

  

	5.	SUBCONTRACTING 

  
 (A) Seller agrees that no subcontract placed under this contract will provide for payment on a cost-plus-a-percentage-of-cost basis. 
  

	6.	SHIPPING INSTRUCTIONS 

  
 Seller will ship the goods in accordance with the instructions set forth below and the specific routing terms incorporated in this contract. 
  
 (A) Buyer’s contract number will be referenced on all shipping documents. 
  
 (B) Notwithstanding article 3(b)(v) in GP1, “Prepay and Add” is not authorized.

  
 (C) Third Party/Direct Shipments must adhere to the instructions set forth
herein and, if Buyer is responsible for the freight costs, must be shipped “Third Party Collect” to Buyer. 
  
 (D) Seller will contact Buyer’s Traffic Management Department referenced elsewhere in this contract or Buyer’s Authorized Procurement Representative prior to
shipping the following types of shipments: 
  

	 	(i)	Classified Shipments 

  

	 	(ii)	Electronics 

  

	 	(iii)	Shipments of hazardous materials, including explosives 

  

	 	(iv)	Oversize shipments 

  

	 	(v)	Refrigeration shipments 

  

	 	(vi)	Shipments exceeding 1000 pounds in gross weight 

  

	 	(vii)	Shipments requiring special handling or equipment (i.e., air ride equipment, fragile items,  heavy haul trailers, etc.) 

  

	 	(viii)	Same-day or courier deliveries 

  

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 Exhibit B 
 Negotiated Terms and Conditions 
  

	 	(ix)	Counter-to-counter airfreight 

  

	 	(x)	Truckload shipments 

  
 (E) Reserved 
  
 (F) Seller will contact
Buyer’s Traffic Management Department referenced elsewhere in this contract or Buyer’s Authorized Procurement Representative with inquiries or requests for special instructions. 
  

	7.	REPRESENTATIONS AND CERTIFICATIONS 

  
 This article includes representations and certifications that Buyer generally is required to obtain from Seller in order to comply with various provisions of its
Government contracts. They have been stated in such a way as to allow Seller’s acceptance of this contract to serve as representations and certifications that will present no bar to Buyer’s award of this contract. If, upon receipt of a
solicitation that precedes a contract that will incorporate these terms and conditions, Seller believes it is not prepared to make these representations and certifications, it will so notify Buyer as part of its response to the solicitation.

  
 By the acceptance of this order, Seller makes the following representations
and certifications: 
  
 (A) Certification of Non-segregated Facilities

  

	 	(i)	“Segregated facilities,” as used in this provision, means any waiting rooms, work areas, rest rooms and wash rooms, restaurants and other eating areas, time clocks, locker
rooms and other storage or dressing areas, parking lots, drinking fountains, recreation or entertainment areas, transportation, and housing facilities provided for employees, that are segregated by explicit directive or are in fact segregated on the
basis of race, color, religion, or national origin because of habit, local custom, or otherwise. 

  

	 	(ii)	Seller certifies that it does not and will not maintain or provide for its employees any segregated facilities at any of its establishments, and that it does not and will not permit
its employees to perform their services at any location under its control where segregated facilities are maintained. The Seller agrees that a breach of this certification is a violation of the Equal Opportunity clause in the contract.

  

	 	(iii)	Seller further agrees that (except where it has obtained identical certifications from proposed subcontractors for specific time periods) it will – 

  

	 	(a)	Obtain identical certifications from proposed subcontractors before the award of contracts under which the subcontractor will be subject to the Equal Opportunity clause;

  

	 	(b)	Retain the certifications in the files; and 

  

	 	(c)	Forward the following notice to the proposed subcontractors (except if the proposed subcontractors have submitted identical certifications for specific time periods).

  
 Notice to Proposed Subcontractors of Requirement for
Certifications of Non-segregated Facilities. A Certification of Non-segregated Facilities must be submitted before the award of a subcontract under which the subcontractor will be subject to the Equal Opportunity clause. The certification may be
submitted either for each subcontract or for all subcontracts during a period (i.e., quarterly, semiannually, or annually). 
  
 NOTE: The penalty for making false statements in bids is prescribed in 18 U.S.C. 1001. 
  

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 Exhibit B 
 Negotiated Terms and Conditions 
  

 (B) Previous Contracts and Compliance Reports 
  
 Seller represents that: 
  

	 	(i)	It has participated in a previous contract or subcontract subject to the Equal Opportunity clause of this solicitation, the clause originally contained in Section 301 of Executive
Order No. 10925, or the clause contained in Section 201 of Executive Order No. 11114. 

  

	 	(ii)	It has filed all Compliance Reports. 

  

	 	(iii)	Representations indicating submission of required compliance reports, signed by proposed subcontractors, will be obtained. 

  
 (C) Affirmative Action Compliance (applicable if Seller has 50 or more employees)

  
 Seller represents that: 
  

	 	(i)	If required to do so by the rules and regulations of the Secretary of Labor (41 CFR 60-1 and 60-2), it has developed and has on file a written Affirmative Action Compliance Program
at each of its establishments, or 

  

	 	(ii)	In the event such a program does not presently exist, and this contract is for $50,000 or more, that it will develop and place in operation such a written Affirmative Action
Compliance Program within 120 days from the award of this contract. 

  
 (D) Certification Regarding Debarment, Suspension, Proposed Debarment, and Other Responsibility Matters 
  
 Seller certifies that, to the best of its knowledge and belief, it is not presently debarred, suspended, proposed for debarment, or ineligible from entering into
contracts with the Executive Branch of the Federal Government.  
  
 (E) Clean Air and Water Certification 
  

	 	(i)	Seller certifies that at the time it submitted its proposal none of the facilities to be used in the performance of this contract were listed on the Environmental Protection Agency
(EPA) List of Violating Facilities. 

  

	 	(ii)	Seller further certifies that subsequent to submittal of its proposal and prior to award of this contract it has not received any communication from the Administrator, or a
designee, of the EPA, indicating that any facility that Seller proposes to use for the performance of this contract is under consideration to be listed on the EPA List of Violating Facilities 

  

	 	(iii)	Seller will include a certification substantially the same as this certification, including this paragraph (iii), in every nonexempt subcontract. 

  

	8.	Reserved 

  

	9.	Reserved 

  

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 Exhibit B 
 Negotiated Terms and Conditions 
  

 NOTE: ARTICLES 10 THROUGH 12 APPLY ONLY IF THIS CONTRACT REQUIRES SELLER TO WORK ON FACILITIES OWNED OR CONTROLLED BY
BUYER OR BUYER’S CUSTOMERS. 
  

	10.	SECURITY 

  
 All employees, agents, and representatives of Seller or its subcontractors who are expected to enter premises owned or controlled by Buyer or the Government may, at Buyer’s discretion, be required to provide
Buyer’s Security personnel birth certificates and/or other evidence of citizenship satisfactory to Buyer before being allowed within any restricted area. All such employees, agents, and representatives are bound by the provisions of the United
States Criminal Code relating to espionage and sabotage and will conform to the standards and requirements established by the Government and Buyer’s Security. The name, social security number, and birth certificate and/or other satisfactory
evidence of citizenship of each such employee, agent, or representative will be submitted by Seller, if requested by Buyer, prior to the time for reporting to work. Selected positions and assignments of Seller’s employees may require a security
clearance. 
  

	11.	SAFEGUARDS 

  
 If this contract requires work to be performed on property owned or controlled by Buyer or the Government, Seller will provide suitable and adequate protection of the work, property adjacent to the work, and persons
in the immediate vicinity of the work. 
  

	12.	BADGING REQUIREMENTS FOR FOREIGN PERSONS 

  
 (A) An employee of Seller who is not a U.S. citizen and does not have a permanent-resident-alien “green” card on his or her person may not be admitted to
Buyer’s or Buyer’s customer’s facilities for purposes of performing work without special arrangements. 
  
 (B) If foreign persons are to be used for work at Buyer’s or Buyer’s customer’s facilities, advance notice must be provided to Buyer’s Authorized
Procurement Representative at least three weeks prior to the scheduled need for access to Buyer’s or Buyer’s customer’s facilities. 
  
 (C) The following specific information must be provided for each such foreign national: 
  

	 	(i)	Complete name and address of employee 

  

	 	(ii)	Company name and address 

  

	 	(iii)	Contract number 

  

	 	(iv)	Detailed description of employee’s duties 

  

	 	(v)	Nationality 

  

	 	(vi)	Date and place of birth (country of origin) 

  

	 	(vii)	Passport number and expiration date 

  

	 	(viii)	Employment authorization and/or work permit number issued by the Immigration and Naturalization Service 

  

	 	(ix)	Access requirements (i.e., facility locations, building number(s), controlled access areas, automated information systems, etc.) 

  

	 	(x)	Duration of need for access to Buyer’s or Buyer’s customer’s facilities. 

  
 (D) Buyer’s Authorized Procurement Representative will make arrangements for appropriate badging for Seller’s foreign national
employees, or will notify Seller if unescorted access is denied or delayed. 
  

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 Exhibit B 
 Negotiated Terms and Conditions 
  

 (E) Seller agrees that it will not employ for the performance of work at Buyer’s or Buyer’s customer’s
facilities any individuals who are not legally authorized to work in the United States. 
  
 (F) Nothing in this clause shall be construed as requiring or encouraging violation of the labor laws of the United States, including without limitation, those pertaining to equal employment opportunity. 
  

	13.	Reserved 

  
 949. Government Flow Downs (9/20/01) 
  
 (a) FAR CLAUSES 
  
 The following contract clauses are incorporated by reference from the Federal Acquisition Regulation and apply to the extent indicated. Unless provided for elsewhere in
this contract, only subparagraphs (22), (23), (24), and (389) of this paragraph (a) shall apply to any portion of this contract that is for commercial items or commercial components, as those terms are defined at FAR 52.202-1. In all of the
following clauses, unless otherwise indicated, “Government” and “Contracting Officer” shall mean Buyer, “Contractor” and “Offeror” shall mean Seller, and all reference to “disputes”, the
“disputes clause”, or the “Contract Disputes Act” shall be references to the Disputes clause of the General Provisions of this contract. 
  
 (22) 52.222-26 Equal Opportunity (FEB 1999) [subparagraphs (b)(l) through (11) only.] In accordance with FAR 22.807(b)(2), this clause does not apply to
work performed outside the United States by employees who were not recruited within the United States. In accordance with FAR 22.801, United States means the several states, the District of Columbia, the Virgin Islands, the Commonwealth of Puerto
Rico, Guam, American Samoa, the Commonwealth of the Northern Mariana Islands, and Wake Island. 
  
 (23) 52.222-35 Affirmative Action for Special Disabled and Vietnam Era Veterans (APR 1998). This clause applies only if this contract is for $10,000 or
more. In accordance with FAR 22.1308(a)(l)(i), this clause does not apply to work performed outside of the United States by employees recruited outside of the United States. United States includes the States, the District of Columbia, the Virgin
Islands, the Commonwealth of Puerto Rico, and Guam. 
  
 (24)
52.222-36 Affirmative Action for Handicapped Workers (JUN 1998). This clause applies only if this contract exceeds $10,000. In accordance with FAR 22.1408(a)(l), this clause does not apply to work performed outside the United States by employees
recruited outside of the United States. United States includes the several states, the District of Columbia, the Virgin Islands, the Commonwealth of Puerto Rico, Guam, American Samoa, the Commonwealth of the Northern Mariana Islands, and Wake
Island. 
  
 (39) 52.244-6 Subcontracts for Commercial Items and
Commercial Components (OCT 1998) 
  

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 Exhibit B 
 Negotiated Terms and Conditions 
  

 (b) NASA FAR SUPPLEMENT CLAUSES 
  
 The following contract clauses are incorporated by reference from the National Aeronautics
and Space Administration Federal Acquisition Regulation Supplement and apply to the extent indicated. Unless provided for elsewhere in this contract, only subparagraphs (8), (10) and (12) of this paragraph (b) shall apply to any portion of this
contract that is for commercial items or commercial components, as those terms are defined at FAR 52.202-1. In all of the following clauses, unless otherwise indicated, “Government” and “Contracting Officer” shall mean Buyer, and
“Contractor” and “Offeror” shall mean Seller, and all reference to “disputes”, the “disputes clause”, or the “Contract Disputes Act” shall be references to the Disputes clause of the General
Provisions of this contract. 
  
 (10) 18-52.227-86 Commercial
Computer Software Licensing (DEC 1987). This clause only applies if technical data or computer software will be generated or delivered. 
  
 (12) 18-228-76 Cross Waiver of Liability for Space Station Activities (SEP 1993). For the purposes of NASA clause 18-52.228-76 “Cross-Waiver of
Liability for Space Station Activities”, Russia shall be considered a “Partner State” even though they have not yet signed the International Governmental Agreement (IGA) since Russia has agreed to a Space Station cross-waiver of
liability under the Interim Agreement for Space Station between the United States and Russia, dated June 23, 1994. This clause applies only if this contract exceeds $100,000. 
  
 (c) MANNED SPACE FLIGHT ITEM (JFS 18-52.246-73) (OCT 1986) 
  
 The Supplier shall include the following statement in all subcontracts and purchase orders placed by it in support of this contract, without
exception as to amount or subcontract level: 
  
 “FOR USE IN HUMAN SPACE
FLIGHT; MATERIALS, MANUFACTURING, AND WORKMANSHIP OF HIGHEST QUALITY STANDARDS ARE ESSENTIAL TO ASTRONAUT SAFETY. 
  
 IF YOU ARE ABLE TO SUPPLY THE DESIRED ITEM WITH A HIGHER QUALITY THAN THAT OF THE ITEMS SPECIFIED OR PROPOSED, YOU ARE REQUESTED TO BRING THIS FACT TO THE IMMEDIATE
ATTENTION OF THE PURCHASER.” 
  
 (e) HAZARDOUS MATERIAL IDENTIFICATION AND
MATERIAL SAFETY DATA (ALTERNATE I) (NOV 1991) 
  
 This clause applies only if
hazardous or toxic materials or chemicals are to be delivered under this contract. 
  
 (1) “Hazardous material”, as used in this clause, includes any material defined as hazardous under the latest version of Federal Standard No. 313 (including revisions adopted during the term of the
contract). 
  
 (2) The offeror must list any hazardous material,
as defined in paragraph (a) of this clause, to be delivered under this contract. The hazardous material shall be properly identified and include any applicable identification number, such as National Stock Number or Special Item Number. 

 

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 Exhibit B 
 Negotiated Terms and Conditions 
  

 This information shall also be included on the Material Safety Data Sheet submitted under this
contract. 
  
 (3) The apparently successful offeror, by
acceptance of the contract, certifies that the list in paragraph (b) of this clause is complete. This list must be updated during performance of the contract whenever the Contractor determines that any other material to be delivered under this
contract is hazardous. 
  
 (4) The apparently successful offeror
agrees to submit, for each item as required prior to award, a Material Safety Data Sheet, meeting the requirements of 29 CFR 1910.1200(g) and the latest version of Federal Standard No. 313, for all hazardous material identified in paragraph (b) of
this clause. Data shall be submitted in accordance with Federal Standard No. 313, whether or not the apparently successful offeror is the actual manufacturer of these items. Failure to submit the Material Safety Data Sheet prior to award may result
in the apparently successful offeror being considered non-responsible and ineligible for award. 
  
 (5) If, after award, there is a change in the composition of the item(s) or a revision to Federal Standard No. 313, which renders incomplete or inaccurate
the data submitted under paragraph (d) of this clause or the certification submitted under paragraph (c) of this clause, the Contractor shall promptly notify the Contracting Officer and resubmit the data. 
  
 (6) Neither the requirements of this clause nor any act or failure to act by
the Government shall relieve the Contractor of any responsibility or liability for the safety of Government, Contractor, or subcontractor personnel or property. 
  
 (7) Nothing contained in this clause shall relieve the Contractor from complying with applicable Federal, State, and local
laws, codes, ordinances, and regulations (including the obtaining of licenses and permits) in connection with hazardous material. 
  
 (8) The Government’s rights in data furnished under this contract with respect to hazardous material are as follows: 
  
 (A) To use, duplicate and disclose any data to which this clause is
applicable. The purposes of this right are to— 
  
 (i)
Apprise personnel of the hazards to which they may be exposed in using, handling, packaging, transporting, of disposing of hazardous materials; 
  
 (ii) Obtain medical treatment for those affected by the material; and 
  
 (iii) Have others use, duplicate, and disclose the data for the Government for these purposes. 
  
 (B) To use, duplicate, and disclose data furnished under this clause, in
accordance with subparagraph (h)(1) of this clause, in precedence over any other clause of this contract providing for rights in data. 
  

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 Exhibit B 
 Negotiated Terms and Conditions 
  

 (C) The Government is not precluded from using similar or identical data acquired from other sources.

  
 (9) Except as provided in paragraph (i)(2), the Contractor
shall prepare and submit a sufficient number of Material Safety Data Sheets (MSDS), meeting the requirements of 29 CFR 1910.1200(g) and the latest version of Federal Standard No. 313, for all hazardous materials identified in paragraph (b) of this
clause. 
  
 (A) For items shipped to consignees, the Contractor
shall include a copy of the MSDS with the packing list or other suitable shipping document that accompanies each shipment. Alternatively, the Contractor is permitted to transmit MSDS to consignees in advance of receipt of shipments by consignees, if
authorized in writing by the Contracting Officer. 
  
 (B) For
items shipped to consignees identified by mailing address as agency depots, distribution centers or customer supply centers, the Contractor shall provide one copy of the MSDS in or on each shipping container. If affixed to the outside of each
container, the MSDS must be placed in a weather resistant envelope. 
  
 (g) EXPORT
OF TECHNICAL DATA, COMPUTER SOFTWARE, OR HARDWARE IN THE CONDUCT OF SPACE STATION RELATED ACTIVITIES 
  
 This clause applies under the conditions specified in paragraph 5. 
  
 (1) During the conduct of Space Station related activities, including Shuttle/Mir activities, NASA may have a need to deliver, disclose, or transfer to a
foreign entity or person (“export”) technical data, computer software, or hardware developed, used, or required to be delivered by the Contractor in the performance of this contract. When such a need arises, NASA or the Buyer may exercise
the applicable exemptions, general licenses, existing NASA export licenses or other approvals available to a Federal agency under the U.S. export control laws, and may effect the export of such technical data, computer software, or hardware for NASA
or the Buyer by direction to the Seller. 
  
 (2) When directed in
writing by the Contracting Officer, or designated representative, or the Buyer’s Authorized Purchasing Representative, the Seller, acting as an agent of NASA for the purposes of export control, shall export on behalf of NASA specifically
identified technical data, computer software, or hardware to a named foreign entity or person, in the manner and under the conditions provided for in the direction. 
  
 (3) Any export made in accordance with this clause shall be limited to only that technical data, computer software, and
hardware which NASA or the Buyer’s Authorized Purchasing Representative specifically identifies and authorizes the Seller to export, in the manner and under the conditions provided in the authorization. All other exports of technical data,
computer software and hardware by the Contractor, whether related to the performance of this contract or otherwise, are subject to the applicable requirements of the U.S. export control laws and regulations. 
  

 Page 17 of 20 

 Exhibit B 
 Negotiated Terms and Conditions 
  

 (4) Nothing contained in this clause shall affect the protection or allocation of rights to technical
data or computer software between Buyer and Seller or any Seller lower tier subcontractors as provided for in this subcontract or subcontract hereunder; nor shall this clause imply any license or affect the scope of any license otherwise granted to
the Government or the Buyer or the recipient of the transferred or disclosed technical data or computer software. 
  
 (5) The Seller agrees to include this clause in all subcontracts at any tier (suitably modified to reflect the relationship of the parties), the
performance of which may require the development, delivery, or use of technical data, computer software, or hardware. If there is any question as to such a need by the Seller or a prospective lower tier subcontractor, the Seller shall promptly
notify the Buyer’s Authorized Purchasing Representative, and not proceed with subcontract award without further instruction. 
  
 (6) When this clause is included in a subcontract, the Buyer and Seller agree that any direction given by the Contracting Officer or designated
representative or by the Buyer’s Authorized Representative to the Seller under this clause will be given by the Seller to a Seller lower tier subcontractor when required to effect the export for NASA in accordance with this clause. 

 
 (o) PRECEDENCE 
  
 (1) If the various parts of this contract are inconsistent, the following order of precedence will apply: (i) terms and
conditions on the face of the purchase order, contract, or agreement, (ii) this clause 949, (iii) special terms and conditions not listed elsewhere, (iv) Clause 862, 863, 864, or 865; (iii) General Provisions GP1, GP2, GP3, or GP4, (v) Buyer or NASA
drafted or controlled drawings and specifications; (v) Boeing Quality System documents, (vi) all other Buyer or NASA drafted or controlled documents incorporated in this contract by reference, and lastly, with lowest precedence, (vii) all other
documents incorporated in this contract by reference. 
  
 (2)
Buyer’s drawings and specifications will prevail over any subsidiary documents referenced therein. Seller will not use any specification in lieu of those contained in this contract without the written consent of Buyer’s Authorized
Procurement Representative. 
  
 (3) Seller should promptly bring
any perceived inconsistency in this contract to the attention of Buyer’s Authorized Purchasing Representative, even if that inconsistency can be resolved through the use of this clause. 
  
 Technical Clauses 
  
 206. Reporting of Discrepancies in Buyer Drawings (10/1/96) 
  
 Discrepancies, omissions, and the need for clarifications or interpretations of any nature
encountered by Seller in respect of Buyer-furnished drawings or engineering data will be brought to the attention of Buyer’s authorized purchasing representative for resolution. 
  

 Page 18 of 20 

 Exhibit B 
 Negotiated Terms and Conditions 
  

 207. Technical Direction (10/1/96) 
  
 Performance of the work hereunder will be subject to the technical direction of Buyer’s Program Technical Representative. As used
herein, technical direction is direction to Seller within the scope and price of this contract. Direction that involves a change in price, period of performance, scope of work, or other provisions of this contract will be issued in accordance with
the terms of the Changes clause of this contract, and Buyer will not be liable for any adjustment in price, period of performance, or any other provision of this contract by reason of any direction from said Technical Representative or any other
person unless such direction is issued in writing by Buyer’s authorized purchasing representative under the Changes clause. 
  
 209. Right to Use Technical Information (10/1/96) 
  
 Except where prohibited by Seller’s appropriate restrictive-use markings or legends, Buyer shall be free to use technical data delivered to the Buyer by the Seller
in response to delivery orders duly placed under this contract for any purpose whatsoever. In this regard, Buyer may duplicate, distribute, disclose, resell, or incorporate delivered data in any manner desired for any use desired, except as may
constitute patent infringement. Where unrestricted use of data is required by the Buyer, it will be specified as a requirement of the specific purchase order. In such cases, Seller’s deliverable data shall be free of associated restrictive use
markings or legends. 
  
 Administrative Clauses 
  
 312.– Seller Compliance With Occupational Safety & Health Act of 1970
(10/1/96) 
  
 (a) Seller agrees to periodically review and identify any
hazardous substance, within the meaning of the Occupational Safety and Health Act of 1970 (Public Law 91-596), which constitutes a deliverable item or is incorporated in an end item for delivery hereunder and to advise Buyer at least 30 days in
advance of (i) any shipment requiring the warning label proposed to be affixed to any container utilized to transport the hazardous substance or (ii) the temporary storage of such substances on the premises of Seller after completion of manufacture
but prior to eventual delivery. Specific approval of the proposed warning label design is a necessary prerequisite to any shipment authorization or certification for payment of completed goods purchased by Buyer. 
  
 (b) Seller agrees to comply with the provisions of the Occupational Safety and Health Act of
1970 (P.L. 91-596) and the standards and regulations issued thereunder and certifies that all goods furnished under this contract will conform to and comply with said standards and regulations. Seller agrees to indemnify, save harmless, and defend
Buyer and its directors, officers, employees, agents, successors, and assigns from and against any and all liabilities, claims, losses, damages, fines, penalties, forfeitures, and the costs and expenses incident thereto (including costs of defense,
settlement, and reasonable attorney’s fees) which it or they may hereafter incur, become responsible for, or pay out as a result of, or arising out of, Seller’s breach of any of its duties addressed in this clause. 
  
 316. Audit Rights(I0/l/96). This clause will apply only in the event SPACEHAB
makes a claim to Boeing. 
  
 (a) In the event of a claim, Seller will maintain
books, records, documents, other supporting data, and accounting procedures and practices sufficient to properly reflect all direct and indirect costs of whatever nature claimed. 
  

 Page 19 of 20 

 Exhibit B 
 Negotiated Terms and Conditions 
  

 (b) In the event of a claim, Seller’s books, records, documents, and other supporting data will be made
available a US Government audit agency, for inspection and audit as required by Buyer in conjunction with the negotiation of, any claims, including termination claims and claims for equitable adjustment (c) In the event of a claim Seller will, upon
request by a US Government audit agency, furnish a statement of related historical cost experience by cost element or in such form as stipulated by a US Government audit agency, together with applicable projections and supporting data. 

 
 (d) Seller agrees to include this clause, including this paragraph (d), in all lower-tier
subcontracts when certified cost or pricing data is required. 
  
 328.
– Release Void (10/1/96) 
  
 Neither Buyer nor Seller will require
waivers or releases of any personal rights from employees or representatives of the other in connection with visits to its premises, and Buyer and Seller agree that no such releases or waivers will be pleaded by them or third persons in any action
or proceeding. 
  
 329. Plant Rules and Government Clearance (10/1/96)

  
 Employees and agents of Buyer and Seller will, while on premises of
the other, comply with all plant rules and regulations, including, where required by Government regulations, submission of appropriate clearance from the U.S. Department of Defense or other concerned federal agency. 
  
 331. Prime Contract Flow Down Provisions (10/1/96) 
  
 This contract may be amended to the extent necessary to incorporate additional provisions
required to meet Buyer’s obligations under the prime contract to which this order is charged. 
  
 354. Safety and Accident Prevention (10/1/96) 
  
 In performing work under this contract on a Government installation, Seller will (i) conform to the specific safety requirements contained in this contract, (ii) for those related activities not directly addressed by
this contract, conform to the applicable safety rules prescribed by the Government installation, and (iii) take such additional precautions as Buyer or the Contracting Officer under Buyer’s Government contract may reasonably require for safety
and accident prevention purposes. Any violation of such rules and requirements, unless promptly corrected as directed by Buyer or the Contracting Officer, will be grounds for termination of this contract in accordance with the default provisions
hereof. Buyer may, by written order, direct additional safety and accident standards as may be required under Buyer’s Government contract, and any adjustments resulting from such direction will be in accordance with the Changes clause of this
contract. 
  
 374. Payment in U.S. Dollars (10/1/96) 
  
 The price of this contract is based on a fixed exchange rate and no adjustments will be made
for fluctuations in the foreign currency exchange rate. 
  
 Quality Clauses

  
 Applicable Quality Clauses will be incorporated on individual
Amendments, which will be specific to the Task/Product being performed/delivered. Quality Clauses which may be applicable can be found at the Boeing Terms and Conditions website, 600 series clauses. 
  
 http://www.boeing.com/companyoffices/doingbiz/tscs/ 
  

 Page 20 of 20Letter Contract No. GF80726B11 between the Registrant and Lockheed Martin Corp.

 Exhibit 10.23 
  

			
	

	 	 Letter Contract

		
	 SPACEHAB, Inc.
	 	Date: February 18, 2004
	 12130 Highway 3, Bldg. 1
	 	 
	 Webster, TX 77598
	 	 Prime Contract No.: NNJ04AA03C

  

	Subject:    	LOCKHEED MARTIN CORPORATION-(Integrated Systems) Letter Contract No. GF80726B11 

  

	1.	Authorization is hereby given to proceed with the work against the subject letter contract, as follows: 

  
 Deliveries listed in Attachment A in accordance with Commercial Carrier Services Statement of Work (Appendix 1 of proposal
For SPACEHAB Module and ICC Services dated January 2004) 
  

	2.	The target definitization date for the letter contract is June 15, 2004. 

  

	3.	Reserved 

  

	4.	This letter contract is incrementally funded. Lockheed Martin’s limitation of obligation to pay under this authorization is $8,501,136.00. The funds are expected to be adequate
for performance of the Work until June 15, 2004. 

  

	5.	Payment Terms are: Net 45 days. 

  

	6.	Lockheed Martin anticipates executing a Firm Fixed Price type subcontract. Contractual provisions applicable to this authorization are incorporated by reference, as follows:

  

	 	A.	General Provisions: 

  

	 	i.	Lockheed Martin CORPDOC Nos. 2 and 2B, dated October 2003 and Supplement C dated November 2002. 

  

	 	ii.	Terminations. If this authorization is terminated for any reason before executing the definitive contract, the termination will be accomplished according to the
‘Termination’ clause of the CORPDOC incorporated above. A definitive contract will be issued for the work accomplished up to the point of termination. 

  

	 	iii.	The terms and conditions incorporated by subparagraph 6 A (i) include self-certification statements including but not limited to Certification Regarding Debarment, Suspension,
Proposed Debarment and Other Responsibility Matters, Previous Contracts and Compliance Reports, and Affirmative Action Compliance. SPACEHAB has previously acknowledged receipt and affirmative acceptance of the self-certification requirements.

  

	 	B.	Special Provisions: 

  

	 	i.	TBD 

  

	7.	SPACEHAB and Lockheed Martin agree to continue to negotiate in good faith to establish a subcontract for Commercial Carrier Services. SPACEHAB understands and agrees that the
payment schedule is provisional and subject to change as a result of contract definitization and payments made under the letter contract may be adjusted after subcontract definitization to conform to the terms of the subcontract. If SPACEHAB and
Lockheed Martin, negotiating in good faith, fail to reach agreement on terms and conditions of a definitive subcontract, this letter contract will be terminated in accordance with the provisions of Paragraph 6. Issuance of the definitive subcontract
is also subject to written consent from NASA. 

  

	8.	This is a rated contract certified for National Defense. The Subcontractor is required to follow all provisions of the Defense Priorities and Allocations System (DPAS) regulations
(15 CFR 700). The rating on this order is DO-C9. 

  

	9.	This authorization is subject to your prompt acceptance. Please return a signed copy by FAX no later than February 23, 2004, confirming your acceptance of the contents herein and
acknowledging that the effort authorized has been initiated. 

  

									
	SPACEHAB, INC.	 	 	 	LOCKHEED MARTIN CORPORATION
					
	By:	 	/s/    KATHY WHITAKER        	 	 	 	By:	 	/s/    Illegible
	 Title:
	 	Director, Business Management	 	 	 	 Title:
	 	Director of Material
					
	 Date:
	 	 2/20/04
	 	 	 	 Date:
	 	 February 19, 2004

 Letter Contract No. GF80726B11 
  
 Attachment A 
  
 For Mission ULF1.1, with an assumed launch date of Nov 2004, these are the mission milestones and deliverables and payment schedule authorized under the letter contract.
All work shall be performed in accordance with the proposed Statement of Work for Commercial Carrier Services (Appendix 1 of SPACEHAB proposal dated January 2004) 
  

									
	 Mission ULF1.1

	  	Feb

	  	Mar

	  	Apr

	  	May

	 ICC ASSET SERVICE
	  	300,000	  	300,000	  	300,000	  	300,000
	 ICC I&O
	  	169,432	  	0	  	0	  	345,432
	 ICC TOTAL
	  	469,432	  	300,000	  	300,000	  	645,432
	 Mission Performance Analysis (DR 4)
	  	 	  	 	  	 	  	 
	 Mission Performance Analysis Baseline
	  	 	  	 	  	 	  	05/19/04
	 Carrier Integration Plan (CIP)
	  	 	  	 	  	 	  	 
	 CIP Annex 5 Input
	  	 	  	03/20/04	  	 	  	 
	 CIP Annex 8 Initial Input
	  	 	  	03/20/04	  	 	  	 
	 CIP Annex 9 (OMRS) Input - Generic
	  	02/19/04	  	 	  	 	  	 
	 Flight Safety (PSRP) - (DR 7)
	  	 	  	 	  	 	  	 
	 Phase 0/I Flight Safety Data Package Submittal
	  	02/19/04	  	 	  	 	  	 
	 Ground Safety (DR 7)
	  	 	  	 	  	 	  	 
	 Phase 0/I Ground Safety Data Package Submittal
	  	02/19/04	  	 	  	 	  	 
	 Loads Analysis
	  	 	  	 	  	 	  	 
	 Structural Math Model delivery
	  	 	  	 	  	04/19/04	  	 
	 Thermal Analysis
	  	 	  	 	  	 	  	 
	 Thermal Model and Report Delivery
	  	02/19/04	  	 	  	 	  	 
	 Mission Training (DR 2)
	  	 	  	 	  	 	  	 
	 Mission Training Plan
	  	02/19/04	  	 	  	 	  	 
	 Payload ICA Baseline (DR 6)
	  	 	  	 	  	 	  	 
	 Complex ICD
	  	02/19/04	  	 	  	 	  	 
	 Simple ICD
	  	 	  	 	  	 	  	 

 Letter Contract No. GF80726B11 
  
 Attachment A 
  
 For Mission 12A.1, with an assumed launch date of Apr 2005, these are the mission milestones and deliverables and payment schedule authorized under the letter contract.
All work shall be performed in accordance with the proposed Statement of Work for Commercial Carrier Services (Appendix 1 of SPACEHAB proposal dated January 2004) 
  

													
	 Mission 12A.1

	  	Feb

	  	Mar

	  	Apr

	  	May

	 ICC ASSET SERVICE
	  	 	0	  	 	0	  	 	0	  	 	0
	 ICC I&O
	  	 	 	  	 	0	  	 	361,834	  	 	0
	 ICC TOTAL
	  	 	0	  	 	0	  	 	361,834	  	 	0
	 LSM ASSET SERVICE
	  	 	1,132,000	  	 	1,132,000	  	 	1,132,000	  	 	1,132,000
	 LSM ASSET TRANSITION
	  	 	200,000	  	 	200,000	  	 	200,000	  	 	100,000
	 LSM I&O
	  	 	0	  	 	0	  	 	1,196,438	  	 	0
	 LSM I&O TRANSITION
	  	 	0	  	 	0	  	 	0	  	 	0
	 LSM TOTAL
	  	 	1,332,000	  	 	1,332,000	  	 	2,528,438	  	 	1,232,000
	 MISSION TOTAL
	  	$	1,332,000	  	$	1,332,000	  	$	2,890,272	  	$	1,232,000
	 ICD-A
	  	 	 	  	 	 	  	 	 	  	 	 
	 ICD-A Inputs
	  	 	 	  	 	 	  	 	04/20/04	  	 	 
	 Data Interface and Requirements Transfer
	  	 	 	  	 	 	  	 	 	  	 	 
	 Initial Baseline
	  	 	 	  	 	03/21/04	  	 	 	  	 	 
	 MRAD (DR 14)
	  	 	 	  	 	 	  	 	 	  	 	 
	 Initial Baseline
	  	 	 	  	 	 	  	 	04/20/04	  	 	 
	 Carrier Integration Plan (CIP)
	  	 	 	  	 	 	  	 	 	  	 	 
	 CIP Addendum Initial Input
	  	 	 	  	 	 	  	 	04/20/04	  	 	 
	 CIP Addendum Baseline
	  	 	 	  	 	 	  	 	 	  	 	05/20/04
	 CIP Annex 1 Initial Input
	  	 	 	  	 	 	  	 	 	  	 	05/20/04
	 CIP Annex 2 Part 1 Initial Input
	  	 	 	  	 	 	  	 	 	  	 	05/20/04
	 CIP Annex 4 Initial Input
	  	 	 	  	 	 	  	 	04/20/04	  	 	 
	 Loads Analysis
	  	 	 	  	 	 	  	 	 	  	 	 
	 Design Loads Report
	  	 	 	  	 	 	  	 	 	  	 	05/20/04

 February 24,2005 
  
 Results of Meeting with Gary Moeller, LM Sr. Subcontract Adminis________ 
  

SPACEHAB EXCEPTIONS TO: 
  
 COMMERCIAL CARRIER SERVICES SUBCONTRACT 
  
 D.2 NFS 1852.211-70 Packaging, Handling and Transportation (2000) 
  
 Please define the applicability of this clause to SHI’s Commercial Carrier Services subcontract. 
  
 Final Agreement: This clause does not appear to significantly impact SHI. SHI accepts. 
  
 E.3 Inspection and Acceptance 
  
 Please define the applicability of this clause to SHI’s Commercial Carrier Services
subcontract. SHI defines the applicability as contract deliverables as incorporated in the deliverables list in the final negotiated subcontract. 
  
 Final Agreement: LM confirmed that this clause is applicable only to contract deliverables as defined in the contract. LM will inspect final product at KSC, in deemed
necessary by LM/NASA. 
  
 F.1 - 52.242-15 Stop Work Order and Alternate 1.

  
 Alternate 1 is applicable to Cost Reimburseable contracts 
  
 Final Agreement: LM will change to reflect Fixed Price Contract 
  
 F.5 Period of Performance 
  
 Please change the period of performance from February 19, 2004 through June 30, 2006 to
February 1, 2004 through August 31, 2006. 
  
 Although our letter subcontract was
not issued until February 19th, SHI was performing effort beginning February 1st for the contracted missions under LM, not NASA. The expiration date should reflect return plus 2 months as SHI proposed 2 months of close out costs following the last
mission. 
  
 Final Agreement: LM will change Period of Performance wording to
state “in accordance with contract schedule”. 

 G.5 Technical Direction 
  

Please change subcontractor notice from 3 days to 10 days. 
  
 Final Agreement: LM will change to 4 days because they have a 5 day contract requirement. 
  
 G.15 Work Eligibility 
  
 Please revise this clause as follows: 
  
 All subcontractor personnel performing under this subcontract within the United States shall be U.S. Citizens.... 
  
 SHI’s contract with EADS includes tasking that is performed in Brehman. 
  
 Final Agreement: LM will incorporate “within the United States” in the clause.
LM will add a reference to export provisions in the subcontract to clarify and emphasize that compliance to law for export of technical data is required (this is the intent and does not change the meaning.) 
  
 H.19 Associate Contractor Agreement for ISS Operations and Utilization Activities

  
 Please define the scope of this clause. SHI did not propose costs to
support activities associated with this clause. 
  
 Final Agreement: LM to
change H. 19 B to state: “The subcontractor agrees to provide reasonable support to Buyer to implement the stated objectives.” 
  
 H.26 Additional Export Control Requirements 
  
 Please delete this clause from our subcontract 
  
 Final Agreement: SHI accepts clause because it is a mandatory flow down and because SHI does not believe this has a significant impact on SHI business processes.

  
 1.2 Modifications of incorporated terms and conditions 

 
 SHI does not accept the incorporation of 52.222-41 Service Contract Act of 1965, as
Amended (May 1989), into the Lockheed CORPDOC2 Terms and Conditions. 
  
 Final
Agreement: LM agrees to remove clause because by statute the act applies to contracts, the principle purpose of which is to furnish services in the US through the 

 
use of service employees - LM believes the principle purpose of our subcontract is to furnish carrier and related hardware. 
  
 LOCKHEED MARTIN’S SUPPLEMENT -C

  
 6. Publicity, Promotion or Advertising. SPACEHAB is bound by
law to quickly disclose material events that require SEC disclosure and this may not fit within your approval schedule Please revise. Please modify the language to say “without prior notification” for those activities that are considered
“material events”. The advertising and media items can still say “without prior consent.” 
  
 Final Agreement: LM agrees to incorporate wording “except as bound by law” in this clause. 
  
 8. Additional Subcontracting. 
  
 Please delete. SFS has on-going subcontracts that will be performing work for the CMC contract. SHI will disclose all proposed subcontractors and subcontractor cost in
its proposals to contract change orders. SHI will not seek approval for material vendors associated with its module or SPPF operations. 
  
 Final Agreement: LM agrees to remove clause because this is not a mandatory requirement for fixed price contracts. 
  
 10. Payments, Taxes, and Duties: 
  
 Please revise this clause to reflect the months LM will pay SHI net 30. Also, please delete
(a) ii, as SHI has no control over when the Buyer will enter the invoice into LM’s accounts payable system. 
  
 Final Agreement: LM cannot revise terms and conditions of this clause because it is applicable to all LM business units. 
  
 LOCKHEED MARTN CORPORATION – CORPDOC 2: General Provisions and FAR flowdown
provisions for subcontracts for Commercial Items Under a U.S. Government Prime Contract 
  
 Section I. General Provisions: 
  
 5. SHI
requests that this term be amended to reflect the interfaces to be negotiated in the SPACEHAB subcontract. 
  
 Final Agreement: LM will reference DIRT in this clause. 
  
 7. DEFAULT: SHI requests that this clause be amended as follows: 
  
 a. – Extend cure term to 30 days. 

 Final Agreement: LM will extend cure term to 30 days. 
  
 b. – Remove the 2nd sentence of this clause. 
  
 Final Agreement: LM will modify the clause from “terminated portions of this contract” to “terminated deliverables under this contract”. This
applies to the documents that must be turned over to LM in case of SHI default. 
  
 18. SHI requests that this clause be removed in its entirety and substituted with the following terms that were incorporated in our subcontract with the Boeing Company: 
  
 ACCEPTANCE 
  
 Buyer shall accept the Services or give Seller written notice of rejection within 45 days after delivery, unless otherwise stated in the purchase order, notwithstanding
any payment or prior test or inspection. No inspection, test, delay or failure to inspect or test or failure to discover any defect or other nonconformance shall relieve Seller of any of its obligations under this contract or impair any rights or
remedies of Buyer or Buyer’s customers. 
  
 REJECTION 
  
 a. If Seller delivers nonconforming Services, Buyer may require Seller to promptly correct
or replace the nonconforming Services. 
  
 b. Seller shall not redeliver corrected
or rejected Services without disclosing the former rejection or requirement for correction. Seller shall disclose any corrective action taken. All repair, replacement and other correction and redelivery shall be completed within the original
delivery schedule or such later time as Buyer may reasonably direct. 
  
 Final
Agreement: LM will leave clause as is but add “The parties agree to negotiate in good faith to establish a supplemental agreement to define the scope of the inspections.”. The Supplemental Agreement will define the scope of inspection and
acceptance as it pertains to SHI processes, release of information and use of SHI facilities and provision of administrative support.” 
  
 20. SHI requests that 20.b be removed in its entirety. 

 Final Agreement: LM will remove 20.b 
  
 32. SHI requests that 32.a.1. be amended as follows: 
  
 - Lockheed Martin may terminate this part or all of this Contract for its convenience by giving written notice to Seller,
provided that the part(s) terminated were terminated by the Government in Lockheed Martin’s prime contract. 
  
 Final Agreement: LM will incorporate requested wording 
  
 33. SHI from time to time delivers its products early. Please define the process of seeking approval for early delivery. 
  
 Section II: FAR Flowdown Provisions 
  
 SHI is a small business providing a commercial service. Therefore all clauses incorporated in
the contract are to be interpreted using these assumptions. The following changes are requested removed/modified for this reason. 
  
 F. 1. 
 (a) Change to 52.215-20 Alt IV 
 (b) Change to 52.215-21 Alt IV 
  
 Final Agreement: These cost and pricing clauses are mandatory flow downs. However, SHI was exempt from 52.215.20 because our service was determined to be a commercial service by DCAA. 52.215-21 applies to contract
change orders and SHI will have to apply for exemption for changes unless a separate contract is entered into with LM for change orders, i.e. GSA/Commercial PO. 
  
 LOCKHEED MARTIN CORPORATION – CORPDOC 2B: NASA Flowdown Provisions for Subcontract/Purchase Orders for Commercial Items under
a U.S. Government Prime Contract: 
  
 SHI is a small business providing a
commercial service. Therefore all clauses incorporated in the contract are to be interpreted using these assumptions. The following changes are requested removed/modified for this reason. 
  
 F. 1. 
 (a) Change clause from 52.227-14 to
52.227-14 Alt II.: Section C. Notes – does not apply to this clause. 
  
 Final Agreement: LM agrees to changes. 
  
 Add: 52.227-11 –
Section C. Notes - does not apply to this clause. 
  
 Final Agreement: LM
agrees to add 52.227-11, and stated that Section C does not apply to these clause types. 
  
 G. 1 
 (f) 18-52.227-14 (Remove applicability of Section C Note 5) 

 Final Agreement: SHI accepts clause and LM stated that Section C does not apply to these clause types 

 
 (h) Remove 18-52.242-73 
  
 Final Agreement: LM agrees to remove clause (applies to cost reporting) 
  
 G. 4 
 (a) Replace 18-52.223-70 with
18-52-223.73 
  
 Final Agreement: SHI accepts 18-52.223-70 
  
 (d) Remove 18-52.227-11 
  
 Final Agreement: SHI accepts clause 
  
 (e) Remove 18-52.227-70 
 (f) Remove 18-52.227-71 
  
 Final Agreement: LM agrees to remove clauses. 
  
 (g) Remove 18-52.227-72 
  
 Final Agreement: SHI accepts clause - goes with 18-52-227-11 
  
 (m) Remove 18.52.231-71 
 (n) Remove
18.52.237-71 
 (o) Remove 18-52.242-71 
  
 Final Agreement: LM agrees to remove clauses because they are not applicable to firm fixed price contracts. 
  
 (s) 18-52.246-70 Lockheed Martin to define when this clause is applicable. 
  
 Final Agreement: SHI accepts clause because it poses no material impact. 

			
	 LOCKHEED MARTIN CORPORATION
  
 CORPDOC 2
	 	

  
 GENERAL PROVISIONS
AND FAR FLOWDOWN PROVISIONS FOR SUBCONTRACTS/PURCHASE ORDERS FOR COMMERCIAL ITEMS UNDER A U.S. GOVERNMENT PRIME CONTRACT 
  
 SECTION I: GENERAL PROVISIONS 
  

			
	1	  	Acceptance of Contract/Terms and Conditions
	2	  	Applicable Laws
	3	  	Assignment
	4	  	Changes
	5	  	Communication With Lockheed Martin Customer
	6	  	Contract Direction
	7	  	Default
	8	  	Definitions
	9	  	Disputes
	10	  	Electronic Contracting
	11	  	Export Control
	12	  	Extras
	13	  	Furnished Property
	14	  	Gratuities/Kickbacks
	15	  	Independent Contractor Relationship
	16	  	Information of Lockheed Martin
	17	  	Information of Seller
	18	  	Inspection and Acceptance
	19	  	Insurance/Entry on Lockheed Martin Property
	20	  	Intellectual Property
	21	  	New Materials
	22	  	Offset Credit/Cooperation
	23	  	Packing and Shipment
	24	  	Payments, Taxes, and Duties
	25	  	Precedence
	26	  	Priority Rating
	27	  	Quality Control System
	28	  	Release of Information
	29	  	Severability
	30	  	Stop Work
	31	  	Survivability
	32	  	Termination For Convenience
	33	  	Timely Performance
	34	  	Waivers, Approvals, and Remedies
	35	  	Warranty

  
 SECTION II: FAR FLOWDOWN
PROVISIONS 
  

			
	A	  	Incorporation of FAR Clauses
	B	  	Government Subcontract
	C	  	Notes
	D	  	Amendments Required by Prime Contract
	E	  	Preservation of the Government’s Rights
	F	  	FAR Flowdown Clauses
	G	  	Certifications and Representations

  
 SECTION I: GENERAL
PROVISIONS 
  

	1.	ACCEPTANCE OF CONTRACT/TERMS AND CONDITIONS 

  

	 	(a)	This Contract integrates, merges, and supersedes any prior offers, negotiations, and agreements concerning the subject matter hereof and, together with Exhibits, Attachments, and
any Task Order(s) issued hereunder, and constitutes the entire agreement between the parties. 

  

	 	(b)	SELLER’s acknowledgment, acceptance of payment, or commencement of performance, shall constitute SELLER’s unqualified acceptance of this Contract.

  

	 	(c)	Additional or differing terms or conditions proposed by SELLER or included in SELLER’s acknowledgment are objected to by LOCKHEED MARTIN and have no effect unless expressly
accepted in writing by LOCKHEED MARTIN. 

  

	2.	APPLICABLE LAWS 

  

	 	(a)	This Contract shall be governed by and construed in accordance with the laws of the State from which this Contract is issued, excluding its choice of law rules, except that any
provision in this Contract that is (i) incorporated in full text or by reference from the Federal Acquisition Regulation (FAR); or (ii) incorporated in full text or by reference from any agency regulation that implements or supplements the FAR or;
(iii) that is substantially based on any such agency regulation or FAR provision, shall be construed and interpreted according to the federal common law of government contracts as enunciated and applied by federal judicial bodies, boards of
contracts appeals, and quasi-judicial agencies of the federal Government. 

  

	 	(b)     (1)	SELLER agrees to comply with all applicable laws, orders, rules, regulations, and ordinances. SELLER shall procure all licenses/permits, and pay all fees, and other required
charges, and shall comply with of all applicable guidelines and directives of any local, state, and/or federal governmental authority. 

  

	 	(2)	If: (i) LOCKHEED MARTIN’s contract price or fee is reduced; (ii) LOCKHEED MARTIN’s costs are determined to be unallowable; (iii) any fines, penalties, or interest are
assessed on LOCKHEED MARTIN; or (iv) LOCKHEED MARTIN incurs any other costs or damages; as a result of any violation of applicable laws, orders, rules, regulations, or ordinances by SELLER, its officers, employees, agents, suppliers, or
subcontractors at any tier, LOCKHEED MARTIN may proceed as provided for in (3) below. 

  

	 	(3)	Upon the occurrence of any of the circumstances identified in (2) above, LOCKHEED MARTIN may make a reduction of corresponding amounts (in whole or in part) in the price of this
Contract or any other contract with SELLER, or may demand payment (in whole or in part) of the corresponding amounts. SELLER shall promptly pay amounts so demanded. 

  

	 	(4)	In the event it is determined that the Work is not a Commercial Item as defined at FAR 2.101, then SELLER agrees that CORPDOC 3, General Provisions and FAR Flowdown Provisions for
Subcontracts/Purchase Orders (All Agencies) for Non-Commercial Items under a U.S. Governmental Prime Contract, and the corresponding agency flowdowns shall be applicable to this Contract, in lieu of these terms and conditions, effective as of the
date of this Contract. 

  

	 	(c)	SELLER represents that each chemical substance constituting or contained in Work sold or otherwise transferred to LOCKHEED MARTIN hereunder is on the list of chemical substances
compiled and published by the Administrator of the Environmental Protection Administration pursuant to the Toxic Substances Control Act (15 U.S.C. Sec. 2601 et seq.) as amended. 

  

 1 

	 	(d)	SELLER shall provide to LOCKHEED MARTIN with each delivery any Material Safety Data Sheet applicable to the Work in conformance with and containing such information as required by
the Occupational Safety and Health Act of 1970 and regulations promulgated there under, or its State approved counterpart. 

  

	3.	ASSIGNMENT 

  
 Any assignment of SELLER’s Contract rights or delegation of SELLER’s duties shall be void, unless prior written consent is given by LOCKHEED
MARTIN. SELLER may assign rights to be paid amounts due, or to become due, to a financing institution if LOCKHEED MARTIN is promptly furnished a signed copy of such assignment reasonably in advance of the due date for payment of any such amounts.
Amounts assigned shall be subject to setoff or recoupment for any present or future claims of LOCKHEED MARTIN against SELLER. LOCKHEED MARTIN shall have the right to make settlements and/or adjustments in price without notice to any assignee.

  

	4.	CHANGES 

  

	 	(a)	The LOCKHEED MARTIN Procurement Representative may at any time, by written notice, and without notice to sureties or assignees, make changes within the general scope of this
Contract in any one or more of the following: (i) drawings, designs, or specifications; (ii) method of shipping or packing; (iii) place of inspection, acceptance, or point of delivery; and (iv) delivery schedule. 

  

	 	(b)	If any such change causes an increase or decrease in the cost of, or the time required for, performance of any part of this Contract, LOCKHEED MARTIN shall make an equitable
adjustment in the Contract price and/or delivery schedule, and modify this Contract accordingly. Changes to the delivery schedule will be subject to a price adjustment only. 

  

	 	(c)	SELLER must assert its right to an equitable adjustment under this paragraph within thirty (30) days from the date of receipt of the written change order. If the SELLER’s
proposal includes the cost of property made obsolete or excess by the change, LOCKHEED MARTIN shall have the right to prescribe the manner of disposition of the property. 

  

	 	(d)	Failure to agree to any adjustment shall be resolved in accordance with the “Disputes” clause of this Contract. However, nothing contained in this “Changes”
clause shall excuse SELLER from proceeding without delay in the performance of this Contract as changed. 

  

	5.	COMMUNICATION WITH LOCKHEED MARTIN CUSTOMER 

  
 LOCKHEED MARTIN shall be solely responsible for all liaison and coordination with the LOCKHEED MARTIN customer, including the U. S. Government, as it
affects the applicable prime contract, this Contract, and any related contract. 
  

	6.	CONTRACT DIRECTION 

  

	 	(a)	Only the LOCKHEED MARTIN Procurement Representative has authority to make changes in or amendments to this Contract. Changes and amendments must be in writing.

  

	 	(b)	LOCKHEED MARTIN engineering and technical personnel may from time to time render assistance or give technical advice or discuss or effect an exchange of information with
SELLER’s personnel concerning the Work hereunder. No such action shall be deemed to be a change under the “Changes” clause of this Contract and shall not be the basis for equitable adjustment. 

  

	 	(c)	Except as otherwise provided herein, all notices to be furnished by the SELLER shall be sent to the LOCKHEED MARTIN Procurement Representative. 

  

	7.	DEFAULT 

  

	 	(a)	LOCKHEED MARTIN, by written notice, may terminate this Contract for default, in whole or in part, if SELLER fails to comply with any of the terms of this Contract, fails to make
progress so as to endanger performance of this Contract, or fails to provide adequate assurance of future performance. SELLER shall have ten (10) days (or such longer period as LOCKHEED MARTIN may authorize in writing) to cure any such failure after
receipt of notice from LOCKHEED MARTIN. Default involving delivery schedule delays shall not be subject to the cure provision. 

  

	 	(b)	SELLER shall be compensated only for Work actually delivered and accepted. LOCKHEED MARTIN may require SELLER to deliver to LOCKHEED MARTIN any supplies and materials, manufacturing
materials, and manufacturing drawings that SELLER has specifically produced or acquired for the terminated portion of this Contract. LOCKHEED MARTIN and SELLER shall agree on the amount of payment for these other deliverables.

  

	 	(c)	SELLER shall continue all Work not terminated. 

  

	 	(d)	If after termination under paragraph (a), it is determined that SELLER was not in default, such termination shall be deemed a Termination for Convenience. 

 

	8.	DEFINITIONS 

  
 The following terms shall have the meanings set forth below: 
  

	 	(a)	“Contract” means the instrument of contracting, such as “PO”, “Purchase Order” or “Task Order” or other such type designation, including all
referenced documents, exhibits and attachments. If these terms and conditions are incorporated into a “master” agreement that provides for releases, (in the form of a Purchase Order or other such document) the term “Contract”
shall also mean the Release document for the Work to be performed. 

  

	 	(b)	“FAR” means the Federal Acquisition Regulation, issued as Chapter 1 of Title 48, Code of Federal Regulations. 

  

	 	(c)	“LOCKHEED MARTIN” means LOCKHEED MARTIN CORPORATION, acting through its companies or business units as identified on the face of this Contract. If a subsidiary or
affiliate of LOCKHEED MARTIN CORPORATION is identified on the face of this Contract, then “LOCKHEED MARTIN” means that subsidiary or affiliate. 

  

	 	(d)	“LOCKHEED MARTIN Procurement Representative” means a person authorized by LOCKHEED MARTIN’s cognizant procurement organization to administer and/or execute this
Contract. 

  

	 	(e)	“PO” or “Purchase Order” means this Contract. 

  

	 	(f)	“SELLER” means the party identified on the face of this Contract with whom LOCKHEED MARTIN is contracting. 

  

	 	(g)	“Task Order” means a separate order issued under this Contract. 

  

	 	(h)	“Work” means all required labor, articles, materials, supplies, goods, and services constituting the subject matter of this Contract. 

  

 2 

	9.	DISPUTES 

  
 All disputes under this Contract which are not disposed of by mutual agreement may be decided by recourse to an action at law or in equity. Until final
resolution of any dispute hereunder, SELLER shall diligently proceed with the performance of this Contract as directed by LOCKHEED MARTIN. 
  

	10.	ELECTRONIC CONTRACTING 

  
 The parties agree that if this Contract is transmitted electronically neither party shall contest the validity of this Contract, or any Acknowledgement
thereof, on the basis that this Contract or Acknowledgement contains an electronic signature. 
  

	11.	EXPORT CONTROL 

  

	 	(a)	SELLER agrees to comply with all applicable U.S. export control laws and regulations, specifically including, but not limited to, the requirements of the Arms Export Control Act, 22
U.S.C.2751-2794, including the International Traffic in Arms Regulation (ITAR), 22 C.F.R. 120 et seq.; and the Export Administration Act, 50 U.S.C. app. 2401-2420, including the Export Administration Regulations, 15 C.F.R. 730-774; including the
requirement for obtaining any export license or agreement, if applicable. Without limiting the foregoing, SELLER agrees that it will not transfer any export controlled item, data, or services, to include transfer to foreign persons employed by or
associated with, or under contract to SELLER or SELLER’s lower-tier suppliers, without the authority of an export license, agreement, or applicable exemption or exception. 

  

	 	(b)	SELLER agrees to notify LOCKHEED MARTIN if any deliverable under this Contract is restricted by export control laws or regulations. 

  

	 	(c)	SELLER shall immediately notify the LOCKHEED MARTIN Procurement Representative if SELLER is, or becomes, listed in any Denied Parties List or if SELLER’s export privileges are
otherwise denied, suspended or revoked in whole or in part by any U.S. Government entity or agency. 

  

	 	(d)	If SELLER is engaged in the business of either exporting or manufacturing (whether exporting or not) defense articles or furnishing defense services, SELLER represents that it is
registered with the Office of Defense Trade Controls, as required by the ITAR, and it maintains an effective export/import compliance program in accordance with the ITAR. 

  

	 	(e)	Where SELLER is a signatory under a LOCKHEED MARTIN export license or export agreement (e.g., TAA, MLA), SELLER shall provide prompt notification to the LOCKHEED MARTIN Procurement
Representative in the event of changed circumstances including, but not limited to, ineligibility, a violation or potential violation of the ITAR, and the initiation or existence of a U.S. Government investigation, that could affect the
SELLER’s performance under this Contract. 

  

	 	(f)	SELLER shall be responsible for all losses, costs, claims, causes of action, damages, liabilities and expense, including attorneys’ fees, all expense of litigation and/or
settlement, and court costs, arising from any act or omission of SELLER, its officers, employees, agents, suppliers, or subcontractors at any tier, in the performance of any of its obligations under this clause. 

  

	12.	EXTRAS 

  
 Work shall not be supplied in excess of quantities specified in this Contract. SELLER shall be liable for handling charges and return shipment costs for
any excess quantities. 
  

	13.	FURNISHED PROPERTY 

  

	 	(a)	LOCKHEED MARTIN may provide to SELLER property owned by either LOCKHEED MARTIN or its customer (Furnished Property). Furnished Property shall be used only for the performance of
this Contract. 

  

	 	(b)	Title to Furnished Property shall remain in LOCKHEED MARTIN or its customer. SELLER shall clearly mark (if not so marked) all Furnished Property to show its ownership.

  

	 	(c)	Except for reasonable wear and tear, SELLER shall be responsible for, and shall promptly notify LOCKHEED MARTIN of, any loss or damage. Without additional charge, SELLER shall
manage, maintain, and preserve Furnished Property in accordance with good commercial practice. 

  

	 	(d)	At LOCKHEED MARTIN’s request, and/or upon completion of this Contract, the SELLER shall submit, in an acceptable form, inventory lists of Furnished Property and shall deliver
or make such other disposal as may be directed by LOCKHEED MARTIN. 

  

	 	(e)	The Government Property clause contained in Section II shall apply in lieu of paragraphs (a) through (d) above with respect to Government Furnished Property, or property to which
the Government takes title under this Contract. 

  

	14.	GRATUITIES/KICKBACKS 

  

	 	(a)	No gratuities (in the form of entertainment, gifts, or otherwise) or kickbacks shall be offered or given by SELLER, to any employee of LOCKHEED MARTIN for the purpose of obtaining
or rewarding favorable treatment as a supplier. 

  

	 	(b)	By accepting this Contract, SELLER certifies and represents that it has not made or solicited and will not make or solicit kickbacks in violation of FAR 52.203-7 or the
Anti-Kickback Act of 1986 (41 USC 51-58), both of which are incorporated herein by this specific reference, except that paragraph (c)(1) of FAR 52.203-7 shall not apply. 

  

	15.	INDEPENDENT CONTRACTOR RELATIONSHIP 

  

	 	(a)	SELLER is an independent contractor in all its operations and activities hereunder. The employees used by SELLER to perform Work under this Contract shall be SELLER’s employees
exclusively without any relation whatsoever to LOCKHEED MARTIN. 

  

	 	(b)	SELLER shall be responsible for all losses, costs, claims, causes of action, damages, liabilities, and expenses, including attorneys’ fees, all expenses of litigation and/or
settlement, and court costs, arising from any act or omission of SELLER, its officers, employees, agents, suppliers, or subcontractors at any tier, in the performance of any of its obligations under this Contract. 

  

 3 

	16.	INFORMATION OF LOCKHEED MARTIN 

  
 Information provided by LOCKHEED MARTIN to SELLER remains the property of LOCKHEED MARTIN. SELLER agrees to comply with the terms of any proprietary
information agreement with LOCKHEED MARTIN and to comply with all proprietary information markings and restrictive legends applied by LOCKHEED MARTIN to anything provided hereunder to SELLER. SELLER agrees not to use any LOCKHEED MARTIN provided
information for any purpose except to perform this Contract and agrees not to disclose such information to third parties without the prior written consent of LOCKHEED MARTIN. 
  

	17.	INFORMATION OF SELLER 

  
 SELLER shall not provide any Proprietary Information to LOCKHEED MARTIN without prior execution of a proprietary information agreement by the parties.

  

	18.	INSPECTION AND ACCEPTANCE 

  

	 	(a)	LOCKHEED MARTIN and its customer may inspect all Work at reasonable times and places, including, when practicable, during manufacture and before shipment. SELLER shall provide all
information, facilities, and assistance necessary for safe and convenient inspection without additional charge. 

  

	 	(b)	No such inspection shall relieve SELLER of its obligations to furnish all Work in accordance with the requirements of this Contract. LOCKHEED MARTIN’s final inspection and
acceptance shall be at destination. 

  

	 	(c)	If SELLER delivers non-conforming Work, LOCKHEED MARTIN may: (i) accept all or part of such Work at an equitable price reduction; (ii) reject such Work; or (iii) make, or have a
third party make, all repairs, modifications, or replacements necessary to enable such Work to comply in all respects with Contract requirements and charge the cost incurred to SELLER. 

  

	 	(d)	SELLER shall not re-tender rejected Work without disclosing the corrective action taken. 

  

	19.	INSURANCE/ENTRY ON LOCKHEED MARTIN PROPERTY 

  

	 	(a)	In the event that SELLER, its employees, agents, or subcontractors enter the site(s) of LOCKHEED MARTIN or its customers for any reason in connection with this Contract then SELLER
and its subcontractors shall procure and maintain for the performance of this Contract worker’s compensation, comprehensive general liability, bodily injury and property damage insurance in reasonable amounts, and such other insurance as
LOCKHEED MARTIN may require. In addition, SELLER and its subcontractors shall comply with all site requirements. SELLER shall provide LOCKHEED MARTIN thirty (30) days advance written notice prior to the effective date of any cancellation or change
in the term or coverage of any of SELLER’s required insurance, provided however such notice shall not relieve SELLER’s of its obligations to procure and maintain the required insurance. If requested, SELLER shall send a “Certificate
of Insurance” showing SELLER’s compliance with these requirements. SELLER shall name LOCKHEED MARTIN as an additional insured for the duration of this Contract. Insurance maintained pursuant to this clause shall be considered primary as
respects the interest of LOCKHEED MARTIN and is not contributory with any insurance, which LOCKHEED MARTIN may carry. “Subcontractor” as used in this clause shall include SELLER’s subcontractors at any tier. SELLER’s obligations
for procuring and maintaining insurance coverages are freestanding and are not affected by any other language in this Contract. 

  

	 	(b)	SELLER shall indemnify and hold harmless LOCKHEED MARTIN, its officers, employees, and agents from any losses, costs, claims, causes of action, damages, liabilities, and
expenses, including attorneys’ fees, all expenses of litigation and/or settlement, and court costs, by reason of property damage or loss or personal injury to any person caused in whole or in part by the actions or omissions of SELLER, its
officers, employees, agents, suppliers, or subcontractors. 

  

	20.	INTELLECTUAL PROPERTY 

  

	 	(a)	SELLER warrants that the Work performed or delivered under this Contract will not infringe or otherwise violate the intellectual property rights of any third party in the United
States or any foreign country. SELLER agrees to defend, indemnify, and hold harmless LOCKHEED MARTIN and its customers from and against any claims, damages, losses, costs, and expenses, including reasonable attorneys’ fees, arising out of any
action by a third party that is based upon a claim that the Work performed or delivered under this Contract infringes or otherwise violates the intellectual property rights of any person or entity. 

  

	 	(b)	All data, copyrights, reports, and works of authorship developed in performance of this Contract shall be the sole property of LOCKHEED MARTIN, shall be used by SELLER solely in
work for LOCKHEED MARTIN. To the extent that any of the deliverable items may not, by operation of law, be works made for hire, SELLER hereby assigns to LOCKHEED MARTIN the ownership of copyright in the deliverable items and LOCKHEED MARTIN shall
have the right to obtain and hold in its own name copyrights, registrations, and similar protection which may be available in the deliverable items. SELLER agrees to give LOCKHEED MARTIN or its designees all assistance reasonably required to perfect
such rights. SELLER certifies the originality of all deliverable items and states that no portion is protected by any copyright or similar right vested in any third party. 

  

	21.	NEW MATERIALS 

  
 The Work to be delivered hereunder shall consist of new materials, as defined in FAR 52.211-5, not used, or reconditioned, remanufactured, or of such age
as to impair its usefulness or safety. 
  

	22.	OFFSET CREDIT/COOPERATION 

  
 This Contract has been entered into in direct support of LOCKHEED MARTIN’s international offset programs. All offset benefit credits resulting from
this Contract are the sole property of LOCKHEED MARTIN to be applied to the offset program of its choice. SELLER agrees to assist LOCKHEED MARTIN in securing appropriate offset credits from the respective country government authorities. 

 

	23.	PACKING AND SHIPMENT 

  

	 	(a)	Unless otherwise specified, all Work is to be packed in accordance with good commercial practice. 

  

	 	(b)	A complete packing list shall be enclosed with all shipments. SELLER shall mark containers or packages with necessary lifting, loading, and shipping information, including the
LOCKHEED MARTIN Contract number, item number, dates of shipment, and the names and addresses of consignor and consignee. Bills of lading shall include this Contract number. 

  

	 	(c)	Unless otherwise specified, delivery shall be FOB Place of Shipment. 

  

 4 

	24.	PAYMENTS, TAXES, AND DUTIES 

  

	 	(a)	Unless otherwise provided, terms of payment shall be net thirty (30) days from the latest of the following: (i) LOCKHEED MARTIN’s receipt of the SELLER’s proper invoice;
(ii) Scheduled delivery date of the Work; or (iii) Actual delivery of the Work. LOCKHEED MARTIN shall have a right of setoff against payments due or at issue under this Contract or any other contract between the parties. 

  

	 	(b)	Each payment made shall be subject to reduction to the extent of amounts which are found by LOCKHEED MARTIN not to have been properly payable, and shall also be subject to reduction
for overpayments. 

  

	 	(c)	Payment shall be deemed to have been made as of the date of mailing LOCKHEED MARTIN’s payment or electronic funds transfer. 

  

	 	(d)	Unless otherwise specified, prices include all applicable federal, state, and local taxes, duties, tariffs, and similar fees imposed by any government, all of which shall be listed
separately on the invoice. 

  

	25.	PRECEDENCE 

  
 Any inconsistencies in this Contract shall be resolved in accordance with the following descending order of precedence: (i) Face of the Purchase Order
and/or Task Order, release document or schedule, (including any continuation sheets), as applicable, including any special provisions; (ii) This CORPDOC; and (iii) Statement of Work. 
  

	26.	PRIORITY RATING 

  
 If so identified, this Contract is a “rated order” certified for national defense use, and the SELLER shall follow all the requirements of the
Defense Priorities and Allocation System Regulation (15 C.F.R. Part 700). 
  

	27.	QUALITY CONTROL SYSTEM 

  

	 	(a)	SELLER shall provide and maintain a quality control system to an industry recognized Quality Standard and in compliance with any other specific quality requirements identified in
this Contract. 

  

	 	(b)	Records of all quality control inspection work by SELLER shall be kept complete and available to LOCKHEED MARTIN and its customers. 

  

	28.	RELEASE OF INFORMATION 

  
 Except as required by law, no public release of any information, or confirmation or denial of same, with respect to this Contract or the subject matter
hereof, will be made by SELLER without the prior written approval of LOCKHEED MARTIN. 
  

	29.	SEVERABILITY 

  
 Each paragraph and provision of this Contract is severable, and if one or more paragraphs or provisions are declared invalid, the remaining paragraphs and
provisions of this Contract will remain in full force and effect. 
  

	30.	STOP WORK 

  

	 	(a)	SELLER shall stop Work for up to ninety (90) days in accordance with any written notice received from LOCKHEED MARTIN, or for such longer period of time as the parties may agree and
shall take all reasonable steps to minimize the incurrence of costs allocable to the Work during the period of Work stoppage. 

  

	 	(b)	Within such period, LOCKHEED MARTIN shall either terminate in accordance with the provisions of this Contract or continue the Work by written notice to SELLER. In the event of a
continuation, an equitable adjustment in accordance with the principles of the “Changes” clause shall be made to the price, delivery schedule, or other provision(s) affected by the Work stoppage, if applicable, provided that the claim for
equitable adjustment is made within thirty (30) days after date of notice to continue. 

  

	31.	SURVIVABILITY 

  

	 	(a)	If this Contract expires, is completed, or is terminated, SELLER shall not be relieved of those obligations contained in the following provisions: 

  
 Applicable Laws 
 Electronic Contracting 
 Export Control

 Independent Contractor Relationship 
 Information of Lockheed Martin 
 Insurance/Entry on Lockheed Martin Property 
 Intellectual Property 
 Release of Information

 Warranty 
  

	 	(b)	Those U.S. Government flowdown provisions that by their nature should survive. 

  

	32.	TERMINATION FOR CONVENIENCE 

  

	 	(a)	For specially performed Work: 

  

	 	(i)	LOCKHEED MARTIN may terminate part or all of this Contract for its convenience by giving written notice to SELLER. 

  

	 	(ii)	Upon termination, in accordance with LOCKHEED MARTIN written direction, SELLER will immediately: (i) Cease work; (ii) Prepare and submit to LOCKHEED MARTIN an itemization of all
completed and partially completed deliverables and services; (iii) Deliver to LOCKHEED MARTIN deliverables satisfactorily completed up to the date of termination at the agreed upon prices in the relevant Statement of Work; and (iv) Deliver upon
request any Work in process. In the event LOCKHEED MARTIN terminates for its convenience after performance has commenced, LOCKHEED MARTIN will compensate SELLER for the actual, allowable, and reasonable expenses incurred by SELLER for Work in
process up to and including the date of termination provided SELLER uses reasonable efforts to mitigate LOCKHEED MARTIN’s liability under this clause. 

  

	 	(iii)	In no event shall LOCKHEED MARTIN be liable for lost or anticipated profits, unabsorbed indirect costs or overhead, or for any sum in excess of the total Contract price.
SELLER’s termination claim shall be submitted within ninety (90) days from the effective date of the termination. 

  

	 	(b)	For other than specially performed Work: LOCKHEED MARTIN may terminate part or all of this Contract for its convenience by giving written notice to SELLER and LOCKHEED MARTIN’s
only obligation to SELLER shall be payment of a mutually agreed-upon restocking or service charge. 

  

 5 

	 	(c)	In either case, SELLER shall continue all Work not terminated. 

  
 TIMELY PERFORMANCE 
  

	 	(a)	SELLER’s timely performance is a critical element of this Contract. 

  

	 	(b)	Unless advance shipment has been authorized in writing by LOCKHEED MARTIN, LOCKHEED MARTIN may store at SELLER’s expense, or return, shipping charges collect, all Work received
in advance of the scheduled delivery date. 

  

	 	(c)	If SELLER becomes aware of difficulty in performing the Work, SELLER shall timely notify LOCKHEED MARTIN, in writing, giving pertinent details. This notification shall not change
any delivery schedule. 

  

	 	(d)	In the event of a termination for convenience or change, no claim will be allowed for any manufacture or procurement in advance of SELLER’s normal flow time unless there has
been prior written consent by LOCKHEED MARTIN. 

  

	34.	WAIVERS, APPROVALS, AND REMEDIES 

  

	 	(a)	Failure by LOCKHEED MARTIN to enforce any of the provisions of this Contract shall not be construed as a waiver of the requirements of such provisions, or as a waiver of the right
of LOCKHEED MARTIN thereafter to enforce each such provision. 

  

	 	(b)	LOCKHEED MARTIN’s approval of documents shall not relieve SELLER of its obligation to comply with the requirements of this Contract. 

  

	 	(c)	The rights and remedies of LOCKHEED MARTIN in this Contract are cumulative and in addition to any other rights and remedies provided by law or in equity. 

 

	35.	WARRANTY 

  
 SELLER warrants that all Work furnished pursuant to this Contract shall strictly conform to applicable specifications, drawings, samples, descriptions,
and other requirements of this Contract and be free from defects in design, material, and workmanship. This warranty shall begin upon final acceptance and extend for a period of one (1) year. If any non-conforming Work is identified within the
warranty period, SELLER, at LOCKHEED MARTIN’s option, shall promptly repair, replace, or reperform the non-conforming Work. Transportation of replacement Work, return of non-conforming Work, and re-performance of Work shall be at SELLER’s
expense. If repair, or replacement, or reperformance of Work is not timely, LOCKHEED MARTIN may elect to return, reperform, or repair, replace, or reprocure the Work at SELLER’s expense. All warranties shall run to LOCKHEED MARTIN and its
customers. 
  
 SECTION II: FAR FLOWDOWN PROVISIONS 
  

	A.	INCORPORATION OF FAR CLAUSES 

  
 The Federal Acquisition Regulation (FAR) clauses referenced below are incorporated herein by reference, with the same force and effect as if they were
given in full text, and are applicable, including any notes following the clause citation, to this Contract. If the date or substance of any of the clauses listed below is different from the date or substance of the clause actually incorporated in
the Prime Contract referenced by number herein, the date or substance of the clause incorporated by said Prime Contract shall apply instead. The Contracts Disputes Act shall have no application to this Contract. Any reference to a
“Disputes” clause shall mean the “Disputes” clause of this Contract. 
  

	B.	GOVERNMENT SUBCONTRACT 

  
 This Contract is entered into by the parties in support of a U.S. Government contract. 
  
 As used in the FAR clauses referenced below and otherwise in this Contract: 
  

	 	1.	“Commercial Item” means a commercial item as defined in FAR 2.101. 

  

	 	2	“Contract” means this contract. 

  

	 	3.	“Contracting Officer” shall mean the U.S. Government Contracting Officer for LOCKHEED MARTIN’s government prime contract under which this Contract is entered.

  

	 	4.	“Contractor” and “OFFEROR” means the SELLER, as defined in this CORPDOC 2, acting as the immediate (first tier) subcontractor to LOCKHEED MARTIN.

  

	 	5.	“Prime Contract” means the contract between LOCKHEED MARTIN and the U.S. Government or between LOCKHEED MARTIN and its higher-tier contractor who has a contract with the
U.S. Government. 

  

	 	6.	“Subcontract” means any contract placed by the contractor or lower-tier subcontractors under this Contract. 

  

	C.	NOTES 

  

	 	1.	Substitute “LOCKHEED MARTIN” for “Government” or “United States” throughout this clause. 

  

	 	2.	Substitute “LOCKHEED MARTIN Procurement Representative” for “Contracting Officer”, “Administrative Contracting Officer”, and “ACO” throughout
this clause. 

  

	 	3.	Insert “and LOCKHEED MARTIN” after “Government” throughout this clause. 

  

	 	4.	Insert “or LOCKHEED MARTIN” after “Government” throughout this clause. 

  

	 	5.	Communication/notification required under this clause from/to the Contractor to/from the Contracting Officer shall be through LOCKHEED MARTIN. 

  

	 	6.	Insert “and LOCKHEED MARTIN” after “Contracting Officer”, throughout the clause. 

  

	 	7.	Insert “or LOCKHEED MARTIN PROCUREMENT REPRESENTATIVE” after “Contracting Officer”, throughout the clause. 

  

 6 

	D.	AMENDMENTS REQUIRED BY PRIME CONTRACT 

  
 Contractor agrees that upon the request of LOCKHEED MARTIN it will negotiate in good faith with LOCKHEED MARTIN relative to amendments to this Contract to
incorporate additional provisions herein or to change provisions hereof, as LOCKHEED MARTIN may reasonably deem necessary in order to comply with the provisions of the applicable Prime Contract or with the provisions of amendments to such Prime
Contract. If any such amendment to this Contract causes an increase or decrease in the cost of, or the time required for, performance of any part of the Work under this Contract, an equitable adjustment shall be made pursuant to the
“Changes” clause of this Contract. 
  

	E.	PRESERVATION OF THE GOVERNMENT’S RIGHTS 

  
 If LOCKHEED MARTIN furnishes designs, drawings, special tooling, equipment, engineering data, or other technical or proprietary information (Furnished
Items) which the U.S. Government owns or has the right to authorize the use of, nothing herein shall be construed to mean that LOCKHEED MARTIN, acting on its own behalf, may modify or limit any rights the Government may have to authorize the
Contractor’s use of such Furnished Items in support of other U.S. Government prime contracts. 
  

	F.	FAR FLOWDOWN CLAUSES 

  
 REFERENCE    TITLE 
  

	 	1.	The following FAR clauses apply to this Contract: 

  

					
	(a)	 	52.215-20	  	REQUIREMENTS FOR COST OR PRICING DATA OR INFORMATION OTHER THAN COST OR PRICING DATA (OCT 1997) ( Note 2 applies.)
			
	(b)	 	52.215-21	  	REQUIREMENTS FOR COST OR PRICING DATA OR INFORMATION OTHER THAN COST OR PRICING DATA – MODIFICATIONS (OCT 1997) (Note 2 applies.)
			
	(c)	 	52.219-8	  	UTILIZATION OF SMALL BUSINESS CONCERNS (OCT 2000)
			
	(d)	 	52.222-21	  	PROHIBITION OF SEGREGATED FACILITIES (FEB 1999)
			
	(e)	 	52.222-26	  	EQUAL OPPORTUNITY (APR 2002) (Only paragraphs (b)(l)-(11) applies.)
			
	(f)	 	52.225-13	  	RESTRICTION ON CERTAIN FOREIGN PURCHASES (OCT 2003)
			
	(g)	 	52.244-6	  	SUBCONTRACTS FOR COMMERCIAL ITEMS (APR 2003)
			
	(h)	 	52.247-64	  	PREFERENCE FOR PRIVATELY OWNED U.S. FLAG COMMERCIAL VESSELS (APR 2003)

  

	 	2.	The following FAR clauses apply to this Contract if the value of this Contract equals or exceeds $10,000: 

  

					
	(a)	 	52.222-36	  	AFFIRMATIVE ACTION FOR WORKERS WITH DISABILITIES (JUNE 1998)

  

	 	3.	The following FAR clauses apply to this Contract if the value of this Contract equals or exceeds $25,000: 

  

					
	(a)	 	52.222-35	  	EQUAL OPPORTUNITY FOR SPECIAL DISABLED VETERANS, VETERANS OF THE VIETNAM ERA, AND OTHER ELIGIBLE VETERANS (DEC 2001)

  

	 	4.	The following FAR clauses apply to this Contract if the value of this Contract equals or exceeds $500,000: 

  

					
	(a)	 	52.219-9	  	SMALL BUSINESS SUBCONTRACTING PLAN (JAN 2002) (Applicable if the Contractor is not a small business. Note 2 is applicable to paragraph (c) only; the Contractors subcontracting plan is
incorporated herein by reference.)

  

	 	5.	The following FAR clauses apply to this Contract as indicated: 

  

					
	(a)	 	52.204-2	  	SECURITY REQUIREMENTS (AUG 1996) (Applicable if the Work requires access to classified information.)
			
	(b)	 	52.223-11	  	OZONE-DEPLETING SUBSTANCES (MAR 2001) (Applicable if the Work was manufactured with or contains ozone-depleting substances.)
			
	(c)	 	52.225-1	  	BUY AMERICAN ACT—SUPPLIES (JUN 2003) (Applicable if the Work contains other than domestic components. Note 2 applies to the first time “Contracting Officer” is mentioned in
paragraph (c).)
			
	(d)	 	52.225-5	  	TRADE AGREEMENTS (OCT 2003) (Applicable if the Work contains other than U.S. made, designated country, Caribbean or NAFTA country end products.)
			
	(e)	 	52.227-19	  	COMMERCIAL COMPUTER SOFTWARE-RESTRICTED RIGHTS (JUN 1987) (Applicable only if existing computer software is to be delivered under this Contract.)
			
	(f)	 	52.245-2	  	GOVERNMENT PROPERTY (FIXED PRICE CONTRACTS) (JUN 2003) (Applicable if Government property is furnished in the performance of this Contract. Note 1 applies except in the phrases “Government
property”, “Government-furnished property”, and in references to title to property. The second time “Government appears in paragraph (b) (ii) “Government” stays “Government”. Note 2 applies. The following is
added as paragraph (m): “Contractor shall provide to LOCKHEED MARTIN immediate notice of any disapproval, withdrawal of approval, or non-acceptance by the Government of its property control system.”)

  

 7 

	G.	CERTIFICATIONS AND REPRESENTATIONS 

  

	 	1.	This clause contains certifications and representations that are material representations of fact upon which LOCKHEED MARTIN will rely in making awards to Contractor. By
submitting its written offer, or providing oral offers/quotations at the request of LOCKHEED MARTIN, or accepting any Contract, Contractor certifies to the representations and certifications as set forth below in this clause. These certifications
shall apply whenever these terms and conditions are incorporated by reference in any Contract, agreement, other contractual document, or any quotation, request for quotation (oral or written), request for proposal or solicitation (oral or written),
issued by LOCKHEED MARTIN. Contractor shall immediately notify LOCKHEED MARTIN of any change of status with regard to these certifications and representations. 

  

	 	(a)	FAR 52.209-5 Certification Regarding Debarment, Suspension, Proposed Debarment, and Other Responsibility Matters. 

  

	 	(1)	Contractor certifies that, to the best of its knowledge and belief, that Contractor and/or any of its Principals, (as defined in FAR 52.209-5,) are not presently debarred,
suspended, proposed for debarment, or declared ineligible for the award of contracts by any Federal agency. 

  

	 	(2)	Contractor shall provide immediate written notice to LOCKHEED MARTIN if, any time prior to award of any contract, it learns that its certification was erroneous when submitted or
has become erroneous by reason of changed circumstances. 

  

	 	(b)	FAR 52.222-22 Previous Contracts and Compliance Reports. Contractor represents that if Contractor has participated in a previous contract or subcontract subject to Equal
Opportunity clause (FAR 52.222-26): (i) Contractor has filed all required compliance reports, and (ii) that representations indicating submission of required compliance reports, signed by proposed subcontractors, will be obtained before subcontract
awards. 

  

	 	(c)	FAR 52.222-25 Affirmative Action Compliance. Contractor represents: (i) that Contractor has developed and has on file at each establishment, Affirmative Action programs
required by the rules and regulations of the Secretary of Labor (41 CFR 60-1 and 60-2), or (ii) that in the event such a program does not presently exist, Contractor will develop and place in operation such a written Affirmative Action Compliance
Program within one-hundred twenty (120) days from the award of this Contract. 

  

 8 

 LOCKHEED MARTIN CORPORATION 
  

			
	CORPDOC 2B	 	

  
 NATIONAL AERONAUTICS
AND SPACE ADMINISTRATION (NASA) FLOWDOWN PROVISIONS FOR SUBCONTRACTS/PURCHASE ORDERS FOR COMMERCIAL ITEMS UNDER A U.S. GOVERNMENT PRIME CONTRACT 
  

	A.	INCORPORATION OF FAR/NASA FAR SUPP CLAUSES 

  
 The Federal Acquisition Regulation (FAR) and National Aeronautics and Space Administration (NASA) FAR Supplement (NASA FAR Supp) clauses referenced below
are incorporated herein by reference, with the same force and effect as if they were given in full text, and are applicable, including any notes following the clause citation, to this Contract. If the date or substance of any of the clauses listed
below is different from the date or substance of the clause actually incorporated in the Prime Contract referenced by number herein, the date or substance of the clause incorporated by said Prime Contract shall apply instead. The Contracts Disputes
Act shall have no application to this Contract. Any reference to a “Disputes” clause shall mean the “Disputes” clause of this Contract. 
  

	B.	GOVERNMENT SUBCONTRACT 

  
 This Contract is entered into by the Parties in support of a U.S. Government contract. 
  
 As used in the clauses referenced below and otherwise in this Contract: 
  

	 	1.	“Administrator” means the Administrator or Deputy Administrator of NASA; and the term “his duly authorized representative” means any person or persons or board
“other than the Contracting Officer” authorized to act for the Administrator. 

  

	 	2.	“Commercial Item” means a commercial item as defined in FAR 2.101. 

  

	 	3.	“Contract” means this contract. 

  

	 	4.	“Contracting Officer” shall mean the U.S. Government Contracting Officer for LOCKHEED MARTIN’s government prime contract under which this Contract is entered.

  

	 	5.	“Contractor” or “Offeror” means the SELLER, as defined in CORPDOC 2, acting as the immediate (first-tier) subcontractor to LOCKHEED MARTIN.

  

	 	6.	“Prime Contract” means the contract between LOCKHEED MARTIN and the U.S. Government or between LOCKHEED MARTIN and its higher-tier contractor who has a contract
with the U.S. Government. 

  

	 	7.	“Subcontract” means any contract placed by the Contractor or lower-tier subcontractors under this Contract. 

  

	C.	NOTES 

  

	 	1.	Substitute “LOCKHEED MARTIN” for “Government” or “United States” throughout this clause. 

  

	 	2.	Substitute “LOCKHEED MARTIN Procurement Representative” for “Contracting Officer”, “Administrative Contracting Officer”, and “ACO” throughout
this clause. 

  

	 	3.	Insert “and LOCKHEED MARTIN” after “Government”, throughout this clause. 

  

	 	4.	Insert “or LOCKHEED MARTIN” after “Government” throughout this clause. 

  

	 	5.	Communication/notification required under this clause from/to the Contractor to/from the Contracting Officer shall be through LOCKHEED MARTIN. 

  

	 	6.	Insert “and Lockheed Martin” after “Contracting Officer” throughout the clause. 

  

	 	7.	Insert “or Lockheed Martin Procurement Representative” after “Contracting Officer” throughout the clause. 

  

	D.	AMENDMENTS REQUIRED BY PRIME CONTRACT 

  
 Contractor agrees that upon the request of LOCKHEED MARTIN it will negotiate in good faith with LOCKHEED MARTIN relative to amendments to this Contract to
incorporate additional provisions herein or to change provisions hereof, as LOCKHEED MARTIN may reasonably deem necessary in order to comply with the provisions of the applicable Prime Contract or with the provisions of amendments to such Prime
Contract. If any such amendment to this Contract causes an increase or decrease in the cost of, or the time required for, performance of any part of the Work under this Contract, an equitable adjustment shall be made pursuant to the
“Changes” clause of this Contract 
  

 1 

	E.	PRESERVATION OF THE GOVERNMENT’S RIGHTS 

  
 If LOCKHEED MARTIN furnishes designs, drawings, special tooling, equipment, engineering data, or other technical or proprietary information (Furnished
Items) to which the U. S. Government owns or has the right to authorize the use of, nothing herein shall be construed to mean that LOCKHEED MARTIN, acting on its own behalf, may modify or limit any rights the Government may have to authorize the
Contractor’s use of such Furnished Items in support of other U. S. Government prime contracts. 
  

	F.	FAR FLOWDOWN CLAUSES 

			
	REFERENCE	  	TITLE

  

	 	1.	The following FAR clauses apply to this Contract: 

  

					
	 (a)
	  	52.227-14	  	RIGHTS IN DATA - GENERAL (JUN 1987)

  

	G.	NASA FAR SUPPLEMENT FLOWDOWN CLAUSES 

  

	 	1.	The following NASA FAR Supp clauses apply to this Contract: 

  

					
	 (a)
	  	18-52.208-81	  	RESTRICTIONS ON PRINTING AND DUPLICATING (OCT 2001) (Note 2 applies.)
			
	 (b)
	  	18-52.211-70	  	PACKAGING, HANDLING, AND TRANSPORTATION (JUN 2000) (Note 2 applies.)
			
	 (c)
	  	18-52.219-74	  	USE OF RURAL AREA SMALL BUSINESSES (SEP 1990)
			
	 (d)
	  	18-52.219-76	  	NASA 8 PERCENT GOAL (JUL 1997)
			
	 (e)
	  	18-52.225-70	  	EXPORT LICENSES (FEB 2000)
			
	 (f)
	  	18-52.227-14	  	RIGHTS IN DATA - GENERAL (undated) (Modifies FAR 52.227-14. Note 5 applies.)
			
	 (g)
	  	18-52.227-19	  	COMMERCIAL COMPUTER SOFTWARE-RESTRICTED RIGHTS (undated) (Modifies FAR 52.227-19. Note 6 applies.)
			
	 (h)
	  	18-52.242-73	  	NASA CONTRACTOR FINANCIAL MANAGEMENT REPORTING (JUL 2000) (Note 2 applies.)

  

	 	2.	The following NASA FAR Supp clauses apply to this Contract if the value of this Contract equals or exceeds $100,000: 

  

					
	 (a)
	  	18-52.244-70	  	GEOGRAPHIC PARTICIPATION IN THE AEROSPACE PROGRAM (APR 1985)

  

	 	3.	The following NASA FAR Supp clauses apply to this Contract if the value of this Contract equals or exceeds $500,000: 

  

					
	 (a)
	  	18-52.219-75	  	SMALL BUSINESS SUBCONTRACTING REPORTING (MAY 1999) (Applicable if FAR 52.219-9 applies to this Contract.)

  

	 	4.	The following NASA FAR Supp clauses apply to this Contract as indicated: 

  

					
			
	 (a)
	  	18-52.223-70	  	SAFETY AND HEALTH (APR 2002) (Applicable when any of the conditions in NASA FAR Supp 1823.7001 (a) exist. Note 2 applies to paragraphs (d), (e), (f) and (h). Notes 3 and 6 apply to paragraph
(i). Note 4 applies to paragraphs (c) and (g)(1).)
			
	 (b)
	  	18-52.223-71	  	FREQUENCY AUTHORIZATION (DEC 1988) (Applicable if this Contract requires the development, production, test or operation of a device for which a radio frequency is required. Note 2
applies)
			
	 (c)
	  	18-52.223-74	  	DRUG AND ALCOHOL FREE WORKFORCE (MAR 1996) (Applicable if Work is performed by an employee in a sensitive position as defined in the clause.)
			
	 (d)
	  	18-52.227-11	  	PATENT RIGHTS - RETENTION BY THE CONTRACTOR (SHORT FORM) (undated) (Applicable if this Contract is for experimental, developmental, or research Work and Contractor is a small business concern
or domestic nonprofit organization. Reports required by this clause shall be filed with the agency identified in this Contract. If no agency is identified, contact the LOCKHEED MARTIN Procurement Representative identified on the face of this
Contract.)
			
	 (e)
	  	18-52.227-70	  	NEW TECHNOLOGY (MAY 2002) (Applicable if this Contract is for experimental, developmental, or research work to be performed by other than a small business firm or non-profit organization. Note 2
applies to (g)(1) the first time “Contracting Officer” appears, (g)(4) and (h). Note 4 applies to (g)(4).)
			
	 (f)
	  	18-52.227-71	  	REQUESTS FOR WAIVER OF RIGHTS TO INVENTIONS (APR 1984) (Applicable if 18-52.227-70 applies.)
			
	 (g)
	  	18-52.227-72	  	DESIGNATION OF NEW TECHNOLOGY REPRESENTATIVE AND PATENT REPRESENTATIVE (JUL 1997) (Applicable if this Contract contains either of the clauses at FAR 52.227-11 or 18-52.227-70. The respective
representatives referenced in the clause are identified in the Schedule.)
			
	 (h)
	  	18-52.227-86	  	COMMERCIAL COMPUTER SOFTWARE - LICENSING (DEC 1987) (Applicable for the purchase of existing computer software in accordance with FAR 27.405(b)(2). Replaces FAR 52.227-19. Note 6
applies.)
			
	 (i)
	  	18-52.227-87	  	TRANSFER OF TECHNICAL DATA UNDER SPACE STATION INTERNATIONAL AGREEMENT (APR 1989) (Applicable if this Contract supports Space Station Freedom Program activities that may involve transfer of
technical data subject to the International Traffic in Arms Regulations (ITAR), 22 CFR Parts 120-130, or the Export Administration Regulations (EAR), 15 CFR Parts 730-774, in accordance with the NASA Export Control Program.)

  

 2 

 OMB Approval 2700-0042 
  

																	
	SOLICITATION, OFFER AND AWARD	  	 1.      THIS CONTRACT IS A RATED ORDER UNDER DPAS (15 CFR 350)
	  	Ø      	  	 RATING
 DO-C9
	  	 PAGE
 i of 52

															
					
	 2. CONTRACT NO.
 NNJ04AA03C
	  	3. SOLICITATION NO.	  	4. TYPE OF SOLICITATION
 ̈ SEALED BID (IFB)
x NEGOTIATED (RFP)	 	5. DATE ISSUED	  	6. REQUISITION/PURCHASE NO. GF80726B11

			
	7. ISSUED BY	  	CODE	 	8. ADDRESS OFFER TO (If other than Item 7)

  
 LOCKHEED MARTIN INTEGRATED SYSTEMS

 595 GEMINI 
 HOUSTON, TX 77058 
  
 NOTE: In sealed bid solicitations “offer” and “offeror” mean
“bid” and “bidder” 
  
 SOLICITATION

  
 9. Sealed offers in original and (See Provision
L.15)         copies for furnishing the supplies or services in the Schedule will be received at the place specified in Item 8, or if handcarried, in the depository located in See Provision L.14 until 11:00
a.m. local time, on See Provision L.14 (date). 
  
 CAUTION - LATE
Submissions, Modifications, and Withdrawals: See Section L, Provision No. 52.214-7 or 52.215-1. All offers are subject to all terms and conditions contained in this solicitation. 
  

											
	 10. FOR
 INFORMATION
 CALL:
 Ø
	  	 A. NAME
 Gary Moeller
	  	B. TELEPHONE NO. (NO COLLECT CALLS)	  	C. EMAIL ADDRESS
	  	  	 AREA CODE
 281
	  	 NUMBER
 283-4375
	  	EXT.	  

  
 11. TABLE OF
CONTENTS 
  

															
	(X).	  	SEC.	  	DESCRIPTION	  	PAGE(S)	 	(X)	 	SEC.	  	DESCRIPTION	  	PAGE(S)
	PART I – THE SCHEDULE	  	 	 	PART II – CONTRACT CLAUSES
	x	  	A	  	SOLICITATION/CONTRACT FORM	  	6	 	x	 	I	  	CONTRACT CLAUSES	  	3
	x	  	B	  	SUPPLIES OR SERVICES AND PRICES/COSTS	  	2	 	PART III – LIST OF DOCUMENTS, EXHIBITS AND OTHER
ATTACH.
	x	  	C	  	DESCRIPTION/SPECS./WORK STATEMENT	  	1	 	x	 	J	  	LIST OF ATTACHMENTS	  	1
	x	  	D	  	PACKAGING AND MARKING	  	2	 	PART IV – REPRESENTATIONS AND INSTRUCTIONS
	x	  	E	  	INSPECTION AND ACCEPTANCE	  	2	 	 ̈	 	K	  	REPRESENTATIONS, CERTIFICATIONS AND	  	 
	x	  	F	  	DELIVERIES OR PERFORMANCE	  	2	 	 	 	 	  	OTHER STATEMENTS OF OFFERORS	  	 
	x	  	G	  	CONTRACT ADMINISTRATION DATA	  	11	 	 ̈	 	L	  	INSTRS., CONDS., AND NOTICES TO OFFERORS	  	 
	x	  	H	  	SPECIAL CONTRACT REQUIREMENTS	  	22	 	 ̈	 	M	  	EVALUATION FACTORS FOR AWARD	  	 

  
 OFFER (Must
be fully completed by offeror) 
  
 NOTE: Item 12 does not apply if the
solicitation includes the provisions at 52.214-16, Minimum Bid Acceptance Period. 
  

	12.	In compliance with the above, the undersigned agrees, if this offer is accepted within         calendar days (60 calendar days unless a
different period is inserted by the offeror) from the date for receipt of offers specified above, to furnish any or all items upon which prices are offered at the price set opposite each item, delivered at the designated point(s), within the
time specified in the schedule. 

  

																											
	 13.    DISCOUNT FOR PROMPT PAYMENT
(See Section I, clause No. 52-232-8)
	  	Ø      	  	10 CALENDAR DAYS
%	  	20 CALENDAR DAYS
%	  	30 CALENDAR DAYS
%	  	CALENDAR DAYS
%

																									
	 14.    ACKNOWLEDGMENT OF AMENDMENTS (The offeror acknowledges receipt of amendments to the
SOLICITATION). For offerors and related documents numbered and dated:
	  	AMENDMENT NO	  	DATE	  	AMENDMENT NO	  	DATE

					
	 15.    NAME AND ADDRESS OF OFFEROR
	  	 CODE                      FACILITY             
       
	  	 16.    NAME AND TITLE OF PERSON AUTHORIZED TO SIGN OFFER (Type or print)

	 	  	 SPACEHAB, Inc.
 12130 Highway 3, Bldg 1
 Webster, TX 77598
	  	 

																									
	 15B.TELEPHONE NO. (Include area code)
	  	 15C. CHECK IF REMITTANCE ADDRESS IS DIFFERENT FROM ABOVE – ENTER
  ̈ SUCH ADDRESS IN SCHEDULE
	  	17. SIGNATURE	  	18. OFFER DATE

  
 AWARD (To be
completed by Lockheed Martin) 
  

																	
	 19.    ACCEPTED AS TO ITEMS NUMBERED
	  	 20. AMOUNT
 $53,271,651
	  	21. ACCOUNTING AND APPROPRIATION

																				
				
	 22.    AUTHORITY FOR USING OTHER THAN FULL AND OPEN COMPETITION

 ̈10 U.S.C. 2304(c)
(        )             ̈ 41 U.S.C.
253(c)(        )
	  	 23.    SUBMIT INVOICES TO ADDRESS SHOWN IN: (4 copies unless otherwise specified)
	  	Ø	 	  	ITEM

  

																	
	 24.    ADMINISTERED BY (If other than Item 7)
	  	CODE                     	  	25. PAYMENT WILL BE MADE BY	  	CODE                     

  

																	
	 26.    NAME OF AUTHORIZED REPRESENTATIVE (Type or______
	  	 27.    LOCKHEED MARTIN CORPORATION
	  	 28.    AWARD DATE

	 	  	(Signature of Authorized Representative)	  	 

  
 IMPORTANT - Award will be made on this
Form, or on Standard Form 26, or by other authorized official written notice. 

					
	Purchase Order No. GF80726B11	  	 
	SECTION A	  	CARGO MISSION	  	ii

  
 SECTION A

 SUBCONTRACT FORM 
  
 This firm fixed price subcontract is entered into between Lockheed Martin Integrated Systems, hereinafter referred to as Lockheed Martin, LMIS, or Buyer
(interchangeably) and SPACEHAB, Inc., herein after referred to as SPACEHAB, SHI, subcontractor or seller. 
  
 This subcontract is issued in support of U.S. Government Prime Contract 
 NNJ04AA03C. 
  

	A.1	DETAILED TABLE OF CONTENTS 

  
 This subcontract consists of the following Sections: 
  

					
	 	  	 	  	PAGE

	 SECTION A - SOLICITATION/CONTRACT FORM, SF33
	  	 
			
	 A.1
	  	 DETAILED TABLE OF CONTENTS
	  	ii
		
	 SECTION B - SUPPLIES OR SERVICES AND PRICES/COSTS
	  	 
			
	 B.1
	  	 TOTAL FIRM FIXED PRICE
	  	B-1
	 B.2
	  	 ITEM PRICES
	  	B-1
	 B.3
	  	 PAYMENT SCHEDULE
	  	B-2
	 B.4
	  	 RESERVED
	  	B-2
	 B.5
	  	 AVAILABLE SUBCONTRACT FUNDING
	  	B-2
	 	  	 EXHIBIT B-1 (PAYMENT SCHEDULE)
	  	 
		
	 SECTION C - DESCRIPTION/SPECIFICATIONS/WORK STATEMENTS
	  	 
			
	 C.1
	  	 SCOPE OF WORK
	  	C-1
		
	 SECTION D - PACKAGING AND MARKING
	  	 
			
	 D.1
	  	 LISTING OF CLAUSES INCORPORATED BY REFERENCE
	  	D-1
	 D.2
	  	 PACKAGING, HANDLING & TRANSPORTATION
	  	D-1
	 D.3
	  	 JSC MARKING INSTRUCTIONS
	  	D-1
	 D.4
	  	 KSC 52.247-92 KSC MARKING INSTRUCTIONS
	  	D-2

					
	Purchase Order No. GF80726B11	  	 
	SECTION A	  	CARGO MISSION	  	iii

  

					
	 SECTION E - INSPECTION AND ACCEPTANCE
	  	 
			
	 E.1
	  	 LISTING OF CLAUSES INCORPORATED BY REFERENCE
	  	E-1
	 E.2
	  	 RESERVED
	  	E-1
	 E.3
	  	 INSPECTION AND ACCEPTANCE
	  	E-1
	 E.4
	  	 SUBMISSION OF MATERIAL INSPECTION AND RECEIVING REPORTS
	  	E-1
		
	 SECTION F - DELIVERIES OR PERFORMANCE
	  	 
			
	 F.1
	  	 LISTING OF CLAUSES INCORPORATED BY REFERENCE
	  	F-1
	 F.2
	  	 FLIGHT ITEM
	  	F-1
	 F.3
	  	 KSC SHIPPING INSTRUCTIONS
	  	F-1
	 F.4
	  	 PLACE OF PERFORMANCE
	  	F-2
	 F.5
	  	 PERIOD OF PERFORMANCE
	  	F-2
	 F.6
	  	 DELIVERIES
	  	F-2
	 F.7
	  	 OPTION FOR EAS
	  	F-2
	 F.8
	  	 OPTION FOR ADDITIONAL FRAM SITES
	  	F-2

					
	Purchase Order No. GF80726B11	  	 
	SECTION A	  	CARGO MISSION	  	iv

  

					
	 SECTION G - CONTRACT ADMINISTRATION DATA
	  	 
			
	 G.1
	  	 LISTING OF CLAUSES INCORPORATED BY REFERENCE
	  	G-1
	 G.2
	  	 RESERVED
	  	G-1
	 G.3
	  	 SUBMISSION OF VOUCHERS FOR PAYMENT
	  	G-1
	 G.4
	  	 RESERVED
	  	G-2
	 G.5
	  	 TECHNICAL DIRECTION
	  	G-2
	 G.6
	  	 RESERVED
	  	G-2
	 G.7
	  	 INSTALLATION-ACCOUNTABLE GOVERNMENT PROPERTY
	  	G-2
	 G.8
	  	 LIST OF INSTALLATION-ACCOUNTABLE PROPERTY AND SERVICES
	  	G-5
	 G.9
	  	 RESERVED
	  	G-6
	 G.10
	  	JSC 52.204-91 SECURITY/BADGING REQUIREMENTS FOR FOREIGN NATIONAL VISITORS AND EMPLOYEES/REPRESENTATIVES OF FOREIGN CONTRACTORS	  	G-6
	 G.11
	  	 IDENTIFICATION OF EMPLOYEES
	  	G-7
	 G.12
	  	 KSC 52.204-90 SECURITY CONTROLS AT KSC
	  	G-7
	 G.13
	  	PROPERTY MANAGEMENT OF THE UNITED STATES ON-ORBIT SEGMENT (USOS) VEHICLE: ON-ORBIT ACCOUNTABILITY	  	G-9
	 G.14
	  	 JSC HAZARDOUS MATERIALS USE
	  	G-9
	 G.15
	  	 WORK ELIGIBILITY
	  	G-11
		
	 SECTION H - SPECIAL CONTRACT REQUIREMENTS
	  	 
			
	 H.1
	  	 LISTING OF CLAUSES INCORPORATED BY REFERENCE
	  	H-1
	 H.2
	  	 RESERVED
	  	H-1
	 H.3
	  	 REPRESENTATIONS, CERTIFICATIONS, AND OTHER STATEMENTS OF OFFERORS
	  	H-1
	 H.4
	  	 SUPERSEDING OF LETTER CONTRACT
	  	H-2
	 H.5
	  	JSC 52.227-91 (LIMITED) RELEASE OF CONTRACTOR CONFIDENTIAL BUSINESS INFORMATION (CBI)	  	H-2
	 H.6
	  	 KSC 52.223-97 HAZARDOUS WASTES
	  	H-3
	 H.7
	  	 KSC 52.223-94 HAZARD COMMUNICATION
	  	H-7

					
	Purchase Order No. GF80726B11
	SECTION A	  	CARGO MISSION	  	v

  

					
	 H.8
	  	KSC 52.242-90 CONTROLS APPLICABLE TO CONTRACTOR’S ACTIVITIES	  	H-7
	 H.9
	  	FLIGHT INSURANCE	  	H-8
	 H.10
	  	RESERVED	  	H-10
	 H.11
	  	RESERVED	  	H-10
	 H.12
	  	RESERVED	  	H-10
	 H.13
	  	RESERVED	  	H-10
	 H.14
	  	DATA RIGHTS NOTICE	  	H-10
	 H.15
	  	RESTRICTED RIGHTS NOTICE	  	H-10
	 H.16
	  	LIMITED RIGHTS DATA NOTICE	  	H-11
	 H.17
	  	MANAGEMENT AND PROTECTION OF DATA OF THIRD PARTIES	  	H-12
	 H.18
	  	SPECIAL COMPUTER SOFTWARE PROVISION	  	H-13
	 H.19
	  	ASSOCIATE CONTRACTOR AGREEMENT FOR ISS OPERATIONS AND UTILIZATION ACTIVITIES	  	H-13
	 H.20
	  	INFORMATION INCIDENTAL TO CONTRACT ADMINISTRATION	  	H-13
	 H.21
	  	RESERVED	  	H-14
	 H.22
	  	RESERVED	  	H-14
	 H.23
	  	GOVERNMENT-PROVIDED RUSSIAN LANGUAGE AND LOGISTICS SERVICES (RLLS)	  	H-14
	 H.24
	  	RESERVED	  	H-15
	 H.25
	  	RESERVED	  	H-15
	 H.26
	  	ADDITIONAL EXPORT CONTROL REQUIREMENTS	  	H-15
	 H.27
	  	SUBCONTRACTING WITH RUSSIAN ENTITIES FOR GOODS OR SERVICES	  	H-17
	 H.28
	  	FLEXIBILITY IN OPERATIONS	  	H-18

					
	Purchase Order No. GF80726B11
	SECTION A	  	CARGO MISSION	  	vi

  
 SECTION I – CONTRACT
CLAUSES 
  

					
	I.1	  	CLAUSES INCORPORATED BY REFERENCE	  	I-1
	I.2	  	MODIFICATION OF INCORPORATED TERMS AND CONDITIONS	  	I-1

  
 SECTION J – LIST OF
ATTACHMENTS 
  

					
	J.1	  	LIST OF ATTACHMENTS	  	J-1

					
	 Document No.
	  	Acquisition Title	  	Page No.
	
	Purchase Order No. GF80726B11
	SECTION B	  	COMMERCIAL CARRIER SERVICES	  	B-1
			
	 	  	SECTION B	  	 
			
	 	  	SUPPLIES OR SERVICES AND PRICES/COSTS	  	 

  

	B.1	TOTAL FIRM FIXED PRICE 

  
 The total firm fixed price of this subcontract is $53,271,651.00. 
  
 (End of Clause) 
  

	B.2	ITEM PRICES 

  
 The subcontractor shall provide commercial carrier services in accordance with the Statement of Work. The firm fixed price for each line item is set forth in Table B-2 below. The price of this subcontract includes the
SHOSS-ED On-Orbit stay for the period through September 2008 and extended on-call support through December 2009. The price of this subcontract includes the increase of the LSM’s mass capability from 5400 pounds to 6000 pounds once the JSC ISS
Structures Working Group approves this mass capability. 
  

						
	 Table B-2

	  	 	  	 
	 Line Item No.

	  	 Description

	  	Total Price

	 001
	  	 LSM Asset Services
	  	$	24,942,956
	 002
	  	 ICC Asset Services
	  	$	8,400,000
	 003
	  	 Transition Asset Services
	  	$	2,655,044
	 004
	  	 12A.1 LSM I & O Services
	  	$	5,688,461
	 005
	  	 13A.1 LSM I & O Services
	  	$	5,879,461
	 006
	  	 12A.1 ICC I & O Services
	  	$	1,722,918
	 007
	  	 13A.1 ICC I &O Services
	  	$	1,678,135
	 008
	  	 ULF1.1 ICC I & O Services
	  	$	1,954,681
	 009
	  	 ULF1.1 Adjustment
	  	$	349,995
	 010
	  	 Early Ammonia Servicer (EAS) [Option]
	  	$	454,795
	 011
	  	 Additional FRAM Sites (each) [Option]
	  	$	38,928

  
 (End of Clause)

					
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	  	Acquisition Title	  	Page No.
		
	Purchase Order No. GF80726B11	  	 
	SECTION B	  	COMMERCIAL CARRIER SERVICES	  	B-2

  

	B.3	PAYMENT SCHEDULE 

  
 Payment shall be made in accordance with the attached Exhibit B-l payment schedule. 
  
 (End of Clause) 
  

	B.4	RESERVED 

  
 (End of Clause) 
  

	B.5	AVAILABLE SUBCONTRACT FUNDING 

  
 There is presently available for payment and allotted to this subcontract the amount of $23,697,713.00. It is estimated that this amount will cover payments through March
31, 2005. The parties contemplate that the Buyer will allot additional funds incrementally to the subcontract up to the full amount specified in the payment schedule. 
  
 If, after notification, additional funds are not allotted by the end of the period funded or another agreed-upon date, upon the
seller’s written request the Buyer will issue a stop work order for this subcontract in accordance with the provisions of the Stop Work Order clause of this subcontract. 
  
 Buyer is not obligated to pay seller amounts in excess of the total amount allotted to this subcontract by this clause. Seller agrees that
failure to allot funds in accordance with the payment schedule will not change any of the prices therein. Nothing in this clause shall affect the right of Buyer to terminate this subcontract. 
  
 (End of Clause) 
  
 [END OF SECTION] 

					
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	  	Acquisition Title	  	Page No.
		
	Purchase Order No. GF80726B11	  	 
	SECTION C	  	COMMERCIAL CARRIER SERVICES	  	C-1

  

 SECTION C 
  
 DESCRIPTION/SPECIFICATIONS/WORK STATEMENTS 
  

	C.1	SCOPE OF WORK 

  
 The subcontractor shall provide all personnel, materials, and facilities (except as otherwise provided for in this subcontract) necessary to perform those functions set forth in the attached Statement of Work for
Commercial Carrier Services. 
  
 (End of Clause) 
  
 [END OF SECTION] 

					
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	  	Acquisition Title	  	Page No.
		
	Purchase Order No. GF80726B11	  	 
	SECTION D	  	COMMERCIAL CARRIER SERVICES	  	D-1

  

 SECTION D 
  
 PACKAGING AND MARKING 
  

	D.1	LISTING OF CLAUSES INCORPORATED BY REFERENCE 

  

	I.	FEDERAL ACQUISITON REGULATION (48 CHAPTER 1) CLAUSES: 

  
 None included by reference. 
  

	II.	NASA FAR SUPPLEMENT (48 CFR CHAPTER 18) CLAUSES: 

  

			
	 Clause Number

	  	 Title

		
	 None included by reference
	  	 

  

	D.2	NFS 1852.211-70 PACKAGING, HANDLING, AND TRANSPORTATION (JUN 2000) 

  
 (a) The subcontractor shall comply with NPG 6000.1E, “Requirements for Packaging, Handling, and Transportation for Aeronautical and
Space Systems, Equipment, and Associated Components”, dated April 26, 1999, as may be supplemented by the statement of work or specifications of this subcontract, for all items designated as Class I, II, or III. 
  
 (b) The subcontractor’s packaging, handling, and transportation procedures may be used,
in whole or in part, subject to the written approval of Lockheed Martin, provided (1) the subcontractor’s procedures are not in conflict with any requirements of this subcontract, and (2) the requirements of this subcontract shall take
precedence in the event of any conflict with the subcontractor’s procedures. 
  
 (c) The subcontractor must place the requirements of this clause in all subcontracts for items that will become components of deliverable Class I, II, or III items. 
  
 (End of Clause) 
  

	D.3	JSC MARKING INSTRUCTIONS 

  
 Transportation Officer, Building 421, NASA Johnson Space Center, 2101 NASA Road 1, Houston, TX 77058-3696 

					
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	SECTION D	  	COMMERCIAL CARRIER SERVICES	  	D-2

  

 In addition, special marks or ultimate consignment will be shown as: 
  

			
	 Mark for:
	  	Accountable Property Officer                         
{subcontractor fill in}         
	 Mark with:
	  	Purchase Request No.:                      {subcontractor fill
in}        
	 	  	Contract Number: {subcontractor fill in}

  
 For re-issue to:
                     {subcontractor fill in}          
  
 (End of Clause) 
  

	D.4	KSC 52.247-92 MARKING INSTRUCTIONS (NOV 2000) 

  
 Transportation Officer, NASA J-BOSC Warehouse, Building M6-744 Kennedy Space Center, Florida 32899 
  
 In addition, special marks or ultimate consignee will be shown as: 
  
 Marked For: 
 NASA Transportation Office

 CAPPS Warehouse, Building M6-698 
 Kennedy Space Center, FL
32899 
  
 Contract # {subcontractor fill in} 
  
 (End of Clause) 
  
 [END OF SECTION] 

					
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	  	Acquisition Title	  	Page No.
		
	Purchase Order No. GF80726B11	  	 
	SECTION E	  	COMMERCIAL CARRIER SERVICES	  	E-1

  

 SECTION E 
  
 INSPECTION AND ACCEPTANCE 
  

	E.1	LISTING OF CLAUSES INCORPORATED BY REFERENCE 

  

	I.	FEDERAL ACQUISITION REGULATION (48 CFR CHAPTER 1) CLAUSES: 

  

			
	 Clause
 Number

	  	 Title

	 None included by reference
	  	 

  

	II.	NASA FAR SUPPLEMENT (48 CFR CHAPTER 18) CLAUSES: 

  

			
	 Clause
 Number

	  	 Title

	1852.246-73	  	Human-Space Flight Item (MAR 1997)

  

	E.2	Reserved 

  
 (End of Clause) 
  

	E.3	INSPECTION AND ACCEPTANCE 

  
 Final inspection and acceptance shall be accomplished by Lockheed Martin at any of the locations specified in the statement of work where services shall be provided.
Acceptance of flight and ground hardware and integration and operations services shall be by individual flight. 
  
 (End of Clause) 
  

	E.4	SUBMISSION OF MATERIAL INSPECTION AND RECEIVING REPORTS 

  
 Material Inspection and Receiving Reports (DD Form 250) are only required for equipment and hardware deliveries and system turnovers to the government. DD Form 250s will
normally be signed by the government within 30 days of contractor submission. If Lockheed Martin is required to submit any DD Form 250 in relation to this subcontract, subcontractor agrees to furnish any necessary assistance and information to
complete the DD Form 250(s). 
  
 (End of Clause) 
  
 [END OF SECTION] 

					
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	Purchase Order No. GF80726B11	  	 
	SECTION F	  	COMMERCIAL CARRIER SERVICES	  	F-1

  

 SECTION F 
  
 DELIVERIES OR PERFORMANCE 
  

	F.1	LISTING OF CLAUSES INCORPORATED BY REFERENCE 

  

	I.	FEDERAL ACQUISITON REGULATION (48 CHAPTER 1) CLAUSES: 

  

			
	 Clause
 Number

	  	 Title

		
	52.242-15	  	Stop-Work Order (AUG 1989)

  

	II.	NASA FAR SUPPLEMENT (48 CFR CHAPTER 18) CLAUSES: 

  

			
	1852.247-73	  	Bills of Lading (JUN 2002)

  

	F.2	JSC 52.247-95 FLIGHT ITEM (SEP 1989) 

  
 Block 16 of each DD Form 250 prepared for hardware or equipment to be shipped under this contract must be annotated as follows in 1/4-inch letters or larger by
handprinting or rubber stamp: 
  
 “THIS IS A FLIGHT ITEM” or “THIS
IS MISSION ESSENTIAL GROUND SUPPORT EQUIPMENT”, as applicable. 
  
 (End of Clause) 
  

	F.3	KSC SHIPPING INSTRUCTIONS 

  
 Ship to: 
 Transportation Office, NASA

 CAPPS Warehouse, Bldg. M6-698 
 Kennedy Space Center, FL 32899 
  
 For re-issue to:
             {subcontractor fill in}              
 (Name) (Mail Code) (Bldg.) (Rm.) 
  
 Note: See Section D for special marking instructions that may be required. 
  
 (End of Clause) 

					
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	SECTION F	  	COMMERCIAL CARRIER SERVICES	  	F-2

  

	F.4	PLACE OF PERFORMANCE 

  
 This contract may be performed at: 
  

	 	(1)	Johnson Space Center and the immediate surrounding geographical area 

  

	 	(2)	John F. Kennedy Space Center and the immediate surrounding geographical area 

  

	 	(3)	Other work locations in and outside the United States in support of the statement of work requirements. 

  
 (End of Clause) 
  

	F.5	PERIOD OF PERFORMANCE 

  
 The period of performance of this subcontract shall be in accordance with the schedule in Section B. 
  
 (End of Clause) 
  

	F.6	DELIVERIES 

  
 Deliverable items in accordance with the Statement of Work 
  
 (End of Clause) 
  

	F.7	OPTION FOR EAS 

  
 Buyer may exercise the option Line Item 10 of Table B-2 for Early Ammonia Servicer (EAS) by providing written notice to the seller at least 20 calendar days prior to the
start of the EAS integration template. 
  
 (End of Clause)

  

	F.8	OPTION FOR ADDITIONAL FRAM SITES 

  
 Buyer may exercise an option Line Item 11 of Table B-2 for additional FRAM sites by providing written notice to seller at least 20 calendar days prior to the start of the
FRAM site integration template. 
  
 (End of Clause) 
  
 [END OF SECTION] 

					
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	  	Acquisition Title	  	Page No.
		
	Purchase Order No. GF80726B11	  	 
	SECTION G	  	COMMERCIAL CARRIER SERVICES	  	G-1

  

 SECTION G 
  
 CONTRACT ADMINISTRATION DATA 
  

	G.1	LISTING OF CLAUSES INCORPORATED BY REFERENCE 

  

	I.	FEDERAL ACQUISITION REGULATION (48 CHAPTER 1) CLAUSES: 

  
 None included by reference. 
  

	II.	NASA FAR SUPPLEMENT (48 CFR CHAPTER 18) CLAUSES: 

  

			
	 CLAUSE Number

	  	 Title

	 1852.245-70
	  	Contractor Requests for Government-Owned Equipment (JUL 1997)
		
	 1852.245-73
	  	Financial Reporting of NASA Property in the Custody of Contractors (OCT 2003)

  
 (End of Clause)

  

	G.2	RESERVED 

  
 (End of Clause) 
  

	G.3	SUBMISSION OF VOUCHERS FOR PAYMENT 

  
 (a) The designated billing office for invoices is the following: 
  
 Lockheed Martin Integrated Systems 
 Accounts
Payable 
 P O Box 57639 
 Webster, Texas 77598 
  
 (b) In the event that amounts are withheld from
payment in accordance with provisions of this subcontract, a separate voucher for the amount withheld will be required before payment for that amount may be made. 

					
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	Purchase Order No. GF80726B11	  	 
	SECTION G	  	COMMERCIAL CARRIER SERVICES	  	G-2

  

 (c) It is the responsibility of the subcontractor to notify Lockheed Martin immediately upon discovery of an
overpayment made by Lockheed Martin. Subcontractor agrees to work with Lockheed Martin to arrive at a schedule for repayment. 
  
 (End of Clause) 
  

	G.4	RESERVED 

  
 (End of Clause) 
  

	G.5	TECHNICAL DIRECTION 

  
 If, in the subcontractor’s opinion, any instruction or direction provided by the Buyer constitutes a change to the subcontract, the subcontractor shall not proceed and shall notify the Buyer in writing within 4
working days after receiving it and shall request the Buyer to take action as described in this clause. Upon receiving this notification, the Buyer shall either issue an appropriate contract modification within a reasonable time or advise the
subcontractor in writing within 30 days that the instruction or direction is— 
  
 (1) Rescinded in its entirety; or 
  
 (2) Within the requirements of the
subcontract and does not constitute a change under the changes clause, and that the subcontractor should proceed promptly with its performance. 
  
 (End of Clause) 
  

	G.6	Reserved 

  
 (End of Clause) 
  

	G.7	INSTALLATION-ACCOUNTABLE GOVERNMENT PROPERTY 

  
 (a) Government property described in the clause at 1852.245-77, List of Installation-Accountable Property and Services, may be made available to the subcontractor on a
no-charge basis for use in performance of this subcontract. This property shall be utilized only within the physical confines of the NASA installation that provided the 

					
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property. Under this clause, the Government retains accountability for, and title to, the property, and the subcontractor assumes the following user
responsibilities: 
  
 PROPERTY CUSTODIAN RESPONSIBILITIES:
REFERENCE NPG 4200.2 
  
 Chapter 2: Responsibilities 
  
 Section 2.3. Property Custodians 
  
 Section 2.4 Full Time Property Custodians 
  
 Paragraphs 2.4.1 and 2.4.2 
  
 Chapter 4: Operational Procedures 
  
 Section 4.2 Identification of Equipment 
  
 Paragraphs 4.2.8, 4.2.9, 4.2.10, 
  
 Section 4.3. Standard NEMS Reports for Property Custodians. 
  
 Paragraphs 4.3.1 through 4.3.4.5 
  
 Section 4.4. Inventory Procedures. 
  
 Paragraphs 4.4.1 through 4.4.5 
  
 Chapter 5. (Entire Content) 
  
 User
Responsibilities: Reference Document (NPG 4200.2) 
  
 Chapter 2.

  
 2.7. Responsibility of the Individual. The subcontractor shall ensure
that each of its employees are responsible for Government property as follows: An employee has a duty to protect and conserve Government property and shall not use such property, or allow its use, for other than authorized purposes. Additional
responsibilities include the following: 
  
 2.7.1. Reporting any missing or
un-tagged (meeting the criteria for control) equipment, transfer, location change, or user change of equipment to the property custodian immediately. 

					
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 2.7.2. Notifying the property custodian, supervisor, and the Center security officer immediately if theft of
Government property is suspected. 
  
 2.7.3. Ensuring that equipment is used only
in pursuit of approved NASA programs and projects. 
  
 2.7.4. Notifying the
property custodian of equipment not actively being used for determination of proper disposition. 
  
 2.7.5. Ensuring that equipment is returned through the property custodian when no longer needed. Under no circumstances will an employee throw away Government equipment. 
  
 2.7.6. Assigned users retain all responsibilities including notifying property custodians of
all activity associated with the user’s assigned equipment. 
  
 2.8. The
subcontractor must ensure that all on-site subcontractor employees notify the Buyer, property custodian, and SEMO upon termination of employment. 
  
 Chapter 4. 
  
 4.2.11. The user will assist the custodian in completing NF 1618 and sign in the designated block. 
  
 The subcontractor shall establish and adhere to a system of written procedures for compliance with these user responsibilities. 
  

	(b)(1)	The official accountable record keeping, physical inventory, financial control, and reporting of the property subject to this clause shall be retained by the Government and
accomplished by the installation Supply and Equipment Management Officer (SEMO) and Financial Management Officer. Center Administrative requirements are spelled out in JPG 5151.2, JSC Support Contractor Procedures & Guidelines. If this
subcontract provides for the subcontractor to acquire property, title to which will vest in the Government, the following additional procedures apply: 

  

	 	(i)	The subcontractor’s purchase order shall require the vendor to deliver the property to the installation central receiving area; 

  

	 	(ii)	The subcontractor shall furnish a copy of each purchase order, prior to delivery by the vendor, to the installation central receiving area: 

					
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	SECTION G	  	COMMERCIAL CARRIER SERVICES	  	G-5

  

	 	(iii)	The subcontractor shall establish a record of the property as required by FAR 45.5 and 1845.5 and furnish to the Industrial Property Officer a DD Form 1149 Requisition and
Invoice/Shipping Document (or installation equivalent) to transfer accountability to the Government within 5 working days after receipt of the property by the subcontractor. The subcontractor is accountable for all contractor-acquired property until
the property is transferred to the Government’s accountability. 

  

	 	(iv)	Subcontractor use of Government property at an off-site location and off-site second tier subcontractor use require advance approval of the Buyer and notification of the SEMO. The
subcontractor shall assume accountability and financial reporting responsibility for such property. The subcontractor shall establish records and property control procedures and maintain the property in accordance with the requirements of FAR Part
45.5 until its return to the installation. 

  

	(2)	After transfer of accountability to the Government, the subcontractor shall continue to maintain such internal records as are necessary to execute the user responsibilities
identified in paragraph (a) and document the acquisition, billing, and disposition of the property. These records and supporting documentation shall be made available, upon request, to the SEMO and any other authorized representatives of the Buyer.

  
 (End of Clause) 
  

	G.8	LIST OF INSTALLATION-ACCOUNTABLE PROPERTY AND SERVICES 

  
 In accordance with the clause Installation - Accountable Government Property the subcontractor is authorized use of the types of property and services listed below, to
the extent they are available, in the performance of this subcontract within the physical borders of the installation which may include buildings and space owned or directly leased by NASA in close proximity to the installation, if so designated by
Buyer. 
  
 (a) Reserved. 
  
 (b) General - and special-purpose equipment. 
  
 (1) Equipment to be made available is TBD. The Government retains
accountability for this property under the clause Installation-Accountable Government Property, regardless of its authorized location. 
  
 (2) If the subcontractor acquires property, title to which vests in the Government pursuant to other provisions of this subcontract, this property also
shall become 

					
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accountable to the Government upon its entry into Government records as required by the clause Installation-Accountable Government Property. 
  
 (3) The subcontractor shall not bring to the installation for use under this
subcontract any property owned or leased by the subcontractor, or other property that the subcontractor is accountable for under any other Government contract, without the Buyer’s prior written approval. 
  
 (c) The user responsibilities of the subcontractor are defined in paragraph
(a) of the clause Installation-Accountable Government Property. 
  
 (End of Clause) 
  

	G.9	RESERVED 

  
 (End of Clause) 
  

	G.10 	JSC 52.204-91 SECURITY/BADGING REQUIREMENTS FOR FOREIGN NATIONAL VISITORS AND EMPLOYEES/REPRESENTATIVES OF FOREIGN CONTRACTORS (MAR 2002) 

  
 (a) An employee of a domestic Johnson Space Center (JSC) contractor or its subcontractor who
is not a U.S. citizen (foreign national) may not be admitted to the JSC site for purposes of performing work without special arrangements. In addition, all employees or representatives of a foreign JSC contractor/subcontractor may not be admitted to
the JSC site without special arrangements. For employees as described above, advance notice must be given to the Security Office of the host installation [JSC or White Sands Test Facility (WSTF)] at least 3 weeks prior to the scheduled need for
access to the site so that instructions on obtaining access may be provided. 
  
 (b) All visit/badge requests for persons described in (a) above must be entered in the NASA Request for Request (RFR) and Foreign National Management System (NFNMS) for acceptance, review, concurrence and approval purposes. When an
authorized company official requests a JSC or WSTF badge for site access, he/she is certifying that steps have been taken to ensure that its contractor or subcontractor employees, visitors, or representatives will not be given access to
export-controlled or classified information for which they are not authorized. The authorized company officials shall serve as the contractor’s representative(s) in certifying that all visit/badge request forms are processed in accordance with
JSC and WSTF security and export control procedures. No foreign national, representative, or resident alien contractor/subcontractor employee shall be granted access into JSC or WSTF until a completed RFR has been approved and processed through the
NFNMS. Unescorted 

					
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access will not be granted unless a favorable National Agency Check (NAC) has been completed by the JSC Security Office. 
  
 (c) The subcontractor agrees that it will not employ for the performance of work onsite at
the JSC or WSTF any individuals who are not legally authorized to work in the United States. If the JSC or WSTF Industrial Security Specialist or the contracting officer has reason to believe that any employee of the contractor may not be legally
authorized to work in the United States and/or on the subcontract, the subcontractor may be required to furnish copies of Form I-9 (Employment Eligibility Verification), U.S. Department of Labor Application for Alien Employment Certification, and
any other type of employment authorization document. 
  
 The subcontractor agrees
to provide the information requested by the JSC or WSTF Security Office in order to comply with NASA policy directives and guidelines related to foreign visits to NASA facilities so that (1) the visitor/employee/ representative may be allowed access
to JSC or other NASA Centers for performance of this subcontract, (2) required investigations can be conducted, and (3) required annual or revalidation reports can be submitted to NASA Headquarters. All requested information must be submitted in a
timely manner in accordance with instructions provided by JSC or any other Center to be visited. 
  
 (End of Clause) 
  

	G.11	  JSC 52.242-92 IDENTIFICATION OF EMPLOYEES (MARCH 2002) 

  
 At all times while on Government property, the contractor, subcontractors, their employees and agents shall wear badges which will be issued by the NASA Contract and Pass
Office, located in Building No. 110. Badges will be issued only between the hours of 7 a.m. and 4 p.m., Monday through Friday. Each individual who wears a badge will be required to sign personally for the badge. The subcontractor will be held
accountable for these badges, and immediately after completion of the work they shall be returned to the NASA Contract Badge and Pass Office. Failure to turn in badges upon completion of the work may result in final payment being delayed.

  
 (End of Clause) 
  

	G.12	  KSC 52.204-90 SECURITY CONTROLS AT KSC (NOV 2000) 

  

	A.	Identification of Employees 

  
 1. The subcontractor shall require each employee engaged on the work site to display NASA-furnished identification badges and special access badges at all times. The 

					
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subcontractor shall obtain and submit badging request forms for each person employed or to be employed by the subcontractor under this subcontract. The
subcontractor shall designate its own security and badging officials to act as points-of-contact for the KSC Security Office. Prior to proceeding with onsite performance, the subcontractor shall submit the following information to the Protective
Services Branch, Code TA-E2, Kennedy Space Center: 
  

	 	•	 	Contract number and location of work site(s) 

  

	 	•	 	Contract commencement and completion dates 

  

	 	•	 	Status as prime or subcontractor 

  
 d. Names of designated security and badging officials 
  
 2. Identification and badging of employees shall be accomplished as soon as practicable after award of the subcontract. During performance of the subcontract, the
subcontractor shall, upon termination of an employee, immediately deliver badges and/or passes issued to the employee to the NASA Security Office. It is agreed and understood that all NASA identification badges/passes remain the property of NASA,
and the Government reserves the right to invalidate such badges/passes at any time. 
  

	B.	Access to Controlled Areas within KSC 

  
 1. Certain areas within KSC have been designated as Controlled Areas. These are normally surrounded by fencing and have an entrance gate monitored by a guard or
monitoring device. Access into such areas is classified into “escorted” or “unescorted” access. For each employee for which the subcontractor desires to have unescorted access, the prescribed forms must be submitted to the
responsible NASA Center Security Office. Due to the time required to process requests for unescorted access, the subcontractor is advised to complete and submit the required forms as soon as practicable after subcontract award. Within 14 working
days after the receipt of the forms, the responsible NASA Center Security Office will determine whether the person is eligible for unescorted access. 
  
 2. The prime contractor is responsible for providing escort services for any of his employees and/or any subcontractor employees who are not eligible for unescorted
access. 
  
 All requests for unescorted access by subcontractors will be submitted
through the prime contractor for forwarding to the NASA Security Office. 
  
 (End of Clause) 

					
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	G.13 	PROPERTY MANAGEMENT OF THE UNITED STATES ON-ORBIT SEGMENT (USOS) VEHICLE: ON-ORBIT ACCOUNTABILITY 

  
 The parties agree that the USOS Acceptance and ISS Vehicle Sustaining Contract will be accountable for the USOS Vehicle, as defined by the
Government as Government Furnished Equipment (GFE), in connection with that contract. For purposes of this clause, USOS Vehicle GFE is defined as hardware: 1) installed on-orbit as part of the on-orbit vehicle configuration, 2) warehoused on-orbit,
3) warehoused on-ground (via Government depots, warehouses, storage facilities, etc.) that is destined for permanent operation in space, and 4) to be returned to earth for repair and refurbishment for subsequent storage and or re-manifest to the
ISS. 
  
 Property subject to this clause is identified in TBD of this subcontract.
The Cargo Mission contractor must report any loss, damage, or destruction of said property in their possession, or in the possession of its subcontractors, to the USOS Acceptance and ISS Vehicle Sustaining Contract Property Manager and the delegated
NASA or DOD Government Property Administrator cognizant of the Integration Prime Contractors’ when the property is accountable to the NAS 15-10000 Contract. The parties agree to cooperatively communicate any such incidents or related issues to
the NAS15-10000 Property Manager. 
  
 This clause does not add to or diminish the
subcontractor’s rights, responsibilities, or obligations with respect to ISS property accountable to the USOS Acceptance and ISS Vehicle Sustaining Contract (NAS 15-10000) in their possession. In addition, this clause does not relieve the
subcontractor from any other property provisions set forth in this subcontract. 
  
 (End of Clause) 
  

	G.14 	JSC 52.223-92 JSC HAZARDOUS MATERIALS USE (DEC 1999) 

  
 (a) This clause is JSC-unique, and the requirements are in addition to any U.S. Environmental Protection Agency, U.S. Occupational Safety and Health Administration, or
other state or Federal regulation or statute. Therefore, the following requirements do NOT supercede any statutory or regulatory requirements for any entity subject to this clause. 
  
 (b) “Hazardous materials,” for the purposes of this clause, consist of the following: 
  
 (1) Those materials defined as “highly hazardous chemicals” in
Occupational Safety and Health Administration Process Safety Management Regulation, 29 Code of Federal Regulation 1010.119, without regard for quantity. 

					
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 (2) Those “extremely hazardous substances” subject to the emergency planning requirements
in the Environmental Protection Agency Emergency Planning and Community Right-to-Know Regulation, 40 Code of Federal Regulation 355, Part 355, without regard for quantity. 
  
 (3) Those “hazardous substances” subject to the release notification requirements under Environmental Protection
Agency’s Emergency Planning and Community Right-to-Know Regulation, 40 Code of Federal Regulation 302.4, without regard for quantity. 
  
 (4) Any radioisotope material or device that produces ionizing radiation. 
  
 (5) Any Class II, III, or IV laser as defined by the American National Standards Institute No. Z136.1 (1986) 
  
 (6) Any explosive or any pyrotechnics. 
  
 (7) Any pesticide. 
  
 (c) The subcontractor shall develop and maintain an inventory listing the identity and
quantity of hazardous materials stored or used onsite at JSC for the performance of the subcontract. 
  
 (d) The subcontractor shall ensure that the proper training of its employees in the use and inherent hazards of these materials is accomplished prior to use. 
  
 (e) The subcontractor shall notify the JSC Occupational Health and Test Support Office (SD13)
prior to any initial use or different application of these materials. 
  
 (f) The
subcontractor shall use all hazardous materials properly and take all necessary precautions to ensure no harm is done to humans or the environment. 
  
 (g) The subcontractor shall insert the substance of this clause, including this Paragraph g with appropriate changes of designations of the parties, in subcontracts under
which hazardous materials will be utilized, or may reasonably be expected to be utilized, onsite at JSC. 
  
 (h) In the event the subcontractor fails or refuses to comply with any aspect of this clause, such failure or refusal may be considered a material breach of this subcontract. 
  
 (End of Clause) 

					
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	G.15 	WORK ELIGIBILITY 

  
 All subcontractor personnel performing under this subcontract within the United States shall be U. S. Citizens or permanent legal residents of the United States who possess valid documentation issued by the
appropriate U. S. Government Agency. Transfer of data to foreign persons shall be in accordance with the provisions of Clause H.26, NFS 1852.225-70 incorporated by Section H and Corpdoc 2B of Section I, and Paragraph 11 of Corpdoc 2 incorporated by
Section I. 
  
 (End of Clause) 
  
 [END OF SECTION] 

					
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 SECTION H 
  
 SPECIAL CONTRACT REQUIREMENTS 
  

	H.1	LISTING OF CLAUSES INCORPORATED BY REFERENCE 

  
 I. FEDERAL ACQUISITION REGULATION (48 CHAPTER 1) CLAUSES: 
 None
included by reference. 
  
 II. NASA FAR SUPPLEMENT (48 CFR CHAPTER 18)
CLAUSES: 
  

			
	 Clause
Number

	 	 Title

	 1852.208-81
	 	Restrictions on Printing and Duplicating (OCT 2001)
		
	 1852.223-70
	 	Safety and Health (APR 2002)
		
	 1852.225-70
	 	Export Licenses (FEB 2000) and (Alternate 1) (FEB 2000) and Para (b) insert: Kennedy Space Center, Johnson Space Center or Marshall Space Flight Center
		
	 1852.228-72
	 	Cross-Waiver of Liability for Space Shuttle Services (SEP 1993)
		
	 1852.228-76
	 	Cross-Waiver of Liability for Space Station Activities (DEC 1994)
		
	 1852.244-70
	 	Geographic Participation in the Aerospace Program (APR 1985)
		
	 1852.246-70
	 	Mission Critical Space System Personnel Reliability Program (MAR 1997)

  
 (End of Clause)

  

	H.2	Reserved 

  
 (End of Clause) 
  

	H.3	REPRESENTATIONS, CERTIFICATIONS, AND OTHER STATEMENTS OF OFFERORS 

  
 The General Provisions incorporated in Section I of this subcontract include self-certification statements including but not limited to Certification Regarding 

					
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Debarment, Suspension, Proposed Debarment and Other Responsibility Matters, Previous Contracts and Compliance Reports, and Affirmative Action Compliance.
Subcontractor has previously acknowledged receipt and affirmative acceptance of the self-certification requirements. 
  
 (End of Clause) 
  

	H.4	SUPERSEDING OF LETTER CONTRACT 

  
 This subcontract supersedes Letter Contract No. GF80726B11 dated 18 February 2004 and all modifications thereto in its entirety, except the Service Module Debris Panel
(SMDP) and Change Requests (CR’s). All effort performed and payments made under the letter contract are considered effort performed and payments made under this subcontract. This subcontract is the definitive subcontract contemplated by
Lockheed Martin and subcontractor in the letter contract. The SMDP and CR’s are not definitized by this subcontract. 
  
 (End of Clause) 
  

	H.5	JSC 52.227-91 (LIMITED) RELEASE OF CONTRACTOR CONFIDENTIAL BUSINESS INFORMATION (CBI) (MAY 2002) 

  
 (a) NASA may find it necessary to release information submitted by the subcontractor pursuant to the provisions of this subcontract, to
individuals not employed by NASA. Business information that would ordinarily be entitled to confidential treatment may be included in the information released to these individuals. Accordingly, by signature on this subcontract, the subcontractor
hereby consents to a limited release of its Confidential Business Information (CBI). 
  
 (b) Possible circumstances where the Agency may release the subcontractor’s CBI include the following: 
  
 (1) To other Agency contractors and subcontractors, and their employees tasked with assisting the Agency in handling and processing information and
documents in the administration of Agency contracts, such as providing post-award audit support and specialized technical support to NASA. 
  
 (2) To NASA contractors and subcontractors, and their employees engaged in information systems analysis, development, operation, and maintenance,
including performing data processing and management functions for the Agency. 

					
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 (c) NASA recognizes its obligation to protect the subcontractor from competitive harm that could result from the
release of such information to a competitor. Except where otherwise provided by law, NASA will permit the limited release of CBI under subparagraphs (1) or (2) only pursuant to non-disclosure agreements signed by the assisting contractor or
subcontractor, and their individual employees who may require access to the CBI to perform the assisting contract. 
  
 (d) NASA’s responsibilities under the Freedom of Information Act are not affected by this clause. 
  
 (e) The subcontractor agrees to include this clause, including this paragraph (e), in all subcontracts at all levels awarded pursuant to
this subcontract that require the furnishing of CBI by the subcontractor. 
  
 (End of Clause) 
  

	H.6	KSC 52.223-97 HAZARDOUS WASTES (FEB 1999) 

  
 Hazardous and controlled waste shall be managed in accordance with all applicable statutes, rules, orders and regulations which may include but are not limited to 40 CFR
Parts 260 - 268, 273, 279, and 761, KHB 8800.7 “Hazardous Waste Management,” and as outlined below. In no case shall hazardous waste be transported from KSC by the subcontractor or his representatives 
  
 A. The subcontractor will be responsible for identifying processes and operations, and the
location and nature of all potentially hazardous and controlled waste including any chemicals, paints, solvents, petroleum, oil and lubricant (POL) products, and their containers, as defined in 40 CFR Parts 261, 273, 279, or 761. Copies of Material
Safety Data Sheets and a completed KSC Form 25-551 “Process Waste Questionnaire” shall be prepared by the subcontractor for each material which may be generated as a waste and be provided to the Buyer 14 days prior to the start of the
waste generation process. No substances shall be delivered to KSC without the appropriate Material Safety Data Sheets. 
  
 B. The Buyer will obtain a “Technical Response Package” (TRP) containing a hazard determination, and analytical, packaging, labeling, and disposal requirements
per KHB 8800.7 (as revised). This information will be forwarded to the subcontractor within 30 calendar days after receipt of a Process Waste Questionnaire. The TRP will also provide any site specific waste management requirements generated because
of the contractors work plan. 
  
 C. An on-site satellite waste accumulation area
will be established by the subcontractor within 50 ft. and within sight of any point where hazardous or controlled wastes maybe generated. If a satellite accumulation area must be 

					
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more than 50 ft. from the point of generation, or out of sight of the generator, a written request must be provided to the Buyer 14 days prior to the start
of the waste generating process. The subcontractor must receive written approval of the variance prior to placing the satellite site in service. Potential or identified hazardous and/or controlled wastes will be stored in the appropriate containers
and properly labeled inside the accumulation area in accordance with KHB 8800.7 (as revised). The Environmental Protection Agency has set the following standards for wastes collected at satellite accumulation areas: 
  
 1. Hazardous wastes at satellite accumulation areas must be collected in containers.

  
 2. No more than 55 gallons of hazardous waste or 1 quart of acutely hazardous
wastes may be accumulated. 
  
 3. If more than 55 gallons of waste or 1 quart of
acutely hazardous waste is generated, the container holding the excess waste must be marked with the date the excess waste began accumulating. Within three days, the excess waste will be transferred to a 90-day accumulation point or a permanent
treatment, storage, and disposal facility in accordance with paragraph’s “F” and “G” below. 
  
 4. Containers must be labeled with either the words “Hazardous Waste” or with other words which identify the contents of the drum in accordance with KHB 8800.7
(as revised). 
  
 5. The waste being placed in the container must be compatible
with the container. 
  
 6. A container holding hazardous waste must always be kept
closed during accumulation except when it is necessary to add or remove waste. 
  
 D. DOT compliant storage containers will be provided to the subcontractor, by the government, as required during the subcontract performance period. The Buyer will arrange for the containers to be available at the J-BOSC Supply Building,
M6-744, at the request of the construction contractor. The subcontractor will request storage containers in writing from the Buyer a minimum of 3 days prior to the required need date. The subcontractor will be responsible for transporting the
containers from building M6-744 to the project site. 
  
 E. At the request of the
subcontractor, the Buyer will provide any analytical support required by the TRP. The Buyer will arrange for all sampling and testing of potentially hazardous or controlled waste. 

					
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 F. Within 48 hours of having waste ready for disposal, the subcontractor shall notify the Buyer to arrange for
pick-up and removal. Documentation including the waste type, quantity, locations, and organization responsible for the waste will be provided on KSC Form 26-541, “Hazardous Waste Manifest,” to the Buyer when requesting disposal services
and to the disposal personnel at the time of the waste pick-up. 
  
 G. If more
than 55 gallons of hazardous waste are generated at a satellite accumulation site, the subcontractor will be responsible for delivering the accumulated waste to a 90 day staging site within 3 days of the date on which the excess waste began to
accumulate. A 90 day staging site will be made available to the subcontractor, at KSC, as required. The subcontractor shall notify the Buyer a minimum of 24 hours prior to delivering a drum to a 90 day staging site. The subcontractor will provide
KSC Form 26-541, “Hazardous Waste Manifest”, to the Buyer and to the manager of the 90 day staging site, when delivering the waste. 
  
 H. The subcontractor will be responsible to ensure all personnel involved in the management of hazardous or controlled wastes have been properly trained in accordance
with 40 CFR 265.16. A list of all properly trained individuals involved in the performance of this subcontract will be provided to the Buyer prior to the start of any waste generating processes. The Buyer may at any time during the course of the
subcontract performance period require the subcontractor to provide individual training records for any employee involved in the performance of this subcontract, and the contents of the course or courses completed to satisfy the training
requirements. Attendance at KSC Training Course QG-211 “Hazardous Waste Management” will satisfy these training requirements. 
  
 I. The subcontractor shall make all reasonable and safe efforts to contain and control any spills that may occur. Any occurrence of a pollution incident or spill will be
reported immediately (by phone) to the Emergency 911 (861-7911 from a non 867/861 exchange), then to the Buyer. The subcontractor will document the incident or spill on KSC Form 21-555, “Pollution Incident Report” and submit it to the
Buyer within 24 hours of the incident. 
  
 J. The following is a partial list of
hazardous and controlled waste that may occur on a construction project. This list is NOT to be considered all inclusive but merely for example. Hazardous wastes are defined and listed in the detail in the Resource Conservation and Recovery Act of
1976 and are to be determined in accordance with 40 CFR 261. 
  
 EXAMPLES OF CONTROLLED AND HAZARDOUS WASTES: 
  
 1. Discarded products or process wastes exhibiting the following characteristics 

					
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 a. Ignitability; flash point less than or equal to 140 deg F (e.g. paints, alcohols, petroleum naptha) 
  
 b. Corrosivity; pH less than or equal to 2 or greater than or equal to 12.5 (e.g. etching
acids, battery electrolytes, caustic cleaners) 
  
 c. Reactivity; (e.g. cyanide
bearing products, water reactive materials or explosives) 
  
 d. Toxicity;
containing heavy metals, chlorinated solvents, or pesticides above regulatory limits (e.g chromium > 5 ppm, lead > 5 ppm, trichloroethylene > 0.5 ppm) 
  

2. Spent toxic solvents and solvent contaminated materials (e.g. solvent 113, MEK, 1, 1, 1- trichloroethane) 
  
 3. Unused commercial chemical products, or spill residues thereof, listed by the USEPA (e.g
benzene, carbon tetrachloride, trichlorofluoromethane) 
  
 4. Empty aerosol cans

  
 5. Used oils, petroleum products containing dirt or water 
  
 6. Filters, rags and absorbents containing petroleum product residues 
  
 7. Asbestos containing materials 
  
 8. Detergent solutions or process rinse water 
  
 9. Lighting ballasts 
  
 10. Abrasive blast materials containing paint particulates 
  
 11. Wastewater containing ethylene glycol, alcohol, Freon 113, chlorine, etc. 
  
 12. Waste solvents and mixtures, wipes, rags, and applicators used with solvents (alcohol, Freon, MEK, acetone, trichloroethene, etc.)

  
 13. Welding or soldering fluxes 
  
 14. Electrolytes, acids, corrosives, etchants and associated equipment and debris 

					
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 15. Paint strippers 
  
 16. Paint and primer liquids and clean up thinners 
  
 17. Unused/defective catalysts 
  
 18. Uncured or improperly mixed sealants and adhesives 
  
 19. Fluorescent light bulbs 
  
 (End of Clause)

  

	H.7	KSC 52.223-94 HAZARD COMMUNICATION (JUL 2002) 

  
 A. In order to comply with Federal, OSHA, and State Regulations, the subcontractor shall participate in the KSC Chemical Hazard Communication Program as implemented by
KNPD 1800.2, KSC Hazard Communication Program. 
  
 B. The subcontractor shall
coordinate submission of hazardous material safety data, to the NASA/KSC Materials Safety Data Sheet Archive, with the Joint Base Operations Support Contract MSDS Program Administrator. 
  
 (End of Clause) 
  

	H.8	KSC 52.242-90 CONTROLS APPLICABLE TO CONTRACTOR’S ACTIVITIES (AUG 2002) 

  
 The below listed Kennedy Space Center publications and subsequent revisions thereof are applicable to this subcontract and are incorporated
herein by reference. These publications prescribe regulatory procedural criteria, which are applicable to the subcontractor. The subcontractor, upon receipt of notice of noncompliance with any provisions of the below listed publications from the
Contracting Officer or his representatives or Buyer, shall promptly take corrective action. 
  

			
	JHB 2000	  	Consolidated Comprehensive Emergency Management Plan
		
	KHB 1200.1	  	Facilities, Systems, And Equipment Management Handbook
		
	KHB 1610.1	  	KSC Security Handbook
		
	KHB 1710.2	  	Kennedy Space Center Safety Practices Handbook
		
	KMI 1710.18	  	KSC Safety Assurance Policy
		
	KNPD 1800.2	  	Hazard Communication Program

					
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	KMI 1810.1	  	 KSC Occupational Medicine Program
 On-site Contractors
shall comply with Attachment D,
 KSC Skin Cancer Prevention Program

		
	KMI 1860.1	  	KSC Radiation Protection Program
		
	KHB 1870.1	  	KSC Sanitation Handbook
		
	KHB 2570.1	  	KSC Radio Frequency Spectrum Management Handbook
		
	KHB 4000.1	  	Supply Support System Manual, Part 5, Equipment Management
		
	KHB 8800.6	  	KSC Environmental Control Handbook
		
	KHB 8800.7	  	Waste Management Handbook
		
	KMI 8800.8	  	KSC Environmental Management

  
 (End of Clause)

  

	H.9	FLIGHT INSURANCE 

  
 A. The Government recognizes that in order to fulfill certain of its obligations under the Cargo Mission Contract, Lockheed Martin intends to subcontract with the subcontractor for lease of its carrier hardware for
use during ISS assembly missions. The parties agree that the space flight insurance market is volatile and that the subcontractor will be desirous of protecting its carrier hardware from total loss through insurance. 
  
 B. In order for any space flight insurance costs incurred by the subcontractor to be
allowable as part of the subcontract price under the Cargo Mission Contract, the subcontractor will provide a copy of its insurance policy for Government review and will include a statement, executed by a corporate official of the subcontractor with
binding contractual authority, of all insurance coverage applicable to the flight asset hardware to be flown on contracted missions. The NASA Contracting Officer’s written approval is a condition precedent to the allowability of the
subcontractor’s space flight insurance costs as part of the subcontract price under the Cargo Mission Contract or any other Government contract. The insurance policy shall contain the information as required below: 
  
 Identification of the subcontractor’s insurance broker along with the name and phone
number of an authorized representative that is available for discussion regarding any aspect of the submission. 
  
 The name of the insurance company and broker contacted together with the phone number of a point of contact. 
  
 The date of the contacts. 
  
 The amount of insurance discussed, the point of contact for those discussions and the items to which all insurance was to relate. 

					
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 The quoted cost and amount of insurance being offered, if any, and a full description of the policies being offered
as described below. 
  
 A description of the types of insurance provided
(including the extent to which the subcontractor is self-insured or intends to self-insure), with emphasis on identifying the risks insured against and the coverage extended to persons and property; 
  
 Dollar limits per occurrence and annually, as well as any other limits, for relevant segments
of the total insurance coverage; 
  
 Deductibles, if any, applicable to losses
under the policies; 
  
 Any exclusions from coverage under such policies for
unusually hazardous or nuclear risks; and 
  
 The controlling or limiting factors
for determining the amount of financial protection the subcontractor is to provide and maintain, with information regarding the availability, cost, and terms of additional insurance or other forms of financial protection. 
  
 C. In the event the subcontractor is able to obtain space flight insurance, allowability of
the cost as part of the subcontract price under the Cargo Mission Contract is subject to the written approval of the NASA Contracting Officer. In no event may the allowable cost for such insurance exceed eight percent (8%) of the carrier hardware
replacement costs listed in Table 1 “Carrier Hardware Replacement Cost” below. This limitation will only be in effect for contracted mission launches through December 31, 2006. Should one or more of the subcontractor’s missions be
delayed beyond this date, Lockheed Martin will propose a new limitation for allowable insurance costs for consideration by the Government. 
  
 The subcontractor agrees to a waiver of liability pursuant to which the subcontractor waives all claims against NASA, Lockheed Martin and its other Cargo Mission Contract
subcontractors, and other NASA prime contractors and subcontractors based on loss or damage to SPACEHAB hardware arising out of Shuttle or International Space Station activities on Earth, in outer space, or in transit between Earth and outer space
performed in furtherance of the Cargo Mission Contract whatever the legal basis for such claims, including, but not limited to, delict and tort. 
  
 D. TABLE 1 Carrier Hardware Replacement Cost 
  

				
	 Carrier Hardware

	  	Replacement Cost

	ICC-G	  	$	1,000,000.00
	KYA	  	$	2,000,000.00
	SHOSS Box	  	$	561,456.00
	PFAP	  	$	674,445.00
	 LSM
	  	$	43,896,873.00
	 Tunnel
	  	$	1,375,000.00

  
 (End of Clause)

					
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	H.10 	Reserved 

  

	H.11 	Reserved 

  

	H.12 	Reserved 

  

	H.13 	Reserved 

  

	H.14 	DATA RIGHTS NOTICE 

  
 A. Any proposal submitted during the course of subcontract performance must expressly identify any computer software or technical data that is to be provided with less than unlimited data rights. The subcontractor
shall notify the Buyer in writing prior to incorporating any item, component, subcomponent, process, or software, wherein the related technical data or computer software qualifies as limited rights data or restricted computer software in accordance
with Alternate II and III of FAR 52.227-14 and NFS 1852.227-86. This notification does not apply to commercial off-the-shelf (shrink-wrapped) computer software, and corresponding documentation, that has a standard commercial license unless the
software is to be incorporated as a subcomponent in a developmental effort. 
  
 B.
Technical data and computer software delivered shall not be marked with restrictive legends unless the Buyer has given prior written consent. 
  
 C. All license agreements shall be compliant with Federal laws, regulations and the terms and conditions of this subcontract and shall be transferable to the government
upon completion of the subcontract without additional cost to the Government. One copy of the final negotiated license agreement shall be forwarded to Buyer within 20 days of agreement to ensure compliance. 
  
 (End of Clause) 
  

	H.15 	RESTRICTED RIGHTS NOTICE 

  
 A. Alternate III of FAR 52.227-14, Rights in Data – General. 

					
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 1. Paragraph (b)(1) of Alternate III of FAR 52.227-14, Rights in Data – General, is hereby
deleted and the following paragraph (b)(1) is substituted in lieu thereof: 
  
 (b)(1) Used or copied for use in or with multiple computers provided they are not used simultaneously, including use at any government installation to which such computers may be transferred. 
  
 2. The following is added as paragraph (b)(7) of Alternate III of FAR
52.227-14: 
  
 (b)(7) Used on multiple computers for network
applications. 
  
 B. NASA FAR Supplement (NFS) 1852.227-86, Commercial Computer
Software –Licensing. 
  
 1. Paragraph (d)(2)(i) of NFS
1852.227-86, is hereby deleted and the following paragraph (d)(2)(i) is substituted in lieu thereof: 
  
 (d)(2)(i) Used or copied for use in or with multiple computers provided they are not used simultaneously, including use at any government installation to
which such computers may be transferred. 
  
 2. The following is
added as paragraph (d)(2)(v) of NFS 1852.227-86: 
  
 (d)(2)(v)
Used on multiple computers for network applications. 
  
 (End of
Clause) 
  

	H.16 	LIMITED RIGHTS DATA NOTICE 

  
 A. Notwithstanding any other terms and conditions of this subcontract, the Government shall have the right to disclose technical data marked as limited rights data
outside of the Government, without obtaining permission from the subcontractor, under the following circumstances: 
  
 1. Use (except for manufacture) by support service contractors. 
  

2. Evaluation by non-government evaluators. 

					
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 3. Use (except for manufacture) by other contractors participating in the Government’s program
of which the specific contract is a part, for information and use in connection with the work performed under each contract. 
  
 4. Emergency repair or overhaul work. 
  
 5. Release to a foreign government, or instrumentality thereof, as the interests of the United States Government may require, for information or
evaluation, or emergency repair or overhaul work by such government. 
  
 B. Prior
to disclosure, except in emergency circumstances as identified in paragraphs 4 and 5 above, the Government shall require the recipient to sign an agreement, provided by and acceptable to the subcontractor, to protect the data from unauthorized use
and disclosure. The subcontractor shall provide a copy of the acceptable nondisclosure agreement to the Buyer upon request. 
  
 (End of Clause) 
  

	H.17 	MANAGEMENT AND PROTECTION OF DATA OF THIRD PARTIES 

  
 A. It is possible that the subcontractor may have access to, be furnished, or use, the following types of data (recorded information) in performance of this subcontract:

  
 1. Data of third parties bearing limited rights or restricted
rights notices submitted either to NASA or directly to the Buyer or subcontractor: or 
  
 2. Other data of third parties, which NASA has agreed to handle under protective arrangements; 
  
 B. In order to protect the interests of the government and the interests of other owners of such data, the subcontractor agrees with respect to data in category 1 above,
and with respect to any data in category 2 when so identified by NASA or Buyer, to: 
  
 1. Use and disclose such data only to the extent necessary to perform the work required under this subcontract, with particular emphasis on restricting the data to employees having a “need to know”;

  
 2. Preclude disclosure of such data outside
subcontractor’s organization performing work under this subcontract without written consent of the Buyer. The subcontractor’s organization includes support contractors to 

					
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the extent they are subject to the same requirements regarding protection of 3rd party data; and 
  
 3. Return or dispose of such data as directed by the Buyer or the furnishing third party owner when such data is no longer needed for subcontract
performance. 
  
 (End of Clause) 
  

	H.18 	SPECIAL COMPUTER SOFTWARE PROVISION 

  
 A. In addition to any restricted or unrestricted computer software specified elsewhere to be delivered under this subcontract, the subcontractor, upon request of the
Buyer, shall deliver to the Government any computer software, including its documentation and available source code, which was created in performance of this subcontract. 
  
 B. The restricted and unrestricted rights in computer software acquired or created during the performance of this subcontract shall remain
in the custody of the subcontractor until such time as the Buyer calls for the delivery thereof under paragraph A. 
  
 (End of Clause) 
  

	H.19 	ASSOCIATE CONTRACTOR AGREEMENT FOR ISS OPERATIONS AND UTILIZATION ACTIVITIES 

  
 A. The success of the International Space Station (ISS) Program is dependent on the efforts of multiple contractors. The Cargo Mission
contractor is a key participant. 
  
 B. In order to achieve efficient and
effective implementation of the operation and utilization phase of the ISS, the Buyer shall establish the means for coordination and exchange of information with associate contractors. The subcontractor agrees to provide reasonable support to Buyer
to implement the stated objectives. 
  
 (End of Clause) 

 

	H.20 	INFORMATION INCIDENTAL TO CONTRACT ADMINISTRATION 

  
 A. With the exception of financial information, the Government shall have unlimited rights to use and distribute to third parties any administrative or 

					
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management information developed by the subcontractor or a subcontractor at any tier in whole or in part for the performance of the subcontract or first
produced in the performance of the subcontract, whether or not said information is specified as a subcontract deliverable, if created in whole or in part at Government expense. The Contracting Officer may, at any time during the subcontract
performance or within a period 3 years after Government acceptance of all items to be delivered under this subcontract, order any administrative or management information developed by the subcontractor or a subcontractor at any tier in whole or in
part for the performance of the subcontract or first produced in the performance of the subcontract. 
  
 B. The Contracting Officer may release the subcontractor from the requirements of this clause for specifically identified information at any time during the 3-year period set forth in paragraph A of this clause.

  
 (End of Clause) 
  

	H.21 	Reserved 

  
 (End of Clause) 
  

	H.22 	Reserved 

  
 (End of Clause) 
  

	H.23 	GOVERNMENT-PROVIDED RUSSIAN LANGUAGE AND LOGISTICS SERVICES (RLLS) 

  
 The subcontractor is authorized use of the following RLLS in performance of this subcontract or any subcontract entered into under this subcontract: 
  

	 	1.	Russian Translations 

  

	 	2.	Russian Interpretations 

  

	 	3.	Russian Language training 

  

	 	4.	Russian Logistics services (both in the U.S. and in Russia), including a) Ground Services (e.g. airport pickup/drop-off, transportation between hotels and meeting locations); b)
Meeting Services (e.g. coordination of schedules, agendas, and protocols); c) Hotel Reservations at the Penta Hotel in Russia; and d) Visa Coordination. 

  
 The subcontractor upon identification of a need for RLLS shall promptly notify the Buyer. The Buyer shall provide instructions as to the
point of contact for 

					
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submitting a request for RLLS. Failure of the Government to provide adequate or timely RLLS shall entitle the subcontractor to an equitable adjustment in all
affected contract terms and conditions, exclusive of any adjustment to fee. This provision, including this flow-down requirement, shall be inserted in all subcontracts where it is anticipated that RLLS may be necessary for contract performance.

  
 (End of Clause) 
  

	H.24 	Reserved 

  
 (End of Clause) 
  

	H.25 	Reserved 

  
 (End of Clause) 
  

	H.26 	ADDITIONAL EXPORT CONTROL REQUIREMENTS 

  
 In addition to the requirements established by NFS 1852.225-70 EXPORT LICENSES, the subcontractor is also required to perform the following tasks to ensure compliance
with Department of Commerce and Department of State export control regulations. 
  

	1.	Provide to the Johnson Space Center (JSC) Export Services Team (EST), in writing, an advanced “notification to ship” for all program related exports (hardware, software
and technical data) where NASA is considered the “U.S. Principal Party”. The following requirements shall be met by the subcontractor and its subcontractors, respectively, to use Department of Commerce or Department of State export
licenses obtained by NASA and to use any NASA export license exceptions or exemptions as they apply to the International Space Station Program. 

  

For all program related exports (hardware, software and technical data), submit the equivalent information described below to the Center Export
Administrator (CEA) at the geographically closest NASA Space Flight Center (JSC, Marshall Space Flight Center (MSFC) or Kennedy Space Center (KSC)) according to the policies and procedures of that center. A courtesy copy of equivalent information
submitted to MSFC or KSC shall be provided to the JSC CEA’s office. Provide copies of shipping documents for shipments made under a NASA Export License, exemption or exception to the appropriate CEA within two weeks after the shipment.

					
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	 	a.	A minimum of 15 working days prior to export, the subcontractor or its subcontractors who are exporting on behalf of NASA must obtain approval from the CEA’s office by
following an Advance Notification of Shipment (ANS) process. 

  

	 	b.	Before effecting an export on behalf of NASA, the subcontractor and its subcontractors shall determine the classification recommendation of the item(s) or document(s) and whether it
needs a license. The subcontractor or its subcontractors shall provide a more technical rationale supporting the classification, if requested by NASA. 

  

	 	c.	Formal letter, fax or email is sufficient, addressed to the CEA’s office, and must include the details listed below. 

  

	 	(1)	NASA license number (include date of expiration) or license exception or other exception. 

  

	 	(2)	Quantity and description as it appears on the applicable license. 

  

	 	(3)	Date of planned export (and expected date of return if not a permanent export). 

  

	 	(4)	Origin of export (Company and city). 

  

	 	(5)	Destination of export (Country, city and company). 

  

	 	(6)	Point of contact (for technical questions – must be a representative of the originating exporter). 

  

	 	(7)	Export Classification Control Number (ECCN) or category under Export Administration Regulations or United States Munitions List regulations. 

  

	 	(8)	Rationale for classification. 

  

	 	(9)	Requirement to export (i.e., MOU, contract number, meeting minutes). You may be asked to provide copy of the requirement. 

  

	 	(10)	Additional information as necessary to clarify the export. 

  

	 	d.	A copy of the completed Pro Forma Invoice (JSC Form 1735) attached to an email is sufficient to meet this requirement as long as all required information above is also included.

  

	 	e.	After all the information is submitted, the CEA’s office will respond to the subcontractor or its subcontractor within ten (10) working days. Once approved, NASA will provide
the destination control statement to use on all export documentation. 

  

	2.	Included in the applicable export exceptions, the subcontractor or its subcontractors are authorized to export hardware, software or data to ISS International Partner (IP)
governmental offices that meet the conditions of license exception GOV (15 CFR 740.11 (b)(2)(iii)(A)). 

  

	3.	For Verification of End Use, subcontractor or its subcontractors exporting on behalf of NASA using a license or license exception or exemption shall provide a copy of all shipping
documentation within two business weeks of the shipment date to the CEA’s office. 

					
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	4.	For temporary exports, subcontractor or its subcontractors shipping on behalf of NASA shall notify the CEA in writing within five 5. business days of the date that the item was
actually returned. 

  

	5.	The subcontractor or its subcontractors shall keep those records required by Department of Commerce and Department of State regulations for all exports and make them available upon
request to NASA and its representatives. 

  

	6.	These requirements do not apply to subcontractor or its subcontractors’ commercial contract related exports or exports pursuant to Technical Assistance Agreements or other
license authorizations received by the subcontractor or its subcontractors and for which the subcontractor or its subcontractors will be the exporter of record. 

  

	7.	The subcontractor and its subcontractors shall perform self annual audits of their export control processes and provide written audit results to the CEA in accordance with DRD
C-II-02. 

  

	8.	The subcontractor and its subcontractors shall report to the NASA JSC EST, in writing, any potential export issues (including those related to support of sustaining engineering and
operations of ISS) that cannot be resolved by the subcontractor or its subcontractors, respectively. Such report and/or notification of issues and technical tasks should be reported to the NASA JSC EST at least three (3) months in advance of
requested action. 

  

	9.	Upon discovery of unforeseen adverse export issues, the subcontractor shall immediately notify NASA JSC EST by telephone or e-mail of said issue and shall report to the NASA JSC
EST, in writing, as the facts become known. 

  

	10.	When directed in writing by the Contracting Officer or designated representative, the subcontractor shall export on behalf of NASA, NASA specifically identified technical data,
computer software, hardware, or defense services to a named foreign entity or person, in the manner and under the conditions for in the direction. 

  

(End of Clause) 
  

	H.27    SUBCONTRACTING	WITH RUSSIAN ENTITIES FOR GOODS OR SERVICES 

  

	(a)	The subcontractor shall not subcontract with 

  

	 	(1)	the Russian Aviation and Space Agency (Rosaviakosmos), 

  

	 	(2)	any organization or entity under the jurisdiction or control of Rosaviakosmos, or 

  

	 	(3)	any other organization, entity, or element of the Government of the Russian Federation. 

					
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 (b) “Organization or entity under the jurisdiction or control of Rosaviakosmos” means an organization or
entity that 
  

	 	(1)	was made part of the Russian Space Agency upon its establishment on February 25, 1992; 

  

	 	(2)	was transferred to the Russian Space Agency by decree of the Russian Government on July 25, 1994, or May 12, 1998; 

  

	 	(3)	was or is transferred to the Russian Aviation and Space Agency or Russian Space Agency by decree of the Russian Government at any other time before, on, or after March 14, 2000; or

  

	 	(4)	is a joint stock company in which the Russian Aviation and Space Agency or Russian Space Agency has at any time held controlling interest. 

  
 (c) The subcontractor shall obtain Buyer’s permission to subcontract with any Russian
entity or with any other entity performing any part of the subcontract in the Russian Federation. The subcontractor shall support such a request with facts (and, if requested, supporting documentation) sufficient to establish to Buyer’s
satisfaction that the entity with which the subcontractor seeks permission to subcontract is not an entity described in paragraphs (a) and (b). 
  
 (d) Buyer may direct the subcontractor to provide the information required under paragraph (c) for any other prospective or existing subcontract at any tier. Buyer may
direct the subcontractor to terminate for the convenience of the government any subcontract at any tier with an entity described in paragraphs (a) and (b), subject to an equitable adjustment. 
  
 (e) The subcontractor shall include the substance of this clause in all its subcontracts, and
shall require such inclusion in all other subcontracts of any tier. 
  
 (End of Clause) 
  

	H.28    FLEXIBILITY	IN OPERATIONS 

  
 This clause, Flexibility In Operations, sets forth the procedures for making equitable adjustments in the subcontract in the event of certain specified changes in requirements. This clause is established to define the
conditions under which an equitable adjustment may be allowable. This clause sets out the exclusive basis for determining equitable adjustments arising from or associated with launch date or manifest changes involving the SPACEHAB carrier hardware.
Nothing herein shall be construed as creating a contractual relationship between the Government and SPACEHAB. 

					
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 An equitable adjustment (either an increase or decrease) will be made in the price provided for in this subcontract,
under the following conditions related to SPACEHAB carriers: 
  

	 	a.	The addition or deletion of an Integrated Cargo Carrier (ICC) or Logistics Single Module (LSM) carrier; or 

  

	 	b.	A change is instituted within the specified schedule range as defined in Table 1 SPACEHAB Carrier Decision Point; or 

  

	 	c.	For I&O services, if the cumulative launch date changes (based on a per mission basis) for 12A.1 or 13A.1 sixty-one (61) calendar days or more from the current working launch
dates established as of 8 December 2004 or from the working launch dates established at the time the flight enters the L-14 month template, whichever is later. Changes thereafter will be in accordance with the contract baseline, or as directed by
the NASA ISS Program Manager and communicated to the subcontractor by Buyer. For consecutive missions, the launch delay(s) change allows SPACEHAB at least 45 working days to process the hardware in the SPACEHAB Integration facility between missions
or an adjustment may be required. 

  

	 	d.	For Flight Asset services, if the 13A.1 launch date slips greater than zero (0) calendar days from the current working launch dates established as of 8 December 2004. Changes
thereafter will be in accordance with the subcontract baseline, or as directed by the NASA ISS Program Manager and communicated to the subcontractor by Buyer. No Flight Asset services will be paid for launch date slips of ULF1.1 or 12A.1 unless the
assembly sequence changes such that the last flight of a ICC or LSM asset required past the current 13A.1 flight. 

  
 In the case of any equitable adjustment under paragraph c above, there shall be no adjustments for the first sixty (60) calendar days. 
  
 In the case of any equitable adjustment, the subcontractor shall provide credit for all work
previously done that can be applied to the change that has initiated the equitable adjustment, (e.g., the reuse of analytical work done when a manifested item moves from one flight to another, sub-system training plans, past experience (learning
curve)) 
  

	A.	SPACEHAB CARRIERS – DECISION POINTS 

  
 There are schedule times when decisions can be made resulting in changes to the flight schedules and the detailed manifest. If changes are made within the schedule range
specified below, the subcontractor shall accommodate the 

					
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changes with no entitlement to an equitable adjustment. These schedule times are identified as decision points. These SPACEHAB Carriers decision points are
shown in the following table: 
  
 TABLE 1 - SPACEHAB CARRIER
DECISION POINTS 
  

			
	 Change Category

	  	 Schedule Range
 Critical Decision
Point up to which the
subcontractor shall
accommodate changes

	 Flight Schedule
 - Launch Date
	  	L-15 months or earlier
	 Cargo manifest changes with no new Flight Support Equipment development required:
 - ICC manifest changes impacting integration products
 - LSM manifest changes impacting integration products
 - LSM manifest changes w/o impacts to integration products or KSC processing requirements Cargo manifest changes with new Flight Support Equipment development
required:
 - ICC
 - LSM
	  	  
 L-12 months
L-12 months Anytime
L-12 months or earlier
L-12 months or earlier

  

	B.	SPACEHAB CARRIERS – I&O EQUITABLE ADJUSTMENT 

  
 If a launch date change occurs within the L-14 range, Table 2 – “Launch Delay Decision Points” defines the monthly delay Not-to-Exceed price for
Integration and Operations (I&O) for each carrier. For the purpose of establishing an equitable adjustment to the prices of the subcontract as a result of a launch delay, the SPACEHAB Subcontract price will be revised in accordance with the NTE
prices in Table 2. Should a carrier launch be delayed more than one time within the L-14 range, the monthly delay Not-to-Exceed price is not intended to be additive for each of the decision point ranges. 
  
 TABLE 2 – LAUNCH DELAY DECISION POINTS 
  

			
	 LSM I&O
Launch Delay Decision Point

	  	Monthly EA NTE
Price ($)

	 Prior to L-14
	  	—  
	 L-14 thru L-13
	  	198,873

					
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	 L-12 thru L-10
	  	266,117
	 L-9 thru L-7
	  	314,610
	 L-6 thru L-4
	  	418,415
	 L-3 thru Launch
	  	728,707
		
	 ICC I&O
Launch Delay Decision Point

	  	Monthly EA NTE
Price ($)

	 Prior to L-14
	  	—  
	 L-14 thru L-13
	  	88,913
	 L-12 thru L-9
	  	132,552
	 L-8 thru L-5
	  	148,313
	 L-4 thru Launch
	  	217,122
		
	 SHOSS I&O
Launch Delay Decision Point

	  	Monthly EA NTE
Price ($)

	 Prior to L-14
	  	—  
	 L-14 thru L-13
	  	10,023
	 L-12 thru L-9
	  	14,960
	 L-8 thru L-5
	  	18,614
	 L-4 thru Launch
	  	22,338

  

	C.	SPACEHAB CARRIERS – FLIGHT ASSET EQUITABLE ADJUSTMENT 

  
 For Flight Asset services, if the 13A.1 launch date slips greater than zero (0) calendar days from the baseline launch date, Table 3 – “Flight Asset Services
Price” defines the not-to-exceed Flight Asset Services price for each carrier. For the purpose of establishing an equitable adjustment to the prices of the subcontract as a result of a launch delay, the SPACEHAB Subcontract price will be
revised in accordance with the NTE prices in Table 3. 
  
 TABLE
3 – FLIGHT ASSET SERVICES PRICE 
  

				
	 Carrier

	  	NTE Monthly
Flight Asset
Services Price

	 LSM
	  	$	893,000/mo
	 ICC
	  	$	300,000/mo

  

	D.	SPACEHAB CARRIERS – ADMINISTRATION OF CLAUSE 

  
 The subcontractor is responsible for: keeping current, complete, and accurate records that track the performance of work in each area which is subject to variations in
decision points; making such records available to the Government as may be requested from time to time; and submitting an adjustment proposal if the conditions above are met, or if requested by Buyer. 

					
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 When initiated by the subcontractor, the subcontractor’s proposal for an equitable adjustment shall be submitted
within 50 calendar days of the assessment that conditions above have been met. If requested by Buyer, the proposal for an equitable adjustment shall be submitted within 20 calendar days of the request. 
  
 The adjustment provisions of this clause shall not be construed as a limitation of
Buyer’s rights under the Termination clause of this subcontract. In addition, this clause is fully subject to the Limitation of Funds clause of this subcontract and shall not be construed as authorization to perform work beyond what can be
accomplished in accordance with the Limitation of Funds. 
  
 (End
of Clause) 
  
 [END OF SECTION] 

					
	Purchase Order No. GF80726B11	  	 
	SECTION I	  	COMMERCIAL CARRIER SERVICES	  	I-1

  
 SECTION I

  
 CONTRACT CLAUSES 
  

	I.1	CLAUSES INCORPORATED BY REFERENCE 

  
 This subcontract incorporates the following Lockheed Martin standard terms and conditions by reference, with the same force and effect as if they were
given in full text. 
  
 CORPDOC 2 (10/03) 
 CORPDOC 2B (10/03) 
 SUPPLEMENT – C
(11/02) 
  
 (End of Clause) 
  

	I.2	MODIFICATION OF INCORPORATED TERMS AND CONDITIONS 

  
 Refer to CORPDOC 2 and make the following changes: 
  
 Paragraph 5 – add the following: “ISS, CMC and Seller interfaces are defined in the Data Interface and Requirements Transfer Document (DIRT).” 

 
 Paragraph 7 (a) – change the cure period to thirty (30) days. 
  
 Paragraph 7 (b) – change the word “portion” in the last line of the second
sentence to “deliverables.” 
  
 Paragraph 18 (a) – add the
following: “The parties agree to negotiate in good faith to establish a supplemental agreement to define the scope of inspections.” 
  
 Paragraph 20 (b) – delete in its entirety. 
  
 Paragraph 32 (a) (i) – add the following: “provided that the part(s) terminated were terminated by the Government in Buyer’s prime contract.”

					
	Purchase Order No. GF80726B11	  	 
	SECTION I	  	COMMERCIAL CARRIER SERVICES	  	I-2

  

 Refer to Section II Paragraph F of CORPDOC 2 and add the following FAR Flowdown clauses: 
  

			
	 52.227-16
	 	Additional Data Requirements (JUN 1987)
	 52.245-19
	 	Government Property Furnished “As Is” (APR 1984)
	 52.227-23
	 	Rights to Proposal Data (Technical) (JUN 1987)

  
 Refer to CORPDOC 2B and make the
following changes: 
  
 F 1 (a) – change FAR 52.227-14 to 52.227-14 Alt II

  
 F 1 (b) – add FAR 52.227-11 as this subparagraph 
  
 G 1 – delete 1852.242-73 
  
 G 4 – delete the following NFS Clauses: 
  
 1852.227-70 
  
 1852.227-71 
  
 1852.231-71 
  
 1852.237-71 
  
 1852.242-71 
  
 Refer to Paragraph G of CORPDOC 2B and add the following NASA FAR Supplement Flowdown clauses: 
  
 1852.204-76 Security Requirements for Unclassified Information Technology Resources (July 2002) 
  
 1852.242-78 Emergency Medical Services and Evacuation (April 2001)

  
 Refer to SUPPLEMENT – C and make the following changes: 
  
 Paragraph 6 – add the following: “...except as required by law.” 

					
	Purchase Order No. GF80726B11	  	 
	SECTION I	  	COMMERCIAL CARRIER SERVICES	  	I-3

  

 Paragraph 8 – delete in its entirety. 
  
 Paragraph 10 (a) – change the terms of payment time period to net forty-five (45) days for invoices for January, May, August, November
and December for any year (these invoices are to be submitted on or about the last day of the month). The terms of payment time period for all other invoices during any year shall be net thirty (30) days. 
  
 (End of Clause) 
  
 [END OF SECTION]

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