Document:

xedarsb2ex1014_8212007.htm

     

    
      

      

    

    
Exhibit
      10.14  

     

    
      TIPSS-3

      Federal
        Statement of Work

      Agreement
        #4902FP0169

      SOW#
        4905FP0783

 

    This
      Statement of Work ("SOW") # 4905FP0783 adopts and incorporates by reference
      the
      terms and conditions of Master Solutions Engagement Agreement # 4902FP0169
      (“Base Agreement”) between  IBM (“Buyer”) and FuGEN, Inc.
      (“Supplier”).  This SOW is effective beginning on 10/28/2005 and
      will remain in effect until 10/27/2006 unless extended in
      writing.  Transactions performed under this SOW will be conducted in
      accordance with and be subject to the terms and conditions of this SOW, the
      Base
      Agreement and any applicable Purchase Orders (“POs”) or Work Authorizations
      (“WAs”).  For purposes of this SOW, the terms “PO” and “WA” are used
      interchangeably.  This SOW is not a PO or WA.

    

    The
      Certifications and Representations which Supplier executed on 08/08/2005 are
      incorporated into this SOW by reference. In addition, future Certifications
      and
      Representations executed by Supplier during the term of this SOW under the
      provisions of Buyer’s Annual Certifications and Representations program are
      automatically incorporated into the SOW.

    

    This
      SOW
      is issued in support of Buyer’s contract No. TIRNO-06-D-0019  with the
      Department of the Treasury (“Customer”) entitled Total Information Processing
      Support Services-3 (“TIPSS-3”).

    

    
      	
              1.0

            	
              Scope
                Of Work Summary

            

    

    The
      periods of performance for specific tasks hereunder will be defined for each
      of
      the efforts as described in the POs or WAs issued to Supplier, referencing
      the
      Base Agreement and SOW.  The TIPSS-3 option periods, which may be
      exercised unilaterally by  Buyer, are included
      below.
 

    
      
        	
                Base
                  Period

              	
                10/28/05
                  – 10/27/06

              
	
                Option
                  Period 1

              	
                10/28/06
                  – 10/27/07

              
	
                Option
                  Period 2

              	
                10/28/07
                  – 10/27/08

              
	
                Option
                  Period 3

              	
                10/28/08
                  – 10/27/09

              
	
                Option
                  Period 4

              	
                10/28/09
                  – 10/27/10

              

      

    

     

     

    
      	
              2.0

            	
              Definitions

            

    

    Except
      as
      listed below in this section 2.0, the definitions listed in Base Agreement
      4902FP0169 shall apply to this SOW.

    

    
      	
              3.0

            	
              Pricing

            

    

    

    

    LABOR
      CATEGORIES

    

    
      	
              LABOR
                CATEGORIES

               

            	
              Fugen
                Base Year

               

            	
              Option
                Year 01

               

            	
              Option
                Year 02

               

            	
              Option
                Year 03

               

            	
              Option
                Year 04

               

            
	
              Task/Project
                Managers

            	
              $135.00

            	
              $139.05

            	
              $143.22

            	
              $147.52

            	
              $151.94

            
	
              Subject
                Matter Experts

            	
              $101.00

            	
              $104.03

            	
              $107.15

            	
              $110.37

            	
              $113.68

            
	
              Senior
                IT Specialists

            	
              $95.00

            	
              $97.85

            	
              $100.79

            	
              $103.81

            	
              $106.92

            
	
              IT
                Specialists

            	
              $78.00

            	
              $80.34

            	
              $82.75

            	
              $85.23

            	
              $87.79

            
	
              Junior
                IT Specialists

            	
              No
                Bid

            	
              No
                Bid

            	
              No
                Bid

            	
              No
                Bid

            	
              No
                Bid

            
	
              Senior
                IT Technicians

            	
              $65.00

            	
              $66.95

            	
              $68.96

            	
              $71.03

            	
              $73.16

            
	
              IT
                Technicians

            	
              $50.00

            	
              $51.50

            	
              $53.05

            	
              $54.64

            	
              $56.28

            
	
              Junior
                IT Technicians

            	
              No
                Bid

            	
              No
                Bid

            	
              No
                Bid

            	
              No
                Bid

            	
              No
                Bid

            
	
              Senior
                IT Administrative Specialists

            	
              $56.03

            	
              $57.71

            	
              $59.44

            	
              $61.23

            	
              $63.06

            
	
              IT
                Administrative Specialists

            	
              $35.41

            	
              $36.47

            	
              $37.57

            	
              $38.69

            	
              $39.85

            
	
              Senior
                Security Specialists

            	
              $95.00

            	
              $97.85

            	
              $100.79

            	
              $103.81

            	
              $106.92

            
	
              Security
                Specialists

            	
              $78.00

            	
              $80.34

            	
              $82.75

            	
              $85.23

            	
              $87.79

            
	
              Junior
                Security Specialists

            	
              $60.00

            	
              $61.80

            	
              $63.65

            	
              $65.56

            	
              $67.53

            
	
              Security
                Technicians

            	
              $65.00

            	
              $66.95

            	
              $68.96

            	
              $71.03

            	
              $73.16

            

    

     

     

    
      
        Form
          Release: 05/01 - Revision: 4/04

        
        

      

      
        --
          1
          --

        
          

        

      

      
        
        

        TIPSS-3
          Federal Statement of Work

      

    

    
 

    
      	
              Senior
                IT Training Specialists

            	
              $78.00

            	
              $80.34

            	
              $82.75

            	
              $85.23

            	
              $87.79

            
	
              IT
                Training Specialists

            	
              $67.00

            	
              $69.01

            	
              $71.08

            	
              $73.21

            	
              $75.41

            
	
              JR
                IT Training Specialists

            	
              $50.00

            	
              $51.50

            	
              $53.05

            	
              $54.64

            	
              $56.28

            
	
              Senior
                Applications Engineer

            	
              $81.88

            	
              $84.34

            	
              $86.87

            	
              $89.47

            	
              $92.16

            
	
              Applications
                Engineer

            	
              $67.84

            	
              $69.88

            	
              $71.97

            	
              $74.13

            	
              $76.35

            
	
              Junior
                Applications Engineer

            	
              $53.76

            	
              $55.37

            	
              $57.03

            	
              $58.75

            	
              $60.51

            
	
              Senior
                Applications Programmer

            	
              No
                Bid

            	
              No
                Bid

            	
              No
                Bid

            	
              No
                Bid

            	
              No
                Bid

            
	
              Applications
                Programmer

            	
              $63.69

            	
              $65.60

            	
              $67.57

            	
              $69.60

            	
              $71.68

            
	
              Junior
                Applications Programmer

            	
              $54.25

            	
              $55.88

            	
              $57.55

            	
              $59.28

            	
              $61.06

            
	
              Senior
                Applications Systems Analyst

            	
              $95.00

            	
              $97.85

            	
              $100.79

            	
              $103.81

            	
              $106.92

            
	
              Applications
                Systems Analyst

            	
              $78.00

            	
              $80.34

            	
              $82.75

            	
              $85.23

            	
              $87.79

            
	
              Junior
                Applications Systems Analyst

            	
              $60.00

            	
              $61.80

            	
              $63.65

            	
              $65.56

            	
              $67.53

            
	
              Senior
                Business Process Reengineering Specialist

            	
              No
                Bid

            	
              No
                Bid

            	
              No
                Bid

            	
              No
                Bid

            	
              No
                Bid

            
	
              Business
                Process Reengineering Specialist

            	
              $72.36

            	
              $74.53

            	
              $76.77

            	
              $79.07

            	
              $81.45

            
	
              Junior
                Business Process Reengineering Specialist

            	
              $61.64

            	
              $63.49

            	
              $65.40

            	
              $67.36

            	
              $69.38

            
	
              Senior
                Data Architect

            	
              No
                Bid

            	
              No
                Bid

            	
              No
                Bid

            	
              No
                Bid

            	
              No
                Bid

            
	
              Data
                Architect

            	
              $70.06

            	
              $72.17

            	
              $74.33

            	
              $76.56

            	
              $78.86

            
	
              Junior
                Data Architect

            	
              $59.68

            	
              $61.47

            	
              $63.32

            	
              $65.22

            	
              $67.17

            
	
              Senior
                Data Security Specialist

            	
              No
                Bid

            	
              No
                Bid

            	
              No
                Bid

            	
              No
                Bid

            	
              No
                Bid

            
	
              Data
                Security Specialist

            	
              $70.45

            	
              $72.57

            	
              $74.74

            	
              $76.99

            	
              $79.30

            
	
              Junior
                Data Security Specialist

            	
              $60.02

            	
              $61.82

            	
              $63.67

            	
              $65.58

            	
              $67.55

            
	
              Senior
                Database Analyst/Programmer

            	
              $85.00

            	
              $87.55

            	
              $90.18

            	
              $92.88

            	
              $95.67

            
	
              Database
                Analyst/Programmer

            	
              $70.00

            	
              $72.10

            	
              $74.26

            	
              $76.49

            	
              $78.79

            
	
              Junior
                Database Analyst/Programmer

            	
              $53.76

            	
              $55.37

            	
              $57.03

            	
              $58.75

            	
              $60.51

            
	
              Senior
                Disaster Recovery Specialist

            	
              $95.00

            	
              $97.85

            	
              $100.79

            	
              $103.81

            	
              $106.92

            
	
              Disaster
                Recovery Specialist

            	
              $78.00

            	
              $80.34

            	
              $82.75

            	
              $85.23

            	
              $87.79

            
	
              Junior
                Disaster Recovery Specialist

            	
              $60.78

            	
              $62.60

            	
              $64.48

            	
              $66.42

            	
              $68.41

            
	
              Senior
                Information Engineer

            	
              $85.00

            	
              $87.55

            	
              $90.18

            	
              $92.88

            	
              $95.67

            
	
              Information
                Engineer

            	
              $70.00

            	
              $72.10

            	
              $74.26

            	
              $76.49

            	
              $78.79

            
	
              Junior
                Information Engineer

            	
              $53.76

            	
              $55.37

            	
              $57.03

            	
              $58.75

            	
              $60.51

            
	
              Senior
                Network Engineer

            	
              $85.00

            	
              $87.55

            	
              $90.18

            	
              $92.88

            	
              $95.67

            
	
              Network
                Engineer

            	
              $70.00

            	
              $72.10

            	
              $74.26

            	
              $76.49

            	
              $78.79

            
	
              Junior
                Network Engineer

            	
              $53.76

            	
              $55.37

            	
              $57.03

            	
              $58.75

            	
              $60.51

            
	
              Senior
                Software Developer/Programmer

            	
              No
                Bid

            	
              No
                Bid

            	
              No
                Bid

            	
              No
                Bid

            	
              No
                Bid

            
	
              Software
                Developer/Programmer

            	
              $66.42

            	
              $68.42

            	
              $70.47

            	
              $72.58

            	
              $74.76

            
	
              Junior
                Software Developer/Programmer

            	
              $56.58

            	
              $58.28

            	
              $60.03

            	
              $61.83

            	
              $63.68

            
	
              Senior
                Systems Software Engineer

            	
              No
                Bid

            	
              No
                Bid

            	
              No
                Bid

            	
              No
                Bid

            	
              No
                Bid

            
	
              Systems
                Software Engineer

            	
              $69.88

            	
              $71.98

            	
              $74.14

            	
              $76.36

            	
              $78.65

            
	
              Junior
                Systems Software Engineer

            	
              $59.53

            	
              $61.32

            	
              $63.16

            	
              $65.05

            	
              $67.00

            
	
              Senior
                Systems Analyst

            	
              $95.00

            	
              $97.85

            	
              $100.79

            	
              $103.81

            	
              $106.92

            
	
              Systems
                Analyst

            	
              $78.00

            	
              $80.34

            	
              $82.75

            	
              $85.23

            	
              $87.79

            
	
              Junior
                Systems Analyst

            	
              $65.00

            	
              $66.95

            	
              $68.96

            	
              $71.03

            	
              $73.16

            

    

     

     

     

    
      
        Form
          Release: 05/01 - Revision: 4/04

        
        

      

      
        --
          2
          --

        
          

        

      

      
        
        

        TIPSS-3
          Federal Statement of Work

      

    

    
 

    
      	
              Senior
                Systems Architect

            	
              $95.00

            	
              $97.85

            	
              $100.79

            	
              $103.81

            	
              $106.92

            
	
              Systems
                Architect

            	
              $78.00

            	
              $80.34

            	
              $82.75

            	
              $85.23

            	
              $87.79

            
	
              Junior
                Systems Architect

            	
              $65.00

            	
              $66.95

            	
              $68.96

            	
              $71.03

            	
              $73.16

            
	
              Senior
                Telecommunication Engineer

            	
              No
                Bid

            	
              No
                Bid

            	
              No
                Bid

            	
              No
                Bid

            	
              No
                Bid

            
	
              Telecommunication
                Engineer

            	
              $67.13

            	
              $69.14

            	
              $71.21

            	
              $73.35

            	
              $75.55

            
	
              Junior
                Telecommunication Engineer

            	
              $57.18

            	
              $58.90

            	
              $60.66

            	
              $62.48

            	
              $64.36

            
	
              Senior
                Web Designer

            	
              No
                Bid

            	
              No
                Bid

            	
              No
                Bid

            	
              No
                Bid

            	
              No
                Bid

            
	
              Web
                Designer

            	
              $58.65

            	
              $60.41

            	
              $62.22

            	
              $64.09

            	
              $66.01

            
	
              Junior
                Web Designer

            	
              $49.96

            	
              $51.46

            	
              $53.00

            	
              $54.59

            	
              $56.23

            

    

    

    
      	
              4.0

            	
              Labor
                Category Descriptions

            

    

    

    See
      Attachment A: Labor Category Descriptions

    

    

    
      	
              5.0

            	
              Acceptance
                Criteria

            

    

    

    To
      qualify for acceptance, each Deliverable shall be completed in accordance with
      the agreed to schedule.  The Buyer Technical Coordinator determines
      acceptance.

    

    Additionally,
      completion may be defined as one of the following two events:

    

    
      	
              1.

            	
              Completion
                of the maximum number of hours called for in the Buyer Purchase Order
                or
                WA to which this SOW is an Attachment or incorporated by
                reference.

            

    

    
      	
              2.

            	
              The  Buyer
                Technical Coordinator’s direction to the Supplier to cease efforts under
                this SOW at any point during performance for any reason including,
                but not
                limited to, early completion of the effort or termination (in part
                or in
                whole) of the effort by Buyer or the
                Customer.

            

    

    

    
      	
              6.0

            	
              Supplier's
                Responsibilities

            

    

    
      	
              6.0

            	
              In
                addition to delivering Tools, Developed Works, and other Deliverables
                and
                Services on schedule, Supplier
                will:

            

    

    

    
      	
               

            	
              1.

            	
              Participate
                in progress reviews, as requested by Buyer, to demonstrate Supplier's
                performance of its obligations.

            

    

    
      	
               

            	
              2.

            	
              Maintain
                records to verify authorship of any Developed Works for four (4)
                years
                after the termination or expiration of this SOW.  On request,
                Supplier will deliver or otherwise make available this information
                in a
                form specified by Buyer.

            

    

    

    
      	
              6.1

            	
              Supplier's
                Use of Subcontractors

            

    

    Supplier
      may subcontract Services to be performed hereunder.  Notwithstanding
      this subsection, Supplier's use of subcontractors will not relieve Supplier
      of
      the responsibility for the subcontractor's performance, and Supplier's
      obligations and responsibilities assumed under this Agreement will be made
      equally applicable to subcontractors.  Buyer reserves the right to
      reject Supplier's use of a subcontractor in performance of this Agreement for
      any reason.

    

    
      	
              6.2

            	
              Asset
                Protection

            

    

    In
      the
      event that assets are loaned to Supplier and there is no separate loan agreement
      in place between Buyer and Supplier for those assets, Supplier will be
      responsible for risk of loss and for the return of those assets to
      Buyer.

    

    
      	
              6.3

            	
              Labor
                Reporting

            

    

    Supplier
      personnel are required to report their time accounting information into the
      Buyer approved labor claiming system. Supplier's employees are responsible
      for
      recording their time to individual project number(s) on a DAILY basis and shall
      submit a timesheet through the labor claiming
      system on a WEEKLY basis. A workweek is defined as 12:01am
      Saturday morning through Friday at midnight. The timesheet shall
      be signed/submitted at the close of business on the Friday ending the work
      week.
      By transmission of an electronic timesheet to  Buyer, Supplier
      certifies that the number of hours indicated

    

    
      
        
          Form
            Release: 05/01 - Revision: 4/04

          
          

        

        
          --
            3
            --

          
            

          

        

        
          
          

          TIPSS-3
            Federal Statement of Work

        

      

    

    

    thereon
      are the actual number of hours expended by the individual named on the
      timesheet, for the Period of Performance indicated, and for the task indicated.
      A timesheet must
      be completed every week, even if the individual did not provide services for
      a
      particular week, during their period of performance under this SOW.

    

    
      	
              6.4

            	
              Technical
                Direction

            

    

    All
      technical efforts hereunder shall be solely at the direction of
      the  Buyer Technical Coordinator, or his designee. Contractual
      direction is provided solely by the  Buyer Subcontracts Administrator
      (Buyer), or authorized designee, as identified in the Purchase Order or
      Subcontract to which this SOW is an attachment.  Supplier agrees
      performance hereunder is executed within the funding limitations as stated
      in
      applicable WAs .  Supplier personnel are not authorized to work
      off-site, which is defined as any location other than a Buyer  or Customer
      designated facility unless specifically authorized to do so in writing
      by the  Buyer’s
      Technical
      Coordinator or designee.  

    

    
      	
              6.5

            	
              Work
                Day

            

    

    The
      standard work day is eight (8) hours of productive labor worked during the
      core
      business hours of 7 A.M. through 6 P.M., Monday through Friday. (The definition
      of “Productive
      Labor”
      is provided in Attachment “B”,
      Prime
      Contract Flow Down Provisions, Article H.10) A half hour lunch period will
      be
      allocated for lunch. The start and stop times for the work day may be determined
      by mutual agreement of the Buyer and Supplier, but should always be implemented
      to meet the particular needs of the business. Supplier personnel are not
      authorized to work on any  Buyer and/or Customer designated holiday
      unless he/she receives advance written/electronic approval
      from  Buyer’s
      Technical
      Coordinator, or designee. No premium is authorized for any holiday that is
      worked. In no event will the Supplier’s
      effort
      exceed the maximum number of hours allocated to each segregable task as funded
      by the  Buyer Purchase Order to which this SOW is an attachment.

    

    
      	
              7.0

            	
              RESERVED

            

    

    

    
      	
              8.0

            	
              Buyer’s
                Responsibilities

            

    

     Buyer
      will provide a project coordinator for monitoring of Supplier’s progress and
      resolution of common concerns throughout the performance period.  If
      applicable,  Buyer will arrange reasonable access to  Buyer
      and customer sites, technical systems, and documentation.

    

    
      	
              9.0

            	
              RESERVED

            

    

    

    
      	
              10.0

            	
              RESERVED

            

    

    

    
      	
              11.0

            	
              Payments

            

    

    

    
      	
              11.0

            	
              Payment
                Terms

            

    

    If
      requested, Supplier shall furnish the  Buyer Project Manager with a
      COPY of all invoices submitted electronically to  Buyer Accounts
      Payable.  Invoices may be submitted monthly for actual hours worked.
      Payment is Net 30 days after receipt of a correct
      invoice.  All invoices shall follow the  Buyer ‘s designated
      invoicing system’s  prescribed format and include, at a minimum,
      the  Buyer Purchase Order number, period of performance, names, labor
      categories, and hours expended by person.

    

    
      	
              11.1

            	
              Travel
                Expense Guidelines:

            

    

    Travel
      per diem charges will be in accordance with the Federal Travel Regulations
      (FTRs) or other applicable regulations set forth in Buyer’s prime contracts with
      Customer applicable to specific WAs placed under this Agreement and Public
      Law
      99-234.  When air travel is involved, Supplier shall use the least
      expensive mode; i.e., economy or coach.  Buyer will reimburse for
      rental cars if applicable (economy or mid-size vehicles are to be used). When
      using a personal vehicle for  Buyer directed business related travel,
      and when specifically authorized via a WA,  Buyer will reimburse
      Supplier for mileage at the then current mileage reimbursement rate prescribed
      in the FTRs.  All receipts for such travel and living expenses are to
      accompany Supplier’s invoice to  Buyer. Receipts are needed for all
      airline tickets, hotel accommodations and car rentals, regardless of value.
      Any
      other expenditures greater than $75.00 also require receipts to be provided
      to  Buyer in support of Supplier’s invoice.

    Local
      travel (mileage, tolls, parking, etc.) is not considered to be an allowable
      cost
      under this SOW, and will not be reimbursed to Supplier. Local travel is defined
      as travel  between work locations in the Washington metro
      area.

    

    
      
        
          Form
            Release: 05/01 - Revision: 4/04

          
          

        

        
          --
            4
            --

          
            

          

        

        
          
          

          TIPSS-3
            Federal Statement of Work

        

      

    

     

     

    
      
        	
                11.2

              	Travel Invoice
                Guidelines:

      

    

    As
      with
      labor invoices, travel invoices shall be submitted via the Buyer designated
      invoicing system.  Travel invoices must be received
      by  Buyer in the required format within thirty (30) calendar days
      after the end date of the trip.   Buyer is unable to short-pay
      travel invoices if a discrepancy is found between the amount billed and the
      amount that can be paid.  Therefore, Supplier is required to provide
      travel expense reports in the required format (See Attachment C) to the Buyer’s
      Technical Coordinator or designee for review and concurrence prior to submitting
      an electronic invoice.

    

    Supporting
      invoice data shall include:

    

    
      	
               

            	
              ·

            	
              MTSA
                number and corresponding PO or WA, including line item
                number

            

    

    
      	
               

            	
              ·

            	
              Travel
                costs broken down on a daily basis

            

    

    
      	
               

            	
              ·

            	
              Period
                covered by the invoice

            

    

    
      	
               

            	
              ·

            	
              Invoice
                total

            

    

    
      	
               

            	
              ·

            	
              Invoice
                number and date

            

    

     

     

    
      	
              12.0

            	
              RESERVED

            

    

    
 

    
      	
              13.0

            	
              Communications

            

    

    All
      communications between the parties will be carried out through the following
      designated coordinators. All notices required in writing under this Agreement
      will be made to the appropriate contact listed below at the following addresses
      and will be effective upon actual receipt. Notices may be transmitted
      electronically, by registered or certified mail, or courier. All notices, with
      the exception of legal notices, may also be provided by facsimile.

     

    
      
        	
                Business
                  Coordinators

              
	
                FOR
                  SUPPLIER

              	 	
                FOR
                  BUYER

              	 
	
                Name

              	 	
                Name

              	
                Greg
                  Liberatore

              
	
                Title

              	 	
                Title

              	
                Procurement
                  Advisor

              
	
                Address

              	 	
                Address

              	
                6300
                  Diagonal
                  Highway

                Boulder,  CO  80301

              
	
                Phone

              	 	
                Phone

              	
                303-924-6124

              
	
                Fax

              	 	
                Fax

              	
                845491-5710

              
	
                E-mail

              	 	
                E-mail

              	
                liberato@us.ibm.com

              

      

    

    

      
        	
                Technical
                  Coordinators

              
	
                FOR
                  SUPPLIER

              	 	
                FOR
                  BUYER

              	 
	
                Name

              	 	
                Name

              	
                Mona
                  Kotlarsky

              
	
                Title

              	 	
                Title

              	
                Project
                  Manager

              
	
                Address

              	 	
                Address

              	
                6710
                  Rockledge Drive

                Bethesda,
                  MD
                  20817

              
	
                Phone

              	 	
                Phone

              	
                301-803-2684

              
	
                Fax

              	 	
                Fax

              	
                301
                  803 2684

              
	
                E-mail

              	 	
                E-mail

              	
                mkot@us.ibm.com

              

      

       

    

     

    
      	
              14.0

            	
              Electronic
                Commerce

            

    

    

    Unless
      previously submitted by Supplier, in order to initiate electronic transfer
      of
      payments associated with this SOW, Supplier will complete the form entitled
      “Authorization for Electronic Funds Transfer” and fax the completed form to
      Accounts Payable at the number included on the form.

    
 

    
      	
              15.0

            	
              Federal
                Acquisition Regulation
                References

            

    

    

    
      
        
          Form
            Release: 05/01 - Revision: 4/04

          
          

        

        
          --
            5
            --

          
            

          

        

        
          
          

          TIPSS-3
            Federal Statement of Work

        

      

    

    

    
      	
               

            	
                    Full
                Text Prime Contract Flow down Provisions - See Attachment
                B

            

    

    

     

    
      	
              16.0

            	
              Federal
                Changes To The Base
                Agreement

            

    

    Except
      as
      detailed in this Section  all terms and conditions of Base Agreement
      Number 4902FP0169 remain unchanged and govern the rights and responsibilities
      of
      the parties to the Agreement.

    

    For
      purposes of this SOW, the following sections replace the sections in the Base
      Agreement Number 4902FP0169.

     

    
      
        	
                7.0

              	Delivery

      

      Deliverables
        or Services will be delivered as specified in the relevant SOW and/or
        WA.  Buyer may cancel or reschedule the delivery date or change the
        delivery point as specified in the relevant SOW and/or WA. If Supplier cannot
        comply with a delivery commitment, Supplier will promptly notify Buyer of
        a
        revised delivery date and  Buyer may:

    

    1.  cancel
      without charge Deliverables or Services not yet delivered;

    2.  procure
      such Deliverables or Services elsewhere and charge Supplier the cost
      differential; and

    3.  exercise
      all other remedies provided at law, in equity and in this
      Agreement.

    

    Deliverables
      and Services provided during the performance of this Agreement are in support
      of, and placed under, the Government Agencies and associated Government Contract
      numbers identified in the Release Orders issued under this Agreement. In
      addition, Defense priorities and Allocations System (DPAS) Ratings associated
      with specific efforts, if any, will be identified in Release Orders pertaining
      to those efforts.

     

    
      
        	
                14.2

              	Termination of a SOW or
                WA

      

      Buyer
        may
        terminate a SOW or WA with Cause effective immediately in accordance with
        FAR
        52.249, or without Cause on written notice in accordance with FAR 52.249.
        Upon
        termination, in accordance with Buyer’s written direction, Supplier will
        immediately:

    

    1.  cease
      work;

    2.  prepare
      and submit to Buyer an itemization of all completed and partially completed
      Deliverables and Services;

    3.  deliver
      to Buyer Deliverables satisfactorily completed up to the date of termination
      at
      the agreed upon Prices in the relevant SOW and/or WA; and

    4.  deliver
      upon request any work in process.

    

    In
      the
      event Buyer terminates without Cause, Buyer will compensate Supplier for the
      actual and reasonable expenses incurred by Supplier for work in process up
      to
      and including the date of termination provided Supplier uses reasonable efforts
      to mitigate Buyer’s liability under this Subsection by, among other actions,
      accepting the return of, returning to its suppliers, selling to others, or
      otherwise using the canceled Deliverables (including raw materials or work
      in
      process) and provided such expenses do not exceed the Prices. If the termination
      is for Cause, Supplier shall be compensated only for Deliverables and Services
      actually delivered and accepted and shall be liable for Buyer’s re-procurement
      costs, damages and losses.

     

    
      
        	
                15.3

              	Choice of Law and Forum; Waiver of Jury
                Trial;
                Limitation of Action; Disputes

      

      This
        Agreement and the performance of transactions under this Agreement will be
        governed by the laws of the country where the Buyer entering into the relevant
        agreement or PA is located, except that the laws of the State of New York
        applicable to contracts executed in and performed entirely within that State
        will apply if any part of the transaction is performed within the United
        States.  The United Nations Convention on Contracts for the
        International Sale of Goods does not apply. Any Federal clauses contained
        in
        this Agreement or incorporated by reference shall be construed and interpreted
        in accordance with Federal law, including, but not limited to burden of proof
        and calculation of damages. Any dispute or claim arising out of or relating
        to
        this Agreement shall be submitted to the Buyer in writing.  Those
        disputes or claims that cannot be resolved by mutual agreement shall be resolved
        by litigation in accordance with the provisions of this section, unless the
        parties mutually agree in writing to resolve the matter through some other
        means, including alternative dispute resolution methods. The parties expressly
        waive any right to a jury trial regarding disputes related to this
        Agreement.  Unless otherwise provided by local law without the
        possibility of contractual waiver or limitation, any legal or other action
        related to this Agreement must be commenced no later than two (2) years from
        the
        date on which the cause of action arose.

    

     

    
      
        	
                15.11

              	Record Keeping and Audit
                Rights

      

      

 

    

    
      
        
          Form
            Release: 05/01 - Revision: 4/04

          
          

        

        
          --
            6
            --

          
            

          

        

        
          
          

          TIPSS-3
            Federal Statement of Work

        

      

    

    

    Supplier
      will maintain (and provide to Buyer upon request) relevant business and
      accounting records to support invoices under this Agreement and proof of
      required permits and professional licenses, for a period of time as required
      by
      local law, but not for less than three (3) years following completion or
      termination of the relevant SOW and/or WA.  All accounting records
      will be maintained in accordance with generally accepted accounting principles,
      except where Public Law 100-679 requires that Supplier comply with Cost
      Accounting Standards.

    

    
      	
              16.0

            	
              Additional
                Terms And Conditions

            

    

    
      	
              16.1

            	
              Export
                of Technical Data

            

    

    Supplier
      will not, nor will Supplier authorize or permit Supplier Personnel to disclose,
      export or re-export any of Buyer’s information, or any process, Deliverable, or
      Service that is produced under this Agreement, without prior notification and
      compliance with all applicable Federal, State and local laws, regulations and
      ordinances, including the regulation of the US Department of Commerce and/or
      the
      US Department of State.  In addition, Supplier agrees to notify Buyer
      if Supplier is listed in the Denied Parties List published by the Department
      of
      Commerce, or if Supplier export privileges are otherwise denied, suspended,
      or
      revoked in whole or in part.

    

    
      	
              16.2

            	
              Small,
                Disadvantaged, Women-Owned and HUBZone
                Businesses

            

    

    If
      Supplier is a large business, Supplier represents to Buyer that Supplier has
      in
      its procurement process an active program which complies with all applicable
      laws and provides participation opportunities to small, disadvantaged,
      women-owned, and HUBZone businesses.

    

    
      	
              16.3

            	
              Notification
                of Debarment/Suspension

            

    

    By
      acceptance of this Agreement either in writing or by performance, Supplier
      certifies that as of the date of award of this Agreement neither Supplier,
      nor
      any of Supplier’s principals, is debarred, suspended, or proposed for debarment
      by the Federal Government or any State Government.  Further, Supplier
      shall provide immediate written notice to Buyer in the event that during the
      performance of this Agreement and any Release Orders placed hereunder, Supplier
      or any of Supplier’s principals is debarred, suspended, or proposed for
      debarment by the Federal Government or any State Government.

    

    
      	
              16.4

            	
              Compliance
                with Laws Unique to Government
                Contracts

            

    

    Supplier
      agrees to comply with 31 U.S.C. 1352 relating to limitation on the use of
      appropriated funds to influence certain Federal contracts; 18 US C. 431 relating
      to official not to benefit; 40 U.S.C. 327 et seq; Contract Work Hours and Safety
      Standards Act; 41 U.S.C. 51-58 Anti-Kickback Act of 1986; 41 U.S.C. 265 relating
      to whistle blower protections; 49 U.S.C. 40118, Fly American Act; and 41 U.S.C.
      423 Procurement Integrity; and 41 C.F.R. part 470 regarding Beck
      regulations.

    

    
      	
              16.5

            	
              Documentation

            

    

    Documentation
      supporting all invoice charges shall be sent via fax to the IBM Global Services
      Technical Coordinator. Supporting documentation includes, but is not limited
      to,
      travel receipts and itemized expense accounts, copies of freight bills,
      contractor time sheets, and evidence that Deliverables and Services were
      completed per the Agreement and Release Order placed under this Agreement.
      Other
      supporting documentation shall be sent immediately after the event which
      generated the expense.  SUPPORTING DOCUMENTATION SHALL NOT BE DEEMED
      PROPERLY RECEIVED BY BUYER IF IT IS SENT TO ACCOUNTS PAYABLE RATHER THAN TO
      THE
      TECHNICAL COORDINATOR.

    

    
      	
              16.6

            	
              Indemnification
                for defective cost or pricing
                data

            

    

    Unless
      otherwise exempt under FAR 15.403-1, Supplier agrees to furnish Buyer with
      Cost
      or Pricing Data under this Agreement if the Agreement exceeds the established
      threshold, or if otherwise requested by Buyer pursuant to FAR 15.403-4, and
      also
      agrees to furnish Buyer Cost or Pricing Data for all modifications to the PO
      involving aggregate increases and/or decreases in costs, plus applicable
      profits, exceeding the established threshold. Supplier agrees to furnish Buyer
      all information required by Buyer to support any claimed
      exemption.  In addition, if Supplier is required to furnish Buyer cost
      or pricing data under this PO, Supplier agrees that FAR Part 31, "Contract
      Cost
      Principles and Procedures" shall apply.

    

    If
      Supplier furnishes Buyer with Cost or Pricing Data and if Buyer's Customer
      (the
      US Government, Government prime contractor or a Government subcontractor)
      determines that the price of Buyer's contract with the Customer is reduced
      because such price was overstated due to the Supplier or any of Supplier’s lower
      tier subcontractors furnishing to Buyer Cost or Pricing Data that was not
      accurate, complete and current, then in addition to any other remedy provided
      by
      law or under this PO, Supplier agrees to indemnify and hold Buyer harmless
      to
      the full extent of any loss, damage or expense resulting from such
      failure.

    

    
      
        
          Form
            Release: 05/01 - Revision: 4/04

          
          

        

        
          --
            7
            --

          
            

          

        

        
          
          

          TIPSS-3
            Federal Statement of Work

        

      

    

    

    
      
        	
                16.7

              	Solicitation of Supplier’s
                Personnel

      

      Buyer
        reserves the right to make offers to Supplier’s personnel to become employees
        of  Buyer, once 90 calendar days of the period of performance has
        elapsed on the WA and subject to the following limitations.

       

      
        
          	
                   

                	
                  (i)

                	
                  Buyer’s
                    offer of employment accepted within 90 – 180 calendar days of Supplier’s
                    personnel commencement of performance entitles Supplier to a
                    placement fee
                    of $5,000.

                

        

         

        
          
            	
                     

                  	
                    (ii)

                  	
                    Buyer’s
                      offer of employment accepted after 180 calendar days of Supplier’s
                      personnel commencement of performance will not entitle Supplier
                      to any
                      placement fee.

                  

          

           

          The
            above-mentioned placement lump-sum fee in (i) or lack thereof as described
            in
            (ii) of this subsection represents  Buyer’s entire liability to
            Supplier for the solicitation and hire of Supplier’s personnel and fair and
            valuable consideration for Supplier.  In the event personnel of
            Supplier are offered employment with  Buyer, and pursuant to the above
            limitations, Supplier shall waive any of its rights pursuant to any restrictive
            covenant/non-competition agreements it may have with Supplier’s
            personnel.

        

      

    

    

    It
      is
      not  Buyer’s intent to use this agreement as a means for Supplier to
      recruit for Buyer.  Rather, this agreement allows  Buyer to
      pursue business that would not otherwise be offered, where the customer would
      prefer not to have the position subcontracted.  It
      is  Buyer’s primary interest to maintain the subcontractor
      relationship on the program.

    

    In
      the
      event that any Supplier’s personnel apply for and are offered employment
      by  Buyer, without prior solicitation by  Buyer, Supplier
      shall not charge  Buyer with any expenses, costs, fees, etc. resulting
      from such hiring, nor seek any damages from  Buyer.

    

    The
      Terms
      and Conditions of this clause shall flow down, and be made equally applicable
      to
      Supplier’s tiered suppliers. The fee schedule only applies to the Supplier.
      Supplier agrees to negotiate a mutually agreeable placement fee with its
      tiered  suppliers.

    

    
      	
              17.0

            	
              RESERVED

            

    

    

    
      	
              18.0

            	
              Statement
                Of Work Order Of
                Precedence

            

    

    The
      order
      of precedence is stated in the Base Agreement under “Prior Communications and
      Order of Precedence.”  In the event of a conflict between the SOW
      Sections 15.0, 16.0, 17.0, 18.0 and 19.0 of this SOW, the order of precedence
      will be 19.0, 18.0, 17.0, 16.0 and 15.0.

    

    
      	
              19.0

            	
              RESERVED

            

    

    

    
      	
              ACCEPTED
                AND AGREED TO:

            	 	
              ACCEPTED
                AND AGREED TO:

            
	
              International
                Business Machines Corporation

            	 	
              FuGEN,
                Inc.

            
	
               

              By:
                /s/ Gregory
                D. Liberatore

            	 	
               

              By:
                /s/ 

            
	
              Buyer
                Signature                          Date

            	 	
              Supplier
                Signature                       Date

            
	
              Gregory
                D. Liberatore

            	 	 
	
              Printed
                Name

            	 	
              Printed
                Name

            
	
              Procurement
                Advisor, Global Services Procurement Federal

            	 	 
	
              Title
                & Organization

            	 	
              Title
                & Organization

            
	 	 	 
	
              Buyer
                Address:

              6300
                Diagonal Highway

              Boulder,
                CO  80301

              USA

            	 	
              Supplier
                Address:

               

            

    

    

    

    
      
        
          Form
            Release: 05/01 - Revision: 4/04

          
          

        

        
          --
            8
            --

          
            

          

        

        
          
          

          TIPSS-3
            Federal Statement of Work

        

      

    Attachment
      A

    

    Labor
      Category Descriptions

    

    

    TASK/PROJECT
      MANAGER

    

    The
      Project Manager is a senior manager responsible for coordinating the management
      of all work performed on an individual task order.  The Project
      Manager shall act as the central point of contact.  Project Manager
      responsibilities may include, but not be limited to, the following:

    

    (a)  Providing
      competent leadership and responsible program direction through successful
      performance of a variety of detailed, diverse elements of project
      transitioning;

    

    (b)Demonstrating
      competence using data from project management tools;

    

    (c)  Simultaneously
      planning and managing the transition of highly technical projects and directs
      completion of tasks within estimated time frames and budget
      constraints;

    

    (d)  Organizing,
      directing, and coordinating planning and production of all support activities
      and resource needs and assigning duties to subordinates;

    

    (e)  Communications,
      both written and oral, with all levels of management and Government
      representatives, including but not limited to,  BUYER Management, the
      CO, COTR and Lead Contracting Officer’s Technical Representative (Lead COTR);
      and

    

    (f)  Meeting
      with Department of the Treasury, IRS, and other federal agency management
      officials regarding the status of specific task order activities and problems,
      issues or conflicts requiring resolution.

    

    

    C.7.1.2  SUBJECT
      MATTER EXPERT

    

    General
      Description:

    An
      individual whose knowledge and skills are applicable to an actual SOW or SON
      and
      is so recognized in the professional community that the Government is able
      to
      qualify the individual as an expert in the field.  (For example:
      publications, speeches at conferences, research, and
      teaching.)  Demonstrates exceptional oral and written communications
      skills.

    

    Education:

    An
      advanced degree (Master's or Doctoral degree) from an accredited college or
      university in the field of expertise described in an actual SOW or SON is
      required.

    

    The
      Contracting Officer may approve a waiver for substitution of

    experience
      for the education requirement, on a case by case basis.

    

    General
      Experience:

    Eight
      (8)
      years of progressive experience in the field of expertise required by an actual
      SOW or SON.

    

    Specific
      Experience:

    At
      least
      four (4) years of the General Experience is concentrated, hands-on experience
      in
      the specific discipline of the field of expertise required by an actual SOW
      or
      SON.

    

    Function:

    

    
      
        
          Form
            Release: 05/01 - Revision: 4/04

          
          

        

        
          --
            9
            --

          
            

          

        

        
          
          

          TIPSS-3
            Federal Statement of Work

        

      

    

    

    Performs
      as a consultant in highly specialized, leading edge information technologies
      and
      methodologies;  Provides highly technical and specialized guidance
      concerning automated solutions to complex information processing
      problems;  Performs elaborate analyses and
      studies;  Prepares reports and gives presentations;  Works
      independently or as a member of a team;  May serve as a Contractor
      Task Order Project Manager.

    

    Examples
      (not all inclusive):

    
      
        
          	
                  Information
                    Technology Expert

                	
                  Neural
                    Network Expert

                
	
                  Organizational
                    Development Expert

                	
                  Artificial
                    Intelligence Expert

                
	
                  Industrial/Organizational
                    Psychologist

                	
                  Business
                    Systems Analyst

                

        

    

    C.7.1.3   SENIOR
      INFORMATION TECHNOLOGY SPECIALIST

    

    General
      Description:

    An
      individual very knowledgeable in all aspects of IT;  Has extensive
      experience in the specific IT discipline(s) described in an actual SOW or SON;
      Demonstrates very good oral and written communications skills.

     

    

    General
      Experience:

    Eight
      (8)
      years of progressive experience in the field of IT, including six (6) years
      of
      specialized experience in numerous, highly specialized IT disciplines involving
      a wide range of hardware/software solutions.

    

    Specific
      Experience:

    At
      least
      four (4) years of General Experience is concentrated, hands-on experience in
      all
      aspects of the specific discipline(s) of IT required by an actual SOW or
      SON.

    

    Function:

    Provides
      highly technical and specialized guidance and solutions to complex IT problems;
      Performs elaborate analyses and studies.  Prepares reports and gives
      presentations; Works independently or as a member of a team; May serve as
      Contractor Task Order Project Manager.

    

    Examples
      (not all inclusive):

    Senior
      Telecommunications
      Engineer                                                                    
Senior Systems Analyst

    Senior
      Independent
      Evaluator                                                                         
Software Customization
      Specialist

    Senior
      Telecommunications
      Specialist                                                                    Senior
      Information Technology Engineer

    Senior
      Communications Specialist                          
Senior
      Systems Programmer

    Senior
      Organizational
      Specialist                                                                              
Senior Applications Programmer

    Senior
      Network Engineer                                  
      Senior Organizational Change Specialist

    Senior
      Internet/Intranet
      Specialist                                                                           Senior
      Work Systems Design Specialist

    Senior
      Software Systems Specialist                         Senior
      Data Base Management
      Specialist

    Senior
      Business Process Re-Engineering Specialist

    Senior
      Integration and Integration Testing Specialist

    

    C.7.1.4   INFORMATION
      TECHNOLOGY SPECIALIST

    

    General
      Description:

    An
      individual very knowledgeable in IT; Has extensive experience in the specific
      IT
      discipline(s) described in an actual SOW or SON.  Demonstrates good
      oral and written communications skills.

    

    General
      Experience:

    Six
      (6)
      years of progressive experience in the field of IT, including four (4) years
      of
      specialized experience in numerous highly specialized IT disciplines involving
      a
      wide range of hardware/software solutions.

    

    Specific
      Experience:

    At
      least
      three (3) years of General Experience is concentrated hands-on experience in
      the
      specific discipline(s) of IT required by an actual SOW or SON.

    

    
      
        
          Form
            Release: 05/01 - Revision: 4/04

          
          

        

        
          --
            10
            --

          
            

          

        

        
          
          

          TIPSS-3
            Federal Statement of Work

        

      

    

    

    Function:

    Provides
      highly technical and specialized solutions to complex IT problems; Performs
      analyses and studies;  Prepares reports;  Works
      independently or as a member of a team.

    

    Examples
      (not all inclusive):

    
      	
              Systems
                Analyst

            	
              Telecommunications
                Engineer

            
	
              Optimization
                Specialist

            	
              Network
                Engineer

            
	
              Lead
                Programmer/Analyst

            	
              Internet/Intranet
                Specialist

            
	
              Relational
                Database Specialist

            	
              Communications
                Specialist

            
	
              Information
                Technology Engineer

            	
              Organizational
                Specialist

            
	
              Systems
                Programmer

            	
              Organizational
                Change Specialist

            
	
              Applications
                Programmer

            	
              Independent
                Evaluator

            
	
              Internet/Intranet
                Specialist

            	
              Work
                Systems Design Specialist

            
	
              Data
                Base Management Specialist

            	
              Software
                Systems Specialist

            
	
              Business
                Process Re-Engineering Specialist

            	 
	
              Integration
                and Integration Testing Specialist

            	 

    

     

     

    C.7.1.5   JUNIOR
      INFORMATION TECHNOLOGY SPECIALIST

     

    General
      Description:

    An
      individual knowledgeable in IT.  Has experience in the specific IT
      discipline(s) described in an actual SOW or SON.  Demonstrates good
      oral and written communications skills.

    

    General
      Experience:

    Four
      (4)
      years of progressive experience in the field of IT, including three (3) years
      of
      specialized experience in highly specialized Information Technology

    disciplines
      involving a range of hardware/software solutions.

    

    Specific
      Experience:

    At
      least
      two (2) years of General Experience is concentrated hands-on

    experience
      in the specific discipline(s) of IT required by an actual SOW or
      SON.

    

    Function:

    Provides
      technical and specialized solutions to complex IT problems.  Performs
      analyses and studies.  Prepares reports.  Works
      independently or as a member of a team.

    

    Examples
      (not all inclusive):

    
          Junior
        Systems Programmer

          Junior
        Network Engineer

          Junior
        Telecommunications Specialist

          Junior
        Work
        Systems Design Specialist

          Junior
        Applications Programmer

          Junior
        Communications Specialist

          Junior
        Internet/Intranet Specialist

          Junior
        Organizational Change Specialist

          Junior
        IV&V Specialist

          Junior
        Software Systems Specialist

          Junior
        Data
        Base Management Specialist

          Junior
        Systems Analyst

          Junior
        Integration and Integration Testing Specialist

          Junior
        Telecommunications Engineer

          Junior
        Information Technology Engineer

    

     

     

     

    C.7.1.6  SENIOR
      INFORMATION TECHNOLOGY TECHNICIAN

    

    General
      Description:

    

    
      
        
          Form
            Release: 05/01 - Revision: 4/04

          
          

        

        
          --
            11
            --

          
            

          

        

        
          
          

          TIPSS-3
            Federal Statement of Work

        

      

    

    

    An
      individual very knowledgeable in and experienced with software and hardware
      operations for IT.  Has experience in the specific technologies
      required by an actual SOW or SON.

    

    General
      Experience:

    Five
      (5)
      years progressive experience in the field of software or hardware
      operations.

    

    Specific
      Experience:

    At
      least
      three (3) years of General Experience is concentrated hands-on experience in
      the
      specific discipline(s) of IT required by an actual SOW or SON.  The
      experience shall be with the specific equipment, software or other requirement
      specified in an actual SOW or SON.

    

    Function:

    Provides
      support in the less technical disciplines of IT, such as computer operations,
      moving and installing equipment, computer cabling, data entry and verification,
      media duplication, document control and software installation.  Works
      independently or as a member of a team.

    

    Examples
      (not all inclusive):

    
      
        	
                Senior
                  Computer Operator

              	
                Senior
                  Database Administrator

              
	
                Senior
                  Document Control Specialist

              	
                Senior
                  Systems Administrator

              
	
                Senior
                  Computer Installation Technician

              	
                Senior
                  Help Desk Manager

              
	
                Senior
                  Data Technician

              	
                Senior
                  Network Administrator

              
	
                Senior
                  Network Technician

              	
                Senior
                  Communications Technician

              
	
                Senior
                  Organizational Change Technician

              	 
	
                Senior
                  Hardware/Software (HW/SW) Installation Technician

              	 

      

    C.7.1.7   INFORMATION
      TECHNOLOGY TECHNICIAN

    

    General
      Description:

    An
      individual knowledgeable in and experienced with hardware and software
      operations for IT.  Has experience in the specific technologies
      required by an actual SOW or SON.

    

    General
      Experience:

    Three
      (3)
      years progressive experience in the field of software or hardware
      operations.

    

    Specific
      Experience:

    At
      least
      two (2) years of General Experience is concentrated hands-on experience in
      the
      specific discipline(s) of IT required by an actual SOW or SON.  The
      experience shall be with the specific equipment, software or other requirement
      specified in an actual SOW or SON.

    

    Function:

    Provides
      support in the less technical disciplines of Information Technology, such as
      computer operations, moving and installing equipment, computer cabling, data
      entry and verification, media duplication, document control and software
      installation.  Works as a member of a team.

    

    Examples
      (not all inclusive):

    
      
        	
                Data
                  Entry Specialist

              	
                Organizational
                  Change Technician

              
	
                Computer
                  Operator

              	
                Work
                  Systems Design Technician

              
	
                Database
                  Administrator

              	
                Data
                  Technician

              
	
                System
                  Administrator

              	
                Help
                  Desk Technician

              
	
                Network
                  Technician

              	
                Communications
                  Technician

              
	
                Network
                  Administrator

              	
                Hardware/Software
                  Installation Technician

              

      

       

    

    C.7.1.8   JUNIOR
      INFORMATION TECHNOLOGY TECHNICIAN

     

    

    General
      Description:

    An
      individual knowledgeable in hardware and software operations for
      IT.  Has experience in the specific

    

    
      
        
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    technologies
      required by an actual SOW or SON.

    

    General
      Experience:

    Two
      (2)
      years progressive experience in the field of software or hardware
      operations.

    

    Specific
      Experience:

    At
      least
      one (1) year of General Experience is concentrated hands-on experience in the
      specific discipline(s) of IT required by an actual SOW or SON.  The
      experience shall be with the specific equipment, software or other requirement
      specified in an actual SOW or SON.

    

    Function:

    Provides
      support in the less technical disciplines of IT, such as computer operations,
      moving and installing equipment, computer cabling, data entry and verification,
      media duplication, document control and software installation.  Works
      as a member of a team.

    

    Examples
      (not all inclusive):

    Junior
      Data Entry Specialist                     Junior
      Computer
      Operator

    Junior
      HW/SW Installation Technician                
      Junior Data Technician

    

    C.7.1.9  SENIOR
      INFORMATION TECHNOLOGY ADMINISTRATIVE SPECIALIST

    

    General
      Description:

    An
      individual very knowledgeable in computer-based documentation and presentation
      techniques, technical writing, technical proofreading and technical
      editing.  Demonstrates excellent command and articulation of the
      English language.  Demonstrates superior grammar skills.

    

    General
      Experience:

    Five
      (5)
      years of progressive experience in technical writing and documentation
      preparation in the field of information processing.

    

    Function:

    Prepares
      documentation to be furnished as an actual SOW or SON
      deliverable(s).  Provides administrative support such as technical
      writing, proofreading, technical editing of word processing and other
      computer-based documents, integration of various sources into a cohesive product
      which may be delivered as computer-based magnetic media, preparation of
      graphical and narrative presentation material.  Works as part of a
      team.

    

    Examples
      (not all inclusive):

    Senior
      Technical
      Writer                                                                Senior
      Documentation Specialist

    Senior
      Graphics
      Specialist                                                            Senior
      Computer Aide

    

    

    C.7.1.10   INFORMATION
      TECHNOLOGY ADMINISTRATIVE SPECIALIST

    

    General
      Description:

    An
      individual knowledgeable in computer-based documentation and presentation
      techniques, technical typing and word processing.  Demonstrates
      excellent command and articulation of the English language.  Has
      superior grammar skills.

    

    General
      Experience:

    Three
      (3)
      years of progressive experience in technical typing and documentation
      preparation in the field of IT.

    

    Function:

    Prepares
      documentation to be furnished as an actual SOW or SON
      deliverable(s).  Provides administrative support such as technical
      typing, editing of word processing and other computer-based manuscripts,
      integration of various sources into a cohesive product which may be delivered
      as
      computer-based magnetic media, preparation of graphical and narrative
      presentation material.  Works as part of a team.

    

    
      
        
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    Example:

    Technical
      Writer                                                                Documentation
      Specialist

    Graphics
      Assistant                                                           
Technical Typist

    Computer
      Aide

    

    C.7.1.11  SENIOR
      SECURITY SPECIALIST

    

    General
      Description:

    An
      individual very knowledgeable and experienced in all aspects of Security
      .  Has extensive experience in the specific Security discipline(s)
      described in an actual SOW or SON.  Demonstrates very good oral and
      written communications skills.

    

    General
      Experience:

    Eight
      (8)
      years of progressive experience in the field of IT, including six (6) years
      of
      specialized experience in numerous, highly specialized IT disciplines involving
      a wide range of hardware/software solutions.

    

    Specific
      Experience:

    At
      least
      four (4) years of General Experience is concentrated, hands-on experience in
      all
      aspects of the specific area(s) of Security required by an actual SOW or
      SON.

    

    Function:

    Provides
      highly technical and specialized guidance, and solutions to complex Security
      problems.  Performs elaborate analyses and
      studies.  Prepares reports and gives presentations to upper
      management.  Works independently or as a member of a
      team.  May serve as Contractor Task Order Project
      Manager.

    

    Examples
      (not all inclusive):

    Senior
      Computer Security
      Specialist                                                                           
Senior Security Engineer

    Senior
      Business Systems
      Analyst                                                                               Senior
      IT Audit Manager

    Senior
      Information Security
      Administrator                                                                 Senior
      Data Security Specialist

    Senior
      Disaster Recovery
      Specialist                                                                           
Senior Network Security Analyst

    Senior
      Security Systems Specialist

     

    C.7.1.12   SECURITY
      SPECIALIST

    

    General
      Description:

    An
      individual knowledgeable and experienced in all aspects of Security
      .  Has extensive experience in the specific Security discipline(s)
      described in an actual SOW or SON.  Demonstrates very good oral and
      written communications skills.

    

    General
      Experience:

    Six
      (6)
      years of progressive experience in the field of IT, including four (4) years
      of
      specialized experience in numerous, highly specialized IT disciplines involving
      a wide range of hardware/software solutions.

    

    Specific
      Experience:

    At
      least
      three (3) years of General Experience is concentrated, hands-on experience
      in
      all aspects of the specific area(s) of Security required by an actual SOW or
      SON.

    

    Function:

    Provides
      highly technical and specialized guidance, and solutions to complex Security
      problems.  Performs analyses and studies.  Prepares reports
      and gives presentations to management.  Works independently or as a
      member of a team.

    

    Examples
      (not all inclusive):

    Computer
      Security
      Specialist                                                                   Security
      Analyst

    Data
      Security
      Specialist                                                                           Disaster
      Recovery Specialist

    IT
      Audit
      Manager                                                                                    
Network Security Analyst

    Security
      Systems Specialist

    

    
      
        
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          TIPSS-3
            Federal Statement of Work

        

      

    

    

    

    C.7.1.13   JUNIOR
      SECURITY SPECIALIST

    

    General
      Description:

    An
      individual knowledgeable in several aspects of Security.  Has
      experience in the specific Security discipline(s) described in an actual SOW
      or
      SON.  Demonstrates good oral and written communications
      skills.

    

    General
      Experience:

    Three
      (3)
      years of progressive experience in the field of IT, including one (1) year
      of
      specialized experience in specialized IT disciplines involving a limited range
      of hardware/software solutions.

    

    Specific
      Experience:

    At
      least
      two (2) years of General Experience is concentrated hands-on experience in
      the
      specific area(s) of Security required by an actual SOW or SON.

    

    Function:

    Provides
      technical and specialized guidance, and solutions to Security
      problems.  Performs analyses and studies.  Prepares reports
      and gives presentations to management.  Works independently or as a
      member of a team.

    

    Examples
      (not all inclusive):

    Junior
      Security
      Analyst                                                                Security
      Technical Assistant

    

    

    C.7.1.14   SENIOR
      INFORMATION TECHNOLOGY TRAINING SPECIALIST

    

    General
      Description:

    An
      individual who is very good at imparting technical information to technical
      and
      non-technical personnel and is also very knowledgeable in IT.  Has
      extensive experience in developing courses and teaching in all aspects of
      IT.  Demonstrates excellent oral and written communication
      skills.

    

    General
      Experience:

    Eight
      (8)
      years of progressive experience in the field of IT, including six (6) years
      as
      an instructor of various highly specialized IT disciplines.

    

    Specific
      Experience:

    At
      least
      four (4) years of General experience is hands-on experience in the development
      and performance of training courses in IT, in the discipline specified by an
      actual SOW or SON.

    

    Function:

    Develops
      courses and instructional material to educate technical and non-technical
      personnel in IT.  Develops curricula and modular training
      courses.  Gathers and assembles information pertaining to the subject
      matter, organizes and condenses materials.  Teaches
      courses.  Works independently or as part of a team.  May
      serve as Contractor Task Order Project Manager.

    

    Examples
      (not all inclusive):

    Senior
      Instructor

    Senior
      Course Developer

    Senior
      Information Systems Training Specialist

    Senior
      Technical Writer

    Senior
      Knowledge Management Computer Specialist

    Senior
      Documentation Specialist

    

    
      
        
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          TIPSS-3
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    C.7.1.15   INFORMATION
      TECHNOLOGY TRAINING SPECIALIST

     

    

    General
      Description:

    An
      individual who is very good at imparting technical information to technical
      and
      non-technical personnel and is also very knowledgeable in IT.  Has
      experience in developing courses and teaching in all phases of
      IT.  Demonstrates very good oral and written communication
      skills.

    

    General
      Experience:

    Five
      (5)
      years of progressive experience in the field of IT, including three (3) years
      as
      an instructor of various highly specialized IT disciplines.

    

    Specific
      Experience:

    At
      least
      two (2) years of General Experience is hands-on experience in the development
      and performance of training courses in IT, in the discipline specified by an
      actual SOW or SON.

    

    Function:

    Develops
      courses and instructional material to educate technical and non-technical
      personnel in IT.  Gathers and assembles information pertaining to the
      subject matter, organizes and condenses materials.  May be required to
      teach courses.  Works independently or as part of a team.

    

    Examples
      (not all inclusive):

    Course
      Developer

    Instructor

    Administrative
      Support and Graphics

    Documentation
      Specialist

    Imaging
      Specialist

    Technical
      Writer/Editor

    Information
      Systems Training Specialist

    Knowledge
      Process Specialist

    Knowledge
      Management Computer Specialist

     

    C.7.1.16   JUNIOR
      INFORMATION TECHNOLOGY TRAINING SPECIALIST

     

    

    General
      Description:

    An
      individual who is good at imparting technical information to technical and
      non-technical personnel and is also knowledgeable in IT.  Has
      experience in developing courses and teaching in phases of
      IT.  Demonstrates good oral and written communication
      skills.

    

    General
      Experience:

    Three
      (3)
      years of progressive experience in the field of IT, including one (1) year
      as an
      instructor of various IT disciplines.

    

    Specific
      Experience:

    At
      least
      one (1) year of General Experience is hands-on experience in the development
      and
      performance of training courses in IT, in the discipline specified by an actual
      SOW or SON.

    

    Function:

    Develops
      courses and instructional material to educate technical and non-technical
      personnel in IT.  Gathers and assembles information pertaining to the
      subject matter, organizes and condenses materials.  May be required to
      teach courses.  Works independently or as part of a team.

    

    Examples
      (not all inclusive):

    Junior
      Course Developer

    

    
      
        
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          TIPSS-3
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    Junior
      Instructor

    Junior
      Technical Writer/Editor

    Junior
      Documentation Specialist

    Junior
      Administrative Support and Graphics Specialist

    Junior
      Information Systems Training
      Specialist

    

    Each
      of
      the labor categories below will include a Junior, Mid, and Senior level
      position, which are incorporated into the pricing table contained in Section
      3.0.  The general descriptions for each labor category are included
      below and the requirements for each are:

    

    Senior
–
      At least eight (8) years of progressive experience in the field of IT with
      at
      least four (4) years of specific experience as specified in the actual position
      description or SOW.

    

    Mid
–
At
      least five (5) years of progressive experience in the field of IT with at least
      two (2) years of specific experience as specified in the actual position
      description or SOW.

    

    Junior
–
      At least three (3) years of progressive experience in the field of IT with
      at
      least one (1) years of specific experience as specified in the actual position
      description or SOW.

    

    

    Applications
      Engineer

    

    Analyzes
      functional business applications, studies complex system requirements and
      designs specifications for functional activities.  Develops block
      diagrams and logic flow charts.  Designs software tools and subsystems
      to support software reuse and domain analyses and manages their
      implementation.  Also, translates detailed design into computer
      software.  Tests, debugs, and refines the computer software to produce
      the required product.  Prepares required documentation, including both
      program-level and user-level documentation.  Also, estimates software
      development costs and schedule.  Enhances software to reduce operating
      time or improve efficiency.  Provides technical direction to
      programmers to ensure program deadlines are met.  Senior level
      engineer supervises software configuration management and manages software
      development.

    

    Applications
      Programmer

    

    Analyzes
      functional business applications and design specifications for functional
      activities.  Develops block diagrams and logic flow charts and
      translates detailed design into computer software.  Tests, debugs, and
      refines the computer software to produce the required product. Prepares required
      documentation, including both program-level and user-level
      documentation.  Enhances software to reduce operating time or improve
      efficiency.  Provides technical direction to programmers to ensure
      program deadlines are met.

    

    Application
      Systems Analyst

    

    Provides
      analysis and design of business systems for different applications such as:
      financial, accounting, human resources, and other enterprise systems. Handles
      test scripts and service requirements; works closely with end users on project
      development and implementation.  Specifies the inputs to be accessed
      by the system, design the processing steps, and format the output to meet the
      users’ needs.  Prepares cost-benefit and return-on-investment analyses
      to help management decide whether implementing the proposed system will be
      financially feasible.

    

    Business
      Process Reengineering Specialist

    

    Also,
      applies process improvement and re-engineering methodologies and principles
      to
      conduct process modernization projects.  Responsible for effective
      transitioning of existing project teams and the facilitation of project teams
      in
      the accomplishment of project activities and objectives.  Additional
      duties may include activity and data modeling, developing modern business
      methods, identifying best practices, and creating and assessing performance
      measurements.  Provides group facilitation, interviewing, training,
      and provides additional forms of knowledge transfer. Key coordinator between
      multiple project teams to ensure enterprise-wide integration of reengineering
      efforts.  Senior level supervisors provide daily
      supervision.

    

    
      
        
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    Data
      Architect

    

    Works
      in
      a data warehouse environment, which includes data design, database architecture,
      metadata and repository creation.  Translates business needs into
      long-term architecture solutions.  Defines, designs, and builds
      dimensional databases.  In addition, responsible for developing data
      warehousing blueprints, evaluating hardware and software platforms, and
      integrating systems.  Evaluates the reusability of current data for
      additional analyses, and conducts data cleaning to rid the system of old, unused
      or duplicate data.  Reviews object and data models and the metadata
      repository to structure the data for better management and quicker
      access.

    

    Data
      Security Specialist

    

    Provides
      support to plan, coordinate, and implement the organization’s information
      security.  Provides support for facilitating and helping agencies
      identify their current security infrastructure and define future programs,
      design and implementation of firewall and other related security issues on
      LANs/WANs/MANs.  Operates current security tools available,
      contributes the knowledge of business security practices and procedures,
      different communication protocols, encryption techniques/tools, and current
      Internet/EC technology.  Executes hardware/software firewalls
      tools.

    

    Database
      Analyst/Programmer

    

    Designs,
      implements and maintains moderately complex databases with respect to JCL,
      access methods, access time, device allocation, validation checks, organization,
      protection and security, documentation and statistical
      methods.  Maintains database dictionaries, monitors standards and
      procedures and integration of systems through database design.

    

    Disaster
      Recovery Specialist

    

    Responsible
      for security and integrity of assigned electronic data, data systems, and data
      networks and provides support in the development of a government agencies
      emergency management and business recovery plans.  Contributes
      knowledge of business processes, management structures, technology
      programs/platforms and performs functions pertaining to the agencies business
      risk assessment.  Reviews and develops business recovery
      strategies.  Drafts procedures for identifying failures and invoking
      contingency plans, creates response procedures and identifies communication
      channels.  Communicates with various response teams during testing,
      actual execution of recovery procedures and supports the design, development,
      installation, implementation and administration of backup
      solutions.  Also, makes recommendations to the user community and the
      operations group on system enhancements, designs and administers programs to
      include policies, standards, guidelines, training programs and a viable quality
      assurance process for disaster recovery.

    

    Information
      Engineer

    

    Applies
      business process improvement practices to re-engineer methodologies/principles
      and business process modernization projects.  Should apply as
      appropriate, activity data modeling, transaction flow analysis, and internal
      control and risk analysis, modern business methods and applies performance
      measurement techniques.  Assist in establishing standards for
      information systems procedures.  Develops and applies
      organization-wide information models for use in designing and building
      integrated, shared software and database management
      systems.  Constructs sound, logical business improvement opportunities
      consistent with corporate Information Management guiding principles, cost
      savings, and open system architecture objectives. Senior level supervisors
      provide daily supervision and direction to staff.

    

    Network
      Engineer

    

    Reviews,
      plans, and evaluates network Systems. May troubleshoot network systems and
      recommend improvements to network.  Also, provides
      documentation/project tracking and management reporting, tactical and strategic
      input on overall network planning and related projects.  Senior level
      supervisor leads and directs the staff.

    

    Software
      Developer/Programmer

    

    Develops
      codes, tests, and debugs new software or enhancements to existing
      software.  Performs maintenance on existing software products and
      contributes knowledge of business applications.  Writes programs
      according to specifications needed.  Works with the technical staff to
      understand problems had with software and then resolve them.  Resolves
      customer

    

    
      
        
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    complaints
      with the software and responds to suggestions for improvements and
      enhancements.  Also, assists in the development of software user
      manuals.  Senior level supervisors provide daily supervision and
      direction to staff.

    

    Systems
      Software Engineer

    

    Should
      provide identification/fixing for the problems within existing software,
      design/implementation of new systems, enhances the existing applications and
      participates in analysis, design and new construction of next generation IT
      applications.

    

    Responsible
      for understanding the needs of the customers and the realities of commercially
      available IT products, and creating requirements that will allow implementation
      by the development team and COTS products.  Also, contributes
      knowledge of telecommunications concepts, computer languages, operating systems,
      database/DBMS and applications.

    

    Systems
      Analyst

    

    Analyzes
      and develops computer software possessing a wide range of capabilities,
      including numerous engineering, business, and records management functions.
      Analyzes the information requirements, evaluates analytically and systematically
      problems of workflow, organization, and planning.  Develops plans for
      automated information systems from project inception to
      conclusion.  Analyzes user interfaces, maintain hardware and software
      performance tuning, analyze workload and computer usage, maintain interfaces
      with outside systems, analyze downtimes, analyze proposed system modifications,
      upgrades and new COTS.

    

    Defines
      the problem, and develops system requirements and program specifications, from
      which programmers prepare detailed flow charts, programs, and
      tests.  Shall develop in conjunction with the functional users system
      alternative solutions and then coordinate closely with the programmers to ensure
      proper implementation of program and system specifications.

    

    Senior
      level supervisor provides technical and administrative direction for personnel
      performing software development tasks, including the review of work products
      for
      correctness, adherence to the design concept and to user standards, and for
      progress in accordance with schedules.

    

    Systems
      Architect

    

    Shall
      also, establish system information requirements using the analysis from
      information engineer(s) in the development of enterprise-wide or large-scale
      information systems.

    

    Designs
      architecture to include the software, hardware, and communications to support
      the total requirements as well as provide for present and future
      cross-functional requirements and interfaces.  Ensures that the
      systems are compatible and in compliance with the standards for open systems
      architectures, the Open Systems Interconnection (OSI) and International
      Standards Organization (ISO) reference models, and profiles of standards -
      such
      as Institute of Electrical and Electronic Engineers (IEEE) Open Systems
      Environment (OSE) reference mode and as they apply to the implementation and
      specification of Information Management (IM) solution of the application
      platform, across the application program interface (API), and the external
      environment/software application.  Ensures that the common operating
      environment is TAFIM compliant, evaluates analytically and systematically
      problems of workflows, organization, and plans and develops appropriate
      corrective action.  Senior level supervisor provides daily supervision
      and direction to staff.

    

    Telecommunications
      Engineer

    

    Provides
      support in the translation of business requirements into telecommunications
      requirements, designs and orders.  Also, provides in-depth engineering
      analysis of telecommunications alternatives for government agencies in support
      of their strategic modernization efforts and telecommunications enhancement
      design for medium and large-scale telecommunication
      infrastructures.  Provides interface support to telecommunications end
      users, telecommunications operations personnel, and telecommunications strategic
      program management.

     

    

    
      
        
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    Web
      Designer

    

    Provides
      support in upgrading, maintaining and creating content for agency's web site
      under the guidance of Web Project Manager.  Also, provides day-to-day
      site design, creation, on-the-job training for the development, maintenance,
      and
      updating of Web pages.

    

    
      
        
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    Attachment
      B

    

    Prime
      Contract Flow Down Provisions

    

    The
      following definitions shall apply in interpreting these provisions, except
      where
      the context requires different construction:

    

    "Government"
      shall mean Buyer, "Contracting Officer" shall mean Buyer's procurement
      representative, and "Contractor" shall mean Supplier. The
      above definitions shall apply except for those clauses concerning audit and
      access to records where the Supplier has expressly denied Buyer
      access.

    

    The
      text
      of all FAR clauses referred to in this SOW shall be in effect on the date of
      the
      Buyer’s prime contract with Customer or if no Buyer’s prime contract with
      Customer number is cited, the text shall be in effect on the date of this
      Agreement.  The following FAR clauses are incorporated by reference
      and are made a part of this Agreement with the same force and effect as if
      set
      forth in full text.

    

    Federal
      Acquisition Regulation References (Non Commercial)

    

                  NON
      COMMERCIAL ITEM FAR REFERENCES

    
      
        	
                52.202-1

              	
                2.201

              	
                DEFINITIONS
                  (DEC 2001)

              
	
                52.203-3

              	
                3.202

              	
                GRATUITIES
                  (APR 1984)

              
	
                52.203-5

              	
                3.404

              	
                COVENANT
                  AGAINST CONTINGENT FEES (APR 1984)

              
	
                52.203-6

              	
                3.503-2

              	
                RESTRICTIONS
                  ON SUBCONTRACTOR SALES TO THE GOVERNMENT (JUL 1995)

              
	
                52.203-7

              	
                3.502-3

              	
                ANTI-KICKBACK
                  PROCEDURES (JUL 1995)

              
	
                52.203-8

              	
                3.104-9(a)

              	
                CANCELLATION,
                  RESCISSION, AND RECOVERY

              
	 	 	
                OF
                  FUNDS FOR ILLEGAL OR IMPROPER ACTIVITY (JAN 1997)

              
	
                52.203-10

              	
                3.104-9(b)

              	
                PRICE
                  OR FEE ADJUSTMENT FOR ILLEGAL OR IMPROPER ACTIVITY (JAN
                  1997)

              
	
                52.203-12

              	
                3.808(b)

              	
                LIMITATION
                  ON PAYMENTS TO INFLUENCE CERTAIN FEDERAL TRANSACTIONS (JUN
                  2003)

              
	
                52.204-4

              	
                4.304

              	
                PRINTED
                  OR COPIED DOUBLE-SIDED ON RECYCLED PAPER (AUG 2000)

              
	
                52.204-7

              	
                4.1104

              	
                CENTRAL
                  CONTRACTOR REGISTRATION (OCT 2003)

              
	
                52.209-6

              	
                9.409(b)

              	
                PROTECTING
                  THE GOVERNMENT'S INTEREST WHEN SUBCONTRACTING WITH CONTRACTORS
                  DEBARRED,
                  SUSPENDED, OR PROPOSED FOR DEBARMENT (JUL 1995)

              
	
                52.211-5

              	
                11.304

              	
                MATERIAL
                  REQUIREMENTS (AUG 2000)

              
	
                52.215-2

              	
                15.209(b)

              	
                AUDIT
                  AND RECORDS--NEGOTIATION (JUN 1999)

              
	
                52.215-8

              	
                15.209(h)

              	
                ORDER
                  OF PRECEDENCE--UNIFORM CONTRACT FORMAT (OCT 1997)

              
	
                52.215-10

              	
                15.408(b)

              	
                PRICE
                  REDUCTION FOR DEFECTIVE COST OR PRICING DATA (OCT 1997)

              
	
                52.215-12

              	
                15.408(d)

              	
                SUBCONTRACTOR
                  COST OR PRICING DATA (OCT 1997)

              
	
                52.215-14

              	
                15.408(f)(1)

              	
                INTEGRITY
                  OF UNIT PRICES (OCT 1997)

              
	
                52.215-15

              	
                15.408(g)

              	
                PENSION
                  ADJUSTMENTS AND ASSET REVERSIONS (JAN 2004)

              
	
                52.215-18

              	
                15.408(j

              	
                REVERSION
                  OR ADJUSTMENT OF PLANS FOR POSTRETIREMENT BENEFITS (PRB) OTHER
                  THAN
                  PENSIONS (OCT 1997)

              
	
                52.215-21

              	
                15.408(m)

              	
                REQUIREMENTS
                  FOR COST OR PRICING DATA OR INFORMATION OTHER THAN COST OR PRICING
                  DATA -
                  MODIFICATIONS (OCT 1997)

              
	
                52.216-716.307(a)

              	 	
                ALLOWABLE
                  COST AND PAYMENT (DEC 2002)

              

      

       

       

      
        
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            Release: 05/01 - Revision: 4/04

          
          

        

        
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          TIPSS-3
            Federal Statement of Work

        

      

       

       

      
        	
                52.216-8

              	
                16.307(b)

              	
                FIXED
                  FEE (MAR 1997)

              	 
	
                52.216-26

              	
                16.603-4(c)

              	
                PAYMENTS
                  OF ALLOWABLE COSTS BEFORE DEFINITIZATION (DEC 2002)

              	 
	
                52.219-3

              	
                19.1308(a)

              	
                NOTICE
                  OF TOTAL HUBZONE SET-ASIDE  (JAN 1999) (APPLIES TO HUBZONE
                  SET-ASIDE ONLY)

              	 
	
                52.219-4

              	
                19.1308(b)

              	
                NOTICE
                  OF PRICE EVALUATION PREFERENCE FOR HUBZONE SMALL BUSINESS CONCERNS(JAN
                  1999)

              	 
	
                52.219-7

              	
                19.508(d)

              	
                NOTICE
                  OF PARTIAL SMALL BUSINESS SET-ASIDE (JUN 2003) (APPLIES TO SMALL
                  BUSINESS
                  SET-ASIDE ONLY)

              	 
	
                52.219-8

              	
                19.708(a)

              	
                UTILIZATION
                  OF SMALL BUSINESS CONCERNS  (OCT 2000)

              	 
	
                52.219-9

              	
                19.708(b)(1)

              	
                SMALL
                  BUSINESS SUBCONTRACTING PLAN (JAN 2002) and ALTERNATE II (OCT
                  2001)

              	 
	
                52.219-14

              	
                19.508(e)
                  or

              	
                LIMITATIONS
                  ON SUBCONTRACTING

              	 
	 	
                19.811-3(e)

              	
                (DEC
                  1996) (APPLIES TO SET-ASIDES ONLY INCLUDING 8(A), HUBZONE, SERVICE
                  DISABLED VETERAN-OWNED, AND SMALL BUSINESS SET-ASIDES OR IN FULL
                  AND OPEN
                  COMPETITION TO SMALL DISADVANTAGED BUSINESSES (SDBS) OR HUBZONE
                  SMALL
                  BUSINESSES SUBMITTING PROPOSALS AS PRIME CONTRACTORS AND NOT WAIVING
                  THE
                  PRICE EVALUATION ADJUSTMENT (SDBS) OR THE PRICE EVALUATION PREFERENCE
                  (HUBZONE).)

              	 
	
                52.219-16

              	
                19.708(b)(2)

              	
                LIQUIDATED
                  DAMAGES—SUBCONTRACTING PLAN (JAN 1999)

              	 
	
                52.219-27

              	
                19.1407

              	
                NOTICE
                  OF TOTAL SERVICE-DISABLED VETERAN-OWNED SMALL BUSINESS SET-ASIDE
                  (MAY
                  2004) (APPLIES TO SERVICE DISABLED VETERAN-OWNED SET-ASIDE
                  ONLY).

              	 
	
                52.222-3

              	
                22.202

              	
                CONVICT
                  LABOR (JUN 2003)

              	 
	
                52.222-4

              	
                22.305

              	
                CONTRACT
                  WORK HOURS AND SAFETY STANDARDS ACT--OVERTIME COMPENSATION (SEP
                  2000)

              	 
	
                52.222-21

              	
                22.810(a)(1)

              	
                PROHIBITION
                  OF SEGREGATED FACILITIES (FEB 1999)

              	 
	
                52.222-26

              	
                22.810(e)

              	
                EQUAL
                  OPPORTUNITY (APR 2002)

              	 
	
                52.222-35

              	
                22.1310(a)(1)

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

              	 
	
                52.222-36

              	
                22.1408(a)

              	
                AFFIRMATIVE
                  ACTION FOR WORKERS WITH DISABILITIES (JUN 1998)

              	 
	
                52.222-37

              	
                22.1310(b)

              	
                EMPLOYMENT
                  REPORTS ON SPECIAL DISABLED VETERANS, VETERANS OF THE VIETNAM ERA
                  AND
                  OTHER ELIGIBLE VETERANS (DEC 2001)

              	 
	
                52.222-48

              	
                22.1006(e)(1)

              	
                EXEMPTION
                  FROM APPLICATION OF SERVICE CONTRACT ACT PROVISIONS FOR CONTRACTS
                  FOR
                  MAINTENANCE, CALIBRATION, AND/OR REPAIR OF CERTAIN INFORMATION
                  TECHNOLOGY,
                  SCIENTIFIC AND MEDICAL AND/OR OFFICE AND BUSINESS EQUIPMENT – CONTRACTOR
                  CERTIFICATION

              	 
	
                52.223-5

              	
                23.1005

              	
                POLLUTION
                  PREVENTION AND RIGHT-TO-KNOW INFORMATION (AUG 2003)

              	 
	
                52.223-6

              	
                23.505

              	
                DRUG-FREE
                  WORKPLACE (MAY 2001)

              	 
	
                52.223-10

              	
                23.705

              	
                WASTE
                  REDUCTION PROGRAMS (AUG 2000)

              	 
	
                52.223-14

              	
                23.906(b)

              	
                TOXIC
                  CHEMICAL RELEASE REPORTING (AUG 2003)

              	 
	
                52.224-1

              	
                24.104(a)

              	
                PRIVACY
                  ACT NOTIFICATION (APR 1984)

              	 
	
                52.224-2

              	
                24.104(b)

              	
                PRIVACY
                  ACT (APR 1984)

              	 
	
                52.225-1

              	
                25.1101(a)(1)

              	
                BUY
                  AMERICAN ACT – SUPPLIES (JUN 2003)

              	 
	
                52.225-8

              	
                25.1101(e)

              	
                DUTY-FREE
                  ENTRY (FEB 2000)

              	 
	
                52.225-13

              	
                25.1103(a)

              	
                RESTRICTIONS
                  ON CERTAIN FOREIGN PURCHASES (DEC 2003)

              	 
	
                52.227-1

              	
                27.201-2(a)

              	
                AUTHORIZATION
                  AND CONSENT (JUL 1995)

              	 
	
                52.227-2

              	
                27.202-2

              	
                NOTICE
                  AND ASSISTANCE REGARDING PATENT AND COPYRIGHT INFRINGEMENT (AUG
                  1996)

              	 
	
                52.227-3

              	
                27.203-1(b)

              	
                PATENT
                  INDEMNITY (APR 1984)

              	 
	 	
                27.203-2(a)

              	 	 

      

       

       

      
        
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            Release: 05/01 - Revision: 4/04

          
          

        

        
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            --

          
            

          

        

        
          
          

          TIPSS-3
            Federal Statement of Work

        

      

      
 

      
        	 	
                27.203-4(a)(2)

              	 	 
	
                52.227-14

              	
                27.409(a)(c)(d)&(f)

              	
                RIGHTS
                  IN DATA--GENERAL (JUN 1987) ALTERNATES I, II, III AND IV

              	 
	
                52.227-16

              	
                27.409(h)

              	
                ADDITIONAL
                  DATA REQUIREMENTS (JUN 1987)

              	 
	
                52.227-17

              	
                27.409(i)

              	
                RIGHTS
                  IN DATA – SPECIAL WORKS (JUN 1987)

              	 
	
                52.227-19

              	
                27.409(k)

              	
                COMMERCIAL
                  COMPUTER SOFTWARE –RESTRICTED RIGHTS (JUN 1987)

              	
                 

              
	
                52.227-23

              	
                27.409(s)

              	
                RIGHTS
                  TO PROPOSAL DATA (TECHNICAL) (JUN 1987)

              	 
	
                52.228-5

              	
                28.310

              	
                INSURANCE
                  – WORK ON A GOVERNMENT  INSTALLATION (JAN 1997)

              	
                 

              
	
                52.228-7

              	
                28.311-1

              	
                INSURANCE
                  – LIABILITY TO THIRD PERSONS  (MAR 1996)

              	 
	
                52.229-3

              	
                29.401-3

              	
                FEDERAL,
                  STATE AND LOCAL TAXES (APR 2003)

              	 
	
                52.230-2

              	
                30.201-4(a)

              	
                COST
                  ACCOUNTING STANDARDS (APR 1998)

              	 
	
                52.230-6

              	
                30.201-4(d)(1)

              	
                ADMINISTRATION
                  OF COST ACCOUNTING STANDARDS (NOV 1999)

              	 
	
                52.232-1

              	
                32.111(a)(1)

              	
                PAYMENTS
                  (APR 1984)

              	 
	
                52.232-7

              	
                32.111(b)

              	
                PAYMENTS
                  UNDER TIME-AND-MATERIALS AND LABOR HOUR CONTRACTS (DEC
                  2002)

              	 
	
                52.232-8

              	
                32.111(c)(1)

              	
                DISCOUNTS
                  FOR PROMPT PAYMENT (FEB 2002)

              	 
	
                52.232-9

              	
                32.111(c)(2)

              	
                LIMITATION
                  ON WITHHOLDING OF PAYMENTS (APR 1984)

              	 
	
                52.232-11

              	
                32.111(d)(2)

              	
                EXTRAS
                  (APR 1984)

              	 
	
                52.232-16

              	
                32.502-4(a)

              	
                PROGRESS
                  PAYMENTS (APR 2003) AND

              	 
	 	
                32.502-4(b)

              	
                (ALTERNATE
                  1) (MAR 2000)

              	 
	
                52.232-17

              	
                32.617(a)&(b)

              	
                INTEREST
                  (JUN 1996)

              	 
	
                52.232-18

              	
                32.705-1(a)

              	
                AVAILABILITY
                  OF FUNDS (APR 1984)

              	 
	
                52.232-19

              	
                32.705-1(b)

              	
                AVAILABILITY
                  OF FUNDS FOR THE NEXT FISCAL YEAR (APR 1984)

              	 
	
                52.232-20

              	
                32.705-2(a)

              	
                LIMITATION
                  OF COST (APR 1984)

              	 
	
                52.232-23

              	
                32.806(a)(1)

              	
                ASSIGNMENT
                  OF CLAIMS (JAN 1986)

              	 
	
                52.232-25

              	
                32.908(c)

              	
                PROMPT
                  PAYMENT (OCT 2003) AND ALTERNATE 1 (FEB 2002)

              	 
	
                52.232-33

              	
                32.1110(a)(1)

              	
                PAYMENT
                  BY ELECTRONIC FUNDS TRANSFER – CENTRAL CONTRACTOR REGISTRATION (OCT
                  2003)

              	 
	
                52.232-37

              	
                32.1110(e)

              	
                MULTIPLE
                  PAYMENT ARRANGEMENTS (MAY 1999)

              	 
	
                52.233-1

              	
                33.215

              	
                DISPUTES
                  (JUL 2002) and ALTERNATE 1 (DEC 1991)

              	 
	
                52.233-3

              	
                33.106(b)

              	
                PROTEST
                  AFTER AWARD (AUG 1996)-ALTERNATE I (JUN 1985)

              	 
	
                52.237-2

              	
                37.110(b)

              	
                PROTECTION
                  OF GOVERNMENT BUILDINGS, EQUIPMENT, AND VEGETATION (APR
                  1984)

              	 
	
                52.237-3

              	
                37.110(c)

              	
                CONTINUITY
                  OF SERVICES (JAN 1991)

              	 
	
                52.239-1

              	
                39.107

              	
                PRIVACY
                  OR SECURITY SAFEGUARDS (AUG 1996)

              	 
	
                52.242-1

              	
                42.802

              	
                NOTICE
                  OF INTENT TO DISALLOW COSTS (APR 1984)

              	 
	
                52.242-3

              	
                42.709-6

              	
                PENALTIES
                  FOR UNALLOWABLE COSTS (MAY 2001)

              	 
	
                52.242-13

              	
                42.903

              	
                BANKRUPTCY
                  (JUL 1995)

              	 
	
                52.243-1

              	
                43.205(a)(1)

              	
                CHANGES--FIXED-PRICE
                  (AUG 1987) AND ALTERNATE II (APR 1984)

              	 
	
                52.243-2

              	
                43.205(b)(3)

              	
                CHANGES--COST-REIMBURSEMENT
                  (AUG 1987) --ALTERNATE II (APR 1984)

              	 
	
                52.243-3

              	
                43.205(c)

              	
                CHANGES--TIME-AND-MATERIALS
                  OR LABOR HOURS (SEP 2000)

              	 
	
                52.244-2

              	
                44.204(a)(1)

              	
                SUBCONTRACTS
                  (AUG 1998) AND ALTERNATE II and (2)(ii) (AUG 1998)

              	 
	
                52.244-5

              	
                44.204(c)

              	
                COMPETITION
                  IN SUBCONTRACTING (DEC 1996)

              	 
	
                52.244-6

              	
                44.403

              	
                SUBCONTRACTS
                  FOR COMMERCIAL ITEMS (APR 2003)

              	 
	
                52.245-1

              	
                45.106(a)

              	
                PROPERTY
                  RECORDS (APR 1984)

              	 
	
                52.245-2

              	
                45.106(b)(1)

              	
                GOVERNMENT
                  PROPERTY (FIXED-PRICE

              	 
	 	
                45.106(b)(2)

              	
                CONTRACTS)
                  (MAY 2004) AND ALTERNATE 1 (APR 1984)

              	 
	
                52.245-5

              	
                46.106(f)(1)

              	
                GOVERNMENT
                  PROPERTY (COST-REIMBURSEMENT, TIME-AND-MATERIAL, OR LABOR-HOUR
                  CONTRACTS)
                  (JUN 2003)

              	 
	
                52.245-19

              	
                45.308-2

              	
                GOVERNMENT
                  PROPERTY FURNISHED “AS IS” (APR 1984)

              	 
	
                52.246-20

              	
                46.710(d)

              	
                WARRANTY
                  OF SERVICES (MAY 2001)

              	 
	
                52.246-23

              	
                46.805

              	
                LIMITATION
                  OF LIABILITY (FEB 1997)

              	 
	
                52.246-25

              	
                46.805

              	
                LIMITATION
                  OF LIABILITY--SERVICES (FEB 1997)

              	 
	
                52.247-17

              	
                47.207-6(a)(2)

              	
                CHARGES
                  (APR 1984)

              	 

      

       

       

      
        
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            Release: 05/01 - Revision: 4/04

          
          

        

        
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            23
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          TIPSS-3
            Federal Statement of Work

        

      

       

       

      
        	
                52.248-1

              	
                48.201

              	
                VALUE
                  ENGINEERING (MAR 1989)

              	 
	
                52.249-1

              	
                49.502(a)(1)

              	
                TERMINATION
                  FOR CONVENIENCE OF THE GOVERNMENT (FIXED-PRICE)(SHORT FORM) (APR
                  1984)

              	 
	
                52.249-2

              	
                49.502(b)(1)(i)

              	
                TERMINATION
                  FOR CONVENIENCE OF THE GOVERNMENT (FIXED PRICE) (SEP 1996)

              	 
	
                52.249-4

              	
                49.502(c)

              	
                TERMINATION
                  FOR CONVENIENCE OF THE GOVERNMENT (SERVICES) (SHORT FORM) (APR
                  1984)

              	 
	
                52.249-6

              	
                49.503(a)(1)

              	
                TERMINATION
                  (COST-REIMBURSEMENT) (SEP 1996) AND ALTERNATE IV (SEP
                  1996)

              	 
	
                52.249-8

              	
                49.504(a)(1)

              	
                DEFAULT
                  (FIXED-PRICE SUPPLY AND SERVICE) (APR 1984)

              	 
	
                52.249-14

              	
                49.505(d)

              	
                EXCUSABLE
                  DELAYS (APR 1984)

              	 
	
                52.251-1

              	
                51.107

              	
                GOVERNMENT
                  SUPPLY SOURCES (APR 1984)

              	 
	
                52.253-1

              	
                53.111

              	
                COMPUTER
                  GENERATED FORMS (JAN 1991)

              	 

      

    

     

     

    C.4.6            
      ACCESS TO GOVERNMENT PROPERTY AND FACILITIES

     

    

    The
      Treasury Department Publication (TDP) 71-10, Department of the Treasury Security
      Manual, Chapter II, Section 2, Investigative Requirements for Contract Employees
      established requirements for security screening of contract
      employees.  The Internal Revenue Manual 1.23.2, Security
      Investigations, Contractor Investigations established the procedures and
      guidelines for the conduct of security investigations on contractor
      employees.

    

    Portions
      of the effort required under this contract may be performed at Government
      facilities specified in Section F.4, Place of Performance, as well as at other
      Department of the Treasury, Internal Revenue Service (IRS), and other federal
      agencies.   Contractor personnel will be required to pass a
      background investigation to receive security access and contractor badge (as
      local practice dictates) to enter an IRS or other federal
      facility.  Contractor personnel shall adhere to local security and
      identification practices.  This requirement will be invoked, as
      required, in individual task orders.  Additional security requirements
      are task order dependent and will be clearly noted in each awarded task
      order.  (See Sections H.31 through H.39 for clauses

    pertaining
      to security screening, identification/badging, disclosure of information, and
      systems access requirements).

    

    In
      accordance with TDP 71-10, Chapter II, Section 2, IRS shall weigh potential
      risks and magnitude of loss or harm that could be caused by contractor employees
      and determine risk levels.

    

    The
      Contractor may receive sensitive, but unclassified data or have access, use
      or
      operation of IRS information technology systems.  Therefore, the
      position of risk for this contract would be moderate and require a Minimum
      Background Investigation (MBI).  The MBI will include, but not be
      limited to: favorable review of the SF-85P, law enforcement checks, FBI
      fingerprint and name checks, and federal tax record checks.

    

    In
      order
      to obtain required background investigations, the Contractor shall require
      their
      Corporate-level Key Management Personnel to complete and submit the following
      documents to the Lead COTR for processing through IRS National Background
      Investigations Center (NBIC):

    

    
      	
               

            	
              ·

            	
              SF-85P,
                Questionnaire for Public Trust
                Positions

            

    

    
      	
               

            	
              ·

            	
              Form
                13340, Fair Credit Reporting Act Credit
                Release

            

    

    
      	
               

            	
              ·

            	
              Form
                PD-70, Metropolitan Police Department, Washington D.C. Criminal History
                Request (For individuals who have worked, lived or attended school
                in the
                Washington, DC Metropolitan area within the last five
                years)

            

    

    
      	
               

            	
              ·

            	
              Form
                FD-258, Federal Bureau of Investigation Applicant Fingerprint
                Card

            

    

    
      	
               

            	
              ·

            	
              Form
                I-9, Employment Eligibility Verification (Copy of form already maintained
                on file by contractor employees’ employer is
                acceptable)

            

    

    
      
        	
                 

              	
                ·

              	
                Form
                  DD-214 (Furnish for all active military service in last five
                  years).

              

      

    

     

    

    
      
        
          Form
            Release: 05/01 - Revision: 4/04

          
          

        

        
          --
            24
            --

          
            

          

        

        
          
          

          TIPSS-3
            Federal Statement of Work

        

      

    

    

    

    Corporate-level
      Key Management Personnel are required to submit MBI information within ten
      (10)
      calendar days after contract award as they will be active on the contract and
      task orders at all times. The IRS will send the background investigation checks
      through the IRS National Background Investigations Center (NBIC).  If
      required, task level personnel shall submit MBI information before they start
      work on a task.  If an individual is hired by a Contractor after
      previously working at the IRS for another Contractor, the Lead COTR is still
      required to verify a previous MBI was actually completed, that it is current,
      and that the person remains acceptable.   The NBIC will make the
      determination whether to perform an update, a new complete MBI or to accept
      the
      current investigation results.  The Contractor will be notified
      accordingly.

    

    Contractor
      personnel will be provided escort access during the time required to process
      and
      obtain interim or final staff-like access approvals.  Interim access
      approvals generally take 5-7 days from NBIC receipt of acceptable investigation
      paperwork

    

    Contractor
      employees will be required to be fingerprinted and arrangements for
      fingerprinting can be made through the Lead COTR when the employee has
      accessibility to a local IRS office.  However, if the employee cannot
      come to an IRS office to be fingerprinted, employees may need to go to a local
      law enforcement agency for fingerprinting.  Fingerprints must be
      completed on the form FD-258 furnished by the IRS.  Any cost for
      fingerprinting outside of the IRS shall be borne by the Contractor.

    

    If
      the
      Lead COTR receives a denial of access from NBIC after processing of the above
      forms, or if the Lead COTR finds a prospective employee to be unsuitable or
      unfit for his assigned duties, the Contractor shall be advised immediately
      in
      writing.  The employee in question shall not continue to work or be
      assigned to work under the contract.  The IRS shall have and exercise
      full and complete control over the granting, denying, withholding or terminating
      access for contractor employees.  The IRS may, as it deems
      appropriate, authorize and grant interim staff-like access to any such employees
      of the Contractor.  However, the granting of an interim staff-like
      access to any such employee shall not be considered as assurance that final
      staff-like access will follow as a result or condition thereof.  The
      granting of either interim or final staff-like access shall in no way prevent,
      preclude or bar the withdrawal or termination of any such access by the
      Government.

    

    All
      Contractor and Subcontractor employees shall either be U.S. citizens or have
      lawful permanent resident status.  The IRS may require the Contractor
      to submit the investigation forms for every employee covered by this paragraph
      on a five year basis for reinvestigation.

    

    The
      Government shall absorb the cost of any and all background investigations.
      No
      fee shall be levied to the Contractor or Subcontractor for any investigation
      costs.

    

    Upon
      contract award, all required forms for security background investigations will
      be made available to successful offerors via a web site.

    

    
      	
              C.4.7

            	
              REASSIGNMENT
                AND REPLACEMENT OF CONTRACTOR
                PERSONNEL

            

    

    

    The
      Government reserves the right to request immediate removal of Contractor
      personnel for cause.  The Contractor shall replace the personnel in
      question within fifteen (15) working days.

    

    The
      Government reserves the right to request reassignment of Contractor
      personnel.  Discussions will be held with the contractor concerning
      specific issues.  If issues still remain, the Contracting Officer
      reserves the right to request permanent reassignment of

    contractor
      personnel.  The Contractor shall replace the personnel within fifteen
      (15) working days.

    

    In
      cases
      of Contractor initiated reassignment of personnel, notice shall be provided
      at
      least fifteen (15) working days prior to reassignment.  This written
      notice shall also include the résumé(s) of the proposed replacement personnel
      (see Section H.20 Substitution of Key Management Personnel and Section H.22
      Substitution of Task Order Key Personnel).  All
      replacement personnel are subject to the prior written approval of the
      Contracting Officer.  In the event the Contractor finds it necessary
      to replace any of the assigned personnel during the performance of a task order,
      the Contracting Officer (CO) and Contracting Officer's Technical Representative
      (COTR) shall be notified in writing.

    

    
      
        
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              C.4.13

            	
              COMPLIANCE
                TO CAPABILITY MATURITY MODEL
                INTEGRATION
                (CMMI
                sm
                )
                STANDARDS

            

    

    

    It
      is
      mandatory that all Contractors who are awarded task orders for any activity
      related to software development for the IRS comply with the IRS policy for
      CMMIsm
      compliance.  All tasks that fall within the software development life
      cycle shall comply with the staged representation of the CMMI
      requirement.  There are no exceptions to this IRS
      policy.  This policy, as relates to IRS, is contained in Section J,
      Attachment J.8 Internal Revenue Service Capability Maturity Model
      Integration CMMIsm
      Requirements and
      Instructions.

    

    Contractors
      who identify specific Subcontractor(s) as integral to the performance of
      software development work, shall obtain evidence that the Subcontractor(s)
      identified are CMMI Level 2 compliant, or alternatively, shall arrange for
      any
      software development work done by the Subcontractor to be performed within
      the
      Contractor's CMMI Level 2 processes.  It shall be the responsibility
      of the Contractor to ensure that its Subcontractors perform software development
      work within a CMMI Level 2 compliant process.  Contractors developing
      software for the IRS shall maintain Level 2 or higher in the staged
      representation of the CMMI in order to continue to receive software
      tasking.  The CMMI Review Team will monitor Contractor process
      maturity:

    

    (a)
      Using
      standard IRS Process Appraisal Review Methodology (PARM) processes, including
      execution of Standard CMMI Appraisal Method for Process
      Improvement (SCAMPISM), as
      needed,

    

    (b)  Performing
      annual cycles of review for CMMI, and

    

    (c)  Considering
      all types of appraisal data and process improvement infrastructure data
      as
      standardized by the IRS PARM process.

    

    Contractors
      that receive awards in any task area as a large business (competitive process)
      shall provide evidence of CMMI level 2 rating by November 29,
      2004.  Small Business, Hub-Zone and Small Disadvantage Businesses
      section 8(a) shall provide evidence of their CMMI Level 2 rating prior to
      receiving any work for software development.

    

    H.6                      RELEASE
      OF CLAIMS

    

    After
      completing each task order, and prior to final payment, the Contractor shall
      furnish to the Contracting Officer, a release of claims against any outstanding
      balances or claims arising out of the task order.  These are claims
      other than those specifically resulting from work that is reasonably anticipated
      by the Contractor when originally estimating the order.

    

    

    H.9                      INDIRECT
      RATE CHANGE NOTIFICATION

    

    The
      Contractor shall submit notification to the TIPSS Contracting Officer and Lead
      Contracting Officer’s Technical Representative within five working days of
      proposing any rate change to the designated Government audit agency, or of
      receiving any rate change approval, affecting cost or price proposed or incurred
      under this contract.  The Contractor agrees to insert this
      notification requirement in all first-tier subcontracts.

    

    

    

    H.10         PRODUCTIVE
      DIRECT
      LABOR HOURS

    

    "Productive
      direct labor hours" are those hours expended by Contractor personnel in
      performing work under this contract and called for in the task orders issued
      under the contract.  This does not include sick leave, vacation,
      holidays, jury duty, military leave, or any other kind of administrative leave
      period.

    

    
      
        
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    H.11          
STANDARD
      WORK
      DAY

    

    A
      standard work day is defined as any eight (8) hours of productive labor during
      the core business hours of 7 A.M. through 6 P.M., Monday through Friday,
      excluding periods listed above. Performance may be required beyond the normal
      standard work day and if so will be specified within the applicable task
      order.

    

    
      	
              H.13

            	
              CONTRACTOR
                RESPONSIBILITY FOR ASSIGNED SPACE, EQUIPMENT AND
                SUPPLIES

            

    

    

    If,
      due
      to the fault or neglect of the Contractor, his agents, or employees, damage
      occurs to any Government property, equipment, stock or supplies, during the
      performance of this contract, the Contractor shall be responsible for such
      loss
      or damage and the Government, at its option, may either require the Contractor
      to replace all property or to reimburse the Government for the full value of
      the
      lost or damaged property.

    

    The
      Contractor is responsible for maintaining all Government provided assigned
      space(s) in a clean and orderly fashion during the course of this
      contract.

    All
      telephones at the Government’s site are for conducting official Government
      business only.

    

    
      	
              H.15

            	
              ORGANIZATIONAL
                CONFLICT OF INTEREST AND LIMITATION ON
                FUTURE CONTRACTING

            

    

    

    The
      following provisions are in accordance with FAR subpart 9.5:

    

    (a)  The
      Internal Revenue Service, including any echelon or sub-echelon activity of
      the
      Department of the Treasury, will not consider the Contractor, its
      successor-in-interest, assignee, or affiliates as a prime source of supply
      for,
      nor allow it to be a Subcontractor or consultant to a supplier for, any
      follow-on procurement of a system, subsystem, or major component thereof,
      including training related thereto, for which the Contractor provides technical
      support services, analyses, system design and evaluation or other types of
      assistance ordered under this contract.  For examples of a follow-on
      procurement, see FAR subsection 9.508. These examples are not all inclusive,
      but
      are intended to help the Contracting Officer apply the general rules in FAR
      subsection 9.505 to individual contract situations.

    

    (b)  The
      above restrictions shall be included in all subcontracts, teaming arrangements,
      and other agreements calling for performance of work related to this contract,
      unless exempted in writing by the Contracting Officer.

    

    (c)  To
      prevent unfair competitive advantage in the procurement of any similar Federal
      Information Technologies (IT) support services which are the subject of this
      contract, the Contractor agrees that, until award of a contract by the Internal
      Revenue Service for any of these services it:  (1) shall not disclose
      any information concerning the work under this contract, including technology
      developed or findings and conclusions rendered by the Contractor in performing
      this contract, to any prospective Offeror; and (2) shall not render any services
      of any kind related to this procurement to any prospective Offeror.

    

    (d)  If,
      by task order under this contract, the Contractor is required to prepare a
      statement of work or to design or develop specifications/requirements which
      are
      to be incorporated or used in a solicitation for future acquisition of a system,
      subsystem, or major component thereof relating to the subject matter of this
      contract, the Department of the Treasury, including any echelon or sub-echelon
      activity, will not consider the

    Contractor,
      its successor-in-interest, assignee, or affiliates as a prime source of supply
      for, nor allow it to be a Subcontractor or consultant to a supplier for the
      procurement of

    the
      system, subsystem, or major component thereof.  The Contractor,
      Subcontractors and consultants at any tier have an affirmative duty to disclose
      to the CO actual, potential or apparent conflicts whenever there is reason
      to
      believe such exist or will exist.

    

    

    

    
      
        
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    (e)  The
      restrictions and provisions of paragraph (d), above, shall be in effect for
      a
      period of two (2) years from the performance completion date of any task
      order.  At any time subsequent to the effective date of this contract,
      the Government may either modify the restrictions of paragraphs (c), and (d),
      or
      waive the restrictions entirely if it is determined to be in the best interests
      of the Government.  The restrictions contained herein do not in any
      way limit the restrictions delineated in FAR subpart 9.5.

    

    

    H.16                       OBSERVANCE
      OF LEGAL HOLIDAYS AND EXCUSED ABSENCE

    

    (a)  Government
      personnel observe the following holidays:

    

           New
      Year's Day

           Martin
      Luther King Birthday

           President's
      Birthday

           Memorial
      Day

           Independence
      Day

           Labor
      Day

           Columbus
      Day

           Veteran's
      Day

           Thanksgiving
      Day

           Christmas

    

    (b)  In
      addition to the days designated as holidays, the Government observes the
following
      days:

    

           Any
      other day designated by Federal Statute

           Any
      other day designated by Executive Order

           Any
      other day designated by the President's Proclamation

    

    (c)  It
      is understood and agreed between the Government and the Contractor that
      observance of such days by Government personnel shall not otherwise be a reason
      for an additional period of performance, or entitlement of compensation except
      as set forth within the contract.  In the event the Contractor's
      personnel work during the holiday, they may be reimbursed by the Contractor,
      however, no form of holiday or other premium compensation will be reimbursed
      either as a direct or indirect cost, other than their normal compensation for
      the time worked.  This provision does not preclude reimbursement for
      authorized overtime work if applicable to this contract.

    

    (d)  When
      the Government grants excused absence to its employees, assigned Contractor
      personnel may also be dismissed.  The Contractor agrees to continue to
      provide sufficient personnel to perform critical tasks already in operation
      or
      scheduled, and shall be guided by the instructions issued by the Contracting
      Officer or the Contracting Officer’s Technical Representative.

     

    

    

    H.18                          PUBLICITY

    

    Publicity
      releases in connection with this contract shall not be made by the Contractor
      unless prior written approval has been received from the Contracting
      Officer.

     

    

    

    H.25                           PERSONNEL
      ACCESS

    

    Contractor
      personnel requiring access to Government sites will be subject to security
      clearance procedures set forth in the contract (See Section H.31, Security
      Screening Requirements and Section C.4.6, Access to Government Property and
      Facilities).

    

    
      
        
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    H.30                              GENERAL
      LIABILITY

    

    Reference
      Section I - Clause 52.228-7, "Insurance - Liability to Third
      Persons".  The Contractor shall secure, pay the premiums for and keep
      in force until the expiration of this contract, and any renewal thereof,
      adequate insurance as provided below, such insurance to specifically include
      liability assumed by the Contractor under this contract.

    

    (a)  The
      Contractor is required to show evidence of bodily injury liability insurance
      coverage written on the comprehensive form of policy of at least $500,000 per
      occurrence.

    

    (b)  The
      Contractor is required to show evidence of property damage liability insurance
      coverage written on the comprehensive form of policy of at least $100,000 per
      occurrence.

    

    (c)  Workman's
      compensation insurance as required by law of the State.

    

    Each
      policy of insurance shall contain an endorsement that any cancellation or
      material change in the coverage adversely affecting the Government's interest
      shall not be effective unless the insurer or the Contractor gives written notice
      of cancellation or change, as required by the Contracting Officer
      (CO).  A certificate of each policy of insurance shall be furnished to
      the CO with ten (10) days after notice of award certifying, among other things,
      that the policy contains the aforementioned endorsement.

    

    The
      insurance company providing the above insurance shall be satisfactory to the
      Government.  Notices of policy changes shall be furnished to the
      CO.  The substances of this clause shall be made to flow down to any
      Subcontractors.

     

    

    

       H.31                                IRSAP
      1052.204-9000 SECURITY SCREENING REQUIREMENTS (MAR
      1998)

    

    Security
      Screening Requirement for Access to Sensitive but Unclassified Systems or
      Information A Background Screening will be conducted by the IRS, when applicable
      to work under a Task Order.  Background Screening requirements
      include:

    

    (a)
      a
      Security Investigation Index Search of National Agencies; (b) Criminal record
      checks covering a five year period of residency and employment; (c) a credit
      check; and (d) employment and reference vouchers.

    

    (a)  General:  Contractor
      personnel who will be granted staff-like access to IRS facilities, Information
      Systems, Security Information, Strategic Business Systems or Sensitive IRS
      information Systems, will be required to undergo a Security Screening
      Investigation (SSI) unless a Task Order specifies elsewhere that another type
      of
      investigation is more suitable to the circumstances.   Any
      Contractor employee who is required to have an investigation shall not be
      permitted to work on this contract without the required
      investigation.  Access to IRS facilities, information systems,
      security items and products, and sensitive but unclassified information may
      be
      denied or revoked by the IRS based upon unsanctioned, negligent or willful
      action on the part of the Contractor or the Contractor's employees.

    

    Prior
      to
      beginning any work under a task order, all identified Contractor employee(s)
      will undergo a security screening (which ranges from minimal checks to a full
      Background Investigation).  Upon favorable completion of the security
      screening, the Contractor employee(s) will be permitted staff-like access to
      IRS
      facilities, systems, information and/or data, as applicable to task order
      performance.  Investigations which reveal derogatory information about
      a Contractor employee, including, but not limited to conviction of a felony,
      a
      crime of violence or a serious misdemeanor; and a record of arrests for
      continuing offenses, may be sufficient cause to deny or revoke staff-like access
      for that employee under the Task Order.

    

    Individual
      security clearances by the Defense Security Service (DSS, formerly known as
      DISCO), a clearance granted or an investigation approved by the Department
      of
      the Treasury, another Treasury bureau, or another federal agency, may be
      acceptable in lieu of a new investigation.  Determination of
      acceptability of non-IRS clearance or investigation will be made by the IRS
      Inspection Office.  To verify the acceptability of a non-IRS,
      favorable investigation, the Contractor shall submit the forms or information
      needed, according to instructions provided by the Contracting Officer’s
      Technical

    

    
      
        
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    Representative
      (COTR).

    

    At
      the
      Government's discretion, the Contractor's personnel may be permitted to have
      escort access in lieu of an investigation, or while an investigation is in
      process.  In these circumstances, the COTR will notify the Contractor
      of the names of the individuals who are being granted such access, and if other
      conditions on access may apply.

    

    (b)  Definitions:

    

    
      	
               

            	
              (1)

            	
              Staff-like
                Access.  Unescorted access to Treasury owned or controlled
                facilities, information systems, security items and products (as
                determined by Treasury or IRS officials), and/or sensitive but
                unclassified information by Contractor
                personnel.

            

    

    

    
      	
               

            	
              (2)

            	
               

            	
              Lawful
                Permanent Resident.  Any individual who is not a citizen or
                national of the United States (U.S.) who has been lawfully admitted
                into the U.S. and accorded the privilege of residing permanently
                in the
                U.S. as an immigrant in accordance with the immigration laws, such
                status
                not having changed.

            

    

     

     (c)  Citizenship-related
      requirements:  Every Contractor employee working on the sensitive
      applications of task orders shall satisfy at least one of the following
      requirements:  (1) be a U.S. citizen; or (2) be a lawful permanent
      resident of the U.S.

    

    (d)  Approval
      process:  Within 10 ten calendar days after contract award, issuance
      of a Task Order, or other award notice by the Contracting Officer, as
      applicable, the Contractor shall provide the Contracting Officer a list of
      names
      of all applicable Contractor employees (including: Social Security numbers;
      date
      of birth; place of birth; and the IRS location(s) for which access is requested)
      who will undergo investigations.  For Contractor employees who have a
      valid DSS (formerly known as DISCO) clearance, the Contractor shall submit
      a
      copy of DSS Form 560, Letter of Consent.  If the Form 560 is not
      available, contact the Contracting Officer for instructions on information
      that
      can be submitted to verify validity of the clearance.  To obtain an
      investigation, the Contractor shall submit the forms or information needed
      for
      requesting investigations, according to instructions provided by the Contracting
      Officer.  Completed forms shall be returned to the Contracting Officer
      by a date acceptable to the Contracting Officer.  The investigation
      process shall consist of a range of personal background inquiries and contacts
      (written and personal) pertaining to verification of the information provided
      on
      the security forms.  Upon completion of the investigation process, the
      COTR, after consultation with the appropriate IRS officials, shall notify the
      Contractor in writing of the individual's eligibility or ineligibility to work
      on the task order.  The Contractor is responsible for ensuring that
      such investigations are requested as necessary for the performance of task
      orders.  Additionally, the Contracting Officer shall provide a notice
      in writing to the employee of the general nature of the adverse information
      that
      formed the basis for the decision.  If Contractor personnel will be
      working on-site in any IRS office, the Contractor shall comply with the
      requirements of the Clearance of Personnel clause, and obtain building passes
      for those personnel.

    

    (e)  Adverse
      Information and Revocation of Access:  A Contractor employee on whom
      unfavorable or derogatory information has been developed during a background
      investigation must be confronted with the information and offered an opportunity
      to refute, explain, clarify or mitigate the information in
      question.  However, if after final adjudication, a determination is
      made to deny or revoke staff-like access to the employee, that person will
      be
      formally notified and informed of the decision and the reason(s).  The
      decision to deny or revoke access is not intended to imply that the Contractor
      employee is otherwise unsuitable for employment by the
      Contractor.  Adverse information developed in these background
      investigations shall not be released by the IRS to the
      Contractor.  The IRS Personnel Security Officers determination to deny
      or revoke Contractor employee access is final, as Treasury guidelines do not
      provide for an appeal of such determination.

    

    (f)  Nondisclosure
      agreement:  The Contractor shall require that any employees who may
      have access to the information systems identified in contract or task order
      specifications sign a nondisclosure agreement.

    These
      agreements shall be signed by the employees before they are assigned to a task
      order and shall be maintained in the Government contract file for a period
      of
      three years after final payment under the task order.  A sample
      agreement is provided as an attachment in Section J.11, TIPSS Conditional Access
      to Sensitive But Unclassified Information Non-Disclosure Agreement of the
      contract.

    

    (g)  Nondisclosure
      of information:  Neither the Contractor nor any of its employees shall
      inspect, divulge, or release data or information developed or obtained during
      performance of the Task Orders, except to authorized Government
      personnel

    

    
      
        
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    with
      an
      established need to know or upon written approval of the Contracting
      Officer.  Information contained in all source documents and other
      media provided by IRS are the sole property of IRS.

    

    (h)  Task
      order performance:  If IRS receives disqualifying information on a
      Contractor employee, the Contractor, upon written notice, will immediately
      remove the employee from work on the task order. Contractor employees may be
      barred from working on the task order for failing to meet or maintain the
      suitability standards.  Failure to comply with the terms of this
      clause may result in termination for default.

    

    (i)  Notification:  The
      Contractor shall immediately notify the Lead Contracting Officer’s Technical
      Representative (Lead COTR) in writing (with a copy to the TIPSS Contracting
      Officer) whenever a cleared employee terminates employment or is no longer
      working on the task order.   The Contractor shall also provide
      the information described in paragraph (d) of this clause for those employees
      who may be reassigned or added to work on a task order during the period of
      performance.

    

    The
      Contractor shall also immediately notify the Contracting Officer of any breach
      or suspected breach of security or any unauthorized disclosure of the
      information contained in the information system specified in the task
      order.

    

    (j)  Subcontracts:  The
      Contractor shall incorporate this clause in all subcontracts, subcontract Task
      or Delivery Orders or other subcontract performance instrument where the
      requirements specified in paragraph (a) of this clause are applicable to
      performance of the subcontract.

     

    

    
      	
              H.34

            	
              IRSAP
                1052.224-9000(c) DISCLOSURE OF INFORMATION SAFEGUARDS (JAN
                l998)

            	 

    

    

    In
      performance of this contract, the Contractor agrees to comply with and assume
      responsibility for compliance by his/her employees with the following
      requirements:

     

    (a)  All
      work shall be performed under the supervision of the Contractor or the
      Contractor's responsible employees.

     

    (b)  Any
      return or return information made available in any format shall be used only
      for
      the purpose of carrying out the provisions of this
      contract.  Information contained in such material shall be treated as
      confidential and shall not be divulged or made known in any manner to any person
      except as may be necessary in the performance of the
      contract.  Inspection by or disclosure to anyone other than an officer
      or employee of the Contractor shall require prior written approval of the
      Internal Revenue Service.  Requests to make such inspections or
      disclosures should be addressed to the IRS Contracting Officer.

     

    (c)  All
      returns and return information will be accounted for upon receipt and properly
      stored before, during, and after processing.  In addition, all related
      output shall be given the same level of protection as required for the source
      material.

     

    (d)  The
      Contractor certifies that the data processed during the performance of this
      contract shall be completely purged from all data storage components of his/her
      computer facility and no output will be retained by the Contractor at the time
      the IRS work is completed.  If immediate purging of all data storage
      components is not possible, the Contractor certifies that any IRS data remaining
      in any storage component will be safeguarded to prevent unauthorized inspection
      or disclosure.

     

    (e)  Any
      spoilage or any intermediate hard copy printout which may result during the
      processing of IRS data shall be given to the IRS Contracting Officer or his/her
      designee. When this is not possible, the Contractor will be responsible for
      the
      destruction of the spoilage or any intermediate hard copy printouts and shall
      provide the IRS Contracting Officer or his/her designee with a statement
      containing the date of destruction, description of material destroyed, and
      the
      method used.

     

    (f)  No
      work involving information furnished under this contract will be subcontracted
      without the specific approval of the IRS Contracting Officer.

     

    

    
      
        
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    (g)  All
      computer systems processing, storing and transmitting tax data must meet or
      exceed computer access protection controls - (C2).  

     

    To
      meet
      C2 requirements, the operating security features of the system must have the
      following minimum requirements: a security policy, accountability, assurance
      and
      documentation.  All security features must be available (object reuse,
      audit trails, identification\ authentication, and discretionary access control)
      and activated to protect against unauthorized use of and access to tax
      information.

     

    

     

    (h)  Should
      a person (Contractor or Subcontractor) or one of his/her employees make any
      unauthorized inspection(s) or disclosure(s) of confidential tax information,
      the
      terms of the Termination (FAR 52.249-6) or Default clause or (52.249-8), as
      applicable, incorporated herein by reference, may be invoked, and the person
      (Contractor or Subcontractor) will be considered to be in breach of this
      contract.

     

    

    
      	
              H.35

            	
              IRSAP
                1052.224-9000(d) DISCLOSURE OF “OFFICIAL USE ONLY” INFORMATION SAFEGUARDS
                (DEC l988)

            	 

    

    

    Any
      Treasury Department Information made available or to which access is provided,
      and which is marked or should be marked "Official Use Only", shall be used
      only
      for the purpose of carrying out the provisions of this contract and shall not
      be
      divulged or made known in any manner to any person except as may be necessary
      in
      the performance of the contract.  Disclosure to anyone other than an
      officer or employee of the Contractor or Subcontractor at any tier shall require
      prior written approval of the IRS.  Requests to make such disclosure
      should be addressed to the IRS Contracting Officer.

    

     

    
      
        	
                H.36

              	IRSAP 1052.224-9001(a) DISCLOSURE OF INFORMATION
                CRIMINAL/CIVIL   SANCTIONS (JAN
                1998)	 

      

    

    
(a) Each
      officer or employee of any person (Contractor or Subcontractor) at any tier
      to
      whom returns or return information is or may be disclosed shall be notified
      in
      writing by the person (Contractor or Subcontractor) that returns or return
      information disclosed to such officer or employee can be used only for a purpose
      and to the extent authorized herein, and that further disclosure of any such
      returns or return information for a purpose or to an extent unauthorized herein
      constitutes a felony punishable upon conviction by a fine of as much as $5,000
      or imprisonment for as long as five years, or both, together with the costs
      of
      prosecution.  Such person (Contractor or Subcontractor) shall also
      notify each such officer and employee that any such unauthorized future
      disclosure of returns or return information may also result in an award of
      civil
      damages against the officer or employee in an amount not less than $1,000 with
      respect to each instance of unauthorized disclosure plus in the case of willful
      disclosure or a disclosure which is the result of gross negligence, punitive
      damages, plus the cost of the action.  These penalties are prescribed
      by IRC Sections 7213 and 7431 and set forth at 26 CFR 301.6103(n).

    

    (b)  Each
      officer or employee of any person (Contractor or Subcontractor) to whom returns
      or return information is or may be disclosed shall be notified in writing by
      such person that any return or return information made available in any format
      shall be used only for the purpose of carrying out the provisions of this
      contract and that inspection of any such returns or return information for
      a
      purpose or to an extent not authorized herein constitutes a criminal misdemeanor
      punishable upon conviction by a fine of as much as $1,000.00 or imprisonment
      for
      as long as 1 year, or both, together with the costs of
      prosecution.  Such person (Contractor or Subcontractor) shall also
      notify each such officer and employee that any such unauthorized inspection
      of
      returns or return information may also result in an award of civil damages
      against the officer or employee in an amount equal to the sum of the greater
      of
      $1,000.00 for each act of unauthorized inspection with respect to which such
      defendant is found liable or the sum of the actual damages sustained by the
      plaintiff as a result of such unauthorized inspection plus in the case of a
      willful inspection or an inspection which is the result of gross negligence,
      punitive damages, plus the costs of the action.  The penalties are
      prescribed by IRC Sections 7213A and 7431.

    

    
      
        
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    (c)  Additionally,
      it is incumbent upon the Contractor to inform its officers and employees of
      the
      penalties for improper disclosure imposed by the Privacy Act of 1974, 5 U.S.C.
      552a.  Specifically, 5 U.S.C. 552a(I)(1), which is made applicable to
      Contractors by 5 U.S.C. 552a(m)(1), provides that any officer or employee of
      a
      Contractor, who by virtue of his/her employment or official position, has
      possession of or access to agency records which contain individually
      identifiable information, the disclosure of which is prohibited by the Privacy
      Act or regulations established thereunder, and who knowing that disclosure
      of
      the specific material is so prohibited, willfully discloses the material in
      any
      manner to any person or agency not entitled to receive it, shall be guilty
      of a
      misdemeanor and fined not more than $5,000.

    

    

    H.39  IRSAP
      1052.239-9005 Software Development Prerequisite (JAN 2005)

    

    a.
      Definitions. As used in this clause,

    

    1.
      "Appraisal Requirements for CMMI®" (ARC) means a framework
      that defines the

    requirements
      considered essential to appraisal methods intended for use with

    Capability
      Maturity Model Integration (CMMI) models. ARC defines a set of
      typical

    applications
      of appraisal methods called appraisal method classes and allocates

    requirements
      to each class. Thus, a particular appraisal method may be declared
      to

    be
      an ARC
      Class A, B, or C appraisal method.

    

    2.
      "Capability Maturity Model ®" (CMM®) means a framework that
      describes the key 

    elements
      of an effective process or discipline, such as software
      development,

    software
      acquisition, and systems engineering.

    

    3.
      "CMM IntegrationSM" (CMMI) means an integrated CMM model that
      encompasses 

    the
      key
      elements for enterprise-wide process improvement. The CMMI model

    includes
      the disciplines of Software Engineering (SW), Systems Engineering
      (SE),

    Integrated
      Product & Process Development (IPPD), and Supplier Sourcing.

    

    4.
      "CMM-Appraisal Framework" (CAF) means a framework for planning,
      conducting,

    and
      completing CMM-based appraisals.

    

    5.
      "Confirm" means an evaluation by the IRS of evidence provided by the
      offeror to

    support
      its SW-CMM® or CMMI-SW maturity level.

     

    6.
      "Continuous representation" means a model structure wherein capability
      levels 

    provide
      a
      recommended order for approaching process improvement within each 

    specified
      process
      area.

    

    7.
      "Equivalent staging" means a target staging, created using the
      continuous 

    representation
      that is defined so that the results of using the target staging can

    be
      compared to the maturity levels of the staged representation.

    

    8.
      "On-site" means the SEISM appraisal phase in which an appraisal team
      conducts

    extensive
      interviews at the organization's software development facility or the

    location
      of the organization's software development projects. Some portions of
      the

    on-site
      may include teleconferencing or telephone interviews of personnel at
      remote

    locations.

    

    9.
      "Post-award Current Software Capability Rating" means the SW-CMM or
      CMMI-SW

    maturity
      level determined by an appraisal for which the commencement date of
      the

    appraisal
      on-site occurred within the 18 months immediately preceding the due
      date

    of
      the
      initial PARM submittal for a given year.

    

    10.
      "Pre-award Software Capability Rating" means the SW-CMM or CMMI-SW
      maturity

    or
      capability level determined by an appraisal for which the commencement date
      of

    

    
      
        
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    the
      Software Capability Evaluation (SCESM) or Standard CMMI Appraisal Method
      for

    Process
      Improvement (SCAMPISM), ARC Class A on-site occurred within the 12

    months
      immediately preceding the proposal due date.

    

    11.
      "Process Appraisal Review Methodology" (PARM) means the methodology
      employed

    by
      the
      IRS to review, monitor, and verify contractor SW-CMM or CMMI-SW
      maturity

    levels
      during the period of performance of the contract, task order, delivery
      order,

    interagency
      agreement, or BPA.

    

    12.
      "SCE Team Leader" means an individual authorized by SEI as a Lead
      Evaluator,

    substantiated
      by a Lead Evaluator identification number.

    

    13.
      "Small business" means a concern, including its affiliates, that is
      independently

    owned
      and
      operated, not dominant in the field of operation in which it is bidding
      on

    government
      contracts, and qualified as a small business under the criteria and
      size

    standards
      in 13 CFR Part 121. For software development, the size standard to
      be

    eligible
      as a small business concern is less than $21 million in average
      annual

    receipts
      for the previous three fiscal years.

    

    14.
      "Software Capability Evaluation" (SCE), means an SEI-approved appraisal
      method

    generally
      conducted by an independent evaluation team and led by an
      authorized

    SCE
      Team
      Leader.

    

    15.
      "Software Capability Maturity Model" (SW-CMM) means a framework that
      describes

    the
      key
      elements of an effective software process. The SW-CMM model follows
      an

    evolutionary
      improvement path from an ad hoc, immature process to a mature,

    disciplined
      process for the development of software. The model is composed of
      five

    maturity
      levels, which contain a number of key process areas.

    

    16.
      "Software Capability Rating" means the SW-CMM or CMMI-SW Level achieved
      as a

    result
      of
      a SCE, a SCAMPISM, ARC Class A, or other appraisal method conducted

    according
      to the SEI CMM-Appraisal Framework (CAF), latest version, or the Class
      A

    Appraisal
      Requirements for CMMI, ARC Class A, latest version.

    

    17.
      "Software development" means any activity, in whole or in part, that is
      part of a

    software
      life cycle.

    

    18.
      "Software life cycle" means the period of time that begins when a
      software product is

    conceived
      and ends when the software is no longer available for use. The
      software

    life
      cycle typically includes the following phases: concept, requirements,
      design,

    implementation,
      test, installation and checkout, operation and maintenance, and

    retirement.

    

    19.
      "Staged representation" means a structure wherein attaining the goals
      of a set of

    process
      areas establishes a maturity level; each level builds a foundation
      for

    subsequent
      levels.

    

    20.
      "Standard CMMI Appraisal Method for Process Improvement" (SCAMPI), ARC
      Class

    A
      means an SEI-approved appraisal method based on the full set of Class
      A
      ARC

    requirements,
      latest version. A SCAMPI, ARC Class A is conducted by an appraisal

    team
      and
      led by an SEI-authorized SCAMPI Lead AppraiserSM.

    

    21.
      "SCAMPI Lead Appraiser" means an individual authorized by SEI to lead a
      team in

    conducting
      a SCAMPI; authorization is substantiated by a Lead Appraiser

    identification
      number.

    

    
      
        
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    22.
      "Verify" means an evaluation of evidence provided by the contractor to
      support its

    SW-CMM
      or
      CMMI-SW Level, which is conducted by the IRS in accordance with the

    Process
      Appraisal Review Methodology (PARM) after award of a contract, BPA,
      task

    order,
      delivery order, or interagency agreement.

    
      	
               

            	
              b.
                Contractors performing software development for the IRS as required
                under
                this contract shall have, and maintain at all times during performance,
                a
                CMMI-SW Level 2 or higher maturity or capability rating. Detailed
                information about the CMMI-SWSW-CMM model may
                be

            

    

    
      	
               

            	
              obtained
                from the Software Engineering Institute (SEI), Carnegie Mellon
                University,

            

    

    
      	
               

            	
              Pittsburgh,
                PA 15213-3890.

            

    

    

    
      	
               

            	
              The
                web site is
                www.sei.cmu.edu/cmmi/.http://www.sei.cmu.edu/cmmi/

            

    

    

    
      	
               

            	
              c.
                The CMMI-SW-CMM maturity or capability rating shall be current and
                shall
                be substantiated by a SCAMPI, ARC Class A, latest
                version.

            

    

    

    
      	
               

            	
              d.
                As a condition of award, the IRS reserves the right to review and
                confirm
                the SW-CMMCMMI-SW maturity or capability levels of offerors. As a
                further
                condition of award, the IRS reserves the right to conduct a SCAMPI,
                ARC
                Class A.E

            

    

    

    
      	
               

            	
              e.
                After award and throughout the period of performance, the IRS reserves
                the
                right to review, monitor, and verify contractor SW-CMMCMMI-SW maturity
                or
                capability levels in accordance with the Process Appraisal Review
                Methodology (PARM). The IRS further reserves the right to conduct
                an
                independent appraisal of the contractor, including a SCAMPI, ARC
Class
                A.

            

    

    

    f.
      On an
      annual basis, the contractor shall substantiate its current software maturity
      or

    capability
      rating by submitting documentation in accordance with the PARM. The IRS will
      perform a review annually to verify the contractor's compliance with its
      contractual CMMI-SW/CMM capability/maturity requirements.

    

    g.
      The
      contractor shall include the terms of this clause in all subcontracts for
      software

    development
      under this contract.

    

    

    H.40
      1052.239-9006 Software Development Prerequisite – Alternate  (JAN
      2005)

    

    a.
      Definitions. As used in this clause,

    

    1.
      "Appraisal Requirements for CMMI®" (ARC) means a framework
      that defines the

    
      	
               

            	
              requirements
                considered essential to appraisal methods intended for use
                with

            

    

    
      	
               

            	
              Capability
                Maturity Model IntegrationSM (CMMI) models. ARC defines a set of
                typical

            

    

    
      	
               

            	
              applications
                of appraisal methods called appraisal method classes and
                allocates

            

    

    
      	
               

            	
              requirements
                to each class. Thus, a particular appraisal method may be declared
                to

            

    

    
      	
               

            	
              be
                an ARC Class A, B, or C appraisal
                method

            

    

    .

    2.
      "Capability Maturity Model ®" (CMM) means a framework that
      describes the key

    elements
      of an effective process or discipline, such as software
      development,

    software
      acquisition, and systems engineering.

    

    3.
      "CMM Integration" (CMMI) means an integrated CMM model that encompasses
      the

    key
      elements for enterprise-wide process improvement. The CMMI model
      includes

    the
      disciplines of Software Engineering (SW), Systems Engineering (SE),
      Integrated

    Product
      & Process Development (IPPD), and Supplier Sourcing.

    

    4.
      "CMM-Appraisal Framework" (CAF) means a framework for planning,
      conducting,

    

    
      
        
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    and
      completing CMM-based appraisals.

    

    5.
      "Confirm" means an evaluation by the IRS of evidence provided by the
      offeror to

    support
      its SW-CMM or CMMI-SW maturity level.

    

    6.
      "Continuous representation" means a model structure wherein capability
      levels

    provide
      a
      recommended order for approaching process improvement within each

    specified
      process area.

    

    7.
      "Equivalent staging" means a target staging, created using the
      continuous

    representation
      that is defined so that the results of using the target staging can
      be

    compared
      to the maturity levels of the staged representation.

    

    8.
      "On-site" means the SEISM appraisal phase in which an appraisal team
      conducts

    extensive
      interviews at the organization's software development facility or
      the

    location
      of the organization's software development projects. Some portions of
      the

    on-site
      may include teleconferencing or telephone interviews of personnel at
      remote

    locations.

    

    9.
      "Post-award Current Software Capability Rating" means the SW-CMM or
      CMMI-SW

    maturity
      level determined by an appraisal for which the commencement date of
      the

    appraisal
      on-site occurred within the 18 months immediately preceding the due
      date

    of
      the
      initial PARM submittal for a given year.

    

    10.
      "Pre-award Software Capability Rating" means the SW-CMM or CMMI-SW
      maturity

    or
      capability level determined by an appraisal for which the commencement date
      of

    the
      Software Capability Evaluation (SCESM) or Standard CMMI Appraisal Method
      for

    Process
      Improvement (SCAMPISM) on-site occurred within the 12 months

    immediately
      preceding the proposal due date.

    

    11.
      "Process Appraisal Review Methodology" (PARM) means the methodology
      employed

    by
      the
      IRS to review, monitor, and verify contractor SW-CMM or CMMI-SW
      maturity

    levels
      during the period of performance of the contract, task order, delivery
      order,

    interagency
      agreement, or BPA.

    

    12.
      "SCE Team Leader" means an individual authorized by SEI as a Lead
      Evaluator,

    substantiated
      by a Lead Evaluator identification number.

    

    13.
      "Small business" means a concern, including its affiliates, that is
      independently

    owned
      and
      operated, not dominant in the field of operation in which it is bidding
      on

    government
      contracts, and qualified as a small business under the criteria and
      size

    standards
      in 13 CFR Part 121. For software development, the size standard to
      be

    eligible
      as a small business concern is less than $21 million in average
      annual

    receipts
      for the previous three fiscal years.

    

    14.
      "Software Capability Evaluation" (SCE), means an SEI-approved appraisal
      method

    generally
      conducted by an independent evaluation team and led by an
      authorized

    SCE
      Team
      Leader.

    

    15.
      "Software Capability Maturity Mode"(SW-CMM) means a framework that
      describes

    the
      key
      elements of an effective software process. The SW-CMM model follows
      an

    evolutionary
      improvement path from an ad hoc, immature process to a mature,

    disciplined
      process for the development of software. The model is composed of
      five

    maturity
      levels, which contain a number of key process areas.

    

    16.
      "Software Capability Rating" means the SW-CMM or CMMI-SW Level achieved
      as a

    

    
      
        
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    result
      of
      a SCE, a SCAMPI, ARC Class A, or other appraisal method conducted

    according
      to the SEI CMM-Appraisal Framework (CAF), latest version, or the Class
      A

    Appraisal
      Requirements for CMMI, ARC Class A, latest version.

    

    17.
      "Software development" means any activity, in whole or in part, that is
      part of a

    software
      life cycle.

    

    18.
      "Software life cycle" means the period of time that begins when a
      software product is

    conceived
      and ends when the software is no longer available for use. The
      software

    life
      cycle typically includes the following phases: concept, requirements,
      design,

    implementation,
      test, installation and checkout, operation and maintenance, and

    retirement.

    

    19.
      "Staged representation" means a structure wherein attaining the goals
      of a set of

    process
      areas establishes a maturity level; each level builds a foundation
      for

    subsequent
      levels.

    

    20.
      "Standard CMMI Appraisal Method for Process Improvement" (SCAMPI), ARC
      Class

    A
      means an SEI-approved appraisal method based on the full set of Class
      A
      ARC

    requirements,
      latest version. A SCAMPI, ARC Class A is conducted by an appraisal

    team
      and
      led by an SEI-authorized SCAMPI Lead AppraiserSM.

    

    21.
      "SCAMPI Lead Appraiser" means an individual authorized by SEI to lead a
      team in

    conducting
      a SCAMPI, authorization is substantiated by a Lead Appraiser

    identification
      number.

    

    22.
      "Verify" means an evaluation of evidence provided by the contractor to
      support its

    SW-CMM
      or
      CMMI-SW Level, which is conducted by the IRS in accordance with the

    Process
      Appraisal Review Methodology (PARM) after award of a contract, BPA,
      task

    order,
      delivery order, or interagency agreement.

    

    b.           
      Contractors performing software development for the IRS as required under this
      contract

    shall
      have, and maintain at all times during performance, a software maturity of
      Level
      3 or

    higher
      according to the SW-CMM model. Detailed information about SW-CMM or
      software

    maturity
      of Level 2 or higher according to the CMMI-SW model. Detailed information about
      

    SW-CMM
      or
      CMMI-SW may be obtained from the Software Engineering Institute (SEI),

    Carnegie
      Mellon University, Pittsburgh, PA 15213-3890. The web site is
www.sei.cmu.edu/cmm/.

    

    c.           The
      SW-CMM Level shall be current and shall be substantiated by a Software
      Capability

    Evaluation
      (SCE).

    

    d.           As
      a condition of award, the IRS reserves the right to review and confirm the
      SW-CMM

    Level
      of
      offerors. As a further condition of award, the IRS reserves the right to conduct
      a

    Software
      Capability Evaluation (SCE).

    

    e.           After
      award and throughout the period of performance, the IRS reserves the right
      to
      review,

    monitor,
      and verify contractor SW-CMMSW-CMM maturity levels in accordance with the

    Process Appraisal
      Review Methodology (PARM). The IRS further reserves the right to 

    conduct
      an independent
      appraisal of the contractor, including a Software Capability 

    Evaluation
      (SCE).

    

    
      	
              f.

            	
              On
                an annual basis, the contractor shall substantiate its current software
                maturity capability rating 

              by submitting
                documentation in accordance with the PARM. The IRS will perform a
                review

            

    

    annually
      in order to verify the contractor's compliance with its contractual
      SW-CMMSW-CMM

    maturity
      requirements.

    

    
      
        
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    g.           The
      contractor shall include the terms of this clause in all subcontracts for
      software

    development
      under this contract.

    

     

    

    H.41
      1052.239-9006 Software Development Prerequisite – Supplement  (JAN
      2005)

    

    It
      is
      understood that the subcontractor does not have a [Insert one of the
      following: Capability

    Maturity
      Model for Software (SW-CMM) Level 3 or higher rating, or a CMM Integration
      for

    Software
      Engineering (CMMI-SW) Level 2 or higher rating]. The IRS has approved
      the

    subcontractor’s
      participation in the (insert name of IRS software development project),
      using the

    prime
      contractor’s [Insert one of the following: SW-CMM Level 3 or CMMI-SW Level 2
      or higher]

    processes.
      The prime contractor is responsible for the planning, management, and
      performance

    of
      the
      software development project according to its documented processes,
      utilizing

    subcontractor
      resources as mutually agreed between the prime contractor and
      subcontractor.

    The
      subcontractor, in performing its agreed task assignments for the software
      development

    project,
      shall comply with the prime contractor’s direction.

    

    

    H.42 Access,
      Use or Operation of IRS IT Systems by Contractors

    

    In
      performance of this contract, the contractor agrees to comply with the following
      requirements

    and
      assumes responsibility for compliance by his/her employees:

    

    IRS
      IT Security Policy and Guidance

    All
      current and new IRS contractor employees authorized staff-like (unescorted)
      access to

    Treasury/IRS
      owned or controlled facilities and information systems, or work,
      wherever

    located,
      on those contracts which involve the design, operation, repair or maintenance
      of

    information
      systems and access to sensitive but unclassified information shall comply
      with

    the
      IRS
      Information Technology Security Policy and Guidance, Internal Revenue
      Manual

    (IRM)
      25.10.1. A copy of IRM 25.10.1 may be requested from the contracting officer
      or

    Contracting
      Officer Technical Representative (COTR). Notice: The IRS Policy
      87-04

    which
      authorizes limited personal use of IT systems by IRS employees does not apply
      to

    contractor
      employees.

    

    Access
      Request and Authorization.

    Within
      (10) calendar days after contract award, issuance of a task order or other
      award

    notice,
      or acceptance of new or substitute contractor employees by the COTR,
      the

    contractor
      shall provide the COTR a list of names of all applicable contractor
      employees

    and
      the
      IRS location(s) identified in the contract for which access is requested. A
      security

    screening,
      if determined appropriate by the IRS and in accordance with IRM
      1.23.2,

    Contractor
      Investigations, and Treasury Directive Policy (TD P) 71-10, Chapter II,
      Section

    2,
      will
      be conducted by the IRS for each contractor employee requiring access to IRS-
      IT

    systems,
      or as otherwise deemed appropriate by the COTR. The Government reserves
      the

    right
      to
      determine fitness of a contractor employee assigned staff-like access under
      a

    contract
      and whether the employee shall perform or continue performance under
      the

    contract.
      Security screenings of contractor employee that reveal the following may
      be

    unacceptable
      under this contract: conviction of a felony, a crime of violence or a
      serious

    misdemeanor,
      a record of arrests for continuing offenses, or failure to file or pay
      Federal

    income
      tax (not an inclusive list). Upon notification from the National
      Background

    Investigations
      Center (NBIC) of an acceptable contractor employee security screening,
      the

    COTR
      will
      complete an Online 5081, Information System User
      Registration/Change

    

    
      
        
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    Request,
      for each prime or subcontractor employee and require an electronic
      signature

    from
      each
      employee indicating the contractor employee has read and fully understands
      the

    security
      requirements governing access to the Service’s IT systems. IRS approval of
      the

    Online
      5081 is required before a contractor employee is granted access to, use
      or

    operation
      of IRS IT systems. IRM 25.10.1 includes more detailed information on the
      Online

    5081.

    

    Contractor
      Acknowledgement.

    The
      contractor also acknowledges and agrees that he or she understands that all
      contract

    employees
      must comply with all laws, IRS system security rules, IRS security
      policies,

    standards,
      and procedures. The contractor also acknowledges that a contract
      employee’s

    unsanctioned,
      negligent, or willful violation of the laws, IRS system security rules,
      IRS

    security
      policies, standards, and procedures may result in the revocation of access
      to
      IRS

    information
      technology systems, immediate removal from IRS premises and the
      contract,

    and
      for
      violations of Federal statute or state laws, the contract employee may be
      arrested

    by
      Federal law enforcement agents.

    

    Unauthorized
      Use of IRS Resources.

    Contractor
      employees shall not use IRS information technology equipment/resources
      for

    activities
      that are personal in nature or illegal. Other types of actions that are
      unauthorized

    include
      but are not limited to:

    (a)           Creating,
      copying, transmitting, or retransmitting greeting cards, screen
      savers,

    video,
      sound (including streaming video or music) or other large file
      attachments;

    subscribing
      to unofficial LISTSERVs or other services that create a high-volume
      of

    email
      traffic, or using e-mail practices that involve ongoing message receipt
      and

    transmission
      (referred to as instant messaging/messenger). Using “Push”
technology

    on
      the
      Internet, (e.g. subscribing to a service, not authorized by the IRS, that
      gathers

    information
      and sends it out automatically to subscribers), and continuous data

    streams
      such as streaming stock quotes are inappropriate uses.

    (b)           Accessing
      personal e-mail accounts such as AOL or Hotmail through the IRS
      Internet

    firewall,
      hacker’s information or tools, chat rooms (involving instant messaging)
      or

    gambling
      sites;

    (c)           Creating,
      downloading, viewing, storing, copying, or transmitting sexually explicit
      or

    sexually
      oriented materials such as adult pornography;

    (d)           Downloading,
      copying, and/or playing of computer video games;

    (e)           Posting
      agency information to external news groups, bulletin boards or other
      public

    forums
      without authorization; and

    (f)           Accessing
      child pornography, bondage and bestiality, obscenity or other types
      of

    images
      that violate criminal law.

    

    Any
      unauthorized use may be reported to the Contracting Officer’s
      Technical

    Representative
      (COTR), the Contracting Officer, and the Department of Treasury
      Inspector

    General
      for Tax Administration (TIGTA).

    

     Replacement
      Personnel

    Replacement
      personnel must be acceptable to the COTR. The contractor shall agree
      to

    remove
      the person assigned within one day of official notification by the Government
      and

    provide
      a
      replacement within five days. New hires or substitutions of personnel are
      subject

    to
      an
      acceptable IRS security screening conducted by the IRS National
      Background

    Investigation
      Center (NBIC), prior to being authorized access to IRS facilities
      and

    information
      systems.

    

    Monitoring
      Notification

    IRS
      management retains the right to monitor both the content and the level of access
      of

    

    
      
        
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    contractor
      employees’ use of IRS IT systems. Contractor employees do not have a
      right,

    nor
      should they have an expectation, of privacy while using any IRS information
      technology

    system
      at
      any time, including accessing the Internet or using e-mail. Data maintained
      on

    government
      office equipment may be subject to discovery and Freedom of Information
      Act

    requests.
      By using government information technology systems, consent to monitoring
      and

    recording
      is implied with or without cause, including (but not limited to) accessing
      the

    Internet
      or using e-mail or the telephone.

    

    Any
      use
      of government information technology systems is made with the understanding
      that

    such
      use
      is generally not secure, is not private and is not anonymous.

    

    Subcontracts

    The
      Contractor shall incorporate this clause in all subcontracts, subcontract task
      or delivery

    orders
      or
      other subcontract performance instrument where the subcontractor
      employees

    will
      require access, use or operation of IRS information technology
      systems.

    

    

    
      
        
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               I.3.1

            	
              52.209-1  QUALIFICATION
                REQUIREMENTS
                (FEB 1995)

            

    

    

    (a)
      Definition. "Qualification requirement," as used in this clause, means
      a Government requirement for testing or other quality assurance demonstration
      that must be completed before award.

    

    (b)
      One
      or more qualification requirements apply to the supplies or services covered
      by
      this contract. For those supplies or services requiring qualification, whether
      the covered product or service is an end item under this contract or simply
      a
      component of an end item, the product, manufacturer, or source must have
      demonstrated that it meets the standards prescribed for qualification before
      award of this contract. The product, manufacturer, or source must be qualified
      at the time of award whether or not the name of the product, manufacturer,
      or
      source is actually included on a qualified products list, qualified
      manufacturers list, or qualified bidders list. Offerors should contact the
      agency activity designated below to obtain all requirements that they or their
      products or services, or their subcontractors or their products or services,
      must satisfy to become qualified and to arrange for an opportunity to
      demonstrate their abilities to meet the standards specified for
      qualification.

    

    For
      Capability Maturity Model Integration CMMIsm Compliance
      contact:

    

    (Name)                                                                                      

    (Address)                      

    
 

    (c)
      If an
      offeror, manufacturer, source, product or service covered by a qualification
      requirement has already met the standards specified, the relevant information
      noted below should be provided.

    

    Offeror's
      Name
      _______________________________

    Manufacturer's
      Name __________________________

    Source's
      Name _______________________________

    Item
      Name __________________________________

    Service
      Identification __________________________

    Test
      Number ________________________________ (to the extent
      known)

    

    (d)
      Even though a product or service subject to a qualification
      requirement is not itself an end item under this contract, the product,
      manufacturer, or source must nevertheless be qualified at the time of award
      of
      this contract. This is necessary whether the Contractor or a subcontractor
      will
      ultimately provide the product or service in question. If, after award, the
      Contracting Officer discovers that an applicable qualification requirement
      was
      not in fact met at the time of award, the Contracting Officer may either
      terminate this contract for default or allow performance to continue if adequate
      consideration is offered and the action is determined to be otherwise in the
      Government's best interests.

    

    
      
        
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    (e)
      If an offeror, manufacturer, source, product or service has met
      the qualification requirement but is not yet on a qualified products list,
      qualified manufacturers list, or qualified bidders list, the offeror must submit
      evidence of qualification prior to award of this contract. Unless determined
      to
      be in the Government's interest, award of this contract shall not be delayed
      to
      permit an offeror to submit evidence of qualification.

    

    (f)
      Any
      change in location or ownership of the plant where a previously qualified
      product or service was manufactured or performed requires reevaluation of the
      qualification.  Similarly, any change in location or ownership of a
      previously qualified manufacturer or source requires reevaluation of the
      qualification. The reevaluation must be accomplished before the date of
      award.

    

    

    I.3.2                                52.215-19
      NOTIFICATION OF OWNERSHIP CHANGES (OCT 1997)

    

    (a)
      The Contractor shall make the following
      notifications in writing:

    

    (1)
      When the Contractor becomes aware
      that a change in its ownership has occurred, or is certain to occur, that could
      result in changes in the valuation of its capitalized assets in the accounting
      records, the Contractor shall notify the Administrative Contracting Officer
      (ACO) within 30 days.

    

                    
      (2) The Contractor shall also notify the ACO within 30 days whenever changes
      to
      asset valuations or any other cost changes have occurred or are certain to
      occur
      as a result of a change in ownership.

    

    (b)
      The Contractor shall-

    

                    
      (1) Maintain current, accurate, and complete inventory records of assets and
      their costs;

    

                    
      (2) Provide the ACO or designated representative ready access to the records
      upon request;

    

    (3)
      Ensure that all individual and
      grouped assets, their capitalized values, accumulated depreciation or
      amortization, and remaining useful lives are identified accurately before and
      after each of the Contractor's ownership changes; and

    

                    
      (4) Retain and continue to maintain depreciation and amortization schedules
      based on the asset records maintained before each Contractor ownership
      change.

    

    (c)
      The Contractor shall include the substance of this clause in
      all subcontracts under this contract that meet the applicability requirement
      of
      FAR 15.408(k).

    
 

    I.3.13                      52.232-32
      PERFORMANCE-BASED PAYMENTS (FEB 2002)

    

    (a)
      Amount of payments and limitations on payments. Subject to such other
      limitations and conditions as are specified in this contract and this clause,
      the amount of payments and limitations on payments shall be specified in the
      contract's description of the basis for payment.

    

    (b)
      Contractor request for performance-based payment. The Contractor may submit
      requests for payment of performance-based payments not more frequently than
      monthly, in a form and manner acceptable to the Contracting Officer. Unless
      otherwise authorized by the Contracting Officer, all performance-based payments
      in any period for which payment is being requested shall be included in a single
      request, appropriately itemized and totaled. The Contractor's request shall
      contain the information and certification detailed in paragraphs (l) and (m)
      of
      this clause.

    

    (c)
      Approval and payment of requests.

    

               (1)
      The Contractor shall not be entitled to payment of a request for
      performance-based payment prior to successful accomplishment of the event or
      performance criterion for which payment is requested. The Contracting Officer
      shall determine whether the event or performance criterion for which payment
      is
      requested has been successfully accomplished in

    

    
      
        
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    accordance
      with the terms of the contract. The Contracting Officer may, at any time,
      require the Contractor to substantiate the successful performance of any event
      or performance criterion which has been or is represented as being
      payable.

    

               (2)
      A payment under this performance-based payment clause is a contract financing
      payment under the Prompt Payment clause of this contract and not subject to
      the
      interest penalty provisions of the Prompt Payment Act. The designated payment
      office will pay approved requests on the 30th day after receipt of the
      request for performance-based payment. However, the designated payment office
      is
      not required to provide payment if the Contracting Officer requires
      substantiation as provided in paragraph (c)(1) of this clause, or inquires
      into
      the status of an event or performance criterion, or into any of the conditions
      listed in paragraph (e) of this clause, or into the Contractor certification.
      The payment period will not begin until the Contracting Officer approves the
      request.

    

    (3)
      The approval by the Contracting
      Officer of a request for performance-based payment does not constitute an
      acceptance by the Government and does not excuse the Contractor from performance
      of obligations under this contract.

    

    (d)
      Liquidation of performance-based payments.

    

    (1)
      Performance-based finance amounts
      paid prior to payment for delivery of an item shall be liquidated by deducting
      a
      percentage or a designated dollar amount from the delivery payment. If the
      performance-based finance payments are on a delivery item basis, the liquidation
      amount for each such line item shall be the percent of that delivery item price
      that was previously paid under performance-based finance payments or the
      designated dollar amount. If the performance-based finance payments are on
      a
      whole contract basis, liquidation shall be by either predesignated liquidation
      amounts or a liquidation percentage.

    

    (2)
      If at any time the amount of
      payments under this contract exceeds any limitation in this contract, the
      Contractor shall repay to the Government the excess. Unless otherwise determined
      by the Contracting Officer, such excess shall be credited as a reduction in
      the
      unliquidated performance-based payment balance(s), after adjustment of invoice
      payments and balances for any retroactive price adjustments.

    

    (e)
      Reduction or suspension of performance-based payments.

    

    The
      Contracting Officer may reduce or suspend performance-based payments, liquidate
      performance-based payments by deduction from any payment under the contract,
      or
      take a combination of these actions after finding upon substantial evidence
      any
      of the following conditions:

    

    (1)  The
      Contractor failed to
      comply with any material requirement of this contract (which includes paragraphs
      (h) and (i) of this clause).

    

               (2)  Performance
      of this contract is endangered by the Contractor's-

    

                          (i)
      Failure to make progress; or

    

    (ii)
      Unsatisfactory
      financial condition.

    

               (3)  The
      Contractor is delinquent in payment of any subcontractor or supplier under
      this
      contract in the ordinary course of business.

    

    (f)
      Title.

    

    (1)
      Title to the property described in
      this paragraph (f) shall vest in the Government. Vestiture shall be immediately
      upon the date of the first performance-based payment under this contract, for
      property acquired or produced before that date. Otherwise, vestiture shall
      occur
      when the property is or should have been allocable or properly chargeable to
      this contract.

    

    (2)
      "Property," as used in this clause,
      includes all of the following described items acquired or produced by the
      Contractor that are or should be allocable or properly chargeable to this
      contract under sound and generally accepted accounting principles and
      practices:

    

    
      
        
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                          (i)
      Parts, materials, inventories, and work in process;

    

                          (ii)
      Special tooling and special test equipment to which the Government is to acquire
      title under any other clause of this contract;

    

                          (iii)
      Nondurable (i.e., noncapital) tools, jigs, dies, fixtures, molds, patterns,
      taps, gauges, test equipment and other similar manufacturing aids, title to
      which would not be obtained as special tooling under paragraph (f)(2)(ii) of
      this clause; and

    

                          (iv)
      Drawings and technical data, to the extent the Contractor or subcontractors
      are
      required to deliver them to the Government by other clauses of this
      contract.

    

    (3)
      Although title to property is in
      the Government under this clause, other applicable clauses of this contract
      (e.g., the termination or special tooling clauses) shall determine the handling
      and disposition of the property.

    

    (4)
      The Contractor may sell any scrap
      resulting from production under this contract, without requesting the
      Contracting Officer's approval, provided that any significant reduction in
      the
      value of the property to which the Government has title under this clause is
      reported in writing to the Contracting Officer.

    

               (5)
      In order to acquire for its own use or dispose of property to which title is
      vested in the Government under this clause, the Contractor must obtain the
      Contracting Officer's advance approval of the action and the terms. If approved,
      the basis for payment (the events or performance criteria) to which the property
      is related shall be deemed to be not in compliance with the terms of the
      contract and not payable (if the property is part of or needed for performance),
      and the Contractor shall refund the related performance-based payments in
      accordance with paragraph (d) of this clause.

    

    (6)
      When the Contractor completes all
      of the obligations under this contract, including liquidation of all
      performance-based payments, title shall vest in the Contractor for all property
      (or the proceeds thereof) not- 

    

    (i)
      Delivered to, and accepted by, the
      Government under this contract; or

    

                          (ii)
      Incorporated in supplies delivered to, and accepted by, the Government under
      this contract and to which title is vested in the Government under this
      clause.

    

    (7)
      The terms of this contract
      concerning liability for Government-furnished property shall not apply to
      property to which the Government acquired title solely under this
      clause.

    

    (g)
      Risk
      of loss. Before delivery to and acceptance by the Government, the Contractor
      shall bear the risk of loss for property, the title to which vests in the
      Government under this clause, except to the extent the Government expressly
      assumes the risk. If any property is damaged, lost, stolen, or destroyed, the
      basis of payment (the events or performance criteria) to which the property
      is
      related shall be deemed to be not in compliance with the terms of the contract
      and not payable (if the property is part of or needed for performance), and
      the
      Contractor shall refund the related performance-based payments in accordance
      with paragraph (d) of this clause.

    

    (h)
      Records and controls. The Contractor shall maintain records and controls
      adequate for administration of this clause. The Contractor shall have no
      entitlement to

    performance-based
      payments during any time the Contractor's records or controls are determined
      by
      the Contracting Officer to be inadequate for administration of this
      clause.

    

    (i)
      Reports and Government access. The Contractor shall promptly furnish reports,
      certificates, financial statements, and other pertinent information requested
      by
      the Contracting Officer for the administration of this clause and to determine
      that an event or other criterion prompting a financing payment has been
      successfully accomplished. The Contractor shall give the Government reasonable
      opportunity to examine and verify the Contractor's records and to examine and
      verify the Contractor's performance of this contract for administration of
      this
      clause.

    

    (j)
      Special terms regarding default. If this contract is terminated under the
      Default clause, (1) the Contractor shall, on demand, repay to the Government
      the
      amount of unliquidated performance-based payments, and (2) title shall vest
      in
      the

    

    
      
        
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    Contractor,
      on full liquidation of all performance-based payments, for all property for
      which the Government elects not to require delivery under the Default clause
      of
      this contract. The Government shall be liable for no payment except as provided
      by the Default clause.

    

    (k)
      Reservation of rights.

    

    (1)
      No payment or vesting of title
      under this clause shall-

    

    (i)
      Excuse the Contractor from
      performance of obligations under this contract; or

    

                          (ii)
      Constitute a waiver of any of the rights or remedies of the parties under the
      contract.

    

               (2)
      The Government's rights and remedies under this clause-

    

                          (i)
      Shall not be exclusive, but rather shall be in addition to any other rights
      and
      remedies provided by law or this contract; and

     

          
    (ii)
      Shall
      not be affected by delayed, partial, or omitted exercise of any right, remedy,
      power, or privilege, nor shall such exercise or any single exercise preclude
      or
      impair any further exercise under this clause or the exercise of any other
      right, power, or privilege of the Government.

    

    (l)
      Content of Contractor's request for performance-based payment. The Contractor's
      request for performance-based payment shall contain the following:

    

    (1)
      The name and address of the
      Contractor;

    

    (2)
      The date of the request for
      performance-based payment;

    

    (3)
      The contract number and/or other
      identifier of the contract or order under which the request is
      made;

    

    (4)
      Such information and documentation
      as is required by the contract's description of the basis for payment;
      and

    

    (5)
      A certification by a Contractor
      official authorized to bind the Contractor, as specified in paragraph (m) of
      this clause.

    

    (m)
      Content of Contractor's certification. As required in paragraph (l)(5) of this
      clause, the Contractor shall make the following certification in each request
      for performance-based payment:

    

    I
      certify
      to the best of my knowledge and belief that-

    

    (1)
      This request for performance-based
      payment is true and correct; this request (and attachments) has been prepared
      from the books and records of the Contractor, in accordance with the contract
      and the instructions of the Contracting Officer;

    

    (2)
      (Except as reported in writing on
      __________), all payments to subcontractors and suppliers under this contract
      have been paid, or will be paid, currently, when due in the ordinary course
      of
      business;

    

    (3)
      There are no encumbrances (except
      as reported in writing on __________)

    against
      the property acquired or produced for, and allocated or properly chargeable
      to,
      the contract which would affect or impair the Government's title;

    

    (4)
      There has been no materially
      adverse change in the financial condition of the Contractor since the submission
      by the Contractor to the Government of the most recent written information
      dated
      __________; and

    

    (5)
      After the making of this requested
      performance-based payment, the amount of all payments for each deliverable
      item
      for which performance-based payments have been requested will not exceed any
      limitation in the contract, and the amount of all payments under the contract
      will not exceed any limitation in the contract.

    

    
      
        
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    I.4.1                      DTAR
      1052.203-12 LIMITATION ON PAYMENTS TO INFLUENCE CERTAIN
FEDERAL
      TRANSACTIONS (JAN 1990) (DEVIATION)

    

    (a)
      Definitions.

    

         "Agency",
      as used in this clause, means executive agency as defined in 2.101.

    

         "Covered
      Federal action", as used in this clause, means any of the following Federal
      actions:

    

              (a)
      The awarding of any Federal contract.

    

              (b)
      The making of any Federal grant.

    

              (c)
      The making of any Federal loan.

    

              (d)
      The entering into of any cooperative agreement.

    

              (e)
      The extension, continuation, renewal, amendment, or modification of any Federal
      contract, grant, loan, or cooperative agreement.

    

              "Indian
      tribe" and "tribal organization", as used in this clause, have the meaning
      provided in section 4 of the Indian Self-Determination and Education Assistance
      Act (25 U.S.C. 450B) and include Alaskan natives.

    

             "Influencing
      or attempting to influence," as used in this clause, means making, with the
      intent to influence, any communication to or an appearance before an officer
      or
      employee of any agency, a Member of Congress, an officer or employee of
      Congress, or an employee of a Member of Congress in connection with any covered
      Federal action.

    

              "Local
      government," as used in this clause, means a unit of government in a
State
      and, if chartered, established, or otherwise recognized by a State for the
      performance of a governmental duty, including a local public authority, a
      special district, an
      intrastate district, a council of governments, a sponsor group representative
      organization, and any other instrumentality of a local government.

    

              "Officer
      or employee of an agency," as used in this clause, includes the following
      individuals who are employed by an agency:

    

              (a)
      An individual who is appointed to a position in the Government under title
      5,
      United States Code, including a position under a temporary
      appointment.

    

              (b)
      A member of the uniformed services, as defined in subsection 101(3), title
      37,
      United States Code.

    

              (c)
      A special Government employee, as defined in section 202, title 18, United
      States Code.

    

              (d)
      An individual who is a member of a Federal Advisory Committee Act, title 5,
      United States Code, appendix 2.

    

              "Person,"
      as used in this clause, means an individual, corporation, company association,
      authority, firm, partnership, society, State, and local government, regardless
      of whether such entity is operated for profit, or not for profit. This term
      excludes an Indian tribe, tribal organization, or another Indian organization
      with respect to expenditures specifically permitted by other Federal
      law.

    

              "Reasonable
      compensation," as used in this clause, means, with respect to a regularly
      employed officer or employee of any person, compensation that is consistent
      with
      the normal compensation for such officer or employee for such work that is
      not
      furnished to, not funded by, or not furnished in cooperation with the Federal
      Government.

    

    
      
        
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              "Reasonable
      payment," as used in this clause, means, with respect to professional and other
      technical services, a payment in an amount that is consistent with the amount
      normally paid for such services in the private sector.

    

              "Recipient,"
      as used in this clause, includes the Contractor and all subcontractors. This
      term excludes an Indian tribe, tribal organization, or any other Indian
      organization with respect to expenditures specifically permitted by other
      Federal law.

    

              "Regularly
      employed," as used in this clause, means, with respect to an officer or employee
      of a person requesting or receiving a Federal contract, an officer or
      employee

    who
      is
      employed by such person for at least 130 working days within 1 year immediately
      preceding the date of the submission that initiates agency consideration
      of

    such
      person for receipt of such contract. An officer or employee who is employed
      by
      such person for less than 130 working days within 1 year immediately preceding
      the date of the submission that initiates agency consideration of such person
      shall be considered to be regularly employed as soon as he or she is employed
      by
      such person for 130 working days.

    

              "State,"
      as used in this clause, means a State of the United States, the District of
      Columbia, the Commonwealth of Puerto Rico, a territory or possession of the
      United States, an agency or instrumentality of a State, a multi-State, regional,
      or interstate entity having governmental duties and powers.

    

    (b)
      Prohibitions.

    

         (1)
      Section 1352 of title 31, United States Code, among other things, prohibits
      a
      recipient of a Federal contract, grant, loan, or cooperative agreement from
      using appropriated funds to pay any person for influencing or attempting to
      influence an officer or employee of any agency a Member of Congress, an officer
      or employee of Congress, or an employee of a Member of Congress in connection
      with any of the following covered Federal action: The awarding of any Federal
      contract; the making of any Federal grant; the making of any Federal loan;
      the
      entering into any cooperative agreement; or the modification of any Federal
      contract, grant, loan, or cooperative agreement.

    

         (2)
      The Act also requires Contractors to furnish a disclosure if any funds other
      than Federal appropriated funds (including profit or fee received under a
      covered Federal transaction) have been paid, or will be paid, to any person
      for
      influencing or attempting to influence an officer or employee of any agency,
      a
      Member of Congress, an officer or employee of Congress, or an employee of a
      Member of Congress in connection with a Federal contract, grant, loan or
      cooperative agreement.

    

         (3)
      The prohibitions of the Act do not apply under the following
      condition:

    

                (i)
      Agency and legislative liaison by own employees.

    

                     (A)
      The prohibition on the use of appropriated funds, in subparagraph (b)(1) of
      this
      clause, does not apply in the case of a payment of reasonable compensation
      made
      to an officer or employee of a person requesting or receiving a covered Federal
      action if the payment is for agency and legislative liaison activities not
      directly related to a covered Federal action.

    

                     (B)
      For purposes of subdivision (b)(3)(I)(A) of this clause, providing any
      information specifically requested by an agency or Congress is permitted a
      any
      time.

    

                     (C)
      The following agency and legislative liaison activities are permitted any time
      where they are not related to a specific solicitation for any covered Federal
      action:

    

                            (1)
      Discussing with an agency the qualities and characteristics (including
      individual demonstrations) of the person's products or services, conditions
      or
      terms of sale, and service capabilities.

    

                            (2)
      Technical discussions and other activities regarding the application or
      adaptation of the person's products or services for an agency's
      use.

    

                     (D)
      The following agency and legislative liaison activities are permitted where
      they
      are prior to formal solicitation of any covered Federal action-

    

    
      
        
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                             (1)
      Providing any information not specifically requested but necessary for an agency
      to make an informed decision about initiation of a covered Federal
      action;

    

                             (2)
      Technical discussions regarding the preparation of any unsolicited proposal
      prior to its official submission; and

    

                             (3)
      Capability presentations by persons seeking awards from an agency pursuant
      to
      the provision of the Small Business Act, as amended by Pub. L.
      95-507,

    and
      subsequent amendments.

    

                      (E)
      Only those services expressly authorized by subdivision (b)(3)(I)(A) of this
      clause are permitted under this clause.

    

                (ii)
      Professional and technical services.

    

                     (A)
      The prohibition on the use of appropriated funds, in subparagraph (b)(1) of
      this
      clause, does not apply in the case of-

    

                            (1)
      A payment of reasonable compensation made to an officer of employee of a person
      requesting or receiving a covered Federal action or any extension, continuation,
      renewal, amendment, or modification of a covered Federal action, if payment
      is
      for professional or technical services rendered directly in the preparation,
      submission, or negotiation of any bid, proposal or application for that Federal
      action or for meeting requirements imposed or pursuant to law as a condition
      for
      receiving that Federal action.

    

                           (2)
      Any reasonable payment to a person, other than an officer or employee of a
      person requesting or receiving a covered Federal action or any extension,
      continuation, renewal, amendment, or modification of a covered Federal action
      if
      the payment is for professional or technical services rendered directly in
      the
      preparation, submission, or negotiation of any bid, proposal or application
      for
      that Federal action or for meeting requirements imposed or pursuant to law
      as a
      condition for receiving that Federal action. Persons other than officers or
      employees of a person requesting or receiving a covered Federal action include
      consultants and trade associations.

    

                     (B)
      For purposes of subdivision (b)(3)(ii)(A) of this clause, "professional" and
      technical services" shall be limited to advice and analysis directly applying
      any professional or technical discipline. The following examples are not
      intended to be all inclusive, to limit the application of the professional
      or
      technical exemption provided in the law, or to limit the exemption to licensed
      professionals. For example, drafting of a legal document accompanying a bid
      or
      proposal by a lawyer is allowable. Similarly, technical advice provided by
      an
      engineer on the performance or operational capability of a piece of equipment
      rendered directly in the negotiation of a contract is allowable.

    However,
      communication with a technical person (such as a licensed accountant) are not
      allowable under this section unless they provide advice and analysis directly
      applying their professional or technical expertise and unless the advice or
      analysis is rendered directly and solely in the preparation, submission or
      negotiation of a covered Federal action. Thus, for example, communication with
      the intent to influence made by a lawyer that do not provide legal advice or
      analysis directly and solely related to the legal aspects of his or her client's
      proposal, but generally advocate one proposal over another are not allowable
      under this section because the lawyer is not providing professional legal
      services. Similarly communications with the intent to influence made by an
      engineer providing engineering analysis prior to the preparation or submission
      of an bid or proposal are not allowable under this section since the engineer
      is
      providing technical services but not directly in the preparation, submission
      or
      negotiation of a covered Federal action.

    

                     (C)
      Requirements imposed by or pursuant to law as a condition for receiving a
      covered Federal award include those required by law or regulation and any other
      requirements in the actual award documents.

    

                     (D)
      Only those services expressly authorized by subdivisions (b)(3)(ii)(A)(1) and
      (2) of this clause are permitted under this clause.

    

    (E)
      The
      reporting requirements of FAR 3.803(a) shall not apply with respect to payments
      of reasonable compensation made to regularly employed officer or employees
      of a
      person.

    

    
      
        
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              (iii)
      Selling activities by independent sales representatives. The prohibition on
      the
      use of appropriated funds, in subparagraph (b)(1) of this clause, does not
      apply
      to the

    following
      selling activities before an agency by independent sales representatives,
      provided such activities are prior to formal solicitation by an agency and
      are
      specifically limited to the merits of the matter:

    

                     (A)
      Discussing with an agency (including individual demonstrations) the qualities
      and characteristics of the person's products or services, conditions or terms
      of
      sale, and service capabilities; and

    

                     (B)
      Technical discussions and other activities regarding the application or
      adaptation of the person's products services for an agency's use.

    

    (c)
      Disclosure.

     

        
      (1) The Contractor who requests or receives from an agency a Federal contract
      shall file with that agency a disclosure form, OMB standard form LLL, Disclosure
      of Lobbying Activities, if such person has made or has agreed to make any
      payment using nonappropriated funds (to include profits from any covered Federal
      action), which would be prohibited under subparagraph (b)(1) of this clause,
      if
      paid for with appropriated funds.

    

         (2)
      The Contractor shall file a disclosure form at the end of each calendar quarter
      in which there occurs any event that materially affects the accuracy of the
      information contained in any disclosure form previously filed by such person
      under subparagraph (c)(1) of this clause. An event that materially affects
      the
      accuracy of the information reported includes-

    

              (i)
      A cumulative increase of $25,000 or more in the amount paid or expect to be
      paid
      for influencing or attempting to influence a covered Federal action;
      or

    

              (ii)
      A change in the person(s) or individual(s) influencing or attempting to
      influence a covered Federal action; or

    

              (iii)
      A change in the officer(s), employee(s), or Member(s) contacted influence or
      attempt to influence a covered Federal action.

     

        
      (3) The Contractor shall require the submittal of a certification, and if
      required, a disclosure form by any person who requests or receives any
      subcontract exceeding $100,000 under the Federal contract.

     

        
      (4) All subcontractor disclosure forms (but not certifications) shall be
      forwarded

    from
      tier
      to tier until received by the prime Contractor. The prime Contractor shall
      submit all disclosures to the Contracting Officer at the end of the calendar
      quarter in

    which
      the
      disclosure form is submitted by the subcontractor. Each subcontractor
      certification shall be retained in the subcontract file of the awarding
      Contractor.

    

    (d)
      Agreement. The Contractor agrees not to make any payment prohibited by this
      clause.

    

    (e)
      Penalties.

    

         (1)
      Any person who makes an expenditure prohibited under paragraph (a) of
      this

    clause
      or
      who fails to file or amend the disclosure form to be filed or amended by
      paragraph (b) of this clause shall be subject to civil penalties as provided
      by
      31 USC 1352. An imposition of a civil penalty does not prevent the Government
      from seeking any other remedy that may be applicable.

    

          (2)
      Contractors may rely without liability on the representation made by
      their

    subcontractors
      in the certification and disclosure form.

    

    (f)
      Cost
      allowability. Nothing in this clause makes allowable or reasonable any cost
      which would otherwise be unallowable or unreasonable. Conversely, costs made
      specifically unallowable by the requirements in this clause will not be made
      allowable under any other provision.

    

    
      
        
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    I.4.3                    
      DTAR 1052.219-75 MENTOR REQUIREMENTS AND EVALUATION (JAN  2000)

    

    (a)
      Mentor and protégé firms shall submit an evaluation to the Department of the
      Treasury’s OSBD at the conclusion of the mutually agreed upon program period,
      the conclusion of the contract, or the voluntary withdrawal by either party
      from
      the program, whichever occurs first. At the conclusion of each year in the
      mentor protégé program, the prime contractor and protégé will formally brief the
      Department of the Treasury Mentor -Protégé Program Manager regarding program
      accomplishments under their mentor-protégé agreements.

    

    (b)
      A
      mentor or protégé shall notify the OSBD and the contracting officer, in writing,
      at least 30 calendar days in advance of the effective date of the firm’s
      withdrawal from the program. A mentor firm shall notify the OSBD and the
      contracting officer upon receipt of a protégé’s notice of withdrawal from the
      program.

    

    

    I.4.4                      DTAR
      1052.228-70  INSURANCE (MAR 2002)

    

    In
      accordance with the clause entitled “Insurance -- Work on a Government
      Installation” [or “Insurance -- Liability to Third Persons”] in Section I,
      insurance of the following kinds and minimum amounts shall be provided and
      maintained during the entire period of performance of this
      contract:

    

    (a)
      Worker’s compensation and employer’s liability.  The contractor shall,
      as a minimum, meet the requirements specified at FAR 28.307-2(a).

    

    (b)
      General liability.  The contractor shall, as a minimum, meet the
      requirements specified at FAR 28.307-2(b).

    

    (c)
      Automobile liability.  The contractor shall, as a minimum, meet the
      requirements specified at FAR 28.307-2(c).

    

    

    I.4.5                      DTAR
      1052.204-9002 Personal Identity Verification of Contractor Personnel (Oct
      2005)

    

    The
      Contractor shall comply with Treasury and Bureau personal identity verification
      procedures that implement HSPD-12, OMB guidance memorandum M-05-24 and FIPS
      Pub
      201.

    

    The
      Contractor shall inset this clause in all subcontracts when the subcontractor
      is
      required to have physical access to a Federally controlled facility or access
      to
      a Federal information system.

    

    

    

    J.5                          
      DEPARTMENT OF THE TREASURY SMALL, HUBZone SMALL, SMALL
DISADVANTAGED, 

                 
WOMEN-OWNED
      SMALL, VETERAN-OWNED SMALL BUSINESS,
      & SERVICE DISABLED 

                 
VETERAN
      OWNED SMALL BUSINESS CONCERNS SUBCONTRACTING PLAN
      OUTLINE

    

    The
      following outline meets the minimum requirements of Public Law 95-507 and the
      Federal Acquisition Regulation (FAR) Subparts 19.7.  It is intended to
      be a guideline.  It is not intended to replace any existing corporate
      plan which is more extensive.  If assistance is needed to locate small
      business sources, contact the Director, Office of Small Business Programs (202)
      622-0530 or the bureau Small Business Specialist, Jodie Paustian, (202)
      283-1199.  Please note that the Department of the Treasury has
      subcontracting goals of 41% for small business, 3 % for HUBZone
      small business, 5 % for small disadvantaged business, 5 % for
      women-owned small business, and 3 % for Service Disabled Veteran-Owned
      small business concerns for fiscal year 2004.  For this
      procurement, the Department of the Treasury expects all proposed subcontracting
      plans to contain the following goals, at a minimum, for small business
41%, for HUBZone small business concerns 3 %, for small
      disadvantaged business concerns 5 %, for women-owned small business
      concerns 5 %, and for Service Disabled Veteran-Owned small business
      concerns 3 %.  Although there is no statutory goal for
      Veteran-Owned small business

    

    
      
        
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    (VOSB)
      concerns, a VOSB goal must be proposed in accordance with FAR 19.7 and should
      represent the offeror’s effort to provide the maximum practicable subcontracting
      opportunities for VOSBs.  These percentages shall be expressed as
      percentages of the total available subcontracting dollars.

    

    Identification
      Data:

    Company
      Name: __________________________________________________

    Address:
      _______________________________________________________

    Date
      Prepared: _____________ Solicitation Number: ______________________

    Item/Service:
      ____________________________________________________

    Place
      of
      Performance: ______________________________________________

    

    1.
      TYPE OF PLAN:  (Check only one).

    

    
      	 _____	
              INDIVIDUAL
                PLAN:  In this type of plan all elements are developed
                specifically for this contract and are applicable for the full term
                of
                this contract.

            

    

    

    
      	
               _____

            	
              MASTER
                PLAN:  In this type of plan, goals are developed for this
                contract; all other elements are standard.  The master plan must
                be approved every three (3) years.  Once incorporated into a
                contract with specific goals, it is valid for the life of the
                contract.

            

    

    

    
      	
              _____

            	
              COMMERCIAL
                PLAN:  This type of plan is used when the contractor sells
                products and services customarily used for non-government purposes.
                Plan/goals are negotiated with the initial agency on a company-wide
                basis
                rather than for individual contracts.  The plan is effective
                only during year approved.  The contractor must provide a copy
                of the initial agency approval, AND MUST SUBMIT AN ANNUAL SF 295
                TO
                TREASURY WITH A BREAKOUT OF SUBCONTRACTING PRORATED FOR TREASURY
                (WITH A
                BUREAU BREAKDOWN, IF
                POSSIBLE).

            

    

    

    

    2.
      GOALS:

    

    FAR
      19.704(a)(1) requires separate dollar and percentage goals for using small
      business concerns, HUBZone small business concerns, small disadvantaged business
      concerns, women-owned small business, veteran-owned small business, and service
      disabled veteran-owned small business concerns as subcontractors for the base
      year and each option year. (Please note that the goals for HUBZone small
      business, small disadvantaged business, women-owned small business,
      veteran-owned small business, and service disabled veteran-owned small business
      concerns are sub-sets of the small business goal).

    

    A.  Estimated
      dollar value of all planned subcontracting, i.e., to all types of business
      concerns under this contract is:

    

     

    FY____             
      FY_____                                                
FY______                                               
FY_____                                      
FY_______              
      

     

    BASE                          1ST
      OPTION                                           2ND
      OPTION                                           3RD
      OPTION                                4TH
      OPTION**

    $            
                           
$                    
                                          
$                     
                                          
$                                                      $                     

    
             %                          
                 %                                                    
           %                                               
             %                                
                   %

    

     

    

    B.  Estimated
      dollar value* and percentage of planned subcontract­ing to small business
      concerns is:

    (*This
      figure includes the amount in C., D., E., F., and G. below.)

    
      FY____             
        FY_____                                                
FY______                                               
FY_____                                      
FY_______              
        

       

      BASE                          1ST
        OPTION                                           2ND
        OPTION                                           3RD
        OPTION                                4TH
        OPTION**

      $            
                             
$                    
                                          
$                     
                                          
$                                                      $                     

      
               %                          
                   %                                                    
           %                                               
             %                                
                   %

      

    

    

     

    C.  Estimated
      dollar value and percentage of planned subcontracting to HUBZone small business
      concerns is:

    
      FY____             
        FY_____                                                
FY______                                               
FY_____                                      
FY_______              
        

       

      BASE                          1ST
        OPTION                                           2ND
        OPTION                                           3RD
        OPTION                                4TH
        OPTION**

      $            
                             
$                    
                                          
$                     
                                          
$                                                      $                     

      
               %                          
                   %                                                    
           %                                               
             %                                
                   %

      

    

     

     

    
      
        
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    D.  Estimated
      dollar value and percentage of planned subcontract­ing to small
      disadvantaged business concerns is:

    

    
      FY____             
        FY_____                                                
FY______                                               
FY_____                                      
FY_______              
        

       

      BASE                          1ST
        OPTION                                           2ND
        OPTION                                           3RD
        OPTION                                4TH
        OPTION**

      $            
                             
$                    
                                          
$                     
                                          
$                                                      $                     

      
               %                          
                   %                                                    
           %                                               
             %                                
                   %

      

    E.  Estimated
      dollar value and percentage of planned subcontract­ing to small women-owned
      business concerns is:

    

    
      FY____             
        FY_____                                                
FY______                                               
FY_____                                      
FY_______              
        

       

      BASE                          1ST
        OPTION                                           2ND
        OPTION                                           3RD
        OPTION                                4TH
        OPTION**

      $            
                             
$                    
                                          
$                     
                                          
$                                                      $                     

      
               %                          
                   %                                                    
           %                                               
             %                                
                   %

         

         

      

    

    F.  Estimated
      dollar value and percentage of planned subcontract­ing to veteran-owned
      small business concerns is:

    

    
      FY____             
        FY_____                                                
FY______                                               
FY_____                                      
FY_______              
        

       

      BASE                          1ST
        OPTION                                           2ND
        OPTION                                           3RD
        OPTION                                4TH
        OPTION**

      $            
                             
$                    
                                          
$                     
                                          
$                                                      $                     

      
               %                          
                   %                                                    
           %                                               
             %                                
                   %

         

         

      

    

    G.  Estimated
      dollar value and percentage of planned subcontract­ing to service disabled
      veteran-owned small business concerns is:

    
      FY____             
        FY_____                                                
FY______                                               
FY_____                                      
FY_______              
        

       

      BASE                          1ST
        OPTION                                           2ND
        OPTION                                           3RD
        OPTION                                4TH
        OPTION**

      $            
                             
$                    
                                          
$                     
                                          
$                                                      $                     

      
               %                          
                   %                                                    
           %                                               
             %                                
                   %

         

         

      

    

    **IF
      ANY
      CONTRACT HAS MORE THAN FOUR OPTIONS, PLEASE ATTACH ADDITIONAL SHEETS SHOWING
      DOLLAR AMOUNTS AND PERCENTAGES.

    

    
      	
              H.

            	
              Supplies
                and/or services to be subcontracted under this contract, business
                size
                (i.e., SB, HUBZone, SDB, WOB, VOSB, SDVOSB, and LB), and the estimated
                dollar expenditure, are: (Check all that
                apply).

            

    

     

     

    SUPPLY/        COMPANY       
BUSINESS        DOLLAR

    
      SERVICE        NAME          
 SIZE               AMOUNT

                                    (IF
        KNOWN)

    

                                               (SB,
      HUBZone, SDB, WOB,

      VOSB,
      SDVOSB, LB)

     

     

    ________________________________________________________________

    
      ________________________________________________________________

      
        ________________________________________________________________

        
          ________________________________________________________________

          
            ________________________________________________________________

              ________________________________________________________________
 (Attach
                additional sheets if necessary.)

               

            

          

        

      

    

    
      	
              I.

            	
              Explain
                the methods used to develop the subcontracting goals for small, HUBZone
                small business, small disadvantaged, women-owned small business,
                veteran-owned small business, and service disabled
                veteran-owned

            

    

    

    
      
        
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              small
                business concerns.  Explain how the product and service areas to
                be subcontracted were established, how the areas to be subcon­tracted
                to small, HUBZone small business, small disadvantaged, women-owned
                small,
                veteran-owned small business, and service disabled veteran-owned
                small
                businesses were determined, and how the capabilities of small, HUBZone
                small,
                small disadvan­taged, women-owned small, veteran-owned and service
                disabled
                veteran-owned small businesses were deter­mined.  Identify
                all source lists used in the determination
                process.

            

    

     

    ______________________________________________________________________________

    ______________________________________________________________________________

    ______________________________________________________________________________

    ______________________________________________________________________________

    ______________________________________________________________________________

    ______________________________________________________________________________

    ______________________________________________________________________________

    

    J.           Indirect
      and overhead costs      ______ HAVE
      BEEN         ______ HAVE NOT
      BEEN

    

    included
      in the dollar and percentage subcontracting goals stated
      above.  (Check one.)

    

    

    
      	
              K.

            	
              If
                indirect and overhead costs HAVE BEEN included, explain the method
                used to
                determine the proportionate share of such costs to be allocated as
                subcontracts to small, HUBZone small, small disadvantaged, women-owned
                small, veteran-owned, and service disabled veteran-owned small business
                concerns.

            

    

    ______________________________________________________________________________

    ______________________________________________________________________________

    ______________________________________________________________________________

    ______________________________________________________________________________

    ______________________________________________________________________________

    ______________________________________________________________________________

    ______________________________________________________________________________

    ______________________________________________________________________________

    ______________________________________________________________________________

    ______________________________________________________________________________

    

    

    3.
      PLAN ADMINISTRATOR:

    

    FAR
      19.704(a)(7) requires information about the company employee who will administer
      the subcontracting program.  Please provide the name, title, address,
      phone number, position within the corporate structure and the duties of that
      employee.

    

    Name:                                                                                                                                                     
                 

    Title:         
                                                                                                                        
                                      

    Address:                                                                                                                                                           
      

                                                                                                                                                                    
          
      

    Telephone:                                                                                                                                                       
      

    Fax:                                                                                                                                                  
                       

    E:mail
      Address:                                                                                                                                                 

    Position:                                                                                                                                                                                                                                
                                

    Duties:  Does
      the individual named above perform the following?  (If NO is checked,
      please indicate who in the company performs those duties, or indicate why the
      duties are not performed in your company).

    

    
      	
                A.

            	
              Developing
                and promoting company/division policy statements that demonstrate
                the
                company's/division's support for awarding contracts and subcontracts
                to
                small, HUBZone small, small disadvantaged, women-owned small,
                veteran-owned, and service disabled veteran-owned small business
                concerns.

            

    

    

    
      
        
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      __________YES                                           __________NO

       

    

    
      	
                B.

            	
              Developing
                and maintaining bidders' lists of small, HUBZone small, small
                disadvantaged, women-owned small, veteran-owned small, and service
                disabled veteran-owned small business concerns from all possible
                sources.

            

    

    __________YES                                           __________NO

    

    
      	
                C.

            	
              Ensuring
                periodic rotation of potential subcontractors on bidders'
                lists.

            

    

    
      __________YES                                           __________NO

    
      	
                D.

            	
              Assuring
                that small, HUBZone small, small disadvantaged, women-owned small,
                veteran-owned small, and service disabled veteran-owned small businesses
                are included on the bidders' list for every subcontract solicitation
                for
                products and services they are capable of
                providing.

            

    

    __________YES                                           __________NO

    

    
      	
                E.

            	
              Ensuring
                that subcontract procurement "packages" are designed to permit the
                maximum
                possible participation of small, HUBZone small, small disadvantaged,
                women-owned small, veteran-owned small, and service disabled veteran-owned
                small businesses.

            

    

    __________YES                                           __________NO

    

    
      	
                F.

            	
              Reviewing
                subcontract solicitations to remove statements, clauses, etc., which
                might
                tend to restrict or prohibit small, HUBZone small, small disadvantaged,
                women-owned small, veteran-owned small, and service disabled veteran-owned
                small business participation.

            

    

    __________YES                                           __________NO

    

    
      	
                G.

            	
              Ensuring
                that the subcontract bid proposal review board documents its reasons
                for
                not selecting any low bids submitted by small, HUBZone small, small
                disadvantaged, women-owned small, veteran-owned small, and service
                disabled veteran-owned small business
                concerns.

            

    

    __________YES                                           __________NO

    

    
      	
                H.

            	
              Overseeing
                the establishment and maintenance of contract and subcontract award
                records.

            

    

    
      __________YES                                           __________NO

    
      	
                I.

            	
              Attending
                or arranging for the attendance of company counsel­ors at Business
                Opportunity Workshops, Minority Business Enterprise Seminars, Trade
                Fairs,
                etc.

            

    

    
      __________YES                                           __________NO

    
      	
                J.

            	
              Directly
                or indirectly counseling small, HUBZone small, small disadvantaged,
                women-owned small, veteran-owned small, and service disabled veteran-owned
                small business concerns on subcontracting opportuni­ties and how to
                prepare responsive bids to the
                company.

            

    

    __________YES                                           __________NO

    

    
      	
                K.

            	
              Providing
                notice to subcontractors concerning penalties for misrepresentations
                of
                business status as small, HUBZone small, small disad­vantaged,
                women-owned small, veteran-owned small, or service disabled veteran-owned
                small business for the purpose of obtaining a subcontract that is
                to be
                included as part or all of a goal contained in the contractor's
                subcontracting plan.

            

    

    __________YES                                           __________NO

    

    
      	
                L.

            	
              Conducting
                or arranging training for purchasing personnel regarding the intent
                and
                impact of Public Law 95-507 on purchasing
                procedures.

            

    

    __________YES                                           __________NO

    
      	
                M.

            	
              Developing
                and maintaining an incentive program for buyers which support the
                subcontracting program.

            

    

    __________YES                                           __________NO

    

    
      	
                N.

            	
              Monitoring
                the company's performance and making any adjust­ments necessary to
                achieve the subcontract plan goals.

            

    

    __________YES                                           __________NO

    
      
        
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          TIPSS-3
            Federal Statement of Work

        

      

    

     

    
      	
                O.

            	
              Preparing
                and submitting timely reports.

            

    

    __________YES                                           __________NO

    

    
      	
                P.

            	
              Coordinating
                the company's activities during compliance reviews by Federal
                agencies.

            

    

    __________YES                                           __________NO

    

    

    4.
      EQUITABLE OPPORTUNITY

    

    FAR
      19.704(a)(8) requires a description of the efforts your company will make to
      ensure that small, HUBZone small, small disadvantaged, women-owned small,
      veteran-owned small, and service disabled veteran-owned small business concerns
      will have an equitable opportunity to compete for
      subcontracts.  (Check all that apply.)

    

    
      	
                A.

            	
              Outreach
                efforts to obtain sources:

            

    

    

         Contacting
      minority and small business trade associations

         Contacting
      business development organizations

         Attending
      small and minority business procurement conferences and

         trade
      fairs

         Finding
      sources from the Small Business Administra­tion's

         Procurement
      Network (ProNet)

    

    
      	
                B.

            	
              Internal
                efforts to guide and encourage purchasing
                personnel:

            

    

    

         Presenting
      workshops, seminars and training programs

         Establishing,
      maintaining and using small, HUBZone small, small

         disad­vantaged,
      women-owned small, veteran-owned small, and
      service      

        
      disabled veteran-owned small business source lists, guides and

         other
      data for soliciting subcontracts

         Monitoring
      activities to evaluate compliance with the

                        
      subcontracting plan

    

    
      	
                C.

            	
              Additional
                efforts: (Please describe.)

            

    

    _____________________________________________________________________________

    _____________________________________________________________________________

    _____________________________________________________________________________

    _____________________________________________________________________________

    _____________________________________________________________________________

    

    

    5.
      CLAUSE INCLUSION AND FLOW DOWN

    

    FAR
      19.704(a)(9) requires that your company include FAR 52.219-8, "Utilization
      of
      Small Business Concerns", in all subcontracts that offer further subcontracting
      opportunities.  Your company must require all subcontractors, except
      small business concerns, that receive subcontracts in excess of $500,000
      ($1,000,000 for construction) to adopt and comply with a plan similar to the
      plan required by FAR 52.219-9, "Small Business Subcontracting
      Plan."

    

    
      
        
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          TIPSS-3
            Federal Statement of Work

        

      

    

    

    Your
      company agrees that the clause will be included and that the plans will be
      reviewed against the minimum requirements for such plans.  The
      acceptability of percentage goals for small, HUBZone small, small disadvantaged,
      women-owned small, veteran-owned small, and service disabled veteran-owned
      small
      business concerns must be determined on a case-by-case basis depending on the
      supplies and services involved, the availability of potential small, HUBZone
      small, small disadvantaged, women-owned small, veteran-owned small, and service
      disabled veteran-owned small business subcontractors and prior
      experience.  Once the plans are negotiated, approved, and
      imple­mented, the plans must be monitored through the submission of periodic
      reports, including Standard Form (SF) 294 and SF 295 reports.

    

    6.
      REPORTING AND COOPERATION

    

    FAR
      19.704(a)(10) requires that your company (1) cooperate in any studies or surveys
      as may be required, (2) submit periodic reports which show compliance with
      the
      subcontracting plan; (3) submit Standard Form (SF) 294, "Subcontracting Report
      for Individual Contracts," and SF 295, "Summary Subcontract Report," in
      accordance with the instructions on the forms; and (4) ensure that
      subcontrac­tors agree to submit SF 294 and SF 295.  The cognizant
      contracting officer of the Treasury bureau must receive the report(s) within
      30
      days after the close of each calendar period.  That
      is:

    

    Calendar
      Period                        Report
      Due                     Date
      Due                      Send
      Report To

    10/01--03/31SF                                
      294                                04/30                      bureau
      contracting officer

    04/01--09/30                                SF
      294                                10/30                      bureau
      contracting officer

    10/01--09/30                                SF
      295                                10/30                      bureau
      contracting officer

    

    NOTE:  A
      copy of the 295 report must also be sent to

    the
      Director, Office of Small Business Development,

    Department
      of the Treasury.  The address is as follows:

    

    Department
      of the Treasury

    Attn:
      Director, Office of Small

    Business
      Development

    1500
      Pennsylvania Avenue, N.W.

    Mail
      Code
      655 15th/6099

    Washington,
      DC 20220

    

    

    7.
      RECORDKEEPING

    

    FAR
      19.704(a)(11) requires a list of the types of records your company will maintain
      to demonstrate the procedures adopted to comply with the requirements and goals
      in the subcontracting plan.  (Check all that
      apply.)  (If NO is checked, please indicate why these types of records
      are not maintained).

    

    

    
      	
               A.

            	
              Small,
                HUBZone small, small disadvantaged, women-owned small, veteran-owned
                small, and service disabled veteran-owned small business concern
                source
                lists, guides, and other data identifying such
                vendors.

            

    

    __________YES                                           __________NO

    

    
      	
                B.

            	
              Organizations
                contacted for small, HUBZone small, small disadvantaged, women-owned
                small, veteran-owned small, and service disabled veteran-owned small
                business sources.

            

    

    __________YES                                           __________NO

    
      	
                C.

            	
              On
                a contract-by-contract basis, records on all subcontract solicitations
                over $100,000 which indicate for each solicita­tion (1) whether small
                business concerns were solicited, and if not, why not; (2)whether
                HUBZone
                small business concerns were solicited, and if not, why not; (3)whether
                small disadvantaged business concerns were solicited, and if not,
                why not;
                (4) whether women-owned small business concerns were solicited, and
                if
                not, why not; (5) whether veteran-owned small business concerns were
                solicited, and if not, why not; (6) whether service disabled veteran-owned
                small businesses were solicited, and if not, why not; and (7) reasons
                for
                the failure of solicited small, HUBZone small, small disadvantaged,
                women-owned small, veteran-owned small, and service disabled veteran-owned
                small business concerns to receive the subcontract
                award.

            

    

    

    
      
        
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          TIPSS-3
            Federal Statement of Work

        

      

    

    

    __________YES                                           __________NO

    

    
      	
                D.

            	
              Records
                to support other outreach efforts, e.g., contacts with minority and
                small
                business trade associations, attendance at small and minority business
                procurement conference and trade
                fairs.

            

    

    __________YES                                           __________NO

    

    
      	
                E.

            	
              Records
                to support internal activities to (1) guide and encourage purchasing
                personnel, e.g., workshops, seminars, training programs, incentive
                awards;
                and (2) monitor activi­ties to evaluate
                compliance.

            

    

    __________YES                                           __________NO

    

    
      	
                F.

            	
              On
                a contract-by-contract basis, records to support subcon­tract award
                data including the name, address and business size and ownership
                status
                (HUBZone, SDB, WOB, VOSB, SDVOSB, etc.) of each subcontractor. (This
                item
                is not required for company or division-wide commercial
                plans.)

            

    

    __________YES                                           __________NO

    

    
      	
                G.

            	
              Other
                records to support your compliance with the subcontract­ing
                plan:  (Please describe)

            

    

    ________________________________________________________________________

    ________________________________________________________________________

    ________________________________________________________________________

    ________________________________________________________________________

    ________________________________________________________________________

    

    

    8.
      TIMELY PAYMENTS TO SUBCONTRACTORS

    

    FAR
      19.702 requires your company to establish and use procedures to ensure
      the timely payment of amounts due pursuant to the terms of your subcontracts
      with small business concerns, HUBZone small business concerns, small
      disadvan­taged business concerns, women-owned small business concerns,
      veteran-owned small business concerns, and service disabled veteran-owned small
      business concerns.

    

    Your
      company has established and uses such procedures:

     __________YES                           __________NO

    

    

    9.
      DESCRIPTION OF GOOD FAITH EFFORT

    

    Maximum
      practicable utilization of small, HUBZone small, small disadvantaged women-owned
      small, veteran-owned small, and service disabled veteran-owned small business
      concerns as subcontractors in Government contracts is a matter

    of
      national interest with both social and economic benefits.  When a
      contractor fails to make a good faith effort to comply with a subcontracting
      plan, these objectives are not achieved, and 15 U.S.C. 637(d)(4)(F) directs
      that
      liquidated damages shall be paid by the contractor.  In order to
      demonstrate your compliance with a good faith effort to achieve the small,
      HUBZone small, small disadvantaged, women-owned small, veteran-owned small,
      and
      service disabled veteran-owned small business subcontracting goals,
outline the steps your company plans to take.  These
      steps will be negotiated with the contracting officer prior to approval of
      the
      plan.

    ______________________________________________________________________________

    ______________________________________________________________________________

    ______________________________________________________________________________

    ______________________________________________________________________________

    ______________________________________________________________________________

    ______________________________________________________________________________

    ______________________________________________________________________________

    

    10.
      SIGNATURES REQUIRED

    

    This
      subcontracting plan was SUBMITTED by:

    

    
      
        
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          TIPSS-3
            Federal Statement of Work

        

      

    

    

    Signature:

    Typed
      Name:

    Title:

    Date:

    

    

    This
      subcontracting plan was REVIEWED by:

    

    Signature:

    Typed
      Name:

    Title:
      Contracting Officer

    Date:

    

    This
      subcontracting plan was REVIEWED by:

    

    Signature:

    Typed
      Name:

    Title:
      Small Business Specialist

    Date:

    

    This
      subcontracting plan was REVIEWED by:

    

    Signature:

    Typed
      Name:

    Title:
      Small Business Administration Representative

    Date:

    

    This
      subcontracting plan was APPROVED by:

    

    Signature:

    Typed
      Name:

    Title:
      Director, Office of Small Business Programs (or designee)

    Date:

    

    This
      subcontracting plan was ACCEPTED by:

    

    Signature:

    Typed
      Name:

    Title:
      Contracting Officer

    Date:

    

    J.8  
      IRS CAPABILITY MATURITY MODEL (CMMI®)
      REQUIREMENTS

    

    J.8.1                      PRE-AWARD
      CMMI®
VALIDATION

    

    The
      goal
      of the Capability Maturity Model Integration® (CMMI®)
      validation effort
      during this source selection is to validate that Contractors selected to perform
      IRS software development work are capable of practicing the Software Engineering
      Institute (SEIsm) CMMI Level
      2
      maturity.

    

    The
      source selection practice as suggested by the SEI recommends that the procuring
      agency field a Standard CMMI Appraisal Method for Process Improvement(sm) (SCAMPI(sm))
      team to
      determine prospective software development Contractors’ CMMI process maturity
      level. This is a very time-consuming, labor-intensive process and is not
      practical for multiple award acquisitions that are expected to consider many
      vendors. The objective of this approach, therefore, is to provide a means of
      validating Contractor process maturity within the time constraints of the
      acquisition.

    

    
      
        
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          TIPSS-3
            Federal Statement of Work

        

      

    

    

    Large
      Business Offerors and Small Business Offerors, who elect to compete under the
      full and open competition, shall provide evidence of process maturity in
      accordance with the IRS Policy and Procedure 39.1(B) Capability Maturity Model
      for software through the submission of SCAMPI results.

    
 

    J.8.2                      DATA
      SUBMISSION REQUIREMENTS

    

    Data
      submitted by Offerors may vary depending on whether the Offeror seeks award
      under the full and open competition or the partial small business set-aside
      competition.

    

    Offerors
      proposing under the full and open competition shall submit data from at least
      one external SCAMPI, but no more than three, that demonstrates software
      development compliance with SEI’s Staged CMMI Version 1.1. The submission
      material shall be dated within 12 months from the first day of the on-site
      period to the proposal due date to include the following
      information:

    

    
      	
               

            	
               ̈

            	
              Names,
                titles, organizational affiliation, address, phone number, and credentials
                of the external evaluation team

            

    

    
      	
               

            	
               ̈

            	
              Detailed
                final findings report and briefing

            

    

    
      	
               

            	
               ̈

            	
              Organizational
                chart showing affiliation of evaluated organization and proposing
                organization and number and type of staff associated with each component
                represented by the organizational
                chart

            

    

    
      	
               

            	
               ̈

            	
              Project
                profiles for each project evaluated providing details on the attributes
                of
                the projects: project description, application domain, software size,
                life
                cycle, project schedule, current phase of the project, and staffing
                profile

            

    

    
      	
               

            	
               ̈

            	
              On-site
                period dates of performance and interview schedule detailing names,
                roles,
                and organizational affiliations of individuals
                interviewed

            

    

    
 

    J.8.3                      CMMI
      LEVEL 2 VALIDATION

    

    Each
      Offeror’s submission will be validated by members of the IRS CMMI Review Team.
      The estimated completion time for each validation is no longer than 2 — 3 days
      per Offeror.

    

    Acceptance
      Criteria: The SCAMPI information submitted is validated against established
      criteria and must clearly indicate:

    
      	
               

            	
              -

            	
              the
                offeror is at a minimum, a CMMI Level 2
                organization

            

    

    
      	
               

            	
              -

            	
              was
                performed within 12 months from the first day of the on-site period
                to the
                proposal due date

            

    

    
      	
               

            	
              -

            	
              was
                performed on the proposing
                organization

            

    

    
      	
               

            	
              -

            	
              was
                performed in accordance with Assessment Requirements for CMMI Version
                V.1.1 (ARC)

            

    

    
    

    
      
        	
                 

              	
                ·

              	
                examined
                  at least 3 projects

              

      

      
      

    

    
      	
               

            	
              ·

            	
              covered,
                in the aggregate, at least 20% of the technical workforce proposed
                for
                software development.

            

    

    
    

    

    
      	
               

            	
              -

            	
              used
                SEI framework: CMMI v 1.1 or later

            

    

    
      	
               

            	
              -

            	
              considered
                at least all process areas in Level 2 such as Requirements Management,
                Software Project Planning, Software Project Tracking and Oversight,
                Software Subcontract Management, Software Quality Assurance and Software
                Configuration Management (the software subcontract management process
                area
                may be outscoped if the proposing organization does not propose to
                use
                subcontractors for any portion of the software
                effort)

            

    

    
      	
               

            	
              -

            	
              all
                Level 2 process areas were evaluated as “fully
                satisfied”

            

    

    
      	
               

            	
              -

            	
              was
                performed by qualified external assessors;
                specifically:

            

    

    
      
        	
                 

              	
                ·

              	
                all
                  appraisal team members were SEI trained and certified in the Introduction
                  to CMMI (Staged Representation) course and Intermediate Concepts
                  of
                  CMMI.

              

      

      
      

    

    
      	
               

            	
              ·

            	
              at
                least one member of the appraisal team has completed and is licensed
                and  certified by the SEI as a SCAMPI Lead Appraiser
                (certificates for appraisal team members is required including the
                SEI
                SCAMPI Lead Appraiser number)

            

    

    

    
      
        
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          TIPSS-3
            Federal Statement of Work

        

      

    

    

        J.8.4                      POST-AWARD
      MONITORING

    

    Contractors
      developing software for the IRS shall maintain Level 2 or better in the process
      areas for CMMI in order to continue to receive software tasking. The CMMI Review
      Team will monitor Contractor process maturity by:

    

    
      	
              ·

            	
              Using
                standard IRS Process Appraisal Review Methodology (PARM)
                processes,

            

    

    
      	
              ·

            	
              Performing
                annual cycles of review for CMMI,
                and

            

    

    
      	
              ·

            	
              Considering
                all types of appraisal data and process improvement infrastructure
                data as
                standardized by the PARM process.

            

    

     

    J.9           SOFTWARE
      DEVELOPMENT STANDARDS, LIFE CYCLE (SDLC) GUIDELINES

     

    

    

        J.9.1                      Software
      Development Life Cycle (SDLC)

    

    The
      Department of Treasury Directive (TD) TD-84-01 establishes the IRM 2.5.X SERIES
      and related IRMs as the authoritative guide for software development
      methodology.  This set of IRMs provides comprehensive guidance on what
      technical documentation is necessary for development.

    

    System
      Information Bulletin (SIB)#S-00-06-01 dated July 28, 2000, compliments the
      SDLC/eSDLC by listing all required Project Folder requirements, as set forth
      by
      the ITS Process Improvement and Software Quality Section, Internal Management
      Division, BSD.  This SIB will be replaced by IRM 2.5.15, which is
      currently in the review process.

    

    

        J.9.2                      Enterprise
      Life Cycle (ELC)

     

    

     

    The
      Internal Revenue Service (IRS) recognized a need to standardize management
      practices throughout major organizations. Examples of three primary project
      management methodologies used in the IRS are: IRS/Prime's Enterprise Life Cycle
      (ELC), Business Systems Development Enterprise Life Cycle Lite (ELC Lite),
      and
      Wage and Investment Business Systems Planning Tier B ELC. While each of these
      disciplines represent responses by organizations to their unique business needs,
      a common method is necessary to achieve the following goals:

     

     

    
      	
               

            	
              ·

            	
              Alignment
                with the modernization of IRS
                systems

            

    

     

     

    
      	
               

            	
              ·

            	
              Compliance
                with the Software Engineering Institute's Software Capability Maturity
                Model (SW CMM)

            

    

     

     

    
      	
               

            	
              ·

            	
              Standardization
                of tools and processes

            

    

     

     

    
      	
               

            	
              ·

            	
              Support
                Information Technology Services (ITS) business maintenance and existing
                systems.

            

    

     

     

    
      	
               

            	
              ·

            	
              Support
                of a taxonomy or common terminology throughout
                IRS.

            

    

     

    Projects
      are currently categorized by the following Tier designations:

     

    

    
      
        
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          TIPSS-3
            Federal Statement of Work

        

      

    

    

     

    
      
        	
                 

              	
                ·

              	
                Tier
                  A Technical Modernization Projects – Resources devoted to Information
                  Technology Investment Account (ITIA)-funded projects and managed
                  by the
                  Business Systems Modernization Office (BSMO). This includes resources
                  assigned as members of an Integrated Product Team (IPT), resources
                  supporting an IPT, and ad hoc support to BSMO-sponsored work. Project
                  scale is large with a 2-to 3-year
                  timeframe.

              

      

       

    

     

    
      	
               

            	
              ·

            	
              Tier
                B Improvement Projects - Resources devoted to new improvements, medium
                size (1- to 2-year timeframe) and funded from improvement programs
                budget.

            

    

     

     

    
      	
               

            	
              ·

            	
              Tier
                C Enhancements/ Stay-In-Business Projects - Resources devoted to
                all other
                types of projects (e.g., sustaining operations, legislative changes,
                and
                small enhancements to sustaining operations) funded from regular
                sustaining operations budget.

            

    

     

    

     

    Tier
      projects will use the following versions of ELC:

     

     

    
      	
               

            	
              ·

            	
              Tier
                A projects will continue to follow the mandated ELC Catalyst processes
                as
                managed through BSMO.

            

    

     

     

    
      	
               

            	
              ·

            	
              Tier
                B projects will use, at a minimum, the full life cycle as prescribed
                by
                this ELC Lite methodology. (Reference Part
                II)

            

    

     

     

    
      	
               

            	
              ·

            	
              New
                Tier C projects will use, at a minimum, an abbreviated life cycle
                as
                prescribed by this ELC Lite methodology (Reference Part III). It
                is also
                the preferred approach for on-going systems. Circumstances may exist
                to
                warrant exceptions, which should be determined an individual
                basis.

            

    

     

    Existing
      Internal Revenue Manual (IRM) processes, such as the Software Development Life
      Cycle (SDLC), will continue to be used, as well as all Modernization Information
      & Technology Services (MITS)-wide and IRS-wide standards and
      practices.

    

    

     

    J.11           TOTAL
      INFORMATION PROCESSING SUPPORT SERVICES (TIPSS) – 3CONDITIONAL ACCESS

                      TO
      SENSITIVE BUT UNCLASSIFIED INFORMATION NON-DISCLOSURE
      AGREEMENT

    

    I,
       , hereby consent to the terms in this Agreement in consideration of
      my being granted conditional access to certain United States Government
      documents or material containing sensitive but unclassified
      information.

    

    I
      understand and agree to the following terms and conditions:

    

    
      	
              1.

            	
              By
                being granted conditional access to sensitive but unclassified
                information, the United States Government has placed special confidence
                and trust in me and I am obligated to protect this information from
                unauthorized disclosure, in accordance with the terms of this
                Agreement.

            

    

    

    
      	
              2.

            	
              As
                used in this Agreement, sensitive but unclassified information is
                any
                information, the loss, misuse, or unauthorized access to or modification
                of which could adversely affect the national interest or the conduct
                of
                Federal programs, or the privacy to which individuals are entitled
                under
                Title 5 U.S.C. § 552a, but which has not been specifically authorized
                under criteria established by an Executive order or an Act of Congress
                to
                be kept secret in the interest of national defense or foreign
                policy.

            

    

    

    
      	
              3.

            	
              I
                am being granted conditional access contingent upon my execution
                of this
                Agreement for the sole purpose of the Total
                Information Processing Support Services (TIPSS) – 3, Contract Number to be
                determined.  This approval will permit me conditional access to
                certain information, (e.g., documents, memoranda, reports, testimony,
                deliberations, maps, drawings, schematics, plans, assessments, as
                identified under individual Task Orders) and/or to attend meetings
                in
                which such information is discussed or otherwise made available to
                me.  This Agreement will not allow me access to materials which
                Department of the Treasury, the Internal Revenue Service, Treasury
                Bureaus, and other federal agencies
                have

            

    

    

    
      
        
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          TIPSS-3
            Federal Statement of Work

        

      

    

    

    
      	
               

            	
              predetermined,
                in its sole discretion, are inappropriate for disclosure pursuant
                to this
                Agreement.  This may include sensitive but unclassified
                information provided to Treasury by other agencies of the United
                States
                Government.

            

    

    

    
      	
              4.

            	
              I
                will never divulge any sensitive but unclassified information, which
                is
                provided to me pursuant to this Agreement to anyone, with the exception
                of
                being advised in writing by the Department of the Treasury, the Internal
                Revenue Service, Treasury Bureaus, and other federal agencies that
                the
                individual is authorized to receive it.  Should I desire to make
                use of any sensitive but unclassified information, I will do so in
                accordance with paragraph 6 of this
                Agreement.

            

    

    I
      will
      submit to the Department of the Treasury, the Internal Revenue Service, Treasury
      Bureaus, and other federal agencies as specified in the individual Task Orders
      for security review.  Prior to any submission for publication, any
      book, article, column or other written work for the general publication that
      is
      based upon any knowledge, obtained during the course of my work on
      TIPSS-3.  This is placed in order for the Department of the Treasury,
      the Internal Revenue Service, Treasury Bureaus, and other federal agencies,
      to
      ensure that no sensitive but unclassified information has been
      disclosed.

    

    
      	
              5.

            	
              I
                hereby assign to the United States Government all royalties,
                remunerations, and emoluments that have resulted, will result or
                may
                result from any disclosure, publication, or revelation of sensitive
                but
                unclassified information not consistent with the terms of this
                Agreement.

            

    

    

    
      	
              6.

            	
              If
                I, am permitted at the sole discretion of the Department of the Treasury,
                the Internal Revenue Service, Treasury Bureaus, and other federal
                agencies, to review any official documents containing sensitive but
                unclassified information, such review will be conducted at a secure
                facility or under circumstances, which will maintain the security
                protection of such material.  I will not be permitted to and
                will not make any copies of documents or parts of documents to which
                conditional access is granted to me.  All notes taken during the
                course of such access will remain with the Department of the Treasury,
                the
                Internal Revenue Service, Treasury Bureaus, and other federal agencies,
                and placed in secure storage.  If it is determined differently,
                by the Department of the Treasury, the Internal Revenue Service,
                Treasury
                Bureaus, and other federal agency officials that the notes contain
                no
                sensitive but unclassified information, they will not be securely
                stored.  If I wish to have the notes released to me, the
                Department of the Treasury, the Internal Revenue Service, Treasury
                Bureaus, and other federal agency officials will review the notes
                for the
                purposes of deleting any sensitive but unclassified information to
                create
                a redacted copy of the notes.  If I do not wish a review of any
                notes that I make, those notes will remain sealed inside of secure
                storage
                at the Department of the Treasury, the Internal Revenue Service,
                Treasury
                Bureaus, and other federal
                agencies.

            

    

    

    
      	
              7.

            	
              If
                I violate the terms and conditions of this Agreement, I understand
                that
                the unauthorized disclosure of sensitive but unclassified information
                could compromise the security of the Department of the Treasury,
                the
                Internal Revenue Service, Treasury Bureaus, and other federal
                agencies.

            

    

    

    
      	
              8.

            	
              If
                I violate the terms and conditions of this Agreement, such violation
                may
                result in the cancellation of my conditional access to sensitive
                but
                unclassified information.

            

    

    This
      may
      serve as a basis for denying me conditional access to the
      Department of the Treasury, the Internal Revenue Service, Treasury Bureaus,
      and
      other federal agency information, both classified and sensitive but unclassified
      information in the future.  If I violate the terms and conditions of
      this Agreement, the United States may institute a civil action for damages
      or
      any other appropriate relief.  The willful disclosure of information
      to which I have agreed therein not to divulge may constitute a criminal
      offense.

    

    
      	
              9.

            	
              When
                and until I, am provided with a written release by the Department
                of the
                Treasury, the Internal Revenue Service, Treasury Bureaus, and other
                federal agencies from this Agreement or any portions of it, all conditions
                and obligations contained in this Agreement still apply.  My
                period of conditional access shall terminate at the conclusion of
                my work
                on TIPSS-3, and at all times
                thereafter.

            

    

    

    
      	
              10.

            	
              Each
                provision of this Agreement is severable.  If a court should
                find any provision of this Agreement to be, unenforceable, all other
                provisions shall remain in full force and
                effect.

            

    

    
      

      
        	
                11.

              	I understand that the United States Government
                may seek
                any remedy available to enforce this Agreement, including but not
                limited
                to, application for a court order prohibiting disclosure of information
                in
                breach of this Agreement.

      

    

    

    
      
        
          Form
            Release: 05/01 - Revision: 4/04

          
          

        

        
          --
            62
            --

          
            

          

        

        
          
          

          TIPSS-3
            Federal Statement of Work

        

      

    

    

    

     

    
      	
              12.  

            	
              By
                granting me conditional access to information in this context, the
                United
                States Government does not waive any statutory or common law evidentiary
                privileges or protections that it may assert in any administrative
                or
                court proceeding to protect any sensitive but unclassified information
                to
                which I have been given conditional access under the terms of this
                Agreement.

            

    

     

    

    
      	
              13.  

            	
              These
                restrictions are consistent with and do not supersede, conflict with
                or
                otherwise alter the employee obligations, rights or liabilities created
                by
                Executive Order 12356; of Section 7211 of Title 5, United States
                Code,
                which governs disclosures to Congress; Section 1034 of Title 10,
                United
                States Code as amended by the Military Whistleblower Protection Act,
                which
                governs disclosure to Congress by members of the military; Section
                2302(b)(8) of Title 5, United States Code, as amended by the Whistleblower
                Protection Act, which governs disclosures of illegality, waste, fraud,
                abuse or public health or safety threats; the Intelligence Identities
                Protection Act of 1982 (50 U.S.C. 421 et seq.), which governs disclosures
                that could expose confidential Government agents, and the statutes
                which
                protect against disclosure that may compromise the national
                security.  This includes Sections 641, 793, 794, 798, and 952 of
                Title 18, United States Code, and Section 4(b) of the Subversive
                Activities Act of 1950 (50 U.S.C. Section
                783(b).

            

    

     

    

     

    The
      definitions, requirements, obligations, rights, sanctions and liabilities
      created by said Executive Order are listed statutes, which incorporate into
      this
      Agreement and are controlling.

     

    

    
      
        	
                14.  

              	My execution of this Agreement shall not nullify
                or
                effect in any manner any other secrecy or nondisclosure Agreement
                which I
                have executed or may execute with the United States
                Government.

      

    

     

     

    
      
        	
                15.  

              	I make this Agreement in good faith, without mental
                reservation or purpose of evasion.

      

       

    

    

                                                                                                            
      ____________________          

    Name                                                                                                Date

    

    
      This
        Agreement was accepted by the undersigned on behalf of
        the Department of the Treasury, the Internal Revenue
        Service, Treasury Bureaus, and other federal agencies as a prior condition
        of
        conditional access to sensitive but unclassified information.

       

      ___________________________________                         
        ____________________

      Internal
        Revenue Service Representative            Date

      

      

      

    

    

    
      
        
          Form
            Release: 05/01 - Revision: 4/04

          
          

        

        
          --
            63
            --

          
            

          

        

        
          
          

          TIPSS-3
            Federal Statement of Work

        

      

    

    

     

    

    Attachment
      C

    

    Travel
      Expense Report

     

    

     

     Subcontractor
      Third Party Purchase Authorization

    Testing,
      Maintenance and SupportSSQA - Quality Requirements for commercially available
      softwareSSQA - Quality Requirements for customized or developed
      Software

    

    
      
        
          Form
            Release: 05/01 - Revision: 4/04

          
          

        

        
          --
            64
            --

          
          

          
            

            

          

        

        
          
          

          
          

        

      

    

    
      

      

    

    

    
      Amendment
        Letter

      

      Agreement
        #4902FP0169

      SOW#
        4905FP0783

      

      

      

      International
        Business
        Machines

      6300
        Diagonal Highway

      Boulder,
        CO 80301

      

      October
        24, 2006

      

      

      

      FuGEN,
        Inc.

      6001
        Montrose Road Suite 640

      Rockville,
        MD 20852

      Attention:  Mitchell
        Gross

      

      

      SUBJECT:  Exercise
        Option Period 1.

      

      

      Dear
        Mr.
        Gross,

      

      This
        letter serves as notice that IBM is exercising Option period 1 on TIPSS-#
        SOW
        No. 4905FP0783.

      

      The  new
        period begins October 28, 2006 and runs through October 27, 2007.

      

      Please
        retain this letter for your records.

      

      All
        other
        terms and conditions in the above referenced agreements except as stated
        herein
        remain unchanged.  Any questions or concerns should be addressed with
        me at 303-924-6124 or email liberato@us.ibm.com.

      

      Thank
        you
        for your continuing support.

      

      Gregory
        D. Liberatore, C.P.M.

      Advisory
        Procurement Professional

      IBM
        Client Services Procurement – Federal

      Phone:  303-924-6121  *  FAX
        845-191-5710

      Email:
        liberato@us.ibm.com.Exhibit
10.1

August 20, 2007

Patrick O’Shaughnessy

[redacted]

Dear Patrick,

It is my pleasure to
offer you the position of Chief Financial Officer, reporting to me. Your start
date would be August 21, 2007.

Patrick, your base salary
will be $300,000 per year with an annual review. You will be eligible for our
2007 company pro-rated bonus with a minimum payment of $40,000, payable in
February 2008.

In the future, our
current executive bonus structure for this position is that target performance
yields a 50% payout based on your annual salary and maximum payout would be
100% of your annual salary. The measures for your bonus, as approved and
modified by the Compensation Committee, would be 50% tied to company financial
performance and 50% individual performance.

On your start date, we
will provide you an initial grant of 200,000 stock options with a three (3)
year pro-rated vesting schedule as approved by the Compensation Committee.

Additionally, you will be
named to a Board of Director seat pending approval by the Nominating and
Governance Committee.

During your transition,
we will provide a temporary apartment or hotel to meet your local housing
needs. Additionally we will provide a full executive relocation package to you.

Patrick, I am excited
about you joining the team. You will be instrumental in helping further shape
and grow this business.

Sincerely,

	
  /s/ Ken Compton

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Ken Compton

  	
   

  	
   

  
	
  President and Chief Executive Officer

  	
   

  	
   

  

 

I accept this offer:

	
  /s/ Patrick O’Shaughnessy

  	
   

  	
  8/21/07

  
	
  Patrick O’Shaughnessy

  	
   

  	
  Date

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