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Exhibit 10.7  

SUBCONTRACTOR AGREEMENT  

	 	 	Between	 	 
	 	 	 	 	 
	SIGNAL CORPORATION

3040 Williams Drive

Suite 200

Fairfax, Virginia 22031	 	

And	 	Argus Networks, Inc.

207 House Avenue

Suite 104

Camp Hill, PA 17011
	 	 	 	 	 
	 	 	 	 	 
	Prime Contract No.:	 	 	 	DTTS59-99-D-00445
	Prime Contract Title:	 	 	 	ITOP II
	Subcontract Number:	 	 	 	99-108-Argus-ITOP II
	Subcontract Type:	 	 	 	ID/IQ with CPFF, CPAF, Time-and-Material/Labor Hour or, or Firm Fixed Price Purchase Orders
	Buyer's Subcontract Administrator:	 	 	 	Kelly M. Davidson
	Buyer's Subcontract Administrator Telephone No.:	 	 	 	(703) 205-2478
	Buyer's Subcontract Administrator Facsimile No.:	 	 	 	(703) 205-9815
	Buyer's Subcontract Administrator E-mail:	 	 	 	kelly  davidson@signalcorp.com
	Seller's Subcontract Administrator:	 	 	 	Cynthia L. Butts
	Seller's Subcontract Administrator Telephone No.:	 	 	 	(717) 731-0760
	Seller's Subcontract Administrator Facsimile No.:	 	 	 	(717) 909-6581
	Seller's Subcontract Administrator E-mail:	 	 	 	cbutts@digitaltraffic.com

This
subcontract is entered into between SIGNAL Corporation, having an office at 3040 Williams Drive, Suite 200, Fairfax, Virginia 22031, a Virginia Corporation, (hereinafter referred to as "the
Buyer") and Argus Networks, Inc., having an office at 207 House Avenue, Suite 104, Camp Hill, PA 17011 (hereinafter referred to as "the Seller"). 

This
agreement definitizes the letter Subcontract/Letter Task Order 001 executed by Buyer and Seller and dated 21 April 1999. Additionally, the following documents are hereby
incorporated into and made a part of this agreement: (1) Letter from Commercial West Insurance Agency to SIGNAL Corporation dated April 7, 1999; (2) Agreement between Argus
Networks, Inc., TL Ventures, PA Early Stage Partners, and SIGNAL Corporation dated April 8, 1999; and (3) Letter from PA Early Stage Partners and TL Ventures to SIGNAL Corporation
dated April 12, 1999. 

WITNESSETH THAT  

In
consideration of mutual promises, covenants, and agreements herein set forth, the Parties agree that the Seller shall furnish and deliver to the Buyer all the supplies, and perform all the services
set forth in the attached schedule, for the consideration stated herein. The rights and obligations of the parties to this Subcontract shall be subject to and governed by the Schedule, Subcontract
clauses, and other documents or specifications attached hereto or referenced herein. 

SECTION A—SCHEDULE  

A-l   GENERAL PROVISIONS OF PURCHASE  

This
Subcontract constitutes the type of contract whereby the Seller, as an independent contractor and not as an agent of the Buyer, shall, in accordance with the Terms and Conditions of this
Subcontract and the Statement of Work (SOW) set forth in Exhibit A, provide the necessary personnel and do all things necessary and/or incidental to the furnishing and delivery to the Buyer of
the supplies and/or services in accordance with the specifications and other requirements applicable thereto and referenced therein on a Purchase Order (PO) basis. 

This
is an indefinite delivery, indefinite quantity type Subcontract with Cost Plus Fixed Fee (CPFF), Cost Plus Award Fee (CPAF), Time-and-Materials/Labor Hour (T&M), and Firm
Fixed Price (FFP) tasks wherein work is initiated by task orders requested by the Government. This subcontract shall be the basis of the terms and conditions that apply to each issued PO, while other
specific terms will be added if required as needed. 

Each
PO issued under this subcontract will begin with a bid response from the Seller, which will provide fully loaded rates of the individuals being bid. Fee shall be stated separately for CPFF and
CPAF proposals shall be included in proposals for FFP and shall be included in the fully loaded rates for T&M. When applicable, Other Direct Costs (ODC) shall be included in Seller's proposal with a
detail listing of all proposed ODCs. 

No
work shall commence without either issuance of funded PO or verbal authorization from the Buyer's Subcontract Administrator. Under no circumstances will the Buyer be liable for any costs incurred
by the Seller in excess of the authorized funding limitation. 

A-2  PERIOD OF PERFORMANCE  

This
subcontract shall commence as of the latest date executed by the parties hereto and shall continue in full force and effect until 28 February 2006, unless terminated as provided herein.
Specific task order periods of performance shall be stated on individual POs. 

A-3  PLACE OF PERFORMANCE  

The
place(s) of performance for work to be performed under this Subcontract shall be specified on individual Purchase Orders or its relative Statement of Work (SOW). 

A-4  FUNDING  

The
Buyer cannot predict accurately the types and quantities of services needed for any period of time. This subcontract therefor does not guarantee a minimum quantity of services. All funding shall
be provided by issuance of individual POs. 

A-5  TRAVEL AND OTHER DIRECT COST  

Travel
and ODCs shall be proposed in Seller's cost proposals. 

	A.
	Outside
the Washington DC Metropolitan Area, the Seller shall be reimbursed for air travel and other direct cost at actual cost without fee not to exceed coach fare. Travel subsistence
reimbursement will be authorized under the rates and conditions of the Federal Travel Regulations and the Department's Travel Manual (DOT 1500.6A). Per diem will be reimbursed at actuals, not to
exceed the per diem rates set forth in Federal Property Management Regulations (FPMR) 41 CFR Chapter 101, chapter 7, GSA Bulletin FPMA A-40 Supplement (in effect at time of travel), or at
said per diem rates regardless of actual cost, whichever is in accordance with the Seller's standard accounting practice or disclosure statement. Travel of more than 10 hours, but less than
24 hours, when no lodging is required, per diem shall be one-half of the Meals and Incidental Expenses (M&IE) rate applicable to the location of the temporary duty assignment. If 

more
than one temporary duty point is involved, the allowance will be one-half of the M&IE rate prescribed for the location where the majority of the time is spent performing official
business. The Per Diem allowance shall not be allowed when the period of official travel is 10 hours or less during the same calendar day. Travel by privately owned vehicle will be reimbursed
at the current GSA approved mileage rate. If the Seller incurs travel costs in excess of the amount shown in each TO, it is at its own expense. 

	B.
	Inside
the Washington, DC Metropolitan Area, travel will be reimbursed based on the policies stated in paragraph A above and normal commuting expenses are not allowed.

	C.
	Any
burden added to the travel cost will be allowed only as defined in the Seller's standard accounting practice or disclosure statement.

	D.
	Travel
instructions for TOs issued by other than the Department of Transportation (DOT) shall be specified in the individual TO. 

A-6  OVERTIME  

No
overtime premiums are allowable as a direct charge unless authorized in writing by the Buyer's Program Manager. 

A-7  ORDERING  

Services
to be provided under this Subcontract will be ordered by the issuance of POs by the Buyer and shall be within the scope of the work presented in Exhibit A. All POs are subject to the
terms and conditions of the Subcontract. The Subcontract shall control in the event of any conflict with an issued PO. 

The
POs shall contain the following: 

	1.
	PO
Number;

	2.
	Effective
Date of the PO;

	3.
	Subcontract
Number PO Number;

	4.
	Period
of Performance;

	5.
	Funding;

	6.
	Any
other pertinent information related to performance of the work. 

Oral
orders may be placed in emergency situations in accordance with Article B-2 with the information described above to be furnished to the Seller at the time of the oral order
placement.
Oral orders shall be confirmed, in writing, within TEN (10) WORKING DAYS after the date of the oral order issuance. 

SECTION B—SUBCONTRACT ADMINISTRATION CLAUSES  

B-l   AUTHORIZED REPRESENTATIVES  

The
following individuals are the authorized representatives for both parties hereto: 

Buyer  

	Position/Function
 
	 	Authority
 

	President and CEO	 	Obligate Buyer and Execute all Agreements and Documentation
	Sr. Vice President, Administration	 	Obligate Buyer and Execute all Agreements and Documentation
	Director of Contracts	 	Obligate Buyer and Execute all Agreements and Documentation
	Subcontract Administrator	 	Initiate, Negotiate and Approve Contractual Activity on a day-to-day basis
	 	 	 
	Seller
	 	 	 
	President & CEO	 	Obligate Seller and Execute all Agreements and Documentation
	President & CEO	 	Obligate Seller and Execute Contractual Agreements and Related Documentation
	Director of Engineering/Program Mgr.	 	Initiate, Negotiate and Approve Contractual Activity on a day-to-day basis

B-2  SUBCONTRACT ADMINISTRATION  

With
the exception of oral authorization as stated in Article A-7, no oral statement from any person whomsoever, shall in any manner or degree, modify or otherwise affect the terms
of this Subcontract. Only those individuals identified in Section B-l as authorized to obligate the Buyer may approve changes in any of the requirements under this Subcontract, and
not withstanding any provisions contained elsewhere in this Subcontract, the said authority remains solely with those identified in Section B-1. In the event the Seller effects any
such change at the direction of any person other than those identified in Section B-l, the change will be considered to have been without authority and no adjustment will be made in
the subcontract price to cover any increase in costs incurred as a result thereof. 

In
addition to any requirements of the "Notification of Change" clause, the Seller must, within seven (7) calendar days, notify the Subcontract Administrator of any direction, instruction, or
communications received from Government personnel or SIGNAL personnel, the implementation of which is estimated to increase the Subcontract cost of performance, even though such direction is
considered by the Seller to be within the contract scope. 

All
meetings and other contacts involving the Seller's personnel and/or their representatives with representatives of the Government, relative to the effort herein, shall be coordinated through the
Buyer's duly authorized representative. The Seller is further reminded that only the Buyer can direct the Seller and/or modify the terms and conditions of the Subcontract Agreement.  Such modifications shall be set forth in
writing signed by both parties. 

B-3  TECHNICAL DIRECTION  

The
Buyer may designate a representative to serve as the Technical Representative under this Subcontract. Such a representative, if appointed, shall be designated in writing from the Subcontract
Administrator to the Seller. The Technical Representative shall represent the 

designated
Subcontract Administrator for technical performance issues only. The Technical Representative is not authorized to commit the Buyer or make
any changes to this Agreement. If at any time the Seller believes that the Technical Representative is requesting any changes to this Agreement, the Seller will immediately notify the Buyer's
Subcontract Administrator. The following individual(s) is/are designated representative(s) under this Subcontract. 

	For Buyer:	 	Mr. Barry Kane/Ms. Sylvia Dennis/Mr. Douglas Hildebrand
	For Seller:	 	David L. Jannetta/Peter Delricco

B-4  SUBCONTRACTING  

The
Seller shall not subcontract any of the services to be performed or items to be delivered hereunder without the prior written approval of the Buyer. Any approval, if given, shall be without
prejudice to the Buyer and Seller shall assume all liability for subcontracts issued hereunder and the work or services performed. Any subcontractor retained by the Seller must be obliged in writing
to the same obligations as are set forth herein with respect to the Seller. In the event that the Seller receives approval to subcontract certain portions of the services, the term "employee" as it
refers to the Seller herein shall be deemed to include such subcontractor and its employees. Seller agrees that any subcontractor's charges for work for which the Seller seeks reimbursement from the
Buyer hereunder shall be no higher than if performed by the Seller, unless otherwise agreed to in writing by the Buyer. By this Agreement, Buyer gives written consent to enter
into subcontract agreements as contemplated by the proposal(s) submitted to and accepted by Buyer. 

B-5  PRIVITY OF CONTRACT  

In
order to properly perform and/or execute this Agreement, the Seller may require frequent interface with the Buyer's client (the Client). However, no privity of contract exists between the Seller
and the Client. Seller may neither take direction from, nor discuss any terms and conditions of this Agreement with the Client unless the Buyer is present and authorizes the discussion. Seller shall
immediately notify Buyer's Technical Representative if at any time he believes the Client is effecting a change to this Subcontract. Breach of this clause is cause for Termination in accordance with
Article B-17, Termination. 

B-6  INVOICE AND PAYMENT  

	
A.
	The
 Seller shall invoice the Buyer not more than on a monthly basis covering the amount claimed to be due for services rendered and cost incurred thereunder. Invoices or vouchers for
payments hereunder shall be certified by a responsible official of the Seller's organization and shall be submitted in an original and two (2) copies to the following addresses: 

	 	 	Original and One (1) Copy To:	 	One (1) Copy To:
	 	 	 	 	 
	 	 	Accounts Payable, ITOP II

SIGNAL Corporation

3040 Williams Drive, Suite 200

Fairfax, Virginia 22031	 	Douglas Hildebrand

SIGNAL Corporation

3040 Williams Drive, Suite 200

Fairfax, Virginia 22031

	B.
	Each
invoice submitted by the Seller shall contain the following:

	1.
	Name
and address of the Subcontractor

	2.
	Subcontract
Number

	3.
	Purchaser
Order Number

	4.
	Invoice
Number 

	5.
	Invoice
Amount

	6.
	Invoice
Date

	7.
	Period
of Performance for which the invoice is submitted.

	8.
	For
CPAF, and CPFF, for the current period, a breakdown of total costs by line item fully loaded (exclusive of fee) with the appropriate subcontractor burden. Major line items include
but are not limited to direct labor, travel, and other direct costs. All overtime premium cost, if allowable, shall be itemized. Fee shall be shown as a separate line item on the invoice.

	9.
	The
number of direct labor hours shall be provided by individual name/labor category during the current period and cumulative through the invoice period. ODCs shall be shown as a
separate line item on the invoice.

	10.
	T&M
invoices shall be submitted in accordance with FAR clause 52,232-7, Payment under Time-and-Materials and Labor Hours Contracts to
include the withholding of costs.

	11.
	To
the extent authorized by the Buyer, travel and other direct costs incurred will be reimbursed at cost. All travel shall be performed and will be reimbursed in accordance with the
Government Joint Travel Regulations. No fee will be paid on travel and other direct costs incurred by the Seller.

	12.
	Cumulative
amounts for costs and fee by line item invoiced through the period for which the current invoice is rendered.

	13.
	CPAF
and CPFF invoices should provide for a withholding of fee in accordance with FAR Clause 52.216-08, Fixed Fee, Payments of fee will be based on the percentage
of costs incurred subject to the withholding requirements. In the event of discontinuance of work or sufficient funds are not allotted to the Subcontract, the Seller's fee will be adjusted in
accordance with the amount of work performed. In no event shall the Buyer be required to pay the Seller any amount in excess of the funds allotted under this Subcontract unless
otherwise agreed to in writing.

	14.
	For
FFP POs, the Seller shall invoice the Buyer for labor costs in accordance with FAR Clause 52.232-1, "Payments". 

	C.
	Invoices
shall be submitted on a monthly basis, in accordance with the Seller's accounting calendar, but shall be due by the 10th of each month.

	D.
	Seller
shall be paid within ten (10) business days of receipt of payment from the Government. To ensure the most timely payment, the Seller should submit their invoice by the
10th of the month. Remittance address for payment shall be stated on each invoice.

	E.
	The
Buyer will notify the Seller if any reimbursable costs claimed by the Seller are unallowable. The Seller will then submit a revised invoice to the Buyer's offices cited above. 

	F.
	The
Buyer may request and the Seller shall furnish supporting documentation for any invoice. Supporting documentation shall include, but is not limited to, time sheets, travel claims,
and invoices for other direct charges.

	G.
	The
final invoice shall be clearly designated as the "Final Invoice" and shall be supported by a schedule of cumulative amounts incurred and billed to completion date. The Buyer shall
not be held liable for final invoices submitted later than ninety (90) days after completion of services unless mutually agreed upon.

	H.
	The
Seller agrees to indemnify and hold the Buyer harmless for any claims by the Government for fines, penalties, or request for refunds because of billing irregularities of the Seller
or rate disputes with the Seller. 

B-7  LIMITATION OF BUYER'S OBLIGATION  

The
parties contemplate that the Buyer may allot funds to this Agreement by issuance of individual Purchase Orders which will state separately the amounts allotted for performance, and the period of
performance such amounts are expected to cover. However, the Seller is not required to continue performance once funds assigned to date have been expended and Buyer is not required to reimburse Seller
for any funds expended beyond the funded amount contained herein or within individual POs subsequently increased or decreased in accordance with modification procedures. 

B-8  INSPECTION AND ACCEPTANCE  

Final
inspection and acceptance of all work to be performed hereunder shall be made in accordance with the Statement of Work and Contract Data Requirements List (CDRL) provided in Exhibit A.
The Program Manager/Technical Representative must subject all CDRL items to SIGNAL's Quality
Assurance Review and approval. The Buyer shall make final inspection and acceptance of all supplies and/or all work to be performed hereunder. 

B-9  DELIVERY  

All
items shall be shipped F.O.B. destination. Title shall transfer upon delivery to Buyer, but shall revisit with Seller upon a rejection or revocation of acceptance by Buyer. 

B-10 WARRANTIES  

	A.
	Seller
represents and warrants that Seller is under no obligation or restriction nor will Seller assume any such obligation or restriction which would in any way interfere or be
inconsistent with, or present any conflict of interest concerning the services or items to be furnished by the Seller under this Agreement.

	B.
	Seller
warrants that it shall perform all services contracted for under this Agreement in a workmanlike manner and in accordance with the requirements set forth in the Statement of
Work and/or Purchase Order issued hereunder.

	C.
	Seller
warrants the originality of the items prepared for or submitted to the Buyer under this Agreement and that no portion of such items or their use or distribution violates or is
protected by any copyright or similar right of any third party. 

B-11 YEAR 2000 WARRANTY  

	A.
	Year 2000 Warranty: Seller represents and warrants that the Products (including all hardware, software and firmware created or delivered
by Seller or created by any third-party and sold/licensed pursuant to the Contract), are capable of accurately processing date/time data—including, but not limited to, calculating,
comparing, and sequencing—from, into, and between the twentieth and twenty-first centuries, and the years 1999 and 

2000,
and leap-year calculations, and that the Products have been tested to validate these capabilities. Further, Seller represents and warrants that the Products being acquired when used
in combination with other information technology, shall accurately process date/time data if the other information technology properly exchanges date data with it. Without limiting the foregoing, the
Seller further represents and warrants that: (a) If the Contract requires that the specific Products listed in the Contract must perform together as a system, then this warranty shall apply to
those listed products as a system; (b) The Products provide that all date-related data interface functionalities include the indication of century; and (c) The Products
provide that all date-related user interface functionalities and data fields include the indication of century. 

	B.
	Warranty Term: The warranty set forth herein shall begin as of the date of the Contract and end on the date after March 1, 2000,
subsequent to which the Products have operated without failure or defect for a consecutive one (1) year period.

	C.
	Remedies For Noncompliance of Year 2000 Warranty:

	1.
	Seller
agrees, at SIGNAL's option, to (i) make repairs to any defective Products within twenty-four (24) hours of report of such defect by
SIGNAL at no charge to SIGNAL, or (ii) replace any defective Products with conforming Products at Seller's sole expense. In the event SIGNAL elects to have the Products repaired by the Seller
in the face of any decrease in Product functionality related to time and date related codes and internal subroutines that impede the Products from operating beyond the year 1999, the Seller agrees to
make required corrections to restore the Products to the same level of functionality as warranted herein without interruption to the ongoing business of SIGNAL.

	2.
	Any
provisions of the Contract that tend to limit or eliminate the liability of Seller shall have no application with respect to the Year 2000 Warranty set forth herein. Nothing in
this warranty provision shall be construed to limit any rights or remedies SIGNAL may otherwise have under the Contract with respect to defects other than Year 2000 performance. 

B-12 SECURITY REQUIREMENTS  

The
Contract Security Classification Specification (DD Form 254), Exhibit D, maybe applicable to this Subcontract, and will be part of this Agreement. The Seller shall maintain and
administer a security program in accordance with DOD 5220.00-M, "Industrial Security Manual for Safeguarding Classified Information", and DIAR 50-2, "Information Security
Program", and those additional documents identified on the DD Form 254. 

Loss
or suspension of required security clearance, as set forth in the DD Form 254, will result in the inability to perform in accordance with the terms and conditions of the Subcontract. As a
result, the subcontract is subject to termination in accordance with FAR clause 52.249-06, Termination (Cost Reimbursement). 

The
Buyer reserves the right to direct any employee of the Seller to be removed from performance, direct or indirect, for reason of security violation(s) whether or not deemed of sufficient severity
to warrant action to terminate the Seller's or individual's security clearance. The Buyer also reserves the right to direct any employee of the Seller to be removed for any investigation of alleged
misconduct which may, in the opinion of the Buyer, jeopardize the security of the project. 

B-13 REPORTS  

The
Seller shall furnish Reports, Data, and Other Documentation as set forth in this subcontract. All reports, and/or documentation shall be delivered in accordance with instructions contained in the
Statement of Work attached herein. 

B-14 CHANGES  

The
Buyer, may at any time, by written modification to the Subcontract Agreement and related purchase orders, make changes within the general scope of this subcontract, in any one or more of the
following: (i) statement of work, types of services, drawings, designs, or specifications, where the supplies to be furnished are specifically manufactured for the Buyer in accordance
therewith; (ii) method of shipment or packaging; (iii) place of delivery; and Seller shall comply therewith. 

If
any changes causes an increase or decrease in the cost or the time required for the performance of any part of the work under this subcontract and any related purchase order, an equitable
adjustment may be made in the price or delivery schedule, or both, and the subcontract and related purchase order shall be modified in writing accordingly. Any claim by Seller for adjustment under
this clause must be asserted within ten (10) days from the date of receipt by Seller of the notification of change provided, however, the Buyer, if it decides that the facts justify such
action, may receive and act upon any such claim asserted at any time prior to final payment under the subcontract. Where the cost of property made obsolete or excess as a result of a change is
included in Seller's claim for adjustment, Buyer shall have the right to prescribe the manner of disposition of such property. Failure to agree on any claim for equitable adjustment under this clause
shall be a dispute and the Seller may thereupon pursue any remedy which it may have in under the clause B-29 (Disputes). Pending the resolution of any such dispute, Seller shall
diligently pursue the performance under the subcontract related purchase order as changed. 

B-15 INSURANCE  

The
Seller shall at its own expense, procure and thereafter maintain the following kinds of insurance with respect to performance under this Subcontract: 

Workers' Compensation and Employer's Liability Insurance as required by law except that if this Subcontract is to be performed in a State which does not
require or permit private insurance, then compliance with the statutory or administrative requirements in any such State will be satisfactory. The required Workers' Compensation insurance shall extend
to cover employer's liability for accidental bodily injury or death and from accidental bodily injury or death and for occupational disease with a minimum liability limit of $200,000. 

General Liability Insurance. Bodily injury liability insurance, in the minimum limits of $1,000,000 per occurrence shall be required on the
comprehensive form of policy. 

Automobile Liability Insurance. This insurance shall be required on comprehensive form of policy and shall provide bodily injury liability and property
damage liability covering the operation of all automobiles used in connection with the performance of the contract. At least the minimum limits of $400,000 per person and $1,000,000 per occurrence for
bodily injury and $40,000 per occurrence for property damage shall be required. 

Prior
to the commencement of work hereunder, the Seller shall furnish to the Buyer a certificate or written statement evidencing issuance of the above required insurance. The Seller shall notify buyer
when cancellation or any material change in the policies adversely affects the interests of the Buyer in such insurance and such changes shall not become effective until thirty (30) days after
written notice is provided to the Buyer. 

In
the event the Seller fails to furnish such certificates prior to the commencing of work or to continue to maintain such insurance during the performance of the subcontract, the Buyer shall have the
right to terminate this Subcontract for default or to withhold any payments or partial payments required to be made under this Subcontract and shall have the right to continue withholding any or all
of said payments so long as the Seller has not complied with the requirements of this clause. 

B-16 NOTICE OF DELAY  

In
addition to its obligation herein with respect to notice of labor disputes, whenever any other actual or potential event is delaying or threatening to delay delivery of the goods or performance of
the services under this Subcontract, the Seller shall as soon as possible give notice thereof to the Buyer. 

B-17 TERMINATION  

The
Buyer may terminate this Subcontract in whole or in part for default if Seller fails to properly perform in accordance with the terms and conditions stated herein. If Seller fails to cure the
default within ten (10) days after receiving a notice specifying the default, such termination may require the Buyer to otherwise acquire the goods and services and Subcontractor will be liable
for Buyer's costs for such other goods and services. 

In
addition, Seller will be liable for vendor cost to Buyer for these goods or services in excess of those costs stated herein. The cost will include but not exceed the total expenditures necessary to
recover goods or services lost for the work for which Seller was determined to be in default. 

If
the Government terminates the Prime Contract in whole or in part for any reason, Buyer may terminate the Subcontract in whole or in part. In addition, Seller agrees to honor a stop work order
issued by Buyer as a result of a stop work issued to the Buyer by the Government. 

The
Buyer may terminate this Agreement immediately in the event of: 

	(i)
	any
proceeding in insolvency, dissolution or liquidation by or against the Seller;

	(ii)
	any
assignment of Seller' s assets for the benefit of creditors; or

	(iii)
	any
transfer of substantially all of Seller's business or assets to a third party. 

DELETED UNILATERAL TERMINATION PROVISION  

Upon
termination, Seller will immediately return to Buyer all equipment, supplies, property or other items procured by or given to Seller for performance of this Subcontract. In addition, Seller will
deliver to Buyer all work completed or in process under this Subcontract. 

Upon
termination, the Buyer shall pay all unpaid allowable charges due to the Seller. 

B-18 CONFLICT OF INTEREST  

The
Seller shall notify the Buyer in writing identifying any situation in which the potential for an Organizational Conflict of Interest exists. 

B-19 KEY PERSONNEL  

The
Seller shall not without prior written notice to and approval by Buyer and the Government, change the Staff designated in individual Purchase Orders as "key personnel" except for reasons of
resignation, death, or inability to work by reasons of health. Change includes, but is not limited, to reassignment in any fashion, relief from current responsibility, or transfer to lesser or
unrelated Responsibility. 

Seller
must provide replacement personnel possessing equal or better related job knowledge, experience and authority at no additional costs to the Buyer or Government. In the event Seller can not meet
this requirement, SIGNAL shall have the unilateral right to staff the billet without consideration to Seller. 

B-20 ASSIGNMENT OF PERSONNEL  

The
Seller shall receive approval from the Buyer's Technical Representative for all personnel assigned to work under this Subcontract or otherwise involved in the performance of the 

Subcontract
prior to their commencement of work related to the Subcontract. The Buyer shall document to the Seller in writing the specific reasons for not accepting any applicant which the seller has
selected to meet the position qualifications. 

B-21 STAFFING AND CONDUCT OF SELLER PERSONNEL  

The
Seller shall segregate the labor categories pursuant to the classification and qualification levels in Exhibit E (this section applies to the classification and levels of labor quality
specified in the initial solicitation). 

The
Seller's staffing actions and personnel assigned under the Subcontract shall be approved in advance by the Buyer's Program Manager or duly authorized representative in order to assure compliance
with the Statement of Work. Should the Seller be unable to meet the staffing plan, such staffing shortfall may not be compensated for by over staffing during later periods without the approval of the
Buyer's Program Manager or duly authorized representative. 

The
Buyer's Program Manager, after due consultation with the Seller, may request the Seller remove any employee of the Seller whose performance is deemed unacceptable and it shall be the
responsibility of the Seller to so remove and replace that individual at no cost to the Buyer. 

If
the Seller is requested to remove any of the Seller's personnel from further performance under this Subcontract for reason of unethical conduct, security reasons, or for violation of installation
regulations, the Seller shall bear all costs associated with such removal including the costs for replacement of the personnel removed. 

B-22 NO-HIRE PROVISION  

During
the period of performance of this subcontract, and for a period of one (1) year thereafter, the neither party shall not solicit or engage the services of any employee of the other party
engaged in performance of work related to this subcontract, without expressed written notification to and acceptance by the other party. 

However,
in the event of Termination of Default of the Seller, in accordance with Article B-17, Termination, this clause will have no force or effect. 

B-23 PROPRIETARY OR CONFIDENTIAL INFORMATION  

Seller
shall not disclose and shall protect from disclosure all Buyer and client confidential data, acquired by the Seller under this Agreement, for a period of three (3) years following the
termination of this Agreement. 

Seller
shall not use or duplicate, in any way, any proprietary information, including trade secrets, belonging to or supplied by or otherwise made available by Buyer with the exception of such
duplication as required for the performance of work or the rendering of services for Buyer or at the direction of Buyer. By definition, all proprietary materials will be clearly stamped and identified
as such. 

Seller
shall not, without first obtaining the written permission of Buyer, divulge to any other person or organization for any reason, any proprietary information belonging to or supplied or otherwise
made available by Buyer relating to processes, designs, formulas, products, manufacturing methods, techniques, or any business in which Buyer is engaged or with which Buyer may be concerned. The term
"proprietary information" as used herein shall be defined as, such information and/or software provided to Seller by Buyer to perform or render services pursuant to this
Agreement and shall exclude software, sensors, business plans, designs and equipment developed or acquired by Seller or its subcontractor, and information or data generated or collected through the
operation, maintenance and installation of sensor based traffic monitoring systems.

If
Seller desires to employ proprietary information in the performance of tasks assigned hereunder which Seller wishes to hold outside the requirements of this clause, Seller shall obtain written
approval from Buyer prior to the use of said proprietary information. 

B-24 BANKRUPTCY  

Subject
to the rights of any trustee in bankruptcy and to applicable law, in the event of the appointment of a trustee, receiver, or liquidator for all or a portion of Seller's property, or for any
act of bankruptcy by the Seller as defined in the Bankruptcy Act, as amended, or for any voluntary petition in bankruptcy by the Seller, the Buyer may terminate the right of the Seller to proceed with
the performance of this Subcontract without further obligation, except that the Buyer shall be obliged to pay for any article or services delivered and accepted prior to any of the foregoing
occurrences. 

B-25 ASSIGNMENT OF SUBCONTRACT  

Any
assignment or delegation of this Subcontract or rights or duties hereunder by the Seller shall be void, unless the Buyer gives prior written consent thereto. Any funds due, or to become due
hereunder, may be assigned, provided that such assignment shall not be binding upon the Buyer until the assignment agreement is accepted and acknowledged in writing, and shall be subject to any proper
deductions or set-offs against such funds. 

In
no event shall copies of the Subcontract or any plans, specifications, or there similar documents relating to work under this Subcontract, if marked "Top Secret", "Secret", or "Confidential", be
furnished to any assignee of any claim arising under this Subcontract, or to any other person not entitled to receive the same. However, a copy of any part or this entire Subcontract may be furnished,
or any information contained therein may be disclosed, to such assignee upon prior written authorization of the Government Contracting Officer. A request for authorization shall be submitted through
the Buyer. 

B-26 RELEASE OF NEWS INFORMATION  

No
news releases, including photographs and films, public announcements or confirmation of same, or any part of the subject matter of this Subcontract or any phase of any program hereunder shall be
made without the prior written approval of the Buyer's Subcontract Administrator. 

B-27 CERTIFICATIONS  

All
certifications and representations including, but not limited to, those submitted to the Buyer in connection with the award of this Subcontract are incorporated herein and made part hereof and
such have been relied upon by the Buyer in issuing this Subcontract. The Seller agrees to promptly advise the Buyer should there by any change in the Seller's status with respect to the matters
covered by such representations and certifications. 

B-28 ORDER OF PRECEDENCE  

To
the extent of any inconsistency between the Section A—Schedule, Section B—Subcontract Administration clauses, Federal and DOD Acquisition Regulations and any
specification or other documents which are made a part hereof either as an attachment, by reference or otherwise, the Schedule and the Federal/DOD Acquisitions Regulations shall govern. To
the extent of any inconsistency between the Schedule and the Acquisition Regulations, the Schedule shall govern. 

B-29 INDEMNIFICATION  

Buyer
and Seller agree that they shall indemnify and hold harmless the other and their respective officers and employees from any loss, cost, damage, expense or liability of every kind and nature
which they may incur, arising out of, or in connection with performance under this Agreement, 

occasioned
in whole or in part, by the actions or omissions of the other, or its lower tier subcontractors. However, Seller agrees to indemnify Buyer to the full extent of any price or cost reduction
effected by the Government, which may be as a result of Seller or its lower-tier subcontractor cost accounting practices and standards that are found to be noncompliant with the Federal
Acquisition Regulation (FAR) promulgated by Cost Accounting Standard Board and final audit rates. 

B-30 DISPUTES  

Arbitrators
shall determine any disagreement arising between the parties hereto regarding the interpretation and application of this Subcontract Agreement, or the obligations or any matter of dispute
arising between the parties. Such arbitration shall be conducted by three (3) arbitrators (unless the parties agree to one), to be selected by the Buyer, Seller and the selected arbitrators
respectively. Conduct of the arbitration and decisions made shall be in strict conformity with Virginia law, which will apply in the event of controversy. Arbitration proceedings will be conducted in
Fairfax County, Virginia. The decisions of the arbitrator(s) shall be final, conclusive and binding upon the parties hereto. 

B-31 RELATIONSHIP OF THE PARTIES  

It
is mutually agreed and understood that nothing contained herein shall preclude either party from its normal marketing effort in connection with its products and services. The parties shall act as
independent contractors in all matters. The employees or agents of one shall not be deemed to be the employees or agents of the other for any purpose under any federal or state Unemployment Insurance
law, old Age Benefits Law or Social Security Law, Workers' Compensation Law, or under Internal Revenue or War Tax Legislation, or under industrial law or otherwise. Neither party shall have the right,
power or authority to create any obligation, express, or implied, on behalf of the other except to the extent provided herein. Nothing in this Subcontract Agreement shall be deemed, held or construed
as creating a partnership, a pooling arrangement or joint enterprise for any purpose. 

B-32 NO-COMPETE PROVISION  

Not
withstanding the provisions set forth in the clauses B-16 (Termination) and B-22 (Proprietary or Confidential Information), the Seller shall, during the period of
performance of this Subcontract and through the period ending one (l) year after the completion of this subcontracted effort, refrain from
competing with the other party either as a Prime or Subcontractor for work efforts associated with the acquisition. For the duration of ITOP, the Seller's arrangement with the Buyer shall be exclusive
Seller shall not bid or participate with another ITOP team, even when the Buyer does not bid a particular opportunity of interest to the Seller. Violation of this provision shall be cause for
termination in accordance with Article B-17, Termination. 

B-33 ADMISSION OF OTHER SUBCONTRACTORS  

The
Seller shall permit other firms designated by the Buyer to become Sellers as post-award subcontractors under the terms and conditions allowed by ITOP. 

B-34 RIGHTS TO WORK/OPPORTUNITIES  

The
Seller acknowledges and accepts the following with respect to work opportunities arising under ITOP: 

	1.
	Waives
any claim to work that the Buyer or another Seller marketed and registered under and will sign a blanket waiver letter to that effect.

	2.
	Limits
any exclusive claim to the Seller's work that the Seller marketed and registered. 

	3.
	Recognizes
the right-of-first-refusal applies and provides a preemptive right to over-the-transom opportunities if the Seller has been
designated as a Critical Pre-award subcontractor for that functional task area and if the Seller is fully qualified for the particular opportunity.

	4.
	Participates
on the basis that there is no guaranteed work, quotas, percentages, or the like, excluding possibly mandated socio-economic set-asides. 

B-35 OBSERVANCE OF LEGAL HOLIDAYS AND EXCUSED ABSENCE  

	(a)
	The
Buyer hereby provides NOTICE and Seller hereby acknowledges RECEIPT that Government personnel observe the listed days as holidays: 

New
Year's Day

Martin Luther King's 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 

B-36 SEVERABILITY  

If
any provision of this Agreement shall be determined to be illegal, invalid, or unenforceable, the remaining provisions shall remain in full force and effect. 

B-37 SURVIVAL  

The
provisions of clauses B-10, B-l1, B-12, B-16, B-19, B-23, B-25, B-29, B-30,
B-31, and B-34 shall survive any termination of this Agreement. 

B-38 SIGNATURE  

The
rights and obligations of both parties to this subcontract shall be subject to and governed by Schedule A, Schedule B, and such provisions, representations, certifications, and
specifications, as are attached or incorporated by reference therein. 

IN
WITNESS WHEREOF, the parties hereto have executed this Subcontract effective as of the day and year first above written. 

This
subcontract integrates, merges, and supersedes all prior offers, negotiation, or agreements concerning the subject matter hereof and constitutes the entire agreement between the parties. 

	BUYER:

SIGNAL CORPORATION	 	SELLER:

Argus Networks, Inc.
	

/s/ ROBERT S. SMITH
 By	
 	

/s/ DAVID L. JANNETTA
 By
	

Robert S. Smith
 Name	
 	

David L. Jannetta
 Name
	

Sr. Vice President

Chief Administrative Officer
 Title	
 	

  

President
 Title
	

6/1/99
 Date	
 	

5-27-99
 Date

EXHIBIT A—STATEMENT OF WORK  

The
attached Statement of Work is incorporated for reference purposes only. Specific Task Order Statements of Work shall be submitted to Seller for submission of Task Proposals and will be
incorporated as part of each PO. 

SUBCONTRACTOR AGREEMENT  

	 	 	Between	 	 
	

SIGNAL CORPORATION

3040 Williams Drive

Suite 200

Fairfax, Virginia 22031	
 	

  

And	
 	

Argus Networks, Inc.

207 House Avenue

Suite 104

Camp Hill, PA 17011
	

Prime Contract No.:	
 	

 	
 	

DTTS59-99-D-00445
	Prime Contract Title:	 	 	 	ITOP II
	Subcontract Number:	 	 	 	99-108-Argus-ITOP II
	Subcontract Type:	 	 	 	ID/IQ with CPFF, CPAF, Time-and-Material/Labor Hour or, or Firm Fixed Price Purchase Orders
	Buyer's Subcontract Administrator:	 	Kelly M. Davidson
	Buyer's Subcontract Administrator Telephone No.:	 	(703) 205-2478
	Buyer's Subcontract Administrator Facsimile No.:	 	(703) 205-9815
	Buyer's Subcontract Administrator E-mail:	 	kelly_davidson@signalcorp.com
	Seller's Subcontract Administrator:	 	Cynthia L. Butts
	Seller's Subcontract Administrator Telephone No.:	 	(717) 731-0760
	Seller's Subcontract Administrator Facsimile No.:	 	(717) 909-6581
	Seller's Subcontract Administrator E-mail:	 	cbutts@digitaltraffic.com

This
subcontract is entered into between SIGNAL Corporation, having an office at 3040 Williams Drive, Suite 200, Fairfax, Virginia 22031, a Virginia Corporation, (hereinafter referred to as "the
Buyer") and Argus Networks, Inc., having an office at 207 House Avenue, Suite 104, Camp Hill, PA 17011 (hereinafter referred to as "the Seller"). 

This
agreement definitizes the letter Subcontract/Letter Task Order 001 executed by Buyer and Seller and dated 21 April 1999. Additionally, the following documents are hereby incorporated into
and made a part of this agreement: (1) Letter from Commercial West Insurance Agency to SIGNAL Corporation dated April 7, 1999; (2) Agreement between Argus Networks, Inc.,
TL Ventures, PA Early Stage Partners, and SIGNAL Corporation dated April 8, 1999; and (3) Letter from PA Early Stage Partners and TL Ventures to SIGNAL Corporation dated
April 12,1999. 

WITNESSETH THAT  

In
consideration of mutual promises, covenants, and agreements herein set forth, the Parties agree that the Seller shall furnish and deliver to the Buyer all the supplies, and perform all the services
set forth in the attached schedule, for the consideration stated herein. The rights and obligations of the parties to this Subcontract shall be subject to and governed by the Schedule, Subcontract
clauses, and other documents or specifications attached hereto or referenced herein. 

SECTION A—SCHEDULE  

A-l   GENERAL PROVISIONS OF PURCHASE  

This
Subcontract constitutes the type of contract whereby the Seller, as an independent contractor and not as an agent of the Buyer, shall, in accordance with the Terms and Conditions of this
Subcontract and the Statement of Work (SOW) set forth in Exhibit A, provide the necessary personnel and do all things necessary and/or incidental to the furnishing and delivery to the Buyer of
the supplies and/or services in accordance with the specifications and other requirements applicable thereto and referenced therein on a Purchase Order (PO) basis. 

This
is an indefinite delivery, indefinite quantity type Subcontract with Cost Plus Fixed Fee (CPFF), Cost Plus Award Fee (CPAF), Time-and-Materials/Labor Hour (T&M), and Firm
Fixed Price (FFP) tasks wherein work is initiated by task orders requested by the Government. This subcontract shall be the basis of the terms and conditions that apply to each issued PO, while other
specific terms will be added if required as needed. 

Each
PO issued under this subcontract will begin with a bid response from the Seller, which will provide fully loaded rates of the individuals being bid. Fee shall be stated separately for CPFF and
CPAF proposals shall be included in proposals for FFP and shall be included in the fully loaded rates for T&M. When applicable, Other Direct Costs (ODC) shall be included in Seller's proposal with a
detail listing of all proposed ODCs. 

No
work shall commence without either issuance of funded PO or verbal authorization from the Buyer's Subcontract Administrator. Under no circumstances will the Buyer be liable for any costs incurred
by the Seller in excess of the authorized funding limitation. 

A-2  PERIOD OF PERFORMANCE  

This
subcontract shall commence as of the latest date executed by the parties hereto and shall continue in full force and effect until 28 February 2006, unless terminated as provided herein.
Specific task order periods of performance shall be stated on individual POs. 

A-3  PLACE OF PERFORMANCE  

The
place(s) of performance for work to be performed under this Subcontract shall be specified on individual Purchase Orders or its relative Statement of Work (SOW). 

A-4  FUNDING  

The
Buyer cannot predict accurately the types and quantities of services needed for any period of time. This subcontract therefor does not guarantee a minimum quantity of services. All funding shall
be provided by issuance of individual POs. 

A-5  TRAVEL AND OTHER DIRECT COST  

Travel
and ODCs shall be proposed in Seller's cost proposals. 

	A.
	Outside
the Washington DC Metropolitan Area, the Seller shall be reimbursed for air travel and other direct cost at actual cost without fee not to exceed coach fare. Travel subsistence
reimbursement will be authorized under the rates and conditions of the Federal Travel Regulations and the Department's Travel Manual (DOT 1500.6A). Per diem will be reimbursed at actuals, not to
exceed the per diem rates set forth in Federal Property Management Regulations (FPMR) 41 CFR Chapter 101, chapter 7, GSA Bulletin FPMA A-40 Supplement (in effect at time of travel), or at
said per diem rates regardless of actual cost, whichever is in accordance with the Seller's standard accounting practice or disclosure statement. Travel of more than 10 hours, but less than
24 hours, when no lodging is required, per diem shall be one-half of the Meals and Incidental Expenses (M&IE) rate applicable to the location of the temporary duty assignment. If 

more
than one temporary duty point is involved, the allowance will be one-half of the M&IE rate prescribed for the location where the majority of the time is spent performing official
business. The Per Diem allowance shall not be allowed when the period of official travel is 10 hours or less during the same calendar day. Travel by privately owned vehicle will be reimbursed
at the current GSA approved mileage rate. If the Seller incurs travel costs in excess of the amount shown in each TO, it is at its own expense. 

	B.
	Inside
the Washington, DC Metropolitan Area, travel will be reimbursed based on the policies stated in paragraph A above and normal commuting expenses are not allowed.

	C.
	Any
burden added to the travel cost will be allowed only as defined in the Seller's standard accounting practice or disclosure statement. 
	
D.
	Travel
 instructions for TOs issued by other than the Department of Transportation (DOT) shall be specified in the individual TO. 

A-6  OVERTIME  

No
overtime premiums are allowable as a direct charge unless authorized in writing by the Buyer's Program Manager. 

A-7  ORDERING  

Services
to be provided under this Subcontract will be ordered by the issuance of POs by the Buyer and shall be within the scope of the work presented in Exhibit A. All POs are subject to the
terms and conditions of the Subcontract. The Subcontract shall control in the event of any conflict with an issued PO. 

The
POs shall contain the following: 

	1.
	PO
Number;

	2.
	Effective
Date of the PO;

	3.
	Subcontract
Number PO Number;

	4.
	Period
of Performance;

	5.
	Funding;

	6.
	Any
other pertinent information related to performance of the work. 

Oral
orders may be placed in emergency situations in accordance with Article B-2 with the information described above to be furnished to the Seller at the time of the oral order
placement. Oral orders shall be confirmed, in writing, within TEN (10) WORKING DAYS after the date of the oral order issuance. 

SECTION B—SUBCONTRACT ADMINISTRATION CLAUSES  

B-1  AUTHORIZED REPRESENTATIVES  

The
following individuals are the authorized representatives for both parties hereto: 

Buyer  

	Position/Function
 
	 	Authority

	President and CEO	 	Obligate Buyer and Execute all Agreements and Documentation
	

Sr. Vice President, Administration	
 	

Obligate Buyer and Execute all Agreements and Documentation
	

Director of Contracts	
 	

Obligate Buyer and Execute all Agreements and Documentation
	

Subcontract Administrator	
 	

Initiate, Negotiate and Approve Contractual Activity on a day-to-day basis
	
Seller
	

President & CEO	
 	

Obligate Seller and Execute all Agreements and Documentation
	

President & CEO	
 	

Obligate Seller and Execute Contractual Agreements and Related Documentation
	

Director of Engineering/Program Mgr.	
 	

Initiate, Negotiate and Approve Contractual Activity on a day-to-day basis

B-2  SUBCONTRACT ADMINISTRATION  

With
the exception of oral authorization as stated in Article A-7, no oral statement from any person whomsoever, shall in any manner or degree, modify or otherwise affect the terms
of this Subcontract. Only those individuals identified in Section B-1 as authorized to obligate the Buyer may approve changes in any of the requirements under this Subcontract, and
not withstanding any provisions contained elsewhere in this Subcontract, the said authority remains solely with those identified in Section B-1. In the event the Seller effects any
such change at the direction of any person other than those identified in Section B-1, the change will be considered to
have been without authority and no adjustment will be made in the subcontract price to cover any increase in costs incurred as a result thereof. 

In
addition to any requirements of the "Notification of Change" clause, the Seller must, within seven (7) calendar days, notify the Subcontract Administrator of any direction, instruction, or
communications received from Government personnel or SIGNAL personnel, the implementation of which is estimated to increase the Subcontract cost of performance, even though such direction is
considered by the Seller to be within the contract scope. 

All
meetings and other contacts involving the Seller's personnel and/or their representatives with representatives of the Government, relative to the effort herein, shall be coordinated through the
Buyer's duly authorized representative. The Seller is further reminded that only the Buyer can direct the Seller and/or modify the terms and conditions of the Subcontract Agreement.  Such modifications shall be set forth in
writing signed by both parties. 

B-3  TECHNICAL DIRECTION  

The
Buyer may designate a representative to serve as the Technical Representative under this Subcontract. Such a representative, if appointed, shall be designated in writing from the 

Subcontract
Administrator to the Seller. The Technical Representative shall represent the designated Subcontract Administrator for technical performance issues  only. The Technical Representative is not authorized
to commit the Buyer or make any changes to this Agreement. If at any time the Seller believes that
the Technical Representative is requesting any changes to this Agreement, the Seller will immediately notify the Buyer's Subcontract Administrator. The following individual(s) is/are designated
representative(s) under this Subcontract. 

	 	For Buyer:	 	Mr. Barry Kane/Ms. Sylvia Dennis/Mr. Douglas Hildebrand
	 	For Seller:	 	David L. Jannetta/Peter Delricco

B-4  SUBCONTRACTING  

The
Seller shall not subcontract any of the services to be performed or items to be delivered hereunder without the prior written approval of the Buyer. Any approval, if given, shall be without
prejudice to the Buyer and Seller shall assume all liability for subcontracts issued hereunder and the work or services performed. Any subcontractor retained by the Seller must be obliged in writing
to the same obligations as are set forth herein with respect to the Seller. In the event that the Seller receives approval to subcontract certain portions of the services, the term "employee" as it
refers to the Seller herein shall be deemed to include such subcontractor and its employees. Seller agrees that any subcontractor's charges for work for which the Seller seeks reimbursement from the
Buyer hereunder shall be no higher than if performed by the Seller, unless otherwise agreed to in writing by the Buyer. By this Agreement, Buyer gives written consent to enter
into subcontract agreements as contemplated by the proposal(s) submitted to and accepted by Buyer. 

B-5  PRIVITY OF CONTRACT  

In
order to properly perform and/or execute this Agreement, the Seller may require frequent interface with the Buyer's client (the Client). However, no privity of contract exists between the Seller
and the Client-Seller may neither take direction from, nor discuss any terms and conditions of this Agreement with the Client unless the Buyer is present and authorizes the discussion. Seller shall
immediately notify Buyer's Technical Representative if at any time he believes the Client is effecting a change to this Subcontract. Breach of this clause is cause for Termination in accordance with
Article B-17, Termination. 

B-6  INVOICE AND PAYMENT  

	A.
	The
Seller shall invoice the Buyer not more than on a monthly basis covering the amount claimed to be due for services rendered and cost incurred thereunder. Invoices or vouchers for
payments hereunder shall be certified by a responsible official of the Seller's organization and shall be submitted in an original and two (2) copies to the following addresses: 

	 	Original and One (1) Copy To:	 	One (1) Copy To:
	

 	

Accounts Payable, ITOP II

SIGNAL Corporation

3040 Williams Drive, Suite 200

Fairfax, Virginia 22031	
 	

Douglas Hildebrand

SIGNAL Corporation

3040 Williams Drive, Suite 200

Fairfax, Virginia 22031

	B.
	Each
invoice submitted by the Seller shall contain the following:

	1.
	Name
and address of the Subcontractor

	2.
	Subcontract
Number

	3.
	Purchaser
Order Number

	4.
	Invoice
Number 

	5.
	Invoice
Amount

	6.
	Invoice
Date

	7.
	Period
of Performance for which the invoice is submitted.

	8.
	For
CPAF, and CPFF, for the current period, a breakdown of total costs by line item fully loaded (exclusive of fee) with the appropriate subcontractor burden. Major line items include
but are not limited to direct labor, travel, and other direct costs. All overtime premium cost, if allowable, shall be itemized. Fee shall be shown as a separate line item on the invoice.

	9.
	The
number of direct labor hours shall be provided by individual name/labor category during the current period and cumulative through the invoice period. ODCs shall be shown as a
separate line item on the invoice.

	10.
	T&M
invoices shall be submitted in accordance with FAR clause 52.232-7, Payment under Time-and-Materials and Labor Hours Contracts to
include the withholding of costs.

	11.
	To
the extent authorized by the Buyer, travel and other direct costs incurred will be reimbursed at cost. All travel shall be performed and will be reimbursed in accordance with the
Government Joint Travel Regulations. No fee will be paid on travel and other direct costs incurred by the Seller.

	12.
	Cumulative
amounts for costs and fee by line item invoiced through the period for which the current invoice is rendered.

	13.
	CPAF
and CPFF invoices should provide for a withholding of fee in accordance with FAR Clause 52.216-08, Fixed Fee. Payments of fee will be based on the percentage
of costs incurred subject to the withholding requirements. In the event of discontinuance of work or sufficient funds are not allotted to the Subcontract, the Seller's fee will be adjusted in
accordance with the amount of work performed. In no event shall the Buyer be required to pay the Seller any amount in excess of the funds allotted under this Subcontract unless
otherwise agreed to in writing.

	14.
	For
FFP POs, the Seller shall invoice the Buyer for labor costs in accordance with FAR Clause 52.232-1, "Payments". 

	C.
	Invoices
shall be submitted on a monthly basis, in accordance with the Seller's accounting calendar, but shall be due by the 10th of each month.

	D.
	Seller
shall be paid within ten (10) business days of receipt of payment from the Government. To ensure the most timely payment, the Seller should submit their invoice by the
10th of the month. Remittance address for payment shall be stated on each invoice.

	E.
	The
Buyer will notify the Seller if any reimbursable costs claimed by the Seller are unallowable. The Seller will then submit a revised invoice to the Buyer's offices cited above.

	F.
	The
Buyer may request and the Seller shall furnish supporting documentation for any invoice. Supporting documentation shall include, but is not limited to, time sheets, travel claims,
and invoices for other direct charges.

	G.
	The
final invoice shall be clearly designated as the "Final Invoice" and shall be supported by a schedule of cumulative amounts incurred and billed to completion date. The Buyer shall
not be held liable for final invoices submitted later than ninety (90) days after completion of services unless mutually agreed upon.

	H.
	The
Seller agrees to indemnify and hold the Buyer harmless for any claims by the Government for fines, penalties, or request for refunds because of billing irregularities of the Seller
or rate disputes with the Seller. 

B-7  LIMITATION OF BUYER'S OBLIGATION  

The
parties contemplate that the Buyer may allot funds to this Agreement by issuance of individual Purchase Orders which will state separately the amounts allotted for performance, and the period of
performance such amounts are expected to cover. However, the Seller is not required to continue performance once funds assigned to date have been expended and Buyer is not required to reimburse Seller
for any funds expended beyond the funded amount contained herein or within individual POs subsequently increased or decreased in accordance with modification procedures. 

B-8  INSPECTION AND ACCEPTANCE  

Final
inspection and acceptance of all work to be performed hereunder shall be made in accordance with the Statement of Work and Contract Data Requirements List (CDRL) provided in Exhibit A.
The Program Manager/Technical Representative must subject all CDRL items to SIGNAL's Quality Assurance Review and approval. The Buyer shall make final inspection and acceptance of all
supplies and/or all work to be performed hereunder. 

B-9  DELIVERY  

All
items shall be shipped F.O.B. destination. Title shall transfer upon delivery to Buyer, but shall revisit with Seller upon a rejection or revocation of acceptance by Buyer. 

B-10 WARRANTIES  

	A.
	Seller
represents and warrants that Seller is under no obligation or restriction nor will Seller assume any such obligation or restriction which would in any way interfere or be
inconsistent with, or present any conflict of interest concerning the services or items to be furnished by the Seller under this Agreement.

	B.
	Seller
warrants that it shall perform all services contracted for under this Agreement in a workmanlike manner and in accordance with the requirements set forth in the Statement of
Work and/or Purchase Order issued hereunder.

	C.
	Seller
warrants the originality of the items prepared for or submitted to the Buyer under this Agreement and that no portion of such items or their use or distribution violates or is
protected by any copyright or similar right of any third party. 

B-11 YEAR 2000 WARRANTY  

	A.
	Year 2000 Warranty: Seller represents and warrants that the Products (including all hardware, software and firmware created or delivered
by Seller or created by any third-party and sold/licensed pursuant to the Contract), are capable of accurately processing date/time data—including, but not limited to, calculating,
comparing, and sequencing—from, into, and between the twentieth and twenty-first centuries, and the years 1999 and 2000, and leap-year calculations, and that the Products have
been tested to validate these capabilities. Further, Seller represents and warrants that the Products being acquired when used in combination with other information technology, shall accurately
process date/time data if the other information technology properly exchanges date data with it. Without limiting the foregoing, the Seller further represents and warrants that: (a) If the
Contract requires that the specific Products listed in the Contract must perform together as a system, then this warranty shall apply to those listed products as a system; (b) The Products
provide that all date-related data interface functionalities include the indication of century; and (c) The Products provide that all date-related user interface
functionalities and data fields include the indication of century. 

	B.
	Warranty Term: The warranty set forth herein shall begin as of the date of the Contract and end on the date after March 1, 2000,
subsequent to which the Products have operated without failure or defect for a consecutive one (1) year period.

	C.
	Remedies For Noncompliance of Year 2000 Warranty:

	1.
	Seller
agrees, at SIGNAL's option, to (i) make repairs to any defective Products within twenty-four (24) hours of report of such defect by
SIGNAL at no charge to SIGNAL, or (ii) replace any defective Products with conforming Products at Seller's sole expense. In the event SIGNAL elects to have the Products repaired by the Seller
in the face of any decrease in Product functionality related to time and date related codes and internal subroutines that impede the Products from operating beyond the year 1999, the Seller agrees to
make required corrections to restore the Products to the same level of functionality as warranted herein without interruption to the ongoing business of SIGNAL.

	2.
	Any
provisions of the Contract that tend to limit or eliminate the liability of Seller shall have no application with respect to the Year 2000 Warranty set forth herein. Nothing in
this warranty provision shall be construed to limit any rights or remedies SIGNAL may otherwise have under the Contract with respect to defects other than Year 2000 performance. 

B-12 SECURITY REQUIREMENTS  

The
Contract Security Classification Specification (DD Form 254), Exhibit D, maybe applicable to this Subcontract, and will be part of this Agreement. The Seller shall maintain and
administer a security program in accordance with DOD 5220.00-M, "Industrial Security Manual for Safeguarding Classified Information", and DIAR 50-2, "Information Security
Program", and those additional documents identified on the DD Form 254. 

Loss
or suspension of required security clearance, as set forth in the DD Form 254, will result in the inability to perform in accordance with the terms and conditions of the Subcontract. As a
result, the subcontract is subject to termination in accordance with FAR clause 52.249-06, Termination (Cost Reimbursement). 

The
Buyer reserves the right to direct any employee of the Seller to be removed from performance, direct or indirect, for reason of security violation(s) whether or not deemed of sufficient severity
to warrant action to terminate the Seller's or individual's security clearance. The Buyer also reserves the right to direct any employee of the Seller to be removed for any investigation of alleged
misconduct which may, in the opinion of the Buyer, jeopardize the security of the project. 

B-13 REPORTS  

The
Seller shall furnish Reports, Data, and Other Documentation as set forth in this subcontract. All reports, and/or documentation shall be delivered in accordance with instructions contained in the
Statement of Work attached herein. 

B-14 CHANGES  

The
Buyer, may at any time, by written modification to the Subcontract Agreement and related purchase orders, make changes within the general scope of this subcontract, in any one or more of the
following: (i) statement of work, types of services, drawings, designs, or specifications, where the supplies to be furnished are specifically manufactured for the Buyer in accordance
therewith; (ii) method of shipment or packaging; (iii) place of delivery; and Seller shall comply therewith. 

If
any changes causes an increase or decrease in the cost or the time required for the performance of any part of the work under this subcontract and any related purchase order, an equitable 

adjustment
may be made in the price or delivery schedule, or both, and the subcontract and related purchase order shall be modified in writing accordingly. Any claim by Seller for adjustment under
this clause must be asserted within ten (10) days from the date of receipt by Seller of the notification of change provided, however, the Buyer, if it decides that the facts justify such
action, may receive and act upon any such claim asserted at any time prior to final payment under the subcontract. Where the cost of property made obsolete or excess as a result of a change is
included in Seller's claim for adjustment, Buyer shall have the right to prescribe the manner of disposition of such property. Failure to agree on any claim for equitable adjustment under this clause
shall be a dispute and the Seller may thereupon pursue any remedy which it may have in under the clause B-29 (Disputes). Pending the resolution of any such dispute, Seller shall
diligently pursue the performance under the subcontract related purchase order as changed. 

B-15 INSURANCE  

The
Seller shall at its own expense, procure and thereafter maintain the following kinds of insurance with respect to performance under this Subcontract: 

Workers' Compensation and Employer's Liability Insurance as required by law except that if this Subcontract is to be performed in a State which does not
require or permit private insurance, then compliance with the statutory or administrative requirements in any such State will be satisfactory. The required Workers' Compensation insurance shall extend
to cover employer's liability for accidental bodily injury or death and from accidental bodily injury or death and for occupational disease with a minimum liability limit of $200,000. 

General Liability Insurance. Bodily injury liability insurance, in the minimum limits of $1,000,000 per occurrence shall be required on the
comprehensive form of policy. 

Automobile Liability Insurance. This insurance shall be required on comprehensive form of policy and shall provide bodily injury liability and property
damage liability covering the operation of all automobiles used in connection with the performance of the contract. At least the minimum limits of $400,000 per person and $1,000,000 per occurrence for
bodily injury and $40,000 per occurrence for property damage shall be required. 

Prior
to the commencement of work hereunder, the Seller shall furnish to the Buyer a certificate or written statement evidencing issuance of the above required insurance. The Seller shall notify buyer
when cancellation or any material change in the policies adversely affects the interests of the Buyer in such insurance and such changes shall not become effective until thirty (30) days after
written notice is provided to the Buyer. 

In
the event the Seller fails to furnish such certificates prior to the commencing of work or to continue to maintain such insurance during the performance of the subcontract, the Buyer shall have the
right to terminate this Subcontract for default or to withhold any payments or partial payments required to be made under this Subcontract and shall have the right to continue withholding any or all
of said payments so long as the Seller has not complied with the requirements of this clause. 

B-16 NOTICE OF DELAY  

In
addition to its obligation herein with respect to notice of labor disputes, whenever any other actual or potential event is delaying or threatening to delay delivery of the goods or performance of
the services under this Subcontract, the Seller shall as soon as possible give notice thereof to the Buyer. 

B-17 TERMINATION  

The
Buyer may terminate this Subcontract in whole or in part for default if Seller fails to properly perform in accordance with the terms and conditions stated herein. If Seller fails to cure the
default within ten (10) days after receiving a notice specifying the default, such termination may 

require
the Buyer to otherwise acquire the goods and services and Subcontractor will be liable for Buyer's costs for such other goods and services. 

In
addition, Seller will be liable for vendor cost to Buyer for these goods or services in excess of those costs stated herein. The cost will include but not exceed the total expenditures necessary to
recover goods or services lost for the work for which Seller was determined to be in default. 

If
the Government terminates the Prime Contract in whole or in part for any reason, Buyer may terminate the Subcontract in whole or in part. In addition, Seller agrees to honor a stop work order
issued by Buyer as a result of a stop work issued to the Buyer by the Government. 

The
Buyer may terminate this Agreement immediately in the event of: 

	(i)
	any
proceeding in insolvency, dissolution or liquidation by or against the Seller;

	(ii)
	any
assignment of Seller's assets for the benefit of creditors; or

	(iii)
	any
transfer of substantially all of Seller's business or assets to a third party. 

DELETED UNILATERAL TERMINATION PROVISION  

        Upon termination, Seller will immediately return to Buyer all equipment, supplies, property or other items procured by or given to Seller for performance of this
Subcontract. In addition, Seller will deliver to Buyer all work completed or in process under this Subcontract. 

Upon
termination, the Buyer shall pay all unpaid allowable charges due to the Seller. 

B-18 CONFLICT OF INTEREST  

The
Seller shall notify the Buyer in writing identifying any situation in which the potential for an Organizational Conflict of Interest exists. 

B-19 KEY PERSONNEL  

The
Seller shall not without prior written notice to and approval by Buyer and the Government, change the Staff designated in individual Purchase Orders as "key personnel" except for reasons of
resignation, death, or inability to work by reasons of health. Change includes, but is not limited, to reassignment in any fashion, relief from current responsibility, or transfer to lesser or
unrelated Responsibility. 

Seller
must provide replacement personnel possessing equal or better related job knowledge, experience and authority at no additional costs to the Buyer or Government. In the event Seller can not meet
this requirement, SIGNAL shall have the unilateral right to staff the billet without consideration to Seller. 

B-20 ASSIGNMENT OF PERSONNEL  

The
Seller shall receive approval from the Buyer's Technical Representative for all personnel assigned to work under this Subcontract or otherwise involved in the performance of the Subcontract prior
to their commencement of work related to the Subcontract. The Buyer shall document to the Seller in writing the specific reasons for not accepting any applicant which the seller has selected to meet
the position qualifications. 

B-21 STAFFING AND CONDUCT OF SELLER PERSONNEL  

The
Seller shall segregate the labor categories pursuant to the classification and qualification levels in Exhibit E (this section applies to the classification and levels of labor quality
specified in the initial solicitation). 

The
Seller's staffing actions and personnel assigned under the Subcontract shall be approved in advance by the Buyer's Program Manager or duly authorized representative in order to assure 

compliance
with the Statement of Work. Should the Seller be unable to meet the staffing plan, such staffing shortfall may not be compensated for by over staffing during later periods without the
approval of the Buyer's Program Manager or duly authorized representative. 

The
Buyer's Program Manager, after due consultation with the Seller, may request the Seller remove any employee of the Seller whose performance is deemed unacceptable and it shall be the
responsibility of the Seller to so remove and replace that individual at no cost to the Buyer. 

If
the Seller is requested to remove any of the Seller's personnel from further performance under this Subcontract for reason of unethical conduct, security reasons, or for violation of installation
regulations, the Seller shall bear all costs associated with such removal including the costs for replacement of the personnel removed. 

B-22 NO-HIRE PROVISION  

During
the period of performance of this subcontract, and for a period of one (1) year thereafter, the neither party shall not solicit or engage the services of any employee of the other party
engaged in performance of work related to this subcontract, without expressed written notification to and acceptance by the other party. 

However,
in the event of Termination of Default of the Seller, in accordance with Article B-17, Termination, this clause will have no force or effect. 

B-23 PROPRIETARY OR CONFIDENTIAL INFORMATION  

Seller
shall not disclose and shall protect from disclosure all Buyer and client confidential data, acquired by the Seller under this Agreement, for a period of three (3) years following the
termination of this Agreement. 

Seller
shall not use or duplicate, in any way, any proprietary information, including trade secrets, belonging to or supplied by or otherwise made available by Buyer with the exception of such
duplication as required for the performance of work or the rendering of services for Buyer or at the direction of Buyer. By definition, all proprietary materials will be clearly stamped and identified
as such. 

Seller
shall not, without first obtaining the written permission of Buyer, divulge to any other person or organization for any reason, any proprietary information belonging to or supplied or otherwise
made available by Buyer relating to processes, designs, formulas, products, manufacturing methods, techniques, or any business in which Buyer is engaged or with which Buyer may be concerned. The term
"proprietary information" as used herein shall be defined as, such information and/or software provided to Seller by Buyer to perform or render services pursuant to this
Agreement and shall exclude software, sensors, business plans, designs and equipment developed or acquired by Seller or its subcontractor, and information or data generated or collected through the
operation, maintenance and installation of sensor based traffic monitoring systems.

If
Seller desires to employ proprietary information in the performance of tasks assigned hereunder which Seller wishes to hold outside the requirements of this clause, Seller shall obtain written
approval from Buyer prior to the use of said proprietary information. 

B-24 BANKRUPTCY  

Subject
to the rights of any trustee in bankruptcy and to applicable law, in the event of the appointment of a trustee, receiver, or liquidator for all or a portion of Seller's property, or for any
act of bankruptcy by the Seller as defined in the Bankruptcy Act, as amended, or for any voluntary petition in bankruptcy by the Seller, the Buyer may terminate the right of the Seller to proceed with
the performance of this Subcontract without further obligation, except that the Buyer shall be obliged to pay for any article or services delivered and accepted prior to any of the foregoing
occurrences. 

B-25 ASSIGNMENT OF SUBCONTRACT  

Any
assignment or delegation of this Subcontract or rights or duties hereunder by the Seller shall be void, unless the Buyer gives prior written consent thereto. Any funds due, or to become due
hereunder, may be assigned, provided that such assignment shall not be binding upon the Buyer until the assignment agreement is accepted and acknowledged in writing, and shall be subject to any proper
deductions or set-offs against such funds. 

In
no event shall copies of the Subcontract or any plans, specifications, or there similar documents relating to work under this Subcontract, if marked "Top Secret", "Secret", or "Confidential", be
furnished to any assignee of any claim arising under this Subcontract, or to any other person not entitled to receive the same. However, a copy of any part or this entire Subcontract may be furnished,
or any information contained therein may be disclosed, to such assignee upon prior written authorization of the Government Contracting Officer. A request for authorization shall be submitted through
the Buyer. 

B-26 RELEASE OF NEWS INFORMATION  

No
news releases, including photographs and films, public announcements or confirmation of same, or any part of the subject matter of this Subcontract or any phase of any program hereunder shall be
made without the prior written approval of the Buyer's Subcontract Administrator. 

B-27 CERTIFICATIONS  

All
certifications and representations including, but not limited to, those submitted to the Buyer in connection with the award of this Subcontract are incorporated herein and made part hereof and
such have been relied upon by the Buyer in issuing this Subcontract. The Seller agrees to promptly advise the Buyer should there by any change in the Seller's status with respect to the matters
covered by such representations and certifications. 

B-28 ORDER OF PRECEDENCE  

To
the extent of any inconsistency between the Section A—Schedule, Section B—Subcontract Administration clauses, Federal and DOD Acquisition Regulations and any
specification or other documents which are made a part hereof either as an attachment, by reference or otherwise, the Schedule and the Federal/DOD Acquisitions Regulations shall govern. To the extent
of any inconsistency between the Schedule and the Acquisition Regulations, the Schedule shall govern. 

B-29 INDEMNIFICATION  

Buyer
and Seller agree that they shall indemnify and hold harmless the other and their respective officers and employees from any loss, cost, damage, expense or liability of every kind and nature
which they may incur, arising out of, or in connection with performance under this Agreement, occasioned in whole or in part, by the actions or omissions of the other, or its lower tier
subcontractors. However, Seller agrees to indemnify Buyer to the full extent of any price or cost reduction effected by the Government, which may be as a result of Seller or its lower-tier
subcontractor cost accounting practices and standards that are found to be noncompliant with the Federal Acquisition Regulation (FAR) promulgated by Cost Accounting Standard Board and final audit
rates. 

B-30 DISPUTES  

Arbitrators
shall determine any disagreement arising between the parties hereto regarding the interpretation and application of this Subcontract Agreement, or the obligations or any matter of dispute
arising between the parties. Such arbitration shall be conducted by three (3) arbitrators (unless the parties agree to one), to be selected by the Buyer, Seller and the selected arbitrators
respectively. Conduct of the arbitration and decisions made shall be in strict conformity with 

Virginia
law, which will apply in the event of controversy. Arbitration proceedings will be conducted in Fairfax County, Virginia. The decisions of the arbitrator(s) shall be final, conclusive and
binding upon the parties hereto. 

B-31 RELATIONSHIP OF THE PARTIES  

It
is mutually agreed and understood that nothing contained herein shall preclude either party from its normal marketing effort in connection with its products and services. The parties shall act as
independent contractors in all matters. The employees or agents of one shall not be deemed to be the employees or agents of the other for any purpose under any federal or state Unemployment Insurance
law, old Age Benefits Law or Social Security Law, Workers' Compensation Law, or under Internal Revenue or War Tax Legislation, or under industrial law or otherwise. Neither party shall have the right,
power or authority to create any obligation, express, or implied, on behalf of the other except to the extent provided herein. Nothing in this Subcontract Agreement shall be deemed, held or construed
as creating a partnership, a pooling arrangement or joint enterprise for any purpose. 

B-32 NO-COMPETE PROVISION  

Not
withstanding the provisions set forth in the clauses B-16 (Termination) and B-22 (Proprietary or Confidential Information), the Seller shall, during the period of
performance of this Subcontract and through the period ending one (1) year after the completion of this subcontracted effort, refrain from
competing with the other party either as a Prime or Subcontractor for work efforts associated with the acquisition. For the duration of ITOP, the Seller's arrangement with the Buyer shall be exclusive
Seller shall not bid or participate with another ITOP team, even when the Buyer does not bid a particular opportunity of interest to the Seller. Violation of this provision shall be cause for
termination in accordance with Article B-17, Termination. 

B-33 ADMISSION OF OTHER SUBCONTRACTORS  

The
Seller shall permit other firms designated by the Buyer to become Sellers as post-award subcontractors under the terms and conditions allowed by ITOP. 

B-34 RIGHTS TO WORK/OPPORTUNITIES  

The
Seller acknowledges and accepts the following with respect to work opportunities arising under ITOP: 

	1.
	Waives
any claim to work that the Buyer or another Seller marketed and registered under and will sign a blanket waiver letter to that effect.

	2.
	Limits
any exclusive claim to the Seller's work that the Seller marketed and registered.

	3.
	Recognizes
the right-of-first-refusal applies and provides a preemptive right to over-the-transom opportunities if the Seller has been
designated as a Critical Pre-award subcontractor for that functional task area and if the Seller is fully qualified for the particular opportunity.

	4.
	Participates
on the basis that there is no guaranteed work, quotas, percentages, or the like, excluding possibly mandated socio-economic set-asides. 

B-35 OBSERVANCE OF LEGAL HOLIDAYS AND EXCUSED ABSENCE  

	(a)
	The
Buyer hereby provides NOTICE and Seller hereby acknowledges RECEIPT that Government personnel observe the listed days as holidays: 

New
Year's Day

Martin Luther King's 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 

B-36 SEVERABILITY  

If
any provision of this Agreement shall be determined to be illegal, invalid, or unenforceable, the remaining provisions shall remain in full force and effect. 

B-37 SURVIVAL  

The
provisions of clauses B-10, B-11, B-12, B-16, B-19, B-23, B-25, B-29, B-30,
B-31, and B-34 shall survive any termination of this Agreement. 

EXHIBIT A—STATEMENT OF WORK  

The
attached Statement of Work is incorporated for reference purposes only. Specific Task Order Statements of Work shall be submitted to Seller for submission of Task Proposals and will be
incorporated as part of each PO. 

EXHIBIT B—FLOWDOWN CLAUSES  

I.     FAR Clauses  

The
attached prime contract clauses of the Federal Acquisition Regulation (FAR) are incorporated herein by reference or in total, provided, however, that if the date or substance of any of the clauses
listed below is different than the date or substance of the clause incorporated into the prime contract referenced by number herein, the date or substance of the clause incorporated by said prime
contract applies instead. Those clauses required by the FAR as flowdown clauses to the supplier, but not listed below are deemed to apply in full force and effect to this Agreement. The FAR is
available from the Superintendent of Documents, U.S. Government Printing Office, Washington, D.C. 

In
all instances in the below-cited clauses, the "Contractor" refers to the supplier and the term "Government" refers to the Buyer and/the Government. The term "Contracting Officer" refers to Buyer,
except that the Buyer accepts that only Government representatives have access to the supplier's records in the event of an audit. 

II.    TFAR Clauses  

The
attached clauses of the Transportation Federal Acquisition Regulation (TFAR) Supplement are incorporated herein by reference, provided, however, that if the date or content of any of the clauses
listed below is different from the date or content of the clause incorporated in the prime contract referenced by number herein, the date or content of the clause incorporated by said prime contract
applies instead. Those clauses required by the FAR as flowdown clauses to the supplier but not listed in the attached are deemed to apply in full force and effect to this Agreement. The TFAR
Supplement is available from the Superintendent of Documents, U.S. Government Printing Office, Washington, DC 

In
all instances in the below-cited clauses, the term "Contractor" refers to the supplier and the term "Government" refers to the Buyer and/the Government. The term "Contracting Officer" refers to the
Buyer, except that the Buyer accepts that only Government representatives have access to the supplier's records in the event of an audit. 

	FAR Clause
 
	 	Clause Title and Date

	52.202-01	 	Definitions (OCT 1995)
	52.203-03	 	Gratuities (APR 1984)
	52.203-05	 	Covenant Against Contingent Fees (APR 1984)
	52.203-06	 	Restrictions on Subcontractor Sales to the Government (JUL 1985)
	52.203-07	 	Anti-Kickback Procedures (JUL 1995)
	52.203-10	 	Price or Fee Adjustment for Illegal or Improper Activity (JAN 1997)
	52.203-11	 	Certification and Disclosure Regarding Payments to Influence Certain Federal Transactions (APR 1991)
	52.203-12	 	Limitation on Payments to Influence Certain Federal Transactions (JUN 1997)
	52,204-01	 	Approval of Contract (DEC 1989)
	52.204-02	 	Security Requirements (AUG 1996)
	52.204-06	 	Data Universal Numbering Systems (DUNS) (APR 1998)
	52.209-06	 	Protecting the Government's Interest When Subcontracting with Contractors Debarred, Suspended or Proposed for Debarment (JUL 1995)
	52.211-15	 	Defense Priority and Allocation Requirements (SEP 1990)
	52.215-02	 	Audit and Records—Negotiation (AUG 1996)
	52.215-13	 	Subcontractor Cost or Pricing Data—Modifications (OCT 1997)
	52.215-24	 	Subcontractor Cost or Pricing Data (OCT 1995)
	52.215-26	 	Integrity of Unit Prices (JAN 1997)
	52.216-07	 	Allowable Cost and Payment (APR 1998)
	52.216-08	 	Fixed Fee (MAR 1997)
	 	 	 

	52.219-08	 	Utilization of Small, Small Disadvantaged and Women-Owned Small Business Concerns (JUN 1997)
	52.219-09	 	Small, Small Disadvantaged and Women-Owned Small Business Subcontracting Plan (AUG 1996)
	52.219-14	 	Limitations on Subcontracting (DEC 1996)
	52.219-16	 	Liquidated Damages—Subcontracting Plan (OCT 1995)
	52.222-03	 	Convict Labor (AUG 1996)
	52.222-04	 	Contract Work Hours and Safety Standards Act—Overtime Compensation (JUL 1995)
	52.222-26	 	Equal Opportunity (APR 1984)
	52.222-35	 	Affirmative Action for Special Disabled and Vietnam Era Veterans (APR 1984)
	52.222-36	 	Affirmative Action for Handicapped Workers (APR 1984)
	52.222-37	 	Employment Reports on Special Disabled Veterans and Veterans of the Vietnam Era (JAN 1988)
	52.222-41	 	Service Contract Act of 1965, as Amended (MAY 1989)
	52.222-42	 	Statement of Equivalent Rates for Federal Hires (MAY 1989)
	52.222-43	 	Fair Labor Standards Act and Services Contract Act—Price Adjustment (MAY 1989)
	52.223-02	 	Clean Air and Water (APR 1984)
	52.223-06	 	Drug-Free Workplace (JAN 1997)
	52.225-03	 	Buy American Act—Supplies (JAN 1994)
	52.225-11	 	Restrictions on Certain Foreign Purchases (OCT 1996)
	52.225-19	 	European Union Sanction for Services (JAN 1996)
	52.227-01	 	Authorization and Consent (JUL 1995)
	52.227-02	 	Notice and Assistance Regarding Patent and Copyright Infringement (AUG 1996)
	52.227-10	 	Filing of Patent Applications—Classified Subject Matter (APR 1984)
	52.227-14	 	Rights in Data—General (JUN 1988)
	52.228-05	 	Insurance—Work on a Government Installation (JAN 1997)
	52.232-01	 	Payments (APR 1984)
	52.232-07	 	Payments under Time-and-Materials and Labor-Hour Contracts (FEB 1997)
	52.232-18	 	Availability of Funds (APR 1984)
	52.232-20	 	Limitation of Cost (APR 1984)
	52.232-22	 	Limitations of Funds (APR 1984)
	52.233-01	 	Disputes (OCT 1995), Alternate I (OCT 1995)
	52.242-03	 	Penalties for Unallowable Costs (OCT 1995)
	52.242-13	 	Bankruptcy (JUL 1995)
	52.243-01	 	Changes—Fixed Price (AUG 1987)
	52.243-01	 	Changes—Fixed Price—Alternate I (APR 1984)
	52.243-01	 	Changes—Fixed Price—Alternate II (APR 1984)
	52.243-02	 	Changes—Cost Reimbursement (AUG 1987)
	52.243-02	 	Changes—Cost Reimbursement—Alternate I (APR 1984)
	52.243-02	 	Changes—Cost Reimbursement—Alternate II (APR 1984)
	52.243-03	 	Changes—Time-and-Materials or Labor Hours (AUG 1987)
	52.244-02	 	Subcontracts (AUG 1998)
	52.245-02	 	Government Property (Fixed-Price Contracts) (DEC 1989)
	52.245-05	 	Government Property (Cost Reimbursement, Time-and-Materils, or Labor-Hour Contracts) (JAN 1986)
	52.246-03	 	Inspection of Supplies—Cost Reimbursement (APR 1984)
	52.246-05	 	Inspection of Services—Cost Reimbursement (APR 1984)
	52.246-25	 	Limitation of Liability-Services (FEB 1997)
	52.249-02	 	Termination of Convenience of the Government (Fixed-Price) (SEP 1996)
	52.249-06	 	Termination (Cost-Reimbursement) (SEP 1996)
	52.249-06	 	Termination (Cost-Reimbursement)—Alternate IV (SEP 1996)
	52.249-08	 	Default (Fixed-Pirce Supply and Service) (APR 1984)
	52.253-01	 	Computer Generated Forms (JAN 1991)
	 	 	 

	 	 	 
	TAR Clause
	 	Clause Title and Date

	I252.209-07	 	Disclosure of Conflicts of Interest (OCT 1994)
	I252.219-70	 	Small Business and Small Disadvantaged Business Subcontracting Report (OCT 1994)
	I252.223-71	 	Accident and Fire Reporting (OCT 1994)
	I252.237-70	 	Qualifications of Employees (OCT 1994)
	I252.242-71	 	Contractor Testimony (OCT 1994)
	I252.242-72	 	Dissemination of Contract Information (applicable unless the contract requires the release or coordination of information) (OCT 1994)
	I252.2450-70	 	Government Property Records (OCT 1994)

EXHIBIT C—REPRESENTATIONS AND CERTIFICATIONS  

(Incorporated By Reference) 

EXHIBIT D—DD FORM 254  

(Incorporated as needed) 

EXHIBIT E—LABOR CATEGORIES AND QUALIFICATIONS  

(SEE ATTACHED) 

 
 

PART I—COMPLETE ARTICLES K.1 To K.9 FOR ALL PROCUREMENTS    
    

NOTE: INDIVIDUALS ARE TO COMPLETE ARTICLE K.16 FOR ALL PROCUREMENTS 

K.1  Small Business Program Representations (Far 52.219-1)

	(a)
	The
Offeror represents and certifies as part of its offer that it (X) is, (   ) is not a Small Business concern.

	(b)
	(Complete
only if offeror represented itself as a small business concern above). The Offeror represents as part of its offer that it (   ) is, (X) is not a small
disadvantaged business concern.

	(c)
	(Complete
only if offeror represented itself as a small business concern in paragraph (a) above). The offeror represents as part of its offer that it (   ) is, (X)
is not a women-owned small business concern. 

A
"small business concern," as used in this provision, 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/subcontracts and qualified under the criteria concerning number of employees, average annual receipts, or other criteria, as prescribed by the Small Business Administration
under the Code of Federal Regulations (CFR), Title 13, Part 121. 

A
"small disadvantaged business concern," as used in this provision, means a small business concern that (1) is at least 51 percent unconditionally owned by one or more individuals who
are both socially and economically disadvantaged, or a publicly owned business having at least 51 percent of its stock unconditionally owned by one or more socially and economically
disadvantaged individuals, and (2) has its management and daily business controlled by one or more such individuals. This term also means a small business concern that is at least
51 percent unconditionally owned by an economically disadvantaged Indian tribe or Native Hawaiian Organization, or a publicly owned business having at
least 51 percent of its stock unconditionally owned by one or more of these entities, which has its management and daily business controlled by members of an economically disadvantaged Indian
tribe or Native Hawaiian Organization, and which meets the requirements of 13 CFR Part 124. 

A
"woman owned small business concern," as used in this provision, means a small business concern that (1) which is at least 51 percent owned by one or more women or, in the case of any
publicly owned business, at least 51 percent of the stock of which is owned by one or more women; and (2) whose management and daily business operations are controlled by one or more
women. 

K.2  Type of Business Organization (Far 52.215-6)

The
Offeror, by checking the applicable box, represents that: 

	(a)
	It
operates as (X) a corporation incorporated under the laws of the State or Commonwealth of Delaware, (   ) an individual, (   ) a partnership, (   )
a nonprofit organization, (   ) or a joint venture.

	(b)
	If
the Offeror or quoter is a foreign entity, it operates as (   ) an individual, (   ) a partnership, (   ) a nonprofit organization,
(   ) a joint venture, (   ) or a corporation registered for business in                        
(country). 

K.3  Taxpayer Identification (Far 52.204-3)

	(a)
	Definitions.

Common
parent, as used herein, means that corporate entity that owns or controls an affiliated group of corporations that files its Federal Income Tax returns on a consolidated basis, and of which the
offeror is a member. 

Corporate
status as used herein, means a designation as to whether the offeror is a corporate entity, an unincorporated entity (e.g., sole proprietorship or partnership), or a corporation providing
medical and health care services. 

Taxpayer
Identification Number (TIN), as used herein, means the number required by the IRS to be used by the offeror in reporting income tax and other returns. 

	(b)
	The
offeror is required to submit the information required in paragraphs (c) through (e) below in order to comply with reporting requirements of 26 U.S.C. 6041, 6041A,
and 6050M and implementing regulations issued by the Internal Revenue Service (IRS). If the resulting subcontract is subject to the reporting requirements described in FAR 4.903, the failure or
refusal by the offeror to furnish the information may result in a thirty-one percent (31%) reduction of payments otherwise due under the subcontract.

	(c)
	Taxpayer
Identification Number (TIN). 

	 	(X)	TIN: 25-1823631
	

 	

(   )	

TIN has been applied for.
	

 	

(   )	

TIN is not required because:
	

 	

(   )	

Offeror is a nonresident alien, foreign corporation, or foreign partnership that does not have income effectively connected with the conduct of a trade or business in the U.S. and does not have an office of place of business or a fiscal paying agent
in the U.S.;
	

 	

(   )	

Offeror is an agency or instrumentality of a foreign government;
	

 	

(   )	

Offeror is an agency of instrumentality of a federal, state, or local government;
	

 	

(   )	

Other: State basis.

	(d)
	Corporate
Status. 

	 	(   )	Corporation providing medical and health care services, or engaged in the billing and collecting of payments for such services;
	

 	

(X)	

Other corporate entity;
	

 	

(   )	

Not a corporate entity;
	

 	

(   )	

Sole proprietorship
	

 	

(   )	

Partnership
	

 	

(   )	

Hospital or extended care facility described in 26 CFR 501(c)(3) that is exempt from taxation under 26 CFR 501(a).

	(e)
	Common
Parent. 

	 	(X)	Offeror is not owned or controlled by a common parent as defined in paragraph (a) above.
	

 	

(   )	

Name and TIN of common parent:

	          	 	 	 	 
	 	 	Name	 	 
	 	 	 	 	

	 	 	TIN	 	 
	 	 	 	 	

K.4  Buy American Act—Trade Agreements Act—Balance of Payments Program Certificate (Far
52.225-8)

	(a)
	The
offeror hereby certifies that each end product, except those listed in paragraph (b) below, is a domestic end product was defined in the FAR
clause 52.225-9) and that components of unknown origin have been considered to have been mined, produced, or manufactured outside 

the
United States, a designated country, North American Free Trade Agreement (NAFTA) Country, or a Caribbean Basin country, as defined in FAR 25.401. 

	(b)
	Excluded
End Products: N/A 

	 	 	
	 	

	 	 	Lane Item Number	 	Country of Origin
	 	 	
	 	

	 	 	
	 	

	 	 	
	 	

	 	 	
	 	

	 	 	(List on separate sheet as necessary)	 	 

	(c)
	Offerors
will be evaluated by giving certain preferences to domestic end products and designated country end products, NAFTA country end products, and Caribbean Basin country end
products over other end products. In order to obtain these preferences in the evaluation of each excluded end product listed in paragraph (b) above, offerors must identity and certify below
those excluded end products that are designated NAFTA country end products or Caribbean Basin country end products. Products that are not identified and certified below will not be deemed designated
country end products, NAFTA country end products, or Caribbean Basin country end products. Offerors must certify by inserting the applicable line item numbers in the following:

	(1)
	The
Offeror certifies that the following supplies qualify as "designated or NAFTA country end products" as that term is defined in FAR clause 52.225-9:

	(2)
	The
offeror certifies that the following supplies qualify as "Caribbean Basin country end products" as that term is defined in FAR clause 52.225-9:

	(d)
	Offers
will be evaluated in accordance with Part 25 of the Federal Acquisition Regulation. 

K.5  Place of Performance (Far 52.215-20)

	(a)
	The
offeror, in the performance of an order resulting from this solicitation, (   ) intends, (X) does not intend to use one or more plants or facilities located at a
different address from the address of the offeror as indicated in its proposal.

	(b)
	If
the offeror checked "intends" in paragraph (a) above, it shall insert in the spaces provided below the required information: 

	 	 	
 (PLACE OF PERFORMANCE)
	 	 	
 (STREET ADDRESS)
	 	 	
 (CITY)	
 (STATE)	
 (ZIP CODE)

K.6  Authorized Negotiators (FAR.215-II)

The
offeror represents that the following persons are authorized to negotiate on its behalf with the Contractor in connection with this request for proposals or quotations: 

	 
	 	Name
 
	 	Title
	 	Phone Number

	 	 	DAVID L. JANNETTA
 PETER DELRICCO
	 	PRESIDENT
 PM
	 	717-731-0930
717-580-8144

K.7  Royalty Information (FAR.52.227-6)     N/A

	(a)
	Cost or charges for royalties. When the offerors response to this solicitation contains costs or charges for royalties totaling more
than $250, the following information shall be furnished relating to each separate item of royalty or license fee:

	(1)
	Name
and address of licenser.

	(2)
	Date
of license agreement.

	(3)
	Patent
numbers, patent application serial numbers, or other basis on which the royalty is payable.

	(4)
	Brief
description, including any part or model numbers of each subcontract item or component on which the royalty is payable.

	(5)
	Percentage
or dollar rate of royalty per unit.

	(6)
	Unit
price of subcontract item.

	(7)
	Number
of units.

	(8)
	Total
dollar amount of royalties.

	(b)
	Copies of current licenses. In addition, if requested by the Contractor, the offeror shall furnish a copy of the current license
agreement and an identification of applicable claims of specific patents. 

K.8  Management of Government Property In Offferor's Possession (Far Subpart 45.5)

	(a)
	This
is to certify that offeror (   ) does, (X) does not have a current, approved Government Property Control System in accordance with FAR Subpart 45.5.

	(b)
	If
offeror does have a current, approved Government Property Control System, such approval was granted

by
                                         
        (approval agency),
location                                        
                                 

dated:
                                         
       , telephone
number:                                        
                                

	(c)
	If
offeror does not have a current, approved Government Property Control System, and such property is planned to be furnished to the offeror for work to be performed hereunder, the
offeror shall, if so requested, promptly prepare and furnish a copy at its Property Control Administration Procedures to the Contractor for review. 

K.9  Walsh-Healey Public Contracts Act Representation (Far 52.222-20)

If
this contract is for the manufacture or furnishing of materials, supplies, articles or equipment in an amount that exceeds or may exceed $10,000, and is subject to the Walsh-Healey Public Contracts
Act, as amended 941 U.S.C. 35-45), the following terms and conditions apply: 

	(a)
	All
stipulations required by the Act and regulations issued by the Secretary of Labor (41 CFR Chapter 50) are incorporated by reference. These stipulations are subject to all
applicable rulings and interpretations of the Secretary of Labor that are now, or, may hereafter, be in effect.

	(b)
	All
employees whose work related to this contract shall be paid not less than the minimum wage prescribed by regulations issued by the Secretary of Labor (41 CFR
50-202.2). Learners, student learners, apprentices and handicapped worked may be employed at less than the prescribed minimum wage (see 41 CFR 50-202.3) to the same extent that
such employment is permitted under Section 14 of the Fair Labor Standards Act (41 U.S.C. 40). 

 
 

PART II—IN ADDITION TO PART I, ARTICLES K.10 THROUGH AND K.12 ARE TO BE COMPLETED FOR ALL PROCUREMENTS $10,000 OR MORE    
    

K.10 Certification of Nonsegregated Facilities (Far 52.222-21)

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

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

	(c)
	The
offeror further agrees that (except where it has obtained identical certifications from proposed subcontractors for specific time periods) it will;

	(1)
	Obtain
identical certifications from proposed subcontractors before the award of subcontracts under which the subcontractor will be subject to the Equal Opportunity clause;

	(2)
	Retain
the certifications in the files; and,

	(3)
	Forward
the following notice to the proposed subcontractors (except if the proposed subcontractors have submitted identical certifications for specific time periods): Notice to
prospective subcontractors of requirement for certifications of nonsegregated facilities. 

A
Certification of Nonsegregated Facilities must be submitted before the award of a subcontract under which the subcontractor will be subject to the Equal Opportunity clause. The certification may be
submitted either for each subcontract or for all subcontracts during a period (i.e., quarterly, semiannual, or annually). 

K.11 Previous Contracts and Compliance Reports (Far 52.222-22)

The
offeror represents that: 

	(a)
	It
(   ) has, (X) has not participated in a previous contract or subcontract subject either to the Equal Opportunity clause of this solicitation, the clause originally
contained in Section 310 of Executive Order No. 10925, or the clause contained in Section 201 of Executive Order No. 11114;

	(b)
	It
(   ) has, (X) has not, filed all required compliance reports; and,

	(c)
	Representations
indicating submission of required compliance reports, signed by proposed subcontractors, will be obtained before subcontract awards. 

K.12 Affirmative Action Compliance (Far 52.222-25)

The
offeror represents that (a) it (   ) has developed and has on file, (   ) has not developed and does not have on file, at each establishment, affirmative action
programs required by the rules and regulations of the Secretary of Labor (41 CFR 60-1 and 60-2); or it (X) has not previously had contracts/subcontracts subject to the written
affirmative action programs requirement of the rules and regulations of the Secretary of Labor. 

K.13 Certification Regarding Debarment, Suspension, Etc. (Far 52.209-5)

The
offeror certifies, to the best of its knowledge and belief, that: 

	(i)
	The
offeror and/or any of its principals—

	(A)
	(   )
Are, (X) are not presently debarred, suspended, proposed for debarment or declared ineligible for the award of contracts by any federal agency;

	(B)
	(   )
Have, (X) have not, within a 3-year period preceding this offer, been convicted of or had a civil judgment rendered against them for commission of fraud
or a criminal offense in connection with obtaining, attempting to obtain, or performing a public (federal, state or local) contract or subcontract; violation of federal or state antitrust statues
relating to the submission of offers; or commission of embezzlement, theft, forgery, bribery, falsification or destruction of records, making false statement, or receiving stolen property; and,

	(C)
	(   )
Are, (X) are not presently indicted for, or otherwise criminally or civilly charged by a governmental entity with commission of any of the above offenses.

	(ii)
	The
offeror has (   ), (X) has not, within a 3-year period preceding this offer, had one or more federally-funded contracts/subcontracts terminated for
default. 

The
Offeror shall provide immediate written notice to the Contractor if, at any time prior to award of this subcontract, the Offeror learns that its certification was erroneous when submitted or has
become erroneous by reason of changed circumstances. 

 
 

PART III- IN ADDITION TO PARTS I AND II, ARTICLES K.13 THROUGH K.24 ARE TO BE COMPLETED FOR ALL PROCUREMENTS $100,000 OR MORE.

K.14 Certificate of Independent Price Determination (Far 52.203-2)

	(a)
	The
offeror certifies that:

	(1)
	The
prices in this offer have been arrived at independently, without, for the purpose of restricting competition any consultation, communication, or agreement with any other offeror
or competitor relating to: (i) those prices, (ii) the intention to submit an offer, or (iii) the methods or factors used to calculate the prices offered;

	(2)
	The
prices in this offer have not been and will not be knowingly disclosed by the offeror, directly or indirectly, to any other offeror or competitor before bid opening (in the case
of a sealed bid solicitation) or subcontract award (in the case of a negotiated solicitation) unless otherwise required by law; and,

	(3)
	No
attempt has been made or will be made by the offeror to induce any other concern to submit or not to submit an offer for the purpose of restricting competition.

	(b)
	Each
signature on the offer is considered to be a certification by the signatory that the signatory:

	(1)
	Is
the person in the offeror's organization responsible for determining the prices being offered in this bid or proposal, and that the signatory has not participated and will not
participate in any action contrary to subparagraphs (a)(1) through (a)(3) above; or

	(2)
	(i) Has
been authorized, in writing, to act as agent for the following principals in certifying that those principals have not participated, and will not participate in any action
contrary to subparagraphs (a)(l) through (a)(3) above: (insert full name of person(s) in the 

offeror's
organization responsible for determining the prices offered in this bid or proposal, and the title of his or her position in the Offeror's organization 

	 
	 	(1) Name
 
	 	(1) Name
 

	 	 	DAVID L. JANNETTA
 PRESIDENT
	 	                        
                        

	(ii)
	As
an authorized agent, does certify that the principals named in (b)(2)(i) above have not participated, and will not participate, in any action contrary to subparagraphs
(a)(l) through (a)(3) above; and,

	(iii)
	As
an agent, has not personally participated, and will not participate, in any action contrary to (a)(l) through (a)(3) above.

	(c)
	If
the offeror deletes or modifies (a)(2) above, the offeror must furnish with its offer a signed statement setting forth in detail the circumstances of the disclosure. 

K.15 Representation of Extent of Transportation By Sea (DFARs 252.247-7022)

	(a)
	The
offeror shall indicate by checking the appropriate blank below whether transportation of supplies by sea is anticipated under a resultant subcontract.

	(b)
	Representation
The offeror represents that it:

	(1)
	(   )
Does anticipate that supplies will be transported by sea in the performance of any contract or subcontract resulting from this solicitation.

	(2)
	(X)
Does not anticipate that supplies will be transported by sea in the performance of any contract or subcontract resulting from this solicitation. 

Any
subcontract resulting from this solicitation will include the Transportation of Supplies by Sea clause, DFARS 252.247-7023. 

	(c)
	If
the subcontractor has indicated above that it did not anticipate transporting any supplies by sea but, after award of the subcontract learns that supplies will be transported by
sea. The subcontractor:

	(1)
	Shall
notify the contractor of that fact; and,

	(2)
	Hereby
agrees to comply with all the terms and conditions of the Transportation of Supplies by Sea clause, DFARS 252.247-7023.

	(a)
	The
subcontractor shall include this clause, including this paragraph (e), revised as necessary to reflect the relationship of the contracting parties, in all subcontracts
hereunder. 

K.16 Drug-Free Workplace (Far 52.223-06)

	(a)
	Definitions.
As used in this clause— 

"Drug-free
workplace" means the site(s) for the performance of work done in by the subcontractor in connection with a specific subcontract at which employees of the subcontractor are
prohibited from engaging in the unlawful manufacture, distribution, dispensing, possession, or use of a controlled substance. 

	(b)
	By
submission of its offer, the offeror, if other than an individual, who is making an offer that exceeds $100,000, certifies and agrees that it will, not later than 30 calendar days
after subcontract award:

	(1)
	Publish
a statement notifying all employees that the unlawful manufacture, distribution, dispensing, possession or use of a controlled substance is prohibited in the subcontractor's 

workplace
and specifying the actions that will be taken against employees for violations of such prohibition; 

	(2)
	Establish
an ongoing drug-free awareness program to inform employees about

	(i)
	The
dangers of drug abuse in the workplace;

	(ii)
	The
subcontractor's policy of maintaining a drugfree workplace;

	(iii)
	Any
available drug counseling, rehabilitation, and employee assistance programs; and

	(iv)
	The
penalties that may be imposed upon employees for drug abuse violations occurring in the workplace.

	(3)
	Provide
all employees with a copy of the statement required by (b)(1) above.

	(4)
	Notify
all employees, in writing, in the statement required by (b)(1) above, that as a condition of continued employment, the employee will—

	(i)
	Abide
by the terms of the statement; and

	(ii)
	Notify
the employer, in writing, of the employee's conviction under a criminal drug statue for a violation occurring in the workplace not later than five (5) calendar days
after such conviction.

	(5)
	Notify
the Contractor, in writing within ten (10) calendar days after receiving employee notice referred to above, from an employee or otherwise receiving actual notice of such
conviction. The notice shall include the position title of the employee;

	(6)
	Within
thirty (30) calendar days after receiving employee notice referred to above, take one of the following actions with respect to any employee who is convicted of a drug
abuse violation occurring the workplace;

	(i)
	Taking
appropriate personnel action against such employee, up to and including terminations; or

	(ii)
	Require
such employee to satisfactorily participate in a drug abuse assistance or rehabilitation program approved for such purposes.

	(7)
	Make
a good faith effort to maintain a drug-free workplace through implementation of (b)(1) through (b)(6) of this provision.

	(c)
	By
submission of its offer, if an individual, who is making an offer of any dollar value, certifies and agrees that the offeror will
not engage in the unlawful manufacture, distribution, dispensing, possession, or use of a controlled substance in the performance of the subcontract resulting from this solicitation.

	(d)
	Failure
of the offeror to provide the certification required by (b) or (c) of this provision renders the offeror unqualified and ineligible for award. (See FAR
9.104-l(g) and 19.6021 (a)(2)(i).) 

K.17 Clean Air and Water Certification (Far 52.223-1)

The
offeror certifies that: 

	(a)
	Any
facility to be used in the performance of this proposed subcontract is (   ), is not (X) listed on the Environmental Protection Agency List of Violating Facilities.

	(b)
	The
offeror will immediately notify the Contractor, before award, of the receipt of any communication from the Administrator, or a designee, of the EPA, indicating that any facility
that the offeror proposes to use for the performance of a subcontract is under consideration to be listed on the EPA List of Violating Facilities; and, 

	(c)
	The
offeror will include a certification substantially the same as this certification, including this paragraph (c), in every nonexempt subcontract. 

K.18 Certification of Toxic Chemical Release Reporting (52.223-13)

	(a)
	Submission
of this certification is a prerequisite for making or entering into this subcontract imposed by Executive order 12969, August 8, 1995.

	(b)
	By
signing this offer, the offeror certifies that

	(1)
	As
the owner or operator of facilities that will be used in the performance of this subcontract that are subject to the filing and reporting requirements described in
section 313 of the Emergency Planning and Community right-to-Know Act of 1986 (EPCRA) (42 U.S.C., 11023) and section 6067 of the Pollution Prevention Act of 1990
(PPA) (42 U. S.C. 13106), the offeror will file and continue to file for such facilities for the life of the subcontract the Toxic Chemical Release Inventory Form (Form R) as described in
section 313(a) and (g) of EPCRA and section of 65607 of PPA; or

	(2)
	None
if its owned or operated facilities to be used in the performance of this contract is subject to the Form R filing and reporting requirements because each such facility if
exempt for at least one of the following reasons: (Check each block that is applicable). 

	 	(X)	(i) The facility does not manufacture, process, or otherwise use any toxic chemicals listed under section 313(c) or EPCRA, 42 U.S.C. 11023(c);
	

 	

(X)	

(ii) The facility does not have 10 or more full-time employees as specified in section 313(b)(1)(A) or EPCRA, 42 U.S.C. 11023(b)(1)(A);
	

 	

(X)	

(iii) The facility does not meet the reporting thresholds of toxic chemicals established under section 313(f) of EPCRA, 42 U.S.C. l1023(f) (including the alternative thresholds at 40 CFR 372.27, provided an appropriate certification form
has been filed with EPA);
	

 	

(X)	

(iv) The facility does not fall within Standard Industrial Classification Code (SIC) designations 20 through 39 as set forth in Section 19.102 of the FAR; or
	

 	

(   )	

(v) The facility is not located within any State of the United States, the District of Columbia, the Commonwealth f Puerto Rico, Guam, American Samoa, the United Stated virgin Islands, the Northern Mariana Islands, or any other territory or
possession over which the United States has jurisdiction.

K.19 Disclosure of Ownership Or Control By A Foreign Government That Supports Terrorism (DFARS
252.209-7001)

	(A)
	Definitions
"Significant interest," as used herein, means:

	(1)
	Ownership
of or beneficial interest in five percent of more of the firm's or subsidiary's securities. Beneficial interest includes holding five percent or more of any class of the
firm's securities in "nominee shares," "street names." or some other method of holding securities that does not disclose the beneficial owner;

	(2)
	Holding
a management position in the firm, such as a director or officer;

	(3)
	Ability
to control or influence the election, appointment, or tenure of directories of officers in the firm:

	(4)
	Ownership
of ten percent or more of the assets of a firm such as equipment, buildings, real estate or other tangible assets of the firm; or,

	(5)
	Holding
50 percent or more of the indebtedness of a firm. 

	(B)
	Disclosure
The offeror shall disclose any significant interest the governments of Cuba, Iran, Iraq, Libya, North Korea or Syria has in the offeror or a subsidiary of the offeror. If
the offeror is a subsidiary, it shall also disclose any significant interest each above government has in any firm that owns or controls the subsidiary. If none, leave blank. 

	 	 	
	 	
	 	

	 	 	(Signature of offeror's officer/employee

responsible for this bid)	 	(Typed Name)	 	(Date)
	          	 	 	 	 	 	 
	 	 	
	 	
	 	

	 	 	(Signature of offeror's officer/employee

responsible for this bid)	 	(Typed Name)	 	(Date)

 
 

PART IV- IN ADDITION TO PARTS I, II, AND III, COMPLETE ARTICLE K.21 FOR ALL PROCUREMENTS OVER $500,000.    
    

K.20 Cost Accounting Standards Notices and Certification (Aug. 1992) (Far 52.230-1)

NOTE: This notice does not apply to small businesses or foreign governments. This notice is in three
parts, identified by Roman numerals I through III. 

Offerors
shall examine each part and provide the requested information in order to determine Cost Accounting Standards (CAS) requirements applicable to any resultant subcontract. 

If
the Offeror is an educational institution, Part II does not apply unless the contemplated subcontract will be subject to full or modified CAS coverage pursuant to 48 CFR
9903.201-2(c)(f) or 9903.201-2(c)(6), respectively. 

	I.
	DISCLOSURE STATEMENT COST ACCOUNTING PRACTICES AND CERTIFICATION

	(a)
	Any
subcontract in excess of $500,000 resulting from this solicitation, except subcontracts in which the price negotiated is based on (1) established catalog or market prices
of commercial items sold in substantial quantities to the general public, or (2) prices set by law or regulation, will be subject to the requirements of the CAS Board (48 CFR Chapter
99) except for those subcontracts which are exempt as specified in 48 CFR 9903.201-1., or

	(b)
	Any
offeror submitting a proposal which, if accepted, will result in a subcontract subject to the requirements of 48 CFR Chapter 99 must, as a condition of subcontracting, submit a
Disclosure Statement as required by 48 CFR 9903.2.2. When required, the Disclosure Statement must be submitted as a part of the offeror's proposal under this solicitation unless the offeror has
already submitted a Disclosure Statement disclosing the practices used in connection with the pricing of this proposal. If an applicable Disclosure Statement has already been submitted, the Offeror
may satisfy the requirement for submission by providing the information requested in paragraph (c) below. 

CAUTION: In the absence of specific regulations or agreement, a practice disclosed in a Disclosure Statement shall not, by virtue of such disclosure, be
deemed to be a proper, approved, or agreed-to practice for pricing proposals or accumulating and reporting contract performance cost data. 

	(c)
	Offeror
shall check the appropriate box below:

	(1)
	(   )
Certificate of Concurrent Submission of Disclosure Statement.

The
offeror hereby certifies that, as a part of its offer, copies of the Disclosure Statement have been submitted as follows: (i) original and one copy to the offeror's cognizant Administrative
Contracting Officer (ACO) or cognizant Federal agency official authorized 

to
act in that capacity (Federal official), as applicable, and (ii) one copy to the offeror's cognizant Federal auditor. 

(Disclosure
must be on Form No. CASB DS-1 or CASB DS-2, as applicable. Forms may be obtained from the cognizant ACO or Federal official and/or from the loose-leaf
version of the FAR.) 

	 	 	Date of Disclosure Statement:	

	          	 	 	 
	 	 	Name and Address of ACO where filed:	

	          	 	 	 
	 	 	Street Address:	

	          	 	 	 
	 	 	City, State, Zip Code:	

	          	 	 	 
	 	 	Name of ACO:	

The
offeror further certifies that practices used in estimating costs in pricing this proposal are consistent with the cost accounting practices disclosed in the Disclosure Statement. 

	(2)
	(   )
Certificate of Previously Submitted Disclosure Statement

	 	 	Date of Disclosure Statement:	

	          	 	 	 
	 	 	Name and Address of ACO where filed:	

	          	 	 	 
	 	 	Street Address:	

	          	 	 	 
	 	 	City, State, Zip Code:	

	          	 	 	 
	 	 	Name of ACO:	

The
offeror further certifies that the practices used in estimating costs in pricing this proposal are consistent with the cost accounting practices disclosed in the applicable Disclosure Statement 

	(3)
	(   )
Certificate of Monetary Exemption.

The
offeror hereby certifies that the Offeror, together with all divisions, subsidiaries, and affiliates under common control, did not receive net awards of negotiated prime contracts and subcontracts
subject to CAS totaling more than $25 million (of which at least one award exceeded $1 million) in the cost accounting period immediately preceding the period in which this proposal was
submitted. The offeror further certifies that if such status changes before an award resulting from this proposal, the offeror will advise the Contractor immediately. 

	(4)
	(   )
Certification of Interim Exemption.

The
offeror hereby certifies that (i) the offeror first exceeded the monetary exemption for disclosure, as defined in (3) above, in the cost accounting period immediately preceding the
period in which this offer was submitted; and, (ii) in accordance with 48 CFR 9903.202-1, the offeror is not yet required to submit a Disclosure Statement. The offeror further
certifies that if an award resulting from this proposal has not been made within 90 days after the end of that period, the offeror will immediately submit a revised certificate to the
Contractor, in the form specified under (c)(1) or (c)(2) above, as appropriate, to verify submission of a completed Disclosure Statement. 

CAUTION:  Offerors currently required to disclose because they were awarded a CAS covered prime contract or subcontract of
$25 million or more in the current cost accounting period, may not claim this exemption (4). Further, the exemption applies only in connection with proposals submitted before
expiration of the 90-day period following the cost accounting period in which the monetary exemption was exceeded. 

	II.
	COST ACCOUNTING STANDARDS ELIGIBILITY FOR MODIFIED CONTRACT COVERAGE

If
offeror is eligible to use the modified provisions of 48 CFR 9903.201-2(b) and elects to do so, the offeror shall indicate by checking the box below. Checking the box below shall mean
that the resultant subcontract is subject to the Disclosure and Consistency of Cost Accounting Practices clause in lieu of the Cost Accounting Standards clause. 

	 	(   )	The offeror hereby claims an exemption from the Cost Accounting Standards clause under the provisions of 48 CFR 9903-201.2(b) and certifies that the offeror is eligible for use of the Disclosure and Consistency of Cost
Accounting Practices clause because during the cost accounting period immediately preceding the period in which this proposal was submitted, the offeror received less than $25 million in awards of CAS-covered prime contract and subcontract, or
the offeror did not receive a single CAS-covered award exceeding $1 million. The offeror further certified that if such status changes before an award resulting from this proposal, the offeror will advise the Contractor immediately.

CAUTION:  An offeror may not claim the above eligibility for modified contract coverage if this proposal is expected to result in the award
of a CAS-covered contract of $25 million or more or if, during its current cost accounting period, the offeror has been awarded a single CAS-covered prime contract or
subcontract of $25 million or more. 

	III.
	ADDITIONAL COST ACCOUNTING STANDARDS APPLICABLE TO EXISTING CONTRACTS  

The
offeror shall indicate below whether award of the contemplated subcontract would, in accordance with subparagraph (a)(3) of the Cost Accounting Standards clause, require a change in offeror's
established cost accounting practices affecting existing contracts and subcontracts. 

(   )  YES        (   )    NO

Representations and Certifications Form  

Note:  

        SIGNAL will not award a Purchase Order/Subcontract prior to the return of this completed,  signed and dated Representations and Certifications Form. 

        Failure
to return this form properly executed with the firm's offer pursuant to a SIGNAL solicitation shall be grounds for rejection of your offer. 

           

        This
is to certify, to the best of my knowledge and belief, that the representations and certifications made herein by the offeror are accurate and current as of the date indicated
below. 

	Offeror's Name:	 	ARGUS NETWORKS, INC.
	

Address:	
 	

207 House Ave, Suite 104, Camp Hill, PA 17011
	

Name of Person

Authorized to Sign:	
 	

DAVID L. JANNETTA
	

Signature:	
 	

/s/ DAVID L. JANNETTA
	

Date:	
 	

4/27/99

QuickLinks

PART I—COMPLETE ARTICLES K.1 To K.9 FOR ALL PROCUREMENTS

PART II—IN ADDITION TO PART I, ARTICLES K.10 THROUGH AND K.12 ARE TO BE COMPLETED FOR ALL PROCUREMENTS $10,000 OR MORE

PART III- IN ADDITION TO PARTS I AND II, ARTICLES K.13 THROUGH K.24 ARE TO BE COMPLETED FOR ALL PROCUREMENTS $100,000 OR MORE.

PART IV- IN ADDITION TO PARTS I, II, AND III, COMPLETE ARTICLE K.21 FOR ALL PROCUREMENTS OVER $500,000.QuickLinks
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Exhibit 10.8  

 
  AMENDMENT OF SOLICITATION/MODIFICATION TO SUBCONTRACT    
    

	(1) Modification No.: 002	 	(2) Effective Date: 20 June 2002	 	(3) Page 1 of 2
	

(4) Issued By:	
 	

(5) o Amendment of Solicitation No.:
	SIGNAL Corporation	 	Dated:                        .	 	(See Block 8)
	3040 Williams Drive, Suite 200

Fairfax, VA 22031	 	ý Modification of Subcontract/Order No.:

99-108-Argus-ITOPII
	 	 	Dated: 1 June 2000	 	(See Block 10)
	

(6) Subcontractor/Offeror Name and Address:	
 	

(7) Prime Contract/RFP No.:	
 	
DTTS59-99-D00445
	Mobility Technologies, Inc.	 	 	 	DTOS59-96-D00421
	851 Duportail Road, Suite 220

Wayne, PA 19087	 	Customer Agency:	 	ITOPII/ITOP

(8) This Block Applies Only to Amendments of Solicitations:  

	o
	The
above numbered solicitation is amended as set forth in Block 11. The hour and date specified for Offerors

	o
	Is
extended    o Is not extended.

	o
	Acceptance
of this modification is indicated. 

(a) By
signing and returning    copies of this amendment; (b) by acknowledging receipt of this amendment on each copy of the offer submitted; or, (c) by separate
letter or telegram, which includes a reference to the solicitation and amendment numbers. Failure of your acknowledgment to be received at the Issuing office prior to the hour
and date specified may result in rejection of your offer. If, by virtue of this amendment, you desire to change an offer already submitted, such change may be made by telegram
or letter, provided such telegram makes reference to the solicitation and this amendment prior to the opening hour and date specified in the solicitation. 

(9) Accounting and Appropriation Data:  

(10) This Block Applies Only to Modifications to Subcontracts/Orders  

	ý
	This
Change Order is issued pursuant to mutual agreement. The changes set forth in Block 11 are made to the above numbered
Subcontract/Order.

	o
	The
above numbered Subcontract/Order is modified to reflect the administrative changes (such as changes in paying office, appropriation
data, etc.) set forth in Block 11.

	o
	This
Supplemental Agreement is entered into pursuant to authority of            . It modifies the above numbered Subcontract specified
in Block 5 as set forth in Block 11. 

(11) Description of Amendment/Modification:  

        Except as provided herein, all terms and conditions of document referenced in Block 5, as heretofore changed, remain unchanged and
in full force and effect.  

        SEE ATTACHED PAGE 2. 

	(12) o	 	Subcontractor/Offeror is not required to sign this document	 	ý	 	Subcontractor/Offeror is required to sign this document and return 2 copies to Prime Contractor

	

(13)	
 	

Name of Subcontractor/Offeror By:	
 	

(14)	
 	

By:
	

 	
 	

    
(signature of person authorized to sign)	
 	

 	
 	

    
(signature of person authorized to sign)
 

	
(15) Name & Title of Signer	
 	

(16) Date Signed	
 	

(17) Name & Title of Signer	
 	

(18) Date Signed
	

    
	
 	

    
	
 	

    
	
 	

    

Page 2 of 2

Modification 002 

	1.
	Change
Subcontractor's company name from Argus Networks, Inc. to read Mobility Technologies, Inc., address as shown in Block (6) of this modification.

	2.
	Add;
Article A-7, ITOP II Task Order No. T020013

All
terms and conditions reflected in Prime Contract No. DTTS59-99-D-00445, Task Order T020013, set forth in this modification, (see Exhibit F, entitled,
Task Order T020013), are be the responsibility of Mobility Technologies. Furthermore, as stated in this order, any liquidated damage costs, accessed by the Government will become the responsibility of
Mobility. 

	3.
	The
value of the milestones as reflected in Article 6.E. of the attached task order shall be reduced by five percent (5%) to cover SIGNAL'S administrative costs
as reflected on the below schedule; 

	Task 1—Negotiation & Execution of Local Partnership Agreement	 	$	95,000.00
	Task 2—Sensor Map Development & Mobilization	 	$	612,750.00
	Task 3—Network Planning	 	$	95,000.00
	Task 4—Software Development	 	$	142,500.00
	Task 5—System Design	 	$	114,000,00
	Task 6—System Development & Implementation	 	$	612,750.00
	Task 7—System Acceptance	 	$	47,500.00
	Task 8—Training	 	$	19,000.00
	Task 9—Systems Operations & Maintenance	 	$	123,500.00
	Task 10—Data Reports & Data Quality Template	 	$	38,000.00

	4.
	Invoices
for these services will be submitted to SIGNAL as each milestone is completed and accepted by the Government. Upon receipt of these invoices, SIGNAL will submit a
corresponding invoice to the Government. Payment of Mobility's invoices shall be in accordance with Article B-6 D of this agreement. 

        Except
as provided herein, all terms and conditions of the document referenced in Block 5, as heretofore changed, remain unchanged and in full force and effect. 

 
 

AMENDMENT OF SOLICITATION/MODIFICATION TO SUBCONTRACT    
    

EXHIBIT F

ITOP II Task Order T020013  

 

Task
Order T020013 to Contract DTTS59-99-D-00445 is hereby issued as follows 

1.     Section B, "Supplies or Services and Prices/Costs":  

	Item
 
	 	Supply or

Service
	 	Qty.
	 	Unit

Price
	 	Total Firm

Fixed Price

	0101AA	 	Intelligent Transportation Infrastructure Program (ITIP) Support	 	25 cities/ metropolitan areas	 	$	2,000,000	 	$	50,000,000

2.     Section C, "Description/Specifications/Statement of Work":  

Item 0101AA—The Contractor shall support the Intelligent Transportation Infrastructure Program (ITIP) in accordance with the attached
Statement of Work (Attachment J.1), and in accordance with the applicable executed local metropolitan area partnership agreement (reference SOW section 2.3). 

3.     Section D, "Packaging and Marking":  

        Packaging and marking for the effort called for hereunder shall be performed in accordance with the instructions of the basic contract. 

4.     Section E, "Inspection and Acceptance":  

        Inspection and Acceptance of the services called for hereunder shall be performed in accordance with the instructions of the basic contract. 

5.     Section F, "Deliveries or Performance":  

	A.
	The
Contractor shall comply with the terms and conditions as cited in the basic contract in paragraphs F.1, F.3(b), (c), and (d). In addition, the following apply: 

Item 0101AA—Reference the delivery schedule outlined under paragraph B below. The obligation of the Consortium Members to provide the
Government services under this task order will end ten (10) years from date of system acceptance in each metropolitan area, or January 1, 2012, whichever is the earlier of the two dates.
However, after this period, Mobility Technologies is expected to continue to provide services to public agencies and commercial clients on an ongoing basis. The continued services for public agencies
will be consistent with that provided under the task order and will be provided at no cost to the public agencies. 

2

 

	B.
	Deliverables:

	Deliverables
	 	Due Date

	Task 1—Negotiation & Execution of Local Partnership Agreement	 	Upon Execution of Agreement
	Task 2—Sensor Map Development & Mobilization	 	ATP + 30 days
	Task 3—Network Planning	 	ATP + 90 days
	Task 4—Software Development	 	ATP + 120 days
	Task 5—System Design	 	ATP +150 days
	Task 6—System Development & Implementation	 	ATP + 270 days
	Task 7—System Acceptance	 	ATP + 300 days
	Task 8—Training	 	ATP + 360 days
	Task 9—Systems Operations & Maintenance	 	ATP + 360 days
	Task 10—Data Reports and Data Quality Template (First data report to be provided not more than 4 weeks following the first full month after system acceptance.)	 	ATP + 480 days

6.     Section G, "Contract Administration Data":  

        The Contractor shall comply with the terms and conditions of the basic contract. In addition: 

(A)  Contracting Officer's Technical Representative (COTR):  

        The Task Order COTR for this Task Order is: 

Chung
Eng

US Department of Transportation

Federal Highway Administration Code HTV-3

400 7th Street, S.W., Room 3404

Washington, D.C. 20590 

(B)  Contracting Office:  

        The Contracting Office for this Task Order is: 

US
Department of Transportation

TASC, SVC-180

400 7th Street, S.W., Room 5106

Washington, D.C. 20590 

(C)  Billing Instructions:  

        An original and one (1) copy of the invoice shall be submitted to the following address: 

US
Department of Transportation

Federal Highway Administration, Code HFS-20

400 7th Street, S.W., Room 4306

Washington, D.C. 20590 

        Invoices
shall contain the information required by FAR 52.232-25, Prompt Payment, including the contract number, task order number, and applicable
contract line item numbers.

3

 

(D)  Appropriation Data  

        The funding for the individual basic CLINs cited under the Section B of this Task Order is as follows: 

	CLIN
 
	 	Appropriation Code
	 	Amount

	0101AA	 	 	 	$	 
	0101AA	 	 	 	$	 
	 	 	
	 	

	 	 	 	 	$	50,000,000

(E)  Performance Based Payments  

        The Contractor shall submit invoices based on the following schedule upon completion of the applicable milestone. Details of the milestone payments are included
in Attachment J.2. 

	Milestones
	 	Payment

	Task 1—Negotiation & Execution of Local Partnership Agreement	 	$	100,000
	Task 2—Sensor Map Development & Mobilization	 	$	645,000
	Task 3—Network Planning	 	$	100,000
	Task 4—Software Development	 	$	150,000
	Task 5—System Design	 	$	120,000
	Task 6—System Development & Implementation (include 4 sub milestones at 25% increments)	 	$	645,000
	Task 7—System Acceptance	 	$	50,000
	Task 8—Training	 	$	20,000
	Task 9—Systems Operations & Maintenance	 	$	130,000
	Task 10—Data Reports and Data Quality Template	 	$	40,000

7.     Section H, "Special Contract Requirements":  

        The Contractor shall comply with the terms and conditions of the Basic contract. In addition: 

	(A)
	Under
H.14, KEY PERSONNEL, paragraph (b), the following personnel are determined to be key personnel within the meaning of the provision: 

	NAME
 
	 	POSITION

	Barry Kane	 	ITOP Program Manager
	Joe Reed	 	Technical Leader
	Terri Johnson, P.E	 	Technical Systems Expert
	David L. Jannetta	 	Business Operations Manager

	(B)
	In
accordance with H.25, SUBCONTRACTORS, the Contractor has identified the following as critical subcontractors for this Task Order. The requirement for advance notification and/or
consent with these subcontractors (if applicable) in the amounts proposed for this task order has been satisfied pursuant to FAR 52.244-2. 

	COMPANY NAME
 
	 	ADDRESS
	 	TYPE OF EFFORT

	Mobility Technologies, Inc.	 	851 Duportail Road

Suite 220

Wayne, PA 19087	 	2.2 Network Support

4

 

(C)  MARKETING PROGRAM  

        The contractor shall market ITS Integrated Surveillance and Data Management Infrastructure Services with approval from the COTR. In accordance with the marketing
strategy, the contractor will have the ability to market ITIP Services to private sector organizations. The contractor may be required to develop marketing strategies and action plans which involve
identifying contacts, tasks, and potential users of traveler and roadway performance information/data. It may involve frequent contact with users, development of user profiles and reports on progress
of the marketing strategy. It is to the contractor's advantage to prospect new business opportunities. 

(D)  REVENUE SHARING  

        In the event that the Contractor performs marketing activities or receives revenues from the sale/marketing of information obtained under this task order to other
private sector organizations, the Government shall not be liable for any additional costs (i.e., in excess of the amounts provided under this task order) resulting from this marketing effort (e.g.,
marketing costs, advertising, operations, distribution, liability costs, etc). The Government and the Contractor agree that such revenues will be shared by the Contractor with U.S. DOT and the
affected state or local agencies in accordance with the following formula/arrangement per metropolitan area: 

	•
	0%
for gross revenue up to $250,000

	•
	5%
for gross revenue between $250,000 and $1M

	•
	10%
for gross revenue above $1M 

(E)  INSURANCE AND BONDING REQUIREMENTS  

        The Contractor shall comply with all applicable insurance and bonding requirements of each locality (i.e., city, town, county, or state) where the Contractor will
be performing work under this task order. The Contractor shall be financially responsible for the costs of compliance with these requirements. 

(F)   LIQUIDATED DAMAGES  

        If the contract is terminated for cause in any deployment area within the first 10 years after system acceptance in that deployment area and before
January 1, 2012, as described further below, Mobility Technologies shall, in place of actual damages, pay/provide to the Government liquidated damages as follows for each metropolitan area
found to be in default: 

	•
	All
system hardware and software, as well as any components resulting from system upgrades, shall be made available to the local public agency partner(s) at fair market
value. The local partner(s) will have the first right of refusal for any ITIP-project related hardware, software license, or component.

	•
	All
databases developed with public agency funds for the ITIP project and any ITIP project software developed with public agency funds shall be made available to the local
public agency partner(s) for their own internal use on a non-exclusive basis at no cost.

	•
	Make
payment to the Government in accordance with the following. Furthermore, it is understood that no liquidated damages will be assessed beyond 1 January 2012.

	•
	Defaults
within year 1—pay $960,000

	•
	Defaults
within year 2—pay $864,000

	•
	Defaults
within year 3—pay $768,000 

5

 

	•
	Defaults
within year 4—pay $560,000

	•
	Defaults
within year 5—pay $480,000

	•
	Defaults
within year 6—pay $400,000

	•
	Defaults
within year 7—pay $320,000

	•
	Defaults
within year 8—pay $240,000

	•
	Defaults
within year 9—pay $160,000

	•
	Defaults
within year 10—pay $80,000 

SIGNAL's Responsibilities—(1) For the terms and conditions on the initial task order, SIGNAL will be held responsible to
ensure that Mobility Technologies deploys the required Intelligent Transportation Infrastructure Systems (ITIS) to all areas authorized by the Government under this order. (2) In the event of
default of the terms of SIGNAL's subcontract with Mobility by Mobility or bankruptcy or receivership by Mobility, SIGNAL's responsibility shall be limited to the
good-faith identification of a replacement subcontractor acceptable to the Government. Should the approved replacement subcontractor's proposed cost be more or less than the costs
contained in SIGNAL's subcontract with Mobility, SIGNAL and the Government agree to renegotiate these costs accordingly. SIGNAL shall not be held liable for reprocurement costs or any
other damages. (3) In connection with the application of liquidated damages, SIGNAL's responsibility for payment to the Government is limited to the amount SIGNAL actually
recovers from Mobility. SIGNAL will, in turn, submit all liquidated damages recovered from Mobility Technologies to the Government. 

Mobility Technologies Responsibilities—(1) Upon deployment of the ITIS, Mobility Technologies will be held responsible for any liquidated
damage costs as reflected in Paragraph F at no additional cost to the Government. 

(G)  SECTION 508 STANDARDS  

        The Rehabilitation Act of 1973, as amended, insures that Federal employees with disabilities will be able to use information technology to do their jobs and that
members of the public who are seeking information from Federal sources will be able to use information technology to access the information on equal footing with people who do not have disabilities.
Information on the Section 508 standards can
be viewed at www.section508.gov. Work performed under Item 0101AA under this task order will be subject to compliance with the standards in effect as of the date of this task order. 

(H)  AVAILABILITY OF ADDITIONAL FUNDS  

        Any excess funds from areas opting not to participate will be made available for expanding the scope of work in participating metropolitan areas through a
selection process to be determined. Additional funds from the excess may be provided for expanded data services in any metropolitan area that is the beneficiary of funding under this program, as
provided in section 5117(b)(3)(C)(ii) of TEA-21 (P.L. 105-178, as amended by P.L. 107-117). After the Government has deducted any funds necessary for
administrative costs of the program, the remainder of the funds will be provided for the area or areas that demonstrate the greatest opportunity to expand performance monitoring and commercial use of
the data. Any additional funds awarded must be used strictly for the expansion/enhancement of services and not to pay for services provided by the initial $2 million deployment. 

6

   (I)   AUTHORIZATION TO PROCEED  

        The Government shall issue a limited authority to proceed for the contractor to enter discussions with a local metropolitan area with the purpose of negotiating
and executing a local partnership agreement. This limited authority to proceed is conditioned upon a commitment letter from the local metropolitan area. Should the local metropolitan area decide not
to participate for any reason, the Government's liability for negotiation and related efforts per area shall not exceed the lesser of the contractor's actual costs incurred in performing these efforts
or 1) $50,000 for each metropolitan area declining to participate in its calculation year (reference Attachment 3, e.g., Orlando in CY02, Miami in CY03, or St. Louis in CY04); 2) $25,000
for each metropolitan area declining to participate while in current year plus one status (e.g., San Francisco declining to participate during CY02 or St. Louis declining to participate during CY03);
or 3) $10,000 for each metropolitan area declining to participate while in current year plus two status (e.g., St. Louis or Las Vegas declining to participate during CY02). For the metropolitan
areas where negotiations are successful in reaching and executing a local agreement, the cost considerations for negotiations are already included in the $2M being provided for each metropolitan area,
and no additional funds beyond the $2M will be provided for the purposes of negotiations. 

        The
Government shall separately issue a notification granting full authority to proceed with the task order requirements for each metropolitan area. Issuance of full authority is
conditioned upon execution of a local partnership agreement (reference SOW section 2.3), which shall include a satisfactory local implementation strategy. 

        Issuance
of both limited and full authority shall be done by an electronic mail message from the Contracting Officer to the contractor. The Government is not liable for any costs
incurred by the contractor in performance absent the authorizations called for herein. Costs that are incurred after limited authority is granted that are otherwise eligible are eligible for payment
according to the Milestone Payments (Attachment 2), if and after full authority is given. 

8.     Section I, "Contract Clauses":  

        The Contractor shall comply with the applicable terms and conditions of the basic contract. In addition, the following applies: 

	A)
	The
below listed clauses are hereby made applicable to this task order:

	•
	FAR
52.227-14 Rights in Data—General (JUN 1987) and Alternates II and III

	•
	FAR
52.227-15 Representation of Limited Rights Data and Restricted Computer Software, (JUN 1987)

	•
	FAR
52.227-16 Additional Data Requirements (JUN 1987)

	B)
	FAR
52.217-6 Option for Increased Quantity (Mar 1989) 

The
Government may increase the quantity of units called for in the Schedule at the unit price specified. The Contracting Officer may exercise the option by written notice to the Contractor within
three years from the date of this order. Delivery of the added items shall be in accordance with the schedule called for under the task order. 

9.     "Section J, "List of Attachments":  

	A.
	Attachment
1—Statement of Work Intelligent Transportation System Integrated Surveillance and Data Management Infrastructure Services
(TEA-21 - 5117(b)(3))

	B.
	Attachment
2—Milestone Payment Details 

7

 

	C.
	Attachment
3—ITIP Expansion Schedule.

 

	10.
	Within sixty (60) days from the executed date of this task order, Mobility Technologies will submit any updates to its
previously submitted business/financial plan based on the terms of this task order. The Government will treat this information as proprietary and confidential information and protect it from
disclosure. Full authority to proceed will not be provided in any area prior to receipt of the updates.

	11.
	The terms and conditions of Contract DTTS59-99-D-00445 are applicable to this task order and are
incorporated herein. 

8

 
Statement of Work

Intelligent Transportation Infrastructure Program (ITIP)

TEA-21: 5117(b)(3)  

1.0   Introduction  

        The U.S. DOT is interested in developing an ability to measure the operating performance of the roadway system at a national level. The U.S. DOT is also
interested in State and local transportation
agencies having access to roadway system performance data to assist in their planning, evaluation, and management activities. The ITIP provides Federal funding for the integration of intelligent
transportation infrastructure in major metropolitan areas with a population exceeding 300,000. The U.S. DOT's perspective is that the ITIP will enhance existing surveillance infrastructure through
integration, along with strategic deployment of supplemental surveillance infrastructure. In some areas, the infrastructure deployed as part of this program may be the area's primary traveler
information system. 

        In
addition, the U.S. DOT is interested in facilitating public/private partnerships and the commercialization of traveler information data to create the opportunity for
self-sustained systems that attract private capital. To be useful for the purposes described, roadway system performance data must be measured continuously, and be available in both
real-time and archived formats. There is consensus within the transportation community that travel time and travel time reliability are among the best measures for these purposes. These
and other desired measures are described in further detail within this statement of work. 

        The
path to achieving these objectives presents an opportunity to serve public agency needs in true public/private partnerships. It is recognized that the same data that is useful to the
public transportation agencies also has value for commercial traveler information applications. Thus, the potential exists for a public/private partnership that would collect system performance data
to serve national and local public agency needs and, at the same time, use the same data for commercial traveler information purposes. 

        Such
a partnership was envisioned in section 5117(b)(3) of the Transportation Equity Act for the 21st Century (TEA-21), Pub. L. 105-178, as
amended by title IX of Pub. L. 105-206, which requires the provision of private technology commercialization initiatives as part of a program to "advance the deployment of an operational
intelligent transportation infrastructure system for the measurement of various transportation system activities to aid in the transportation planning and analysis while making a significant
contribution to the ITS program." To that end, the U.S. DOT has retained a private sector Consortium led by the Signal Corporation and Mobility Technologies (formerly Traffic.com) to enhance the
collection and archiving of performance monitoring data that will ultimately be used to measure national system performance while also using this data for commercial traveler information purposes. 

        To
date, the U.S. DOT and the Consortium have tested this public/private partnership in two metropolitan areas: Pittsburgh, PA and Philadelphia, PA. Briefly, the deployments in the two
initial metropolitan areas feature the following: 

	1.
	Over
one hundred (100) sensors deployed in each metropolitan area along freeways and other major arterials capable of providing data on volume, speed, lane occupation, and
limited vehicle classification;

	2.
	Archived
database function;

	3.
	Free
web-based access to basic real-time as well as archived data for public agency stakeholders;

	4.
	Free
web-based traffic condition information to the general public for personal use;

	5.
	Additional
value-added commercial services on a fee basis; 

9

 

	6.
	Firm,
fixed price contract where the private partner owns, operates, and maintains the system;

	7.
	Integration
of at least one legacy system;

	8.
	Private
funding contribution toward infrastructure; and

	9.
	Sharing
of gross revenues derived from the project to support system enhancements. 

        The
FY 2002 Defense Appropriations Act that was signed into law (P.L. 107-117) on January 10, 2002 included additional provisions for expansion of ITIP. This included
identification of the specific metropolitan areas that are eligible to participate in ITIP as follows: 

Baltimore, Birmingham, Boston, Chicago, Cleveland, Dallas/Ft. Worth, Denver, Detroit, Houston, Indianapolis, Las Vegas, Los Angeles, Miami, New York/Northern New Jersey,
Northern
Kentucky/Cincinnati, Oklahoma City, Orlando, Philadelphia, Phoenix, Pittsburgh, Portland, Providence, Salt Lake, San Diego, San Francisco, St. Louis, Seattle, Tampa, and Washington,
D.C.

2.0   Statement of Needs  

        The goal of this effort is to accommodate the expansion of ITIP into all eligible areas that choose to participate. Lessons from the initial deployments as well
as additional elements of national interest are incorporated in this statement of work. This includes an increased emphasis on integrating existing data, and added requirements for calculating
reliability performance measures using the data to be collected, and the provision of monthly data and calculated performance measure reports to the U.S. DOT. This data and reports may be provided
over the Internet. The U.S. DOT's focus in these expansion metropolitan areas is to enhance existing surveillance infrastructure through integration, along with strategic deployment of supplemental
surveillance infrastructure. In some areas, the infrastructure deployed as part of this program may be the area's primary traveler information system. The enhanced surveillance infrastructure and
performance data generated will be used to: 1) aid the public sector partner in carrying out system management activities including operations, planning, analysis, and maintenance;
2) support the provision of free basic traveler information to the public for personal use; 3) provide opportunities for commercialization of other Advanced Traveler Information Services
(ATIS); and 4) support provision of data and system performance measure reports to the U.S. DOT on a monthly basis. 

2.1   Objectives  

        This effort addresses the program provided for under section 5117(b)(3) of the TEA-21. The U.S. DOT is providing funding to: 

        Accelerate
the integration and enhancement of intelligent transportation infrastructure in major metropolitan areas to enable and help manage the continuous monitoring of the roadway
system for purposes of providing realtime as well as archived data to aid in the operation, planning, analysis, and maintenance activities of the U.S. DOT and State and local agencies; 

        Enhance
the quality, availability, and accessibility of transportation system performance data to enable the calculation of mobility performance and system reliability measures while
satisfying system operational needs at the same time; 

        Provide
to the U.S. DOT performance data and reports outlined in section 2.3 below; 

        Provide
a traveler information service that includes free public access to basic traveler information, and supports provision of a 511 based telephone service; and 

        Realize
and publicize the benefits of regionally integrated and interoperable intelligent transportation infrastructure capable of supporting regional as well as national needs,
including homeland security. 

10

 

        As
stated in section 5117(b)(3) of TEA-21, additional program objectives include: 

        Providing
private technology commercialization initiatives to generate revenues which will be shared with the U.S. DOT and the public partners; 

        Collecting
data primarily through wireless transmission along with some shared wide area networks; 

        Aggregating
data into reports for multipoint data distribution techniques; and 

        Utilizing
an advanced information system designed and monitored by an entity with experience with the U.S. DOT in the design and monitoring of high reliability, mission critical voice
and data systems. 

2.2   Funding  

        The U.S. DOT will provide $2 million in Federal funds for each eligible metropolitan area that chooses to participate in this expansion of the ITIP. Any
excess funds from areas opting not to participate will be made available for expanding the scope of work in participating metropolitan areas through a selection process to be determined. Additional
funds from the excess may be provided for expanded data services in any metropolitan area that is the beneficiary of funding under this program, as provided in
section 5117(b)(3)(C)(ii) of TEA-21 (P.L. 105-178, as amended by P.L. 107-117). After the Secretary has deducted any funds necessary for
administrative costs of the program, the remainder of the funds will be provided for the area or areas that demonstrate the greatest opportunity to expand performance monitoring and commercial use of
the data. Any additional funds awarded must be used strictly for the expansion/enhancement of services and not to pay for services provided by the initial $2 million deployment. It is
anticipated that the participating metropolitan areas will be phased in over the next three years in groups of five at six-month intervals. The deployment groups will be determined based
on local readiness and preference. Public agency partners and the Consortium are encouraged to establish and maintain schedules whereby the proposed deployment will be fully operational within one
year from the date of granting of full authority to proceed. 

        The
Federal view of this effort is that it is a data services contract that provides a guaranteed delivery of information in each location for a period of ten years, but which comes with
lifetime access rights to the data generated without further cost. The Federal funding provided is payment for the management and provision of data, for the ten-year life of the task order
and beyond, as specified in section 2.3 below. No Federal funding provided may be used for the purchase of any equipment. Payments will be linked to expenditures related to the project
milestones as outlined in Section G of the task order. 

        There
is an 80/20 Federal/non-Federal match requirement for all Federal funds provided ($500,000 non-Federal match required
for the initial $2M in Federal funds). The non-Federally derived funding may come from State, local government, or private sector partners. Note that funding
identified to support continued operations, maintenance, and management of the system beyond the terms of the contract will not be considered as part of this 20% requirement. 

        Mobility
Technologies will maintain documentation to separate public agency funds and private funds. All funds expended (Federal and non-Federal) under this contract shall be
reported to the Government on a quarterly basis. The financial information shall be broken down in detail to include all contract revenue and costs, including direct and indirect costs, expended on a
quarterly basis. The breakout of revenue and costs shall include a summary of total revenue generated and costs incurred to date under this contract. Federal, other public agency, and private costs
shall be differentiated. Should it be determined at any time by the Government that Mobility Technologies' documentation is insufficient, mutually agreed to remedies shall be
implemented within 30 days after such remedies are proposed.

11

 

        In
addition, after contract award, Mobility Technologies shall provide the following information for each year that the contract is in effect: 

	•
	Cash
flow statements presenting changes in company cash flows which occurred within the first six months of the company's fiscal year ended December 31 should be
provided by August 31, and cash flow statements for the complete fiscal year by February 28;

	•
	By
February 28th, provide projected company cash flow statements for the six month period ending the following June 30 and by August 31, provide cash
flow statements for the following six month period ending December 31;

	•
	An
income statement for the company fiscal year to date through June 30 should be provided by August 31 and an income statement for the company fiscal year
through December 31 should be provided by February 28;

	•
	A
company balance sheet as of the end of June 30 should be provided by August 31, and a balance sheet as of December 31 should be provided by
February 28. 

        Mobility
Technologies shall also provide the Government by April 30 of each year the contract is in effect, financial statements audited by an independent accounting firm. The
audit shall be performed in accordance with Generally Accepted Auditing Standards (GAAS) and include the expression of an audit opinion on the financial statements. Mobility Technologies will sign a
release allowing the Government to request access to the working papers developed by the independent auditor as deemed necessary by the Government. The Government agrees to keep this information
confidential and protect it from disclosure to any third parties. 

2.3   Requirements  

Federal funding for the ITIP may be used to support:  

        Creation
of a process and mechanism to collect, integrate, archive, manage, distribute and report new and existing transportation and related weather and security data for mobility and
performance monitoring, planning, evaluation, and other similar purposes; 

        Creation
of a data repository of new and existing real-time traveler and related information for dissemination to the traveling public through a variety of delivery
mechanisms, including support for a 511 based telephone service, provision of free basic traveler information to the public for personal use, and commercial traveler information services; 

        Creation
of a regional transportation information and communications system that integrates and supplements existing surveillance infrastructure, including traffic, traffic related
video, weather and
homeland security data, to support public sector transportation management needs and private sector commercialization; and 

        Accommodation/integration
of existing transportation data collection, archiving, and dissemination mechanisms. 

        No
Federal funding provided may be used for the purchase of any equipment. 

        The
provision of free basic traveler information to the public for personal use shall include, as a minimum, the provision of a web-site that is accessible to the general
public over the Internet. Basic traveler information is defined as: 

Construction/Maintenance
Information

Road Closures/Major Delays

Major Special Events

Weather (where available) and Road Conditions

Incidents/Crashes

High Level (red, yellow, green coding) Congestion Information 

12

  

        Support for a 511 based telephone service shall include the provision of basic traveler information to the providers of the 511 based telephone service. The basic traveler information
may be used by a public agency, or its agent, to support the provision of free basic traveler information to the general public via a 511 based telephone service. In areas where the 511 based
telephone service is operated as a commercial service, a licensing fee may be required to use information provided by the Consortium, The Consortium may recover any additional operating expenses it
incurs to support the 511 based telephone service. 

        Data
aggregated by the system and made available to the U.S.DOT may be used by the U.S.DOT for its own public purposes. The U.S.DOT may share aggregated data with third parties that are
engaged specifically for the purpose of fulfilling non-commercial public agency functions. The U.S.DOT agrees not to provide directly or indirectly aggregated data to third party
commercial interests. 

        The
U.S. DOT and the Comptroller General of the United States have the right to access all documents pertaining to the use of Federal ITS funds and non-Federal contributions
for this contract. Non-Federal partners must maintain sufficient documentation to substantiate these costs. Such items as direct labor, fringe benefits, material costs, consultant costs,
public involvement costs, subcontractor costs, and travel costs should be included in that documentation. 

 Implementation Strategy and Local Agreement  

        The Consortium must negotiate and establish a separate partnership agreement with each participating metropolitan area. A limited authorization to proceed will be
provided to accommodate the initial negotiations in areas that have indicated an interest in the program. As part of the initial negotiation effort, the Consortium must work with each participating
metropolitan area to help develop a local implementation strategy. This implementation strategy must outline the proposed partnership, technical, management and staffing, and financial approaches to
satisfy the objectives and requirements of the ITIP. The implementation strategy is subject to review by the U.S. DOT prior to granting a full notice to proceed in any metropolitan area. In addition,
full notice to proceed in any metropolitan area will not be granted until the local agreement for that metropolitan area has been successfully negotiated and executed. The implementation strategy
shall address the following: 

	•
	Proposed
working relationship, cooperation, and information-sharing among participating public agencies and the Consortim;

	•
	How
the proposed deployment will operate when fully implemented, including coexistence with existing infrastructure/systems, data sharing and use, quality assurance, and
delineation of roles and responsibilities;

	•
	Consistency
with the Regional or National ITS Architecture and consideration of appropriate ITS standards;

	•
	Project
management and staffing, including delineation of responsibilities and communications; and

	•
	Financial
commitments for the partnership 

C.    Data and Performance Measures  

	1.
	Data Specifications

The
data elements to be collected shall be as identified in the table below and shall meet the acceptable attributes specified. However, data attributes exceeding acceptable is encouraged. 

15

 

 
 

Data Specifications for Mobility Monitoring    
    

	 
	 	Attributes:
	 	 

	Primary Data Element:
 
	 	Supplemental Data Elements:

	 	Preferred
	 	Acceptable

	Vehicle Travel Times (preferred)	 	-for individual vehicles

-for defined roadway links up to 1 mile in length

-coverage on freeways and arterial streets	 	-5 to 15-minute summary average

-for defined roadway links 1-3 miles in length

-coverage on freeways only	 	-date of measurement

-start time of travel time

-"anonymous" vehicle ID
	

Vehicle Spot Speeds (acceptable)	
 	

-1 to 5-minute averages by lane

-speeds obtained every 1/2-mile

-coverage on freeways and arterial streets	
 	

-1 to 5-minute averages by direction

-speeds obtained every 1-3 miles

-coverage on freeways only	
 	

-date of measurement

-start and end time for speed summary statistics

-detector location ID (milepost or other location reference)
	

Vehicle Volumes	
 	

-1 to 5-minute totals by lane

-volumes obtained every 1/2-mile

-coverage on freeways and arterial streets	
 	

-1 to 5-minute totals by direction

-volumes obtained every 1-3 miles

-coverage on freeways only	
 	

-date of measurement

-start and end time for volume summary statistics

-detector location ID (milepost or other location reference)
	

Roadway Link and "Corridor" Identification	
 	

-definition of roadway links up to 1 mile in length	
 	

-definition of roadway links of 1-3 miles in length	
 	

-corresponding detector ID

-milepost or location reference

-roadway name and direction

-sequence of link along a corridor

-link length

-number of lanes
	

Vehicle Classification (on a corridor basis)	
 	

-the 13 vehicle classes defined in the Traffic Monitoring Guide (http://www.fhwa. dot.gov/ohim/tmguide/index.htm)	
 	

-passenger vehicles (cars and light pick-ups)

-single unit trucks

-combination trucks (tractor-trailers)	
 	

-date of measurement

-start and end time for volume summary statistics

-detector location ID (milepost or other location reference)

	2.
	Data Integration

Traffic
data from major highways that are currently being collected electronically by a participating public agency and being used for real time ATIS and/or ATMS purposes will be integrated with
Consortium data, archived and used to calculate performance measures as described below. Traffic data from these and other highways that become available in the future will also be considered for
similar integration, archiving and use. The data to be used for performance measures are: volume, speed and occupancy at a granular level (minute-by-minute,
lane-by-lane). Vehicle classification data will also be integrated as part of this process. 

16

 

The
public agency will be responsible for assuring quality of its data. The Consortium will perform continuous screening of the integrated data for quality purposes. For non-ITIP generated
data, the Consortium shall flag data anomalies to the public agency and the U.S. DOT. Data will conform to the "acceptable" level presented in the Data Specifications table above. During the System
Requirements process, the Consortium and the public agency will review the data type and quality of agency data and determine the suitability for integrating and using for the purpose of
calculating performance measures. Should problems be found with the data quality or quantity, the problems will be described to the public agency and the U.S.DOT. Every effort will be made to
integrate agency data to the extent practical. 

	3.
	Performance Measures

Performance
measures to be calculated include the following: 

 
 

Measures of Transportation Performance    
    

	Annual Person Hours of Delay	 	= Daily Vehicle Hours of Delay × 250 Working Days per Year × 1.25 Person per Vehicle
	

Percent Congested Travel	
 	

= (VMT Traveled Under Congested Conditions)/(Total VMT for the Area)
	

Travel Rate Index	
 	

= (Travel Time Under Congested Conditions)/(Travel Time Under Uncongested Conditions)
	

Travel Time Buffer Index	
 	

= 95% Confidence Travel Rate (in minutes per mile) - Average Travel Rate (In minutes per mile) × 100%
	

 	
 	

Average Travel Rate (in minutes per mile)

	4.
	Data Formats and Granularity for ITIP Products

The
archived data to be provided to the U.S. DOT on a monthly basis shall be grouped into 3 levels as follows for each metropolitan area: 

Level
1. Base or foundation level data (5-minute level)

Level 2. Intermediate level data (15-minute level)

Level 3. Summary data (60-minute level) 

Data
for each metropolitan area shall be made downloadable via the Internet monthly, not more than four weeks following the end of the month. The required formats and granularity are defined below.
The U.S.DOT will have the right to request modifications to the specified format and granularity that are agreed to bilaterally once within two years of the first data submittal with no additional
costs. 

Format for All Levels  

The format used to exchange all levels of data should be delimited ASCII-text files. At a minimum, time and location references should be
provided for each data record (date can optionally be provided with each data record or the data set as a whole). The summary data level retains an option to use FHWA Card C or 3 formats (see this
section for more detail). 

Level 1. Base or Foundation Level Data  

Granularity—The granularity of base level data should be 5-minute by lane
(preferred) or 5-minute for all measured lanes in the same direction at a specified location (acceptable). If the 5-minute data has been aggregated up
from more detailed data (e.g., 1-minute data records), the percent of detailed records passing quality control and the percent of total 

17

 

possible
detailed records used in aggregation calculations should be included with each 5-minute record. 

Level 2. Intermediate level data  

Granularity—The granularity of intermediate level data should be 15-minute for all measured lanes in the
same direction at a specified location (preferred) or 15-minute by measured lane (acceptable). If the 15-minute data has been aggregated up from more
detailed data (e.g., 1-minute data records), the percent of detailed records passing quality control and the percent of total possible detailed records used in aggregation calculations
should be included with each 15-minute record. 

Level 3. Summary data sets  

Format—The FHWA Card C format (for vehicle classification) or Card 3 format (for traffic volumes) is the preferred data exchange format (see
the Traffic Monitoring Guide for more information). In addition delimited ASCII-text files are acceptable. A format similar in structure to
Card 3 can be utilized for reporting traffic speeds or travel times. 

Granularity—The granularity of summary level data should be 60-minute for all measured lanes in the same
direction at a specified location. If the 60-minute data has been aggregated up from more detailed data (e.g., 1-minute data records), the percent of
detailed records passing quality control and the percent of total possible detailed records used in aggregation calculations should be included with each 60-minute record. 

Archived
data will be stored by the Consortium in perpetuity and be made available upon demand. 

	5.
	Performance Measure Reports  

Performance
measure reports are to be provided to the U.S. DOT on a monthly and annual basis. The monthly reports shall be provided along with the monthly data. The monthly reports for each
metropolitan area will be based on monthly data and will be presented with similar content, and in a format, consistent with the "city summary reports" that are part of the "Monitoring Urban Roadways
in 2000" report prepared by the Texas Transportation Institute and Cambridge Systematics, Inc. An annual report summarizing each metropolitan area's annual data shall be delivered on compact
disk (CD-ROM) and made downloadable via the Internet annually, not more than two months following the end of each calendar year. The annual reports for each metropolitan area will be based
on annual data and will be presented with similar content, and in a format, consistent with the "city summary reports" that are part of the "Monitoring Urban Roadways in 2000" report prepared by the
Texas Transportation Institute and Cambridge Systematics, Inc.The U.S.DOT will have the right to request modifications to the specified format and
granularity that are agreed to bilaterally once within
two years of the first performance measure report submittal with no additional costs. These reports are for use by public agencies only and not for distribution for commercial uses. 

The
required granularity in space for performance measure reports is by major roadway section, such as
between major interchanges (e.g., freeway-to-freeway) or major activity centers. The operating conditions within this roadway section should be fairly similar and homogenous.
The length of roadway sections can vary based upon freeway network design and land use patterns. 

The
required granularity in time used to calculate for performance measure reports is by 5 minutes. The
5-minute values can be averaged across all non-holiday weekdays within the month or year, depending on whether it is a monthly or annual summary. Alternatively, the 

18

 

5-minute
values can be combined into peak hour or peak period statistics and reported for each individual weekday of the month/year. 

	6.
	Data Quality and Quality Assurance  

The
data for each area from the Consortium's sensors shall meet the "better" traffic sensor data quality levels for "Nature", "Accuracy", "Delay, and "Availability" as defined in the document "Closing
the Data Gap: Guidelines for Quality Advanced Traveler Information System (ATIS) Data, Version 1.0, September 2000". Local agency data that meets the "good" quality level as defined in the same
document shall be integrated unless it can be shown that doing so would not be appropriate and/or practical. 

The
Consortium will be responsible for assuring the quality of its own data, and will perform continuous screening of the integrated data for quality purposes. For non-ITIP generated data,
the Consortium shall flag data anomalies to the public agency and the U.S. DOT. The owners of the integrated data will be notified if their data falls below the "good" quality level. 

Quality
control procedures must address the identification of faulty data; include procedures to correct the cause once faulty data is detected; indicate the percentage of faulty data, and include
appropriate treatment of faulty or missing values. Documentation of faulty data detected and treatment given must be included in the monthly reports. During the 10-year period of the
contract, the
U.S.DOT reserves the right to perform, or cause to be performed, quarterly audits to verify the data quality in each metropolitan area using its own contractors at its expense. 

	7.
	Performance Assurances  

If
after notice and an opportunity of 30-days to cure, the data quality is found to be less than the minimum specified for two consecutive quarters in any single metropolitan area, this
will be grounds for considering the contract in default in that metropolitan area. 

If
the Consortium fails to provide the monthly data and/or performance measure reports required for three consecutive months in any metropolitan area, this will be grounds for considering the contract
in default in that metropolitan area. If the Consortium fails to provide the monthly data and/or performance measure reports on time (within 4 weeks following the end of each month) more than twelve
times for any single metropolitan area during the 10-year life of the contract, this will be grounds for considering the contract in default in that metropolitan area. 

If
the Consortium (Mobility Technologies) is sold during the life of the contract, all the terms of the contract shall convey with the sale. 

3.0   Additional Contractor Responsibilities  

3.1   Training  

The
Consortium shall provide an effective, creative, and committed training program for system partners, users, or others in need of training. These training activities have as their goal the
effective utilization of the implemented system. 

3.2   Right-of-Way Access  

The
Consortium is subject to all applicable local permitting requirements for access to local rights-of-way, subject to the provisions of section 5204(k) of
TEA-21 (23 U.S.C. 502 note; 112 Stat. 453-455). 

19

 

3.3   Privacy  

The
Consortium shall provide specific techniques, as appropriate, with respect to data acquisition and collection, and to storage and dissemination of information that may be confidential or private
to prevent unauthorized dissemination. 

20

QuickLinks

AMENDMENT OF SOLICITATION/MODIFICATION TO SUBCONTRACT

AMENDMENT OF SOLICITATION/MODIFICATION TO SUBCONTRACT

Data Specifications for Mobility Monitoring

Measures of Transportation Performance

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