Document:

AWARD/CONTRACT

	
1. This Contract Is A Rated Order Under DPAS (15 CFR  700)

	
Rating DOA4

	
Page      1

	
Of

	
36 Pages

	
2. Contract (Proc. lust. ldent.) No.

	
3. Effective Date

	
4. Requisition/Purchase Request/Project No.

	 	 	 
	
SPRDLl-12-C-0023

	
20110CT24

	
SEE SCHEDULE

	
5. Issued  By

	
  Code

	
SPRDLl

	
6. Administered By (If Other Than  Item 5)

	
Code

	  	
  S4402A

	  	  

	
DLA LAND – WARREN

	
DCMA DALLAS

	
ZGA

	
600 N PEARL STREET SUITE 163 0

	
ROBERT HARRISON  (586) 282-3200

	
DALLAS TX 75201-2843

	
WARREN", MI 48397-5000

	  
	
HTTP://CONTRACTING.TACOM ARMY. MIL

	  
	
WEAPON SYSTEM:  WPN SYS: JE

	  

	
e-mail address: ROBERT.HARRISON9@US ARMY.MIL

	
SCD  c

	
PAS

	
NONE

	
ADPPT

	
HQ0339

	
7. Name And Address Of Contractor (No., Street, City, County, State and Zip Code)

	
8. Delivery

	
OPTEX  SYSTEMS INC.

	
D FOB Origin

	
EJ Other (See Below)

	
142 0  PRESIDENTIAL  DR

	
9. Discount For Prompt Payment

	  
	
RICHARDSON,  TX 75081-2439

	
   

	 	 	 
	 	
10. Submit Invoices

	
Item

	
TYPE BUSINESS:  Other Small Business  Performing in  U.S.

	
(4 Copies Unless Otherwise Specified)

	
12

	
Code OBK64

	
Facility

	
Code

	
To The Address Shown In:

	
11. Ship To/Mark For

	
Code

	
 

	
12. Payment Will Be Made By

	
Code  1  HQ0339

	
SEE      SCHEDULE

	  	
DFAS-COLUMBUS CENTER

	  	  	
DFAS-CO WEST ENTITLEMENT  OPERATIONS

	  	  	
P.O. BOX  182381

	  	  	
COLUMBUS, OH  43218-2381

	 	 
	
13. Authority For Using  Other Than Full And Open  Competition:

	
14. Accounting And Appropriation Data

	
D 10 U.S.C. 2304(c)(  )

	
D 41 U.S.C. 253(c)(  )

	
SEE SECTION G

	 	 
	
15A. Item  No.

	
15B. Supplies/Services

	
15C.  Ouantitv

	
15D. Unit

	
15E.  Unit Price

	
15F. Amount

	
SEE SCHEDULE

	
CONTRACT  TYPE:

	
KIND OF CONTRACT:

	 	 
	 	
Firm-Fixed-Price

	
Supply Contracts = d p iced Orders

	 

15G. Total Amount  Of Contract              +               $1,152,272.20              

	
16 Table Of Contents

	
(X)

	
Sec.

	
Description

	
P3l!e(')

	
(X)

	
Sec.

	
Description

	

Paee(s)

	 	 	
Part I - The Schedule

	 	Part II - Contract Clauses
	
X

	
A

	
Solicitation/Contract Form

	
1

	
X

	I	
Contract Clauses

	
26

	
X

	
B

	
Supplies or Services and Prices/Costs

	
3

	
Part III- List Of Documents, Exhibits, And Other Attachments

	
X

	
C

	
Description/SpecsJWork Statement

	
6

	
X

	
J

	
List of Attachments

	
38

	
X

	
D

	
Packaging and Marking

	8	Part IV- Representations And Instructions
	
X

	E	
Inspection and Acceptance

	10	 	
K

	
Representations, Certifications, and

	 
	
X

	F	
Deliveries or Performance

	13	 	
 

	
Other Statements of Offerors

	 
	

X

	G	
Contract Administration Data

	20	 	

L

	

Instrs., Conds., and Notices  to Offerors

	 
	
X

	H	
Special  Contract Requirements

	21	 	
M

	
Evaluation Factors for Award

	 

Contracting Officer Will Complete Item 17 Or 18 As Applicable

	
17. Contractor's Negotiated Agreement          (Contractor is required to sign this document and return  2  signe<dopies  to issuing office.)  Contractor agrees to furnish and deliver all items  or perform all the services set forth or otherwise identified above  and on any continuation sheets  for  the consideration stated herein. The rights  and obligations of the parties to this contract shall  be subject to and governed by the following documents: (a) this award/contract, (b) the solicitation, if any, and (c) such  provisions, representations, certifications, and specifications, as are  attached or incorporated bv reference herein. (Attachments are listed  herein.)

	
18. D Award  (Contractor is not required to sign this document.) Your offer on Solicitation Number  ____________________  including the additions or changes made  by you which additions or changes are set forth in full above, is hereby accepted as to the items listed  above and on any continuation sheets.  This award consummates the contract which consists  of the following  documents: (a) the Government's solicitation and your  offer, and (b) this award/contract. No further contractual document is necessary.

	
19A. Name And Title Of Signer (Type Or  Print)

	
20A. Name Of Contracting Officer

 

MORRIS  BELLEVILLE

MORRIS.BELLEVILLE@US .ARMY. MIL (586)282-3139

	
19B. Name of Contractor

	
19c. Date Signed

	
20B. United  States Of America

	
20C. Date Signed

20110CT24

	
By

	 	
   

	 	
By

	
/SIGNED/

	
  

	 
	  	
(Signature of person authorized to sign)

	 	  	
(Signature of Contracting Officer)

	 

	
AUTHORIZED FOR LOCAL REPRODUCTION

	
Standard Form 26 (Rev. 4/2008)

	
Previous edition  is usable

	
Prescribed By GSA- FAR (48 CFR)53.214(a)

 

  

  

  

	
CONTINUATION SHEET

	
Reference No. of Document Being Continued

	
Page 2 of 36

	  	
PIIN/SIIN  SPRDLl-12-C-0023

	
MOD/AMD

	  
	
Name of Offeror or Contractor:   OPTEX SYSTEMS, INC.

SECTION A - SUPPLEMENTAL  INFORMATION

This solicitation contains a Restricted Technical Data Package (TDP). Please refer to Section C-1 52.210-4501  - DRAWINGS/SPECIFICATIONS for instructions on how to get access to restricted TDPs.

*** END OF NARRATIVE AOOOl

 

	  	
g                 LQli ——————————— ill ———————————   — 1 —

	  	  	  	  
	
A-1

	

52.204-4850

(TACOM)

	

ACCEPTANCE APPENDIX

	

APR/2011

(a)  Contract  Number SPRDLl-12-C-0023   is  awarded to OPTEX    Systems  Inc.

(b)  The contractor,  in its proposal, provided data for various solicitation clauses, and that data has been added in this contract.

(c) Any attachments not included within this document will be provided by DLA Land Warren directly to the administrative contracting officer (ACO) via e-mail, as required.  Technical data packages that are only available on CD-ROM will be mailed by DLA Land Warren to the ACO.  Within one week of this award, any office not able to obtain attachments  from TACOM's website (https://contracting.tacom.army.mil/) and still requiring a copy, can send an email request to the buyer listed on the front page of this contract.

(d)  The following Amendment(s)  to the solicitation  are incorporated into this contract: 0001

[End of Clause]

  

  

  

  

	
CONTINUATION SHEET

	
Reference No. of Document Being Continued

	
Page 3 of 36

	  	
PIIN/SIIN  SPRDLl-12-C-0023

	
MOD/AMD

	  
	
Name of Offeror or Contractor:   OPTEX SYSTEMS, INC.

	
ITEM NO

	 	
SUPPLIES/SERVICES

	
QUANTITY

	
UNIT

	 	
UNIT PRICE

	 	 	
AMOUNT

	 
	 	 	 	 	  	 	 	 	 	 	 
	 	 	
SECTION B - SUPPLIES OR SERVICES AND PRICES/COSTS

	 	  	 	 	 	 	 	 
	 	 	 	 	  	 	 	 	 	 	 
	 	 	 	 	  	 	 	 	 	 	 
	 	 	 	 	  	 	 	 	 	 	 
	0001	 	
NSN: 1240-01-476-2613

	 	  	 	 	 	 	 	 
	 	 	
FSCM: 19200

	 	  	 	 	 	 	 	 
	 	 	
PART NR: 9377820-2

	 	  	 	 	 	 	 	 
	 	 	
SECURITY CLASS: Unclassified

	 	  	 	 	 	 	 	 
	 	 	 	 	  	 	 	 	 	 	 
	
OOOlAA

	 	
PRODCUTION QUALITY

	82	
EA

	 	$	14,052,10000	 	 	$	1,152,272.20	 
	 	 	 	 	  	 	 	 	 	 	 	 	 
	 	 	
NOUN: HEAD ASSEMBLY,GUNNE

	 	  	 	 	 	 	 	 	 	 
	 	 	
PRON: M112A243Ml      PRON AMD: 06      ACRN:    AA

	 	  	 	 	 	 	 	 	 	 
	 	 	
AMS CD: SM2B1100000

	 	  	 	 	 	 	 	 	 	 
	 	 	 	 	  	 	 	 	 	 	 	 	 
	 	 	
THERE IS A REQUIREMENT FOR FIRST ARTICLE TESTING.

	 	  	 	 	 	 	 	 	 	 
	 	 	 	 	  	 	 	 	 	 	 	 	 
	 	 	
See Data Item SubCLIN OOOlAB: First Article Test Report.

	 	  	 	 	 	 	 	 	 	 
	 	 	 	 	  	 	 	 	 	 	 	 	 
	 	 	
(End of narrative BOOl)

	 	  	 	 	 	 	 	 	 	 
	 	 	 	 	  	 	 	 	 	 	 	 	 
	 	 	
     2ri      li2M      2      L      L      l

	 	  	 	 	 	 	 	 	 	 
	 	 	
TOP DRAWING NR: 9377820-2

	 	  	 	 	 	 	 	 	 	 
	 	 	
DATE: 30-MAR-2011

	 	  	 	 	 	 	 	 	 	 
	 	 	 	 	  	 	 	 	 	 	 	 	 
	 	 	
.£.§Qk.§2i!lli_@Q____ !1 .rl;i:gg

	 	  	 	 	 	 	 	 	 	 
	 	 	
PACKAGING/PACKING/SPECIFICATIONS:

	 	  	 	 	 	 	 	 	 	 
	 	 	
SEE PACKAGING REQUIREMENTS CLAUSE

	 	  	 	 	 	 	 	 	 	 
	 	 	
LEVEL PRESERVATION: Military

	 	  	 	 	 	 	 	 	 	 
	 	 	
LEVEL PACKING: B

	 	  	 	 	 	 	 	 	 	 
	 	 	 	 	  	 	 	 	 	 	 	 	 
	 	 	
Inspection and Acceptance

	 	  	 	 	 	 	 	 	 	 
	 	 	
INSPECTION: Origin ACCEPTANCE: Origin

	 	  	 	 	 	 	 	 	 	 
	 	 	 	 	  	 	 	 	 	 	 	 	 
	 	 	
Deliveries and performance

	 	  	 	 	 	 	 	 	 	 
	 	 	
DOC

	
SUPPL

	 	  	 	 	 	 	 	 	 	 
	 	 	
R.ille_.QJ:2 .!1I1.02RIT

	
EJ2;QR__ IQ_Q;Q MARK FOR     TP CD

	 	  	 	 	 	 	 	 	 	 
	 	 	
001   W52H091063H745

	
W562RP        J                                     2

	 	 	 	 	 	 	 	 	 	 
	 	 	
;Q.ille_fill1 Q;Q Q:rlMr'ITTL :QhY b.ET.f!R_bN_AR;Q

	 	  	 	 	 	 	 	 	 	 
	 	 	       001                  82                 0330	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	  	 	 	 	 	 	 	 	 
	 	 	
FOB POINT: Destination

	 	  	 	 	 	 	 	 	 	 
	 	 	 	 	 	  	 	 	 	 	 	 	 	 
	 	 	
SHIP TO:

	 	  	 	 	 	 	 	 	 	 
	 	 	
(W562RP)

	
SR WOLX ARMY GENERAL SUPPLY

	 	  	 	 	 	 	 	 	 	 
	 	 	 	
CENTRAL RECEIVING POINT

	 	  	 	 	 	 	 	 	 	 
	 	 	 	
7 FRANKFORD AVE

	 	  	 	 	 	 	 	 	 	 
	 	 	 	
ANNISTON,AL,36201-4199

	 	  	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 

 

  

  

  

 

	
CONTINUATION SHEET

	
Reference No. of Document Being Continued

	
Page 4 of 36

	  	
PIIN/SIIN  SPRDLl-12-C-0023

	
MOD/AMD

	  
	
Name of Offeror or Contractor:   OPTEX SYSTEMS, INC.

	
ITEM NO

	 	
SUPPLIES/SERVICES

	
QUANTITY

	
UNIT

	 	
UNIT PRICE

	 	
AMOUNT

	 	 	 	 	 	 	 	 	 
	
OOOlAB

	 	
DATA ITEM: FIRST ARTICLE TEST REPORT

	
1

	
EA

	 	
$ **NSP**

	 	

$ **NSP**

	 	 	 	 	 	 	 	 	 
	  	 	
1EA = 1 Each Test

	  	  	 	  	 	  
	  	 	
Report on Contractor

	  	  	 	  	 	  
	  	 	
Performed First

	  	  	 	  	 	  
	  	 	
Article Test (FAT)

	  	  	 	  	 	  
	 	 	 	 	 	 	 	 	 
	  	 	
NSP = Not Separately

	  	  	 	  	 	  
	  	 	
Priced.

	  	  	 	  	 	  
	 	 	 	 	 	 	 	 	 
	  	 	
 (End of narrative BOOl)

	  	  	 	  	 	  
	  	 	  	  	  	 	  	 	  
	  	 	
FIRST ARTICLE TEST REPORT, PURSUANT TO THE

	  	  	 	  	 	  
	  	 	
REQUIREMENTS OF THE CLAUSE ENTITLED "FIRST

	  	  	 	  	 	  
	  	 	
ARTICLE APPROVAL - CONTRACTOR TESTING.

	  	  	 	  	 	  
	  	 	
(SEE SECTION I OF THIS DOCUMENT.)

	  	  	 	  	 	  
	 	 	 	 	 	 	 	 	 
	  	 	
 (End of narrative COOl)

	  	  	 	  	 	  
	  	 	  	  	  	 	  	 	  
	  	 	
Packaging and Marking

	  	  	 	  	 	  
	 	 	 	 	 	 	 	 	 
	  	 	
Inspection and Acceptance

	  	  	 	  	 	  
	  	 	
INSPECTION: Origin ACCEPTANCE: Destination Goverrrment Approval/Disapproval Days: 30

	  	  	 	  	 	  
	  	 	  	  	  	 	  	 	  
	  	 	
Deliveries or Performance

	  	  	 	  	 	  
	  	 	
DOC

	 	
SUPPL

	 	 	
  

	  	  	 	  	 	  
	 	 	 	 	

SUPPL

	 	 	 	 	 	 	 	 	 
	 	 	REL CD	MILSTRIP	
ADDR

	SIGCD	MARK FOR	TPCD	 	 	 	 	 	 
	 	 	001	 	 	 	 	3	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	DEL REL CD 	 QUANTITY	DAYS AFTER AWARD	 	 	 	 	 	 
	 	 	001	1	0220	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	  	 	
FOB POINT: Destination

	  	  	 	  	 	  
	 	 	 	 	 	 	 	 	 
	  	 	
SHIP TO:

	  	  	 	  	 	  
	  	 	
(Y00006)

	
SEE FIRST ARTICLE TEST CLAUSE

	  	  	 	  	 	  
	 	 	 	
FOR DISTRIBUTION

	 	 	 	 	 	 
	  	 	
   

	  	  	 	  	 	  

 

  

  

  

	
CONTINUATION SHEET

	
Reference No. of Document Being Continued

	
Page 5 of 36

	  	
PIIN/SIIN  SPRDLl-12-C-0023

	
MOD/AMD

	  
	
Name of Offeror or Contractor:   OPTEX SYSTEMS, INC.

	
ITEM NO

	 	
SUPPLIES/SERVICES

	
QUANTITY

	
UNIT

	 	
UNIT PRICE

	 	
AMOUNT

	 	 	 	 	 	 	 	 	 
	
OOOlAC

	 	
DATA ITEM: CDRL - DD FORM M23 (EXHIBIT A)

	  	
EA

	 	

$ **NSP**

	 	

$ **NSP**

	 	 	 	 	 	 	 	 	 
	  	 	
Submit m Accordance with Exhibit A a a necessary:

	  	  	 	  	 	  
	 	 	 	 	 	 	 	 	 
	  	 	
AOOl - Engineering Change Proposal (ECP)

	  	  	 	  	 	  
	 	 	 	 	 	 	 	 	 
	  	 	
A002 - Request for Deviation (RFD)

	  	  	 	  	 	  
	 	 	 	 	 	 	 	 	 
	  	 	
A003 - Notice of Revision (NOR)

	  	  	 	  	 	  
	 	 	 	 	 	 	 	 	 
	  	 	
 (End of narrative EO 01)

	  	  	 	  	 	  
	 	 	 	 	 	 	 	 	 
	  	 	
Inspection and Acceptance

	  	  	 	  	 	  
	  	 	
INSPECTION: Destination

	
ACCEPTANCE: Destination

	  	  	 	  	 	  
	 	 	 	 	 	 	 	 	 

 

  

  

  

	
CONTINUATION SHEET

	
Reference No. of Document Being Continued

	
Page 6 of 36

	  	
PIIN/SIIN  SPRDLl-12-C-0023

	
MOD/AMD

	  
	
Name of Offeror or Contractor:   OPTEX SYSTEMS, INC.

 

SECTION C - DESCRIPTION/SPECIFICATIONS/WORK STATEMENT

 

	 	Regulatory Cite	                      Title	Date
	  	  	  	  
	

C-1

	

52.210-4501 

TACOM (RI)

	

DRAWINGS/SPECIFICATIONS

	

MAR/1988

 

In addition to the drawing(s) and/or specifications  listed below, other documents which are part of this procurement and which apply to Preservation/Packaging/Packing and Inspection and Acceptance are contained elsewhere.

Drawings and Specifications  in accordance with Technical Data Package/Technical Data Package Listing 9377820-2:19200, with revisions in effect as of 03/30/2011, are applicable to this procurement with the following exceptions:

DWG 9376993 - VENDORS 1, 4, 5 ARE THE ONLY VENDOROS QUALIFIED TO COAT,

INFRARED-EXTERIOR, PER DWG 9376977. REMOVE VENDORS 2, 3

	
VENDOR

	
- MERGED WITH JDSU CUSTOMS OPTICS

	  	  
	
VENDOR 4

	
NEW NAME & ADDRESS

	  	
EXOTIC ELECTRO-OPTICS

	  	
36570 BRIGGS ROAD

	  	
MURRIETO, CA 92563

DWG 5705438 SHT 1 - REMOVE IN TITLE BLOCK SHEET NO - FROM: 1 OF 5 TO: 1 OF 4

	
DOCUMENT:

	  	
DELETE:

	  	
REPLACE WITH:

	
12932490

	  	
MIL-M-81594

	  	
AS81531

	
9377819

	  	
MIL-C-46168

	  	
MIL-DTL-53039

	
9377153

	  	
QQ-A-200/3

	  	
AMS-QQ-A-200/3

	  	  	
QQ-A-200/8

	  	
AMS-QQ-A-200/8

	
10556186

	  	
QQ-A-225/6

	  	
AMS-QQ-A-225/6

	  	  	
QQ-A-225/8

	  	
AMS4116 or AMS4117

	
11727998

	  	
QQ-A-225/6

	  	
AMS-QQ-A-225/6

	  	  	
QQ-A-225/8

	  	
AMS4116 or AMS4117

	
9377153

	  	
QQ-A-225/6

	  	
AMS-QQ-A-225/6

	
9377151

	  	
QQ-A250/4

	  	
AMS-QQ-A-250/4

	  	  	
AMS-QQ-A-250Ill

	  	
ASTM B209

	
10556186

	  	
QQ-P-35

	  	
ASTM A967

	  	  	
SAE-AMS-QQ-A-225/8

	  	
AMS4116 OR AMS 4117

	
QS 9377819 cht  1

	  	
MIL-C-46168

	  	
MIL-DTL-53039

9377106, vendor part number of MULTISORB TECHNOLOGIES  INC. should be "02-01069CG01", not "02-011069CG01"

FOR RESTIRCTED TDPs:

Technical data packages  (TDPs) and any other related documents, if applicable,  for this solicitation are restricted and can be accessed electronically  Vla the Federal Business Opportunities website with valid contractor  login credentials.

To access the TDP, click directly on the link provided below to be directed to the TDP.  You may also copy and paste the link into your browser and hit the Enter key.

Once directed to the Federal Business Opportunities  Website:

	
1)

	
Log on the FBO

	
2)

	
Log in your MPIN number

	
3)

	
If solicitation lS explicit, select "Request Explicit Access"

	
4)

	
If solicitation is Export Control, select "Verify MPIN"

	
5)

	
This will generate an email to the FBO System Administrator

	
6)

	
Please allow 2-3 working days to complete the FBO-TDP process from the FBO system

	
7)

	
The FBO Administrator will glve you access and you will receive a system generated email from FBO stating you now have permission for Vlewlng or downloading the TDP items.

TDP Link (URL):

https://www.fbo.gov/notices/243b7be58d99dab2b692a75177e0blf7

  

  

  

	
CONTINUATION SHEET

	
Reference No. of Document Being Continued

	
Page 7 of 36

	  	
PIIN/SIIN  SPRDLl-12-C-0023

	
MOD/AMD

	  
	
Name of Offeror or Contractor:   OPTEX SYSTEMS, INC.

	
(CS6100)

	
(End of Clause)

 

	

C-2

	

52.211-4008

(TACOM)

	

DRAWING LIMITATIONS

	

NOV/2005

(a)  The drawings supplied with this contract are rrQl shop or process drawings.  They are engineering design drawings.  They are adequate to permit manufacture,  and:

(1) depict the completed  (item(s), and

(2)  serve as the basis for inspection of the completed item(s).

(b)  These drawings DON'T cover intermediate drawings/specifications or steps in the manufacturing  process.  As a result, even if you meet all the dimensions and tolerances specified in the engineering design drawing for each individual part, a cumulative unacceptable  fit for the contract item could result.

(c) YQ bR - EQN for producing the shop or process drawings needed to cover intermediate  steps in the manufacturing process.

(d) You, the contractor, are responsible for obtaining all specifications  and drawings necessary to manufacture  the items being solicited in accordance with the TDP including all incorporated  specifications  and drawings. Delivery delays are not excusable where the contractor asserts that it did not have a specification or drawing and has failed to request, in writing, the specification  from either the Contracting Officer or Contract Specialist prior to the solicitation closing date.

(e) If you fail to produce an end item with a cumulative  fit that conforms to Government drawings, specifications  or other supplemental manufacturing  documentation,  you'll be responsible for correcting this condition at no additional cost to the Government and no delivery schedule extension.

 

	

C-3

	

52.248-4502 

TACOM (RI)

	

CONFIGURATION  MANAGEMENT DOCUMENTATION

	

JUL/2001

 

The contractor may submit Engineering Change Proposals  (ECPs), Value Engineering change Proposals  (VECPs), (Code V shall be assigned to an engineering change that will effect a net life cycle cost), including Notice of Revisions  (NORs), and Request for Deviations  (RFDs), for the documents in the Technical Data Package (TDP).  The contractor shall prepare these documents in accordance with the Data Item Descriptions  cited in block 04 on the enclosed DD Form 1423, Contract Data Requirements  List.

Contractor ECPs/\TECPs shall describe and justify all proposed changes and shall included NORs completely defining the change to be made. Contractors may also submit RFD, which define a temporary departure from the Technical Data package or other baseline documentation under Government control.  The contractor shall not deliver any units incorporating  any change/deviation to Government documentation until notified by the Government that the change/deviation has been approved and the change/deviation has been incorporated  in the contract.

If the Government receives the same or substantially  the same VECPs from two or more contractors,  the contracts whose \TECP is received first will be entitled to share with the Government  in all instant, concurrent,  future, and collateral  savings under the terms of the VE clause in the contract.

 

Duplicate \TECPs, which are received subsequently, will be returned to the contractor(s)  without formal evaluation,  regardless of whether or not the first VECP has been approved and accepted by the Goverrrment.

 

	
(CS7110)

	
(End of Clause)

 

  

  

  

	
CONTINUATION SHEET

	
Reference No. of Document Being Continued

	
Page 8 of 36

	  	
PIIN/SIIN  SPRDLl-12-C-0023

	
MOD/AMD

	  
	
Name of Offeror or Contractor:   OPTEX SYSTEMS, INC.

SECTION D - PACKAGING AND MARKING

 

	 	Regulatory Cite	                                             Title	Date
	  	  	  	  
	

D-1

	

52.211-4501

TACOM (RI)

	

PACKAGING REQUIREMENTS  (SPECIAL PACKAGING INSTRUCTIONS)

	

DEC/2007

 

A.  Military preservation,  packing, and marking for the item identified above shall be accomplished  ln accordance with the specific requirements  identified below, all the applicable requirements of, MIL-STD-2073-1,  Revision D, Date 15 Dec 99 including Notice 1, dated 10 May 02 and the Special Packaging Instruction  (SPI) contained in the TDP.

PRESERVATION:  MILITARY

LEVEL OF PACKING: B

QUANTITY PER UNIT PACKAGE: 001

SPI NUMBER 9377820-2, Date 02-02-21 REV

B.  Unitization:   Shipments of identical items going to the same destination  shall be palletized  if they have a total cubic displacement of 50 cubic feet or more unless skids or other forklift handling features are included on the containers.  Pallet loads must be stable, and to the greatest extent possible, provide a level top for ease of stacking.  A palletized load shall be of a size to allow for placement of two loads high and wide in a conveyance.   The weight capacity of the pallet must be adequate for the load.  The pallet shall be a 40 x 48 inch, 4-way entry pallet although variations may be permitted as dictated by the characteristics  of the items being unitized.  The load shall be contained in a manner that will permit safe handling during shipment and storage.

C. Marking: In addition to any special markings called out on the SPI;

C.1.  All unit packages, intermediate packs, exterior shipping containers, and, as applicable, unitized loads shall be marked in accordance with MIL-STD-129, Revision P, Change Notice 4, dated 19 Sep 2007 including bar coding and a MSL label.  The contractor  lS responsible for application of special markings as discussed in the Military Standard regardless of whether specified in the contract or not. Special markings include, but are not limited to, Shelf-life markings, structural markings, and transportation  special handling markings. The marking of pilferable and sensitive materiel will not identify the nature of the materiel.  Passive RFID tagging is required in all contracts that contain DFARS clause 252.211-7006.  Contractors must check the solicitation and/or contract for this clause. For details and most recent information, see http://www.acq.osd.mil/log/rfid/index.htm for the current DoD Suppliers Passive RFID Information Guide and Supplier Implementation  Plan. If the item has Unique Item Identifier  (UII) markings then the concatenated UII needs to be 2D bar coded and applied on the unit package, intermediate and exterior containers, and the palletized unit load.

D.  Heat Treabnent and Marking of Wood Packaging Materials: All non-manufactured wood used in packaging shall be heat treated to a core temperature of 56 degrees Celsius for a minimum of 30 minutes. The box/pallet manufacturer  and the manufacturer  of wood used as inner packaging shall be affiliated with an inspection agency accredited by the board of review of the American Lumber Standard Committee. The box/pallet manufacturer  and the manufacturer  of wood used as inner packaging shall ensure tractability  to the original source of heat treabnent. Each box/pallet shall be marked to show the conformance  to the International  Plant Protection Convention Standard. Boxes/pallets  and any wood used as inner packaging made of non-manufactured wood shall be heat-treated.  The quality mark shall be placed on both ends of the outer packaging, between the end cleats or end battens; on two sides of the pallet. Foreign manufacturers  shall have the heat treabnent of non-manufactured wood products verified in accordance with their National Plant Protection Organizations compliance program. In addition, wood used as dunnage for blocking and bracing, to include ISO containers, shall be ordered with ALSC certified marking for dunnage or the markings may be applied locally at two foot intervals.

E.  This SPI has been validated and the method of preservation/packing has proven successful in meeting the needs of the military distribution  system, including indeterminate  storage and shipment throughout the world.  Special instructions and/or tailoring of the SPI is detailed in the Supplemental  Instructions below.  A prototype package is required to validate the sizes and fit requirements of the SPI.  Minor dimensional and size changes are acceptable provided contractor provides the PCO and ACO with notification  60 days prior to delivery.  Any design changes or changes in the method of preservation  that provide a cost savings without degrading the method of preservation  or packing or affecting the serviceability  of the item will be considered and responded to within 10 days of submission to PCO and ACO.  Government  reserves the right to require testing to validate alternate industrial preservation methods, materials, alternate blocking, bracing, cushioning, and packing.

F.  Hazardous Materials  (as applicable):

F.1..Hazardous Materials is defined as a substance, or waste which has been determined by the Secretary of Transportation  to be capable of posing an unreasonable  risk to health, safety, and property when transported in commerce and which has been so designated.  (This includes all items listed as hazardous in Titles 29, 40 and 49 CFR and other applicable modal regulations effective at the time of shipment.)

F.2. Unless otherwise specified, packaging and marking for hazardous material shall comply with the requirements for the mode of transport and the applicable performance packaging contained in the following documents:

—International  Air Transport Association  (IATA) Dangerous Goods Regulations

—International  Maritime Dangerous Goods Code (IMDG)

  

  

  

	
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Name of Offeror or Contractor:   OPTEX SYSTEMS, INC.

 

—Code of Federal Regulations  (CFR) Title 29, Title 40 and Title 49

—Joint Service Regulation AFJMAN24-204/TM38-250/NAVSUPPUB 505/MCO

P4030.19/DLAM  4145.3 (for military air  shipments).

F.3. If the shipment originates from outside the continental United States, the shipment shall be prepared in accordance with the United Nations Recommendations on the Transport of Dangerous Goods in a manner acceptable to the Competent Authority of the nation of origin and in accordance with regulations of all applicable carriers.

F.4.  When applicable,  a Product Material Safety Data Sheets (MSDS) is required to be included with every unit pack and intermediate container and shall be included with the packing list inside the sealed pouch attached to the outside of the package.

G.  SUPPLEMENTAL INSTRUCTIONS: N/A

	
(DS6419)

	
(End of Clause)

 

  

  

  

	
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Name of Offeror or Contractor:   OPTEX SYSTEMS, INC.

SECTION E - INSPECTION AND ACCEPTANCE

 

	  	
g                 LQli ——————————— ill ———————————   — 1 —

	  	  	  	  
	

E-1

	

52.246-2 

	

INSPECTION OF SUPPLIES—FIXED-PRICE

	

AUG/1996

	 	 	 	 
	
E-2

	
52.246-16

	
RESPONSIBILITY FOR SUPPLIES

	
APR/1984

	 	 	 	 
	
E-3

	
52.246-11

	
HIGHER-LEVEL  CONTRACT QUALITY REQUIREMENT

	
FEB/1999

 

The Contractor shall comply with the higher-level  quality standard selected below. [If more than one standard is listed, the offeror shall indicate its selection by checking the appropriate block.

	
Title

	
Number

	
Date

	
Tailoring

	
ISO

	
9001:2008

	
15 Nov 2008

	
Tailored by excluding paragraph 7.3

 

(End of Clause)

 

	

E-4

	

52.209-4512

	

FIRST ARTICLE TEST (CONTRACTOR TESTING)

	

MAR/2001

 

a. The first article shall be examined and tested in accordance with contract requirements,  the item specification(s),  Quality Assurance Provisions  (QAPs) and all drawings listed in the Technical Data Package. The first article shall consist of: Two (2) of Part# 9377820-2

 

b. The first article shall be representative  of items to be manufactured  using the same processes and procedures and at the same facility as contract production. All parts and materials,  including packaging and packing, shall be obtained from the same source of supply as will be used during regular production. All components,  subassemblies,  and assemblies in the first article sample shall have been produced by the Contractor  (including subcontractors) using the technical data package applicable  to this procurement.

c. The first article shall be inspected and tested by the contractor for all requirements of the drawing(s),  the QAPs, and specification(s) referenced thereon, except for:

(1) Inspections and tests contained in material specifications  provided that the required inspection and tests have been performed previously and certificates  of conformance are submitted with the First Article Test Report.

(2) Inspections and tests for Military Standard (MS) components and parts provided that inspection and tests have been performed previously and certifications for the components and parts are submitted with the First Article Test Report.

(3) Corrosion resistance tests over 10 days in length provided that a test specimen or sample representing the same process has successfully passed the same test within 30 days prior to processing  the first article, and results of the tests are submitted with the First Article Test Report.

(4) Life cycle tests over 10 days in length provided that the same or similar items manufactured  using the same processes have successfully passed the same test within First Article Test Report. year prior to processing the first article and results of the tests are submitted with the

 

(5) Onetime qualification  tests, which are defined as a one-time on the drawing(s), provided that the same or similar item manufactured using the same processes has successfully passed the tests, and results of the test are on file at the contractor's  facility and certifications are submitted with the First Article Test Report.

d. The Contractor shall provide to the Contracting Officer at least 15 calendar days advance notice of the scheduled date for final inspection and test of the first article. Those inspections which are of a destructive nature shall be performed upon additional sample parts selected from the same lot(s) or batch(es) from which the first article was selected.

e. A First Article Test Report shall be compiled by the contractor documenting  the results of all inspections and tests (including supplier's and vendor's inspection records and certifications,  when applicable).  The First Article Test Report shall include actual inspection and test results to include all measurements,  recorded test data, and certifications (if applicable) keyed to each drawing, specification and QAP requirement and identified by each individual QAP characteristic,  drawing/specification characteristic  and unlisted characteristic.  Evidence of the QAR's verification will be provided. One copy of the First Article Test Report will be submitted through the Administrative  Contracting Officer to the Contracting Officer Morris.Belleville@us.army.mil and Contract Specialist robert.harrison9@us.army.mil with a copy furnished to ROCK-RDAR-QEP@CONUS.ARMY.MIL.

f. Notwithstanding  the provisions  for waiver of first article, an additional first article sample or portion thereof, may be ordered by the Contracting Officer in writing when (i) a major change is made to the technical data, (ii) whenever there is a lapse in production for a period in excess of 90 days, or (iii) whenever a change occurs in place of performance, manufacturing  process, material used, drawing, specification or source of supply. When conditions  (i), (ii), or (iii) above occurs, the Contractor  shall notify the Contracting Officer so that a determination can be made concerning  the need for the additional first article sample or portion thereof, and instructions provided concerning the submission, inspection, and notification  of results. Costs of the additional first article testing resulting from any of the causes listed herein that were instituted by the contractor and not due to changes directed by the Government shall be borne by the Contractor.

 

(End of Clause)

  

  

  

 

	
 

	
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Name of Offeror or Contractor:   OPTEX SYSTEMS, INC.

 

	
E-5

	
52.246-4533

	
SURFACE QUALITY STANDARDS

	
MAR/2001

	  	
TACOM (RI)

	  	  

 

a. Surface quality standards for optical elements  (Scratch and Dig) per MIL-PRF-13830B,  are required to perform acceptance inspection under this contract and are available as listed in Drawing Number 7641866 (Cost Each $2,000). The standards will be furnished to the Contractor on a loan basis for use on this contract. The standards shall not be used on other contracts unless written authorization  is received from the Contracting Officer. The Administering  Contracting Officer  (ACO) designated by the agency administering  the contract, or the Contracting Officer (CO) if an ACO was not assigned shall submit the Contractor's  request for equipment to COMMANDER-ARDEC,  ATTN: RDAR-QEW PICATINNY ARSENAL  NJ  07806-5000.   Shipping costs shall be borne by the shipper.

 

b. The contractor shall hereby indicate the facility to which this Government Furnished Property should be shipped:

 

c. Upon receipt, the Contractor should retain shipping containers for return of the standards. All costs of packing, packaging, shipping, and insurance shall be borne by the Contractor.

 

d. The Contractor shall be responsible for shipping the surface quality standards to the Government  for certification  at 12 month intervals. Notification  and shipping instructions shall be provided to the Contractor by COMMANDER-ARDEC,  ATTN: RDAR-QEW PICATINNY ARSENAL  NJ  07806-5000. The notification  shall include the standard's serial number and will be sent 30 days prior to the actual due date for certification.

 

e. Within 30 calendar days after completion of delivery of all items on this contract requiring scratch and digs, the Contractor shall assure that the Government owned standards referenced in paragraph a above are in the same condition as when received.  Upon verification by a Goverrrment representative  that the standards are undamaged.  the Contractor shall prepare the standards for delivery in accordance with best commercial practices.   The Contractor shall ship the standards with aDD Form 1149 to COMMANDER-ARDEC,  ATTN: RDAR­ QEW PICATINNY ARSENAL  NJ  07806-5000.

 

	
(ES6018)

	
(End of Clause)

	  

 

	
E-6

	
52.209-4012

(TACOM)

	
NOTICE REGARDING FIRST ARTICLE

	
APR/2000

 

(a) Notwithstanding  the provisions for waiver of first article, an additional first article sample (or portion thereof) may be ordered by the Contracting Officer in writing when (i) a major change is made to the technical data, (ii) whenever there is a lapse ln production  for a period in excess of one year, or (iii) whenever a change occurs in place of performance, manufacturing  process, material used, drawing, specification or source of supply.

(b) When any of the conditions above occurs, the Contractor shall notify the Contracting Officer so that a determination  can be made concerning  the need for the additional first article sample (or portion thereof), and instructions can be provided concerning the submission, inspection, and notification  of results.

 

(c)  Costs of any additional  testing and inspection resulting from conditions specified above shall be borne by the Contractor, unless the change was directed by the Government.   Further, any production delays caused by additional  testing and inspection will not be the basis for an excusable delay as defined in the default clause of this contract. Such delays shall not form the basis for adjustment in contract price or delivery schedule.

 

[End of Clause]

	
E-7

	
52.211-4029

(TACOM)

	
INTERCHANGEABILITY OF COMPONENTS

	
MAY/1994

 

(a)  NN.....QHMQ _TQ_l.T.f!.!12_NQT_UND......f!R....QQ T...12.f!gQN_QQNTRQ1.    Once the Government accepts the first production test item, or accepts the first end item you deliver,  (whichever comes first) you must not make design changes to any item or part that is not under Goverrrment design control.

(b)  !!N...TH.f!_EQ1IQY.....Qbtl_ .f!_   Y -    The Procuring Contracting Officer  (PCO) will consider waiving this policy at your request.  If your request reaches the CO after the first production item test has been performed, then we may conduct another first production test at your expense.

  

 

  

 

	
 

	
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Name of Offeror or Contractor:   OPTEX SYSTEMS, INC.

 

(c) £RQ QTIQN_QR_ l Ry_  bY2- Any production or delivery delays caused by this retesting will not be the basis for:

 

(1) an  "excusable delay" as defined in the DEFAULT clause of this contract.

 

(2) be the basis for an lncrease ln contract price or delivery schedule extension.

[End of  clause]

 

	
E-8

	
52.246-4028

	
INSPECTION AND ACCEPTANCE POINTS: ORIGIN

	
NOV/2005

	  	
(TACOM)

	  	  

 

The Goverrrment's inspection and acceptance of the supplies offered under this contract/purchase order shall take place at ORIGIN. Offeror must specify below the exact name, address, and CAGE of the facility where supplies to be furnished under this contract/purchase order will be available for inspection/acceptance.

	
INSPECTION

	
POINT:

	OPTEX SYSTEMS, INC. OBK64	  	  
	  	  	1420 PRESIDENTIAL DRIVE, RICHARDSON	
TX

	
75081

	  	  	  	  	  	  
	  	  	  	  	  	  
	  	  	  	  	  	  
	
ACCEPTANCE

	
POINT:

	
SAME AS ABOVE

	  	  	  

[End of Clause]

	
E-9

	
52.246-4532

	DESTRUCTIVE TESTING	
MAY/1994

	  	
TACOM RI

	  	  

 

a. All costs for destructive testing by the Contractor and items destroyed by the Government are considered as being included in the contract unit price.

 

b. Where destructive  testing of items or components  thereof is required by contract or specification,  the number of items or components required to be destructively  tested, whether destructively  tested or not, shall be in addition to the quantity to be delivered to the Goverrrment as set forth in the Contract Schedule.

 

c. All pieces of the complete First Article shall be considered as destructively  tested items unless specifically exempted by other provisions of this contract.

 

d. The Contractor shall not reuse any components  from items used ln a destructive  test during First Article, lot acceptance or inprocess testing, unless specifically authorized by the Contracting Officer.

 

e. The Government reserves the right to take title to all or any items or components described above. The Government may take title to all or any items or components upon notice to the Contractor. The items or components of items to which the Goverrrment takes title shall be shipped in accordance with the Contracting Officer's instructions.  Those items and components  to which the Government does not obtain title shall be rendered inoperable and disposed of as scrap by the Contractor.

 

	
(ES7011)

	
(End of Clause)

 

  

 

  

 

	
 

	
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	CONTINUATION SHEET	 	 
	  	
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MOD/AMD

	  
	
Name of Offeror or Contractor:   OPTEX SYSTEMS, INC.

 

SECTION F - DELIVERIES OR PERFORMANCE

	  	
g'dl i.QJ:;:y_Qil_

	
——————————————— ill ———————————————

	
—— 1 ——

	
F-1

	
52 .211-17

	
DELIVERY OF EXCESS QUANTITIES

	
SEP/1989

	
F-2

	
52 .242-15

	
STOP-WORK ORDER

	
AUG/1989

	
F-3

	
52 .242-17

	
GOVERNMENT DELAY OF WORK

	
APR/1984

	
F-4

	
52 .247-34

	
F O.B. DESTINATION

	
NOV/1991

	
F-5

	
52 .247-48

	
F O.B. DESTINATION— EVIDENCE OF SHIPMENT

	
FEB/1999

	
F-6

	
252 .211-7006

	
RADIO FREQUENCY IDENTIFICATION

	
FEB/2007

	  	  	  	  
	
F-7

	
252 .211-7003

	
ITEM IDEN"TIFICATION AND VALUATION

	
AUG/2008

 

(a) Definitions. As used in this clause

 

"Automatic identification  device" means a device, such as a reader or interrogator, used to retrieve data encoded on machine-readable media.

 

"Concatenated unlque item identifier" means

(1) For items that are serialized within the enterprise identifier, the linking together of the unique identifier data elements in order of the lSSUlng agency code, enterprise identifier, and unique serial number within the enterprise identifier; or

 

(2) For items that are serialized within the original part, lot, or batch number, the linking together of the unlque identifier data elements in order of the issuing agency code; enterprise identifier; original part, lot, or batch number; and serial number within the original part, lot, or batch number.

 

"Data qualifier" means a specified character  (or string of characters)  that immediately precedes a data field that defines the general category or intended use of the data that follows.

 

"DoD recognized unique identification  equivalent" means a unique identification method that is in commercial use and has been recognized by DoD. All DoD recognized unique identification  equivalents are listed at

http://www.acq.osd mil/dpap/pdi/uid/iuid_equivalents.html. 

 

"DoD unique item identification" means a system of marking items delivered to DoD with unique item identifiers that have machine­ readable data elements to distinguish an item from all other like and unlike items. For items that are serialized within the enterprise identifier, the unique item identifier shall include the data elements of the enterprise identifier and a unique serial number. For items that are serialized within the part, lot, or batch number within the enterprise identifier, the unique item identifier shall include the data elements of the enterprise identifier; the original part, lot, or batch number; and the serial number. 

 

"Enterprise" means the entity (e.g., a manufacturer  or vendor) responsible for assigning unique item identifiers to items. "Enterprise identifier" means a code that is uniquely assigned to an enterprise by an issuing agency. 

 

"Governments unit acquisition cost" means

 

(1) For fixed-price type line, subline, or exhibit line items, the unit price identified in the contract at the time of delivery;

 

(2) For cost-type or undefinitized  line, subline, or exhibit line items, the Contractors estimated fully burdened unit cost to the Government at the time of delivery; and

 

(3) For items produced under a time-and-materials contract, the Contractors estimated fully burdened unit cost to the Government at the time of delivery.

"Issuing agency" means an organization  responsible for assigning a non-repeatable  identifier to an enterprise  (i.e., Dun &   Bradstreets Data Universal Numbering System (DUNS) Number, GS1 Company Prefix, or Defense Logistics Information System (DLIS) Commercial and Government Entity (CAGE) Code).

 

"Issuing agency code" means a code that designates the registration  (or controlling) authority for the enterprise identifier. "Item" means a single hardware article or a single unit formed by a grouplng of subassemblies,  components, or constituent parts.

 

"Lot or batch number" means an identifying number assigned by the enterprise  to a designated group of items, usually referred to as either a lot or a batch, all of which were manufactured under identical conditions.

 

"Machine-readable"  means an automatic identification  technology media, such as bar codes, contact memory buttons, radio frequency identification,  or optical memory cards.

  

 

  

 

	
 

	
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	CONTINUATION SHEET	 	 
	  	
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MOD/AMD

	  
	
Name of Offeror or Contractor:   OPTEX SYSTEMS, INC.

 

"Original  part  number" means a combination of numbers or  letters assigned  by the enterprise  at  item creation  to a class  of  items with the same form, fit, function, and interface.

 

"Parent item" means the item assembly, intemediate component, or subassembly that has an embedded item with a unique item identifier or DoD recognized unique identification equivalent. 

 

"Serial number within the enterprise identifier" means a combination of numbers, letters, or symbols assigned by the enterprise to an item that provides for the differentiation of that item from any other like and unlike item and is never used again within the enterprise.

 

"Serial number within the part, lot, or batch number" means a combination of numbers or letters assigned by the enterprise to an item that provides for the differentiation of that item from any other like item within a part, lot, or batch number assignment.

 

"Serialization within the enterprise identifier" means each item produced is assigned a serial number that is unlque among all the tangible items produced by the enterprise and is never used again. The enterprise is responsible for ensuring unique serialization within the enterprise identifier.

 

"Serialization within the part, lot, or batch number" means each item of a particular part, lot, or batch number is assigned a unlque serial number within that part, lot, or batch number assignment. The enterprise is responsible for ensurlng unlque serialization within the part, lot, or batch number within the enterprise identifier.

 

"Unique item identifier" means a set of data elements marked on items that is globally unique and unambiguous.  The tem includes a concatenated unique item identifier or a DoD recognized unique identification equivalent.

 

"Unique item identifier type" means a designator to indicate which method of uniquely identifying a part has been used. The current list of accepted unique item identifier types is maintained at http://www.acq.osd.mil/dpap/pdi/uid/uii_types.html.

(b) The Contractor shall deliver all items under a contract line, subline, or exhibit line item. 

 

(c) Unique item identifier.

 

(1) The Contractor shall provide a unique item identifier for the following:

 

(i) All delivered items for which the Goverrrments unit acquisition cost is $5,000 or more. 

 

(ii) The following items for which the Governments unit acquisition cost is less than $5,000:

 

	
Contract Line,

	 
	
Subline, or

	  
	
Exhibit Line Item Number

	
Item Description

 

  N/A__________

 

(iii) Subassemblies,  components, and parts embedded within delivered items as specified in Attachment Number N/A.

 

(2) The unique item identifier and the component data elements of the DoD unique item identification  shall not change over the life of the item.

 

(3) Data syntax and semantics of unique item identifiers. The Contractor shall ensure that

 

(i) The encoded data elements  (except issuing agency code) of the unique item identifier are marked on the item using one of the following three types of data qualifiers, as determined by the Contractor:

 

(A) Application  Identifiers  (Ais) (Format Indicator 05 of ISO/IEC International  Standard 15434), in accordance with ISO/IEC International  Standard 15418, Information Technology  EAN/UCC Application  Identifiers and Fact Data Identifiers and Maintenance and ANSI MH 10.8.2 Data Identifier and Application Identifier Standard.

 

(B) Data Identifiers  (Dis) (Format Indicator 06 of ISO/IEC International  Standard 15434), in accordance with ISO/IEC International  Standard 15418, Infomation Technology  EAN/UCC Application  Identifiers and Fact Data Identifiers and Maintenance and ANSI MH 10.8.2 Data Identifier and Application  Identifier Standard.

(C) Text Element Identifiers  (TEis) (Format Indicator 12 of ISO/IEC International  Standard 15434), in accordance with the Air

 

Transport Association  Common Support Data Dictionary;  and

  

 

  

 

	
 

	
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Name of Offeror or Contractor:   OPTEX SYSTEMS, INC.

 

(ii) The encoded data elements of the unique item identifier conform to the transfer structure, syntax, and coding of messages and data formats specified for Format Indicators 05, 06, and 12 in ISO/IEC International  Standard 15434, Information Technology  Transfer Syntax for High Capacity Automatic Data Capture Media.

 

(4) Unique item identifier. 

 

(i) The Contractor shall 

 

(A) Determine whether to

 

(1) Serialize within the enterprise identifier;

 

(2) Serialize within the part, lot, or batch number; or

 

(3) Use a DoD recognized unique identification  equivalent; and

 

(B) Place the data elements of the unique item identifier  (enterprise identifier; serial number; DoD recognized unique identification  equivalent; and for serialization  within the part, lot, or batch number only: original part, lot, or batch number) on items requiring marking by paragraph  (c)(1) of this clause, based on the criteria provided in the version of MIL-STD-130,  Identification Marking of U.S. Military Property, cited in the contract Schedule.

 

(ii) The issuing agency code

 

(A) Shall not be placed on the item; and

 

(B) Shall be derived from the data qualifier for the enterprise  identifier.

 

(d) For each item that requires unique item identification  under paragraph  (c)(1)(i) or (ii) of this clause, in addition to the information provided as part of the Material Inspection and Receiving Report specified elsewhere in this contract, the Contractor  shall report at the time of delivery, either as part of, or associated with, the Material Inspection and Receiving Report, the following information:

 

(1) Unique item identifier.

 

(2) Unique item identifier type.

 

(3) Issuing agency code (if concatenated unlque item identifier is used).

 

(4) Enterprise identifier  (if concatenated unique item identifier is used).

 

(5) Original part number  (if there is serialization within the original part number). 

 

(6) Lot or batch number (if there is serialization within the lot or batch number). 

 

(7) Current part number (optional and only if not the same as the original part number). 

 

(8) Current part number effective date (optional and only if current part number is used). 

 

(9) Serial number (if concatenated unique item identifier lS used). 

 

(10) Governments unit acquisition cost.

 

(11) Unit of measure.

 

(e) For embedded subassemblies,  components, and parts that require DoD unique item identification  under paragraph  (c)(1)(iii) of this clause, the Contractor shall report as part of, or associated with, the Material Inspection and Receiving Report specified elsewhere in this contract, the following information:

 

(1) Unique item identifier of the parent item under paragraph  (c)(1) of this clause that contains the embedded subassembly,  component, or part.

 

(2) Unique item identifier of the embedded subassembly,  component, or part.

 

(3) Unique item identifier type.**

 

  

 

  

 

	
 

	
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MOD/AMD

	  
	
Name of Offeror or Contractor:   OPTEX SYSTEMS, INC.

 

(4) Issuing agency code (if concatenated unique item identifier is used).**

 

(5)  Enterprise identifier  (if  concatenated  unique item identifier is used).**

 

(6) Original part number  (if there is serialization within the original part number)

 

(7)  Lot  or  batch  number (if  there is  serialization  within the lot or batch number).**

 

(8) Current part number (optional and only if not the same as the original part number)

 

(9) Current part number effective date (optional and only if current part number is used).**

 

(10) Serial  number (if  concatenated unique item identifier is used).**

 

(11) Description.

 

**  Once per item.

 

(f) The Contractor  shall submit the information required by paragraphs  (d) and (e) of this clause in accordance with the data submission procedures at

 

http://www acq.osd.mil/dpap/pdi/uid/data_submission_information.html.

 

(g) Subcontracts.  If the Contractor acquires by subcontract, any item(s) for which unique item identification  lS required in accordance with paragraph  (c)(1) of this clause, the Contractor shall include this clause, including this paragraph  (g), ln the applicable subcontract(s).

 

(End of clause)

	
F-8

	
52.242-4022

	
DELIVERY SCHEDULE

	
SEP/2008

	  	
(TACOM)

	  	  

(a) Delivery under this contract must conform to the required schedule specified below, unless acceleration  is acceptable.

 

(b) DEFINITIONS:

 

(1) DAYS means the number of days after the date of contract award when you must deliver the stated quantity (QTY) of supplies.

 

(2) DELIVERY is defined as follows:

 

FOB Origin- Contractor is required to deliver its shipment as provided in FAR 52.247-29(a)(1)-(4) by the time specified in the individual contract; or

 

FOB Destination- Contractor is required to deliver its shipment as provided in FAR 52.247-34(a)(1)-(2) by the time specified in the individual contract. The contractor must take into consideration  the length of time necessary to deliver its shipment to the destination designated ln the contract, to ensure that the item reaches its destination by the time reflected in the contract.

 

(c)  The Government  requlres delivery to be made according to the following schedule:

(1) GOVERNMENT REQUIRED DELIVERY SCHEDULE WITH FIRST ARTICLE TEST (FAT)

	
ITEM NO.

	
QTY

	
WITHIN DAYS AFTER DATE OF CONTRACT AWARD

	
0001AA

	
52

	
330

(2) GOVERNMENT REQUIRED DELIVERY SCHEDULE IF THERE IS NO FIRST ARTICLE TEST (FAT), OR IF FAT IS WAIVED

	
ITEM NO.

	
QTY

	
WITHIN DAYS AFTER DATE OF CONTRACT AWARD

	
0001AA

	
52

	
15 0

  

 

  

 

	
 

	
Reference No. of Document Being Continued

	
Page 17 of 36

	CONTINUATION SHEET	 	 
	  	
PIIN/SIIN  SPRDLl-12-C-0023

	
MOD/AMD

	  
	
Name of Offeror or Contractor:   OPTEX SYSTEMS, INC.

 

(d) Accelerated delivery schedule IS acceptable.

 

(e) If an accelerated delivery schedule is not acceptable,  the required delivery schedule above will apply.  If it is acceptable, you may propose an accelerated delivery schedule at no additional cost; fill in the appropriate  information here:

 

(1) OFFERORS PROPOSED ACCELERATED DELIVERY SCHEDULE WITH FIRST ARTICLE TEST (FAT)

	
ITEM

	
NO.

	
QTY

	
WITHIN DAYS AFTER DATE OF CONTRACT AWARD

(2) OFFERORS PROPOSED ACCELERATED DELIVERY SCHEDULE WITHOUT FIRST ARTICLE TEST (FAT), or IF FAT IS WAIVED

 

	
ITEM

	
NO.

	
QTY

	
WITHIN DAYS AFTER DATE OF CONTRACT AWARD

 

[End of Clause]

	
F-9

	
52.247-4009

	
DELIVERY OF SUPPLIES FROM FOREIGN FIRMS TO U.S. PORT OF ENTRY

	
AUG/2003

	  	
(TACOM)

	  	  

 

This clause applies only to foreign firms when shipments are required to destinations within the Continental United States (CONUS).

 

(1) The F.O.B. point for this acquisition  is DESTINATION.  You must arrange and pay for (i) transportation  to the U.S. port of entry, (ii) port handling,  (iii) customs clearance, and (iv) all transportation  from the port of entry to the consignee(s)  listed in this solicitation.

 

(2) Acceptance will be at destination  if the awardee lS an OCONUS (Outside Continental United States) foreign firm.

 

(3)  Identification  of shipment. The Contractor must insure that all shipments be clearly marked in accordance with MIL-STD- 129 and other marking requirements specified in the Schedule. The Duty-Free Entry clauses in this contract contain instructions on the documentation  required to accompany the shipment for duty-free entry.

 

(4) Notification  of Shipment. The Contractor shall send electronic notification  to the Procuring Contracting Officer (PCO) when shipment is made, which includes the following information:

 

(i) Mode of transportation,  carrier, bill of lading number, customs broker (if any), and estimated time of arrival of materiel at OCONUS port authority

 

(ii)  Mode of transportation,  carrier, bill of lading number, and estimated dates for pick-up from CONUS port authority and delivery to final destination.

 

(5) You assume all responsibility  for risk of loss or damage to the supplies until received at the destination.  See the clause entitled RESPONSIBILITY  FOR SUPPLIES (FAR 52.246-16).

 

[End of Clause]

	
F-10

	
52.247-4017

	
DEPOT ADDRESS FOR THE APPLICABLE MODE OF SHIPMENTS:

	
IN-THE-CLEAR 

	
NOV/2009

	  	
(TACOM)

	
ADDRESSES

	  	  

 

	
Rail/

	
MILSTRIP

	  	  	  
	
Motor

	
Address

	
Rail

	
Motor

	
Parcel Post

	
_g_1,

	
QQQ —

	
hii2TQ_;_

	
il2...T_Q_:_

	
.!1.§i.l T_Q_;_

	  	  	  	  	  
	
206721/

	
W25G1U

	
Transportation Officer Defense Dist Depot

	
Transportation Officer Defense Dist Depot

	
Transportation Officer Defense Dist Depot

	
209405

	  	
Susquehanna

	
Susquehanna

	
Susquehanna

	  	  	
New Cumberland, PA

	
New Cumberland, PA

	
New Cumberland, PA 17070-5001

  

 

  

 

	
 

	
Reference No. of Document Being Continued

	
Page 18 of 36

	CONTINUATION SHEET	 	 
	  	
PIIN/SIIN  SPRDLl-12-C-0023

	
MOD/AMD

	  
	
Name of Offeror or Contractor:   OPTEX SYSTEMS, INC.

 

NOTE:  All deliveries  to New Cumberland MUST be scheduled at least 10 days prior to the delivery date.  The carrler or contractor must call the New Cumberland DDSP customer service number, 800-307-8496 and provide the following information:  contract number, item name, National Stock Number, total weight and cube, and vendor.  All shipments to this MILSTRIP address code (W25GlU) are for mission stock and they will need to know that as well, but if you have instructions  from the Contracting Officer to use MILSTRIP address code W25N14 instead, you must inform the appointment-taker that the delivery is for Consolidation and Containerization Point (CCP) stock.

 

Appointments  for FOB Origin shipments should be coordinated with DCMA Transportation.

	
875670/

	
W62G2T

	
Transportation Officer

	
Transportation Officer

	
Transportation Officer

	
875675

	  	
XU Def Dist Depot

	
XU Def Dist Depot

	
Dist Depot San Joaquin

	  	  	
San Joaquin

	
San Joaquin

	
P 0 Box 96001

	  	  	
25600 S Chrisman Rd

	
25600 S Chrisman Rd

	
Stockton, CA 95296-0130

	  	  	
Rec Whse 10

	
Rec Whse 10

	  
	  	  	
Tracy, Ca 95376-5000

	
Tracy, Ca 95376-5000

	  
	  	  	  	  	  
	
471995/

	
W31G1Z

	
Transportation Officer

	
Transportation Officer

	
Transportation Officer

	
471996

	  	
Armiston Army Depot,

	
Anniston Army Depot,

	
Armiston Army Depot,

	  	  	
Bynum, AL

	
Bynum, AL

	
Armiston, AL 36201-5021

	  	  	  	  	  
	
209741/

	
W25G1R

	
Transportation Officer

	
Transportation Officer

	
Transportation Officer

	
209770

	  	
Letterkenny Army Depot,

	
Letterkenny Army Depot,

	
Letterkenny Army Depot,

	  	  	
Culbertson, PA

	
Chambersburg, PA

	
Chambersburg, PA 17201-4150

	  	  	  	  	  
	
661136/

	
W45G19

	
Transportation Officer

	
Transportation Officer

	
Transportation Officer

	
661157

	  	
Red River Army Depot,

	
Red River Army Depot,

	
Red River Army Depot,

	  	  	
Defense, TX

	
Texarkana, TX

	
Texarkana, TX 75507-5000

 

NOTE:  Drivers must schedule an appointment  for delivery at least 24 hours in advance.  Deliveries will be scheduled for Monday-Friday,

 

0700-1300.  E-mail or fax the PCO at CML (903)334-2208 or CML (903)334-2881.  POC's are available Monday-Saturday,  0700-1730 with the exception of government holidays.  For directions, please call CML (903)334-3060.  Trucks enter through the commercial carrier route entrance and report to building 23 Truck Control 30 minutes prior to their scheduled appoinbnent.  Carriers that arrive at Truck Control without appointments  will be placed at the end of the day's schedule unless there is an earlier opening and will be worked/unloaded as soon as possible.

 

POCs:  ddrt-appt@dla mil, Randy Cox, CML (903)334-2945, Randy.Cox@dla.mil; Angela Carr, CML (903)334-4950 Angela.Carr@dla.mil; Jane Haley, CML (903)334-4671 Jane.Haley@dla.mil; Darlene Phelps, CML (903)334-3818 Darlene.Phelps@dla.mil.

 

	
764538/

	
W67G23

	
Transportation Officer

	
Transportation Officer

	
Transportation Officer

	
764535

	  	
Tooele Army Depot,

	
Tooele Army Depot,

	
Tooele Army Depot,

	  	  	
Warner, UT

	
Tooele, UT

	
Tooele, UT 84074-5003

 

***SPLC indicates  tandard  £oint 1ocator Qode.

 

NQTThe     following is applicable 2TilY when so specified ln an individual order or delivery increment:

This requirement is a depot replenishment buy, a portion of which is or may be required to fill Direct Support System (DSS) requisitions.  Shipment shall be made, as specified, to one or more of:

 

New Cumberland Army Depot

Red River Army Depot

Sharpe Army Depot

prlor to shipments to any other depots as may be designated.  When more than one depot is designated for DSS shipments, priority shipments will be made equally to each of the designated destinations.

[End of Clause]

  

 

  

 

	
 

	
Reference No. of Document Being Continued

	
Page 19 of 36

	CONTINUATION SHEET	 	 
	  	
PIIN/SIIN  SPRDLl-12-C-0023

	
MOD/AMD

	  
	
Name of Offeror or Contractor:   OPTEX SYSTEMS, INC.

 

SECTION G - CONTRACT ADMINISTRATION DATA

	  	
PRON/

	  	  	  	  	  
	
LINE

	
AMS CD/

	
OBLG

	  	  	  	
OBLIGATED

	
l _!L

	
.!1l.ffi_____

	
.0ZbT_

	
.JQ_NQ_

	
b.QBH

	  	
b.!1Q1ITIT ____

	
OOOlAA

	
M112A243Ml

	
2

	  	
AA

	  	
1,152,272.20

	  	
SM2B1100000

	  	  	  	  	  
	  	  	  	  	  	  	  
	  	  	  	  	  	
TOTAL

	
1,152,272.20

 

	
ACCOUNTING CLASSIFICATION

	  	
OBLIGATED

	  	  	  	  	  	
b.!1Q1ITIT_

	
97

	
X4930AC9D 6D

	
26KB

	
S20113

	  	
$ 1 2 J1J JQ

	  	  	  	  	  	  
	  	  	  	  	
TOTAL

	
1,152,272.20

 

	
LINE

	  	  	  	  	  	  	  
	
l _!L

	
ACRN

	EDI/SFIS ACCOUNTING CLASSIFICATION	  	  
	
OOOlAA

	
AA

	
97

	
OXOX4930AC9D

	
S20113

	
6DOOOOSM2B110000026KB

	
S20113

	
W56HZV

	  	
g

	
LQli ——————————— ill—————————

	
—— 1 ——

	  	  	  	  
	
G-1

	
52.204-4011

	
PAYMENT INSTRUCTIONS FOR THE DEFENSE FINANCE AND ACCOUNTING SERVICE

	
OCT/2005

	  	
(TACOM)

	
(DFAS)

	  

 

In accordance with DFARS PGI 204.7108, the contract shall be paid in accordance with DFARS PGI 204.7108(d)(5),  line item specific by cancellation  date.

 

[End of Clause]

 

  

 

  

 

	
CONTINUATION SHEET

	
Reference No. of Document Being Continued

	
  Page  20 of 36

	 	 	 
	  	
PIIN/SIIN    SPRDLl-12-C-0023                     MOD/AMD

	  

Name of Offeror or Contractor:  OPTEX SYSTEMS, INC.

 

SECTION H - SPECIAL CONTRACT REQUIREMENTS

g          LQli ——————— 111 ———————  — 1 —

	
H-1

	
252.222-7006

	
RESTRICTIONS  ON THE USE OF MANDATORY ARBITRATION AGREEMENTS

	
DEC/2010

	  	  	  	  
	
H-2

	
52.204-4005

	
REQUIRED USE OF ELECTRONIC CONTRACTING

	
SEP/2004

 

(a) All contract awards, modifications  and delivery orders issued by DLA Warren will be issued electronically.   The contractor has the option to receive these actions either via the Worldwide Web (WWW) or Electronic Data Interchange  (EDI).  Many provisions/clauses that appear "by reference,' meaning only clause titles and regulation site are listed; their full texts can be found at the website http://farsite.hill.af.mil/

(b)  In order to be eligible to receive an award under this solicitation,  the successful offeror must be registered with the Department of Defense  (DOD) Central Contractor Registration  (CCR).  The CCR registration process may be done electronically  at the World Wide Web (WWW) site: http://www.ccr.gov/(In order to be registered to use EDI, you must use the long form for registration. Certification  information,  including information on the EDI 838 TPP, must be furnished to the Contracting Officer within 60 calendar days after contract award to complete networking  requirements within the Government.)

 

(c) Worldwide Web Distribution.   The contractor will receive an electronic Notice of the Award, Modification,  or Delivery Order Vla e-mail.  If you choose the WWW option, you must download the file from the appropriate TACOM webpage:

 

Warren: http://contracting.tacom.army.mil/CFDATA/AWARDS/AWARD_RPT01.cfm

Rock Island: https://aais.ria.army.mil/AAIS/AWDINFO/index.htm

Picatinny: http://procnet.pica.army.mil/dbi/DynCED/award.cfm

Red River Army Depot: http://www.redriver.army.mil/contractingframes/RecentAwardsDPD cfm

Anniston Army Depot: http://www.anadprocnet.army.mil/

(d)  Electronic Data Interchange.   If you choose to receive contract awards, modifications  and delivery orders through EDI, they will be delivered electronically  via the Federal Acquisition Network  (FACNET).  Federal Standard Version 3050 of Standard X12 from the American National Standards Institute (ANSI) will be used as the format for these electronic transactions.

(1) You must complete the EDI 838 Trading Partner Profile, and must agree (i) to subcontract with a DoD certified VAN or Value Added Service (VAS) provider, or (ii) to become DoD certified as a Value Added Network  (VAN).  The EDI 838 Training Partner Profile is contained ln the basic CCR registration  form and includes portions of the registration form which are titled "Optional"

(2) You must select a VAN from the official DoD approved list.  DoD Certified VANs are listed at http://www.acq.osd mil/dpap/ebiz/VANs.htm If your VAN is later removed from the official list, or if you voluntarily drop your initially selected VAN, then you must switch to a VAN that remains on the official DoD approved list.  You must maintain an active account on a DoD approved VAN for the entire duration of the contract, beginning no later than the 60th day after award.

(e) Unless otherwise specified elsewhere in the contract, all data items you are required to provide under this contract must be submitted electronically.   Please go to the following webpage for detailed information about submitting your offer electronically: http://contracting.tacom.army.mil/acqinfo/ebidnotice.htm

(f) Additional information can be obtained by sending a message to:  DAMI_acqcenweb@conus.army.mil  or by calling (586) 574-7059.

	
H-3

	
52.245-4500

	
DEMILITARIZATION AND TRADE SECURITY CONTROL REQUIREMENTS AND PROCEDURES

	
OCT/2006

	  	
TACOM LCMC

	  	  
	  	
(RI)

	  	  

 

I. Demil and Trade Security Controls  (TSCs) Summary:

 

A. This procurement  action has a demil and/or TSC consideration  requirement. The demil and trade security control provisions  in this solicitation  implement the policy and requirements of the Arms Export Control Act, 22 United States Code (U.S.C.), Section 2778, the International Traffic in Arms Regulations  (ITAR) at 22 Code of Federal Regulations  (CFR), Parts 120-130, the Export Administration Regulations  (EAR), at 15 CFR 730-774 and the Export Administration  Act. Regulatory  requirements and guidance are contained in Federal Acquisition Regulation  (FAR) 45.6, Reporting, Redistribution,  and Disposal of Contractor Inventory and Defense Federal Acquisition Regulation  Supplement  (DFARS) 245.604, Restrictions  on Purchase or Retention of Contractor  Inventory.

 

B. Demil and TSC policy is promulgated via Department of Defense  (DoD) regulations and in the establishment  of contract requirements. Accordingly,  the Governments  right to require demilitarization under this clause is a contractual  right, subject to the authority and discretion of the Procuring Contracting Officer (PCO). Therefore the PCO may or may not forward Contractor demilitarization waiver request to the DoD Demilitarization Program Manager for review and approval, even when there is certifiable Contractors compliance with all existing TSC regulations. The walver approval process is described in paragraph VII of this clause.

 

  

  

  

 

	
CONTINUATION SHEET

	
Reference No. of Document Being Continued

	
  Page  21 of 36

	 	 	 
	  	
PIIN/SIIN    SPRDLl-12-C-0023                     MOD/AMD

	  

Name of Offeror or Contractor:  OPTEX SYSTEMS, INC.

 

C. The DoD policy and requirements  for demil and TSCs are contained in the DoD 4160.21-M-1,  Demil and TSCs Manual. This manual is hereby incorporated by reference, and its terms, conditions, and procedures are valid and enforceable as contractual  requirements.  If there is a conflict between the Demil and TSCs Manual and the Demil and TSC Clause herein, the Demil and TSCs Manual takes precedence.

 

D. This contract requires the manufacture,  assembly, test, maintenance,  repair, and/or delivery of military/defense items. This clause sets forth the requirements  for the control and corresponding  certification  and verification  of disposition of contract excess property.

 

The requirements under this clause are applicable to any Contractor and/or Subcontractor who perform work under this contract. This clause is a mandatory flow-down clause; accordingly, Contractor/Subcontractor must include this clause in subcontracts for work under this solicitation  and resulting contract.

 

E. The demil and TSC requirements apply to all materials and property  (Government furnished equipment  (GFE)), special tools and special test equipment, manufactured  parts in whatever stage of assembly, and associated technical data including technical manuals, drawings, process sheets, and working papers) bought, assembled, produced, or provided by the Government under this contract regardless of the type of contract and regardless of who has title to the material. The intent is to control military/defense items in accordance with statutory and regulatory requirements. Bidders/offerors proposed prices under this solicitation and any resulting contract should include any and all cost(s) to comply with this clause and the Goverrrments demil and TSC requirements.

 

F. In general, the demil requirements must be met upon completion of the contract. For indefinite delivery contracts as defined by FAR 16.501-2, demil requirements must be met upon the expiration of the potential contractual performance period as described in section A of the contract and/or in section B (the schedule) of the contract; or upon contract termination if the contract is terminated earlier. Contractor(s)  awarded a contract with demil requirements  shall be responsible for maintaining an inventory system capable of recording, safeguarding and tracking all material, work in process, components associated or related to the performance  of the contract for the purpose  (not intended to be exclusive) of enabling the Contractor to fulfill its demil obligations under this clause. The Contractor will provide a copy of demil certificates  to the PCO within 30 days for inclusion in the contract file.

 

G. Paragraph VIII. c. of this clause applies to the demil of excess U.S. Goverrrment furnished equipment  (GFE)/technical data provided to a Contractor in support of this contract; see excess GFE definition II. b. below. If the Contractor  is not using GFE in performance of this contract, disregard this paragraph.

 

H. The Contractor agrees that demil performed under this contract will be conducted in accordance with this clause or DoD 4160.21-M-1, Demil and TSCs Manual, and all demilitarized material will meet or exceed the definition of scrap as defined by this clause.

 

II. Definitions:

 

A. Contract excess property is property of the type covered by this contract for which the contractor does not claim payment or has been denied payment and all GFE not returned to the Government upon completion of the contract. This includes, but is not limited to, rejects and overruns. Contract excess property  (whether title to the property is in the Government or not) includes completed or partially completed parts, components,  subassemblies,  assemblies, end items, special tools and test equipment, and all associated technical manuals, technical data, packaging and labeling. Contract excess property shall be controlled and final disposition determined by assigned demil code unless waived by the DoD Demil PM.

 

B. Excess GFE is equipment/technical data provided by the U. S. Goverrrment to the Contractor that the Contractor no longer needs to satisfy the contracts requirements, which the Government does not want returned during or at the completion of the contract.

 

C. Demilitarization is the act of destroying the military offensive and defensive characteristics  inherent in certain types of equipment and material to the degree necessary to preclude its restoration to a usable condition.\-The  term includes mutilation,  dumping at sea, cutting, crushing, shredding, melting, burning or alteration designed to prevent the further use of this equipment and material for its originally  intended military purpose. It applies equally to material in unserviceable  and serviceable condition.

 

D. Scrap is material that has no value except for its basic material content.

 

E. Munitions list item (MLI) is any item contained in the U. S. Munitions List, 22 CFR 120-130.

 

F. Commerce control list item (CCLI) is a multi-use  (military, commercial and other strategic use) item under the jurisdiction of the Bureau of Export Administration,  U. S. Department of Commerce, through the Export Administration  Regulations,  15 CFR 730-774. The types of items on the CCL may be commodities  (i. e., equipment, materials,  electronics),  software, or a particular technology.

 

G. Trade security control  (TSC) is control procedures designed to preclude the sale or shipment of Munitions List or Commerce Control List items to any entity whose interests are inimical to those of the United States.  These controls are also applicable  to such other selected entities as may be designated by the Deputy Under Secretary of Defense  (Trade Security Policy).

 

  

  

  

 

	
CONTINUATION SHEET

	
Reference No. of Document Being Continued

	
  Page  22 of 36

	 	 	 
	  	
PIIN/SIIN    SPRDLl-12-C-0023                     MOD/AMD

	  

Name of Offeror or Contractor:  OPTEX SYSTEMS, INC.

  

H. Commercial type property is material, equipment, software, or technology not generally considered  to be unique and peculiar to DoD and possessing commercial marketability.

I. Significant military equipment  (SME) is material for which special export controls are warranted because of their capacity for substantial military utility or capability. Items designated as SME require worldwide demil as prescribed  in DoD 4160.21-M-1,  Demil and TSCs Manual, appendix 4.

J. Ammunition,  explosives, and dangerous articles  (AEDA) is any substance that by its composition and chemical characteristics, alone or when combined with another substance, is or becomes an explosive or propellant or is hazardous or dangerous to personnel, animal or plant-life,  structures, equipment or the environment as a result of blast, fire, fragment, radiological or toxic effects.  AEDA is not a criterion for demil.  AEDA items not on the Munitions List would be coded A or Q.

III. Applicability:

 

This solicitation/contract is for the production of MLis or CCLis and contract excess may require demil and TSCs. This clause is applicable to prime and Subcontractors.

 

IV. Contractor Demil and TSCs:

 

A. The Contractor will demil and apply TSCs as required on all contract excess property as dictated by the Government assigned demil code and its definition and the demilitarization and trade security controls matrix in paragraph IX of this clause. Demil codes and definitions can be accessed per paragraph VIII of this clause.

 

B. The Contractor will contact the PCO for declassification, safety and demil instructions  for contract excess property with an assigned demil code of  P, F, or G.

 

C. The Contractor will demil all associated excess technical data. 

 

V. Demil Certification and Verification  (DC&V):

 

A. During or upon completion of manufacturing  under this contract, the prime Contractor shall notify the PCO in a timely manner that a Goverrrment representative  is required to witness demil of contract excess property produced under this contract whether the prime Contractor or a Subcontractor  is performing the demil.

 

B. Subcontractors  shall notify the prime Contractor in a timely manner who shall notify the PCO that a Goverrrment representative  is required to witness demil of contract excess property produced under this contract.

 

C. The Goverrrment Quality Assurance Representative  (QAR) will forward all demil certificates and the final DD Form 250 to the PCO so that final payment can be made.  The PCO will not release the final DD Form 250 for payment unless all pertinent demilitarization certificates  from all prime and subcontractors  involved have been received. If the Contractor  is using the Wide Area Workflow  (WAWF) Receipt-Acceptance system, the QAR will ensure all demil certificates  are attached to the final WAWF Receiving Report before accepting the shipment. The Demil Certification and Verification  Certificate will become part of the contract file.

 

D. A Contractors  representative  certifies and a technically qualified U.S. Government QAR (United States citizen) is designated as the U.S. Government official responsible for executing the Demil verification unless another U.S. Government official is designated ln writing by the PCO. Both shall actually witness the demil; and both shall sign and date the DA Form 7579 available at http://www.apd.army mil/.

 

VI. Demil Waivers:

 

A. The Contractor may request a demil waiver for contractual requirements. However, any waiver must be predicated upon disposition of material in a manner that is consistent with the guidelines and intent of applicable demil and TSC laws and regulations.  All requests for demil waivers must be submitted in writing through the PCO and the Armys Demil PM to the DoD Demil PM. Waiver request must be approved prior to Contractor disposition of any contract excess property and prior to the release of final DD Form 250 for payment. All waiver requests must specify the items, quantity, proposed disposition of the material, and any additional terms. If written approval of the request for a demil waiver is not granted within 45 days of submission, the demil request shall be deemed disapproved.   The Contractor is not entitled to demil waiver. Contact the PCO for additional specific guidance.

 

B. When a demil waiver is approved, all packaging and Government property containing non-removable markings shall have these markings permanently obliterated before any non-demilitarized disposition.

 

VII. Disputes- any disputes concerning  this clause shall be addressed in accordance with the Disputes clause in this solicitation/contract.

 

VIII. Contractor Access and Identification  of Demilitarization Requirements:

 

  

  

  

 

	
CONTINUATION SHEET

	
Reference No. of Document Being Continued

	
  Page  23 of 36

	 	 	 
	  	
PIIN/SIIN    SPRDLl-12-C-0023                     MOD/AMD

	  

Name of Offeror or Contractor:  OPTEX SYSTEMS, INC.

  

A. Contractors will identify demilitarization requirements by accessing the assigned demilitarization code via the Internet using the following steps:

 

1.  Logon to Army Electronic Product Support (AEPS) Website https://aeps.ria.army.mil/. This displays the U.S. Army Materiel Command Army Electronic Product Support Website entrance portal.

2.  Click on Accept. This displays the Public Applications page.

3.  If you have an AEPS account, go to step 4 below. First time users, click on How to Enter AEPS and then follow instructions  for Goverrrment Contractors  to establish an AEPS account.

4.  Click on Enter AEPS and enter your UseriD and Password.

5.  Under Popular Applications,  click on Contractor Demil Code Query which displays an interactive searchable database containing all part numbers that have been assigned a National Stock Number (NSN) in the FLIS.

6.  Click on the icon Demilitarization Code Definitions provided on this web page. Print these definitions  for future reference and close the screen.

 

B. The Contractors demilitarization requirement:

 

1.  The Contractors demilitarization requirement is based on the demilitarization code (A, B, C, D, E, F, G, P or Q) assigned to the property and its corresponding  definition.

2.  Identify the current demilitarization code assigned by entering the part number (PIN) or National Item Identification  Number (NIIN) of the property in question and click on Enter.

 

Note: If an NSN has NOT been assigned to the property in question, the demilitarization code for the property is not in this database. Contact the PCO for the demilitarization requirements  for property if the demilitarization code could not be identified in this database.

 

3.  Result will be the current demilitarization code.  Match the demilitarization code with its definition.  Demilitarize excess property ln accordance with the demilitarization code definition.

 

C. Due to numerous variables, the Goverrrment may not know which disposal option is most advantageous  for GFE until the end of the contract.  Three GFE disposal options available to the Government are:

 

Option 1:

1.  Have the Contractor demilitarize  the excess GFE per the assigned demilitarization code.

2.  The cost of Contractor demilitarization will be negotiated.

3.  The PCO will provide the Contractor with the pertinent demilitarization instructions  for property without codes assigned.

4.  The PCO will ensure that demilitarization certification and verification  is properly documented.

Option 2:

1.  Abandon or sell the excess GFE and transfer the title to the Contractor.

2.  Prior to the Government transferring  the title of demilitarized  or un-demilitarized excess GFE and regardless of its serviceability,  all TSC laws must be satisfied.  Therefore, the Contractor must be in possesslon of an approved end use certificate (EUC), DLA Form 1822, before the Goverrrment transfers title to the property.

3.  The EUC is the U.S. Government's instrument to ensure the Contractor is aware of and agrees to assume the responsibility  for future TSC requirements and demilitarization cost and liabilities for the excess GFE.  The demilitarization and TSC requirements  for MLI/CCLE do not diminish over time.  For complete TSC requirements,  see paragraph IX of this clause and DoD 4160.21-M-1, Demilitarization and TSCs Manual.

4.  Contractors and other persons must obtain the permission of the PCO prior to any subsequent disposition or sale.  Any subsequent disposition or sale will be accomplished  in accordance with DoD 4160.21-M-1,  Demilitarization and TSCs Manual.

 

Option 3:

The Contractor returns excess GFE to the Government's control for disposal and the Government ensures adequate disposal occurs per DoD 4160.21-M-1,  Demilitarization and TSCs Manual.

IX. Demilitarization and Trade Security Controls Matrix

	
T  l  J

	
lli   ri   i  _@Q   Q  lli   ri   i  _@Q

	
liY   Q  §  g  QL

	  	
g g -  lii   k-    lri

	  

 

	  	 	
Demil Code

	 	
Demil Req'd

	 	
No Demil Req'd

	 	
TSC Required

	
Non-MLI/or Non-CCLI

	 	
A Commercial

	 	  	 	
X

	 	  
	
MLI-Non-SME

	 	
B

	 	  	 	
X

	 	
X EUC DLA Form 1822

	
MLI/SME

	 	
C

	 	
X

	 	  	 	
X EUC DLA Form 1822

	
MLI/SME

	 	
D

	 	
X

	 	  	 	
X EUC DLA Form 1822

	
MLI/Non-SME

	 	
E

	 	
X

	 	  	 	
X EUC DLA Form 1822

	
MLI/SME

	 	
F

	 	
X

	 	  	 	
X EUC DLA Form 1822

	
MLISME

	 	
G

	 	
X

	 	  	 	
X EUC DLA Form 1822

	
MLI/SME

	 	
P

	 	
X

	 	  	 	
X EUC DLA Form 1822

	
EAR/CCLI

	 	
Q Dual Use/Commercial

	 	  	 	
X

	 	
X EUC DLA Form 1822

	
HS7144

	 	  	 	  	 	  	 	  

 

(End of clause)

 

  

  

  

 

	
CONTINUATION SHEET

	
Reference No. of Document Being Continued

	
  Page  24 of 36

	 	 	 
	 	
PIIN/SIIN    SPRDLl-12-C-0023                     MOD/AMD

	  

Name of Offeror or Contractor:  OPTEX SYSTEMS, INC.

SECTION I - CONTRACT CLAUSES

	 	g            LQli 	

--------------------------------------------- ill ---------------------------------------------

	
---- 1 ----

	
I-1

	
52.202-1

	
DEFINITIONS

	
JUL/2004

	
I-2

	
52.203-3

	
GRATUITIES

	
APR/1984

	
I-3

	
52.203-5

	
COVENANT AGAINST CONTINGENT FEES

	
APR/1984

	
I-4

	
52.203-6

	
RESTRICTIONS ON SUBCONTRACTOR SALES TO THE GOVERNMENT

	
SEP/2006

	
I-5

	
52.203-7

	
ANTI-KICKBACK PROCEDURES

	
OCT/2010

	
I- 6

	
52.203-8

	
CANCELLATION, RECISSION, AND RECOVERY OF FUNDS FOR ILLEGAL OR IMPROPER ACTIVITY

	
JAN/1997

	
I-7

	
52.203-10

	
PRICE OR FEE ADJUSTMENT FOR ILLEGAL OR IMPROPER ACTIVITY

	
JAN/1997

	
I- 8

	
52.203-12

	
LIMITATION ON PAYMENTS TO INFLUENCE CERTAIN FEDERAL TRANSACTIONS

	
OCT/2010

	
I- 9

	
52.204-4

	
PRINTED OR COPIED DOUBLE-SIDED ON RECYCLED PAPER

	
AUG/2000

	
I-10

	
52.204-7

	
CENTRAL CONTRACTOR REGISTRATION

	
APR/2008

	
I-11

	
52.204-10

	
REPORTING EXECUTIVE COMPENSATION AND FIRST-TIER SUBCONTRACT AWARDS

	
JUL/2010

	
I-12

	
52.209-6

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

	
DEC/2010

	
I-13

	
52.211-5

	
MATERIAL REQUIREMENTS

	
AUG/2000

	
I-14

	
52.211-15

	
DEFENSE PRIORITY AND ALLOCATION REQUIREMENTS

	
APR/2008

	
I-15

	
52.215-2

	
AUDIT AND RECORDS--NEGOTIATIONS

	
OCT/2010

	
I-16

	
52.215-8

	
ORDER OF PRECEDENCE--UNIFORM CONTRACT FORMAT

	
OCT/1997

	
I -17

	
52.215-10

	
PRICE REDUCTION FOR DEFECTIVE CERTIFIED COST OR PRICING DATA

	
AUG/2011

	
I -18

	
52.215-12

	
SUBCONTRACTOR CERTIFIED COST OR PRICING DATA

	
OCT/2010

	
I-19

	
52.215-14

	
INTEGRITY OF UlHT PRICES

	
OCT/2010

	
I -2 0

	
52.215-15

	
PENSION ADJUSTMENTS AND ASSET REVERSIONS

	
OCT/2010

	
I -21

	
52.215-18

	
REVERSION OR ADJUSTMENT OF PLANS FOR POSTRETIREMENT BENEFITS (PRE) OTHER THAN PENSIONS

	
JUL/2005

	
I -22

	
52.215-23

	
LIMITATIONS ON PASS-THROUGH CHARGES

	
OCT/2009

	
I -23

	
52.219-8

	
UTILIZATION OF SMALL BUSINESS CONCERNS

	
JAN/2011

	
I -24

	
52.222-1

	
NOTICE TO THE GOVERNMENT OF LABOR DISPUTES

	
FEB/1997

	
I -25

	
52.222-19

	
CHILD LABOR--COOPERATION WITH AUTHORITIES AND REMEDIES

	
JUL/2010

	
I -2 6

	
52.222-20

	
WALSH-HEALEY PUBLIC CONTRACTS ACT

	
OCT/2010

	
I -2 7

	
52.222-21

	
PROHIBITION OF SEGREGATED FACILITIES

	
FEB/1999

	
I -2 8

	
52.222-26

	
EQUAL OPPORTUNITY

	
MAR/2007

	
I -2 9

	
52.222-35

	
EQUAL OPPORTUNITY FOR VETERANS

	
SEP/2010

	
I -3 0

	
52.222-36

	
AFFIRMATIVE ACTION FOR WORKERS WITH DISABILITIES

	
OCT/2010

	
I -31

	
52.222-37

	
EMPLOYMENT REPORTS ON VETERANS

	
SEP/2010

	
I -32

	
52.222-40

	
NOTIFICATION OF EMPLOYEE RIGHTS UNDER THE NATIONAL LABOR RELATIONS ACT

	
DEC/2010

	
I -33

	
52.222-50

	
COMBATING TRAFFICKING IN PERSONS

	
FEB/2009

	
I -34

	
52.222-54

	
EMPLOYMENT ELIGIBILITY VERIFICATION

	
JAN/2009

	
I -35

	
52.223-6

	
DRUG-FREE WORKPLACE

	
MAY/2001

	
I -3 6

	
52.223-14

	
TOXIC CHEMICAL RELEASE REPORTING

	
AUG/2003

	
I -3 7

	
52.223-18

	
CONTRACTOR POLICY TO BAN TEXT MESSAGING WHILE DRIVING

	
SEP/2010

	
I -3 8

	
52.225-13

	
RESTRICTIONS ON CERTAIN FOREIGN PURCHASES

	
JUN/2008

	
I -3 9

	
52.227-1

	
AUTHORIZATION AND CONSENT

	
DEC/2007

	
I-40

	
52.227-2

	
NOTICE AND ASSISTANCE REGARDING PATENT AND COPYRIGHT INFRINGEMENT

	
DEC/2007

	
I-41

	
52.229-3

	
FEDERAL, STATE, AND LOCAL TAXES

	
APR/2003

	
I-42

	
52.232-1

	
PAYMENTS

	
APR/1984

	
I-43

	
52.232-8

	
DISCOUNTS FOR PROMPT PAYMENT

	
FEB/2002

	
I-44

	
52.232-11

	
EXTRAS

	
APR/1984

	
I-45

	
52.232-17

	
INTEREST

	
OCT/2010

	
I-46

	
52.232-23

	
ASSIGNMENT OF CLAIMS (JAN 1986) -- ALTERNATE (APR 1984)

	
APR/1984

	
I -4 7

	
52.232-25

	
PROMPT PAYMENT

	
OCT/2008

	
I -48

	
52.232-33

	
PAYMENT BY ELECTRONIC FUNDS TRANSFER--CENTRAL CONTRACTOR REGISTRATION

	
OCT/2003

	
I-49

	
52.233-1

	
DISPUTES

	
JUL/2002

	
I-50

	
52.233-3

	
PROTEST AFTER AWARD

	
AUG/1996

	
I -51

	
52.233-4

	
APPLICABLE LAW FOR BREACH OF CONTRACT CLAIM

	
OCT/2004

	
I -52

	
52.242-13

	
BANKRUPTCY

	
JUL/1995

	
I -53

	
52.243-1

	
CHANGES--FIXED PRICE

	
AUG/1987

	
I -54

	
52.244-5

	
COMPETITION IN SUBCONTRACTING

	
DEC/1996

	
I -55

	
52.244-6

	
SUBCONTRACTS FOR COMMERCIAL ITEMS

	
DEC/2010

	
I-56

	
52.246-23

	
LIMITATION OF LIABILITY

	
FEB/1997

	
I-57

	
52.247-63

	
PREFERENCE FOR U.S.-FLAG AIR CARRIERS

	
JUN/2003

	
I-58

	
52.247-68

	
REPORT OF SHIPMENT (REPSHIP)

	
FEB/2006

 

  

  

  

 

	
CONTINUATION SHEET

	
Reference No. of Document Being Continued

	
  Page  25 of 36

	 	 	 
	  	
PIIN/SIIN    SPRDLl-12-C-0023                     MOD/AMD

	  

Name of Offeror or Contractor:  OPTEX SYSTEMS, INC.

 

	 	g            LQli 	
--------------------------------------------- ill ---------------------------------------------

	
---- 1 ----

	
I-59

	
52.248-1

	
VALUE ENGINEERING

	
OCT/2010

	
I-60

	
52.249-2

	
TERMINATION FOR CONVENIENCE OF THE GOVERNMENT (FIXED-PRICE)

	
MAY/2004

	
I-61

	
52.249-8

	
DEFAULT (FIXED-PRICE SUPPLY AND SERVICE)

	
APR/1984

	
I-62

	
52.253-1

	
COMPUTER GENERATED FORMS

	
JAN/1991

	
I-63

	
252.203-7000

	
REQUIREMENTS RELATING TO COMPENSATION OF FORMER DOD OFFICIALS

	
JAN/2009

	
I-64

	
252.203-7001

	
PROHIBITION ON PERSONS CONVICTED OF FRAUD OR OTHER DEFENSE-CONTRACT- RELATED FELONIES

	
DEC/2008

	
I-65

	
252.203-7002

	
REQUIREMENT TO INFORM EMPLOYEES OF WHISTLEBLOWER RIGHTS

	
JAN/2009

	
I-66

	
252.204-7000

	
DISCLOSURE OF INFORMATION

	
DEC/1991

	
I -6 7

	
252.204-7003

	
CONTROL OF GOVERNMENT PERSONNEL WORK PRODUCT

	
APR/1992

	
I -6 8

	
252.204-7006

	
BILLING INSTRUCTIONS

	
OCT/2005

	
I-69

	
252.204-7008

	
EXPORT-CONTROLLED ITEMS

	
APR/2010

	
I-70

	
252.205-7000

	
PROVISION OF INFORMATION TO COOPERATIVE AGREEMENT HOLDERS

	
DEC/1991

	
I-71

	
252.209-7004

	
SUBCONTRACTING WITH FIRMS THAT ARE OWNED OR CONTROLLED BY THE GOVERNMENT OF A TERRORIST COUNTRY

	
DEC/2006

	
I-72

	
252.215-7000

	
PRICING ADJUSTMENTS

	
DEC/1991

	
I-73

	
252.215-7002

	
COST ESTIMATING SYSTEM REQUIREMENTS

	
MAY/2011

	
I-74

	
252.225-7001

	
BUY AMERICAN ACT AND BALANCE OF PAYMENTS PROGRAM

	
JAN/2009

	
I-75

	
252.225-7002

	
QUALIFYING COUNTRY SOURCES AS SUBCONTRACTORS

	
APR/2003

	
I-76

	
252.225-7006

	
QUARTERLY REPORTING OF ACTUAL CONTRACT PERFORMANCE OUTSIDE THE UNITED STATES

	
OCT/2010

	
I-77

	
252.225-7007

	
PROHIBITION ON ACQUISITION OF UNITED STATES MUNITIONS LIST ITEMS FROM COMMUNIST CHINESE MILITARY COMPANIES

	
SEP/2006

	
I-78

	
252.225-7009

	
RESTRICTION ON ACQUISITION OF CERTAIN ARTICLES CONTAINING SPECIALTY METALS

	
JAN/2011

	
I-79

	
252.225-7012

	
PREFERENCE FOR CERTAIN DOMESTIC COMMODITIES

	
JUN/2010

	
I-80

	
252.225-7013

	
DUTY-FREE ENTRY

	
DEC/2009

	
I-81

	
252.225-7015

	
RESTRICTION ON ACQUISITION OF HAND OR MEASURING TOOLS

	
JUN/2005

	
I-82

	
252.225-7016

	
RESTRICTION ON ACQUISITION OF BALL AND ROLLER BEARINGS

	
DEC/2010

	
I-83

	
252.225-7025

	
RESTRICTION ON ACQUISITION OF FORGINGS

	
DEC/2009

	
I-84

	
252.225-7033

	
WAIVER OF UNITED KINGDOM LEVIES

	
APR/2003

	
I-85

	
252.225-7041

	
CORRESPONDENCE IN ENGLISH

	
JUN/1997

	
I-86

	
252.226-7001

	
UTILIZATION OF INDIAN ORGANIZATIONS, INDIAN-OWNED ECONOMIC ENTERPRISES, AND NATIVE HAWAIIAN SMALL BUSINESS CONCERNS

	
SEP/2004

	
I-87

	
252.227-7013

	
RIGHTS IN TECHNICAL DATA--NONCOMMERCIAL ITEMS

	
MAR/2011

	
I-88

	
252.227-7037

	
VALIDATION OF RESTRICTIVE MARKINGS ON TECHNICAL DATA

	
SEP/1999

	
I-89

	
252.231-7000

	
SUPPLEMENTAL COST PRINCIPLES

	
DEC/1991

	
I-90

	
252.232-7003

	
ELECTRONIC SUBMISSION OF PAYMENT REQUESTS AND RECEIVING REPORTS

	
MAR/2008

	
I-91

	
252.232-7010

	
LEVIES ON CONTRACT PAYMENTS

	
DEC/2006

	
I-92

	
252.243-7001

	
PRICING OF CONTRACT MODIFICATIONS

	
DEC/1991

	
I-93

	
252.243-7002

	
REQUESTS FOR EQUITABLE ADJUSTMENT

	
MAR/1998

	
I-94

	
252.244-7000

	
SUBCONTRACTS FOR COMMERCIAL ITEMS AND COMMERCIAL COMPONENTS (DOD CONTRACTS)

	
NOV/2010

	
I-95

	
252.246-7000

	
MATERIAL INSPECTION AND RECEIVING REPORT

	
MAR/2008

	
I-96

	
252.246-7001

	
WARRANTY OF DATA

	
DEC/1991

	
I -9 7

	
252.246-7003

	
NOTIFICATION OF POTENTIAL SAFETY ISSUES

	
JAN/2007

	
I -9 8

	
252.247-7003

	
PASS-THROUGH OF MOTOR CARRIER FUEL SURCHARGE ADJUSTMENT TO THE COST BEARER

	
SEP/2010

	
I-99

	
252.247-7023

	
TRANSPORTATION OF SUPPLIES BY SEA

	
MAY/2002

	
I-100

	
52.209-3

	
FIRST ARTICLE APPROVAL -- CONTRACTOR TESTING (SEP 1989) -- ALTERNATE (JAN 1997) AND ALTERNATE II (SEP 1989)

	
SEP/1989

 

(a) The Contractor  shall test two (2) unit(s) of Lot/Item PN 9377820-2 as specified in this contract. At least 15 calendar days before the beginning of first article tests, the Contractor shall notify the Contracting Officer, in writing, of the time and location of the testing so that the Government may witness the tests.

 

(b) The Contractor  shall submit the first article test report within (see Schedule B) calendar days from the date of this contract to Contracting Officer morris.belleville@us.army.mil marked First Article Test Report: Contract No. _______________________ , Lot/Item No                            Within 30 calendar days after the Goverrrment receives the test report, the Contracting Officer shall notify the Contractor,  in writing, of the conditional approval, approval, or disapproval of the first article. The notice of conditional approval or approval shall not relieve the Contractor from complying with all requirements of the specifications  and all other terms and conditions of this contract. A notice of conditional approval shall state any further action required of the Contractor. A notice of disapproval  shall cite reasons  for the disapproval.

 

  

  

  

 

	
CONTINUATION SHEET

	
Reference No. of Document Being Continued

	
  Page  26 of 36

	 	 	 
	  	
PIIN/SIIN    SPRDLl-12-C-0023                     MOD/AMD

	  

Name of Offeror or Contractor:  OPTEX SYSTEMS, INC.

 

(c)  If  the  first article is disapproved,  the Contractor,  upon  Government  request,  shall  repeat  any or all  first  article tests.  After each request for additional tests, the Contractor shall make any necessary changes, modifications,  or repairs to the first article or select another first article for testing. All costs related to these tests are to be borne by the Contractor,  including any and all costs for additional tests following a disapproval.  The Contractor  shall then conduct the tests and deliver another report to the Goverrrment under the terms and conditions and within the time specified by the Government. The Government  shall take action on this report within the time specified ln paragraph  (b) above. The Government reserves the right to requlre an equitable adjustment of the contract price for any extension of the delivery schedule, or for any additional costs to the Government related to these tests.

 

(d) If the Contractor  fails to deliver any first article report on time, or the Contracting Officer disapproves any first article, the Contractor shall be deemed to have failed to make delivery within the meaning of the Default clause of this contract.

 

(e) Unless otherwise provided in the contract, and if the approved first article lS not consumed or destroyed in testing, the Contractor may deliver the approved first article as part of the contract quantity if it meets all contract requirements for acceptance.

 

(f) If the Government does not act within the time specified in paragraph  (b) or (c) above, the Contracting Officer shall, upon timely written request from the Contractor, equitably adjust under the changes clause of this contract the delivery or performance dates and/or the contract price, and any other contractual  term affected by the delay.

 

(g) Before first article approval, the Contracting Officer may, by written authorization,  authorize the Contractor  to acqulre specific materials or components or to commence production to the extent essential to meet the delivery schedules. Until first article approval is granted, only costs for the first article and costs incurred under this authorization are allocable to this contract for

 

(1) progress payments, or

 

(2) termination settlements if the contract is terminated for the convenience of the Goverrrment. If first article tests reveal deviations from contract requirements,  the Contractor shall, at the location designated by the Government, make the required changes or replace all items produced under this contract at no change in the contract price.

 

(h) The Government may waive the requirement for first article approval test where supplies identical or similar to those called for in the schedule have been previously  furnished by the offeror/contractor and have been accepted by the Government. The offeror/contractor may request a waiver.

 

(i) The Contractor  shall produce both the first article and the production quantity at the same facility.

 

(End of Clause)

 

	
I-101

	
52.223-7

	
NOTICE OF RADIOACTIVE  MATERIALS

	
JAJ:\f/1997

 

(a) The Contractor  shall notify the Contracting Officer or designee, in writing, 60 days prior to the delivery of, or prior to completion of any servicing required by this contract of, items containing either

 

(1) radioactive material requiring specific licensing under the regulations issued pursuant to the Atomic Energy Act of 1954, as amended, as set forth in Title 10 of the Code of Federal Regulations,  in effect on the date of this contract, or

 

(2) other radioactive material not requiring specific licensing in which the specific activity is greater than 0.002 microcuries per gram or the activity per item equals or exceeds 0.01 mlcrocurles.

 

Such notice shall specify the part or parts of the items which contain radioactive materials, a description of the materials, the name and activity of the isotope, the manufacturer  of the materials,  and any other information known to the Contractor which will put users of the items on notice as to the hazards involved (OMB No. 9000-0107).

 

(b) If there has been no change affecting the quantity of activity, or the characteristics  and composition of the radioactive material from deliveries under this contract or prior contracts, the Contractor may request that the Contracting Officer or designee waive the notice requirement ln paragraph  (a) of this clause. Any such request shall

 

(1) Be submitted in writing;

 

(2) State that the quantity of activity, characteristics, and composition of the radioactive material have not changed; and

 

(3) Cite the contract number on which the prior notification was submitted and the contracting office to which it was submitted.

 

  

  

  

 

	
CONTINUATION SHEET

	
Reference No. of Document Being Continued

	
  Page  27 of 36

	 	 	 
	  	
PIIN/SIIN    SPRDLl-12-C-0023                     MOD/AMD

	  

Name of Offeror or Contractor:  OPTEX SYSTEMS, INC.

  

(c) All items, parts, or subassemblies which contain radioactive materials in which the specific activity is greater than 0.002 microcuries per gram or activity per item equals or exceeds 0.01 microcuries,  and all containers  in which such items, parts or subassemblies are delivered to the Government  shall be clearly marked and labeled as required by the latest revision of MIL-STD 129 in effect on the date of the contract.

 

(d) This clause, including this paragraph  (d), shall be inserted in all subcontracts  for radioactive materials meeting the criteria in paragraph  (a) of this clause.

 

(e) Procurement Contracting Officer (PCO) Instructions:

 

Notice of Radioactive  Materials containing Tritium (H3), Americium  (AM241), Nickel-63  (NI63): In accordance with (IAW) FAR 52.223-7(a), the "designee" to notify is the licensee, Mr. Thomas Gizicki, TACOM-LCMC, AMSTA-CSC-ZR,  COM (309) 782-2965/6499, DSN 793-2965/6499, email: thomas.gizicki@us.amy.mil (NRC license BML 12-00722-06).

Address:

U. S. Amy TACOM Life Cycle Management Command

Safety Office, ATTN: AMSTA-CSC-ZR

1 Rock Island Arsenal

Rock Island, IL  61299-7630

 

Notice of Radioactive  Materials containing Thorium Fluoride coatings  (ThF): IAW FAR 52.223-7(a),  the "designee" to notify is the licensee, Mr. Craig Goldberg, Director for Safety, CECOM-LCMC, AMSEL-SF-R,  COM (732) 427-7454, DSN 987-7454, email: craig.goldberg@us.army.mil (NRC license BML 29-01022-14).

Address:

U. S. Amy CECOM Life Cycle Management Command 

Directorate  for Safety (DS), ATTN: AMSEL-SF 

Building 2539, Laboratory Road, Charles Wood Area 

Fort Monmouth, New Jersey 07703-5024

 

Licenses, Authorizations  and Permits: The procuring contracting officer (PCO) shall ensure that the apparently successful offeror has a valid Nuclear Regulatory  Commission  (NRC) or Agreement State License.  Exceptions  for a license lS as follows:

Government-Owned, Contractor-Operated (GOCO) facilities: The PCO shall ensure that the apparent successful offeror is made aware of the scope of work if it involves radioactive government  furnished  equipment  (GFE).  If offeror perfoms the work on government property involving GFE they will be required to comply with the applicable NRC license conditions (either government's  license or contractor's  license).

Non-Army agencies  (including other military services, vendors, and civilian contractors) require an Amy Radiation Pemit to use, store, or possess ionizing radiation sources on an Amy installation  (AR 385-10 and 32 CFR 655.10).   (For the purpose of this paragraph,  ionizing radiation source means any source that, if held or owned by an Amy organization, would requlre a specific Nuclear Regulatory Commission license or Amy Radiation Authorization (ARA) .)

 

(End of Clause)

 

	
I-102

	
52.209-9

	
UPDATES OF PUBLICLY AVAILABLE INFORMATION REGARDING RESPONSIBILITY MATTERS

	
JAN"/2011

 

(a) The Contractor  shall update the information ln the Federal Awardee Performance and Integrity Infomation System (FAPIIS) on a semi­ annual basis, throughout the life of the contract, by posting the required information in the Central Contractor Registration  database at http://www.ccr.gov.

 

(b)(1) The Contractor will receive notification when the Goverrrment posts new information to the Contractor's  record.

 

(2) The Contractor will have an opportunity  to post comments regarding infomation that has been posted by the Government. The comments will be retained as long as the associated  infomation is retained, i.e., for a total period of 6 years. Contractor comments will remain a part of the record unless the Contractor  revlses them.

 

(3)(i) Public requests for system information posted prior to April 15, 2011, will be handled under Freedom of Information Act procedures,  including, where appropriate, procedures promulgated under E.O. 12600.

 

  

  

  

 

	
CONTINUATION SHEET

	
Reference No. of Document Being Continued

	
  Page  28 of 36

	 	 	 
	  	
PIIN/SIIN    SPRDLl-12-C-0023                     MOD/AMD

	  

Name of Offeror or Contractor:  OPTEX SYSTEMS, INC.

  

(ii) As required by section 3010 of Public Law 111-212, all information posted in FAPIIS on or after April 15, 2011, except past performance revlews, will be publicly available.

 

(End of  clause)

 

	
I-103

	
52.215-19

	
NOTIFICATION  OF OWNERSHIP CHANGES

	
OCT/1997

 

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

 

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

 

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

 

(b) The Contractor  shall —

 

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

 

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

 

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

 

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

 

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

 

(End of Clause)

	
I-104

	
52.219-4

	
NOTICE OF PRICE EVALUATION PREFERENCE FOR HUBZONE SMALL BUSINESS CONCERNS

	
JAN"/2011

 

(a) Definition.   See 13 CFR 125.6(e) for definitions of terms used in paragraph  (d). 

 

(b) Evaluation preference. 

 

(1) Offers will be evaluated by adding a factor of 10 percent to the price of all offers, except

 

(i) Offers from HUBZone small business concerns that have not waived the evaluation preference;  and

 

(ii) Otherwise successful offers from small business concerns.

 

(2) The factor of 10 percent shall be applied on a line item basis or to any group of items on which award may be made. Other evaluation factors described in the solicitation  shall be applied before application of the factor.

 

(3) A concern that is both a HUBZone small business concern and a small disadvantaged  business concern will receive the benefit of both the HUBZone small business price evaluation preference and the small disadvantaged  business price evaluation adjustment  (see FAR clause 52.219-23). Each applicable price evaluation preference or adjustment shall be calculated  independently against an offerors base offer. These individual preference amounts shall be added together to arrive at the total evaluated price for that offer.

 

(4) When the two highest rated offerors are a HUBZone small business concern and a large business, and the evaluated offer of the HUBZone small business concern is equal to the evaluated offer of the large business after considering  the price evaluation preference, award will be made to the HUBZone small business concern.

 

  

  

  

	
  

	
Reference No. of Document Being Continued

	
Page 29 of 36

	CONTINUATION SHEET	 	 	 
	  	
PIIN/SIIN   SPRDLl-12-C-0023

	
MOD/AMD

	  
	
Name of Offeror or Contractor:   OPTEX SYSTEMS, INC.

(c) Waiver of evaluation preference. A HUBZone small business concern may elect to waive the evaluation preference, in which case the factor will be added to its offer for evaluation purposes. The agreements in paragraphs (d) and (e) of this clause do not apply if the offeror has waived the evaluation preference.

 

Offer elects to waive the evaluation preference.

 

(d) Agreement. A HUBZone small business concern agrees that in the performance of the contract, in the case of a contract for

 

(1) Services (except construction), at least 50 percent of the cost of personnel for contract performance will be spent for employees of the concern or employees of other HUBZone small business concerns;

 

(2) Supplies (other than procurement from a nonmanufacturer of such supplies), at least 50 percent of the cost of manufacturing, excluding the cost of materials, will be performed by the concern or other HUBZone small business concerns;

 

(3) General construction. (i) At least 15 percent of the cost of contract performance to be incurred for personnel will be spent on the prime contractor's employees;

 

(ii) At least 50 percent of the cost of the contract performance to be incurred for personnel will be spent on the prlme contractor's employees or on a combination of the prime contractor's employees and employees of HUBZone small business concern subcontractors;

 

(iii) No more than 50 percent of the cost of contract performance to be incurred for personnel will be subcontracted to concerns that are not HUBZone small business concerns; or

 

(4) Construction by special trade contractors. (i) At least 25 percent of the cost of contract performance to be incurred for personnel will be spent on the prime contractor's employees;

(ii) At least 50 percent of the cost of the contract performance to be incurred for personnel will be spent on the prlme contractor's employees or on a combination of the prime contractor's employees and employees of HUBZone small business concern subcontractors;

 

(iii) No more than 50 percent of the cost of contract performance to be incurred for personnel will be subcontracted to concerns that are not HUBZone small business concerns.

(e) A HUBZone joint venture agrees that the aggregate of the HUBZone small business concerns to the joint venture, not each concern separately, will perform the applicable percentage of work requirements.

 

(f)(1) When the total value of the contract exceeds $25,000, a HUBZone small business concern nonmanufacturer agrees to furnish in performing this contract only end items manufactured or produced by HUBZone small business concern manufacturers.

 

(2) When the total value of the contract is equal to or less than $25,000, a HUBZone small business concern nonmanufacturer may provide end items manufactured by other than a HUBZone small business concern manufacturer provided the end items are produced or manufactured in the United States.

 

(3) Paragraphs (f)(1) and (f)(2) of this section do not apply in connection with construction or service contracts.

 

(g) Notice. The HUBZone small business offeror acknowledges that a prospective HUBZone awardee must be a HUBZone small business concern at the time of award of this contract. The HUBZone offeror shall provide the Contracting Officer a copy of the notice required by 13 CFR 126.501 if material changes occur before contract award that could affect its HUBZone eligibility. If the apparently successful HUBZone offeror is not a HUBZone small business concern at the time of award of this contract, the Contracting Officer will proceed to award to the next otherwise successful HUBZone small business concern or other offeror.

(End of clause)

 

	I-105	52.219-28	POST-AWARD SMALL BUSINESS PROGRAM REREPRESENTATION	APR/2009

 

(a) Definitions. As used ln this clause—

 

"Long-term contract" means a contract of more than five years in duration, including options. However, the term does not include contracts that exceed five years in duration because the period of performance has been extended for a cumulative period not to exceed six months under the clause at 52.217-8, Option to Extend Services, or other appropriate authority.

 

  

  

  

 

	
  

	
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PIIN/SIIN   SPRDLl-12-C-0023

	
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Name of Offeror or Contractor:   OPTEX SYSTEMS, INC.

"Small business concern" means a concern, including its affiliates, that is independently owned and operated, not dominant in thefield of operation in which it is bidding on Goverrrment contracts, and qualified as a small business under the criteria in 13 CFR part 121 and the size standard in paragraph (c) of this clause. Such a concern is "not dominant in its field of operation" when it does not exercise a controlling or major influence on a national basis in a kind of business activity in which a number of business concerns are primarily engaged. In determining whether dominance exists, consideration shall be given to all appropriate factors, including volume of business, number of employees, financial resources, competitive status or position, ownership or control of materials, processes, patents, license agreements, facilities, sales territory, and nature of business activity.

 

(b) If the Contractor represented that it was a small business concern prior to award of this contract, the Contractor shall rerepresent its size status according to paragraph (e) of this clause or, if applicable, paragraph (g) of this clause, upon the occurrence of any of the following:

(1) Within 30 days after execution of a novation agreement or within 30 days after modification of the contract to include this clause, if the novation agreement was executed prior to inclusion of this clause in the contract.

 

(2) Within 30 days after a merger or acquisition that does not require a novation or within 30 days after modification of the contract to include this clause, if the merger or acquisition occurred prior to inclusion of this clause in the contract.

  

(3) For long-term contracts

 

(i) Within 60 to 120 days prlor to the end of the fifth year of the contract; and

 

(ii) Within 60 to 120 days prior to the date specified in the contract for exercising any option thereafter.

 

(c) The Contractor shall rerepresent its size status in accordance with the size standard in effect at the time of this rerepresentation that corresponds to the North American Industry Classification System (NAICS) code assigned to this contract. The small business size standard corresponding to this NAICS code can be found at http://www.sba.gov/services/contractingopportunities/sizestandardstopics/

 

(d) The small business size standard for a Contractor providing a product which it does not manufacture itself, for a contract other than a construction or service contract, is 500 employees.

 

(e) Except as provided in paragraph (g) of this clause, the Contractor shall make the rerepresentation required by paragraph (b) of this clause by validating or updating all its representations in the Online Representations and Certifications Application and its data in the Central Contractor Registration, as necessary, to ensure that they reflect the Contractor's current status. The Contractor shall notify the contracting office in writing within the timeframes specified in paragraph (b) of this clause that the data have been validated or updated, and provide the date of the validation or update.

 

(f) If the Contractor represented that it was other than a small business concern prior to award of this contract, the Contractor may, but lS not required to, take the actions required by paragraphs (e) or (g) of this clause.

 

(g) If the Contractor does not have representations and certifications in ORCA, or does not have a representation in ORCA for the NAICS code applicable to this contract, the Contractor is required to complete the following rerepresentation and submit it to the contracting office, along with the contract number and the date on which the rerepresentation was completed:

 

The Contractor represents that it [ is not a small business concern under NAICS Code assigned to contract number[Contractor to sign and date and insert authorized signer's name and title].

(End of clause)

 

	I-106	52.223-3	HAZARDOUS MATERIAL IDENTIFICATION AND MATERIAL SAFETY DATA	JAJ:\f/1997

 

(a) Hazardous material, as used in this clause, includes any material defined as hazardous under the latest version of Federal Standard No. 313 (including revisions adopted during the term of the contract).

 

(b) The offeror must list any hazardous material, as defined in paragraph (a) of this clause, to be delivered under this contract. The hazardous material shall be properly identified and include any applicable identification number, such as National Stock Number or Special Item Number. This information shall also be included on the Material Safety Data Sheet submitted under this contract.

 

	  Material	
Identification  No.

	  (If none, insert None)	 
	 	NONE	
   

	   

 

  

  

  

 

	
  

	
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Name of Offeror or Contractor:   OPTEX SYSTEMS, INC.

 

(c) This list must be updated during performance of the contract whenever the Contractor determines that any other material to be delivered under this contract is hazardous.

 

(d) The apparently successful offeror agrees to submit, for each item as required prior to award, a Material Safety Data Sheet, meeting the requirements of 29 CFR 1910.1200(g) and the latest version of Federal Standard No. 313, for all hazardous material identified ln paragraph (b) of this clause. Data shall be submitted in accordance with Federal Standard No. 313, whether or not the apparently successful offeror is the actual manufacturer of these items. Failure to submit the Material Safety Data Sheet prior to award may result in the apparently successful offeror being considered nonresponsible and ineligible for award.

 

(e) If, after award, there is a change in the composition of the item(s) or a revision to Federal Standard No. 313, which renders incomplete or inaccurate the data submitted under paragraph (d) of this clause, the Contractor shall promptly notify the Contracting Officer and resubmit the data.

 

(f) Neither the requirements of this clause nor any act or failure to act by the Goverrrment shall relieve the Contractor of any responsibility or liability for the safety of Government, Contractor, or subcontractor personnel or property.

 

(g) Nothing contained in this clause shall relieve the Contractor from complying with applicable Federal, State, and local laws, codes, ordinances, and regulations (including the obtaining of licenses and permits) ln connection with hazardous material.

 

(h) The Governments rights in data furnished under this contract with respect to hazardous material are as follows:

 

(1) To use, duplicate and disclose any data to which this clause is applicable. The purposes of this right are to

 

(i) Apprise personnel of the hazards to which they may be exposed in using, handling, packaging, transporting, or disposing of hazardous materials;

 

(ii) Obtain medical treabnent for those affected by the material; and

 

(iii) Have others use, duplicate, and disclose the data for the Government for these purposes.

 

(2) To use, duplicate, and disclose data furnished under this clause, in accordance with subparagraph (h)(1) of this clause, in precedence over any other clause of this contract providing for rights in data.

 

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

    

(End of Clause)

 

	I-107	52.223-11	OZONE-DEPLETING SUBSTANCES	MAY/2001

 

(a) Definition. Ozone-depleting substance, as used in this clause, means any substance the Environmental Protection Agency designates in 40 CFR Part 82 as—

 

(1) Class I, including, but not limited to, chlorofluorocarbons, halons, carbon tetrachloride, and methyl chloroform; or

 

(2) Class II , including, but not limited to hydrochlorofluorocarbons.

 

(b) The Contractor shall label products which contain or are manufactured with ozone-depleting substances in the manner and to the extent required by 42 U.S.C. 7671j (b), (c), and (d) and 40 CFR Part 82, Subpart E, as follows:

 

Warning

 

Contains  (or manufactured with, if applicable) N/A _______________ a substance(s) which harm(s) public health and environment by destroying ozone in the upper abnosphere.

*The Contractor shall insert the name of the substance(s).

 

(End of Clause)

 

  

  

  

 

	
  

	
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	CONTINUATION SHEET	 	 	 
	  	
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Name of Offeror or Contractor:   OPTEX SYSTEMS, INC.

 

	 I-108	52.252-2	CLAUSES INCORPORATED BY REFERENCE	FEB/1998

  

This contract incorporates one or more clauses by reference, with the same force and effect as if they were given in full text. Upon request, the Contracting Officer will make their full text available. Also, the full text of a clause may be accessed electronically at this/these address:

 

http://www.acq.osd.mil/dpap/dars/far html   or  http://www.acq.osd.mil/dpap/dars/index.hbn or http://farsite  hill.af.mil/VFAFARa.HTM

 

(End of  Clause)

 

	I-109	52.252-6	AUTHORIZED DEVIATIONS  IN CLAUSES	APR/1984

 

(a) The use ln this solicitation or contract of any Federal Acquisition Regulation (48 CFR Chapter 1) clause with an authorized deviation is indicated by the addition of (DEVIATION) after the date of the clause.

 

(b) The use in this solicitation or contract of any DoD FAR SUPPLEMENT (48 CFR 2) clause with an authorized deviation is indicated by the addition of (DEVIATION) after the name of the regulation.

 

(End of Clause)

 

	I-110	252.208-7000	INTENT TO FURNISH PRECIOUS METALS AS GOVERNMENT-FURNISHED MATERIAL	DEC/1991

  

(a) The Government intends to furnish precious metals required in the manufacture of items to be delivered under the contract if the Contracting Officer determines it to be in the Government's best interest. The use of Government-furnished silver is mandatory when the quantity required is one hundred troy ounces or more. The precious metal(s) will be furnished pursuant to the Government Furnished Property clause of the contract.

 

(b) The Offeror shall cite the type (silver, gold, platinum, palladium, iridium, rhodium, and ruthenium) and quantity in whole troy ounces of precious metals required in the performance of this contract (including precious metals required for any first article or production sample), and shall specify the national stock number (NSN) and nomenclature, if known, of the deliverable item requiring precious metals.

 

	Precious Metal*	Quantity	
Deliverable  Item

(NSN and Nomenclature)

 

*If platinum or palladium,  specify whether sponge or granules are required.

 

(c) Offerors shall submit two prices for each deliverable item which contains precious metals—one based on the Government furnishing preclous metals, and one based on the Contractor furnishing precious metals. Award will be made on the basis which is in the best interest of the Government.

 

(d) The Contractor agrees to insert this clause, including this paragraph (d), in solicitations for subcontracts and purchase orders issued in performance of this contract, unless the Contractor knows that the item being purchased contains no precious metals.

 

(End of clause)

 

  

  

  

	
  

	
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Name of Offeror or Contractor:   OPTEX SYSTEMS, INC.

 

	I-111	252.211-7005	SUBSTITUTIONS FOR MILITARY OR FEDERAL SPECIFICATIONS  AND STANDARDS	NOV/2005

  

(a) Definition. SPI process, as used in this clause, means a management or manufacturing process that has been accepted previously by the Department of Defense under the Single Process Initiative (SPI) for use in lieu of a specific military or Federal specification or standard at specific facilities. Under SPI, these processes are reviewed and accepted by a Management Council, which includes representatives of the Contractor, the Defense Contract Management Agency, the Defense Contract Audit Agency, and the military departments.

 

(b) Offerors are encouraged to propose SPI processes in lieu of military or Federal specifications and standards cited in the solicitation. A listing of SPI processes accepted at specific facilities lS available via the Internet at http://guidebook.dcma.mil/20/guidebook_process.htm (paragraph 4.2).

 

(c) An offeror proposing to use an SPI process in lieu of military or Federal specifications or standards cited in the solicitation shall

 

(1) Identify the specific military or Federal specification or standard for which the SPI process has been accepted;

 

(2) Identify each facility at which the offeror proposes to use the specific SPI process in lieu of military or Federal specifications or standards cited in the solicitation;

 

(3) Identify the contract line items, subline items, components, or elements affected by the SPI process; and

 

(4) If the proposed SPI process has been accepted at the facility at which it is proposed for use, but is not yet listed at the Internet site specified in paragraph (b) of this clause, submit documentation of Department of Defense acceptance of the SPI process.

 

(d) Absent a determination  that an SPI process is not acceptable for this procurement,  the Contractor shall use  the following SPI processes ln lieu of military or Federal specifications  or standards:

 

(Offeror insert information for each SPI process)

 

SPI Process:

Facility:

Military or Federal Specification  or Standard:

Affected Contract Line Item Number, Subline Item Number, Component, or Element:

(e) If a prospective offeror wishes to obtain, prior to the time specified for receipt of offers, verification   that an SPI process is an acceptable replacement for military or Federal specifications  or standards required by  the solicitation,  the prospective offeror

(1) May submit the information required by paragraph (d) of this clause to the Contracting Officer prior to submission of an offer; but

 

(2) Must submit the information to the Contracting Officer at least 10 working days prior to the date specified for receipt of offers.

 

(End of clause)

 

	I-112	252.223-7001	HAZARD WARNING LABELS	DEC/1991

  

(a) Hazardous material, as used in this clause, is defined in the Hazardous Material Identification  and  Material Safety Data clause of this contract.

 

(b) The Contractor  shall label the item package (unit container) of any hazardous material to be delivered under  this contract in accordance with the Hazard Communication  Standard (29 CFR 1910.1200 et seq). The Standard  requires that the hazard warning label conform to the requirements of the standard unless the material is  otherwise subject to the labeling requirements of one of the following statutes:

 

(1) Federal Insecticide, Fungicide and Rodenticide  Act;

 

(2) Federal Food, Drug and Cosmetics Act;

 

(3) Consumer Product Safety Act;

 

  

  

  

	
  

	
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	CONTINUATION SHEET	 	 	 
	  	
PIIN/SIIN   SPRDLl-12-C-0023

	
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Name of Offeror or Contractor:   OPTEX SYSTEMS, INC.

(4) Federal Hazardous Substances Act; or

 

(5) Federal Alcohol Administration  Act.

 

(c) The Offeror shall list which hazardous material listed in the Hazardous Material Identification and Material Safety Data clause of this contract will be labeled in accordance with one of the Acts in paragraphs (b)(1) through (5) of this clause instead of the Hazard Communication Standard. Any hazardous material not listed will be interpreted to mean that a label is required in accordance with the Hazard Communication Standard.

	 	
MATERIAL (If None, Insert None. 

	
ACT

 

	NONE	  	  	 

 

(d) The apparently successful Offeror agrees to submit, before award, a copy of the hazard warning label for all hazardous materials not listed in paragraph (c) of this clause. The Offeror shall submit the label with the Material Safety Data Sheet being furnished under the Hazardous Material Identification and Material Safety Data clause of this contract.

 

(e) The Contractor shall also comply with MIL-STD-129, Marking for Shipment and Storage (including revlslons adopted during the term of this contract).

 

(End of clause)

   

	I-113	
52.204-4009

(TACOM)

	MANDATORY USE OF CONTRACTOR  TO GOVERNMENT ELECTRONIC COMMUNICATION	MAR/2005

 

(a) All references in the contract to the submission of written documentation shall mean electronic submission. All electronic submissions shall be in the formats and media described in the website:

http://contracting.tacom.army.mil/ebidnotice.hbn

 

(b) This shall include all written unclassified communications between the Goverrrment and the Contractor except contract awards and contract modifications which shall be posted on the internet. Return receipt shall be used if a commercial application is available. Classified information shall be handled in full accordance with the appropriate security requirements.

 

(c) In order to be contractually binding, all Government communications requiring a Contracting Officer signature must be sent from the Contracting Officer's e-mail address. The Contractor shall designate the personnel with signature authority who can contractually bind the contractor. All binding contractor communication shall be sent from this contractor e-mail address(es).

 

(d) Upon award, the Contractor  shall provide the Contracting Officer with a list of e-mail addresses for all administrative  and technical personnel assigned to this contract.

 

(e) Unless exempted by the Procuring Contracting Officer in writing, all unclassified written communication after contract award shall be transmitted electronically.

 

[End of Clause]

 

	I-114	52.219-4070	PILOT MENTOR-PROTEGE  PROGRAM	APR/2006

 

(a) The Pilot Mentor-Protege Program does not apply to small business concerns.

 

(b) Utilization of the Pilot Mentor-Protege Program (hereafter referred to as the Program) is encouraged. Under the Program, eligible companies approved as mentor firms enter into a mentor-protege agreement with eligible protege firms. The goal of the program is to provide appropriate developmental assistance to enhance the capabilities of the protege firm. The Mentor firm may be eligible for cost reimbursement or credit against their applicable subcontracting goals.

 

(c) Mentor firms are encouraged to identify and select concerns that are defined as emerging small business concerns, small disadvantaged business, women-owned small business, HUBZone small business, service-disabled veteran-owned small business, veteran­ owned small business or an eligible entity employing the severely disabled.

 

(d) Full details of the program are located at http://www.acq.osd.mil/sadbu/mentor protege/, http://sellingtoarmy.info/, DFARS Appendix I, and DFARS Subpart 219.71, "Pilot Mentor-Protege Program."

 

(e) For additional questions after reviewing the information provided, contact the Office of Small Business Programs serving

 

  

  

  

 

	
  

	
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	CONTINUATION SHEET	 	 	 
	  	
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Name of Offeror or Contractor:   OPTEX SYSTEMS, INC.

  

your area.

 

[End of Clause]

 

  

  

  

 

	
  

	
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	CONTINUATION SHEET	 	 	 
	  	
PIIN/SIIN   SPRDLl-12-C-0023

	
MOD/AMD

	  
	
Name of Offeror or Contractor:   OPTEX SYSTEMS, INC.

 

SECTION J  - LIST OF ATTACHMENTS

 

	
List  of

	  	  	  	  	  	
Number

	  	  
	
MQ Q

	  	
h1

	  	  	  	
2LE

	  	
ill

	
Exhibit A

	  	
CDRL, DOC. SUMMARY LIST, ADDRESSES FOR DATA SUBMITTAL

	  	
12-APR-2011

	  	
0 04

	  	
EMAIL

	
Exhibit B

	  	DATA DELIVERABLE DESCRIPTIONS	  	
12-APR-2011

	  	
011

	  	
EMAIL

 

  

  

  

  

	

PIIN/SIIN 

	  	SPRDL1– 12 – C – 0023
	
MOD/AMD

	  	
  

	
ATT/EXH ID

	  	
Exhibit     A

	
PAGE

	  	
  

 

CONTRACT DATA REQUIREMENTS LIST

DD FORM 1423 (MECHANIZED)

 

CATEGORY: MISC SYSTEM/ITEM: HEAD ASSY

TO CONTRACT/PR: M112A243Ml

NSN: 1240-01-476-2613

 

THE LEGEND BELOW APPLIES TO ALL CDRLs **************

 

	
1. SEQUEN"CE NUMBER

	 	  	 	
14. DISTRIBUTION DRFT/REG/REPRO COPIES

	 	  
	  	 	  	 	  	 	  
	
2.  TITLE OF DATA ITEM

	 	  	 	  	 	  
	  	 	  	 	  	 	  
	
3.  SUBTITLE

	 	  	 	  	 	  
	  	 	  	 	  	 	  
	
4.  DATA ITEM NUMBER

	 	  	 	  	 	  
	  	 	  	 	  	 	  
	
5. CONTRACT REFERENCE

	 	  	 	  	 	  
	  	 	  	 	  	 	  
	
6.  TECHNICAL OFFICE

	 	
7.  DD 250

	 	
8. APP CODE

	 	
9. DIST STATEMENT

REQUIRED

	  	 	  	 	  	 	  
	
10. FREQUENCY

	 	  	 	
11. AS OF DATE

	 	  
	  	 	  	 	  	 	  
	
12. DATE OF 1ST SUBMISSION

	 	  	 	
13. DATE OF SUBSEQUEN"T

SUBMISSION

	 	  
	  	 	  	 	  	 	  
	
1. A00l

	 	  	 	
14. SEE ADDRESS CODE

	 	  
	  	 	  	 	  	 	  
	
2. ENGINEERING CHANGE PROPOSAL  (ECP)

	 	  	 	
DISTRIBUTION ATTACHED***

	 	  
	  	 	  	 	  	 	  
	
3.

	 	  	 	  	 	  
	  	 	  	 	  	 	  
	
4. DI-CMAJ:\f-80639C*

	 	  	 	  	 	  
	  	 	  	 	  	 	  
	
5. SECTION C

	 	  	 	  	 	  
	  	 	  	 	  	 	  
	
6. RDAR-EIS-PDR

	 	
7. LT

	 	
8.

	 	
9.

	  	 	  	 	  	 	  
	
10. ASREQ

	 	
11.

	 	
15. TOTAL                      0/ 0/ 0

	 	 
	  	 	  	 	  	 	  
	
12. ASREQ

	 	
13. ASREQ

	 	  	 	  
	  	 	  	 	  	 	  
	
16. REMARKS

	 	  	 	  	 	  

  

*DELETE PARAGRAPH 2 OF DID. SEE ATTACHED DATA DELIVERY DESCRIPTION FOR CONT EN"T OF THE ECP. CONTRACTOR FORMAT IS ACCEPTABLE, DATA MUST BE IN GOVT COMP ATIBLE SOFTWARE (I.E., MICROSOFT OFFICE). **DIST STATEMENT WILL BE ASSIGNE D AND IMPLEMEN"TED BY THE DOD CONFIGURATION MGR. ***SUBMIT ELECTRONICALLY TO ROCK-ECP-INPUT@CONUS.ARMY.MIL. ELECTRONIC FILES MUST BE LESS THAN 7MB. THE FORMS LOCATED AT https://www.pica.army mil/prod_techdata/cmdocs-links.htm ARE THE PREFERRED METHOD OF SUBMISSION FOR THIS DATA ITEM (DD FORMS).

 

	
1. A002

	  	 	  	
14.

	  	  
	  	  	 	  	
SEE ADDRESS CODE

	  	  
	
2. REQUEST FOR DEVIATION  (RFD)****

	  	 	  	
DISTRIBUTION ATTACHED***

	  	  
	  	  	  	  	  	  	  
	
3.

	  	  	  	  	  	  
	  	  	  	  	  	  	  
	
4. DI-CMAJ:\f-80640C*

	  	  	  	  	  	  
	  	  	  	  	  	  	  
	
5. SECTION C

	  	  	  	  	  	  
	  	  	  	  	  	  	  
	  	  	  	  	  	  	  
	
6. RDAR-EIS-PDR

	  	
7. LT

	  	
8.

	  	
9.

	  	  	  	  	  	  	  
	
10. ASREQ

	  	
11.

	  	
15. TOTAL          0/ 0/ 0

	  	 
	  	  	  	  	  	  	  
	
12. ASREQ

	
  

	
13. ASREQ

	
  

	  	
  

	  

 

  

  

  

	

PIIN/SIIN 

	  	SPRDL1– 12 – C – 0023
	
MOD/AMD

	  	
  

	
ATT/EXH ID

	  	
Exhibit     A

	
PAGE

	  	
     2

16. REMARKS

   

*DELETE PARAGRAPH 2 OF DID. SEE ATTACHED DATA DELIVERY DESCRIPTION FOR CONT EN"T OF RFD.  ADEQUATE DATA/ANALYSIS/TESTING TO SUPPORT THE POSITION RELATIV E TO PARAGRAPH 24 AND 25 OF DATA DELIVERY DESCRIPTION  SHALL BE INCLUDED.  CONTRACTOR FORMAT IS ACCEPTABLE, BUT DATA MUST BE IN GOVT COMPATIBLE SOFTWAR E (I.E., MICROSOFT OFFICE). **DISTRIBUTION STATEMENT WILL BE ASSIGNED AND I MPLEMENTED BY THE DOD CONFIG MGR. ***SUBMIT ELECTRONICALLY  TO

ROCK-ECP-INPUT@CONUS.ARMY.MIL. ELECTRONIC FILES MUST BE LESS THAN 7MB.  THE FORMS LOCATED AT https://www.pica.army.mil/prod_techdata/cmdocs-links.htm ARE THE PREFERRED METHOD OF SUBMISSION FOR THIS DATA ITEM (DD FORMS).

****THE CONTRACTOR SHALL IDENTIFY IF THE RFD IS PRIOR TO MFG OR NON-CONFORM ING MTRL. A PRIOR TO MFG DESCRIBES A PROPOSED DEPARTURE FROM CONFIG DOCS FO R A SPECIFIC NUMBER OF UNITS OR FOR A SPECIFIED PERIOD OF TIME. A NON-CONFO RMING MTRL RFD IS USED TO OBTAIN AUTH TO DELIVER NON-CONFORMING MTRL WHICH

DOES NOT MEET THE CONFIG DOCS BUT IS SUITABLE FOR USE AS IS OR AFTER REPAIR.

 

	
1. A003

	  	 	  	
14.

	  	  
	  	  	 	  	
SEE ADDRESS CODE

	  	  
	

2. NOTICE OF REVISION  (NOR)

	  	 	  	
DISTRIBUTION ATTACHED***

	  	  
	  	  	  	  	  	  	  
	
3.

	  	  	  	  	  	  
	  	  	  	  	  	  	  
	
4. DI-CMAJ:\f-80642C*

	  	  	  	  	  	  
	  	  	  	  	  	  	  
	
5. SECTION C

	  	  	  	  	  	  
	  	  	  	  	  	  	  
	  	  	  	  	  	  	  
	
6. RDAR-EIS-PDR

	  	
7. LT

	  	
8.

	  	
9.

	  	  	  	  	  	  	  
	
10. ASREQ

	  	
11.

	  	
15. TOTAL          0/ 0/ 0

	  	 
	  	  	  	  	  	  	  
	
12. ASREQ

	
  

	
13. ASREQ

	
  

	  	
  

	  
	 	 	 	 	 	 	 
	
16. REMARKS

	 	 	 	 	 	 

 

*DELETE PARAGRAPH 2 OF DID.  SEE ATTACHED DATA DELIVERY DESCRIPTION FOR CON TENT OF NOR. CONTRACTOR FORMAT IS ACCEPTABLE, DATA MUST BE IN GOVT COMPATIB LE SOFTWARE (I.E., MICROSOFT OFFICE). **SUBMIT ELECTRONICALLY  TO ROCK-ECP-INPUT@CONUS.ARMY.MIL. ELECTRONIC FILES MUST BE LESS THAN 7MB. FORMS LOCATED AT https://www.pica.army.mil/prod_techdata/cmdocs-links.htm ARE THE PREFERRED METHOD OF SUBMISSION FOR THIS DATA ITEM.  ***THE DIST STATEMENT WILL BE ASSIGNED AND IMPLEMENTED BY THE DOD CONFIGURATION  MANAGER.

 

DATE: 12 APR 11

 

DOCUMENT SUMMARY LIST

 

Item: HEAD ASSY

NSN: 1240-01-476-2613

Control Number/PRON:  M112A243M1

 

Identifies all first tier documents (cited in SOW) (applicable DIDs). Also included are all referenced documents (2nd, (includes DID block 10 references), 3rd and lower tier) which have been tailored.

 

DOCUMENT CATEGORY:

 

CATEGORY 0 - Unless otherwise specified in the solicitation, contract, or contract modifications, all documents are for guidance and information only.

 

CATEGORY 1 - The requirements contained in the directly cited document are contractually applicable to the extent specified. All referenced documents are for guidance and information only.

 

CATEGORY 2 - The requirements contained in the directly cited document and the reference documents identified in the directly cited document are contractually applicable to the extent specified. All subsequently referenced documents are for guidance and information only.

 

  

  

  

	  	
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CATEGORY 3 - Unless otherwise specified in the solicitation, contract or contract modification,  all requirements contained in the directly cited document

and all reference and subsequently referenced documents are contractually  applicable

 

to the extent specified.

	
Document Number

	  	  	  	  
	
(Contract Reference)

	  	  	  	
Document Date/

	
Applicable Tailoring

	  	
Document Title

	  	
Document Category

	  	  	  	  	  
	
la. N/A

	  	
Section c  titled: Configuration Management Documentation

	  	
N/A

Cat 2

	  	  	  	  	  
	
lb. DI-CMAJ:\f-80639C

	  	
Engineering Change Proposal

	  	
30 Sep 00 (ECP)

	
(seq A001) 

	  	  	  	
Cat

	  	  	  	  	  
	
lc. DI-CMAJ:\f-80640C

	  	
Request for Deviation  (RFD)

	  	
30 Sep 00

	
(seq A002)

	  	  	  	
Cat 1

	  	  	  	  	  
	
ld. DI-CMAJ:\f-80642C

	  	
Notice of  Revision  (NOR)

	  	
30 Sep 00

	
(seq A003)

	  	  	  	
Cat 1

	  	  	  	  	  
	
2. AN"SI/ISO/ASQC Q9001-2008

	  	
American National Standard Quality

Quality Management Systems Requirements

 

	  	
15 Nov 08

 

	  	  	  	  	  
	
3. MIL-PRF-13830  (REVB)

	  	
Optical Components  for Fire

	  	
09 Jan 97

	  	  	
Control Instruments; Gen. Spec.

	  	
Cat 2

 

END OF DOCUMENT SUMMARY LIST

ADDRESS LIST

Executive for Contracting  DLA Land Warren

6501 E. 11 Mile Road

Mailstop 729

ATTN:   (See Block 14 of DD Form 1423 for symbols that apply)

Warren, MI 48397-5000

Director

U.S. Army, Armament, Research, Development  & Engineering Center

1 Rock Island Arsenal

ATTN:   (See Block 14 of DD Form 1423 for symbols that apply)

Rock Island, IL  61299-7300

Commander

U.S. Army, Armament, Research, Development  & Engineering Center

ATTN: (See Block 14 of DD Form 1423 for symbols that apply)

Picatinny Arsenal, NJ  07806-5000

END OF ADDRESS LIST

ADDRESS CODE DISTRIBUTION

FOR ECP/RFD/VECP

  

  

  

 

	  	
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1.     Concurrent distribution  of Value Engineering Change Proposals  (VECPs), Engineering Change Proposals  (ECPs), Request for Deviations  (RFDs) shall be submitted electronically  to the below addresses:

 

a      ROCK – ECP – INPUT@CONUS.ARMY.MIL if the item is NOT a chemical item

 

b.     ROCK – ECBCCMActions@conus.army.mil if the item is a chemical item

 

c.     Contracting Office: Provide to the buyers E-Mail address as reflected on the front page of the contract  (or most recent modification if applicable)

 

d.     The Administrative  Contracting Officer.

 

(Submissions must be under lOMB), (electronic foms (DD Foms 1692, 1693, and 1694) are available for your use at h.til2§_;_il  _,_I2i  g   gg,y ilLI2£9.9....i QhQ  _Lg_ QQQ§.::.li..J1k§_,_h.Qg,

 

2.     If hardcopies are submitted, the contractor shall submit copies as required and as identified below to:

 

Director, U.S. Amy Armament Research

Development  and Engineering Center

ATTN:  RDAR-EIS-PE  (ECPs)

PICATINNY, NJ 07806-5000

 

Chemical items should be provided to RDCB-DEM, Rock Island, IL 61299-7410

	
a. VECPs -

	
original plus 3 COpleS

	  
	  	
original plus 3 COpleS

	
(Tools & Equipment)

	  	
original plus 3 COpleS

	
(Navy or Air Force)

	  	  	  
	
b.  ECPs -

	
original plus 2 COpleS

	  
	  	
original plus 2 COpleS

	
(Tools & Equipment)

	  	
original plus 2 COpleS

	
(Navy or Air Force)

	  	  	  
	
c. RFDs -

	
original plus 2 COpleS

	  
	  	
original plus 2 COpleS

	
(Tools & Equipment)

	  	
original plus 2 COpleS

	
(Navy or Air Force)

If submitting by mail, one copy designated Advance Copy to:

a.     Contracting Office: Provide to the buyers E-Mail address as reflected on the front page of the contract  (or most recent modification  if applicable).

b.     Administrative  Contracting Officer.

3.  When ECPs, NORs, RFDs are determined to be Urgent, Critical and/or Schedule impacting, an action copy shall be provided to RDAR-EIS-T via data facsimile (FAX) to 973-724-2082.   This transmission is to be immediately followed with the usual hard copy mailing.

END OF ADDRESS CODE DISTRIBUTION

  

  

  

	  	
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DATA DELIVERY DESCRIPTIONS

 

ENGINEERING CHANGE PROPOSAL  (ECP)

 

This Data Delivery Description  (DDD) contains the content and preparation  instructions  for the data product resulting from the work task specified in the contract. This DDD is used in conjunction with a Notice of Revision  (NOR). A requirement for NORs, as applicable,  should be contractually  imposed in conjunction with this DDD.

Requirements:

1.     Reference documents. The applicable issue of any documents cited herein, including their approval dates and dates of any applicable amendments, notices, and revisions, shall be as specified ln the contract.

2.     Format and content. The Engineering Change Proposal shall be prepared ln contractor format.

3.     Supporting data. In addition to the information required below, the ECP shall include supporting data. Formal ECPs shall be supported by drawings and other data (e.g., Logistic Support Analysis  (LSA) data, detailed cost proposal data, test data and analyses) as specified in the contract to justify and describe the change and to determine its total impact including assessments of changes to system operational employment characteristics. When a life cycle cost and/or operation and support cost model has been included in the contract, the ECP shall also include the costs expected to result from the implementation  of the change into all future production and spare items projected to be procured for the program. Also for all projected operation and support costs for operation of the total inventory of items by the Goverrrment. A summary of any testing done to validate concepts or new technology to be employed in the proposed engineering change shall be presented in the supporting data. Details of such test data shall be provided if it is vital to the decision regarding acceptance of the change.

4.     Distribution  statement. The appropriate distribution  statement shall be affixed to the ECP in accordance with the requirements of the contract.

5.     Date. Provide the submittal date of the ECP or of the revision to the ECP.

6.     Procuring Activity Number (PAN): Provide the PAN of the procuring activity, if known.

7.     DODAAC. Provide the DODAAC of the procuring activity, if known.

8.     Originator name and address. Provide the name and address of the contractor  submitting the ECP.

9.     Designate as either Class I or II. Proposed changes that do not meet the criteria for Class I shall be designated as Class II. The englneerlng change shall be Class I if:

	
  

	
a.

	
The Functional Configuration Documentation  (FCD) or Allocated Configuration Documentation  (ACD) is affected to the extent that any of the following requirements would be outside specified limits or specified tolerances:

	
  

	
(1)

	
Performance.

	
  

	
(2)

	
Reliability, maintainability  or survivability.

	
  

	
(3)

	
Weight, balance, moment of inertia.

	
  

	
(4)

	
Interface characteristics.

	
  

	
(5)

	
Electromagnetic  characteristics.

	
  

	
(6)

	
Other technical requirements in the specifications.

NOTE: Minor clarifications and corrections  to FCD or ACD shall be made only as an incidental part of the next Class

ECP NOR, unless otherwise directed by the Government.

	 	
b.

	
A change to the Product Configuration Documentation  (PCD) will affect the FCD or ACD as described in paragraph 9a or will impact one or more of the following:

	
  

	
(1)

	
Goverrrment Furnished Equipment  (GFE).

	
  

	
(2)

	
Safety.

	
  

	
(3)

	
Compatibility  or specified interoperability  with interfacing Cis, support equipment or support software, spares, trainers or training devices/ equipment/software.

	
  

	
(4)

	
Configuration  to the extent that retrofit action is required.

	
  

	
(5)

	
Delivered operation and maintenance manuals for which adequate change/revision  funding is not provided ln existing contracts.

	
  

	
(6)

	
Preset adjustments or schedules affecting operating limits or performance  to such extent as to require assignment of a new identification number.

	 	
(7)

	
Interchangeability, substitutability,  or replaceability  as applied to Cis, and to all subassemblies  and parts except the pieces and parts of non-reparable  subassemblies.

  

  

  

 

	  	
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(8)

	
Sources of Cis or repairable items at any level defined by source-control  drawings.

	
  

	
(9)

	
Skills, manning, training, biomedical factors or human-engineering design.

	
  

	
c.

	
Any of the following contractual factors are affected:

	
  

	
(1)

	
Cost to the Goverrrment including incentives and fees.

	
  

	
(2)

	
Guarantees or warranties.

	
  

	
(3)

	
Deliveries.

	
  

	
(4)

	
Scheduled milestones.

10.   Justification code. Provide a justification code that is applicable to a proposed Class I engineering change. The justification code is not required for Class II ECPs. If more than one of the following codes are applicable,  the one which is the most descriptive or significant shall be assigned to the ECP.

	
  

	
a.

	
Interface. Code B shall be assigned to an engineering change proposal for correction of a deficiency which will eliminate interference or incompatibility  at an interface between Cis.

	
  

	
b.

	
Compatibility.  Code C shall be assigned to an engineering change to correct a deficiency with the following characteristics:

	
  

	
(1)

	
The need for the change has been discovered during the system or item functional checks or during installation and checkout and is necessary to make the system or item work.

	
  

	
(2)

	
By assigning the compatibility  code the contractor  is declaring that the effort required to accomplish the change is considered to be within the scope of the existing contract except for changes caused by the Goverrrment.

	
  

	
(3)

	
Contractual coverage completing the formal documentation  of the engineering change will not reflect an increase in contract price for the corrective action in production and to delivered items in-warranty or otherwise stipulated in the contract.

	
  

	
c.

	
Correction of deficiency. Code D shall be assigned to an engineering change which is required to eliminate a deficiency, unless a more descriptive  separate code applies. Such separate codes are used to identify deficiencies of the nature of safety, interface, or compatibility.

	
  

	
d.

	
Operational or logistics support. Code 0 shall be assigned to an engineering change which will make a significant effectiveness  change in operational capabilities  or logistics support.

	
  

	
e.

	
Production stoppage. Code P shall be assigned to an engineering change which is required to prevent slippage ln an approved production schedule. This code applies when production  to the current configuration documentation either is impracticable or cannot be accomplished without delay.

	
  

	
f.

	
Cost reduction. CodeR shall be assigned to an engineering change which will provide a net total life cycle cost savings to the Goverrrment, but which is not being submitted pursuant to the Value Engineering clause of the contract. The savings in life cycle cost should include all effects on cost and price for the effort and requirements covered by the contract(s) currently in effect for this contractor, plus the costs resulting from necessary associated changes in delivered items, and logistics support.

	
  

	
g.

	
Safety. Code S shall be assigned to an englneerlng change for correction of a deficiency which lS required primarily to eliminate a hazardous condition. When this code is assigned, a system hazard analysis shall be included with the ECP. (See MIL-STD-882)

	
  

	
h.

	
Value engineering  (VE). Code V shall be assigned to an engineering change that will effect a net life cycle cost reduction and which is submitted pursuant to the VE clause of the contract.

 

11.   Priority. A priority shall be assigned to each Class I ECP based upon the following definitions. Class II ECPs do not require a priority assignment. The proposed priority is assigned by the originator and will stand unless the Government has a valid reason for changing the priority.

	 	
a.

	
Emergency  (E). Shall be assigned to an engineering change proposed for any of the following reasons:

	
  

	
(1)

	
To effect a change in operational characteristics which, if not accomplished without delay, may seriously compromise national security;

	
  

	
(2)

	
To correct a hazardous condition which may result in fatal or serious injury to personnel or in extensive damage or destruction of equipment.  (A hazardous condition usually will require withdrawing  the item from service temporarily, or suspension of the item operation, or discontinuance  of further testing or development pending resolution of the condition.); or

	
  

	
(3)

	
To correct a system halt (abnormal termination)  in the production environment  such that CSCI mlsslon accomplishment  is prohibited.

	 	
b.

	
Urgent  (U). Shall be assigned to an engineering change proposed for any of the following reasons:

	
  

	
(1)

	
To effect a change which, if not accomplished expeditiously, may seriously compromise the mission effectiveness  of deployed equipment, software, or forces; or

	
  

	
(2)

	
To correct a potentially hazardous condition, the uncorrected existence of which could result in injury to personnel or damage to equipment.  (A potentially hazardous condition compromises  safety and embodies risk, but within reasonable limits, permits continued use of the affected item provided the operator has been informed of the hazard and appropriate precautions have been defined and distributed  to the user.); or

	
  

	
(3)

	
To meet significant contractual  requirements  (e.g., when lead time will necessitate  slipping approved production or deployment schedules if the change was not incorporated); or

	
  

	
(4)

	
To effect an interface change which, if delayed, would cause a schedule slippage or lncrease cost; or

  

  

  

 

	  	
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(5)

	
To effect a significant net life cycle cost savlngs to the Goverrrment, as defined in the contract, through value engineering or through other cost reduction efforts where expedited processing of the change will be a major factor in realizing lower costs.

	
  

	
(6)

	
To correct unusable output critical to mission accomplishment;

	
  

	
(7)

	
To correct critical CI files that are being degraded; or

	 	
(8)

	
To effect a change in operational characteristics to implement a new or changed regulatory requirement with stringent completion date requirements  issued by an authority higher than that of the functional proponent.

	
  

	
c.

	
Routine  (R). Shall be assigned to a proposed engineering change when emergency or urgent is not applicable.

12.   ECP designation.

	
  

	
a.

	
Model/Type. Provide model or type designation of the CI for which this proposal is being submitted. For Computer Software Configuration  Items (CSCI), enter the CSCI identification number. 

	 	
b.

	
CAGE code. Enter the CAGE code for the activity originating  the ECP.

	
  

	
c.

	
System designation. The system or top-level CI designation or nomenclature  assigned shall be entered, if known.

13.   ECP number. Provide an ECP number. Once an ECP number is assigned to the first submission of a change proposal, that number shall be retained for all subsequent submissions of a change proposal. One of the following methods of assigning ECP numbers may be used unless otherwise stated in the contract:

	
  

	
a.

	
ECP numbers shall run consecutively  commencing with number 1, for each CAGE Code identified activity, or ECP numbers may be assigned in a separate series for each system that the contractor is producing

	
  

	
b.

	
When an ECP is split into a basic ECP and related ECPs, the basic ECP shall be identified with the number prescribed above and each related ECP shall be identified by the basic number plus a separate dash number. The number of characters in the ECP number, dash number, type, and revision identification  shall not exceed 32.

	
  

	
c.

	
Other systems may be used provided the ECP number is unique for any CAGE Code identified activity, and the 32 character limitation is not exceeded.

14.   Type. For Class I ECPs, indicate either a "P" for preliminary, or "F" for fomal. A Class I ECP shall be preliminary  if it meets the criteria below.

	
  

	
a.

	
A preliminary change proposal is one that is submitted to the Government  for review prior to the availability of the information necessary to support a formal ECP. It shall include a summary of the proposed change, its impact on related areas, and a justification.  Examples are to furnish the Government with available information in order to pemit:

	
  

	
(1)

	
A preliminary evaluation  relative to the merits of the proposed change  (e.g. installation of a proposed change for the purpose of evaluation and testing prior to making a final decision to proceed with a proposed change);

or,

	
  

	
(2)

	
A determination  regarding the desirability of continuing expenditures  required to further develop the proposal.

	
  

	
(3)

	
To provide alternative proposals; or

	
  

	
(4)

	
To supplement a message relative to an emergency or urgent priority ECP when it is impracticable  to submit a formal ECPwithin 30 calendar days; or

	
  

	
(5)

	
To obtain Government approval to proceed with software engineering development prior to the development of the actual coding changes.

	
  

	
b.

	
A formal ECP is the type, which provides the englneerlng  information and other data in sufficient detail to support fomal change approval/contractual implementation.

15.   Revision. If an ECP is being revised, enter the proper identification  of the revision, i.e., R1 for the first revision; R2, R3, etc. for subsequent revlslons.  (The date submitted  (paragraph 5) shall be the date of the revised ECP.)

16.   Baseline affected. Indicate the baseline(s) affected  (see MIL-HDBK-61).

17.   Other systems/configuration items affected. If other systems/configuration items are affected indicate whether the effect on other systems or Cis requires the submittal of related Class I ECPs. Supply details in paragraphs 33a and c.

18.   Specifications  affected. If specifications  cited in the contract are affected by the ECP, their identity by the CAGE code of the design activity, document number, revision letter, and the NOR number of the NOR being submitted with the ECP, shall be provided.

19.   Drawings affected. If drawings are affected by the ECP, their identity by the CAGE code of the design activity, document number, revision letter, and the NOR number of the NOR being submitted with the ECP, shall be provided.

20.   Title of change. Provide a brief title to identify the component or system affected by the ECP. For example: F-18 Aircraft Air Turbine Start Connector Backshell Replacement;  AN/AYK-14(v)  CP-1502/CP-1503  Reconfiguration to CP-1799; (CSCI name) Block Update.

  

  

  

 

	  	
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21.   Contract number(s) and line item(s). Provide the number(s) of all currently active contract(s),  and the affected contract line item number(s), at the originating CAGE-coded activity that are affected by the engineering change.

22.   Procuring contracting officer. Provide the procurlng contracting officer's name, office symbol/code, and telephone number applicable to the CI shown ln paragraph 21.

23.   Configuration  item nomenclature.  Provide the assigned name and type designation  the CSCI name and number, if applicable, or authorized name and number of the CI(s) affected by the ECP.

24.   Is the CI in production?  If "yes", provide information as to whether deliveries have been completed on the contract(s). This data is not always applicable to software. If not applicable,  so indicate.

25.   All lower level items affected.

	
  

	
a.

	
For hardware, an appropriate,  complete descriptive name of the part(s) shall be provided as well as the quantity of the part(s). Additionally,  applicable NSNs shall be provided.

	
  

	
b.

	
For CSCI's, provide the name and identifier of each lower level CI and computer software unit affected.

 

26.   Description  of change. The description of the proposed change shall include the purpose and shall be given in sufficient detail to adequately describe what is to be accomplished.  It shall be phrased in definitive  language such that, if it is repeated in the contractual document authorizing  the change, it will provide the authorization desired. Supporting data may be provided to the extent necessary to clearly portray the proposed change. If the proposed change is an interim solution, it shall be so stated.

27.   Need for change. Provide an explanation of the need for the change to include specifically identifying the benefit of the change to the Government. The nature of the defect, failure, incident, malfunction,  etc. substantiating  the need for the change shall be described in detail. Full utilization  shall be made of available failure data. If a new capability  is to be provided, improvements in range, speed, performance,  endurance, striking power, defensive or offensive capabilities, etc. shall be described in quantitative  terms. Correspondence  establishing  requirements  for the change and any testing accomplished prior to the submission shall be identified and summarized. If the ECP is needed to correct maintenance/logistics problems, that fact will be included with sufficient detail to identify the lssues. If the ECP is being submitted as a response to a request for ECP or Government direction, cite that authority herein.

28.   Production effectivity by serial number.

	
  

	
a.

	
For hardware, provide the estimated production effectivity point for the production  items including serial number, or other item identification  (e.g., block or lot number) as approved by the Government.  In determining  the effectivity point for the proposed change, consider, in addition to the time factors, the availability  of all support elements affected and the most economical point of introduction consistent with all the salient factors involved. The earliest production  incorporation  is not necessarily  the singular or most important factor in the establishment  of a proposed change effectivity point. The effectivity point shall be based on concurrent availability of all logistics support elements and materials affected by the change to the item.

	
  

	
b.

	
For CSCI's, identify the CSCI version number, if known, into which the change will be incorporated. Where applicable,  the effectivity of the end item CI and vehicle (aircraft, tank, ship, etc.) into which the capability represented by the new version of the software is proposed to be incorporated,  shall also be provided. If the impact of the ECP merits the release of a new software version include a recommendation  to this effect. Serial numbers may be used in lieu of version numbers if approved by the Government.

29.   Effect on production delivery schedule. State the estimated delivery schedule of items incorporating  the change, either ln terms of days after contractual approval, or by specific dates contingent upon contractual approval by a specified date. If there will be no effect on the delivery schedule, so state.

30.   Retrofit.

	
  

	
a.

	
Recommended item effectivity.  When the contractor recommends that the engineering change be accomplished  in accepted items by retrofit, the quantities and serial (or lot) numbers of accepted items in which the change lS proposed to be incorporated by retrofit shall be provided. Such statement regarding items currently in production shall be based upon the estimated approval date of the ECP.

	
  

	
b.

	
Ship/vehicle class affected. When the delivered CI is installed ln one or more ship/vehicle classes, enter the identification  of such classes.

	
  

	
c.

	
Estimated kit delivery schedule. State estimated kit delivery schedule by quantity and date. When special tooling for retrofit is required for Government use, provide the dates of availability of tools, jigs, and test equipment required ln conjunction with the kits to accomplish  the change.

	
  

	
d.

	
Locations or ship/vehicle numbers affected. State the location(s) where retrofit is to be accomplished.  If retrofit is to be accomplished  in ships (or in vehicles for which the serial numbers are not shown ln paragraph 30b), enter the ship hull numbers or vehicle numbers.

  

  

  

 

	  	
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NOTE: The appropriate  information shall be provided for CSCI changes that are to be incorporated as part of a hardware or equipment change; and implemented per a hardware retrofit schedule, or where the fielded version of the software lS to be replaced.

31.   Estimated costs/savings  under contract. Provide the total estimated costs/savings  impact of the ECP on the contract for the subject CI. Savings shall be shown in parentheses.

32.   Estimated net total costs/savings.  Provide the total estimated costs/savings  impact of the basic and all related ECPs, including other costs/savings  to the Government.  Savings shall be shown in parentheses.

33.   Effects on Functional/Allocated Configuration  Identification.  This information is to be provided only if the proposed change affects the system specification  or the item development specification(s).  If a separate product function specification  is used, effects on such specification of changes proposed after the Product Baseline has been established shall be described as required.

	
  

	
a.

	
Other systems affected. Provide only if other systems/configuration items are affected as indicated in paragraph 17.

	
  

	
b.

	
Other contractors/activities affected. Identify other contractors or Goverrrment activities  that will be affected by this engineering change.

	
  

	
c.

	
Configuration  items affected. Enter the names and numbers of all Cis, maintenance  and operator training equipment, and support equipment affected.

	
  

	
d.

	
Effects on performance allocations and interfaces in system specification. Describe the changes in performance allocations and in the functional/physical interfaces defined in the system specification.

	
  

	
e.

	
Effects on employment,  integrated logistic support, training, operational effectiveness,  or software.

	
  

	
(1)

	
For hardware, describe the effects of the proposed change on employment, deployment,  logistics, and/or personnel and training requirements which have been specified in the approved system and/or CI specifications,  including any changes or effects on the operability of the system. In particular, there shall be an entry detailing any effect on interoperability.

	
  

	
(2)

	
For CSCis, the following information shall be entered as applicable to the degree of design development of the CSCI at the time of ECP submission:

	
  

	
(a)

	
Identify any required changes to the data base parameters or values, or to data base management procedures;

	
  

	
(b)

	
Identify and explain any anticipated effects of the proposed change on acceptable computer operating time and cycle-time utilization;

	
  

	
(c)

	
Provide an estimate of the net effect on computer software storage; and,

	
  

	
(d)

	
Identify and explain any other relevant impact of the proposed change on utilization of the system.

34.   Effects on configuration  item specifications.  The effect of the proposed change on performance  shall be described ln quantitative  terms as it relates to the parameters contained ln the CI development  specifications.  (See MIL-STD-961)

35.   Developmental  requirements and status.

	 	
a.

	
For hardware, when the proposed engineering change requires a major revision of the development program (e.g., new prototypes, additional design review activity, tests to be reaccomplished),  the nature of the new development program shall be described in detail, including the status of programs already begun.

	 	
b.

	
For CSCis, identify the scheduled sequence of computer software design and test activities which will be required. ECPs initiated after preliminary design which affect the FBL and/or the ABL shall identify, as appropriate, significant requirements  for computer software redesign, recoding, repetition of testing, changes to the software engineering/test environments,  special installation, adaptation, checkout, and live environment  testing. In addition, the specific impact of these factors on approved schedules shall be identified. The impact of the software change on the hardware design and input/output  cabling shall also be detailed.

36.   Date by which contractual authority is needed. Provide the date contractual authority is required in order to maintain the established schedule for:

a.     Production

b.     Retrofit

37.   Effects on product configuration  documentation,  logistics and operations. Certain information required may have been supplied in paragraphs above or does not apply to computer software. When this information has already been supplied, a cross-reference  to such information will be adequate.

	
  

	
a.

	
For hardware, if any specific logistic interoperability  factors are affected, provide information detailing the possible impact on the operational configuration.

	
  

	
b.

	
For CSCis, the software engineering and test environments  are usually not affected by changes in the product configuration of a CSCI. Provide information about the status of the software redesign and retesting effort. There shall also be a review of the intent to document CSCI impacts in these areas.

  

  

  

 

	  	
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	  	6

 

38.   Effect on product configuration documentation or contract. The effects on the approved CI product specifications  shall be described by reference to the NORs or other enclosure(s) which cover such proposed text changes in detail. The effects on drawings, when not covered previously  shall be described in general terms. Address nomenclature  change when applicable.  The effects on performance, weight-balance-stability, weight-moment,  shall also be provided when applicable.

39. Effect on acquisition  logistics support (ALS) elements. The effects of the engineering change on logistic support of the item shall be provided. These effects shall be explained in detail. The information required shall indicate the method to be used to determine the integrated logistic support plans and items which will be required for the support of the new configuration as well as retrofitting previously delivered items to the same configuration.  The following shall be covered as applicable:

	
  

	
a.

	
Effects on schedule and content of the ALS plan.

	
  

	
b.

	
Effect on maintenance  concept and plans for the levels of maintenance  and procedures.

	
  

	
c.

	
System and/or CI logistics support analysis  (LSA) tasks to be accomplished  and LSA data requiring update wherever it exists ln the contract.  (MIL-PRF-49506)

	
  

	
d.

	
Extension/revision of the interim support plan.

	
  

	
e.

	
Spares and repair parts that are changed, modified, obsoleted or added, including detailed supply data for interim support spares. NOTE: Failure to include detailed supply data will delay ECP processing.

	
  

	
f.

	
Revised or new technical manuals.

	
  

	
g.

	
Revised or new facilities requirements and site activation plan.

	
  

	
h.

	
New, revised, obsoleted or additional support equipment  (SE), test procedures and software. For items of SE and trainers which require change, furnish a cross reference to the related ECPs, and for any related ECP not furnished with the basic ECP, furnish a brief description of the proposed change(s) in SE and trainers.

	
  

	
l.

	
Qualitative and quantitative personnel requirements data which identify additions or deletions to operator or maintenance manpower in terms of personnel skill levels, knowledge and numbers required to support the CI as modified by the change.

	
  

	
J.

	
New operator and maintenance  training requirements  in terms of training equipment, trainers and training software for operator and maintenance  courses. This information should include identification  of specific courses, equipment, technical manuals, personnel, etc. required to set up the course at either the contractor or Goverrrment facility.

	
  

	
k.

	
Any effect on contract maintenance  that increases the scope or dollar limitation established in the contract.

	
  

	
l.

	
Effects on packaging, handling, storage, and transportability  resulting from changes in materials, dimensions, 

fragility, inherent environmental  or operating conditions.

40.   Effect on operational employment. The effects of the engineering change of CI utilization  shall be provided. Quantitative values shall be used whenever practicable  and are required when reliability and service life are impacted. Survivability includes nuclear survivability.  The effects of the change proposal on safety, maintainability, operating procedures, electromagnetic  interference, activation schedule critical single point failure items, and interoperability  shall also be provided, if applicable.

41.   Other considerations.  The effects of the proposed engineering change on the following shall be identified:

	
  

	
a.

	
Interfaces having an effect on adjacent or related items, (output, input, slze, mating connections,  etc.

	
  

	
b.

	
GFE or Government Furnished Data (GFD) changed, modified or obsoleted.

	
  

	
c.

	
Physical constraints. Removal or repositioning of items, structural rework, increase or decrease in overall dimensions.

	
  

	
d.

	
Software (other than operational, maintenance,  and training software) requiring a change to existing code and/or, resources or addition of new software.

 

	
  

	
e.

	
Rework required on other equipment not included previously which will effect the existing operational configuration.

	
  

	
f.

	
Additional or modified system test procedures required.

	
  

	
g.

	
Any new or additional  changes having an effect on existing warranties  or guarantees. h. Changes or updates to the parts control program.

	
  

	
l.

	
Effects on life cycle cost projections for the configuration  item or program, including projections of operation and support costs/savings  for the item(s) affected over the contractually  defined life and projections of the costs/savings to be realized in planned future production and spares buys of the item(s) affected.

42.   Alternate solutions. When applicable, provide a summary of the various alternative  solutions considered,  including the use of revised operation or maintenance procedures,  revised inspection or servicing requirements, or revised part replacement schedules. The contractor shall provide an analysis of the alternatives,  identify the advantages and disadvantages  inherent in each feasible alternative approach, and show the reasons for adopting the alternative  solution proposed by the ECP. When contractors  analysis addresses new concepts or new technology, supporting data shall be presented with the proposal to authenticate  the trade-off analysis.

  

  

  

 

	  	
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43.   Developmental  status. When applicable, make recommendations  as to the additional tests, trials, installations, prototypes, fit checks, etc., which will be required to substantiate  the proposed engineering  change. These recommendations  shall include the test objective and test vehicle(s) to be used. Indicate the development  status of the major items of GFE which will be used in conjunction with the change and the availability of the equipment in tems of the estimated production incorporation point.

44.  Recommendations  for retrofit. When applicable, make recommendations  for retrofit of the engineering change into accepted items with substantiating  data, any implications  thereto, and a brief description of the action required. Where retrofit is not recommended, an explanation of this detemination shall be provided.

	
  

	
a.

	
Work-hours per unit to install retrofit kits. Show the amount of work which must be programmed for varlous

	
  

	
activities to install retrofit kits. Estimate work-hours  to install retrofit kits when weapon system is undergoing overhaul.

	
  

	
b.

	
Work-hours  to conduct system tests after retrofit. Provide the work-hours required to test the system or the item following installation of the retrofit kit.

	
  

	
c.

	
This change must be accomplished.  Where previously approved engineering changes must be incorporated in a specific order in relation to the proposed change, such order should be specified.

	
  

	
d.

	
Is contractor field service engineering  required? If "yes" attach proposed program for contractor participation.

	
  

	
e.

	
Out of service time. Estimate the total time period from removal of the equipment from operational service until equipment will be returned to operational  status after being retrofitted.

45.   Effect of this ECP and previously approved ECPs on item. Summarize the cumulative effect upon performance, weight, electrical load, etc., of this ECP and previously approved ECPs when design limitations are being approached or exceeded. Provide consequences  of ECP disapproval.

46.   Production impact costs. Estimated costs/savings  applicable  to production of the item resulting from the change. Includes the costs of Redesign of the Cis or Components thereof, of Factory Test Equipment, of Special Factory Tooling, of Scrap, of Engineering Design, of Engineering Data Revision, of Revision of Test Procedures, and of Testing and Verification  of Performance of New Items.

47.   Retrofit impact costs: Estimated costs applicable to retrofit of the item including installation and testing costs. Includes Retrofit-specific Engineering Data Revision, Prototype Testing, Kit Proof Testing, Purchase of Retrofit Kits for Operational  Systems, Preparation of Modification  Instructions, Design and Manufacture of Special Tooling for Retrofit, Installation of Kits by contractor personnel,  Installation of Kits by government personnel, Testing after Retrofit and Modification,  and Testing and Verification  of Performance of Government Furnished Equipment/Property (GFE/GFP).

48.   Logistics support impact costs: Estimated costs/savings  of the various elements of logistics support applicable to the item. Includes Spares/Repair Parts Rework, New Spares and Repair Parts, Supply/Provisioning Data, Support Equipment, Retrofit Kit for Spares, Operator Training Courses, Maintenance Training Courses, Revision of Technical Manuals, New Technical Manuals, Training/Trainers, Interim Support, Maintenance Manpower, and Computer Programs/Documentation.

49.   Other costs/savings:  Includes estimated costs of interface changes accomplished  by other contractor activities.  (Do not include costs if the changes are covered by related ECPs by other contractors. Also includes estimated costs of interface changes accomplished  by the Government for changes which must be accomplished  in previously delivered items (aircraft, ships, facilities, etc.), other interfacing products, and/or retrofit of GFE/GFP, to the extent that such costs are not covered under production,  retrofit, or logistics support.

50. Estimated costs/savings  summary, related ECPs. Provide a summary of the estimated net total cost impact of both the ECP and any related ECPs and other associated new requirements which are needed to support the modified items broken out by categories described in paragraphs 47 through 50 above.

	
  

	
a.

	
Prime contractor. The prime contractor shall summarize the costs/savings  of all related ECPs for which the contractor is responsible.  If there is no system integrating contractor,  the prime contractor  submitting the basic ECP shall include the costs of related ECPs being submitted by other affected contractors  to the extent such information is available.

	
  

	
b.

	
System integrating contractor. When a system integrating contractor  (or coordinating contractor) has contractual responsibility  for ECP coordination,  the contractor  shall summarize the costs of related ECPs of the several primes involved in an interface or interrelated ECP.

51.   Milestones. Provide milestones that show the time phasing of the various deliveries of items, support equipment, training equipment, and documentation  incorporating  the basic and related ECPs. Enter symbols and notations to show the initiation or termination of significant actions. Base all dates upon months after contractual approval of the basic ECP.

52.   Signature. An authorized official representing  the contractor submitting the ECP shall sign the ECP.

  

  

  

 

	  	
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REQUEST FOR DEVIATION  (RFD)

This Data Delivery Description  (DDD) contains the content and preparation  instructions  for the data product resulting from the work task specified in the contract.

Requirements:

1.     Reference documents. The applicable issue of any documents cited herein, including their approval dates and dates of any applicable amendments, notices, and revisions, shall be as specified in the contract.

2.     Format and content. The Request for Deviation shall be prepared in contractor format. The RFD content shall be in accordance with the contractors processes and procedures, or as specified in the contract.

3.     Distribution  statement. The appropriate distribution  statement shall be affixed to the RFD in accordance with the requirements of the contract.

4.     Date. Provide the submittal date of the deviation.

5.     DODAAC. Provide the DODAAC of the procuring activity, if known.

6.     Procuring Activity Number (PAN). Provide the PAN of the procuring activity, if known

7.     Originator name and address. Provide the name and address of the contractor  submitting the request (inclusion of submitting individual's name is optional

8.     Classification.  The deviation shall be designated minor, maJor, or critical in accordance with the following criteria:

	 	
a.

	
Minor. A deviation shall be designated as mlnor when:

(1)   The deviation consists of a departure which does not involve any of the factors listed in Bb or Be or

(2)   When the configuration documentation defining the requirements  for the item classifies defects in requirements and the deviations consist of a departure from a requirement classified as minor.

	
  

	
b.

	
Major. A deviation shall be designated as maJor when:

(1)   The deviation consists of a departure involving:

	
  

	
(a)

	
health

	
  

	
(b)

	
performance

	
  

	
(c)

	
interchangeability, reliability, survivability, maintainability, or durability of the item or its repair parts

	
  

	
(d)

	
effective use or operation; (e) weight and size; or

	
  

	
(f)

	
appearance  (when a factor) or

	 	
(2)

	
When the configuration documentation defining the requirements  for the item classifies defects in requirements and the deviations consist of a departure from a requirement classified as major.

	
  

	
c.

	
Critical. A deviation shall be designated as critical when:

	 	
(1)

	
The deviation consists of a departure involving safety or

	 	
(2)

	
When the configuration documentation defining the requirements  for the item classifies defects in requirements and the deviations consist of a departure from a requirement classified as critical.

9.     Designation  for deviation.

	 	
a.

	
Model/Type. Provide the model or type designation of the CI for which the request lS being submitted. For CSCis provide the CSCI identification.

	 	
b.

	
CAGE Code. Provide the CAGE Code for the activity originating  the deviation.

	 	
c.

	
System designation. The system or top level CI designation or nomenclature  assigned by the Government shall be entered, if known.

10.   Deviation number. Deviation identification numbers shall be unique for each CAGE Code identified activity. Once a number is assigned, that number shall be retained for all subsequent submissions. Unless otherwise authorized by the Government, deviations shall be separately and consecutively numbered commencing with number one. As an alternative, numbers may be assigned from a separate series for each system that the contractor is producing. The number of characters in the deviation number, dash number, and type identification  shall not exceed 32.

 

  

  

  

 

	  	
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11.   Configuration baseline affected. Indicate the affected baseline  (See MIL-HDBK-61).

12.   Are other system/configuration items affected? If yes, provide summary.

13.   Title of deviation. Provide a brief descriptive  title of the deviation.

14.   Contract number and line item. Provide the number(s) of all currently active contract(s) and the affected contract line item number(s) that are affected by the deviation.

15.   Procuring contracting officer. Enter the procurlng contracting officer's name, office symbol/code, and telephone number applicable to the CI shown in paragraph 18.

16.   Configuration  item nomenclature.  Provide the Government assigned name and type designation,  if applicable, or authorized name and number of the CI to which the deviation will apply.

17.   Classification  of defect (CD).

	 	
a.

	
CD number. If either a Government or contractor's CD applies, enter the number assigned.

	 	
b.

	
Defect number. If a CD applies, enter the defect number(s) which correspond(s) with the characteristic(s) from which an authorized deviation is desired.

	 	
c.

	
Defect classification.  If a CD applies state the proper classification of the defect number(s) entered in paragraph 17b.

18.   Name of lowest part/assembly  affected. An appropriate descriptive name of the part(s) shall be given here without resorting to such tems as "Numerous bits and pieces"

19.   Part number or type designation.  Enter the part number(s) of the part(s) named ln paragraph 18 or type designation/nomenclature if applicable.

20.   Effectivity. Define the effectivity of the proposed RFD by entering, as applicable,  the quantity of items affected, the serial numbers of the items affected, or the lot number(s) applicable to the lot(s) affected by the deviation being requested.

21.   Recurring Deviation.  If this is a recurring deviation, reference the previous correspondence,  the request number, and corrective action to be taken in paragraph 27. In addition provide rationale why recurrence was not prevented by previous corrective

action and/or accomplished  design change.

22.   Effect on cost/price. Provide the estimated reduction or price adjustment.  If no change ln price, cost, or fee, so state with rationale. The request for deviation shall include the specific consideration  that will be provided to the Government if this "non-confoming" unit(s)  (See FAR Part 46.407) is accepted by the Government.

23.   Effect on delivery schedule. State the effects on the contract delivery schedule that will result from both approval and disapproval of the request for deviation.

 

24.   Effect on integrated logistics support, interface, or software. If there is no effect on logistics support or the interface, provide a statement to that effect. If the deviation will have an impact on logistics support or the interface, describe such effects.

25.    Description  of deviation. Describe the nature of the proposed departure from the technical requirements of the configuration documentation.  The deviation or waiver shall be analyzed to determine whether it affects any of the factors listed below. Describe any effect on each of these factors (marked drawings should be included when necessary to provide a better understanding  of the deviation):

 

	 	
a.

	
Effect on Product Configuration Documentation  or Contract.

	
  

	
(1)

	
Performance

  

  

  

 

	  	
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(2)

	
Weight-balance-stability (aircraft)

	
  

	
(3)

	
Weight-Moment  (other equipment)

	
  

	
(4)

	
Technical Data

	
  

	
(5)

	
Nomenclature

	 	
b.

	
Effect on Operational Employment

	
  

	
(1)

	
Safety

	
  

	
(2)

	
Survivability

	
  

	
(3)

	
Reliability

	
  

	
(4)

	
Maintainability

	
  

	
(5)

	
Service Life

	
  

	
(6)

	
Operating Procedures

	
  

	
(7)

	
Electromagnetic  Interference

	
  

	
(8)

	
Activation  Schedule

	
  

	
(9)

	
Critical Single Point Failure Items

	 	
(10)

	
Interoperability

	 	
c.

	
Other Considerations

	
  

	
(1)

	
Interface

	
  

	
(2)

	
Other Affected Equipment/Government Furnished Equipment (GFE)/Goverrrment Furnished Parts (GFP)

	 	
(3)

	
Physical Constraints

	
  

	
(4)

	
Computer Programs and Resources

	
  

	
(5)

	
Rework of other equipment

	
  

	
(6)

	
System Test Procedures

	
  

	
(7)

	
Warranty/Guarantee

	
  

	
(8)

	
Parts Control

	
  

	
(9)

	
Life Cycle Costs

26.   Need for deviation. Explain why it is impossible or unreasonable  to comply with the configuration documentation  within the specified delivery schedule. Also explain why a deviation is proposed in lieu of a permanent design change.

27.   Corrective action taken. Describe action being taken to correct non-conformance to prevent a future recurrence.

28.   Signature. The RFD shall be signed by an authorized official representing  the contractor submitting the RFD.

NOTICE OF REVISION  (NOR)

This Data Delivery Description  (DDD) contains the content and preparation  instructions  for the data product resulting from the work task specified in the contract. This DDD is used in conjunction with an Engineering Change Proposal  (ECP). A requirement  for ECPs should be contractually  imposed in conjunction with this DDD. This DDD may also be used with Specification Change Notices (SCNs). Where NORs are required for changes to paper specifications,  a requirement for SCNs may be contractually  imposed in conjunction with this DDD.

Requirements:

1.     Reference documents. The applicable issue of any documents cited herein, including their approval dates and dates of any applicable amendments, notices, and revisions, shall be as specified in the contract.

2.     Format and content. The NOR shall be prepared in contractor format. The NOR content shall be in accordance the contractors processes and procedures, or as specified ln the contract.

3.     Distribution  statement. The appropriate distribution  statement shall be affixed to the NOR ln accordance with the requirements of the contract.

4.     Date. Provide the submittal date of the NOR. Normally this date will be identical to the ECP submittal date.

  

  

  

 

	  	
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5.     DODAAC. Provide the DODAAC of the procuring activity.

6.     Procuring Activity Number (PAN). Provide the PAN of the procuring activity, if known.

7.     Originator name and address. Provide the name and address of the contractor  submitting the proposed NOR (inclusion of submitting individual's name is optional).

8.     CAGE code. Provide the CAGE code of the originator of the ECP.

9.     NOR number. Unless the use of a Government assigned number is prescribed, the originator shall either assign a number or enter the document number and new revision letter as the NOR number. When the requirement in the contract identifies the NOR by ECP number, the originator shall attach a dash number  (i.e., xxx-1).

10.     CAGE Code. Provide the CAGE Code of the original design activity that appears on the document to which the revision applies. If the original design activity is not the current design activity, also enter the CAGE code of the current design activity.

11.   Document number. Provide the number of the drawing, standard, specification,  list or other document to be revised.

12.   Title of document. Provide the title of the document to which the NOR applies.

 

13.   Revision letter. Show the existing revision of the document for which the NOR lS prepared.

14.   Outstanding NORs. Provide the NOR number of all approved unincorporated  NORs for the affected document.

15.   ECP number. Provide the number of the ECP describing the engineering change which necessitates  the document revision covered by the NOR.

16.   Configuration  item (or system) to which ECP applies. Provide Government assigned system designation  (if any); otherwise, enter the name and type designation of the Configuration  Item to which the ECP applies.

17.   Description  of change. Describe the change in detail, giving the exact wording of sentences or paragraphs that are to be added, or that are to replace designated sentences or paragraphs of the current document. State the dimensions,  tolerances and other quantitative  requirements that are to replace current requirements. Attach a marked print when necessary  to clearly explain the desired revision. Use a "From- To" format in the description of the change.SECURITIES PURCHASE AGREEMENT

This Securities Purchase Agreement (this "AGREEMENT") is dated as of November 2, 2011, among World Surveillance Group Inc., a Delaware corporation (the "COMPANY"), and the purchasers identified on the signature pages hereto (each a "PURCHASER" and collectively the "PURCHASERS"); and

 

WHEREAS, subject to the terms and conditions set forth in this Agreement and pursuant to Section 4(2) of the Securities Act (as defined below), and Rule 506 promulgated thereunder, the Company desires to issue and sell to each Purchaser, and each Purchaser, severally and not jointly, desires to purchase from the Company the aggregate number of shares of Common Stock (as defined below) set forth on such Purchaser’s signature page(s) hereto (which aggregate amount for all Purchasers shall not exceed $1,000,000 of Common Stock) and Warrants (as defined below) to purchase the aggregate number of shares of Common Stock set forth as Warrant Shares (as defined below) on such Purchaser’s signature page(s) hereto, on the Closing Date(s).

 

NOW, THEREFORE, IN CONSIDERATION of the mutual covenants contained in this Agreement, and for other good and valuable consideration the receipt and adequacy of which are hereby acknowledged, the Company and each Purchaser agrees as follows:

 

ARTICLE I. DEFINITIONS

 

1.1 DEFINITIONS. In addition to the terms defined elsewhere in this Agreement, for all purposes of this Agreement, the following terms have the meanings indicated in this Section 1.1:

 

"AFFILIATE" means, with respect to any Person, any Person that, directly or indirectly through one or more intermediaries, controls or is controlled by or is under common control with a Person as such terms are used in and construed under Rule 144. With respect to a Purchaser, any investment fund or managed account that is managed on a discretionary basis by the same investment manager as such Purchaser will be deemed to be an Affiliate of such Purchaser.

 

"BUSINESS DAY" means any day except Saturday, Sunday and any day which shall be a federal legal holiday or a day on which banking institutions in the State of Florida are authorized or required by law or other governmental action to close.

 

"CLOSING(S)" means each closing of the purchase and sale of Shares and Warrants pursuant to Sections 2.1 and 2.2.

 

"CLOSING DATE(S)" means each Trading Day when all of the Transaction Documents have been executed and delivered by the applicable parties thereto, and all conditions precedent to (i) the Purchasers' obligations to pay the Subscription Amount(s) and (ii) the Company's obligations to deliver the Shares and Warrants have been satisfied or waived.

  

  

  

"COMMISSION" means the Securities and Exchange Commission.

 

"COMMON STOCK" means the common stock of the Company, $0.00001 par value per share, and any securities into which such common stock may hereafter be reclassified.

 

"EXCHANGE ACT" means the Securities Exchange Act of 1934, as amended.

 

"LIENS" means a lien, charge, security interest, encumbrance, right of first refusal, preemptive right or other restriction.

 

"MATERIAL ADVERSE EFFECT" shall have the meaning ascribed to such term in Section 3.1(b).

 

"PER SHARE PURCHASE PRICE" equals $0.075 subject to adjustment for reverse and forward stock splits, stock dividends, stock combinations and other similar transactions of the Common Stock that occur after the date of this Agreement.

 

"PERSON" means an individual or corporation, partnership, trust, incorporated or unincorporated association, joint venture, limited liability company, joint stock company, government (or an agency or subdivision thereof) or other entity of any kind.

 

"PROCEEDING" means an action, claim, suit, investigation or proceeding (including, without limitation, an investigation or partial proceeding, such as a deposition), whether commenced or threatened.

 

“PURCHASER” means a party that executes a signature page(s) hereto and purchases Shares and Warrants pursuant to the terms and conditions of this Securities Purchase Agreement at the Initial or Subsequent Closing(s).

 

"REQUIRED APPROVALS" shall have the meaning ascribed to such term in Section 3.1(e).

 

"RULE 144" means Rule 144 promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended from time to time, or any similar rule or regulation hereafter adopted by the Commission having substantially the same effect as such Rule.

"SEC REPORTS" shall have the meaning ascribed to such term in Section 3.1(h).

 

"SECURITIES" means the Shares, the Warrants and the Warrant Shares.

 

"SECURITIES ACT" means the Securities Act of 1933, as amended.

 

"SHARES" means the shares of Common Stock issued to each Purchaser pursuant to this Agreement.

  

2

  

"SUBSCRIPTION AMOUNT(S)" means, as to each Purchaser, the amount(s) set forth below such Purchaser's signature block on the signature page(s) hereto, which amount shall be equal to the number of Shares being purchased by such Purchaser hereunder multiplied by the Per Share Purchase Price, in United States dollars and in immediately available funds.

 

"SUBSIDIARY" shall mean the subsidiaries of the Company, if any, set forth in the SEC Reports.

 

"TRADING DAY" means (i) a day on which the Common Stock is traded on a Trading Market, or (ii) if the Common Stock is not quoted on a Trading Market, a day on which the Common Stock is quoted in the over-the-counter market as reported by OTC Group Markets Inc. (or any similar organization or agency succeeding its functions of reporting prices); provided, that in the event that the Common Stock is not listed or quoted as set forth in (i) and (ii) hereof, then Trading Day shall mean a Business Day.

 

"TRADING MARKET" means the following markets or exchanges on which the Common Stock is listed or quoted for trading on the date in question: The Pink Sheets, the OTC Bulletin Board, the New York Stock Exchange, the NASDAQ Global Select Market, the NASDAQ Global Market or the NASDAQ Capital Market.

 

"TRANSACTION DOCUMENTS" means this Agreement, the Warrants and any other documents or agreements executed in connection with the transactions contemplated hereunder.

 

"WARRANTS" means the Common Stock Purchase Warrants, in the form of Exhibit A hereto, issuable to the Purchasers at the Closing(s), which warrants shall be exercisable immediately upon issuance for a term of 36 months at a per share exercise price equal to $0.21.

 

"WARRANT SHARES" means the shares of Common Stock issuable upon exercise of the Warrants. The aggregate number of Warrant Shares for which a Warrant shall be issued to each Purchaser shall be equal to 100% of the number of shares of Common Stock purchased by such Purchaser on the applicable Closing Date(s).

 

ARTICLE II. PURCHASE AND SALE

 

2.1 INITIAL CLOSING.

On the terms and subject to the conditions set forth in this Agreement, on the initial Closing Date (the “Initial Closing”), each Purchaser shall purchase from the Company, severally and not jointly with the other Purchasers, and the Company shall issue and sell to each Purchaser, (a) a number of Shares equal to such Purchaser's Subscription Amount divided by the Per Share Purchase Price and (b) a Warrant for a number of Warrant Shares, each as set forth on such Purchaser’s initial signature page hereto. Upon satisfaction of the conditions set forth in Section 2.3, the Initial Closing shall occur at the offices of the Company or such other location as the parties shall mutually agree.

  

3

  

2.2 SUBSEQUENT CLOSING(S).

Subsequent to the Initial Closing, the Purchasers may purchase additional Shares and Warrants (up to an aggregate total value of $1,000,000 when combined with the value of the Shares and Warrants in the Initial Closing) on the same terms and conditions as the Initial Closing and as set forth herein (each, a “Subsequent Closing”).

2.3 CLOSING CONDITIONS; DELIVERIES.

 

(a) As a condition to each of the Purchaser’s obligations hereunder, on each Closing Date (unless otherwise noted below), the Company shall deliver or cause to be delivered to each such Purchaser the following:

 

(i) this Agreement duly executed by the Company (on the date of the Initial Closing only);

 

(ii) a stock certificate evidencing that number of Shares equal to such Purchaser's Subscription Amount (for that number of Shares as are being purchased by such Purchaser at such Closing) divided by the Per Share Purchase Price as set forth on such Purchaser’s signature page hereto, registered in the name of such Purchaser; and

 

(iii) a Warrant, registered in the name of such Purchaser, pursuant to which such Purchaser shall have the right to acquire that number of Warrant Shares, as set forth on such Purchaser’s signature page hereto.

 

(b) As a condition to the Company’s obligations hereunder, on each Closing Date, each Purchaser shall deliver or cause to be delivered to the Company the following:

 

(i) this Agreement duly executed by such Purchaser; and

 

(ii) such Purchaser's Subscription Amount (for that number of Shares as are being purchased by such Purchaser at such Closing) by wire transfer of immediately available funds to the account of the Company in accordance with the Company’s written wire transfer instructions as set forth in Schedule 1 hereto.

 

(c) As a condition to a party’s (the Company’s or each Purchaser’s, as the case may be) obligations hereunder, all representations and warranties of the other party (the Purchasers or the Company, as the case may be) contained herein shall be true and correct in all material respects as of each Closing Date.

 

(d) As a condition to a party’s (the Company’s or each Purchaser’s, as the case may be) obligations hereunder, all obligations, covenants and agreements of the other party (the Purchasers or the Company, as the case may be) required to be performed, satisfied or complied with at or prior to each Closing Date shall have been performed, satisfied or complied with as of such Closing Date.

  

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(e) As a condition to the respective obligations hereto of each Purchaser and the Company, any approvals or authorizations of all United States and other governmental, regulatory or judicial authorities required for the consummation of the transactions contemplated hereby shall have been obtained or made and shall be in full force and effect and all waiting periods required by United States and other applicable law shall have expired, if any, and no provision of any applicable United States or other law and no judgment, injunction, order or decree of any governmental entity shall prohibit the purchase and sale of the Securities as contemplated by this Agreement on each Closing Date.

ARTICLE III. REPRESENTATIONS AND WARRANTIES

 

3.1 REPRESENTATIONS AND WARRANTIES OF THE COMPANY. Except as set forth in the SEC Reports, the Company hereby makes the following representations and warranties as of the date hereof and as of each Closing Date to each Purchaser:

 

(a) SUBSIDIARIES. All of the subsidiaries of the Company are set forth in the SEC Reports. Except as set forth in the SEC Reports, the Company owns, directly or indirectly, all of the capital stock or other equity interests of each Subsidiary free and clear of any Liens, and all the issued and outstanding shares of capital stock of each Subsidiary are validly issued and are fully paid, non-assessable and free of preemptive and similar rights to subscribe for or purchase securities

 

(b) ORGANIZATION. The Company is an entity duly incorporated or otherwise organized, validly existing and in good standing under the laws of the jurisdiction of its incorporation or organization (as applicable), with the requisite power and authority to own and use its properties and assets and to carry on its business as currently conducted, except as has not and would not reasonably be expected to have (i) a material adverse effect on the legality, validity or enforceability of any Transaction Document, (ii) a material adverse effect on the results of operations, assets, business or financial condition of the Company and the Subsidiaries, taken as a whole, or (iii) a material adverse effect on the Company's ability to perform in any material respect on a timely basis its obligations under any Transaction Document (any of (i), (ii) or (iii), a "MATERIAL ADVERSE EFFECT") and no Proceeding has been instituted in any such jurisdiction revoking, limiting or curtailing or seeking to revoke, limit or curtail such power and authority.  The Company is not in violation or default of any of the provisions of its certificate of incorporation, bylaws or other organizational documents.

  

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(c) AUTHORIZATION; ENFORCEMENT. The Company has the requisite corporate power and authority to enter into and to consummate the transactions contemplated by each of the Transaction Documents and otherwise to carry out its obligations thereunder. The execution and delivery of each of the Transaction Documents by the Company and the consummation by it of the transactions contemplated thereby have been duly authorized by all necessary action on the part of the Company and no further action is required by the Company in connection therewith other than in connection with the Required Approvals. Each Transaction Document has been (or upon delivery will have been) duly executed by the Company and, when delivered in accordance with the terms hereof, will constitute the valid and binding obligation of the Company enforceable against the Company in accordance with its terms except (i) as limited by applicable bankruptcy, insolvency, reorganization, moratorium and other laws of general application affecting enforcement of creditors' rights generally, (ii) as limited by laws relating to the availability of specific performance, injunctive relief or other equitable remedies, and (iii) in so far as indemnification and contribution provisions may be limited by applicable law.

 

(d) NO CONFLICTS. The execution, delivery and performance of the Transaction Documents by the Company, the issuance and sale of the Shares and the consummation by the Company of the other transactions contemplated thereby do not and will not (i) conflict with or violate any provision of the Company's certificate of incorporation, bylaws or other organizational or charter documents, or (ii) conflict with, or constitute a default (or an event that with notice or lapse of time or both would become a default) under, result in the creation of any Lien upon any of the properties or assets of the Company, or give to others any rights of termination, amendment, acceleration or cancellation (with or without notice, lapse of time or both) of, any agreement, credit facility, debt or other instrument (evidencing a Company debt or otherwise) or other understanding to which the Company is a party or by which any property or asset of the Company is bound or affected, or (iii) subject to the Required Approvals, conflict with or result in a violation of any law, rule, regulation, order, judgment, injunction, decree or other restriction of any court or governmental authority to which the Company is subject (including federal and state securities laws and regulations), or by which any property or asset of the Company is bound or affected; except in the case of each of clauses (ii) and (iii), such as has not had nor would reasonably be expected to result in a Material Adverse Effect.

 

(e) FILINGS, CONSENTS AND APPROVALS. The Company is not required to obtain any consent, waiver, authorization or order of, give any notice to, or make any filing or registration with, any court or other federal, state, local or other governmental authority or other Person in connection with the execution, delivery and performance by the Company of the Transaction Documents, other than (i) filings required pursuant to Sections 4.2 and 4.4 of this Agreement, (ii) filings pursuant to the Exchange Act, and (iii) the filing of Form D with the Commission and such filings as are required to be made under applicable state securities laws (collectively, the "REQUIRED APPROVALS").

 

(f) ISSUANCE OF THE SECURITIES. The Securities are duly authorized and, when issued and paid for in accordance with the Transaction Documents, will be duly and validly issued, fully paid and nonassessable, free and clear of all Liens. The issuance of the Shares is not subject to any preemptive or similar rights to subscribe for or purchase securities. The Company has reserved from its duly authorized capital stock the maximum number of shares of Common Stock issuable pursuant to this Agreement and the Warrants.

  

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(g) CAPITALIZATION. All of the outstanding shares of capital stock of the Company are validly issued, fully paid and nonassessable, have been issued in compliance with all federal securities laws, and none of such outstanding shares was issued in violation of any preemptive rights or similar rights to subscribe for or purchase securities. No further approval or authorization of any stockholder or the Board of Directors of the Company is required for the issuance and sale of the Securities. Except as disclosed in the SEC Reports, there are no stockholders agreements, voting agreements or other similar agreements with respect to the Company's capital stock to which the Company is a party or, to the knowledge of the Company, between or among any of the Company's stockholders.

 

(h) SEC REPORTS; FINANCIAL STATEMENTS. The Company has filed all reports required to be filed by it under the Exchange Act, including pursuant to Section 13(a) or 15(d) thereof, for the year preceding the date hereof  (the foregoing materials, including the exhibits and schedules thereto, being collectively referred to herein as the "SEC REPORTS").

 

(i) INTERNAL ACCOUNTING CONTROLS. Except as set forth in the SEC Reports, the Company maintains a system of internal accounting controls sufficient to provide reasonable assurance that (i) transactions are executed in accordance with management's general or specific authorizations, (ii) transactions are recorded as necessary to permit preparation of financial statements in conformity with GAAP and to maintain asset accountability, (iii) access to assets is permitted only in accordance with management's general or specific authorization, and (iv) the recorded accountability for assets is compared with the existing assets at reasonable intervals and appropriate action is taken with respect to any differences. Except as set forth in the SEC Reports, the Company has established disclosure controls and procedures (as defined in Exchange Act Rules 13a-14 and 15d-14) for the Company and designed such disclosure controls and procedures to ensure that material information relating to the Company is made known to the certifying officers by others within the Company, particularly during the period in which the Company's most recently filed period report under the Exchange Act, as the case may be, is being prepared. The Company's certifying officers have evaluated the effectiveness of the Company's controls and procedures as of a date within 90 days prior to the filing date of the most recently filed periodic report under the Exchange Act (such date, the "EVALUATION DATE"). The Company presented in its most recently filed period report under the Exchange Act the conclusions of the certifying officers about the effectiveness of the disclosure controls and procedures based on their evaluations as of the Evaluation Date.

(j) INVESTMENT COMPANY. The Company is not, and is not an Affiliate of, and immediately after receipt of payment for the Shares, will not be or be an Affiliate of, an "investment company" within the meaning of the Investment Company Act of 1940, as amended.

 

(k) APPLICATION OF TAKEOVER PROTECTIONS. The Company and its Board of Directors have not implemented any poison pill (including any distribution under a rights agreement) or other similar anti-takeover provision under the Company's Certificate of Incorporation (or similar charter documents) or the laws of its state of incorporation.

  

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(l) DISCLOSURE. Other than the terms of the transactions contemplated by this Agreement, the Company confirms that, neither the Company nor, to its knowledge, any other Person acting on its behalf, has provided any of the Purchasers or their agents or counsel with any information that constitutes material, non-public information.  All disclosure provided to the Purchasers by or on behalf of the Company regarding the Company, its business and the transactions contemplated hereby, at the times provided, is true and correct in all material respects, does not contain any untrue statement of a material fact and does not omit to state any material fact necessary in order to make the statements made, in light of the circumstances under which they were made, not misleading. None of the Company’s SEC Reports for the year preceding the date hereof, at the time each was filed, contained any untrue statements of a material fact or omitted to state any material fact required to be stated therein or as necessary in order to make the statements contained in such SEC Report, in light of the circumstances under which they were made, not misleading.

 

(m) GENERAL SOLICITATION. Neither the Company, nor to the Company’s knowledge, any Person acting on behalf of the Company, has offered or sold any of the Securities by any form of general solicitation or general advertising (within the meaning of Regulation D promulgated pursuant to the Securities Act) or taken any action which, assuming the accuracy of the Purchasers’ representations and warranties set forth in Section 3.2 hereof, would subject the offering, issuance or sale of any of the Securities to the registration requirements of the Securities Act. The Company has offered the Securities for sale only to the Purchasers and certain other "accredited investors" within the meaning of Rule 501 under the Securities Act.

 

(n) FOREIGN CORRUPT PRACTICES. Neither the Company, nor to the knowledge of the Company, any agent or other person acting on behalf of the Company, has (i) directly or indirectly, used any corrupt funds for unlawful contributions, gifts, entertainment or other unlawful expenses related to foreign or domestic political activity, (ii) made any unlawful payment to foreign or domestic government officials or employees or to any foreign or domestic political parties or campaigns from corporate funds, (iii) failed to disclose fully any contribution made by the Company (or made by any person acting on its behalf of which the Company is aware) which is in violation of law, or (iv) violated in any material respect any provision of the Foreign Corrupt Practices Act of 1977, as amended.

 

(o) ACKNOWLEDGMENT REGARDING PURCHASERS' PURCHASE OF SHARES. The Company acknowledges and agrees that each of the Purchasers is acting solely in the capacity of an arm's length purchaser with respect to the Transaction Documents and the transactions contemplated thereby. The Company further acknowledges that, to its knowledge, no Purchaser is acting as a financial advisor or fiduciary of the Company (or in any similar capacity) with respect to this Agreement and the transactions contemplated hereby.

  

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(p)  PLACEMENT AGENT.  No broker, finder or investment banker is entitled to any financial advisory, brokerage, finder’s or other fee or commission in connection with this Agreement or the Warrant or the transactions contemplated hereby or thereby based upon arrangements made by the Company, other than Basis Financial, LLC, North Miami Beach, Florida (“Basis”). Basis and the Company have entered into an Investment Banking Agreement dated October 27, 2011 (the “Basis Agreement”), whereby, for a term of three months, which term may be extended by the Company for an additional three months, Basis has agreed to provide the Company certain financial advisory services and to assist in this or other securities offerings. Basis is serving as the placement agent in connection with the offer and sale of the Securities (the “Placement Agent”). For its services, Basis is entitled to receive a ten (10) percent cash and a five (5) percent stock commission from the Company, which shares shall be restricted pursuant to Rule 144 promulgated pursuant to the Securities Act, and valued at $0.075 per share, on all principal money raised on behalf of the Company for which closings have occurred pursuant solely to performance by Basis of the Services in accordance with the terms of the Basis Agreement.

The Purchasers each acknowledge and agree that the Company does not make and has not made any representations and warranties with respect to the transactions contemplated hereby other than those specifically set forth in this Section 3.1.

3.2 REPRESENTATIONS AND WARRANTIES OF THE PURCHASERS. Each Purchaser hereby, for such Purchaser and for no other Purchaser, represents and warrants as of the date hereof and as of each Closing Date to the Company as follows:

 

(a) ORGANIZATION; AUTHORITY. Such Purchaser is an individual or an entity duly organized, validly existing and in good standing under the laws of the jurisdiction of its organization with full right, corporate or partnership power and authority to enter into and to consummate the transactions contemplated by the Transaction Documents and otherwise to carry out its obligations hereunder and thereunder. The execution, delivery and performance by such Purchaser of the Transaction Documents and the transactions contemplated hereby and thereby have been duly and validly authorized by all necessary corporate or similar action on the part of such Purchaser. Each Transaction Document to which it is party has been duly executed by such Purchaser, and when delivered by such Purchaser in accordance with the terms hereof and thereof, will constitute the valid and legally binding obligation of such Purchaser, enforceable against it in accordance with its terms, except (i) as limited by general equitable principles and applicable bankruptcy, insolvency, reorganization, moratorium and other laws of general application affecting enforcement of creditors' rights generally, (ii) as limited by laws relating to the availability of specific performance, injunctive relief or other equitable remedies and (iii) insofar as indemnification and contribution provisions may be limited by applicable law.

  

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(b) INVESTMENT INTENT. Such Purchaser understands that the Securities are "restricted securities" and have not been registered under the Securities Act or any applicable state securities law and may not be offered for sale, sold, assigned or transferred unless (i) subsequently registered under the Securities Act, or (ii) such Purchaser shall have delivered to the Company an opinion of counsel in a form acceptable to the Company to the effect that such Securities to be sold, assigned or transferred may be sold, assigned or transferred pursuant to an exemption from such registration, or (iii) such Purchaser provides the Company with assurances and proper documentation including an opinion of counsel that such Securities can be sold, assigned or transferred pursuant to Rule 144 or Rule 144A promulgated under the Securities Act (or a successor rule thereto).   Such Purchaser is acquiring the Securities as principal for its own account for investment purposes only and not with a view to or for distributing or reselling such Securities or any part thereof, has no present intention of distributing any of such Securities and has no arrangement or understanding with any other Persons regarding the distribution of such Securities (this representation and warranty not limiting such Purchaser's right to sell the Securities in compliance with applicable federal and state securities laws). Such Purchaser is acquiring the Securities hereunder in the ordinary course of its business. Such Purchaser does not have any agreement or understanding, directly or indirectly, with any Person to distribute any of the Securities (this representation and warranty not limiting such Purchaser's right to sell the Securities in compliance with applicable federal and state securities laws).  Such Purchaser understands that any sale of the Securities made in reliance on Rule 144 may be made only in accordance with the terms of Rule 144, and further, if Rule 144 is not applicable, any resale of the Securities under circumstances in which the seller (or the Person through whom the sale is made) may be deemed to be an underwriter (as that term is defined in the Securities Act) may require compliance with some other exemption under the Securities Act or the rules and regulations of the SEC promulgated thereunder.  Such Purchaser further understands that neither the Company nor any other Person is under any obligation whatsoever to register the Securities under the Securities Act or any state securities laws or to comply with the terms and conditions of any exemption thereunder.

 

(c) PURCHASER STATUS. At the time such Purchaser was offered the Securities, it was, and at the date hereof and as of each Closing Date, it is, an "accredited investor" as defined in Rule 501(a) under the Securities Act. Such Purchaser is not required to be registered as a broker-dealer under Section 15 of the Exchange Act.

 

(d) EXPERIENCE OF SUCH PURCHASER. Such Purchaser, either alone or together with its representatives, has such knowledge, sophistication and experience in business and financial matters so as to be capable of evaluating the merits and risks of the prospective investment in the Securities, and has so evaluated the merits and risks of such investment. Such Purchaser is able to bear the economic risk of an investment in the Securities and, at the present time, is able to afford a complete loss of such investment.

 

(e) GENERAL SOLICITATION. Such Purchaser is not purchasing the Securities as a result of any advertisement, article, notice, website posting or other communication regarding the Securities published in any newspaper, magazine or similar media or broadcast over television, internet or radio or presented at any seminar or any other general solicitation or general advertisement.

  

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(f) RELIANCE ON EXEMPTIONS.  Such Purchaser understands that the Securities are being offered and sold to it in reliance on specific exemptions from the registration requirements of the United States federal and state securities laws and that the Company is relying on the truth and accuracy of, and such Purchaser’s compliance with, the representations, warranties, agreements, acknowledgements and understandings of such Purchaser set forth herein in order to determine the availability of such exemptions and the eligibility of  such Purchaser to acquire the Securities.

(g) INFORMATION.  Such purchaser understands that comprehensive information concerning the Company is contained in the Company’s SEC Reports, which are available from the Securities and Exchange Commission via the Internet at http://www.sec.gov/edgar/searchedgar/companysearch.html.  Such Purchaser and its advisors have been furnished with all additional information relating to the business, finances and operations of the Company and all materials relating to the offer and sale of the Securities that have been requested by such Purchaser.  Such Purchaser and its advisor have been afforded the opportunity to ask questions of the Company and have received answers to such questions that such Purchaser and its advisor deem responsive and complete.  Such Purchaser understands that its investment in the Securities involves a high degree of risk.  Such Purchaser has sought such accounting, legal and tax advice as it has considered necessary to make an informed investment decision with respect to its acquisition of the Securities. Such Purchaser understands that, as Placement Agent, Basis has not undertaken any independent investigation of any information either contained in the Company’s SEC Reports or provided separately by the Company to Basis, or provided to such Purchaser by Basis, and that Basis is entitled to rely on the accuracy and completeness of all such information in the SEC Reports or provided to it by the Company.  Such Purchaser has, in connection with its decision to purchase the Securities, relied with respect to the Company and its affairs solely on the SEC Reports and the representations and warranties of the Company contained herein.

(h) NO GOVERNMENTAL REVIEW.  Such Purchaser understands that no United States federal or state agency or any other government or governmental agency has passed on or made any recommendation or endorsement of the Securities or the fairness or suitability of the investment in the Securities nor have such authorities passed upon or endorsed the merits of the offering of the Securities.

 

(i) NO CONFLICTS.  The execution, delivery and performance by such Purchaser of this Agreement and the Transaction Documents and the consummation by such Purchaser of the transactions contemplated hereby and thereby will not (i) conflict with or result in a violation of the organizational documents of such Purchaser, (ii) conflict with, or constitute a default (or an event which with notice or lapse of time or both would become a default) under, or give to others any rights of termination, amendment, acceleration or cancellation (with or without notice, the lapse of time or both) of, any agreement, indenture or instrument to which such Purchaser is a party, or (iii) result in a violation of any law, rule, regulation, order, judgment or decree (including federal and state securities laws) applicable to such Purchaser, except in the case of clauses (ii) and (iii) above, for such conflicts, defaults, rights or violations which have not had and would not, individually or in the aggregate, reasonably be expected to have a material adverse effect on the ability of such Purchaser to perform its obligations hereunder.

  

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(j) CERTAIN TRADING ACTIVITIES. Such Purchaser has not directly or indirectly, nor has any Person acting on behalf of or pursuant to any understanding with such Purchaser, (i) engaged in any short sales (as defined in Rule 200 promulgated under the Exchange Act) or (ii) engaged in any market manipulation, involving the Company’s securities during the period commencing as of the time that such Purchaser was first contacted by the placement agent or the Company, as the case may be, regarding the specific investment in the Company contemplated by this Agreement and ending immediately prior to the execution of this Agreement by such Purchaser, except as set forth in filings made with the Commission pursuant to Section 16 of the Exchange Act.

The Company acknowledges and agrees that each Purchaser does not make or has not made any representations or warranties with respect to the transactions contemplated hereby other than those specifically set forth in this Section 3.2.

 

ARTICLE IV. OTHER AGREEMENTS OF THE PARTIES

 

4.1 TRANSFER RESTRICTIONS.

 

(a) The Purchasers hereby agree that the Securities may only be disposed of in compliance with state and federal securities laws. In connection with any transfer of Securities other than pursuant to an effective registration statement or Rule 144, to the Company or to an Affiliate of a Purchaser, the Company shall require the transferor thereof to provide to the Company an opinion of counsel, the form and substance of which opinion shall be satisfactory to the Company, to the effect that such transfer does not require registration of such transferred Securities under the Securities Act. As a condition of transfer, any such transferee shall agree in writing to be bound by the terms of this Agreement and shall have the rights and obligations of a Purchaser under this Agreement.

 

(b) The Purchasers agree to the imprinting, so long as is required by this Section 4.1(b), of a legend on any of the Securities in the following form:

 

THESE SECURITIES HAVE NOT BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), AND, ACCORDINGLY, MAY NOT BE TRANSFERRED, OFFERED, SOLD OR OTHERWISE DISPOSED OF EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS AS EVIDENCED BY A LEGAL OPINION OF COUNSEL TO THE TRANSFEROR TO SUCH EFFECT, THE SUBSTANCE OF WHICH SHALL BE ACCEPTABLE TO THE COMPANY.

  

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In addition, the Purchasers agree that all certificates or other instruments representing the Warrant will also bear a legend substantially to the following effect:

THIS INSTRUMENT IS ISSUED SUBJECT TO THE RESTRICTIONS ON TRANSFER AND OTHER PROVISIONS OF A SECURITIES PURCHASE AGREEMENT BETWEEN THE ISSUER OF THESE SECURITIES AND THE PURCHASER REFERRED TO THEREIN, A COPY OF WHICH IS ON FILE WITH THE ISSUER.  THE SECURITIES REPRESENTED BY THIS INSTRUMENT MAY NOT BE SOLD OR OTHERWISE TRANSFERRED EXCEPT IN COMPLIANCE WITH SAID AGREEMENT.  ANY SALE OR OTHER TRANSFER NOT IN COMPLIANCE WITH SAID AGREEMENT WILL BE VOID.

 (c) Certificates evidencing the Shares and Warrant Shares shall not be required to contain any legend (including the legend set forth in Section 4.1(b)), (i) while a registration statement covering the resale of such security is effective under the Securities Act, or (ii) following any sale of such Shares or Warrant Shares pursuant to Rule 144 (assuming the transferor is not an affiliate of the Company), or (iii) if such Shares or Warrant Shares are eligible for sale under Rule 144 (provided that a Purchaser provides the Company with reasonable assurances and proper documentation including an opinion of counsel that such Securities are eligible for sale, assignment or transfer under Rule 144), or (iv) if such legend is not required under applicable requirements of the Securities Act (including judicial interpretations and pronouncements issued by the Staff of the Commission). If all or any portion of a Warrant is exercised at a time when there is an effective registration statement to cover the resale of the Warrant Shares, such Warrant Shares shall be issued free of all legends. The Company agrees that following such time as such legend is no longer required under this Section 4.1(c), it will, following the delivery by a Purchaser to the Company or the Company's transfer agent of a certificate representing Shares or Warrant Shares, as the case may be, issued with a restrictive legend (such date, the "LEGEND REMOVAL DATE") (endorsed or with stock powers attached, signature guaranteed, and otherwise in a form necessary to affect the reissuance and/or transfer, if applicable) and proper documentation, including an opinion of counsel when required, related thereto, deliver or cause to be delivered to such Purchaser a certificate representing such Securities that is free from all restrictive and other legends. The Company may not make any notation on its records or give instructions to any transfer agent of the Company that enlarge the restrictions on transfer set forth in this Section.

 

(d) Each Purchaser, severally and not jointly with the other Purchasers, agrees that the removal of the restrictive legend from certificates representing Securities as set forth in this Section 4.1 is predicated upon the Company's reliance that the Purchaser will sell any Securities pursuant to either the registration requirements of the Securities Act, including any applicable prospectus delivery requirements, or an exemption therefrom, and that such legends will be removed only with proper documentation, including an opinion of counsel when required, provided to the Company or its transfer agent.

  

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4.2 FURNISHING OF INFORMATION. As long as any Purchaser owns Securities, the Company covenants to timely file (or obtain extensions in respect thereof and file within the applicable grace period) all reports required to be filed by the Company after the date hereof pursuant to the Exchange Act. As long as any Purchaser owns Securities, if the Company is not required to file reports pursuant to the Exchange Act, it will prepare and furnish to the Purchasers and make publicly available in accordance with Rule 144(c) such information as is required for the Purchasers to sell the Securities under Rule 144.

4.3 INTEGRATION. The Company shall not sell, offer for sale or solicit offers to buy or otherwise negotiate in respect of any security (as defined in Section 2 of the Securities Act) that would be integrated with the offer or sale of the Securities in a manner that would require the registration under the Securities Act of the sale of the Securities to the Purchasers or that would be integrated with the offer or sale of the Securities for purposes of the rules and regulations of any Trading Market such that it would require shareholder approval prior to the closing of such other transaction unless shareholder approval is obtained before the closing of such subsequent transaction.

 

4.4 SECURITIES LAWS DISCLOSURE; PUBLICITY. If required by the rules promulgated under the Exchange Act or other securities laws or those of a Trading Market, the Company shall issue a press release or file a Current Report on Form 8-K relating to the transactions contemplated hereby.  No Purchaser shall issue any press release or otherwise make any public statement regarding the Transaction Documents or the transactions contemplated hereby without the prior written consent of the Company, except if such disclosure is required by law, in which case such Purchaser shall promptly provide the Company with prior notice of such public statement or communication. Notwithstanding the foregoing, the Company shall not publicly disclose the name of any Purchaser, or include the name of any Purchaser in any filing with the Commission or any regulatory agency or Trading Market, without the prior written consent of such Purchaser, except (i) as required by federal securities law and (ii) to the extent such disclosure is required by law or Trading Market regulations.

 

4.5 SHAREHOLDERS RIGHTS PLAN. No claim will be made or enforced by the Company or, to the knowledge of the Company, any other Person that any Purchaser is an "Acquiring Person" under any shareholders rights plan or similar plan or arrangement in effect or hereafter adopted by the Company, or that any Purchaser could be deemed to trigger the provisions of any such plan or arrangement, by virtue of receiving Securities under the Transaction Documents. The Company shall conduct its business in a manner so that it will not become subject to the Investment Company Act.

 

4.6 NON-PUBLIC INFORMATION. The Company covenants and agrees that neither it nor, to its knowledge, any other Person acting on its behalf will provide any Purchaser with any information that the Company believes constitutes material non-public information, unless prior thereto such Purchaser shall have consented thereto or executed a written agreement regarding the confidentiality and use of such information.

  

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4.7 USE OF PROCEEDS. The Company shall use the net proceeds from the sale of the Securities hereunder for working capital purposes.

 

4.8 RESERVATION OF COMMON STOCK. As of the date hereof, the Company has reserved and the Company shall continue to reserve and keep available at all times, free of preemptive rights, a sufficient number of shares of Common Stock for the purpose of enabling the Company to issue Shares pursuant to this Agreement and Warrant Shares pursuant to any exercise of the Warrants.

 

4.09 QUOTING OF COMMON STOCK. The Company hereby agrees to use commercially reasonable efforts to maintain the quoting of the Common Stock on the OTCBB.

4.10 COMMERCIALLY REASONABLE EFFORTS.  Subject to the terms and conditions of this Agreement, each of the parties will use its commercially reasonable efforts in good faith to take, or cause to be taken, all actions, and to do, or cause to be done, all things necessary, proper or desirable, or advisable under applicable laws, so as to permit consummation of the transactions contemplated hereby as promptly as practicable and otherwise to enable consummation of the transactions contemplated hereby and shall use commercially reasonable efforts to cooperate with the other party to that end.

ARTICLE V. MISCELLANEOUS

 

5.1 FEES AND EXPENSES. Unless otherwise provided herein or in the Transaction Documents, each party shall pay all the fees and expenses of its advisers, counsel, accountants and other experts, if any, and all other expenses incurred by such party incident to the negotiation, preparation, execution, delivery and performance of this Agreement and the Transaction Documents and the consummation of the transactions contemplated hereby and thereby. The Company shall pay all stamp and other taxes and duties levied in connection with the sale of the Securities.

 

5.2 ENTIRE AGREEMENT. The Transaction Documents, together with the exhibits and schedules thereto, contain the entire understanding of the parties with respect to the subject matter hereof and supersede all prior agreements and understandings, oral or written, with respect to such matters, which the parties acknowledge have been merged into such documents, exhibits and schedules.  Except as specifically set forth herein or in any of the Transaction Documents, neither the Company nor any Purchaser makes any representations, warranties, covenants and undertakings with respect to the matters set forth herein.

  

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5.3 NOTICES. Any and all notices or other communications or deliveries required or permitted to be provided hereunder shall be in writing and shall be deemed given and effective on the earliest of (a) the date of transmission, if such notice or communication is delivered via facsimile at the facsimile number set forth on the signature pages attached hereto prior to 6:30 p.m. (Orlando, FL time) on a Trading Day, (b) the next Trading Day after the date of transmission, if such notice or communication is delivered via facsimile at the facsimile number set forth on the signature pages attached hereto on a day that is not a Trading Day or later than 6:30 p.m. (Orlando, FL time) on any Trading Day, (c) the second Trading Day following the date of mailing, if sent by U.S. nationally recognized overnight courier service, or (d) upon actual receipt by the party to whom such notice is required to be given. The address for such notices and communications shall be as set forth on the signature pages attached hereto.

 

5.4 AMENDMENTS; WAIVERS. No provision of this Agreement may be waived or amended except in a written instrument signed, in the case of an amendment, by the Company and each Purchaser or, in the case of a waiver, by the party against whom enforcement of any such waiver is sought. No waiver of any default with respect to any provision, condition or requirement of this Agreement shall be deemed to be a continuing waiver in the future or a waiver of any subsequent default or a waiver of any other provision, condition or requirement hereof, nor shall any delay or omission of either party to exercise any right hereunder in any manner impair the exercise of any such right.

 

5.5 CONSTRUCTION. The headings herein are for convenience only, do not constitute a part of this Agreement and shall not be deemed to limit or affect any of the provisions hereof. The language used in this Agreement will be deemed to be the language chosen by the parties to express their mutual intent, and no rules of strict construction will be applied against any party. Each and every reference to share prices, shares of Common Stock and any other numbers in this Agreement that relate to the Common Stock, shall automatically be adjusted for stock splits, stock combinations and other similar transactions that occur with respect to the Common Stock after the date of this Agreement.

5.6 SUCCESSORS AND ASSIGNS. This Agreement shall be binding upon and inure to the benefit of the parties and their respective successors and permitted assigns. The Company may not assign this Agreement, any Transaction Document or all or any of its rights or obligations hereunder and thereunder without the prior written consent of each Purchaser, except an assignment in the case of a business combination where the Company is not the surviving entity, or a sale of all or substantially all of the assets of the Company, to the entity which is the survivor of such business combination or the purchaser in such sale. No Purchaser may assign this Agreement, any Transaction Document or any or all of its rights or obligations hereunder and thereunder without the prior written consent of the Company; provided, however, that any Purchaser may assign any or all of its rights under this Agreement or the Transaction Documents to any Person to whom such Purchaser assigns or transfers any Securities, provided such transfer is in compliance with all federal and state securities laws and the transferee agrees in writing to be bound, with respect to the transferred Securities, by the provisions hereof and of the Transaction Documents that apply to the "Purchasers".

  

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5.7 NO THIRD-PARTY BENEFICIARIES. This Agreement is intended for the benefit of the parties hereto and their respective successors and permitted assigns and is not for the benefit of, nor may any provision hereof be enforced by, any other Person.

5.8 GOVERNING LAW. All questions concerning the construction, validity, enforcement and interpretation of the Transaction Documents shall be governed by and construed and enforced in accordance with the internal laws of the State of Delaware, without regard to the principles of conflicts of law thereof. Each party agrees that all legal proceedings concerning the interpretations, enforcement and defense of the transactions contemplated by this Agreement and any other Transaction Documents (whether brought against a party hereto or its respective affiliates, directors, officers, shareholders, employees or agents) shall be commenced exclusively in the state and federal courts sitting in Brevard County, Florida. Each party hereto hereby irrevocably submits to the exclusive jurisdiction of the state and federal courts sitting in Brevard County, Florida, for the adjudication of any dispute hereunder or in connection herewith or with any transaction contemplated hereby or discussed herein (including with respect to the enforcement of any of the Transaction Documents), and hereby irrevocably waives, and agrees not to assert in any suit, action or proceeding, any claim that it is not personally subject to the jurisdiction of any such court, that such suit, action or proceeding is improper. Each party hereto hereby irrevocably waives personal service of process and consents to process being served in any such suit, action or proceeding by delivering a copy thereof via overnight delivery (with evidence of delivery) to such party at the address in effect for notices to it under this Agreement and agrees that such service shall constitute good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit in any way any right to serve process in any manner permitted by law. Each party hereto (including its affiliates, agents, officers, directors and employees) hereby irrevocably waives, to the fullest extent permitted by applicable law, any and all right to trial by jury in any legal proceeding arising out of or relating to this Agreement, any of the Transaction Documents or the transactions contemplated hereby. If either party shall commence an action or proceeding to enforce any provisions of a Transaction Document, then the prevailing party in such action or proceeding shall be reimbursed by the other party for its attorneys' fees and other costs and expenses incurred with the investigation, preparation and prosecution of such action or proceeding.

 

5.9 SURVIVAL. The representations and warranties herein shall survive each Closing and delivery of the Shares and Warrant Shares.

 

5.10 EXECUTION. This Agreement may be executed in two or more counterparts, all of which when taken together shall be considered one and the same agreement and shall become effective when counterparts have been signed by each party and delivered to the other party, it being understood that both parties need not sign the same counterpart. In the event that any signature is delivered by facsimile transmission or by an email which contains a portable document format (.pdf) file of an executed signature page, such signature shall create a valid and binding obligation of the party executing (or on whose behalf such signature is executed) with the same force and effect as if such facsimile or .pdf file signature page were an original thereof.

  

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5.11 SEVERABILITY. If any provision of this Agreement is held to be invalid or unenforceable in any respect, the provision that would otherwise be invalid or unenforceable shall be deemed amended to apply to the broadest extent that it would be valid and enforceable and the validity and enforceability of the remaining terms and provisions of this Agreement shall not in any way be affected or impaired thereby.

 

5.12 REPLACEMENT OF SECURITIES. If any certificate or instrument evidencing any Securities is mutilated, lost, stolen or destroyed, the Company shall issue or cause to be issued in exchange and substitution for and upon cancellation thereof, or in lieu of and substitution therefore, a new certificate or instrument, but only upon receipt of evidence satisfactory to the Company of such loss, theft or destruction and customary and reasonable indemnity, if requested. The applicants for a new certificate or instrument under such circumstances shall also pay any reasonable third-party costs associated with the issuance of such replacement Securities.

 

5.13 REMEDIES. In addition to being entitled to exercise all rights provided herein or granted by law, including recovery of damages, each of the Purchasers and the Company will be entitled to specific performance under the Transaction Documents. The parties agree that monetary damages may not be adequate compensation for any loss incurred by reason of any breach of obligations described in the foregoing sentence and hereby agrees to waive in any action for specific performance of any such obligation the defense that a remedy at law would be adequate.

 

5.14 HEADINGS; GENDER.  The headings of this Agreement are for convenience of reference and shall not form part of, or affect the interpretation of this Agreement.   Unless the context clearly indicates otherwise, each pronoun herein shall be deemed to include the masculine, feminine, neuter, singular and plural forms thereof.  The terms “including,” “includes,” “include” and words of like import shall be construed as broadly as if followed by the words “without limitation.”  The terms “herein,” “hereunder,” “hereof” and words of like import refer to this entire Agreement instead of just the provision in which they are found.

5.15 INDEPENDENT NATURE OF PURCHASERS' OBLIGATIONS AND RIGHTS. The obligations of each Purchaser under any Transaction Document are several and not joint with the obligations of any other Purchaser, and no Purchaser shall be responsible in any way for the performance of the obligations of any other Purchaser under any Transaction Document. Nothing contained herein or in any Transaction Document, and no action taken by any Purchaser pursuant thereto, shall be deemed to constitute the Purchasers as a partnership, an association, a joint venture or any other kind of entity, or create a presumption that the Purchasers are in any way acting in concert or as a group with respect to such obligations or the transactions contemplated by the Transaction Documents. Each Purchaser shall be entitled to independently protect and enforce its rights, including without limitation, the rights arising out of this Agreement or out of the other Transaction Documents, and it shall not be necessary for any other Purchaser to be joined as an additional party in any proceeding for such purpose. Each Purchaser has been represented by its own separate legal counsel in its review and negotiation of the Transaction Documents

  

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5.16 FURTHER ASSURANCES.  Each party shall do and perform, or cause to be done and performed, all such further acts and things, and shall execute and deliver all such other agreements, certificates, instruments and documents, as any other party may reasonably request in order to carry out the intent and accomplish the purposes of this Agreement and the Transaction Documents and the consummation of the transactions contemplated.

(SIGNATURE PAGES FOLLOW)

  

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IN WITNESS WHEREOF, the parties hereto have caused this Securities Purchase Agreement to be duly executed by their respective authorized signatories as of the date first indicated above.

 

	
WORLD SURVEILLANCE GROUP INC.

	  
	
By:

	
/s/ Glenn Estrella

	
Name:  

	
Glenn Estrella

	
Title:

	
President and Chief Executive Officer

Address for Notice:

Personal or Courier Delivery:

World Surveillance Group Inc.

State Road 405, Building M6-306A, Room 1400

Kennedy Space Center, FL 32815

Attn: General Counsel

Mail Delivery:

World Surveillance Group Inc.

Mail Code : SWC

Kennedy Space Center, FL 32899

Attn: General Counsel

Fax: 321-452-8965

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK - SIGNATURE PAGES FOR PURCHASERS FOLLOW]

  

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IN WITNESS WHEREOF, the undersigned have caused this Securities Purchase Agreement to be duly executed by their respective authorized signatories as of the date first indicated above.

 

	
PURCHASER NAME:

	  
	
By:

	
/s/ Michael K. Clark

	
Name:  

	
Michael K. Clark

	
Title:

	
 

ADDRESS FOR NOTICE

157 Beach 135 Street

Belle Harbor, NY 11694

Attn:  Michael K. Clark

Fax:

Subscription Amount:

$ 99,999.98

Shares: 1,333,333

Warrant Shares: @ $0.21 = 1,333,333

  

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IN WITNESS WHEREOF, the undersigned have caused this Securities Purchase Agreement to be duly executed by their respective authorized signatories as of the date first indicated above.

 

	
PURCHASER NAME:

	  
	
By:

	
/s/ Glenn D. Estrella

	
Name:  

	
Glenn D. Estrella

	
Title:

	
 

ADDRESS FOR NOTICE

1608 Sheridan Drive

Wall Township, NJ 07753

Attn:  Glenn D. Estrella

Fax:

Subscription Amount:

$ 9,999.98

Shares: 133,333

Warrant Shares: @ $0.21 = 133,333

  

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IN WITNESS WHEREOF, the undersigned have caused this Securities Purchase Agreement to be duly executed by their respective authorized signatories as of the date first indicated above.

 

	
PURCHASER NAME:

	  
	
By:

	
  

	
Name:  

	
  

	
Title:

	
  

ADDRESS FOR NOTICE

Attn: 

Fax:

Subscription Amount:

$ _______________

Shares: ______________

Warrant Shares: @ $0.21 = ______________

  

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SCHEDULE 1

Wire Transfer Instructions of Company

World Surveillance Group Inc.

State Road 405, Building M6-306A, Room 1400

Kennedy Space Center, FL 32815

Bank FIRST

1031 W. Morse Blvd.

Winter Park, FL 32789

ABA:  063113808

ACCT # 100054410

  

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