Lockheed Martin Corporation

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Lockheed Martin Corporation

FAR AND OTHER FLOWDOWN PROVISIONS (FA8528-07-D-0015) Last Revised 11/22/2006

A. INCORPORATION OF CLAUSES

The Federal Acquisition Regulation (FAR) clauses, the Department of Defense FAR Supplement (DFARS) clauses, the Air Force Materials Command FAR Supplement (AFMC FARS) clauses, the Air Force Joint Air Logistics Center FAR Supplement (JALC FARS) clauses, the Air Force FAR Supplement (AFFARS) clauses and the Special Provisions referenced below are incorporated herein by reference, with the same force and effect as if they were given in full text, and apply, including any notes following the clause citation, to this Contract. If the date or substance of any of the clauses listed below is different from the date or substance of the clause actually incorporated in the Prime Contract referenced by number herein, the date or substance of the clause incorporated by said Prime Contract shall apply instead. The Contracts Disputes Act shall have no application to this Contract. Any reference to a “Disputes” clause shall mean the “Disputes” clause of this Contract.

B. GOVERNMENT SUBCONTRACT

This Contract is entered into by the parties in support of a U.S. Government Contract.

As used in the FAR and other clauses referenced below and otherwise in this Contract:

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

2. “Contract” means this Contract.

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

4. “Contractor” and “Offeror” means the SELLER acting as the immediate (first-tier) subcontractor to LOCKHEED MARTIN.

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

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

C. NOTES

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

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

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

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

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

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

7. Insert “or LOCKHEED MARTIN Procurement Representative” after “Contracting Officer”, throughout the clause.

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

E. PRESERVATION OF THE GOVERNMENT’S RIGHTS

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

F. FAR FLOWDOWN CLAUSES

1. The following FAR clauses apply to this Contract:

(a) 52.204-2 SECURITY REQUIREMENTS (AUG 1996) (Applies when access to classified information may be required)

(b) 52.211-5 MATERIAL REQUIREMENTS (AUG 2000) (Note 2 applies)

(c) 52.211-15 DEFENSE PRIORITY AND ALLOCATION REQUIREMENTS (SEP1990)

(d) 52.215-20 REQUIREMENTS FOR COST OR PRICING DATA OR INFORMATION OTHER THAN COST OR PRICING DATA (OCT 1997) (Note 2 applies)

(e) 52.215-21 REQUIREMENTS FOR COST OR PRICING DATA OR INFORMATION OTHER THAN COST OR PRICING DATA - MODIFICATIONS (OCT 1997) (Note 2 applies) (Applies where certified cost or pricing data is not required)

(f) 52.216-26 PAYMENT OF ALLOWABLE COST BEFORE DEFINITIATION (DEC 2002)

(g) 52.219-8 UTILIZATION OF SMALL BUSINESS CONCERNS (MAY 2004)

(h) 52.222-21 PROHIBITION OF SEGREGATED FACILITIES (FEB 1999)

(i) 52.222-2 PAYMENT FOR OVERTIME PREMIUMS (JUL 1990) Overtime premium does not exceed $0.00

(j) 52.222-26 EQUAL OPPORTUNITY (APR 2002)

(k) 52.222-50 COMBATING TRAFFICKING IN PERSONS (APR 2006) (Applies to all Contracts for acquisition of services)

(l) 52.223-3 HAZARDOUS MATERIAL IDENTIFICATION AND MATERIAL SAFETY DATA (JAN 1997)

(m) 52.224-1 PRIVACY ACT NOTIFICATION (APR 1984)

(n) 52.224-2 PRIVACY ACT (APR 1984)

(o) 52.225-13 RESTRICTIONS ON CERTAIN FOREIGN PURCHASES (FEB 2006)

(p) 52.228-3 WORKERS’ COMPENSATION INSURANCE (DEFENSE BASE ACT) (APR 1984)

(q) 52.228-5 INSURANCE—WORK ON A GOVERNMENT INSTALLATION (JAN 1997) (Applies to Contracts when work will be performed on a Government installation)

(r) 52.232-17 INTEREST (JUN 1996) (Applies to Contracts that include FAR clauses that expressly refer to an Interest clause, e.g., FAR 52.216-16 or -7)

(s) 52.234-1 INDUSTRIAL RESOURCES DEVELOPED UNDER DEFENSE PRODUCTION ACT TITLE III (DEC 1994) (Notes 1 and 2 apply) (t) 52.242-13 BANKRUPTCY (JUL 1995) (Notes 1and 2 apply)

(u) 52.242-15 STOP-WORK ORDER (AUG 1989) (Applies to fixed price contracts)

(v) 52.243-1 CHANGES - FIXED PRICE (AUG 1987), ALTERNATE I (APR 1984) and ALTERNATE II (APR 1984) (Notes 1 and 2 apply)

(w) 52.244-6 SUBCONTRACTS FOR COMMERCIAL ITEMS (FEB 2006)

(x) 52.246-2 INSPECTION OF SUPPLIES - FIXED PRICE (AUG 1996) (Note 2 applies. Note 3 applies, except in paragraph (b) the second time “Government” appears; (f), (h), (j), and (l) where Note 1 applies)

(y) 52.246-2 INSPECTION OF SUPPLIES – FIXED PRICE (AUG 1996) ALTERNATE I (Applies to fixed-price incentive contracts)

(z) 52.246-4 INSPECTION OF SERVICES - FIXED PRICE (AUG 1996) (Note 3 applies, except in paragraphs (e) and (f) where Note 1 applies)

(aa) 52.246-15 CERTIFICATE OF CONFORMANCE (APR 1984) (Applies where Contractor makes direct shipments to Government and there is no acceptance by Lockheed Martin)

(bb) 52.247-64 PREFERENCE FOR PRIVATELY OWNED U.S. FLAG COMMERCIAL VESSELS (APR 2003)

(cc) 52.249-2 TERMINATION FOR CONVENIENCE OF THE GOVERNMENT (FIXED-PRICE) (MAY 2004) (Notes 1 and 2 apply. Note 4 applies to the first time “Government” appears in paragraphs (b)(4) and (b)(6), it applies to all of paragraph (b)(8) and it applies to the second time “Government” appears in paragraph (d). In paragraph (n) “Government” means “LOCKHEED MARTIN and the Government”. In paragraph (c) “120 days” is changed to “60 days”. In paragraph (d) “15 days” is changed to “30 days”, and “45 days” is changed to “60 days”. In paragraph (e) “1 year” is changed to “6 months”. Paragraph (j) is deleted. In paragraph (l) “90 days” is changed to “45 days”. Settlements and payments under this clause may be subject to the approval of the Contracting Officer)

(dd) 52.249-8 DEFAULT (FIXED-PRICE SUPPLY AND SERVICE) (APR 1984) (Notes 1 and 2 apply, except Note 1 is not applicable to paragraph (c). Note 4 applies to the second and third time “Government” appears in paragraph (d). Timely performance is a material element of this Contract)

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

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

3. The following FAR clause applies if the value of this Contract equals or exceeds $100,000:

(a) 52.203-6 RESTRICTIONS ON SUBCONTRACTOR SALES TO THE GOVERNMENT (JUL 1995)

(b) 52.203-7 ANTI-KICKBACK PROCEDURES (JUL 1995)

(c) 52.203-8 CANCELLATION, RESCISSION, AND RECOVERY OF FUNDS FOR ILLEGAL OR IMPROPER ACTIVITY (JAN 1997)

(d) 52.203-10 PRICE OR FEE ADJUSTMENT FOR ILLEGAL OR IMPROPER ACTIVITY (JAN 1997)

(e) 52.203-12 LIMITATION ON PAYMENTS TO INFLUENCE CERTAIN FEDERAL TRANSACTIONS (SEP 2005)

(f) 52.215-2 AUDIT AND RECORDS-NEGOTIATION (JUN 1999)

(g) 52.215-14 INTEGRITY OF UNIT PRICES (OCT 1997) (Paragraph (b) is deleted with Alt.1)

(h) 52.215-14 INTEGRITY OF UNIT PRICES (OCT 1997) (Alt.1 applies when contracting without full and open competition) (i) 52.222-4 CONTRACT WORK HOURS AND SAFETY STANDARDS ACT - OVERTIME COMPENSATION (JUL 2005) (Applies to Contracts that may require or involve employment of laborers and mechanics)

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

(k) 52.222-37 EMPLOYMENT REPORTS ON SPECIAL DISABLED VETERANS, VETERANS OF THE VIETNAM ERA, AND OTHER ELIGIBLE VETERANS (DEC 2001)

(l) 52.222-39 NOTIFICATION OF EMPLOYEE RIGHTS CONCERNING PAYMENT OF UNION DUES OR FEES (DEC 2004)

(m) 52.223-14 TOXIC CHEMICAL RELEASE REPORTING (AUG 2003) (Note 2 applies; Delete paragraph (e))

(n) 52.227-2 NOTICE AND ASSISTANCE REGARDING PATENT AND COPYRIGHT INFRINGEMENT (AUG 1996) (Notes 2 and 4 apply)

(o) 52.248-1 VALUE ENGINEERING (FEB 2000) (Note 1 applies, except in paragraphs (c)(5) and (m), where Note 3 applies and except in (b)(3) where Note 4 applies, and where “Government” precedes “cost” throughout. Note 2 applies); ALTERNATE I (APR 1984)

4. The following FAR clause applies if the value of this Contract equals or exceeds $500,000:

a) 52.219-9 SMALL BUSINESS SUBCONTRACTING PLAN (JUL 2005) (Applies if subcontractor is not a small business. Note 2 applies to paragraph (c) only. Subcontractor's subcontracting plan is incorporated herein by reference)

5. The following FAR clauses apply if the value of this Contract equals or exceeds $550,000:

(a) 52.215-12 SUBCONTRACTOR COST OR PRICING DATA (OCT 1997) (Applies if negotiated when FAR 52.215-10 is included and cost or pricing data is required)

(b) 52.215-13 SUBCONTRACTOR COST OR PRICING DATA - MODIFICATIONS (OCT 1997) (Applies to modifications if not otherwise exempt under FAR 15.403)

6. The following FAR clauses apply as indicated:

(a) 52.204-2 SECURITY REQUIREMENTS (AUG 1996) (Applies if Work requires access to classified information)

(b) 52.215-10 PRICE REDUCTION FOR DEFECTIVE COST OR PRICING DATA (OCT 1997) (Applies if cost or pricing data is required. Notes 2 and 4 apply except the first time “Contracting Officer” appears in paragraph (c)(1). Rights and obligations survive completion of the Work and final payment under this Contract)

(c) 52.215-11 PRICE REDUCTION FOR DEFECTIVE COST OR PRICING DATA - MODIFICATIONS (OCT 1997) (Applies if cost or pricing data is required for modifications. Notes 2 and 4 apply except the first time “Contracting Officer” appears in paragraph (d)(1). Rights and obligations under this clause survive completion of Work and final payment)

(d) 52.215-15 PENSION ADJUSTMENTS AND ASSET REVERSIONS (OCT 2004) (Applies if subcontract meets requirements of FAR 15.408(g). Note 5 applies)

(e) 52.215-16 FACILITIES CAPITAL COST OF MONEY (JUN 2003) (Applies only if Contract is subject to Cost Principles at FAR Subpart 31.2 and Contractor proposed facilities capital cost of money in its offer)

(f) 52.215-17 WAIVER OF FACILITIES CAPITAL COST OF MONEY (OCT 1997) (Applies only if Contract is subject to Cost Principles at FAR Subpart 31.2 and Contractor did not propose facilities capital cost of money in its offer)

(g) 52.215-18 REVERSION OR ADJUSTMENT OF PLANS FOR POST-RETIREMENT BENEFITS (PRB) OTHER THAN PENSIONS (JUL 2005) (Applies if Contract meets requirements of FAR 15.408(j). Note 5 applies)

(h) 52.215-19 NOTIFICATION OF OWNERSHIP CHANGES (OCT 1997) (Applies if Contract meets requirements of FAR 15.408(k). Note 5 applies) (i) 52.223-3 HAZARDOUS MATERIAL IDENTIFICATION AND MATERIAL SAFETY DATA (JAN 1997) (Applies if Contract involves hazardous material. Notes 2 and 3 apply, except for paragraph (f) where Note 4 applies)

(j) 52.223-7 NOTICE OF RADIOACTIVE MATERIALS (JAN 1997) (Applies to Work containing covered radioactive material. In the blank insert “30”. Notes 1 and 2 apply)

(k) 52.223-11 OZONE-DEPLETING SUBSTANCES (MAY 2001) (Applies to Contracts for supplies that contain or are manufactured with ozone-depleting substances)

(l) 52.225-1 BUY AMERICAN ACT—SUPPLIES (JUN 2003) (Applies if Work contains other than domestic components. Note 2 applies to the first time “Contracting Officer” is mentioned in paragraph (c))

(m) 52.225-5 TRADE AGREEMENTS (OCT 2004) (Applies if Work contains other than U.S. made, designated country, Caribbean or NAFTA country end products)

(n) 52.225-8 DUTY FREE ENTRY (FEB 2000) (Applies if supplies will be imported into Customs Territory of United States. Note 2 applies)

(o) 52.227-1 AUTHORIZATION AND CONSENT (JUL 1995) (Applies when Prime Contract contains this clause)

(p) 52.227-9 REFUND OF ROYALTIES (APR 1984) (Applies when reported royalty exceeds $250. Note 1 applies except for the first two times “Government” appears in paragraph (d). Note 2 applies)

(q) 52.227-10 FILING OF PATENT APPLICATIONS-CLASSIFIED SUBJECT MATTER (APR 1984) (Applies if Work or any patent application may cover classified subject matter)

(r) 52.227-11 PATENT RIGHTS-RETENTION BY THE CONTRACTOR (SHORT FORM) (JUN 1997) (Applies if Contract includes, at any tier, experimental, developmental, or research Work and contractor is a small business concern or domestic nonprofit organization. Reports required by this clause shall be filed with agency identified in Contract. If no agency is identified, contact LOCKHEED MARTIN Procurement Representative identified on face of Contract)

(s) 52.227-12 PATENT RIGHTS-RETENTION BY THE CONTRACTOR (LONG FORM) (JAN 1997) (Applies if Contract includes, at any tier, experimental, developmental, or research Work and contractor is a large business concern. Reports required by this clause shall be filed with agency identified in Contract. If no agency is identified, contact LOCKHEED MARTIN Procurement Representative identified on face of Contract)

(t) 52.228-5 INSURANCE – WORK ON A GOVERNMENT INSTALLATION (JAN 1997) (Applies if Contract involves Work on a Government installation. Note 2 applies. Note 4 applies to paragraph (b). Unless otherwise specified, the minimum kinds and amount of insurance shall be as described in FAR 28.307-2)

(u) 52.230-2 COST ACCOUNTING STANDARDS (APR 1998) (When referenced in this Contract, full CAS coverage applies. “United States” means “United States or LOCKHEED MARTIN.” Delete paragraph (b))

(v) 52.230-3 DISCLOSURE AND CONSISTENCY OF COST ACCOUNTING PRACTICES (APR 1998) (When referenced in this Contract, modified CAS coverage applies. “United States” means “United States or LOCKHEED MARTIN”. Delete paragraph (b))

(w) 52.230-6 ADMINISTRATION OF COST ACCOUNTING STANDARDS (APR 2005) (Applies if FAR 52.230-2, -3 or -5 applies)

(x) 52.232-16 PROGRESS PAYMENTS (APR 2003) (Applies to Contracts that include progress payments)

(y) 52.233-3 PROTEST AFTER AWARD (AUG 1996) (In the event LOCKHEED MARTIN’s customer has directed LOCKHEED MARTIN to stop performance of the Work under the Prime Contract under which this Contract is issued pursuant to FAR 33.1, LOCKHEED MARTIN may, by written order to Contractor, direct Contractor to stop performance of the Work called for by this Contract.“30 days” means “20 days” in paragraph (b)(2). Note 1 applies except the first time “Government” appears in paragraph (f). In paragraph (f) add after “33.104(h)(1)” the following: “and recovers those costs from LOCKHEED MARTIN”) (z) 52.237-2 PROTECTION OF GOVERNMENT BUILDINGS, EQUIPMENT AND VEGETATION (APR 1984) (Applies if Work is performed on a Government installation. Note 2 applies. Note 4 applies the second time “Government” appears in the clause)

(aa) 52.243-6 CHANGE ORDER ACCOUNTING (APR 1984) (Applies if Prime Contract requires Change Order Accounting. Note 2 applies)

(bb) 52.245-2 GOVERNMENT PROPERTY (FIXED-PRICE CONTRACTS) (DEVIATION) (MAY 2004) - Alternate I (APR 1984) (Applicable if Government property is furnished in performance of this Contract).. “Contracting Officer" means "Buyer" except in paragraph (f) where it means "Buyer and Contracting Officer" and "Government" means "Buyer" except in the phrases "Government property" and “Government furnished property" and in reference to title to property. The following is added as paragraph (m): "Contractor shall give Buyer immediate notice of any disapproval, withdrawal of approval, or nonacceptance by the Government of Contractor's property control system.

(cc) 52.245-5 GOVERNMENT PROPERTY (COST-REIMBURSEMENT, TIME-AND-MATERIAL, OR LABOR- HOUR CONTRACTS) (DEVIATION) (MAY 2004)

(dd) 52.245-9 USE AND CHARGES (AUG 2005) (Applies where Government facilities will be provided)

(ee) 52.245-17 SPECIAL TOOLING (MAY 2004) (Applies if Contract involves use of Special Tooling. Note 2 applies, except paragraph (b). Note 1 applies to paragraph (d)(1) and (d)(3) and (m) where “Government” appears the last time and in paragraph (f)(1). In paragraph (j) change “180 days” to “240 days” and “90 days” to “150 days”. In (j)(ii) remove “prime” before “Contractor” in the last sentence)

(ff) 52.245-18 SPECIAL TEST EQUIPMENT (FEB 1993) (Applies if Contract involves acquisition or fabrication of Special Test Equipment. Note 2 applies to paragraphs (b) and (d). Note 5 applies. In paragraphs (b) and (c), change “30 days” to “60 days”)

(gg) 52.247-63 PREFERENCE FOR U.S.-FLAG AIR CARRIERS (JUN 2003) (Applies if Contract involves international air transportation)

(hh) 52.247-67 SUBMISSION OF TRANSPORTATION DOCUMENTS FOR AUDIT (FEB 2006) (Applies to cost- reimbursement contracts)

(ii) 52.249-4 TERMINATION FOR CONVENIENCE OF THE GOVERNMENT (SERVICES) (SHORT FORM) (APR 1984)

G. DFARS FLOWDOWN CLAUSES

1. The following DFARS clauses apply to this Contract :

(a) 252.211-7003 ITEM IDENTIFICATION AND VALUATION (JUN 2005) (Applies to Contracts that require delivery under Prime Contract of subassemblies, components, and parts embedded within certain identified items listed in Prime Contract. Requirements may be included in Contract technical provisions, e.g., statement of work)

(b) 252.217-7028 OVER AND ABOVE WORK (DEC 1991)

(c) 252.223-7001 HAZARD WARNING LABELS (DEC 1991)

(d) 252.223-7002 SAFETY PRECAUTIONS FOR AMMUNITION AND EXPLOSIVES (MAY 1994)

(e) 252.223-7003 CHANGE IN PLACE OF PERFORMANCE – AMMUNITION AND EXPLOSIVES (DEC 1991)

(f) 252.223-7007 SAFEGUARDING SENSITIVE CONVENTIONAL ARMS, AMMUNITION AND EXPLOSIVES (SEP 1999)

(g) 252.225-7014 PREFERENCE FOR DOMESTIC SPECIALTY METALS ALTERNATE I (APR 2003) (Applies if Work to be furnished contains specialty metals)

(h) 252.225-7015 RESTRICTION ON ACQUISITION OF HAND OR MEASURING TOOLS (JUN 2005) (Applies to Contracts requiring delivery of hand or measuring tools) (i) 252.225-7016 RESTRICTION ON ACQUISITION OF BALL AND ROLLER BEARINGS (MAR 2006) (Applies to Contracts for items that contain ball or roller bearings)

(j) 252.225-7025 RESTRICTION OF ACQUISITION OF FORGINGS (JUL 2006)

(k) 252.227-7013 RIGHTS IN TECHNICAL DATA - NON-COMMERCIAL ITEMS (NOV 1995) (Applies in Contracts that require delivery of technical data)

(l) 252.227-7014 RIGHTS IN NON-COMMERCIAL COMPUTER SOFTWARE AND NON-COMMERCIAL COMPUTER SOFTWARE DOCUMENTATION (JUN 1995)

(m) 252.227-7016 RIGHTS IN BID OR PROPOSAL INFORMATION (JUN 1995)

(n) 252.227-7019 VALIDATION OF ASSERTED RESTRICTIONS - COMPUTER SOFTWARE (JUN 1995)

(o) 252.227-7025 LIMITATIONS ON THE USE OR DISCLOSURE OF GOVERNMENT-FURNISHED INFORMATION MARKED WITH RESTRICTIVE LEGENDS (JUN 1995) (For paragraph (c)(1), note 3 applies)

(p) 252.227-7026 DEFERRED DELIVERY OF TECHNICAL DATA OR COMPUTER SOFTWARE (APR 1988) (Applies if deferred delivery of data will be acquired from Contractor. Note 1 applies)

(q) 252.227-7028 TECHNICAL DATA OR COMPUTER SOFTWARE PREVIOUSLY DELIVERED TO THE GOVERNMENT (JUN 1995) (The definitions for “contract” and “subcontract” shall not apply, except for the first reference to contract. Note 4 applies)

(r) 252.227-7030 TECHNICAL DATA - WITHHOLDING OF PAYMENT (MAR 2000) (Notes 1 and 2 apply to (a); Note 4 applies to (b))

(s) 252.227-7037 VALIDATION OF RESTRICTIVE MARKINGS ON TECHNICAL DATA (SEP 1999)

(t) 252.228-7005 ACCIDENT REPORTING AND INVESTIGATION INVOLVING AIRCRAFT, MISSILES, AND SPACE LAUNCH VEHICLES (DEC 1991) (In paragraph (a) note 5 applies. In paragraph (b) Note 3 applies)

(u) 252.231-7000 SUPPLEMENTAL COST PRINCIPLES (DEC 1991)

(v) 252.243-7001 PRICING OF CONTRACT MODIFICATIONS (DEC 1991)

(w) 252.246-7000 MATERIAL INSPECTION AND RECEIVING REPORT (MAR 2003) (Applies to Contracts that authorize direct shipment to Government)

(x) 252.247-7024 NOTIFICATION OF TRANSPORTATION OF SUPPLIES BY SEA (MAR 2000) (Applies if Contract meets criteria in paragraph (b) (2) (ii) of the clause. Notes 1 and 2 apply)

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

(a) 252.203-7001 PROHIBITION ON PERSONS CONVICTED OF FRAUD OR OTHER DEFENSE CONTRACT-RELATED FELONIES (DEC 2004) (In this clause, the terms “contract,” “contractor”, and “subcontract” shall not change in meaning in paragraphs (a) thru (d). Delete paragraph (g). Note 5 applies)

(b) 252.243-7002 REQUESTS FOR EQUITABLE ADJUSTMENT (MAR 1998)

(c) 252.247-7023 TRANSPORTATION OF SUPPLIES BY SEA (MAY 2002) (Applies in lieu of FAR 52.247-64 in all Contracts for ocean transportation of supplies. In first sentence of paragraph (g), insert a period after “Contractor” and delete the balance of the sentence. Paragraph (f) and (g) shall not apply if this Contract is at or below $100,000. Notes 1 and 2 apply to paragraph (g))

(d) 252.247-7024 NOTIFICATION OF TRANSPORTATION OF SUPPLIES BY SEA (MAR 2002)

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

(a) 252.225-7004 REPORTING OF CONTRACT PERFORMANCE OUTSIDE THE UNITED STATES (APR 2003) (Delete paragraph (c)) (b) 252.225-7006 QUARTERLY REPORTING OF ACTUAL CONTRACT PERFORMANCE OUTSIDE THE UNITED STATES (JUN 2005)

(c) 252.226-7001 UTILIZATION OF INDIAN ORGANIZATIONS, INDIAN-OWNED ECONOMIC ENTERPRISES, AND NATIVE HAWAIIAN SMALL BUSINESS CONCERNS (SEP 2004)

(d) 252.249-7002 NOTIFICATION OF ANTICIPATED CONTRACT TERMINATION OR REDUCTION (DEC 1996) (Note 2 applies. Delete paragraph (d) (1) and the first five words of paragraph (d) (2))

4. The following DFARS clauses apply if the value of this Contract equals or exceeds $1,000,000:

(a) 252.211-7000 ACQUISITION STREAMLINING (DEC 1991) (Note 1 applies)

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

(a) 252.215-7000 PRICING ADJUSTMENTS (DEC 1991) (Apply if FAR 52.215-12 or 52.215-13 applies to this Contract)

(b) 252.219-7003 SMALL, SMALL DISADVANTAGED AND WOMEN-OWNED SMALL BUSINESS SUBCONTRACTING PLAN (DoD CONTRACTS) (APR 1996) (Applies if FAR 52.219-9 applies to this Contract; Delete paragraph (g))

(c) 252.223-7001 HAZARD WARNING LABELS (DEC 1991) (Applies if Contract requires delivery of hazardous materials)

(d) 252.223-7002 SAFETY PRECAUTIONS FOR AMMUNITION AND EXPLOSIVES (MAY 1994) (Applies only if articles furnished under this Contract contain ammunition or explosives, including liquid and solid propellants. Notes 2, 3, and 5 apply to paragraphs g(1)(i) and e(1)(ii). Note 3 applies. Delete “prime” in g(1)(ii) and add “and LOCKHEED MARTIN Procurement Representative”. Delete in g(1)(ii) “substituting its name for references to the Government”)

(e) 252.223-7003 CHANGE IN PLACE OF PERFORMANCE - AMMUNITION AND EXPLOSIVES (DEC 1991) (Applies if DFARS 252.223-7002 applies. Notes 2 and 4 apply)

(f) 252.223-7007 SAFEGUARDING SENSITIVE CONVENTIONAL ARMS, AMMUNITION, AND EXPLOSIVES (SEP 1999) (Applies if Contract is for development, production, manufacture, or purchase of arms, ammunition, and explosives or when arms, ammunition, and explosives will be provided to Contractor as Government Furnished Property)

(g) 252.225-7001 BUY AMERICAN ACT AND BALANCE OF PAYMENTS PROGRAM (JUN 2005)

(h) 252.225-7012 PREFERENCE FOR CERTAIN DOMESTIC COMMODITIES (JUN 2004)

(i) 252.225-7013 DUTY-FREE ENTRY (JUN 2006) (Applies to Contracts requiring duty-free entry into the United States)

(j) 252.225-7016 RESTRICTION ON ACQUISITION OF BALL AND ROLLER BEARINGS (MAY 2004) (Applies if Work supplied contains ball or roller bearings. Note 2 applies)

(k) 252.225-7021 TRADE AGREEMENTS (JUN 2004) (Applies if Work contains other than domestic components. Applies in lieu of FAR 52.225-1 and FAR 52.225-5)

(l) 252.225-7033 WAIVER OF UNITED KINGDOM LEVIES (APR 2003) (Applies if Contract is with a United Kingdom firm. Note 2 applies; Note 3 applies to (c)(3))

(m) 252.225-7043 ANTI-TERRORISM/FORCE PROTECTION POLICY FOR DEFENSE CONTRACTORS OUTSIDE THE UNITED STATES (MAR 2006) (Applies in Contracts that may involve travel or performance outside the U.S.). For paragraph (c), see applicable information cited in DFARS 225.7401)

(n) 252.235-7003 FREQUENCY AUTHORIZATION (DEC 1991) (Applies in Contracts requiring development, production, construction, testing, or operation of a device for which a radio frequency authorization is required. Note 2 applies)

(o) 252.242-7005 COST/SCHEDULE STATUS REPORT (MAR 2005) (Applies when cost/schedule status reports are required) (p) 252.245-7001 REPORTS OF GOVERNMENT PROPERTY (MAY 1994) (Applies if Government Property is provided or acquired under this Contract. Contractor shall submit required reports to LOCKHEED MARTIN. In paragraph (a)(3), change October 31 to October 10)

(q) 252.242-7003 APPLICATION FOR U.S. GOVERNMENT SHIPPING DOCUMENTATION/INSTRUCTIONS (DEC 1991) (Applies if shipments will be made via Government bills of lading)

H. AFMC FARS FLOWDOWN CLAUSES

The following AFMC FARS clause applies to this Contract:

(a) 5352.245-9004 BASE SUPPORT—ALTERNATE I (JUL 1997)

I. JALC FARS FLOWDOWN CLAUSES

The following JALC FARS clauses apply to this Contract:

(a) 9952.237-9001 CONTRACTOR IDENTIFICATION (MAR 2003) (Applies to all Work performed on a Government installation)

(b) 9952.237-9002 CONTRACT HOLIDAYS (MAR 2003) (Applies to Contractors performing work on a Government installation)

J. AFFARS FLOWDOWN CLAUSES

The following AFFARS clauses apply to this Contract:

(a) 5352.223-9000 ELIMINATION OF USE OF CLASS I OZONE DEPLETING SUBSTANCES 5352.223-9001 HEALTH AND SAFETY ON GOVERNMENT INSTALLATIONS (JUN 1997) (Applies to Contracts requiring work on a Government installation)

(b) 5352.237-9001 REQUIREMENTS AFFECTING CONTRACTOR PERSONNEL PERFORMING MISSION ESSENTIAL SERVICES (NOV 2004)

(c) 5352.242-9000 CONTRACTOR ACCESS TO AIR FORCE INSTALLATIONS (JUN 2002) (Applies where Work is Performed on a Government installation)

(d) 5352.242-9001 COMMON ACCESS CARDS (CACs) FOR CONTRACTOR PERSONNEL (AUG 2004) (Applies where personnel require access to DoD computer networks and systems or when CACs are required for installation entry control or access to facilities)

K. SPECIAL PROVISIONS

The following Special Provisions apply to this Contract:

CONTRACTOR ACCESS TO AIR FORCE INSTALLATION (MAR 2005)

(IAW 5342.490-1 AND ROBINS AFB POLICY)

(a) The contractor shall obtain base identification and vehicle passes for all contractor personnel who make frequent visits to or perform work on the Air Force installation(s) cited in the contract. Contractor personnel are required to wear or prominently display installation identification badges or contractor-furnished, contractor identification badges while visiting or performing work on the installation.

(b) A computer-based program developed for use at Robins AFB to automate and standardize the contractor badge process has been deployed. Manual contractor badge request forms (AFMC Form 496) may still be used; however, you are highly encouraged to take advantage of this improved automated process. Both processes are outlined below. Automated Contractor Badge Process Contractors will access a secure computer server, fill out the information on each contractor employee to receive a badge, and submit the form via the web to a database accessed by WR-ALC Contracting Officers. The web site for program access is https://cac.robinscd.robins.af.mil/cacweb_public (please note underscore _ between “cacweb” and “public”). For help in completing the forms, select Help Forms in the top right hand corner of the first screen. Since this site is secure, ensure the Internet Explorer (IE) browser you are using contains the ability to access secure sites (https). The IE browser must be version 5.5 or higher and Java permissions must not be set to disable. Netscape is not supported for this particular program. In order to print this form, the Adobe Acrobat reader software is necessary and may be downloaded from the WR-ALC/PK web site, http://pkec.robins.af.mil/ at no cost. Select the hyperlink labeled “Freeware – viewing documents” and then select Adobe Reader. Provide a valid e-mail address when you complete the blocks in the program. The contracting officer will digitally sign the badge request form and the program will send an e-mail message to the submitter with the signed form attached. Using a printed copy of the digitally signed form received from the Contracting Officer, each contractor employee shall report in person to Pass and Registration (Bldg 263) to be eligible for unescorted access to Robins AFB. Personnel may enter Gate 4 (Truck Gate) at Robins AFB. The Gate Guard will instruct personnel to park their vehicle and walk to Pass and Registration. In order to receive a vehicle pass at this time, each individual will need to bring a DD Form 1172-2 digitally signed by the Contracting Officer and produce a valid driver’s license, proof of insurance, and vehicle registration. Once personnel have the contractor badge, the guard will allow them to move their vehicle. Contractors with current, valid badges may enter through any of the other base gates to go to Pass and Registration. Manual Process The contractor (contract administrator or site manager) shall submit a written request on company letterhead to the contracting officer listing the following: contract number, location of work site, start and stop dates, and list of names of employees and subcontractor employees needing access to the base. The letter will also specify the individual(s) authorized to sign for a request for base identification credentials or vehicle passes. Employees requiring access should provide a partially completed AFMC Form 496 to the contracting officer who will verify employees are on the list of names submitted by the contractor and will sign the certification portion of AFMC 496. Employees should report to Pass and Registration (Bldg 263) through Gate 4 (Truck Gate) at Robins AFB and present the AFMC Form 496 with an original signature of a Contracting Officer. Gate guards will instruct personnel to park their vehicle and walk to Pass and Registration. When reporting to the registration office, the authorized contractor individual(s) should provide a valid driver’s license, current vehicle registration, and valid vehicle insurance certificate to obtain a vehicle pass.

(c) During performance of the contract, the contractor shall be responsible for obtaining required identification for newly assigned personnel and for prompt return of credentials and vehicle passes for any employee who no longer requires access to the work site.

(d) When work under this contract requires unescorted entry to controlled or restricted areas, the contractor shall comply with AFI 31-101, Volume 1, The Air Force Installation Security Program, and AFI 31-501, Personnel Security Program Management, as applicable. Contact the Contracting Officer or Unit Security Manager for additional information on this process.

(e) Upon completion or termination of the contract or expiration of the identification passes, the prime contractor shall ensure that all base identification passes issued to employees and subcontractor employees are returned to the issuing office.

(f) Failure to comply with these requirements may result in withholding of final payment.

USE OF HAZARDOUS MATERIALS IN THE PERFORMANCE OF ON-BASE CONTRACTS

(a) "Hazardous Material" as used in this clause includes any material defined as hazardous under the latest version of Federal Standard No. 313D.

(b) The list of hazardous materials identified under FAR 52.223-3, Hazardous Material Identification and Material Safety Data, and DFARS 252.223-7001, Hazardous Warning Labels shall be updated during performance of the contract whenever the Contractor determines that any other material to be delivered or used on base in excess of 30 days and a 55-gallon, 500- pound, or 200-cubic foot threshold under this contract is hazardous based on changes in the composition of the item(s). Provide written notification of changes in the composition of the item(s). Provide written notification of changes in the Material Safety Data Sheets (MSDSs), including a copy of the updated MSDS, of each item to the identified point of contact on the installation prior to use of the item on the installation.

(c) The Contractor shall submit a Contractor Hazardous Material Report (form number to be specified by installation), available from (installation) for each item identified under Section I clauses referenced above or updates resulting from paragraph (b) of this clause 15 days prior to bringing the items on base. Update the report at least monthly (beginning no later than 30 days after the material is brought on base) until the hazardous material is removed from the base.

(d) All hazardous material used on base (including material to be used for a period of less than 24 hours) shall be labeled, tagged or marked in accordance with 29 CFR 1910.1200.

(e) The contractor is responsible for conducting and documenting employee hazard communication training prior to the commencement of work on base. (f) Neither the requirement of this clause nor any act or failure to act by the Government shall relieve the Contractor of any responsibility or liability for the safety of Government, Contractor, or subcontractor personnel or property.

(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 in conjunction with hazardous material).

(h) Notwithstanding any other rights in technical data specified elsewhere in this contract, the Government may use, Page 18 of 49 Indefinite Delivery Contract FA8528-07-D-0015 duplicate, and disclose any data to which this clause is applicable to apprise personnel of the hazards to which they may be exposed and obtain medical treatment for those affected by the material. In addition, the government may allow others to use, duplicate and disclose data for these purposes.

USE OF GOVERNMENT OWNED FACILITIES

(a) The parties recognize that the Contractor and its subcontractors may use Government Facilities, which are considered Government Furnished Property for purposes of this contract, pursuant to the following facilities leases, in the performance of this contract: 1. AF Plant 4, Ft. Worth TX, Lease F33657-97-L-2018 2. AF Plant 6, Marietta GA, Lease F33657-97-L- 2019 3. AF Plant 42, Sites 2, 7, and 8, Palmdale CA, Lease F33657-00-L-2039

(b) If any change in the availability of leased facilities due to loss, destruction or damage, or any change in the terms of the facilities leases identified in this clause, or any successor lease, causes an increase or decrease in the cost of, or the time required for, performance of any part of the work under this contract, or both, the Contractor or the Government shall be entitled to an appropriate equitable adjustment under this contract (including, but not limited to the Changes clause, Government Property clause, and Excusable Delay clause).

(c) Notwithstanding the above, the parties agree that the Contractor shall not be entitled to such an adjustment if the Contractor is liable, under lease Clause 13, Liability for the Loss of the Facilities, for is liable, under the Government Property clause, the loss, destruction or damage that renders the facilities unavailable.

(d) Changes in rental charges under the leases may be prospectively recovered only by rate changes through the forward pricing rate process, to the extent permitted by other clauses of this contract.

(e) This language does not create rights for either party that are not already stated in this contract and/or the facilities leases, but is intended to permit an adjustment under this contract as a result of an occurrence under one or more of the facilities leases as stated above.

SUBCONTRACTOR LIMITED RISK OF LOSS

Lockheed Martin is authorized, with the Procuring Contracting Officer consent, to ensure Government interests are sufficiently protected, to flow-down to Contractor the limited risk of loss provisions of FAR 52.245-2, Alternate I (APR 1984). Such authorization shall be limited to Contractors having USG-approved control systems.

TRAVEL

(a) The Contractor may be required to travel within the contiguous United States and overseas. The Contractor may be required to travel by Government-provided transportation. Travel requirements will be reimbursed by separate voucher and must be approved in advance by the Contracting Officer. Travel requirements will be identified, proposed, and negotiated in individual task orders on a cost-reimbursement basis. Billable travel costs are air fare, ground transportation, and per diem costs, not labor hours. The Contractor shall be responsible for obtaining any passports or visas and making travel arrangements to and from any CONUS location.

(1) Per diem, air fare, and all other allowable travel costs shall be reimbursed in accordance with the Federal Acquisition Regulation. All travel within overseas areas shall be approved in advance by the Contracting Officer.

(2) The Government may provide travel to and from overseas work sites via Air Mobility Command (AMC) flights, if available. AMC travel fees may be Contractor-paid and invoiced to the Government. The Government will be responsible for obtaining travel clearances and issuance of any required special orders.

(b) Use of AMC transportation shall be approved in advance by the Contracting Officer or designee. Orders authorizing AMC travel will specify the Contractor’s Customer Identification Code (CIC). If the Contractor does not have CIC number, the orders will state “special account handling: billing for AMC transportation will be forwarded to (see contractor’s address information on the face page of this document).” Use of AMC transportation is subject to availability. (c) The travel CLIN is intended to pay for travel occurring at the direction of the Government, performed in conjunction with a specific trip authorized in a task order. Travel by clerical support personnel shall be approved in advance by the Contracting Officer.

CERTIFICATIONS AND REPRESENTATIONS

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

(a) FAR 52.203-11 Certification and Disclosure Regarding Payments to Influence Certain Federal Transactions (Applies to solicitations and contracts exceeding $100,000)

(1) The definitions and prohibitions contained in the clause at FAR 52.203-12, Limitation on Payments to Influence Certain Federal Transactions are hereby incorporated by reference in paragraph (b) of this certification.

(2) Contractor certifies that to the best of its knowledge and belief that on and after December 23, 1989--

(a) No Federal appropriated funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress on his or her behalf in connection with the awarding of any Federal contract, the making of any Federal grant, the making of any Federal loan, the entering into of any cooperative agreement, and the extension, continuation, renewal, amendment or modification of any Federal contract, grant, loan, or cooperative agreement;

(b) If any funds other than Federal appropriated funds (including profit or fee received under a covered Federal transaction) have been paid, or will be paid, to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress on his or her behalf in connection with a solicitation or order, the offeror shall complete and submit, with its offer, OMB standard form LLL, Disclosure of Lobbying Activities, in accordance with its instructions, and

(c) Contractor will include the language of this certification in all subcontracts at any tier and require that all recipients of subcontract awards in excess of $100,000 shall certify and disclose accordingly.

(3) Submission of this certification and disclosure is a prerequisite for making or entering into a contract as imposed by section 1352, title 31, United States Code. Any person who makes an expenditure prohibited under this provision or who fails to file or amend the disclosure form to be filed or amended by this provision, shall be subject to a civil penalty of not less than $10,000, and not more than $100,000, for each such failure.

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

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

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

(c) FAR 52.209-6 Protecting the Government’s Interest when Subcontracting with Contractors Debarred, Suspended, or Proposed for Debarment

(1) Contractor certifies that, to the best of its knowledge and belief, that Contractor (if this Contract is in excess of $25,000) will disclose to Lockheed Martin, in writing, whether as of the time of award of the Contract, the Contractor or its principals is or is not debarred, suspended, or proposed for debarment by the Federal Government. (2) Contractor agrees that a corporate officer or designee of Contractor shall notify the Contracting Officer, in writing, before entering into a subcontract with a party that is debarred, suspended, or proposed for debarment. The notice shall include the name of the subcontractor, the Contractor’s knowledge of the reasons for the subcontractor being in the Excluded Parties List System, the compelling reason(s) for doing business with the subcontractor notwithstanding its inclusion in the Excluded Parties List System and the systems and procedures the Contractor has established to ensure that it is fully protecting the Government’s interests when dealing with such subcontractor in view of the specific basis for the party’s debarment, suspension, or proposed debarment.

(d) FAR 52.222-22 Previous Contracts and Compliance Reports.

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

(e) FAR 52.222-25 Affirmative Action Compliance.

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

(f) FAR 52.223-13 Certification Of Toxic Chemical Release Reporting (Applies to competitive solicitations/contracts which exceed $100,000)

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

(2) Contractor certifies that—

(a) As the owner or operator of facilities that will be used in the performance of this contract that are subject to the filing and reporting requirements described in section 313 of the Emergency Planning and Community Right-to- Know Act of 1986 (EPCRA) (42 U.S.C. 11023) and section 6607 of the Pollution Prevention Act of 1990 (PPA) (42 U.S.C. 13106), Contractor will file and continue to file for such facilities for the life of the contract the Toxic Chemical Release Inventory Form (Form R) as described in sections 313(a) and (g) of EPCRA and section 6607 of PPA; or

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

(i) The facility does not manufacture, process or otherwise use any toxic chemicals listed in 40 CFR 372.65;

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

(iii) The facility does not meet the reporting thresholds of toxic chemicals established under section 313(f) of EPCRA, 42 U.S.C. 11023(f) (including the alternate thresholds at 40 CFR 372.27, provided an appropriate certification form has been filed with EPA);

(iv) The facility does not fall within Standard Industrial Classification Code (SIC) codes or their corresponding North American Industry Classification System (NAICS):

(A) Major group code 10 (except 1011, 1081, and 1094).

(B) Major group code 12 (except 1241).

(C) Major group codes 20 through 39.

(D) Industry code 4911, 4931, or 4939 (limited to facilities that combust coal and/or oil for the purpose of generating power for distribution in commerce). (E) Industry code 4953 (limited to facilities regulated under the Resource Conservation and Recovery Act, Subtitle C (42 U.S.C. 6921, et seq), 5169, 5171, or 7389 (limited to facilities primarily engaged in solvent recovery services on a contract or fee basis); or

(v) The facility is not located in the United States or its outlying areas

FY07 U-2 Sustainment Rev 11/22/06

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