Free Motion for Summary Judgment - District Court of Federal Claims - federal

Case 1:98-cv-00868-FMA
CHICAGO FACIUT[ES SERVICE

Document 87-4

Filed 01/14/2005

Page 1 of 40

~ UNIT-E~ 3"T~37ES CERTIEIED MAlL #P 696 350 173 RETURNRECEIPT REQUESTED May17, 1994

L. P. Consulting Group, Inc. 10401 South 75th Avenue PalosHills, IL 60465-2015 SUBJECT: NOTICE TO PROCEED Indefinite Quantity Contract- GeneralConstruction Work NorthCentralIllinois Area- Zip Codes 604, 605 and609 Contract No. 162640-94-B-0083

Gentlemen: Your performance payment and bondsand other contract documents havebeen received and are acceptable the U. S. Postal Service.This letter is yourauthorizationto proceed the work to with in accordance with the terms and conditions of ContractNo.162640.94.B.0083. contract requires The completion within 730calendardaysafter date of receipt of the Noticeto Proceed. Pleaseset your workschedule accordingly to avoid anydelay. Yourcopyof the executed contract is enclosed. All work,reviews,andcontract administration will be underthe direction of the Manager, AdministrativeServices, Mr. RobertA. Rigsby.Mr. Rigsbyhasbeendelegated ContractingOfficer for workordersonly. His designated representative will be responsible administrationandfield for supervisionof this contract. Copies the workorders need be sent to me.Mr. Rigsby'saddress of not andtelephone number as follows: is Mr. RobertA. Rigsby Manager, Administrative Services Central Illinois District U. S. Postal Service 6801West73rd Street BedfordPark, IL 60499-9991 (708) 563-7200 TheManager, Administrative Services, will provide ProgressPayment FormsPS4211-B with each workorder. Anoriginal and two copies, all havinqoriqinalsignatures, are to be submittedto Mr. Rigsby payment, a copyto the Architect-Engineer for with firm, if he is performing project surveillance, unlessdirected otherwiseby the project manager designated the Manager, by AdministrativeServices. For eachsuchpay request, complete,sign, and date Form 4211-B.

continued-

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Case 1:98-cv-00868-FMA
L. P. Consulting Group, Inc. May1"~, 1994 Page-2-

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I urgeyouto thoroughly familiarize yourselfwith the terms this contract. I wishto call special of attention to the fact that only the contractingofficer canauthorizechanges the basiccontractwhen to total price or time for completion affected. All correspondence is pertainingto the contractshouldbe directed to the contractingofficer in writing through Manager, the Administrative Services. This notification is sent to youin duplicate with the requestthat youacknowledge receipt of the USPS copyandreturn it promptly. Sincerely,

Larry L. Linnenburger Contracting Officer

Enclosures: Contract No. 162640-94-B-0083

Receipt acknowledged: Date=

/
Manager, Administrative Services Central Illinois Distdct

jab

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Case 1:98-cv-00868-FMA
U.S. POSTAL SERVICE: CONTRACT NUMBER:

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OFFER AND AWARD

(CONSTRUCTION) NUMBER: 162640-94-A-0026

162640-94-B-0083

2. SOLICITATION

a. ISSUED BY: Facilities Service Office U.S. Postal Service - Suite 1200 222 S. Riverside Plaza Chicago, IL 60606-6150

b. FOR INFORMATION CALL: Name: Frank T. Sugino Title: Architect/Engineer Room: Suite 1200 Tel: (312) 765-5342 (No Collect Calls)

a. OFFEROR/CONtRACTOR L.P. Consu|tlng Group, Inc. 10401 75thAve. S. Palos Hills, IL 61)4B5-2015
f. Remittance Name and/or Address: b. Contact Name: f\[~7~I~/~TZ'..~CI~) C. Telephone No: ~0~.~'~9

a. TIN: "~[OZZll ~.
e. Parent TIN: TiN=Taxpayer Identification (If different from above) Number

5. DELIVERY/PERFORMANCE See Section C

REQUIREMENTS:

6.

ITEMS & PRICES~GENERAL

DESCRIPTION

OF REQUIREMENT:

INDEFINITE QUANTITY CONTRACT GENERAL CONSTRUCTION WORK NORTH CENTRAL ILLINOIS AREA ZIP CODES 604, 605 and 609 CONTRACT VALUE $300,000.00

The contractor agrees to perform all work included or ordered pursuant to and in accordance with the terms and conditions of the contract for the unit prices listed on the price schedule times the multiplier listed below:

Multiplier:

,~5~

Vo,~ ~-c~l~~
Invoices to): U.S. Postal Service - Suite Chicago, IL 60606-6150 U.S. POSTAL SERVICE 1200

7. BILLING INSTRUCTIONS (Submit Facilities Service Office 222 South Riverside Plaza 8. S I~T~ OFFERO~ONTRACTOR

Signature

~

DAte

Signature

Award

Date

Typed or Printed Person Authorized Distribution:

Name of to Sign Offer - File Copy

Title

Larry L. Linnenburger Name of Contracting Officer

Original

- Contractor

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162640-94-A-0026

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Section A

Page 4 of 40

PART i - SCHEDULE

SECTION

A - ITEMS

AND PRICES

A.I

REQUIP~D

BOND AMOUNTS

(Clause : :

FB-201)

(November

1988)

Performance Bond Payment Bond

$300,000.00 $150,000.00 is given in the following and payment bond (Provision (August 1988) numbered and

Additional information on bond requirements provisions: performance bond (Provision 7-2), A.2 ACKNOWLEDGMENT OF AMENDMENTS (Clause receipt FB-199)

7-3).

The offeror acknowledges dated as follows: Amendment Number Date

of amendments

to the solicitation

Amendment

Number

Date

- 44Page 2 of 79

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162640-94-A-0026

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L

Section

SECTION

L - REPRESENTATIONS

AND CERTIFICATIONS

L.1

TYPE OF BUSINESS ORGANIZATION (December 1989) The offeror, by checking

(Provision

A-20)

the applicable

blocks,

represents

that it:

a. Operates as [~ a corporation incorporated under the laws of the State of ~Lu|~0~9 , [__] an individual, [__] a partnership, [__] a joint venture, [__] a nonprofit organization, [__] or an educational institution; and b. Is a [__] small business concern, [__] minority-owned business, ~ woman-owned business, [__] labor surplus area concern, [__] educational or other non-profit organization, or [__] none of the above entities. c. SMALL BUSINESS CONCERN. A smal~ business concern for the purposes of Postal Service procurement means a business, including an affiliate, that is independently owned and operated, is not dominant in producing or performing the supplies or services being purchased, and has no more than 500 employees, unless a different size standard has been established by the Small Business Administration (see 13 CFR 121, particularly for different size standards for airline, railroad, and construction companies). For subcontracts of $50,000 or less, a subcontractor having no more than 500 employees qualifies as a small .business without regard to other factors. d. MINORITY-OWNED BUSINESS. A minority-owned business is a concern that is at least 51 percent owned by, and whose management and daily business operations are controlled by, one or more members of a socially and economically disadvantaged minority group, namely U.S. citizens who are Black Americans, Hispanic Americans, Native Americans, Asian-Pacific Americans, or Asian-Indian Americans. (Native Americans are American Indians, Eskimos, Aleuts, and Native Hawaiians. Asian-Pacific Americans are U.S. citizens whose origins are Japanese, Chinese, Filipino, Vietnamese, Korean, Samoan, Laotian, Kampuchean, Taiwanese or in the U.S. Trust Territories of the Pacific Islands. Asian-Indian Americans are U.S. citizens whose origins are in the Indian subcontinent.) e. WOMAN-OWNED BUSINESS. A woman-owned business is a concern at least 51 percent of which is owned by a woman (or women) who is a U.S. citizen, controls the firm by exercising the power to make policy decisions, and operates the business.by being actively involved in day-to-day management. f. LABOR SURPLUS AREA. A geographical area which at the time of award is either a Section of concentrated unemployment or underemployment, a persistent labor surplus area, or a substantial labor surplus area, as defined in this paragraph. Section Of concentrated unemployment or underemployment means appropriate sections of States or labor areas so classified by the Secretary of Labor. 2. Persistent labor surplus area means an area which is classified by the Department of L~bor as an area of substantial and persistent Page 74 of 79 -45 --

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Section L

labor surplus (also called Area of Substantial and Persistent Unemployment) and is listed as such by that Department in conjunction with its publication, Area Trends in Employment and Unemployment. Substantial labor surplus area means an area which is classified by the Department of Labor as an area of substantial labor surplus (also called Area of Substantial Unemployment) and which is listed as such by that Departmen~ in conjunction with its publication Area Trends in Employment and Unemployment. g. LABOR SURPLUS AREA CONCERN. performed a substantial proportion A firm which will perform or cause to be of a contract in a labor surplus area.

h, EDUCATIONAL OR OTHER NON-PROFIT ORGANIZATION. Any corporation, foundation, trust, or other institution operated for scientific or educational purposes, not organized for profit, no part of the net earnings of which inures to the profits of any private shareholder or individual. L.2 PARENT COMPANY AND TAXPAYER IDENTIFICATION (Provision A-21) (October 1987) NUMBER

a. A parent company is one that owns or controls the basic business policies of an offeror. To own means to own more than 50 percent of the voting rights in the offeror. To control means to be able to formulate, determine, or veto basic business policy decisions of the offeror. A parent company need not own the offeror to control it; it may exercise control through the use of dominant minority voting rights, proxy voting, contractual arrangements, or otherwise. b. Enter the offeror's Taxpayer Identification Number (TIN) in the space provided. The TIN is the offeror's Social Security Number or other Employee Identification Number used on the offeror's Quarterly Federal Tax Return, U.S. Treasury Form 941.

Offeror's TIN:
C. [__] company. Check this block if the offeror is owned or controlled by a parent

If the block.above parent company: Parent Company's Parent Company's No. and Street: City: Parent Company's

is checked,

provide

the following

information

about

the

Name: Main Office

Address: State: Zip Code:

TIN:

Page 75 of 79

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162640-94-A-0026 L.2 Continued)

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L

Section

e. If the offeror is a member of an ~ffiliated group that files its federal lncome tax return on a consolidated basis (whether or not the offeror is owned or controlled by a parent company, as provided above) provide the name and TIN of the common parent of the affiliated group: Name of Common Parent: Common Parent's TIN: L.3 AUTHORIZED NEGOTIATORS (Provision A-22) (october 1987)

The offeror represents that the following persons are authorized to negotiate on its behalf with the Postal Service in connection with this solicitation [Offeror list names, titles, and telephone numbers of the authorized negotiators].

L.4

CERTIFICATE (Provision

OF INDEPENDENT PRICE I-I) (October 1987)

DETERMINATION

a. By submitting this proposal, the offeror certifies, and in the case of a joint proposal each party to it certifies as to its own organization, that in connection with this solicitation-1. The prices proposed have been arrived at independently, without consultation, communication, or agreement, for the purpose of restricting competition, as to any matter relating to the prices with any other offeror with any competitor;

or

2. Unless otherwise required by law, the prices proposed have not be~n and will not be knowingly disclosed by the offeror before award of a contract, directly or indirectly to any other offeror or to any competitor; and 3. No attempt has been made or will be made by the offeror to induce any other person or firm to submit or net submit a proposal for the purpose of restricting competition. b. Each person signing this proposal certifies that--

i. He or she is the person in the offeror's organization responsible for the decision as to the prices being offered herein and that he or she has not participated, and will not participate, in any action contrary to paragraph a above; or~ 2. He or she is not the person in the offeror's organization responsible for the decision as to the prices being offered but that he or she has been authorized in writing to act as agent for the persons responsible in certifying that they have not participated, and will not participate, in any action contrary

Case 1:98-cv-00868-FMA
162640-94-A-0026 L.4 (Continued) to paragraph a above, has not participated, paragraph a above.

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Section L

and as their agent does hereby so certify; and he or she and will not participate, in any action contrary to

c. Modification or deletion of any provision in this certificate may result in the disregarding of the proposal as unacceptable. Any modification or deletion should be accompanied by a signed statement explaining the reasons and describing in detail any disclosure or communication. L.5 CONTINGENT a. FEE REPRESENTATION (Provision 1-2) (October 1987)

The offeror

must complete

the following

representations:

i. The offeror [__] has [~__] has not employed or retained any company or person (other than a full-time bona fide employee working solely for the offeror) to solicit or secure this contract. 2. The offeror [__] has [~] has not paid or agreed to pay any company or person (other than a full-time bona fide employee working solely for the offeror) any fee, commission, percentage, or brokerage fee, contingent upon or resulting from the award of this contract. b. If either representation is in the affirmative, or upon request of the cohtracting officer, the offeror must furnish, in duplicate, a completed Form 7319, "Contractor's Statement of Contingent or Other Fees", and any other information requested by the contracting officer. If the offeror has previously furnished a completed Form 7319 to the office issuing this solicitation, it may accompany its proposal with a signed statement-io Indicating when the completed form was previously furnished; or contract, if any,

2. Identifying the number of the previous solicitation in connection with which the form was submitted; and 3. Representing proposal. L.6 that the statement

on the form is applicable

to this

CERTIFICATION OF NONSEGREGATED October 1987)

FACILITIES

(Provision

10-3)

a. By submitting this proposal, the offeror certifies that it does not and will not maintain or provide for its employees any segregated facilities at any of its establishments, and that it does not and will not permit its employees to perform services at any-location under its control where segregated facilities are maintained. The offeror agrees that a breach of this certification is a violation of the Equal Opportunity clause in this contract. b. As used in this certification, "segregated facilities" means any waiting rooms, work areas, rest rooms or wash rooms, restaurants or other eating areas, time clocks, locker rooms or other storage or dressing area~, parking lots, drinking fountains, recreation or entertainment areas, transportation, or housing facilities provided for employees that are segregated by explicit directive or are in fact segregated on the basis of race, color, religion,~or national origin, because of habit, local custom, or otherwise. AO Page 77 of 79

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L

Section

c. The offeror further agrees that (unless it has obtained identical certifications from proposed subcontractors for specific time periods) it will obtain identical certifications from proposed subcontractors before awarding subcontracts exceeding $I0,000 that are not exempt from the provisions of the Equal Opportunity clause; that it will retain these certifications in its files; and that it will forward the following notice to these proposed subcontractors (except when they have submitted identical certifications for specific time periods): NOTICE A certification of nonsegregated facilities must be submitted before the award of a subcontract exceeding $i0,000 that is not exempt from the Equal Opportunity clause. The certification may be submitted either for each subcontract or for all subcontracts during a period (quarterly, semiannually, annually). L.7 BUY AMERICAN CERTIFICATE--CONSTRUCTION (Provision 10-8) (October 1987} The offeror certifies MATERIALS

or

that only domestic

construction-materials

(a~ defined

in

the Preference for Domestic Construction Materials clause) will be used in the performance of this contract, except for foreign construction materials listed below: Material Quality Estimated Cost

L.8

CLEAN AIR AND WATER CERTIFICATION (October 1987)

(Provision

10-9)

a. This certification applies only if (i) the offer exceeds $I00,000, (2) offer is for an indefinite-quantity and indicates that orders for estimating quantities will exceed $I00,000 in any year, (3) a facility to be used is listed on the EPA List of Violating Facilities because of a criminal conviction, or (4) the contract is not otherwise exempt. b. The offeror (I) certifies, by checking the applicable box, that any facility to be utilized in the performance of the proposed contract [_] is, [_] is not, listed on the Environmental Protection Agency List of Violating Facilities as of the date of this proposal, and (2) agrees to notify the contracting officer promptly if any communication is received from the Environmental Protection Agency before contract award indicating that any such facility is under consideration for inclusion on the List.

Page 78 of 79

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b,,tTED STATES POSTAL SER~,CE CHICAGO FACILITIESSERVICE OFFICE CHICAGO, 60606-6150 IL
DATE: OURREF: SUBJECT:

May17, 1994 FSO030:jABalanda:jab Appointmentof Contracting Officer for Issuanceof Individual WorkOrders Indefinite Quantity Contract - GeneralConstruction Work North Central Illinois Area- Zip Codes 604, 605 and60.9 Contract No. 162640-94-B-0083 Robert A. Rigsby Manager, Administrative Services Central Illinois District 6801West73rd Street Bedford Park, IL 60499-9991

Pursuantto the authority vested in mein accordance with the Procurement Manual, Section5, Procurement Authority, I hereby appoint you as ContractingOfficer for individual workordersfor the referenced contractsubjectto the limitations in the Facilities Handbook RE-14. Theabove appointment shall be effective on the date of this letter. The firm is: L. P. ConsultingGroup,Inc. 10401 South 75th Avenue Palos Hills, IL 60465-2015

Theamount Multiplier is 0.859 Thecontract value is $300,000.00. of Please acknowledge receipt of this letter on the original andtwo (2) copies. Returnthe original andonecopyto me.Theremaining copyis for your file.

Larry L. Linnenburger ContractingOfficer Enclosure Receiptof this appointment acknowledged is on: Date Received By: Signature TYPEDNAME: TITLE:

-

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IQC 162640-96-B-0094

.-

CERTIFIED MAIL #P 252 ; ~ 860 Case RECEIPT REQU~,~TED Document 87-4 RETURN1:98-cv-00868-FMA CH~.~,;O FAC~U'~S SERVICE OFFICE

) Filed 01/14/2005

Page 12 of 40

June 6,1996

dUN 12 R2:33

L. P. Consulting Group, Inc. 10401 S. 75th Avenue Palos Hills, IL 60465-2015 SUBJECT: NOTICE TO PROCEED Indefinite Quantity Contract - General Construction Work Peoria Illinois Area -Zip Codes 614, 615, 616 and 617 Contract No. 162640-96oB-0094

Gentlemen: Your performance and payment bonds and other contract documents have been received and are acceptable to the U. S. Postal Service. This letter is your authorization to proceed with the work in accordance with the terms and conditions of the subject contract. The contract requires completion within 730 calendar days after date of receipt of the Notice to Proceed. Please set your work schedule accordingly to avoid any delay. Your copy of the executed contract is enclosed. All work, reviews, and contract administration will be under the direction of the Manager, Administrative Services, Mr. Robert A. Rigsby. Mr. Rigsby has been delegated Contracting Officer for work orders only. His designated representative will be responsible for administration and field supervision of this contract. Copies of the work orders need not be sent to me. Mr. Rigsby's address and telephone number as follows: is Mr. Robert A. Rigsby Manager,Administrative Services CentralIllinois District U. S. Postal Service 6801 West 73rd Street Bedford Park, IL 60499-9991 (708) 563-7200

The Manager, Administrative Services, wilt provide Progress Payment Forms PS 4211-B with each work order. An odginal and two copies, all having oriqinal siqnatures, are to be submitted to Mr. Rigsby for payment, with a copy to the Amhitect-Engineer firm, if he is performing project, surveillance, unless directed otherwise by the project manager designated by the Manager, Administrative Services. For each such pay request, complete, sign, and date Form 4211-B.

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038

Case 1:98-cv-00868-FMA L. P. Consulting Group, Inc. June 6,1996 Page-2-

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I urge youto thoroughlyfamiliarize yourself with the termsof this contract. I wish to call special attention to the fact that only the contracting officer or project manager can authorize changes the basic contract when to total pdceor time for completion affected is accordingto the authorities andlimitations of contracting authority. All correspondence pertainingto the contractshouldbe directedto the contracting officer in writing. This notification is sent to you in duplicate with the requestthat youacknowledge receipt of the USPS and return it promptly. copy Sincerely,

LarTyL. Linnenburger ContractingOfficer

EncJosures: a/s cc: Manager, Administrative Services Central Illinois Distdct

jab

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039

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Page 14 of 40

U.S. POSTAL SERVICE: OFFER AND AWARD (CONSTRUCTION) Indefinite Quantity Contract
1. CONTRACT NUMBER:162640-96-~-0094 2. SOLICITATION NUMBER: 162640-96-A-0282 ao 18SUED BY: U,S. Postal Service Facilities ServiceOffice 222S. Riverside Plaza, Suite 1200 Chicago,Illinois 60606-6150 a. OFFEROR/CONTRACTOR 3. REQUEST NUMBER:# 4. SOC/EC: 5. COMMODITY: b. FORINFORMATION CALL: Name: Frank T. Sugino Title: Project Manager Tel: 312/669-5942 (NoCollect Calls) b. Contact Name: ~J~ ~:~"T['[~

L~. Cc,a;;.;:::r.~ C~=p, Telephone:FAX: In~i
1U~O~ ~-5~rh .&.re. e. TIN': ~. PalosHills, IL 604652015 Parent TIN: Remittance Name and/or Address different from above) (If ~i'lN=Taxpayer Identification Number DELIVERY/PERFORMANCE REQUIREMENTS: See Section C CONTRACTTERM: FROM -. TO (Datesto be eqtereduponaward)

ITEMS & PRICES/GENERAL DESCRIPTION REQUIREMENT: OF Thecontractor agrees performall workincludedor orderedpursuant andin accordance the 1o to with termsandconditions the contractfor the unit prices listed on the price schedule of timesthe multiplier listed below: IQC-C Type: GeneralConstructionWork- Peoda,Illinois -Zip Codes 613, 614,615,616 617 &

AREACOVERED THIS CONTRACT: Attachment 1.3 BY See Multiplier: ' ~'5"(~ (Numbers) 10. 11 .. ~F:~o/~/" (In Words)

BILLINGINSTRUCTIONS (Submit Invoices to): Send invoice as directedby. Pfej, ect Manager. SIGNATURE: OFFEROR/CONTRACTOR U.S, POSTAL SERVICE ~gnature Larry L. Linnenbumer Name ContractingOfficer of

si~tur=

// h~ate
Title

Typedor Printed Name of PersonAuthorizedto Sign Offer Distribution:

Original- File; Copy Contractor -

~__ ~al, ~ OEP. EX. NO.~
IQC-C

Page of 99 pages I

September 1995 30,

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SOLICITATION: 162640-96-A-0282 PART 1 - SCHEDULE SECTION A o ITEMS AND PRICES

SECTION A

A.1

REQUIRED BOND AMOUNTS (Clause FB-201) ALTERNATE (September 1995/Interim) I Required for contracts exceeding $25,000.00 Performance Bond: Payment Bond: 100% the total contract-price of 50% the total contract price of

Additional bogcling must be obtained prior to increasing the "Not to Exceed"amount as set in the initial contract order, Additional information on bondrequirementsis given in Section K in the following provisions: ¯ PerformanceBond(Provision 7-2), and~Payment Bond(Provision 7-3). A.2 ACKNOWLEDGMENT AMENDMENTS OF (Clause OB-199) (August 1988) numbered and

The offeror acknowledges receipt of amendments the solicitation to dated as follows: Amendment Number Date Amendment Number.

Date

Ioc,-C

Page2 of g9 pages

September30,

lg95

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SOLICITATION: 162(~40-96-A-0282 PART1 - SCHEDULE SECTION - ITEMSANDPRICES A

SECTIONA

Aol REQUIRED BOND AMOUNTS (Clause FB-201) ALTERNATE I (September1995/Interim) Requiredfor contracts exceeding$25,000.00 PerformanceBond: PaymentBond: 100% the total contract price of 50% the total contract price of

Additional bondingmustbe obtainedprior to increasing the "Not to Exceed" amount asset in the initial contractorder. Additional information on bondrequirements given in SectionK in the following is provisions: Performance Bond(Provision 7-2), ~..nd Payment Bond(Provision 7-3). A.2 ACKNOWLEDGMENT OF AMENDMENTS (Clause OB-199) (August 1988) numbered and Date

The offeror acknowledges receipt of amendments the solicitation to datedas follows: AmendmentNumber Date AmendmentNumber

Ic~c-c

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September 30, 1995

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SOLICITATION: 162640-96-A-0282 SECTION - SPECIFIC.ATIONSISTATEMENTW, ORK B OF B.1 STATEMENT WORK/SPECIFICATIONS OF (Clause OB-7) (June 1988)

. SECTION B

Thecontractor mustfurnish the necessary personnel,material, equipment, services, andfacilities (exceptas otherwise specified) to perform statement work/specifications the of incorporated referencein SectionI. by B.2 ATTACHMENTS STATEMENT WORK/SPECIFICATIONS TO OF (Clause OB-31)(June 1988)

Theattachments the statement work/specifications to of listed in SectionI are hereby made of this solicitations andanyresultant contract. part B.3 ENGLISH LANGUAGE REQUIREMENT ON-SITE SUPERINTENDENT OF (Clause OBo38) (June 1988)

Thecontractor's on-site superintendent mustbe able to speak,read, andwrite English to the extent necessary permit reasonabl~.communication Postal Service personnel. to with B.4 QUANTITY WORK OF (INDEFINITE-QUANTITY) (Clause FB-248) (March

a. Theinitial contract valueis $300,000 where total quantity of workOrdered the during the termof this contract will not be less than $10,000 more nor than onemillion dollars ($1,000,000).ThePostal Servicereservesthe option to increasethe potential value of the contract in incrementsof $100,000 to exceed not $300,000 to exceed not $1,000.000. Additional consent surety will be requiredfor eachincremental of increase. b. Adjustments, required, in quantities listed in the workorder will be made the if on basis of actual, quantities, approved, installed and/orremoved the final work. and in c. Thecontractor will not be requiredto performa job wherethe value of the work requiredin anyonebuilding is less than $500per workorder. d. ThePostal Service reservesthe right to undertake,by Postal Service sourcesor others, the same type of workor similar workas contracted in this contract, in the area for covered this contract,whilethis contractis in force. by

Ioc.c

Page3 of 99 pages

September 1995 30,

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SOLICITATION: 162640-96-A-0282 SECTIONC - DELIVERY/PERFORMANCE C.1 NOTICE DELAY OF (Clause B-15) (May 1994)

.SECTION C

Immediately uponbecoming aware anydifficulties that might delay deliveries under of this contract, the contractorshall notify the contractingofficer in writing of them.The notification mustidentify the difficulties, the reasons them,andthe estimated for periodof delay anticipated. Failure to give notice maypreclude later considerationof anyrequestfor an extension contract time. of C.2 SUSPENSIONS DELAYS AND (Clause B-16) (May 19941Interim)

a. A claim underthis clausemaybe allowedif performance all or any part of the of workof this contract is suspended, delayed,or interrupted by: 1. Anorder or act of the contractingofficer in administering contract; or this

2. Failureof the contracting officer to act within the time specifiedin this contract, or within a reasonable if not spec!f.ied. time An adjustment, underthis clause, maybe made for any increasein the cost of performance this contract causei:l by the delay or interruption (including the cost of incurred during any suspensionor interruption). An adjustment mayalso be made, underthis clause, in the delivery or performance dates andany other contractualterm or condition affected by the suspension,delay or interruption. However, adjustment no maybe made underthis clause for any delay or interruption to the extent that performance would have been delayed or interrupted by any other cause, including the fault or negligenceof the contractor, or which an adjustment provided excluded is or underanYother term or conditionof this contract. b. A claim underthis clause maynot be allowed; 1. For any costs incurred morethan 20 calendardays before the contractor has notified the contracting officer in writing of the act or failure to act involved;and 2. Unlessthe claim, in an amount stated, is assertedin writing as soonas practicableafter the termination the delayor interruption, but not later than the day of of final payment underthe contract. C.3 EXCUSABLE DELAYS (Clause B-19) (October 1987)

a. Except with respectto defaults of subcontractors, contractorwill not be in default the by reason anyfailure in performing of this contract in accordance its terms(including with any failure by the contractor to make progressin the prosecutionof the workthat endangers toc-c Paae4 of 99 pa.cles

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SOLICITATION: 162640-96-A-0282

SECTIONC

performance) the failure arises out of causes if beyond control andwithout the fault or the negligence the contractor. Such of causes include, but are not restricted to, acts of God may or of the public enemy, acts of the Government its sovereigncapacityor the Postal in Serviceits contractualcapacity,fires~ floods, epidemics, quarantine restrictions, strikes, freight embargoes, unusuallysevereweather,but in every casethe failure to perform and mustbe beyond control andwithout the fault or negligence the contractor. the of b. If failure to perform caused the failure of a subcontractor perform make is by to or progressandarises out of causes beyond control of both the contractor and the subcontractor, without the fault or negligence either of them,the contractorwill not be and of deemed be in default, unless to 1. Thesupplies or services to be furnished by the subcontractorare obtainable from other sources; 2. Thecontractingofficer ordersthe contractorin writing to procurethe supplies or services from other sources;and 3. Thecontractor fails to comply reasonably with the order.

c. Upon requestof the contractor, the contracting officer shall ascertainthe facts and extent of failure, andif the contractingofficer determines anyfailure to perform that was occasioned anyof the said causes,the:delivery schedule by shall be revised accordingly, subject to the rights of the Postal Serviceunderanyterminationclauseincludedin this contract. d. As usedin this clause, the terms "subcontractor"and"subcontractors"mean subcontractor(s) anytier. at C.4 SHOP DRAWINGS,COORDINATION DRAWINGS, AND SCHEDULES (Clause 11-20) (October 1987)

a. Thecontractor will submit shopdrawings,coordinationdrawings,andschedules for approval requiredby the specifications or requested the contractingofficer, as follows: as by 1. Shop drawings will include fabrication, erection, an~d setting drawings, schedule drawings, manufacturer's scale drawings, wiring andcontrol diagrams, cuts or entire catalogs,pamphlets, descriptive literature, andperformance test. data. and 2. Drawings schedules,other than catalogs, pamphlets,andsimilar printed and material, mustbe submittedin reproducibleform with two prints made a process by approved the contracting officer. Upon by approval, the reproducibleform will be returnedto the contractorwhichmustfurnish the number additional prints, not to of exceed ten, requiredby the SpecialConditions the specifications. Thecontractor" of mustsubmitshopdrawings catalog, pamphlet,andsimilar printed form in a in

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SECTION C

minimum four copies plus as many of additional copies as the contractor maydesire or needor for use by subcontractor. b. Before submitting shopdrawings the mechanical electrical work, the contractor on and mustobtain the contractingofficer's approval lists of mechanical electrical equipment of and andmaterialsas requiredby the specifications. c. The contractor will checkthe drawingsandschedulesand coordinate them(by means of coordinationdrawings whenever required) with the workof all trades involvedbefore submission,indicating approval on them. Drawings schedulessubmittedwithout and evidence the contractor's approvalmaybe returned for resubmission. of d. Eachshopdrawingor coordination drawingmusthavea.blank area 5 by 5 inches, locatedadjacentto the title block. Thetitle block mustdisplay1. Number title of drawing; and Date of drawingor revision; .. Name projectbuilding.o.r facility; of 4. 5. 6. Name contractor and(if appropriate)of subcontractor of submittingdrawing; Clear identity of contentsandlocation on the workand Project title andcontractnumber.

e. Unless otherwiseprovidedin this contract, or otherwisedirected by the contracting officer, shopdrawings,coordinationdrawings,andschedules mustbe submittedto the contracting officer, with a letter in triplicate, sufficiently in advance construction of requirements permit at least 10 workingdaysfor checkingandappropriateaction. to f, Exceptas otherwise providedin paragraphg below, approval of drawingsand scheduleswill be general and maynot be construedas1. Permitting any departurefrom the contract requirements;

2. Relievingthe contractorof responsibility for anyerrors, includingdetails, dimensions,andmaterials; or Approving departures from full-size details furnishedby the contractingofficer.

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g. If drawingsor schedules showvariations from the contract requirements because of standardshoppractice or for other reasons, contractormustdescribethe variations in the the letter of transmittal. If acceptable, contractingofficer may the approve or all any variations andissue an appropriate change order. If the contractorfails to describethese variations, it will not be relieved of the responsibility for executing workin accordance the with the contract, eventhoughthe drawingsor schedules havebeenapproved. C.5 RECORD BUILT" DRAWINGS "AS (Clause 11-21) (October 1987)

a. The contractor must, during the progressof the work, keepa masterset of prints on the job site, on whichis kept a careful andneat recordof all deviationsfromthe contract drawings preparedby the architect-engineer made during the courseof the work. b. Upon completion the project, these"as built" prints mustbe certified as to their of correctness the signatureof the contractorandturnedover to the architect-engineer by for usein preparinga permanent of "as built" drawings. set C,6 SPARE-PARTS (Clause 11-22) (October 1987) DATA

a. Thecontractor mustfurnish spare-partsdata for eachdifferent item of equipment furnished.Thedata mustinclude a comple~te of parts andsupplies, with current unit list prices andsources supply; a list of pa~t~andsuppliesthat are either normally of furnishedat no extra cost with the purchase the equipment, specified to be furnishedas part of the of or contract; anda list of additional items recommended manufacturer ensureefficient by the to operation a periodof 180daysat the particular installation. for b. The foregoing doesnot relieve the contractor of any responsibilities underthe guarantees specified. C.7 WARRANTY (CONSTRUCTION) (Clause 11-25) (October

a. Unlessotherwise providedin the specifications, the contractorwarrantsthat all work is in accordance contract requirements free fromdefective or inferior materials, with and equipment, workmanship oneyear after the date of final acceptance and for underthis contract. b. If, within the warranty period, the contractingofficer finds that warranted workneeds to be repaired or changed because materials, equipment, workmanship inferior, the or were defective, or not in accordance the contract terms, the contractor mustpromptlyand with without additional expenseto Postal SeHicethe 1. Placein a satisfactory conditionall of the warranted work;

2. Satisfactorily correct all damage equipment, site, the building, or its to the contentsthat is the result of suchunsatisfactorywork;and
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3. Satisfactorily correct anywork,materials, or equipment disturbedin fulfilling warranty. Should contractorfail to proceed the promptlyin accordance the warranty, the with c. at Postal Service mayhavethe work performed the contractor's expense.

d. Thecontractor mustobtain eachtransferable guaranteeor warrantyof equipment, materials,or installation furnishedby anymanufacturer, supplier, or installer in the ordinary courseof the business trade. Thecontractormustobtain andfurnish to the Postal Service or all information required to make suchguarantee warrantylegally binding and any or effective, andmustsubmitboth the informationandthe giJarantee warrantyto the Postal or Servicein sufficient time to permit the PostalServiceto meet time limit requirements any specifiedin the guarantee warranty if no time limit is specified, beforecompletion or or, and acceptance all workunderthis contract. of SAMPLES (Clause 11-28) (June 1988) a. After contract award,the contractor mustfurnish samples required by the specifications by the contracting or officer, f[~{" the contracting officer's approval. They must be deliveredto the contractingofficer or to'lhe architect as specifiedor as directed. The contractor mustprepayalt shipping ch'&rgeson samples. Materials or equipment which for samples requiredmay be usedin the workuntil the contracting officer approves are not in writing. b. Eachsamplemust be labeled to show1. 2. 3. 4. 5. Name project buildingor facility, project title, andcontractnumber; of Name contractor and(if appropriate)subcontractor; of Identification of materialor equipment, specification requirement; with Placeof origin; and Name producerandbrand(if any). of

c. Samples finish materials musthaveadditional markings of that wilt identify themunder the finish schedules. d. Thecontractor mustmail underseparatecovera letter in triplicate submittingeach shipment samples containing the information required in paragraphs andc above. of and b Thecontractor mustalso enclosea copyof that letter with the shipment senda copyto and the Postal Servicerepresentative the project. Approval a sample only for the on of is characteristics or use named the approvalandmaynot be construedto change modify in or any contract requirement. Substitutions are not permittedunless approved writing by the in contracting officer. - 62 .... P~n=R nf .~g ~aa~s September30, 19~5

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e. Approved samples not destroyedin testing will be sent to the Postal Service representativeat the project. Approved samples hardware goodcondition will be of in marked identification and.may usedin the work. Materials andequipment for be incorporatedin the work shall matchthe approved samples.Samples destroyedin not testing andnot =r~nro,,ed ,, ,= c,~, 4; =,.~,~~ expense thecontractor if so -,-,. ......... requestsat time of submission. f. Failure of anymaterialto passthe specifiedtests will be sufficient cause refusal to for consider,underthis contract, any further samples the same of brandor make that of material. ThePostal Servicereservesthe right to disapprove material or equipment any that haspreviouslyproved unsatisfactoryin service. g. Samples materials or equipment of delivered on the site or in place may taken by be the Postal Servicerepresentative testing. Failure of a sample meet for to contract requirements will automaticallyvoid previousapprovalsof the item tested. Thecontractor mustreplacematerials or equipment found not to havemetcontract requirements,or there will be a properadjustment the contract price as determined the contractingofficer. of by h. Except otherwise as specified, if tests are called for in the specifications,the contractormust all costs of thesetests. When pay tests are not specifically called for in the specificationsbut are requiredby the Pq,s.{al Service,the PostalServicewill payall costs of the tests andrelated engineering se.rvices unlessthe tests indicate that the workmanship or materialsusedby the contractor are not in conformance drawings, with specifications, approved shopdrawings,or the approved materials. In this event, the contractor mustpay for the tests, remove workandmaterial failing to conform,andreplacewith workand all materialsin full conformity.All tests pertainingto physicalor chemical propertiesof materials mustbe made a laboratory approved the contracting officer. in by C.9 WORKING HOURS (CONSTRUCTION) (Clause FB-202) (June

a. It is contemplated all workwill be performed that during the customary workinghours of the trades involvedunlessotherwise specified in this contract. Work performed the by contractorat its own volition outsidesuchcustomary workinghoursshall be at no additional expense the Postal Service. to b. Thecontractor mustrefer to the contracting officer anyrequestsfrom occupants of buildings includedin the contractor's workarea to change hoursof work. the C.10 OPTIONAL MATERIALS OR METHODS (CONSTRUCTION) (Clause FB-244)(June 1988) Where technical provisions permit the Contractor select optional materials, the to items, systems equipment, selection of suchoptionsis subject to the following or the conditions:

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SECTION C

a. Once option has beenselected andapproved, mustbe usedfo~" the entire an it contract. b. Thecontractor mustcoordinate its selection with the drawingsand specifications and make necessary all adjustments without additional cost to the Postal Service. C.ll INDEFINITE-QUANTITY CONTRACT(CONSTRUCTION) (Clause FB-249) (June 1988)

a. This indefinite-quantity contract will include all servicesdescribedin SectionB, 8pacifications or Statement Work,orderedduring the 24-month of period beginningon the dayfollowingthe dateon whichthe contractis signed the latter of the par~ies sign it. by to b. Theprice per unit of eachproposalitem in this contract will include all materials, labor, andequipment required to performthe workdescribedin the attachedspecification. Theworkwill be doneon work orders issued as required for various amounts types of and workcoveredby the specification. Theworkorderedunderthis contract will be performed in, on, or adjacentto Postal Service-owned -leasedfacilities within the geographic or area specifiedelsewhere this solicitation. in ¢. Thecontractingofficer may designate'~a contractingofficer's representative this for work. -" C,12 PROPOSALS (INDEFINITE.QUANTITY) (Clause FB-250) (June a. It is estimated that some the workrequiredunderthis contract will be performed of during premium (not regular workinghours). For the purpose this contract, regular time of working hours are between 8:00 a.m. and 5:00 p.m., Monday through Friday. Workordered to be accomplished during premium will be paid at a higher rate. Theindividual items of time suchwork will be increasedby 25 percent when listed on the work order. Those items wilt be identified as premium prices" by an increased time unit price andnotedin the scope of workto the workorder form. b. Thecontract amount eachwork order will be the total of eachunit price included in for that order, timesthe quantity required, timesthe multiplier enteredon the proposal.This amount includes all profit, overhead, bonds,insurance,andother contingencies no and allowance suchitems will be made for after contract award. c. Any change the applicable minimum in hourly rates of wages determined the as by Secretaryof Laborpursuantto the Davis-Bacon during the contract period will not affect Act the unit price to be paid by the Postal Servicefor workperformed underthe contract d. Proposals include all items as listed on the price schedule.Deletionof or may changes the unit prices or items of Work to shown the price schedule on will be cause for ...... f~jection theproposal. of

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C.13 WORK ORDERS (INDEFINITE-QUANTITY) (Clause FB-251) (June a. Nowork will be performed until a written work order has beensignedby the contractor andthe contracting officer andwritten Notice Proceed ~h=',,,~,~" ,,,~,4-,- the - "" ,,4~.. ~o with has beenissued by the contracting officer andreceivedby the contractor. Anywork performed the contractor undera workorder beforereceipt of the written Noticeto by Proceed that workorder will be at the contractor'sown for risk. b. Eachworkorder will describe the extent of workto be removed the extent and and type of new workto be installed. Descriptionsmay.be written, by sketchor by drawing.Each workorder will give the location whereworkis to be performed, state whetherworkmaybe performed during regular workinghours, anddescribethe requirements submittals. for Submittals include certificates, shopdrawings, may manufacturer's literature, data, test reports, and/or other documents providerequiredinformation on the material or that equipment. Each workorder will be limited to workat a single facility. d. The date for beginningwork undera work order maynot be less than three calendar daysnor more than ten calendar daysfr.£m the date of receipt the contractorof the Noticeto Proceed. Upon beginningwork, the..contractor will proceed diligently towardcontract completion.Anydelay in the workb~yond contractor's control, may reported to the the be contracting officer or a designated representative,immediately, Each workorder will be considered separatelyfor all items in the contract, suchas e. scope of workandtime for completion. f. Schedule will be negotiatedfor eachworkorder before the workorder is issued, provided, however, that the cost of work not coveredby the price schedule not exceed may 25 percentof the total amount anyworkorder. of g. The maximum amountof any one work order is $250,000.

h. Noworkmaybe orderedfor a newbuilding construction except for site preparation and/or foundationworkfor a preengineered building purchased directly fro mthe manufacturer C.14 TIME FORCOMPLETION (INDEF NITE-QUANTITY) (Clause FB-252) (June 1988_ " ~ a. Thetime for completion the workrequired by eachwork order will be stated on of eachworkorder before the workorder is issued. b. The contractor maybe required to work during premium time, as well as during ., regular working hours for workordersrequiring urgentcompletion.Unit prices will be ..../ applied accordingly. \-.,. IQC-C Page11 of 99 pages

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- c. Thecontractor is requiredto performall workundera workorder for whicha Notice to Proceed beenissued andreceivedbefore the expiration date of the contract. If the has Noticeto Proceed undera workorder is not receivedby the contractor before the expiration date of the contract, the workorder will be considered terminatedfor the convenience the of Postal Service. C.15 SCHEDULING WORK (INDEFINITE-QUANTITY) (Clause FB-253) (June a. Beforeanyworkis started, the contractormustconfer with the contractingofficer's representatives and agree on a sequence procedures:means accessto premisesand of of building, delivery of materials, anduseof approaches; of corridors, stairways,elevators, use andsimilar means communications; the location of partitions, eating spaces of and for contractor's employees, the like. and Mail docks will not be made available for loading, unloading,storage,or fabrication of material exceptduring hours specifically approved the Postmaster. by
[

c. Contractor's employees mustnot par~ yehicles in customer parking areas. Contractor's employees park vehicles'In Postal parking areas only if spaces may are available andonly with prior approval'6f the Station Manager/Postmaster.

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SECTION D - PACKAGINGAN MARKING D

D,1

IDENTIFICATION OF CONTRACT DELIVERABLES (Clause OB-19) (June 1988)

Unless otherwise specified, the cover pageof each document prepared and submitted by the contractor to the Postal Serviceunderthis contract mustinclude the following information: a. Name business addressof the contractor. and b. Contract number. c. Name,position, and off~ce location ef the Postal Service's contracting officer's representative. d. Dateof report.

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SOLICITATION: 162640-96-A-0282 2 SECTIONE-INSPECTION AND ACCEPTANCE E,1 INSPECTION AND ACCEPTANCE--CONSTRUCTION (Clause11-11) (October1987)

SECTION E

a. Postal Service inspection of material andworkmanship be made reasonable will at timesat the site or off-site as the contracting officer may direct. b. If the contractordoesnot promptlyreplacerejected material or correct rejected workmanship, Postal Servicemay,by contract or otherwise,replaceor correct it and the cherge cost to the contractor. the c. Thecontractormustfurnish (without charge)all facilities, labor, andmaterialsneeded to conduct inspectionsandtests as requiredby the contractingofficer. Thecontractorwill be charged additional costs of inspection if material andworkmanship not readyat the any are time specifiedby the contractorfor inspection. d. The Postal Service mayexamine completed work by removingor tearing it out. The contractor mustreplaceor correct anyworkfoundnot to conform contract requirements. to If workis torn out andfoundto comply with c.t)'ntract requirements, contractingofficer must the make equitable adjustment the-services providedfor the inspection andreplacement an for of the work. e. ThePostal Servicewill inspect {he workas soonas practicable after completion. Acceptance an authorizedPostal Service representativeis conclusiveexcept in the case by of latent defects, fraud, grossmistakes amounting fraud, or Postal Servicerights under to any warrantyor guarantee. E.2 CONTRACTING OFFICER'S REPRESENTATIVE (Clause OB-21)Alternate IV (May1994)

a. A contracting officer's representative(COR) will be appointed the contracting by officer. Thename, address,telephone number, specific responsibilities andlimitations. and of the COR be providedto the contractorin writing by the contract start date.. TheCOR will maybe changed any time by the Postal Servicewithout prior notice to the design/build at entity. Notification of the change the COR, of including the name address the and of successor COR, will be pror~ptly providedin writing to the contractor by the contracting officer. b. The Postal Service reserves the right to use Construction Management Support Services Contractor(CMSSC) personnel,and/or other qualified personnelunder contract to the Postal Service, to perform duties as the COR. the

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SOLICITATION: 162640-96-A-0282 2

E.3

INSPECTIONS, CONTRACT COMPLETION, AND CLEANING UP (INDEFINITEQUANTITY)(Clause FB-261) (June 1988)

Notification of completionand request for inspection of work will be required for each work order. See the Inspection and Acceptance (Construction) clause of this contract.

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SOLICITATION: 162640-96-A-0282 SECTION - PAYMENT FUNDING F AND F.1 PROMPTPAYMENTFOR CONSTRUCTION CONTRACTS (Clause FB-272) (May1994/Interirn)

SECTION F

Notwithstanding other payment any termsin this contract, the Postal Servicewill make invoice payments contract financing payments and underthe terms andconditions specified in this clause, payment shall be consideredas being made the day the checkis dated or an on electronic fundstransfer is made. daysreferred to in this clauseare calendar All days,unless otherwise spec'~ied. a. Invoice payments. 1. For purposes this clause, there are several types of invoice payments of which may occurunderthis contractas follows: (a) Progresspayments, provided for elsewherein this contract, based if contracting Officer approvalof the estimatedamount value of the work or and services performed, includingp,.a.yments reaching for milestones anyproject: in (1) The duedate for ma~ing payments shall be 14 days after receipt of the payment request the designated by billing office, except as may be modified in accordance with paragraph FB 272-2 (herein). (2) The due date for payments retained by the Contracting Officer accordance with clause FB272-1, ProgressPayments under Fixed-Price Construction Contracts,shall be 30 ~aysafter approval reteaseto the for Contractor the Contracting by Officer. (b) Final payments basedon the completion and acceptanceof all work and presentation release all claimsagainstthe PostalService of of arising by virtue of the contract, andpayments partial deliveries that havebeenaccepted the for by PostalService(e.g., eachseparate building, or other divisicmof the contract for which price is statedseparately the contract). the in (1) The duedate for making suchpayments shall be either the thirtieth dayafter receiptby the designated billing office of a properinvoicefromthe Contractor,or the thirtieth dayafter PostalServiceacceptance the work of or services completed the Contractor, by whichever later. is (2) Ona final invoice wherethe payment amount subject to contract is settlementoptions (e.g., release of claims), acceptance shall deemed have occurred the effective date of the contractsettlement. on

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2. Aninvoice is the Contractor'sbill or written requestfor payment underthe contract for work or services performed under the contract. An invoice shall be preparedand submitted the designated to billing office, A properinvoicemust includethe itemslisted in subdivisionsa.2.(a) througha.2.(i) of this clause. If the invoice doesnot comply theserequirements, Contractor be notified of the defectwithin seven a~.erthe the will days receipt of the invoice at the designated billing office. Untimely hOt,cation will be taken into account the computation anyinterest penaltyowed Contractor the manner in of the in described paragraph of this clause: in a.4. (a) Name addressof the Contractor; and

(b) Invoice date; (c) Contractnumber other such authorization for workor services performed or (including order number contract line item number); and (d) (e) Description the workor servicesperformed; of Delivery andpayment terms(e.g., promptpayment discountterms);

(f) Name add.r~ss.Sf Contractorofficial to whom and payment to be sent is (mustbe the same that in the contractor in a propernoticeof assignment); as (g) Name (where practical), title, telephonenumber, mailing addressof and person(s) be notified in the event a defective to of invoice; (h) For payment described subdivisiona.l.(a) of this clause, substantiation in the amounts requested certification in accordance and with the requirements of clause FB272-1, Progresspayments UnderFixed-Price ConstructionContracts; and (i) Anyother informationor documentation requiredby the contract.

3. Aninterest penalty shall be paid automaticallyby the designated payment office, without request from the Contractor, if payment not made the due date andthe. is by followingconditions met,if applicable: are (a) A properinvoice was received the designated by billing office;

(b) A receiving report or other Postal Service documentationauthorizing payment processed was and there wasno disagreement over quantity, quality, Contractor compliance anycontracttermor condition,or with requestedprogress payment amount;and

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SECTION F

(c) In the caseof a final invoice for anybalance fundsduethe Contractor of for work or services performed,andthe amount not subject to further contract was settlement actionsbetween PostalServiceandthe contractor. the 4. Theinterest penalty shall be at the rate established by the Secretaryof the Treasury underSection12 of the Contracts Disputes of 1978 U.$.C.611)that is ACt (41 effect on the dayafter the duedate, exceptwhere interest penaltyis prescribed the by other governmental authority. Theinterest penalty shall accruedaily on the invoice payment amount approved by the Postal Service and be compounded 30-day in increments inclusive fromthe first dayafter the duedatethroughthe payr0ent date. That is, interest accrued the endof any30-day at pedod will be added the approved to invoice payment amount be subject to interest penalties if not paid in the succeeding and 30-day period.If the designated billing office failed to notify the Contractor a defective of invoice within the periodprescribed subparagraph of this clause, thenthe duedate on the in a.2. correctedinvoice will be adjustedby subtracting the number daystaken beyond of the prescribed notification of defectsperiod. Anyinterest penaltyowed Contractor the will be basedon this adjusted due date. Adjustments will be made the designatedpayment. by office for errorsin calculating penalties,if requested the Contractor. by (a) For the sole purpose ,computing interest penaltythat mightbe duethe of an Contractorfor payments describedin subdivision a.l.(b) of this clause, Postal Serviceacceptance al~proval shall be deemed haveoccurredconstructively or to on the seventhday after the Contractorhas completed work or services in the accordance the termsandconditionsof the contract. In the eventthat actual with acceptance approvat occurs within the constructive acceptance approval or or period, the determination an interest penaltyshall be based the actualdate of of on acceptanceor approval. Constructive acceptanceor constructive approval requirementsalso do not compelPostal Service officials to accept work or services, approve Contractor estimates,perform contractadministration functions, or make payment to the Contractor prior fulfilling responsibilities. (b) Thefollowing periodsof time will not be includedin the determination of interestpenalty: (1) The periods taken to notify the Contractor of defects in invoices submitted the PostalService,but this periodmay exceed to not seven days; and (2) The period betweenthe defects notice and resubmission of the corrected invoiceby the Contractor. Interest penaltieswill not continue accrue to after the filing of a claimfor (c) such penalties under the Disputes Clause, or for morethan 1 year. Interest penaltiesof less than$1 need be paid. not

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SECTION F

(d) Interest penalties are not required on payment delays dueto disagreement between Postal Service andthe Contractorover the payment the amount other or issues involving contract compliance,or on amounts temporarily withheld or retainedin accordance the termsof the contract. Claims with involving disputes andanyinterest that maybe payablewill be resolvedin accordance the DisputesClause. with 5. An interest penalty shall also be paid automatically by the designatedpayment office, without requestfrom the Contractor,if a discount for promptpayment taken is improperly.Theinterest penaltywill be calculatedon the amount discounttakenfor the of period beginning with the first dayafter the endof the discountperiod throughthe date when Contractor paid. the is b. Contract Financing Payments.For purposesof this clause, if applicable "contract financing payments" means Postal Service disbursement moniesto a Contractor under a a of contract clauseor other authorizationprior to acceptance suppliesor servicesby the Postal of Service, other than progress paymentsbased on estimates of amountand value of work performed.Contract financing payments include advance payments interim payments and under cost-typecontracts. If this contractprovides contract'linan¢ing, for requests payment for shall be submitted to the designated billing offce as spedi~ed the this contract or as directed by the contracting in officer. Contract financingpayments shall be made the thirtieth dayafter receipt of a proper by contract financingrequestby the designated billing office. In the eventthat an audit or other review of a specific financing request is required to ensurecompliance with the terms and conditions of the contract, the designated payment office is not compelled make to payment by the date specified. For advance payments, loans or other arrangements that do not involve recurrent submissions contract financing requests,payment of shall be made accordance in with the corresponding contract termsor as directed by the. Contracting Officer. Contractfinancing payments shall not be assessed interest penaltyfor payment an delays. c. TheContractorshall include in eachsubcontractfor property or services (including ¯ materialsupplier)for the purposes performing contractthe following: of this 1. A payment clause which obligates the Contractor to pay the subcontractor for satisfactory performance underits subcontract later than seven not daysfromthe receipt of payment of suchamounts are paid to the Contractor out as underthis contract; 2. Aninterest p~naltyclausewhichobligatesthe Contractor payan interest penalty to for eachpayment made accordance not in with the payment clause:

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SOLICITATION: 162640-96-A-0282

SECTION F

For the period beginning the day after the required payment date and (a) endingon the date on whichpayment the amount is made, of due and (b} Computed the interest rate establishedby the Secretaryof the Treasury at for interest payments underSection12 of the ContractsDisputesAct of 1978(41 U.S.C.611)in effect at the time the Contractor accrues obligation to payand the interest penalty,and (¢) A clause requiring eachsubcontractorto include a payment clause and interest penalty clause in eachof its subcontracts to require eachof its and subcontractors include suchclausesin their subcontracts to with eachlower-tier subcontractor supplier. or d. Theclausesrequired by paragraph of this clause shall not be construed impair the c. to right of Contractor subcontractor anytier to negotiate,andto include in their subcontract or at provisions which: 1. Permit the Contractor or subcontractor to retain (without ceuse)a specified percentage eachprogresspayment of .otherwise dueto a subcontractor satisfactory for performance underthe subcontract w(tl%utincurring any obligation to paya late payment interest penalty, in accordance w~.th ~hetermsandconditionsagreed by the padiesto to the subcontract; giving suchrecognitionas the parties deem appropriate the ability of a to subcontractor furnish a performance to bondanda payment bond; 2. Permitthe Contractor a subcontractor make determination or to a that part or all of the subcontractor's request for paymentmaybe withheld in accordancewith the subcontract agreement; and 3. Permit suchwithholding without incurring any obligation to pay a late payment penalty if: '-. (a) 'A notice conformingto the standardsof paragraphg. of this clause has been previouslyfurnishedto the subcontractor, and (b) A copyof any notice issued by a Contractorpursuantto subdivision d.3.(a) of this clausehasbeen furnishedto the Contracting Officer. e. If a contractor, after making request for payment the Postal Service, but, before a to makinga payment a subcontractor for the subcontractor's performance to covered by the paymentrequest, discovers that al