Page E8

Contract DAAK 30-77-C-0018

SECTION E (CONT'D)

E.20.8 Notification to the contractor of an increase or decrease in the funds available for performance of this contract as a result of a clause other than this clause (e.g. the "Changes" clause) shall not constitute the notification contemplated by paragraph E.20.3 of this clause.

E.20.9 Nothing in this clause shall affect the right of the Government to Terminate this contract pursuant to General Provision entitled "Default" or General Provision entitled "Termination for Convenience of the Government".

E.21 PAYMENT FOR CLIN 0001:

Subject to the availability of funds and any withholding provisions of this contract, payment of costs will be made pursuant to the General Provision of this contract entitled "Progress Payments" to the contractor on a bi-weekly basis. If the contractor's accounting system is based on cost of sales method, G&A expenses shall not be an item for reimbursement under the "Progress Payments" clause. Such payments may be adjusted in accordance with paragraph (f) of the General Provision hereof entitled "Incentive Price Revision Firm Target".

E.22 PAYMENT FOR CLIN 0003:

E.22.1 For CLIN 0003, payment of cost will be made pursuant to the General Provision entitled "Progress Payments", to the contractor on a bi-weekly basis. If the contractor's accounting systern is based on cost of sales method, G&A expenses shall not be an item for reimbursement under the "Progress Payments". Such payments may be adjusted in accordance with paragraph (f) of the General Provision hereof entitled "Incentive Price Revision - Firm Target".

E.23 PAYMENT FOR CLINS 0005, 0005, and 0007:

E.23.1 For CLINS 0005, 0006 and 0007, payment of cost will be made pursuant to the General Provision entitled "Progress Payments" to the contractor on a bi-weekly basis. If the contractors accounting system is based on cost of sales method, G&A expenses shall not be an item for reimbursement under the "Progress Payments" clause. Such payments may be adjusted in accordance with paragraph (f) of the General Provision hereof entitled "Incentive Price Revision Firm Target".

E.23.2 For the payment of CLIN 0007, the unit billing price shall be that amount specified for CLIN 0007.

3

Page E9

Contract DAAK 30-77-C-0018

SECTION E (CONT'D)

E.24 PAYMENT FOR CLIN 0010:

Payment shall be made monthly upon submission of Standard Form 1024, Public Voucher for Purchases and Services Other than Personal, with invoices attached showing the actual number of billable days of services performed by individual contractor personnel by categories, less deductions, if any. Each invoice shall be supported by a Certificate of Performance, executed by the individual contractor personnel who performed the services for which payment is requested and certified in writing by the Technical Representative appointed by the Contracting Officer. This certificate shall contain a statement of work performed during the billing period by each individual, including overtime and other direct reimburseable costs.

Page Fl

Contract DAAK30-77-C-0018

SECTION F

DESCRIPTION/SPECIFICATION

The Contractor, acting as an independent contractor and not as an agent of the Government, shall on the basis of the pricing set forth in Section E, provide all supplies and services, to perform:

(a)

(b)

Transitional Engineering and Producibility Engineering and Planning (TE/PEP)

Low Rate Initial Production (LRIP), and

(c) at the option of the Government, Initial Production (IP) of the Improved TOW Vehicle (ITV) System.

The contract effort shall result in an ITV system which complies with the specification, Attachment 1. The Scope of Work set forth in this Section F is divided into three parts: Part I (Paragraphs F.1 through F.10) - TE/PEP, Part II (Paragraphs F.Il through F.16) - LRIP, and Part III (Paragraphs F.17 through F.23) - IP and follows the format outline at Level 2 of the Work Breakdown Structures, Attachments 6, 17, and 7 respectively.

PART I TRANSITIONAL ENGINEERING/PRODUCIBILITY ENGINEERING AND PLANNING

F.1 TE PRIME MISSION PRODUCT

F.1.1 The contractor shall perform the transitional engineering effort required to evolve from the Preliminary Baseline Configuration (F.10.4.2.1) to the LRIP Baseline Configuration (F.10.4.2.2). This effort shall include, but not be limited to the following:

tests.

F.1.1.1

Correction of the deficiencies, if any, resulting from the DTI/OTI

F.1.1.2 Incorporation into the ITV system of all design changes required to meet Attachment 1, which reflects all additions to the ROC.

F.1.1.3 Incorporation of all designs required to assure the integration of GFE (Attachment 3) into the ITV system.

Page F2

Contract DAAK 30-77-C-0018

SECTION F (Cont'd)

F.1.2 The contractor shall redesign and refurbish to the Preliminary Baseline Configuration his two competitive prototypes and deliver one of the prototypes for follow-on contractor reliability and durability testing (See F.4.2.7) to be completed within 210 days after award. The remaining prototype will be utilized by the contractor to prove out test corrections and design changes.

F.2 TRAINING:

F.2.1 The contractor shall provide instructional services by assigning an adequate number (See F.2.12) of qualified instructor personnel to develop and prepare instructional materials and aids and to conduct the training courses listed below:

F.2.1.1 Supervisory Technical Training Course for Engineer and Test Personnel (QTV/DI). Provide one (1) class of not more than three (3) days, for no more than twelve (12) students at the contractor's facility. Classes to be completed prior to start of DT II/OT II testing. The course shall be designed to prepare Engineer and Senior Test Personnel to be responsible for supervising test activities, monitoring the conduct and results of tests, and providing engineering guidance and technical supervision during the test period. The course will be technical in nature and should cover equipment functions, equipment interfaces, and test plans. It should expand on those areas to include an understanding of output information from reliability, maintainability and performance assessments, specialized test requirements, evaluation methods and functions. The course should provide adequate classroom laboratory work experience facilities.

F.2.1.2 Maintenance Instruction. Provide one (1) class of one (1) week in length to no more than twelve (12) students at a site to be determined by the Government. Class to be completed prior to commencement of DT II/OT II testing. The course shall be designed to prepare DOD Instructor, and other selected Government personnel to be responsible for instructing and performing organizational level of maintenance and intermediate level of maintenance (DS/GS), with the skills and knowledge to perform the following functions: install, operate, check-out, troubleshoot, repair, and maintain the equipment under consideration. Training will also include the operation and maintenance of special test equipment, if any, procured under this contract and special ancillary equipment required to operate as a system, provide adequate classroom laboratory work experience facilities.

F.2.1.3 Operator Instruction. Provide one class of one week in length to not more than eight students at a site to be determined by the Government. Class to be completed prior to commencement of DT II/OT II. The course shall be designed to prepare DOD Instructor and other selected Government personnel to be

Page F3

Contract DAAK 30-77-C-0018

SECTION F (Cont'd)

commander, gunner, or assistant gunner for the ITV. Driver training is required only to the extent that the ITV driving tasks are different from the M113A1.

F.2.1.4 Advisory Services. Provide qualified instructor personnel to perform instructor advisory services at the US Army Training Facility or DOD facilities as may be directed by the Contracting Officer. Normally the instructor advisory services will be. only required after the completion of the Instructor and Key Personnel course. Devote no more than 40 hours of initial contractor training instruction. The instructors assigned to provide these services will be required to perform one or more of the following:

F.2.1.4.1 Assist Military instructors in the preparation and improvement of training material and in conducting the training course.

F.2.1.4.2 Develop or revise training data and aids for training course.

F.2.2 Training Equipment. The contractor shall provide and maintain sufficient equipment, materials and tools required for the practical/ work experience portion of the job skills type training course.

F.2.3 Training Manuals. The contractor shall provide as class text, the Draft Technical Manuals in preparation under this contract. Provide one copy of the appropriate (operator or maintenance) manual to each student for use during course and retention upon graduation.

F.2.4 Training Data. The contractor shall develop, prepare, and provide all instructional data to complete the training course.

- F.2.5 Instructional Evaluation. The contractor shall prepare and administer an exam to demonstrate that the trainee (Instructor and Key Personnel) has acquired both theoretical and practical/work experience skills on the equipment as indicated by the curriculum outline (program of instruction) and the course lesson guides. Time used to conduct and review the examinations shall not exceed one tenth of the total time allocated for the course.

F.2.6 Instructional Administration. The contractor shall prepare and maintain a current training plan which will explain in detail, the method, schedules, equipment and materials to be furnished and used in conducting the training

courses.

F.2.7 Methods of Instruction. The contractor shall conduct training courses by conference, demonstration and practical exercise methods. The training course will be heavily orientated to practical lessons.