WHEREAS, The Transport Company of Texas and the Government are parties to an agreement, Contract NOas 59-4176-c, under which the Transport Company of Texas furnishes logistic support to Government installations on Kwajalein Island; and WHEREAS, Section E entitled "Option" of Contract NOas 59-4176-c provides that the Government has an option to renew the contract for additional period not to exceed two (2) years, with modifications mutually agreeable to the parties;

and

WHEREAS, the Government has reviewed the competitive situation and has determined that it is in the best interest of the Government to exercise the option and extend the contract for a period of fifteen (15) months; and

WHEREAS, negotiations have been conducted and a mutually satisfactory agreement reached by the Contractor and the Government for the extension of the contract;

NOW, THEREFORE, effective 1 July 1950 Contract NOas 59-4176-c is amended as follows:

1. Under Section A, "Articles to be Furnished and Estimated Cost and Fee", make the following changes:

2.

(b) Increase the total estimated cost by $12,631,650.00.

(c) Increase the fixed fee by $785,000.00.

(a) Increase the total estimated cost plus fixed fee by $13,416,650.00.

Under Section B, "Deliveries", add the following:

Item 3

The services and materials hereunder shall be provided by the Contractor during the period from 1 July 1960 to and including 30 September 1961.

3. The following clauses and exhibits are deleted:

4.

(a) Sections C through RR;

(b) The provisions of the existing contract contained on
DD Form 748 (1 Dec 53);

(c) Exhibits B and C including Schedules I and II of Exhibit C.

The following clauses and exhibits are added to and made a part of this contract:

(a) Sections C, D, E, G, H, I, L, and V and Exhibits B and C,
including Schedules I and II of Exhibit C, all as attached
hereto;

(b) DD Form 748 (Navy) (1 July 1958) and Buweps Supplement CR-S
(Jan. 60), omitting numbers 4, 5, 7, 10, 12, 13, 18, 19, 20,
25, 28, 29, and 33, as attached hereto.

(c) Exhibit D as attached hereto.

Acceptance of the services hereunder will be made at the location where such services are performed.

(e) SECTION J

CHARGES TO BE COLLECTED FOR FURNISHING OF PERSONAL SERVICES

Escept as may be provided for under the terms of this contract, the Contractor is not authorized to furnish personal services free of charge either to Contractor or U. S. Government Personnel. Personal services as used herein includes domestic services, laundry and dry cleaning services, barbering and beautician services, tailoring services and any other services for the personal benefit of the person to whom furnished.

SECTION C DESCRIPTION OF ITEMS AND SPECIFICATIONS

Services and materials shall be provided by the Contractor as

necessary to accomplish the requirements specified in Exhibit

B hereof.

SECTION D CONTRACT ADMINISTRATION

The administrator of this contract shall be the individual

Written notifi

designated as such by the Contracting Officer.
cation to the Contractor of the individual so designated shall
be given by the Contracting Officer within 10 days after execu-
tion of this Contract. The Contract Administrator or his duly
authorized representative shall be physically located on
Kwajalein. He shall observe the overall operations of the Con-
tractor. He shall make available to the Contractor all Govern-

ment-owned equipment, materials and facilities on Kwajalein Atoll
required for the performance of this contract. He shall be the
representative of all the United States Government Agencies,
foreign Governments and private parties on Kwajalein Atoll re-
questing Contractor services and, as such, shall provide the
Contractor with User requirements for logistic support. He
shall also approve from time to time the overall ceiling in
personnel to be maintained by the Contractor on Kwajalein Atoll.

OPTION

The Government shall have an option to renew this contract for
two successive periods, the first to commence 1 July 1960 and
end on 30 September 1961, the second to commence 1 October 1961
and end on 30 September 1962, with such modifications in Exhibit
B hereof and the estimated cost and fixed fee as the parties

SECTION G

may agree upon at the time of each option exercise. The Government may exercise the option for the first successive period without obligation to exercise the option for the second period. The exercise in each case shall be by written notice signed by the Contracting Officer and furnished to the Contractor on or about 15 July of the year involved.

GOVERNMENT FURNISHED PROPERTY

(a) The Government-furnished property hereunder shall be all
existing Government-owned equipment and facilities on Kwajalein
Atoll which are required for the performance of this contract
and all existing Government-owned material on Kwajalein Atoll
which is required for performance of this contract.

(b) Upon depletion of existing supplies of Government-owned
material on Kwajalein Atoll, the Contractor shall procure supplies
for non-merchandizing functions within the inventory levels
established by the Contract Administrator through regular Navy
channels. If the contractor determines that the required supplies
are not available from current Navy stocks at NSC Oakland,
procurement shall be from sources determined by the contractor
and consistent with the best interests of the Government.

The

Contractor shall procure supplies for the merchandizing facili-
ties within the monetary inventory level established by the Con-
tract Administrator. Procurement of such supplies shall be through
channels determined by the Contractor and consistent with the

best interests of the Government.

(c) The Contractor's personnel shall be housed in Governmentowned quarters on Kwajalein Atoll. The assignment to quarters,

SECTION H

barracks, bachelor officer quarters or family housing shall be
made on an equitable basis considering the status, position and
requirements of individuals and available housing space. Fifty
family housing units are presently assigned to the Contractor and
occupied by its employees. No less than 30 family units shall
be assigned to the Contractor for use by its employees after
such 50 family units occupied by Contractor's employees as of
1 July 1960 shall have been phased down to 30 by attrition or
expiration of contract of such employees occupying the excess
over 30. Notwithstanding the provisions of the above, the Con-
tract Administrator may, when his judgment so determines, assign
additional quarters above 30 to the Contractor for his use, if
so desired by the Contractor, for such periods of time as may
be specifically designated. A charge will be made for Contrac-
tor employees occupying quarters at the rates set forth in
Schedule II of Exhibit C, and such charge will be deducted
from allowable wages under Schedule I of Exhibit C hereto.
Amounts so deducted from Employee's salaries will be credited
against amounts otherwise due the Contractor under this contract.

COMPENSATION

(a) The costs of performance of this contract, as referred to in paragraph (a) of the "Allowable Cost, Fixed Fee, and Payment," clause hereof, are hereby defined as the cost of labor, materials, and other items of the nature described in subparagraphs (1) through (9) below, incurred by the Contractor and which are claimed by the Contractor and accepted as such costs by the Comptroller of the Navy (Contract Audit Division),