Definition of Hour: A labor hour is hereby defined as an hour of direct labor capable of exact quantitative measurement performed by engineering personnel engaged in creating and/or regulating the technical activities of the contract.

a. The effort to be performed in accordance with CLIN 0006 and 0007 of Section B, shall be directed as task orders by the Procuring Contracting Officer (PCO), using AFMC Form 702 as a unilateral modification to the contract. The modification shall:

(1) Provide specific direction as to the task order to be accomplished.

(2) Establish a period of performance for the task order so directed.

(3) Establish the maximum number of direct labor hours and estimated cost to be expended on each task order statement.

(4) Cite Special Provision H-12 as authority for the task.

(5) Funding, if any, will be provided in accordance with the clause of the contract entitled "Limitation of Funds"

b. Any hours authorized, but not used, may be authorized for a different task.

c. In no event shall the Contractor exceed the direct labor hours and/or estimated cost authorized in each individual modification without written approval of the PCO. In the event, additional hours are necessary, an amendment to the said task order shall be issued in a subsequent modification.

d. A determination will be made whether the technology study is necessary and cost effective to authorize the contemplated task. The proposed task orders are to be worked with the Contractor and the Contracting Officer's Technical Representative (COTR) within the SPO and reviewed by the Procuring Contracting Officer (PCO) prior to being forwarded to the Contractor. Upon receipt of the proposed task order, the Contractor shall submit a technical and cost proposal for the task order effort to the PCO.

e. After proposal evaluation, the PCO/Buyer and COTR may meet with the Contractor to discuss the proposal (e.g., allocation of the level of effort and other resources, costs, period of performance, etc.) and technical aspects. During these discussions, the task order statement and
proposal will be revised as necessary. Upon issuance of a contract modification incorporating the approved final task order statement, the Contractor shall commence the work required by the task order statement.

f. The task order cost proposal shall be in the following format:

TASK ORDER COST PROPOSAL FORMAT

Labor Category Hours Rate Cost
Sr Sci XX $XX.XX $X,XXX.XX
Sci XX $XX.XX $X,XXX.XX
Res Spec XX $XX.XX $XXX.XX
Technician XX $XX.XX $XXX.XX
Clerical XX $ X.XX $XXX.XX
Consultants XX $XX.XX $XXX.XX
Subtotal $XX,XXX.XX
Overhead X,XXX.XX XXX% $X,XXX.XX
Subtotal $XX,XXX.XX
Travel
1 Trip/2 People/ 3 Days $XXX.XX
Air Fare - $XXX.XX
Per Diem - $XXX.XX
Car Rental - $XX.XX
Subtotal $XX,XXX.XX
Supplies/Materials
3 Optics @ $XXX ea $X,XXX.XX
2 Widgets @ $X,XXX ea X,XXX.XX
Subtotal XX,XXX.XX
Subcontracts $XX,XXX.XX
(Same element by element breakdown as prime for all subcontracts, regardless of cost.)
G&A XX,XXX.XX XX% $X,XXX.XX
Subtotal Cost $XX,XXX.XX
Fee $XX,XXX.XX
Subtotal $XX,XXX.XX
NMGRT (If Applicable) $X,XXX.XX
Total $XX,XXX.XX

g. The Contractor shall provide a specific description of the items to be acquired for CLIN 0005 as follows:

(1) Justification of GFP/CAP (if any) required for this task order to include item identification and classification (i.e., special test equipment, facilities, etc.).

(2) Price quotes, catalog prices, etc., for supplies/materials required for this task order.

(3) For task orders on which the negotiated value of "Other Direct Costs" (travel, materials, ODC) are in excess of $500,000.00, the Contractor shall submit certified cost and
pricing data to support negotiation of those costs and, upon completion of the negotiation, a Certificate of Current Cost or Pricing Data.

h. The cost associated with proposal preparation should be included in the proposal.

i. Upon completion of each task order, the Contractor shall provide actual expenditure of hours, dollars, and any other pertinent data to the PCO to closeout said task.