MHE Maintenance for DDRT

1. This is a combined synopsis/solicitation for commercial items prepared in accordance with the format in Subpart 12.6 - Streamlines Procedures for Evaluation and Solicitation for Commercial Items in conjunction with the Federal Acquisition Regulations (FAR) Subpart 13.5 Test Program for Certain Commercial Items. This announcement constitutes the only solicitation; quotes are being requested and a written solicitation will not be issued. This is a Request for Quote (RFQ) and the RFQ number is SP3300-15-Q-0084. 2. This notice incorporates provisions and clauses in effect through Federal Acquisition Circular (FAC) 2005-80 effective 07 May, 2015 and Defense Federal Acquisition Regulation Supplement (DFARS) DPN 20150420 edition and Defense Logistics Acquisition Directive (DLAD) Current to Revision 5 and PROCLTR 2015-08. The complete text of any of the clauses and provisions may be accessed in full text at http://farsite.hill.af.mil. 3. This Request for Quotation (RFQ) is being issued to establish a hybrid firm-fixed price and time and materials contract for preventative maintenance (scheduled) and remedial maintenance (unscheduled) services to provide all labor, materials, tools, equipment and supervision necessary to perform on Government owned Ferro, Hobar, Presto Exide, Myers, WRKSA, Crown, Raymond, Lando, Hyster, Taylor, Clark and other various material Handling Equipment at DLA Distribution Corpus Christi, TX. The services shall be performed in accordance with Statement of Work (SOW) provided at Attachment 3 on the equipment listed in Attachment 4. 4. This RFQ will be awarded on small business set-aside basis. The North American Industry Classification System (NAICS) code for this project is 811310 and the size standard is $7,500,000.00 5. Period of Performance shall be on or about as follows: Base Year: 24 September, 2015 through 23 September, 2016 Option Year 1: 24 September, 2016 through 23 September, 2017 Option Year 2: 24 September, 2017 through 23 September, 2018 6. Delivery Schedule Desired Delivery: Within 21 calendar days after the effective date of the delivery order. Required Delivery: Within 30 calendar days after the effective date of the delivery order. 7. Insurance: Any required insurance certifications must be submitted to the Contracting Officer within ten (10) days after the date of contract award as referenced in FAR 52.228-5 and under Special Contract Requirements. 8. The offeror must complete the certification of the accounting system found in Attachment 6. Failure to provide the certification will eliminate the offeror from consideration for award. The offeror shall also provide a description of the accounting system in this quote which demonstrates the ability of the vendor adhere with the items found in the certification statement. If the offeror possesses a DCAA approved accounting system, the offeror may provide the date of approval and the cognizant DCAA office in lieu of the description required above. "The Government does reserve the right to conduct a post-award audit." 9. INVOICING AND PAYMENT - Invoicing and Payment will be made via WAWF. See DFARS Clause 252.232-7006 found page 13 of the RFQ. Billing shall be made monthly in arrears. Invoices shall contain all required price and cost documentation, as applicable. Invoices shall be neat and legible and clearly state the labor hours, repair parts and associated costs, and any other required information, as applicable. The COR shall enter the Preventive maintenance (PM) and Remedial Maintenance (RM) invoice data into EMACS prior to certified invoice. 10. CONTRACT PRICING: CLINs X00AE, X00AF and X00AG are time and material CLINs. Reference FAR 52.214-4 Alt I, the contractor shall be reimbursed for actual hours incurred only. The contractor shall not exceed the CLIN/contract ceilings without prior approval from the Contracting Officer. The price charged to the Government for a purchased part under CLIN X00AG shall not exceed the contractor's established catalog or market price. If the contractor obtains a part at a discounted cost, the contractor shall pass the savings on to the Government. Upon request of the Contracting Officer Representative (COR), the contractor will be required to provide invoices and/or proof of pricing for the contractor purchased part. 11. WAGE DETERMINATION: This requirement is subject to the Service Contract Act. Wage determination No. 2005-2507, Revision No. 16, dated 30 December, 2014, is provided as Attachment 16. Pursuant to FAR 52.222-42, Statement of Equivalent Rates for Federal Hires, the following data is provided for informational purposes only and is not a Wage Determination. The Wage Grade (WG) equivalent to this position is as follows: Heavy Equipment Mobile Mechanic = $20.73 per hour (WG-5803-10,Step 1) 12. Contractor shall type company name, address, and CAGE code exactly as it appears in the DoD System for Award Management (SAM) Database. Company Name: _________________________________ Company Address: _________________________________ _________________________________ _________________________________ Point of Contact: __________________________________ Telephone: _________________________________ CAGE Code: _________________________________ EMAIL __________________________________ SYSTEM FOR AWARD MANAGEMENT - A prospective awardee shall be registered in the System for Award Management (SAM) database prior to award, during performance and through final payment of any contract resulting from this solicitation. Offerors may obtain information on registration and annual confirmation requirements via the Internet at http://www.sam.gov. 13. Questions shall be submitted in writing via e-mail to: DLA Distribution Acquisition Operations J7-AB J Avenue, Building 404 New Cumberland, PA 17070-5059 Email: contact@example.gov 14. Proposal Due Date: See FAR 52.212-1 below 15. The Government is not soliciting for the "same old way" of doing business. The Government encourages proposals that will achieve savings through innovative processes. Furthermore, DLA Distribution personal are working to eliminate unnecessary requirements and negotiating for a reduction in supplies/material prices. Therefore, your assistance is requested in reducing prices and improving our buying processes. Attachments: Attachment 1 - Schedule of Supplies (PDF) Attachment 2 - Schedule of Supplies (ExCell Fill In) Attachment 3 - Statement of Work For PM and RM Service at DLA Distribution Corpus Christi Attachment 4 - DDCT- Equipment Inventory List Attachment 5 - Certification of Offeror Attachment 6 - Evaluation Factors for Award. Attachment 7 - Offer Submission Instructions Attachment 8 - Past Performance Evaluation. Attachment 9 - Maintenance task List Attachment 10 - Tech Inspection Form Attachment 11 - Sample Maintenance Work Order Attachment 12 - TE 1.1 Contractor Personnel Security Info Attachment 13 - TE 1.2 CAC Procedures for DDCT Attachment 14 - CDRL for CAC Procedures Attachment 15 - DLA SOP Attachment 16 - DoL Wage Determination No. 2005-2507, Revision No. 16, dated 30 Dec, 2014. Attachment 17 - Blank EMAC 16. Work Performed at DLA DISTRIBUTION CORPUS CHRISTI 540 FIRST STREET SE BLDG 1846 CORPUS CHRISTI TX 78419-5255 For transportation assistance see DLAD 52.247-9034. For First Destination Transportation (FDT) awards see DLAD 52.247-9059 and contract instructions instead. ORIGANIZATIONAL CONFLICT OF INTEREST 1. The contractor shall be ineligible from participation as a contractor, subcontractor, or consultant in any procurement arising or resulting from any of the services provided to DDC on this contract. This restriction includes providing services to any potential bidders on such procurements. The contractor shall not incorporate its products or services in any Performance Work Statement or specification unless directed to do so in writing by the Contracting Officer. 2. If the contractor in the performance of this contract obtains access to information such as plans, policies, reports, studies, financial data, internet data, or any other non-public information or information by the Privacy Act, the contractor agrees not to release such information without prior written approval from the Contracting Officer. The use of such information for personal gain is prohibited. 3. In addition, the contractor agrees that to the extent it receives or is given access to proprietary data, or other confidential or privileged technical, business, or financial information under this contract, it shall treat such information in accordance with any restrictions imposed on such information. DAMAGE TO CONTRACTOR SUPPLIES, MATERIALS, EQUIPMENT, AND PROPERTY The Government will not be responsible in any way for damages to the Contractor's supplies, materials, equipment, and property or to contractor or employees' personal belongings that are caused by fire, theft, accident, or other disaster/misfortune. The term "Contractor" includes subcontractors. EMPLOYMENT OF US GOVERNMENT PERSONNEL RESTRICTED In performing this contract, the Contractor shall not use as a consultant or employ (on either a full or part time basis) any active duty U.S. Government personnel (civilian or military) without the prior written approval of the Contracting Officer. Such approval may be given only in circumstances where it is clear that no laws and no DoD or U.S. Government instructions, regulations, or policies might possibly be contravened and no appearance of a conflict of interest will result. ILLEGAL ITEMS NOT AUTHORIZED ON FEDERAL INSTALLATION Illegal drugs, guns or other contraband are not authorized on this Federal installation. It is the contractor's responsibility to ensure that its employees working on-site at this installation are U. S. citizens or legal aliens with no outstanding warrants. This installation is manned by a DoD Police Force who possesses apprehension authority, which includes holding suspects for local authorities. The local authorities can issue a citation that charges the individual with a specific offense and requires the individual to appear before a Federal Magistrate. This agency processes illegal aliens in accordance with INS instructions. MANAGEMENT OF CONTRACTOR EMPLOYEES The Contractor personnel are employees of the Contractor and under the administrative control and supervision of the Contractor. The Contractor, through its personnel, shall perform the tasks prescribed in the Performance Work Statement. The Contractor shall select, supervise, and exercise control and direction over its employees under this contract. The Contractor shall not supervise, direct, or control the activities of the Government personnel or the employee of any other contractor, except any subcontractor employed by the Contractor on this contract. The Government shall not exercise any supervision or control over the Contractor in the performance of contractual services under this contract. The Contractor is accountable to the Government for the actions of its personnel. SUBMISSION OF SERVICE/DELIVERY SLIPS Service verification slips must be delivered to the Technical POC/Contracting Officer's Representative (COR) following each on-site visit within one business day. Verification slips shall include the contract number, person's name who performed the service, date of time of performance, duration of service, and the tasks performed. All verification slips must be signed by an authorized person for whom the service was performed. Failure to comply will result in a delay in payment. MARK CONTRACT NUMBER ON ALL CORRESPONDENCE Contractor must mark the contract or purchase order number on all paperwork and shipments. The order number must appear on the exterior of the shipment. Failure to follow these instructions will hold up payment to you and could result in the return of merchandise at your expense. The Government is not soliciting for the "same old way" of doing business. The Government encourages proposals that will achieve savings through innovative processes. Furthermore, DLA Distribution personnel are working to eliminate unnecessary requirements and negotiating for a reduction in supplies/material prices. Therefore, your assistance is requested in reducing prices and improving our buying processes. Questions shall be submitted in writing via e-mail to contact@example.gov. The Government is not soliciting for the "same old way" of doing business. Furthermore, DLA Distribution personnel are working to eliminate unnecessary requirements and negotiating for a reduction in supplies/material prices. Therefore, your assistance is requested in reducing prices and improving our buying processes. DESIGNATION OF COR/ALTERNATE COR (a) The Contracting Officer (KO) will designate a COR/Alternate COR for this contract in writing prior to award of this order or contract. The COR/Alternate COR is responsible for monitoring progress and overall management of Contractor performance hereunder. In no event, however, shall any understanding or agreement, modification, change order, or other matter deviating from the terms of subject contract between the Contractor and any person other than the KO be effective or binding upon the Government, unless formalized by proper contractual documents executed by the KO prior to completion of this contract. (b) On all matters that pertain to contract terms, the Contractor shall contact the KO. When, in the opinion of the Contractor, the COR/Alternate COR requests effort outside the existing scope of the order or contract, the Contractor shall promptly notify the KO in writing. The Contractor under such request shall take no action unless authorized by the KO that the request is within the scope of the contract or the KO has issued a contractual modification. CONTRACTOR PERFORMANCE ASSESSMENT REPORTING SYSTEM (CPARS) REQUIREMENTS (a) The contractor, in performing this contract, will be subject to a past performance assessment in accordance with FAR 42.15 and the Contractor Performance Assessment Reporting System (CPARS) training materials can be found at http://www.cpars.csd.disa.mil/allapps/cpartrng/documents/CPARS%20Presentation.pdf. All information contained in the assessment may be used by the Government, within the limitations of FAR 42.15, for future source selections in accordance with FAR 15.304 where past performance is an evaluation factor. Assessments will be conducted as prescribed by CPARS guidance. (b) The contractor will be provided with a copy of the assessment. The contractor will have 30 calendar-days to submit comments, additional information, or rebut statements if warranted or desired. The contractor must strictly control access to the assessment while in the Contractor's possession and must ensure that the assessment is never released to persons or entities outside of the contractor's control. After receipt of Contractor's comments or expiration of the 30 day comment period, whichever occurs first, and depending on the Contractor's response the Government will: (1) If no comments are received; close the CPAR by the Assessing Official Rep and Reviewing Official; (2) If the Contractor concurs with the assessment; accept/update and close the CPARS and forward comments to all reviewers; (3) If Contractor does not concur with the assessment, coordinate a final response with Reviewing Official, Assessing Official Representative, and Assessing Official;. (4) Enter the final government response and close CPARS. (c) After completion of one of the appropriate actions, the Assessing Official will notify all individuals that the report is complete. The assessment is considered complete when signed by the Assessing or Reviewing Official. (d) The official responsible for the corporate operating unit being assessed can submit a written request to receive a copy of the completed CPARS assessment. The assessment is not subject to the Disputes clause of the contract, nor is it subject to appeal beyond the review and comment procedures described above and in the CPARS Guide. (e) Refer to http://www.cpars.csd.disa.mil/ for details and additional information related to CPARS, CPARS user access (which includes obtaining a PKI certificate), how contract performance assessments are conducted, and how contractors participate. INSURANCE The Contractor shall, at its own expense, provide and maintain during the entire period of any resulting contract, including any extensions granted by contract modification, at least the kinds and minimum amounts of insurance noted here: Workers' Compensation and Employer's Liability - $100,000 (except in states with exclusive or monopolistic funds that do not permit workers' compensation to be written by private carriers.) General Liability- $500,000 per occurrence Automobile Liability - Property damage $20,000 per occurrence, Bodily injury $200,000 per person and $500,000 per occurrence. When requested by the Contracting Officer, the Contractor shall provide a copy of all subcontractors' proofs of required insurance no later than five (5) days before each subcontractor commences work on the Government installation. SCHEDULE OF SUPPLIES/SERVICES SEE ATTACHMENT 1 or 2 - SCHEDULE OF SUPPLIES/SERVICES (BASE YEAR PRICING, OPTION YEAR 1 PRICING, AND OPTION YEAR 2 PRICING) Additional applicable clauses incorporated by reference: FAR 52.212-4 Contract Terms and Conditions-Commercial Items (May, 2015), Addenda to 52.212-4; the following clauses apply: FAR 52.204-04 PRINTED OR COPIED DOUBLE-SIDED ON POSTCONSUMER FIBER CONTENT PAPER (MAY 2011) FAR 52.204-09 PERSONAL IDENTITY VERIFICATION OF CONTRACTOR PERSONNEL (JAN 2011) FAR 52.204-13 SYSTEM FOR AWARD MANAGEMENT MAINTENANCE (JUL 2013) FAR 52.215-08 ORDER OF PRECEDENCE - UNIFORM CONTRACT FORMAT (OCT 1997) FAR 52.215-21 REQUIREMENTS FOR CERTIFIED COST OR PRICING DATA AND DATA OTHER THAN CERTIFIED COST OR PRICING DATA - MODIFICATIONS (OCT 2010) FAR 52.215-23 LIMITATIONS ON PASS -THROUGH CHARGES (OCT 2009) FAR 52.232-25 PROMPT PAYMENT (JUL 2013) FAR 52.233-01 DISPUTES (MAY 2014) FAR 52.233-03 PROTEST AFTER AWARD (AUG 1996) FAR 52.233-04 APPLICABLE LAW FOR BREACH OF CONTRACT CLAIM (OCT 2004) FAR 52.242-15 STOP-WORK ORDER (AUG 1989) FAR 52.242-17 GOVERNMENT DELAY OF WORK (APR 1984) FAR 52.244-06 SUBCONTRACTS FOR COMMERCIAL ITEMS (JUL 2014) FAR 52.247-34 F.O.B. DESTINATION (NOV 1991) DFARS 252.201-7000 CONTRACTING OFFICER'S REPRESENTATIVE (DEC 1991) DFARS 252.203-7002 REQUIREMENT TO INFORM EMPLOYEES OF WHISTLEBLOWER RIGHTS (SEP 2013) DFARS 252.204-7000 DISCLOSURE OF INFORMATION (AUG 2013) DFARS 252.204-7003 CONTROL OF GOVERNMENT PERSONNEL WORK PRODUCT (APR 1992) DFARS 252.204-7004 ALTERNATE A, SYSTEM FOR AWRD MANAGEMENT (FEB 2014) DFARS 252.209-7004 SUBCONTRACTING WITH FIRMS THAT ARE OWNED OR CONTROLLED BY THE GOVERNMENT OF A TERRORIST COUNTRY (MAR 2014) DFARS252.243-7001 PRICING OF CONTRACT MODIFICATIONS (DEC 1991) DFARS 252.246-7000 MATERIAL INSPECTION AND RECEIVING REPORT (MAR 2008) DLAD 52.212-9000 CHANGES - MILITARY READINESS (NOV 2011) CLAUSES ADDED TO PART 12 BY ADDENDUM DLAD 52.204-9000 CONTRACTOR PERSONNEL SECURITY REQUIREMENTS (AUG 2014) DLAD 52.211-9033 PACKAGING AND MARKING REQUIREMENTS (APR 2008) DLAD 52.215-9016 NOTICE TO CONTRACTORS AND DEFENSE FINANCE ACCOUNTING SERVICES (DFAS) (NOV 2011) DLAD 52.232-9010 ACCERLERATED PAYMENTS TO SMALL BUSINESS (APR 2014) Clauses incorporated by full text: FAR 52.212-4 CONTRACT TERMS AND CONDITIONS - COMMERCIAL ITEMS (SEP 2013) ALTERNATE 1 (AUG 2012) (a) Inspection/Acceptance. (1) The Government has the right to inspect and test all materials furnished and services performed under this contract, to the extent practicable at all places and times, including the period of performance, and in any event before acceptance. The Government may also inspect the plant or plants of the Contractor or any subcontractor engaged in contract performance. The Government will perform inspections and tests in a manner that will not unduly delay the work. (2) If the Government performs inspection or tests on the premises of the Contractor or a subcontractor, the Contractor shall furnish and shall require subcontractors to furnish all reasonable facilities and assistance for the safe and convenient performance of these duties. (3) Unless otherwise specified in the contract, the Government will accept or reject services and materials at the place of delivery as promptly as practicable after delivery, and they will be presumed accepted 60 days after the date of delivery, unless accepted earlier. (4) At any time during contract performance, but not later than 6 months (or such other time as may be specified in the contract) after acceptance of the services or materials last delivered under this contract, the Government may require the Contractor to replace or correct services or materials that at time of delivery failed to meet contract requirements. Except as otherwise specified in paragraph (a)(6) of this clause, the cost of replacement or correction shall be determined under paragraph (i) of this clause, but the "hourly rate" for labor hours incurred in the replacement or correction shall be reduced to exclude that portion of the rate attributable to profit. Unless otherwise specified below, the portion of the "hourly rate" attributable to profit shall be 10 percent. The Contractor shall not tender for acceptance materials and services required to be replaced or corrected without disclosing the former requirement for replacement or correction, and, when required, shall disclose the corrective action taken. [Insert portion of labor rate attributable to profit.] (5) (i) If the Contractor fails to proceed with reasonable promptness to perform required replacement or correction, and if the replacement or correction can be performed within the ceiling price (or the ceiling price as increased by the Government), the Government may- (A) By contract or otherwise, perform the replacement or correction, charge to the Contractor any increased cost, or deduct such increased cost from any amounts paid or due under this contract; or (B) Terminate this contract for cause. (ii) Failure to agree to the amount of increased cost to be charged to the Contractor shall be a dispute under the Disputes clause of the contract. (6) Notwithstanding paragraphs (a)(4) and (5) above, the Government may at any time require the Contractor to remedy by correction or replacement, without cost to the Government, any failure by the Contractor to comply with the requirements of this contract, if the failure is due to-- (i) Fraud, lack of good faith, or willful misconduct on the part of the Contractor's managerial personnel; or (ii) The conduct of one or more of the Contractor's employees selected or retained by the Contractor after any of the Contractor's managerial personnel has reasonable grounds to believe that the employee is habitually careless or unqualified. (7) This clause applies in the same manner and to the same extent to corrected or replacement materials or services as to materials and services originally delivered under this contract. (8) The Contractor has no obligation or liability under this contract to correct or replace materials and services that at time of delivery do not meet contract requirements, except as provided in this clause or as may be otherwise specified in the contract. (9) Unless otherwise specified in the contract, the Contractor's obligation to correct or replace Government-furnished property shall be governed by the clause pertaining to Government property. (b) Assignment. The Contractor or its assignee may assign its rights to receive payment due as a result of performance of this contract to a bank, trust company, or other financing institution, including any Federal lending agency in accordance with the Assignment of Claims Act (31 U.S.C.3727). However, when a third party makes payment (e.g., use of the Governmentwide commercial purchase card), the Contractor may not assign its rights to receive payment under this contract. (c) Changes. Changes in the terms and conditions of this contract may be made only by written agreement of the parties. (d) Disputes. This contract is subject to the Contract Disputes Act of 1978, as amended (41 U.S.C. 601-613). Failure of the parties to this contract to reach agreement on any request for equitable adjustment, claim, appeal or action arising under or relating to this contract shall be a dispute to be resolved in accordance with the clause at FAR 52.233-1, Disputes, which is incorporated herein by reference. The Contractor shall proceed diligently with performance of this contract, pending final resolution of any dispute arising under the contract. (e) Definitions. (1) The clause at FAR 52.202-1, Definitions, is incorporated herein by reference. As used in this clause- (i) Direct materials means those materials that enter directly into the end product, or that are used or consumed directly in connection with the furnishing of the end product or service. (ii) Hourly rate means the rate(s) prescribed in the contract for payment for labor that meets the labor category qualifications of a labor category specified in the contract that are- (A) Performed by the contractor; (B) Performed by the subcontractors; or (C) Transferred between divisions, subsidiaries, or affiliates of the contractor under a common control. (iii) Materials means- (A) Direct materials, including supplies transferred between divisions, subsidiaries, or affiliates of the contractor under a common control; (B) Subcontracts for supplies and incidental services for which there is not a labor category specified in the contract; (C) Other direct costs (e.g., incidental services for which there is not a labor category specified in the contract, travel, computer usage charges, etc.); (D) The following subcontracts for services which are specifically excluded from the hourly rate: [Insert any subcontracts for services to be excluded from the hourly rates prescribed in the schedule.]; and (E) Indirect costs specifically provided for in this clause. (iv) Subcontract means any contract, as defined in FAR Subpart 2.1, entered into with a subcontractor to furnish supplies or services for performance of the prime contract or a subcontract including transfers between divisions, subsidiaries, or affiliates of a contractor or subcontractor. It includes, but is not limited to, purchase orders, and changes and modifications to purchase orders. (f) Excusable delays. The Contractor shall be liable for default unless nonperformance is caused by an occurrence beyond the reasonable control of the Contractor and without its fault or negligence such as, acts of God or the public enemy, acts of the Government in either its sovereign or contractual capacity, fires, floods, epidemics, quarantine restrictions, strikes, unusually severe weather, and delays of common carriers. The Contractor shall notify the Contracting Officer in writing as soon as it is reasonably possible after the commencement of any excusable delay, setting forth the full particulars in connection therewith, shall remedy such occurrence with all reasonable dispatch, and shall promptly give written notice to the Contracting Officer of the cessation of such occurrence. (g) Invoice. (1) The Contractor shall submit an original invoice and three copies (or electronic invoice, if authorized) to the address designated in the contract to receive invoices. An invoice must include -- (i) Name and address of the Contractor; (ii) Invoice date and number; (iii) Contract number, contract line item number and, if applicable, the order number; (iv) Description, quantity, unit of measure, unit price and extended price of the items delivered; (v) Shipping number and date of shipment, including the bill of lading number and weight of shipment if shipped on Government bill of lading; (vi) Terms of any discount for prompt payment offered; (vii) Name and address of official to whom payment is to be sent; (viii) Name, title, and phone number of person to notify in event of defective invoice; and (ix) Taxpayer Identification Number (TIN). The Contractor shall include its TIN on the invoice only if required elsewhere in this contract. (x) Electronic funds transfer (EFT) banking information. (A) The Contractor shall include EFT banking information on the invoice only if required elsewhere in this contract. (B) If EFT banking information is not required to be on the invoice, in order for the invoice to be a proper invoice, the Contractor shall have submitted correct EFT banking information in accordance with the applicable solicitation provision, contract clause (e.g., 52.232-33, Payment by Electronic Funds Transfer- System for Award Management, or 52.232-34, Payment by Electronic Funds Transfer-Other Than System for Award Management), or applicable agency procedures. (C) EFT banking information is not required if the Government waived the requirement to pay by EFT. (2) Invoices will be handled in accordance with the Prompt Payment Act (31 U.S.C. 3903) and Office of Management and Budget (OMB) prompt payment regulations at 5 CFR part 1315. (h) Patent indemnity. The Contractor shall indemnify the Government and its officers, employees and agents against liability, including costs, for actual or alleged direct or contributory infringement of, or inducement to infringe, any United States or foreign patent, trademark or copyright, arising out of the performance of this contract, provided the Contractor is reasonably notified of such claims and proceedings. (i) Payments. (1) Work performed. The Government will pay the Contractor as follows upon the submission of commercial invoices approved by the Contracting Officer: (i) Hourly rate. (A) The amounts shall be computed by multiplying the appropriate hourly rates prescribed in the contract by the number of direct labor hours performed. Fractional parts of an hour shall be payable on a prorated basis. (B) The rates shall be paid for all labor performed on the contract that meets the labor qualifications specified in the contract. Labor hours incurred to perform tasks for which labor qualifications were specified in the contract will not be paid to the extent the work is performed by individuals that do not meet the qualifications specified in the contract, unless specifically authorized by the Contracting Officer. (C) Invoices may be submitted once each month (or at more frequent intervals, if approved by the Contracting Officer) to the Contracting Officer or the authorized representative. (D) When requested by the Contracting Officer or the authorized representative, the Contractor shall substantiate invoices (including any subcontractor hours reimbursed at the hourly rate in the schedule) by evidence of actual payment, individual daily job timecards, records that verify the employees meet the qualifications for the labor categories specified in the contract, or other substantiation specified in the contract. (E) Unless the Schedule prescribes otherwise, the hourly rates in the Schedule shall not be varied by virtue of the Contractor having performed work on an overtime basis. (1) If no overtime rates are provided in the Schedule and the Contracting Officer approves overtime work in advance, overtime rates shall be negotiated. (2) Failure to agree upon these overtime rates shall be treated as a dispute under the Disputes clause of this contract. (3) If the Schedule provided rates for overtime, the premium portion of those rates will be reimbursable only to the extent the overtime is approved by the Contracting Officer. (ii) Materials. (A) If the Contractor furnishes materials that meet the definition of a commercial item at FAR 2.101, the price to be paid for such materials shall not exceed the Contractor's established catalog or market price, adjusted to reflect the-- (1) Quantities being acquired; and (2) Any modifications necessary becaus...