Case 1:15-cv-01307-VJW Document 10 Filed 03/04/16 Page 1 of 4
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`IN THE UNITED STATES COURT OF FEDERAL CLAIMS
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`CELLCAST TECHNOLOGIES, LLC and
`ENVISIONIT LLC,
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`No. 15-1307
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`Judge Victor J. Wolski
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`)))))))))))
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`Plaintiff,
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`v.
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`THE UNITED STATES,
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`Defendant.
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`UNITED STATES' UNOPPOSED MOTION TO NOTICE THIRD PARTY
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`Pursuant to Rule 14(b) of the Rules of the United States Court of Federal Claims (RCFC),
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`defendant the United States (government) moves this Court to issue a notice to International
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`Business Machines Corporation (IBM), to appear, if it so desires, as a party and assert whatever
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`interest it may have in this action. Notice should be sent to:
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`International Business Machines Corporation (IBM)
`6710 Rockledge Drive
`Bethesda, Maryland 20817-1826
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`On March 4, 2016, counsel for the government conferred with counsel for plaintiffs to
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`determine whether plaintiffs would oppose the motion. Plaintiffs’ counsel indicated to counsel for
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`the government that plaintiffs will not oppose this motion.
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`Statement in Support of Motion
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`In this lawsuit, plaintiffs, CellCast Technologies, LLC (CellCast) and EnvisionIT, LLC
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`(EnvisionIT) are seeking compensation pursuant to 28 U.S.C. § 1498. The Complaint references
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`“the Integrated Public Alert Warning System (‘IPAWS’)” and alleges that “IPAWS utilizes the
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`inventions claimed in the Asserted Patents.” Complaint at ¶ 20. The Complaint specifically
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`identifies IPAWS as the system whose manufacture or use is allegedly covered by each asserted
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`patent. See Complaint at ¶¶ 50, 55, 60, 65, and 70.
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`Upon information and belief, aspects of the Integrated Public Alert Warning System were
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`developed in work performed by IBM under a multi-part contracting vehicle. More specifically,
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`upon information and belief, the Department of Homeland Security (DHS) awarded an umbrella
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`contract referred to as the EAGLE contract for Information Technology Support Services. See A1
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`-81 (Exhibit A) (copy of basic contract award terms for DHS’ EAGLE contract).1 Section C.1.1.
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`of the EAGLE contract provides in pertinent part that:
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`The primary goal of this acquisition is to establish a suite of indefinite-delivery
`indefinite-quantity contracts for IT support services that will enable DHS business
`and program units to accomplish their mission objectives.
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`A13 (Exhibit A at Section C.1.1). Upon information and belief, IBM was awarded an EAGLE
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`Contract from DHS, which was assigned EAGLE Contract No. HSHQDC-06-D-00019. On
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`further information and belief, Task Order No. HSFEHQ-08-J-2009 was issued to IBM under the
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`terms and conditions of EAGLE Contract No. HSHQDC-06-D-00019. Task Order No.
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`HSFEHQ-08-J-2009 was issued to IBM by the Federal Emergency Management Agency Office of
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`Acquisition Management. See A82-92 (Exhibit B) (copy of Order for Supplies or Services under
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`Task Order No. HSFEHQ-08-J-2009).2 In an amendment identified as amendment no. “P00072”
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`under Task Order No. HSFEHQ-08-J-2009, a new Work Order (WO) was incorporated entitled
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`“Integrated Public Alert & Warning System (IPAWS)” as WO No. 35. See A93-95 (Exhibit C)
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`(copy of Task Order No. HSFEHQ-08-J-2009, Amendment No. P00072). Upon information and
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`1 “A___” refers to the corresponding page number in the attached Appendix.
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` 2
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` The monetary terms of the price schedules in this document and in Exhibit C have been redacted
`pending the entry of a protective order in this matter.
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`Case 1:15-cv-01307-VJW Document 10 Filed 03/04/16 Page 3 of 4
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`belief, Work Order 35 under Task Order No. HSFEHQ-08-J-2009 includes a seven page document
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`listing a Statement of Objectives. See A96-A102 (Exhibit D) (copy of Work Order No. 35). A
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`number of Objectives are listed in Work Order 35, such as, for example, the following work relating
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`to IPAWS: “[l]ead CAP Alerting Tool solution engineering, system development, testing and
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`deployment efforts.” A99 (WO No. 35, page 4).
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`Upon information and belief, in Section I., DHS’ EAGLE Contract, including EAGLE
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`Contract No. HSHQDC-06-D-00019 incorporated by reference, among others, Federal Acquisition
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`Regulation (FAR) Clause 52.227-3 (APR 1984). See generally A58-61 (Section I.1 Clauses
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`Incorporated By Reference, Page 53-56 of 76); see also A60 (listing FAR Clause 52.227-3 (APR
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`1984)). This clause, in turn, provides in pertinent part as follows:
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`Patent Indemnity (a) The Contractor shall indemnify the Government and its
`officers, agents, and employees against liability, including costs, for infringement of
`any United States patent (except a patent issued upon an application that is now or
`may hereafter be withheld from issue pursuant to a Secrecy Order under 35 U.S.C.
`181) arising out of the manufacture or delivery of supplies, the performance of
`services, or the construction, alteration, modification, or repair of real property
`(hereinafter referred to as construction work) under this contract, or out of the use or
`disposal by or for the account of the Government of such supplies or construction
`work.
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`48 C.F.R. § 52.227-3 (Apr 1984). Accordingly, pursuant to the patent indemnity clause in
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`Contract No. HSHQDC-06-D-00019, IBM may have an interest in the subject matter of this suit
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`within the meaning of RCFC 14(b).
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`Conclusion
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` The issuance of the requested notices to the above-listed companies conforms to the
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`established practice of the United States Court of Federal Claims, as exemplified by Carrier Corp.
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`v. United States, 534 F.2d 250, 251-52 (Ct. Cl. 1976); Bowser, Inc. v. United States, 420 F.2d 1057,
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`1060 (Ct. Cl. 1970); and Rockwell Int’l Corp. v. United States, 31 Fed. Cl. 536, 539-40 (1994). See
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`also In re Uusi, LLC, No. 2013-155, 549 Fed. Appx. 964, 2013 WL 6136602 (Fed. Cir. 2013). For
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`the reasons stated above, the government respectfully requests that this motion be granted and the
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`requested notice be issued.
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`Of Counsel:
`WALTER W. BROWN
`Civil Division
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`U.S. Department of Justice
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`Respectfully submitted,
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`BENJAMIN C. MIZER
`Principal Deputy Assistant Attorney General
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`JOHN FARGO
`Director
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`s/ David M. Ruddy
`DAVID M. RUDDY
`Attorney
`Commercial Litigation Branch
`Civil Division
`U.S. Department of Justice
`Washington, DC 20530
`Telephone: (202) 353-0517
`Facsimile: (202) 307-0345
`E-Mail: david.ruddy@usdoj.gov
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`Attorneys for Defendant United States
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`March 4, 2016
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`Case 1:15-cv-01307-VJW Document 10-1 Filed 03/04/16 Page 1 of 102
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`U.S. Department of Homeland Security
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`EAGLE
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`Information Technology Support Services
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`Base: June 28, 2006 (Unrestricted)/September 26, 2006 (Set-Aside)
`Through Modification A00008 – Date: May 4, 2011
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`This document provides the basic contract award terms and conditions for all
`EAGLE prime contractors. Each EAGLE contract is identical except for the
`award number (PIIN), the contact information (address, POCs), and
`Attachment B-1 Labor Category/Labor Rate tables. Attachment B-1 for each
`contractor is provided separately. The periods of performance for the small
`business and unrestricted track awards are different due to the staggered
`award dates (See F.2).
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`
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`Department of Homeland Security
`Office of Procurement Operations
`Information Technology Acquisition Center
`Washington D.C.
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`Table of Contents
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`SECTION A – STANDARD FORM 26 ...................................................................................... 1
`SECTION B - SUPPLIES OR SERVICES AND PRICES/COSTS ......................................... 2
`B.1
`General ........................................................................................................................................ 2
`B.2
`Base and Option Periods.............................................................................................................. 2
`B.3
`Contract Pricing ........................................................................................................................... 2
`B.3.1 Time and Material Labor/Firm Fixed Price Rates ................................................................................. 2
`B.3.2 Work Outside the Continental United States (OCONUS) ..................................................................... 6
`B.3.3 Cost Reimbursement Pricing ................................................................................................................. 6
`B.3.4 Total Cost of Ownership Pricing ........................................................................................................... 6
`B.4
`Labor Rate Tables ........................................................................................................................ 6
`SECTION C – STATEMENT OF WORK ................................................................................. 8
`C.1
`General ........................................................................................................................................ 8
`C.1.1 Objective ................................................................................................................................................ 8
`C.1.2
`Scope ..................................................................................................................................................... 8
`C.1.3 Contract and Task Order Management .................................................................................................. 8
`C.2
`Functional Categories .................................................................................................................. 9
`C.2.1
`Functional Category 1 – Infrastructure Engineering Design, Development, Implementation, and
`Integration ............................................................................................................................................................ 9
`C.2.2
`Functional Category 2 – Operations and Maintenance .......................................................................... 9
`C.2.3
`Functional Category 3 – Independent Test, Validation, Verification, and Evaluation .......................... 9
`C.2.4
`Functional Category 4 – Software Development ................................................................................. 10
`C.2.5
`Functional Category 5 – Management Support Services ..................................................................... 10
`SECTION D - PACKAGING AND MARKING...................................................................... 11
`D.1
`Packing, Packaging, Marking and Storage of Equipment ......................................................... 11
`D.2 Markings .................................................................................................................................... 11
`D.3
`Equipment Removal .................................................................................................................. 11
`SECTION E - INSPECTION AND ACCEPTANCE .............................................................. 12
`E.1
`Clauses Incorporated by Reference ........................................................................................... 12
`E.2
`Inspection and Acceptance ........................................................................................................ 12
`E.3
`Scope of Inspection ................................................................................................................... 12
`E.4
`Basis of Acceptance................................................................................................................... 12
`E.5
`Review of Deliverables ............................................................................................................. 13
`E.6 Written Acceptance/Rejection by the Government ................................................................... 13
`SECTION F - DELIVERIES OR PERFORMANCE.............................................................. 14
`F.1
`Clauses Incorporated by Reference ........................................................................................... 14
`F.2
`Term of the Contract.................................................................................................................. 14
`F.3
`Task Orders Performance Period and Pricing ........................................................................... 14
`F.4
`Option To Extend The Term Of The Contract .......................................................................... 14
`F.5
`Delivery ..................................................................................................................................... 15
`F.6
`Place of Performance ................................................................................................................. 15
`F.7
`Notice to the Government of Delays ......................................................................................... 15
`F.8
`Deliverables ............................................................................................................................... 15
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`Contract Status Report ............................................................................................................... 16
`F.9
`F.10 Task Order Status Reports ......................................................................................................... 17
`F.11
`Subcontracting Plan Reports ..................................................................................................... 17
`F.11.1
`Individual Subcontracting Report (ISR) .............................................................................................. 17
`F.11.2 Summary Subcontract Report (SSR) ................................................................................................... 17
`F.12 Comprehensive Contracts Report .............................................................................................. 18
`SECTION G - CONTRACT ADMINISTRATION DATA .................................................... 19
`G.1
`Accounting and Appropriation Data .......................................................................................... 19
`G.2
`Points of Contact ....................................................................................................................... 19
`G.2.2 Task Order Contracting Officer (TO CO) ............................................................................................ 21
`G.2.3 Task Order Contracting Officer’s Technical Representative (TO COTR) .......................................... 21
`G.2.4 Contractor’s Program Manager............................................................................................................ 21
`G.3
`Ordering–By Designated Ordering Official .............................................................................. 21
`G.3.1 Direct Ordering .................................................................................................................................... 21
`G.3.2 Special Contract Administration Responsibilities ............................................................................... 22
`G.4
`Task Order (TO) Procedures ..................................................................................................... 22
`G.4.1 Fair Opportunity Process ..................................................................................................................... 23
`G.4.2 Fair Opportunity Exceptions. ............................................................................................................... 23
`G.4.3 Task Order Solicitation ........................................................................................................................ 24
`G.4.4 Task Order Process .............................................................................................................................. 26
`G.4.5 Unauthorized Work.............................................................................................................................. 29
`G.4.6 Task Funding Restrictions ................................................................................................................... 29
`G.4.7 Changes in Time-and-Materials (T&M) Task Orders.......................................................................... 29
`G.4.8 Debriefings .......................................................................................................................................... 29
`G.4.9 Task Order Protests .............................................................................................................................. 29
`G.4.10 Task/Delivery Order Contract Ombudsman ........................................................................................ 30
`G.5
`Ordering (Indefinite Delivery Type Contracts) ......................................................................... 30
`G.5.1 Ordering Procedures ............................................................................................................................ 30
`G.5.2 Modification of Orders ........................................................................................................................ 31
`G.5.3 Unilateral Orders ................................................................................................................................. 31
`G.6
`Preparation of Vouchers ............................................................................................................ 31
`G.6.1 General ................................................................................................................................................. 31
`G.6.2 Billing Instructions .............................................................................................................................. 32
`G.7
`Quick-Closeout Procedure ......................................................................................................... 32
`SECTION H – SPECIAL CONTRACTING REQUIREMENTS .......................................... 34
`H.1
`Authorized Users ....................................................................................................................... 34
`H.2 Minimum Dollar Guarantee and Maximum Contract Limitation .............................................. 34
`H.3
`Hardware and Software Acquisition .......................................................................................... 34
`H.4
`Purchasing System ..................................................................................................................... 35
`H.5
`Contractor Justification for Other Direct Costs (ODCs) ........................................................... 35
`H.5.1 Materials .............................................................................................................................................. 36
`H.6
`Selected Items of Costs.............................................................................................................. 36
`H.6.1 Travel Costs (Including Foreign Travel) ............................................................................................. 36
`H.6.2 Training ............................................................................................................................................... 36
`H.6.3 General Purpose Office Equipment (GPOE) and IT ............................................................................ 36
`H.7
`Leasing ...................................................................................................................................... 37
`H.8
`Government Property, Information, Workspace ....................................................................... 37
`H.8.1 Contractor Acquired Property. ............................................................................................................. 38
`H.8.2 Disposition of Government Property ................................................................................................... 38
`H.9
`Performance-Based Services Contracting (PBSC) .................................................................... 38
`H.10 Conversion to a Performance Based Task Order ....................................................................... 38
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`H.11 Past Performance Evaluation ..................................................................................................... 39
`H.12 Disclosure of “Official Use Only” Information Safeguards ...................................................... 39
`H.13 Disclosure of Information--Official Use Only .......................................................................... 40
`H.14 Standard of Conduct at Government Installations ..................................................................... 40
`H.15 Advertisements, Publicizing Awards and News Releases ......................................................... 40
`H.16 Contractor Web Page ................................................................................................................. 40
`H.17 Contractor’s Employees Identification ...................................................................................... 41
`H.18 Teaming Arrangements ............................................................................................................. 41
`H.19 Subcontracting ........................................................................................................................... 42
`H.20
`Incorporation of Subcontracting Plan ........................................................................................ 43
`H.21 Notification Requirements Under T&M and Cost Reimbursement Contracts .......................... 43
`H.22 Key Personnel ............................................................................................................................ 43
`H.23 Substitution of Key Personnel ................................................................................................... 44
`H.24
`Interrelationships of Contractors ............................................................................................... 44
`H.25 Observance of Legal Holidays and Excused Absence .............................................................. 45
`H.26
`Insurance .................................................................................................................................... 46
`H.27
`Information Technology Accessibility for Persons with Disabilities ........................................ 46
`H.28 Notice of Internet Posting of Awards ........................................................................................ 46
`H.29 On-Line Proposal and Ordering Capability ............................................................................... 47
`H.30 Post Award Conference ............................................................................................................. 47
`H.31 Meetings/Conferences ............................................................................................................... 47
`H.32 Earned Value Management ....................................................................................................... 47
`H.33 Organizational Conflict of Interest ............................................................................................ 49
`H.34 DHS Infrastructure and Enterprise Architecture Compliance ................................................... 50
`H.35 Security Review ......................................................................................................................... 51
`H.36
`Interconnection Security Agreements ....................................................................................... 51
`H.37 Access to Unclassified Facilities, Information Technology Resources, and Sensitive
`Information ............................................................................................................................................. 51
`SECTION I - CONTRACT CLAUSES .................................................................................... 53
`I.1
`Clauses Incorporated By Reference........................................................................................... 53
`I.2
`Security Requirements For Unclassified Information Technology Resources .......................... 58
` I.3 Prohibition on Contracts with Corporate Expatriates …………………………………………59
`I.4
`Limitation of Future Contracting ............................................................................................... 62
`I.5
`Notification Of Ownership Changes ......................................................................................... 62
`I.6
`Determination of Award Fee ..................................................................................................... 63
`I.7
`Performance Evaluation Plan .................................................................................................... 63
`I.8
`Distribution of Award Fee ......................................................................................................... 64
`I.9
`Small Business Subcontracting Program Reporting .................................................................. 64
`I.10 DHS Mentor-Protégé Program .................................................................................................. 64
`I.11 Notification of Employee Rights Concerning Payment of Union Dues or Fees ....................... 65
`I.12
`Performance-Based Payments ................................................................................................... 67
`I.13
`Contractor Employee Access ..................................................................................................... 72
`SECTION J – LIST OF ATTACHMENTS ............................................................................. 76
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`SECTION A – STANDARD FORM 26
`AWARD/CONTRACT
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`2. CONTRACT (Proc. Inst. Ident.) NO.
`SEE MASTER LIST
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`5. ISSUED BY
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`CODE
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`
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`1. THIS CONTRACT IS A RATED ORDER
`UNDER DPAS (15 CFR 350)
`3. EFFECTIVE DATE
`6/28/06 (LB)/9/26/06 (SB)
`6. ADMINISTERED BY (If other than Item 5)
`
`RATING
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`
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`PAGE OF PAGES
`1
`70
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`4. REQUISITION/PURCHASE REQUEST/PROJECT NO.
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`CODE
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`Department Of Homeland Security
`Office Of Procurement Operations
`Information Technology Acquisition Center
`245 Murray Drive, SW, Bldg 410
`Washington, DC 20526
`7. NAME AND ADDRESS IF CONTRACTOR (No., street, city, county, State, and ZIP Code)
`SEE MASTER LIST
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`See Item 5
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`CODE
`11. SHIP TO/MARK FOR
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`CODE
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`FAC LITY CODE
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`12. PAYMENT W LL BE MADE BY
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`8. DELIVERY
` FOB ORIGIN
`9. DISCOUNT PAYMENT
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`10. SUBMIT NVOICES
`(4 copies unless other-
`wise specified) TO THE
`ADDRESS SHOWN IN:
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` OTHER (See below)
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`CODE
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`ITEM
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`See G.6
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`As Specified On Individual Task Orders
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`As Specified On Individual Task Orders
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`13. AUTHORITY FOR US NG OTHER THAN FULL AND OPEN COMPETITION
`  10 USC 2304(c)( )
` 41 USC 253(c)( )
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`15A. ITEM NO.
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`15B. SUPPLIES/SERVICES
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`In accordance with C.1.2 Scope, the scope
`of this IDIQ contract is Functional Category
`(See Master List).
`
`This award incorporates only the proposed
`labor rates, travel and material markups, labor
`category information and subcontracting plan.
`It does not incorporate the remainder of the
`proposal.
`
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`14. ACCOUNTING AND APPROPRIATION DATA
`As Specified On Individual Delivery Orders
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`15C. QUANTITY
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`15D. UNIT
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`15E. UNIT PRICE
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`15F. AMOUNT
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`15G. TOTAL AMOUNT OF CONTRACT
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`$
`
`DESCRIPTION
`DESCRIPTION
`PART II - CONTRACT CLAUSES
`PART I - THE SCHEDULE
`1
`CONTRACT CLAUSES
`SOLICITATION/CONTRACT FORM
`2-6
`PART III - LIST OF DOCUMENTS, EXHIBITS AND OTHER ATTACH.
`SUPPLIES OR SERVICES AND PRICES/COSTS
`7-9
`LIST OF ATTACHMENTS
`DESCRIPTION/SPECS./WORK STATEMENT
`10
`PART IV - REPRESENTATIONS AND NSTRUCTIONS
`PACKAG NG AND MARKING
`11-12
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`REPRESENTATIONS, CERTIFICATIONS AND
`K
`NSPECTION AND ACCEPTANCE
`13-16
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`OTHER STATEMENTS OF OFFERORS
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`DELIVERIES OR PERFORMANCE
`17-28
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`NSTRS., CONDS., AND NOTICES TO OFFERS
`L
`CONTRACT ADMINISTRATION DATA
`29-48
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`EVALUATION FACTORS FOR AWARD
`M
`SPECIAL CONTRACT REQU REMENTS
`CONTRACTING OFFICER WILL COMPLETE ITEM 17 OR 18 AS APPLICABLE
`17.  CONTRACTOR’S NEGOTIATED AGREEMENT (Contractor is required to sign this document and
`18. AWARD (Contractor is not required to sign this document.) Your offer on Solicitation Number
`HSHQDC-05-R-00010, including the additions or changes made by you which additions or changes are set
`return 1 copies to issuing office.) Contractor agrees to furnish and deliver all items or perform all the
`forth in full above, is hereby accepted as to the items listed above and on any continuation sheets. This
`services set forth or otherwise identified above and on any continuation sheets for the consideration stated
`award consummates the contract which consists of the following documents: (a) the Government’s
`herein. The rights and obligations of the parties to this contract shall be subject to and governed by the
`solicitation and your offer, and (b) this award/contract. No further contractual document is necessary.
`following documents: (a) this award/contract, (b) the solicitation, if any, and © such provisions,
`representations, certifications, and specifications, as are attached or incorporated by reference herein.
`(Attachments are listed herein).
`19A. NAME AND TITLE OF SIGNER (Type or Print)
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`16. TABLE OF CONTENTS
`PAGE(S)
`SEC.
`(√)
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`X
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`PAGE(S)
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`49-69
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`70
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`N/A
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`N/A
`N/A
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`20A. NAME OF CONTRACTING OFFICER
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`19C. DATE SIGNED
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`WILLIAM J. THOREEN
`20C. DATE SIGNED
`20B. UNITED STATES OF AMERICA
`6/28/06 (LB)
`/s/
`9/26/06 (SB)
`(Signature of Contracting Officer)
`STANDARD FORM 26 (REV 12-2002)
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`
`
`Prescribed by GSA – FAR (48 CFR) 53.214(a)
`
`(√)
`
`SEC.
`
`X
`X
`X
`X
`X
`X
`X
`X
`
`A
`B
`C
`D
`E
`F
`G
`H
`
`
`
`19B. NAME OF CONTRACTOR
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`
`
`/s/
`(Signature of person authorized to sign)
`AUTHORIZED FOR LOCAL REPRODUCTION
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`Previous Edition Usable
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`Page 10 of 106
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`EnvisionIT Ex. 2003, IBM v. EnvisionIT, IPR2017-01247
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`Case 1:15-cv-01307-VJW Document 10-1 Filed 03/04/16 Page 7 of 102
`
`SECTION B - SUPPLIES OR SERVICES AND PRICES/COSTS
`B.1 General
`The Contractor shall provide, in accordance with issued Task Orders (TOs), all
`management, supervision, labor, facilities, and materials necessary to perform information
`technology support services on an Indefinite-Delivery-Indefinite-Quantity basis. Task Orders
`may be Cost Reimbursement, Time and Materials (T&M), and Firm Fixed Price (FFP) in
`accordance with Federal Acquisition Regulation (FAR) Part 16.5. Task Orders will be issued in
`accordance with the procedures set forth in Sections G and I.
`B.2 Base and Option Periods
`The term of this indefinite delivery indefinite quantity