Identification marking of individual parts within the systems, equipments, assemblies, sub-assemblies, components, groups, sets or kits and of spare and repair parts shall be done in accordance with applicable specifications and drawings. To the extent identification markings of such parts is not specified in applicable specifications or drawings, such marking shall be accomplished in accordance with the following:

Parts shall be marked in accordance with generally accepted commercial practice.

In cases where parts are so small as not to permit identification marking as provided above, such parts shall be appropriately coded with metal tags or other attached markings so as to permit ready identification.

In addition:

1. Electronic parts – that is, all repairables in electrical equipment and electrical parts when used in equipment that are not electrical in nature (e.g., electrical controls) – shall be identified and marked using any process that will not adversely affect the function of the finished part. Any paper, plastics or metal tags used shall have all burrs and rough edges removed.
2. Markings shall remain legible following completions of all inspections specified in the acquisition document for the normal life expectancy of the part.
3. Marking materials shall be non-fading.
4. (Paper labels for attachment to parts shall not be used.
5. Any other markings that may be applied to the part shall not interfere with, obscure, or confuse those specified herein.
6. Whenever practicable, markings shall be located in such a manner so as to allow its being visible during normal operational use.
7. Marking materials creating hazardous conditions shall not be used.
   

Full Marking - All markings listed below shall be marked on the repairable part. Where size, surface condition, or other design consideration will not allow full marking on the part, markings will be made in the order shown below:

1. Sensitive Electronic Device (SED) or ESD Electrostatic Sensitive Device Symbols
   
2. Identifying Number;
   
3. Source Code;
   
4. Date Inspection Code;
   
5. Lot Symbol;
   
6. Characteristics and Ratings; and
   
   Definitions for (a) through (i) above can be found in MIL-STD-1285B.

Preferred Markings - The following preferred marking methods are provided as a guide and are not mandatory.

Warranted Items - Warranted items shall be marked in a conspicuous location to give notice that the items are subject to a warranty. The marking shall contain, as a minimum, the statement "WARRANTED ITEM" and the period or conditions of the warranty.

1. All items shall be preserved and packed using MIL-P-116 for guidance and/or optimum protection during shipment and for in-plant handling and storage. Packing shall be of non-flammable material. If shipment is from outside the U.S., pallets must be pest free, and preferably use heat (not chemically) treated bark free wood. All shipments forwarded on one day via one route shall be consolidated and consecutively numbered (i.e., 1 of 5, 2 of 5, etc.). Preservation shall be suitable for one year storage prior to installation.
2. In addition to the requirements of Article 1.11.3 below, a master packing list shall be prepared where more than one shipment, shipping container or palletized unit load comprise the items being shipped. The Master Packing List shall be attached to the number one container and so identified.

If Seller ships internationally via ocean in sealed LCL (Less-Than Container Load), FCL (Full Container Load), or break-bulk shipments arriving at U.S. seaports from non-U.S. countries, then Seller must provide Buyer's Logistics department with U.S. Customs 10+2 importation data using the Importer Security Filing-Form 10 in accordance with the instructions available on the internet at: www.cbp.gov/xp/cgov/trade/cargo_security/carriers/security_filing/. The 10+2 information must be sent to Buyer's Logistics department within three to four (3-4) days prior to vessel departure from port of origin. In addition, updates and corrections must also be provided to the Buyer's Logistics Department at least three (3) business days prior to the vessel arriving in a U.S. destination port. Expediting costs to free-up shipments with late or missing 10+2 documentation could be charged to Seller at Buyers option.

All shipments shall be clearly and indelibly marked with the Huntington Ingalls Shipbuilding Piece Mark Number on the equipment/material/commodities shipped. Where parts are so small as to not permit individual marking, they shall be separately packaged and the package marked with the Huntington Ingalls Shipbuilding Piece Mark Number and the quantity contained therein. Each piece of steel plate, regardless of size or thickness, shall be die stenciled with the heat number and grade.

Packing lists shall be completed with the following information as an absolute minimum:

1. Huntington Ingalls Shipbuilding Job Number.
   
2. Huntington Ingalls Shipbuilding Purchase Order Number.
   
3. Huntington Ingalls Shipbuilding Purchase Request Number (for each item on the Packing List, when this number is provided on the Purchase Order).
   
4. Quantity, Description, Purchase Order Line Number and Huntington Ingalls Shipbuilding Piece Mark Number for each item on the Packing List. (Seller Part Number, when used, shall be in addition to this information.)
   
5. Weight and quantity (i.e., L.E., S.E., Number of Pieces, etc.) for each item on the Packing List that will be invoiced by weight/unit price/cost.
   
6. National stock number if applicable.

Items not readily marked, and all equipment items and parts must be tagged with aluminum, stainless steel or paper tags containing all identification requirements specified by the Purchase Order to permit correlation with the Packing List.

One copy of the Master Packing List (if applicable), Packing List and the original copy of the Bill of Lading shall be mailed to Huntington Ingalls Shipbuilding at the time the shipment is delivered to the carrier. An itemized packing list must also accompany each shipment. Shipments not containing adequate identification and required packing lists will be considered incomplete and will be subject to return to sender, at its expense, for completion.

Valves shall be tagged with an aluminum or stainless steel tag displaying with 3/16 inch minimum letters the Huntington Ingalls Shipbuilding Piece Mark, Purchase Order and Job Order numbers. This tag is in addition to, and is not a substitute for the marking requirements invoked elsewhere in this document.

One reproducible copy, or five blueprint copies, of each component or equipment drawing is required for the initial submittal of each Job Order. Subsequent submittals shall be in the form of a letter stating job, drawing, Piece Mark and Purchase Order numbers and that a drawing was submitted on the initial submittal. Each drawing shall be clearly marked with the applicable Huntington Ingalls Shipbuilding Piece Mark, Job and Purchase Order numbers. Drawings shall be submitted to NASSCO.

Classified data, if applicable, shall be prepared for delivery in accordance with Department of Defense Industrial Security Manual for Safeguarding Classified Information, DOD 5220.22M.

The preservation and packaging of Spare Parts and Special Tools shall comply with the requirements of the Specifications.

In order to insure that protection of equipment is provided from the time of its arrival in the shipyard until a protection requirement no longer exists, the Seller shall provide the following protection, appropriate to the type of equipment being supplied, as defined below. This requirement is in addition to those stated elsewhere in this document.

Seller shall furnish as part of his loose item scope of supply a quantity equal to 50% (minimum of one) of all miscellaneous knobs, levers, covers and other similar items that are readily susceptible to damage, abuse or vandalism during the course of the ship building program.

All Contract Products furnished by Seller pursuant to this Order, or any part thereof, even though validated for manufacture or installation, shall be guaranteed by Seller to Buyer and/or the Government, as their interests may appear, to be free of Defects during required tests and for the Guarantee Period. The term "Guarantee Period" refers to the period that will expire concurrently with that of the Prime Contract beginning at the time of preliminary acceptance and ending twelve months after the preliminary acceptance of each respective ship by the Government, unless extended as hereinafter provided in Article 2.8.4.

For the purposes of this Order, the term "Defect" shall mean; (i) any weakness, any failure, any breaking down, any deficiency, any deterioration in any Contract Products, or in workmanship, engineering, equipment, machinery or materials incorporated therein or to be delivered therewith; or (ii) any failure of any Contract Product, or of any workmanship, engineering, equipment, machinery or materials incorporated therein or to be delivered therewith, to satisfy any of the requirements of this Order or the drawings or Specifications and the intent thereof. Seller's obligations hereunder shall extend and apply to all workmanship and to each and every item of machinery, material, or equipment which is incorporated in this Order, whether furnished or fabricated by Seller or its subcontractor or some other vendor, manufacturer, or supplier to Seller.

Seller shall not be responsible for correcting any Defect to the extent that the Defect resulted from specific written direction of Buyer later found to result in a Defect (but only if the Seller gave Buyer timely written notice that such specific direction was technically improper), nor to the extent that it is due to ordinary wear and tear, nor to the extent it is increased by the negligent or other improper act or failure to act of Buyer or the Government. Seller shall not be liable for any defects or deficiencies in any equipment supplied by the Government, except for installation in accordance with Plans and Specifications.

Notwithstanding any inspection or failure to reject by Buyer, if any time within the Guarantee Period there shall appear, exist, or be discovered any Defect, such Defect shall be made good pursuant to 52.246-6 Inspection of Services – Time and material and Labor-Hour. The Guarantee Period shall be extended for any period in which a vessel is unavailable for unrestricted service. In addition to the rights otherwise provided for in this Order, Seller warrants that Defects discovered during the period of the Guaranty Period and any extension thereof that have been corrected by Seller will be free from further Defects in material and workmanship and will conform with the specifications and other requirements of the contract for a period of twelve months following the completion of such correction or replacement. In the event of the breach of this guarantee, Buyer shall be entitled to re-correction of the Defect by Seller or at Seller's expense. Nothing herein shall relieve Seller of its liability for latent Defects, fraud or such gross mistakes amounting to fraud, regardless of when such Defects are discovered.

Any work required to be performed pursuant to the provisions of this Article shall be carried out, if practicable and at the Government's option, at Buyer's facilities. With the concurrence of the Government, Seller may have such work performed by its subcontractor, another shipyard or ship repair facility at any port satisfactory to the Government.

Buyer shall notify Seller, in writing, of any Defect and damage, if any, to machinery or equipment for which Seller is liable pursuant to this Article within 45 days after its discovery, setting out in such notification the specific Defect to the extent discovered.

Final Contract Trials of each of the ships shall be conducted by the Government at or near the expiration of the Guarantee Period and Seller shall be given written notice thereof at least ten days prior to the trial. Seller, at its expense, and subject to approval of the Government, shall be entitled to have representatives present during such trial.

Except as otherwise defined, the incorporated terms "Contractor," "contractor" or "offeror" shall mean the Seller of this Order unless in such context the term can only refer to the Prime Contractor or Buyer.

Instructions or requirements for documentation, certification or other writing reasonably applicable to the Seller of this Order, shall be submitted by Seller to the Prime Contractor or Buyer, unless otherwise required by federal law or express provisions of this Order.

Except as otherwise defined, the incorporated term "Contract" or "contract" shall mean this Order between Seller and Buyer.

FEDERAL ACQUISITION REGULATION (48 CFR CHAPTER 1) CLAUSES

DEFENSE FAR SUPPLEMENT (48 CFR CHAPTER 2) CLAUSES

When required by Naval Sea Systems Command regulation 5252.227-9113 (AUG 1997), Seller shall participate in the appropriate interchange of the Government-Industry Data Exchange program (GIDEP) in accordance with NAVSEA S0300-BU-GYD-010 dated November 1994. Data entered is retained by the program and provided to qualified participants. Compliance with this requirement shall not relieve Seller from complying with any other requirement of the contract.

GIDEP materials, software and information are available without charge from:

GIDEP Operations Center
P.O. Box 8000
Corona, CA 91718-8000
Phone: (909)273-4677
Fax: (909)273-5200
Internet: http://www.gidep.corona.navy.mil

This clause applies whenever the contract specifications, by reference to a Military Specification or otherwise, specify repair parts or stock components (hereinafter called "repair parts") for a ship component or item of equipment.

With respect to ship components or equipments manufactured other than in the United States and Canada, Seller agrees that, in addition to any other data required by this contract, it will furnish under this contract sufficient data so that the repair parts can be reproduced in the United States or Canada unless the suppliers of the ship components or equipments shall have made arrangements satisfactory to Seller and approved by Buyer and Buyer's Contracting Officer for the manufacturing of repair parts in the United States or Canada. For the purpose of this clause, "sufficient data" shall mean detail drawings and other technical information sufficiently extensive in detail to show design, construction, dimensions, and operation or function, manufacturing methods or processes, treatment or chemical composition of materials, plant layout and tooling. All data shall be in the English language and according to the United States system of weights and measures, and drawings for components, assemblies, subassemblies and parts protected by U.S. patents shall contain a prominent notation to that effect fully identifying the patent or patents involved, and bearing the number of this contract.

In order to satisfy the requirements of paragraph (b), above, unless the supplier of the ship components or equipments shall have made arrangements, satisfactory to Buyer and approved by the Contracting Officer, for the manufacture of such repair parts in the United States or Canada, Seller shall include in all subcontracts for the purchase of ship components or equipments from foreign sources a clause, acceptable to the Contracting Officer, granting to the United States Government for a period of seven years, "Government Purpose Rights" (as defined in paragraph (a)(12) of the clause of this contract entitled "RIGHTS IN TECHNICAL DATA – NONCOMMERCIAL ITEMS" (DFARS 252.227-70l3) in all technical data necessary to manufacture spare and repair parts for such components or equipments.

All supplies (which term throughout this Clause includes without limitation raw materials, components, intermediate assemblies, and end products) shall be subject to inspection and test by the Government/Buyer, to the extent practicable at all times and places including the period of manufacture or construction, and in any event prior to final acceptance of vessels.

Supplies rejected prior to preliminary acceptance as not conforming to this Contract and any Contractor responsible defects discovered during the guaranty period shall, at the election of the Buyer be replaced or corrected either by the Buyer or by the Contractor. The Buyer will, whenever practicable, afford the Contractor an opportunity to examine the defective supplies before they are replaced or corrected. Supplies or lots of supplies which have been rejected or required to be corrected shall be removed, if permitted or required by the Buyer, or corrected in place by and at the expense of the Contractor promptly after notice, and shall not thereafter be tendered for acceptance unless the former rejection or requirement of correction is disclosed. All replacements or corrections made by the Contractor shall be accomplished at no increase in the total final price. If the Contractor fails either promptly to remove such supplies or lots of supplies which are required to be removed, or promptly to replace or correct such supplies or lots of supplies, the Buyer either (i) may by contract or otherwise replace or correct such supplies, and equitably reduce the price of this Contract; or (ii) may terminate this Contract for default as provided in the clause of this Contract entitled "Default." Unless the Contractor corrects or replaces such supplies, within the required delivery schedule, the Buyer may require the delivery of such supplies, and equitably reduce any price of this Contract. Failure to agree to such equitable reduction shall be a dispute concerning a question of fact within the meaning of the clause of this Contract entitled "Disputes."

The cost of any replacement or correction for which the Contractor is responsible shall be borne by the Contractor.

If any inspection or test is made by the Government/Buyer on the premises of the Contractor or a subcontractor, the Contractor without additional charge shall provide all reasonable facilities and assistance for the safety and convenience of the Government/Buyer inspectors in the performance of their duties. If the Government/Buyer inspection or test is made at a point other than the premises of the Contractor or a subcontractor, it shall be at the expense of the Government/Buyer except as otherwise provided in the contract; provided that in case of rejection, the Government/Buyer shall not be liable for any reduction in value of samples used in connection with such inspection or test. All inspections and tests by the Government/Buyer shall be performed in such a manner as not to unduly delay the work. The Government/Buyer reserves the right to charge to the Contractor any additional cost of Government/Buyer inspection and test when supplies are not ready at the time such inspection and test is required by the contract or when reinspection or retest is necessitated by prior rejection. Failure to inspect and accept or reject supplies shall neither relieve the Contractor from responsibility for such supplies that are not in accordance with the contract requirements nor impose liability on the Government/Buyer therefor.

The inspection and test by the Government/Buyer of any supplies or lots thereof does not relieve the Contractor from any responsibility regarding defects or other failures to meet the contract requirements.

Records of all inspection work by the Contractor shall be kept complete and available to the Government/Buyer during the performance of this Contract and for such longer period as may be specified elsewhere in this Contract.

Any and all partial payments made hereunder on account of the vessel and the materials and equipment therefor shall be secured, when made, by a lien in favor of the Government and/or Buyer upon such material and equipment on account of all payments so made, except to the extent that the Government or Buyer, by virtue of any other provision of this contract, or otherwise, shall have valid title to such material and equipment as against other creditors of Seller. If such property is not identified by marking or segregating, the Government/Buyer shall be deemed to have a lien upon a proportionate part of any mass of property with which such property is commingled. Any lien provided for by virtue of this clause is paramount to all other liens and is effective immediately upon the first payment, without filing, notice, or other action under the provisions of l0 U.S.C. Sec. 2307(f). Upon completion and delivery of the vessel, said lien shall be discharged as to any materials and equipment which have not been included in the vessel and which are no longer required therefor.

Seller shall immediately discharge or cause to be discharged any lien or rights in rem of any kind, other than in favor of the Government/Buyer, which at any time exists or arises with respect to the machinery fittings, equipment or materials for the vessel. If any such lien or right in rem is not immediately discharged, the Government/Buyer may discharge or cause to be discharged said lien or right in rem at the expense of Seller.

Title to the vessel under construction or repair shall be vested in the Government and title to all materials and equipment acquired for each vessel shall vest in the Government upon delivery thereof to the plant of Buyer or other place of storage selected by Buyer, whichever of said events shall first occur; provided, that the Supervisor may, by written direction, require that title shall vest in the Government upon delivery of such materials and equipment to the carrier for transportation to the plant of Buyer or other place of storage selected by Buyer. The amount of any freight charge transportation, taxes or other costs which would have been paid by Seller, either directly or as an element of any subcontract cost, and which Seller shall not be required to pay as a result of such earlier vesting of title and any use of Government bills of lading, shall be determined and treated as though resulting from a Change Order and the contract price reduced accordingly.

Upon completion of the contract, or at such earlier date as may be fixed by the Contracting Officer/Buyer, Seller shall submit, in a form acceptable to the Contracting Officer/Buyer, inventory schedules covering all items of property not consumed in the performance of this contract (including any resulting scrap) or not theretofore delivered to the Government/Buyer. Seller shall deliver or make such other disposal of such property as may be directed or authorized by the Contracting Officer/Buyer. The Contracting Officer/Buyer, in lieu of directing or authorizing delivery or disposal of such property, may authorize Seller to take title to all or any part of such property, except for materials and equipment which were furnished by the Government and except for models, mockups, plans and other items that Seller is expressly required to construct, prepare or furnish to the Government/Buyer (all of which shall remain the property of the Government/Buyer). In the event the Contracting Officer/Buyer authorizes Seller to take title to all or any part of such property, Seller shall credit the cost incurred in the performance of this contract by an amount equal to the fair market value of such property. In the event the Contracting Officer/Buyer directs or authorizes the deliver or disposal of such property, any costs incurred by Seller in delivering or disposing of such property shall be included in the total price.