Award/Contract No. W52P1J-04-C-0103

EX-10.8 11 d31010exv10w8.txt AWARD/CONTRACT NO. W52P1J-04-C-0103 EXHIBIT 10.8 REFERENCE NO. OF DOCUMENT BEING CONTINUED PAGE 2 OF 36 CONTINUATION SHEET PIIN/SIIN W52P1J-04-C-0103 MOD/AMD NAME OF OFFEROR OR CONTRACTOR: VALENTEC SYSTEMS INC. SECTION A - SUPPLEMENTAL INFORMATION For Local Clauses See: http://www.afsc.army.mil/ac/aais/ioc/clauses/index.htm

1. This contract incorporates one or more clauses and provisions by reference, with the same force and effect as if they were set forth in full text. Upon request the Contracting Officer will make their full text available. 2. The entire body of full text regulatory and command unique clauses and provisions will no longer be included in solicitations or contracts. These clauses and provisions have the same force and effect as if the entire full text was included in the solicitation/contract. Where text has been incorporated by reference three astericks are put in its place (***). 3. You can view or obtain a copy of the clauses and provisions on the internet at: www.osc.army.mil/ac/aais/ioc/clauses/index.htm. Click on command unique first to locate the clause. If it is not located under command unique click on regulatory to find. 4. All full text clauses have a 6 or 7 as the third digit of the clause number (i.e. AS7000). (End of clause) (AS7001) 1. This procurement is restricted to Small Business Firms only. 2. This solicitation is for the M585 White Star Cluster, NSN: 1310-00 ###-###-####. 3. Total quantity of this solicitation is 24,728 each. 4. The solicitation requests prices for with and with out First Article Testing on an F.O.B. Origin basis. 5. Offers should be priced on proposal lines. With and Without First Article. (Note: Disregard the pricing lines directly across from the Line Item). 6. A 100% evaluated option clause is included in Section I of this solicitation. 7. The lowest price technically acceptable source selection process will be used to evaluate this procurement. 8. The Government will make one award from this solicitation. 9. A Security Preaward Survey is required. ***END OF NARRATIVE A 001 *** 1. This contract solicitation contains a Critical Characteristics Clause, ES7500, found in section E. *** END OF NARRATIVE A 002 *** REFERENCE NO. OF DOCUMENT BEING CONTINUED PAGE 3 OF 36 CONTINUATION SHEET PIIN/SIIN W52P1J-04-C-0103 MOD/AMD NAME OF OFFEROR OR CONTRACTOR: VALENTEC SYSTEMS INC. 1.0 The purpose of this solicitation amendment is to add/delete clauses pertaining to small business, extend the delivery schedule for production with First Article, and the insertion of language in section L. 2.0 Changes to section K: Add Clause KF6004, 52.219-1 Alt 1 Add Clause KF6080, 52.219-21 Changes to section I: Add Clause IA0690, 252 ###-###-#### Add Clause IA0650, 252 ###-###-#### Add Clause IF0081, 52.232-16 Add Clause IF0082, 52.232-16 Alt 1 Changes to section B: The delivery schedule for production with First Article will be changed from 210 days and 240 days to 300 days and 330 days. Please reference section B for specific details. Changes to section L: The words "moisture content" will be added in Subfactor D. Please reference section L for specific details. 3.0 All other terms and conditions remain unchanged. *** END OF NARRATIVE A 003 *** 1.0 The purpose of this solicitation amendment changes the following sections: 2.0 SECTION M: Insert language into the narrative of section M. The words "moisture control" will be added to Subfactor D. Please refer to section M for specific details. 3.0 SECTION H: Add clause HS6075 4.0 SECTION C: On page 6 of the solicitation, under section titled "Engineering Exceptions", under #2: replace "ASTM 5153" with "ASTM G153" On page 7 of the solicitation, in the line "MIL-P-48420 - DWG 13007972 is to be used in lieu of.", change "MIL - P-48420" to "MIL-P-48240" **Please refer to the specific section for more details.** 5.0 The date and time set for receipt of proposals is changed to 3:00 PM (CST) 16 AUG 2004. 6.0 All other terms and conditions remain the same. *** END OF NARRATIVE A 004 *** The following GFM is furnished on this contract: ITEM: M2A1 METAL BOX NSN: 8140-00 ###-###-#### PART NO. : 7553296 PLEASE REFER TO ATTACHMENT 013 *** END OF NARRATIVE A 005 *** 1. The purpose of this amendment is to extend the solicitation to 23 August 2004 in order to resolve issues with the TDP. Resolutions for technical concerns will be forthcoming in an additional amendment estimated to be released on or about 13 August 2004. 2. In addition, VAAR (Vinyl Alcohol Acetate Resin) will be offered as GFM. Please refer to the updated attachment 013. REFERENCE NO. OF DOCUMENT BEING CONTINUED PAGE 4 OF 36 CONTINUATION SHEET PIIN/SIIN W52P1J-04-C-0103 MOD/AMD NAME OF OFFEROR OR CONTRACTOR: VALENTEC SYSTEMS INC. *** END OF NARRATIVE A 006 *** 1. This amendment is to clarify technical questions/discrepancies within the M585 White Star Cluster Technical Data Package, to extend the closing date and clause LS7003 entitled Hand-Delivered Bids, Quotes or Proposals (FAR 52.214-7). 2. Please reference section C, at C002, for details to the technical concerns. 3. The closing date is extended to 30 August 2004. 4. All other terms and conditions remain the same. *** END OF NARRATIVE A 007 *** 1. The purpose of this amendment is to add attachment 014, drawing ###-###-####, inadvertently left off amendment 0004. *** END OF NARRATIVE A 008 *** 1. The purpose of this amendment is to clarify in section C reference to a canceled spec and provide and alternative. Please refer to section C of this amendment for details. 2. All other terms and conditions for this solicitation remain the same. 3. The time for opening is unchanged and will remain the same, 3:00 PM, 30 AUG 2004. *** END OF NARRATIVE A 009 *** 1. This contract is awarded to Valentec Systems Inc. for 24,728 each M585 White Star Cluster Projectile, NSN: 1310 00 ###-###-####, P/N: 9207987. The awarded unit price is $28.37 for a total contract price of $701,533.36 on an F.O.B. Origin basis. First Article is required for this contract. 2. The awarded quantity represents 100% of the total requirements of solicitation DAAA09-03-R-0223. 3. The delivery schedule is in section "B" of this document. 4 . Solicitation DAAA09 - 03 - R - 0223 is hereby incorporated by reference. *** END OF NARRATIVE A 010 *** REFERENCE NO. OF DOCUMENT BEING CONTINUED PAGE 5 OF 36 CONTINUATION SHEET PIIN/SIIN W52P1J-04-C-0103 MOD/AMD NAME OF OFFEROR OR CONTRACTOR: VALENTEC SYSTEMS INC.

REFERENCE NO. OF DOCUMENT BEING CONTINUED PAGE 6 OF 36 CONTINUATION SHEET PIIN/SIIN W52P1J-04-C-0103 MOD/AMD NAME OF OFFEROR OR CONTRACTOR: VALENTEC SYSTEMS INC.

REFERENCE NO. OF DOCUMENT BEING CONTINUED PAGE 7 OF 36 CONTINUATION SHEET PIIN/SIIN W52P1J-04-C-0103 MOD/AMD NAME OF OFFEROR OR CONTRACTOR: VALENTEC SYSTEMS INC.

REFERENCE NO. OF DOCUMENT BEING CONTINUED PAGE 8 OF 36 CONTINUATION SHEET PIIN/SIIN W52P1J-04-C-0103 MOD/AMD NAME OF OFFEROR OR CONTRACTOR: VALENTEC SYSTEMS INC. SECTION C - DESCRIPTION/SPECIFICATIONS/WORK STATEMENT For Local Clauses See: http://www.af5c.army.mil/ac/aais/ioc/clauses/index.htm

In addition to the drawing(s) and/or specifications listed below, other documents which are part of this procurement and which apply to Preservation/Packaging/Packing and Inspection and Acceptance are contained elsewhere. Engineering Exceptions: The following drawing(s) and specifications are applicable to this procurement. Drawings and Specifications in accordance with enclosed Technical Data Package Listing - TDPL ###-###-####:19203 with revisions in effect as of 08/07/2003 (except as follows): 1. 9209205 REV AB, SHEET 02 ADD: " DISTRIBUTION STATEMENT A. APPROVED FOR PUBLIC RELEASE; DISTRIBUTION IS UNLIMITED." 2. 9211788N NOTE 2(e) RESISTANCE TO LIGHT AND WATER SPRAY CHANGE FROM: " ASTM G23 " TO: " ASTM 5153 " 3. SPECIFICATIONS AND STANDARDS ADD: "ASTM G153 TO TDPL"

REFERENCE NO. OF DOCUMENT BEING CONTINUED PAGE 9 OF 36 CONTINUATION SHEET PIIN/SIIN W52P1J-04-C-0103 MOD/AMD NAME OF OFFEROR OR CONTRACTOR: VALENTEC SYSTEMS INC. ~~ASTM- ###-###-#### 2004 ASTM-B211 2002 2003 ASTM-D2000 2001 2003 ASTM-D4727 1998 2003 ASTM-E18 2002 2003 ASTM-F1667 2002 2003~~

DWG ###-###-#### ADD: "DISTRIBUTION STATEMENT A. APPROVED FOR PUBLIC RELEASE; DISTRIBUTION IS UNLIMITED" DWG ###-###-#### (NOTE 5) - CALLOUT TO DWG ###-###-#### IS NOT APPLICABLE DWG_9207991 (NOTE 2) - SPEC MIL-S-6660 SHOULD BE SAE-AS8660 DWG ###-###-#### AND ###-###-#### - ASTM-D-2475, CLASS 26R3 IS TO BE USED IN LIEU OF C-F-206 MIL-P-48420 - DWG 13007972 IS TO BE USED IN LIEU OF. ADD: R3S2067 SHTS 18,19 FOR 13007972. ADD: "*" IN NOTE COLUMN FOR ALL NASM DWG ###-###-#### ADD "DX" IN NOTE COLUMN Spec AMS-T-WW-700/2, Orig 7/1/2001 IS TO BE USED IN LIEU OF WW-T-700/2 DWG ###-###-#### - ASTM-B211 IS TO BE USED IN LIEU OF QO-A-225/3 DWG ###-###-#### - GSA A-A-3006 IS TO BE USED IN LIEU OF MM-A-179 A-A-3006 IS ALSO CANCELLED. NEED REPLACEMENT. DWG ###-###-#### - SOURCE UPDATED AS FOLLOWS: ATOCHEM IS NOW: ATOFINA CHEMICALS INC. 2000 MARKET STREET PHILADELPHIA, PA 19103 ###-###-#### PART NO: LUPEROX DDM-9 WITCO IS NOW: CROMPTON CORPORATION 199 BENSON ROAD MIDDLEBURY, CT 06749 ###-###-#### PART NO: HI-POINT 90 AKZO CHEMIE IS NOW: AKZO NOBEL POLYMER CHEMICALS, LLC. 525 WEST VAN BUREN STREET CHICAGO, IL 60607-3823 ###-###-#### PART NO: CADOX M-50A ADD: "DISTRIBUTION STATEMENT A. APPROVED FOR PUBLIC RELEASE; DISTRIBUTION IS UNLIMITED." TO ALL INSPECTION DRAWING(S) / ASSOCIATED DOCUMENT(S) IN THIS TDP ADD: REVISION STATUS BLOCK TO SHEET 1 OF DWG. 8841348 DWG ###-###-#### - REICHOLD IS NO LONGER AN APPROVED SOURCE DWG ###-###-#### - CID A-A-203 IS TO BE USED IS LIEU OF UU-P-268 TDPL:
DOCUMENT: ADD: - ------------- --------- ~~1948-4116 XX rev 08 1948-4116/26H XX rev 03~~
The following Government Acceptance Inspection Equipment (AIE) design drawings, cited elsewhere in the technical data, REFERENCE NO. OF DOCUMENT BEING CONTINUED PAGE 10 OF 36 CONTINUATION SHEET PIIN/SIIN W52P1J-04-C-0103 MOD/AMD NAME OF OFFEROR OR CONTRACTOR: VALENTEC SYSTEMS INC . are appropriate for use during the performance of this contract to inspect the applicable characteristics: None All other Government AIE designs which are cited in the Technical Data Package List or in any other documents in the Technical Data Package are no longer maintained by the Government. These AIE may not reflect the latest component configuration and are, therefore, included for informational purposes only. The contractor is responsible for review of all AIE design documentation, other than those listed above, in accordance with Clause E-12 specified elsewhere in Section E of this contract. The contractor may elect to submit an alternative AIE design to the listed above but must submit an alternate AIE design to the Government for review and approval. (End of statement of work) (CS6100) ~~C ###-###-#### STATEMENT OF WORK - TRANSPORTATION SECURITY REQUIREMENTS MAR/2004 LOCAL~~

Supplies procured under this contract are identified as Sensative Category IV, requiring Transportation Protective Service (TPS) in accordance with DoD 5100.76M (Physical Security of Sensitive Conventional Arms, Ammunition, and Explosives) and DoD 4500.9R, Defense Transportation Regulation, parts II and III, as added to or amended by applicable military service policies in accordance with guidance provided by Defense Logistics Agency (DLA)/Defense Contract Management Agency (DCMA) or other components assigned to provide contract administration services (CAS) within designated/delegated geographic areas as specified under DOD 4105. 59H, DOD Directory of Contract Administration Service components, dated January 1985, and subsequent issues thereof for offshore/OCONUS procurements. (End of statement of work) (CS6101) ~~C ###-###-#### STATEMENT OF WORK FOR STATISTICAL PROCESS CONTROL FEB/1999 LOCAL~~

In accordance with DI-MGMT-80004 and contract clause ###-###-####, the following supplemental information shall be considered and used when designing your general and detailed SPC plans. 1.0 General Management Plan This section shall define management's SPC responsibilities and involvement and shall include management's commitment to continuous process improvement. The plan shall embrace a total commitment to quality and shall be capable of standing on its own merit. 1.1 Policy/Scope: Describe the Contractor's policy for applying SPC, including goals and management commitment to SPC. 1.2 Applicable Document: List documents that are the basis for the contractor's SPC program (i.e., ANSI standard, textbooks, Government documents). 1.3 SPC Management Structure: Define the SPC management structure within the organization. Identify and include interrelationships of all departments involved in SPC (i.e., Production, Quality, Engineering, Purchasing, etc.). Identify by job title or position all key personnel within departments involved in the application of SPC. Describe which functions are performed by key personnel and when these functions are performed (i.e., include personnel responsible for performing inspections/audits, charting and interpreting data; personnel responsible for determining, initiating and implementing corrective action upon detecting assignable causes, etc.). 1.4 SPC Training: Identify by job title or position the primary individual responsible for overseeing that SPC training is accomplished. Describe the qualification program required and in use for all personnel utilizing SPC techniques, including the qualification of trainers. Identify who is to be trained and the type, extent and length of such training (i.e., on-the-job, classroom, etc.). Identify when refresher training is required and how personnel using SPC techniques are monitored. REFERENCE NO. OF DOCUMENT BEING CONTINUED PAGE 11 OF 36 CONTINUATION SHEET PIIN/SIIN W52P1J-04-C-0103 MOD/AMD NAME OF OFFEROR OR CONTRACTOR: VALENTEC SYSTEMS INC. 1.5 Manufacturing Controls: Identify the criteria for performing SPC gage capability studies and describe how and when these studies should be applied. Repeatability and accuracy of gages should be addressed. 1.6 Determination of SPC Use: Describe how the process/operation parameters are determined appropriate for SPC application and explain what actions are taken if SPC is not deemed appropriate for critical, special and major process/operation parameters (i.e., Pareto analysis, analysis of characteristics with tight tolerances, etc.). 1.7 Process Stability and Capability: a. Identify the criteria for performing process capability studies and describe how and when these studies are applied. Describe how the process capability index is calculated and include the frequency of these calculations. Describe what actions are taken as methodologies when process capability is for variable and attribute data. To determine a capable process, the process/operation parameters shall meet the following requirements: (1) Variable data: Process capability (Cp) shall be determined. Process performance index shall be greater than or equal to 1.33 (Cpk). For critical parameters/characteristics, the process performance index shall be greater than or equal to 2.0 (Cpk). (2) Attribute data: Process capability/performance shall be the percent beyond the upper/lower specification limit less than or equal to .003 percent (Cpk = 1.33). b. Describe what actions will be taken if process/operation is sub-marginal or marginal (Cpk less than 1.33 or 2.0 for criticals or grand average fraction defective is greater than .003 percent). c. Include analysis of statistical distributions and define all formulas and symbology utilized. 1.8 Control Chart Policy: a. Type of charts to be used (i.e., x bar/R x bar/S, etc.) and rationale for use; the criteria for selection of sample size, frequency of sampling and rational subgroups. b. Procedures for establishing and updating control limits, including frequency of adjustments. c. Criteria for determining out-of-control conditions (i.e., trends, points beyond control limits, etc.) and the corrective action taken, to include failure analysis when the process is unstable or when nonconforming product has resulted from unstable processes. Illustrate out-of-control tests. d. Describe the method of recording pertinent facts on control charts such as changes in raw material, machines, manufacturing methods and environment, and corrective actions taken and describe how control charts are traceable to the product. 1.9 vendor/Subcontractor Purchase Controls: Identify whether suppliers are required to utilize SPC and describe the extent the vendor's policies and procedures are consistent with in-house procedures of the prime contractor. Describe the following: methods utilized to determine that suppliers have adequate controls to assure defective product is not produced and delivered; the system utilized to audit suppliers, what will be audited and how often, what action will be taken when out-of-control conditions exist at subcontractor/vendor facilities. 1.10 SPC Audit System: At a minimum, the contractor's SPC Audit System shall consist of auditing compliance with the planned arrangements specified in the general and detailed SPC plans followed by a review and analysis of the outcome to include implementation of necessary corrective action. 1.11 SPC Records: Identify various records to be used in support of SPC and describe their use. Identify retention periods. 2.0 Detailed Plan: This section shall detail specific manufacturing process/operation parameters under control. 2.1 Control of Process/Operation Parameters or Characteristics: a. Identify the following for each process/operation by name or characteristic under control: (1) Identify process/operation by name or characteristic and provide rationale for selection; justification for nonselection if the parameter or characteristic is identified as critical, special and/or major. (2) Describe how the characteristic is produced; the chain of events, type and number of machines involved, location of manufacturing facility, tolerances maintained, etc. REFERENCE NO. OF DOCUMENT BEING CONTINUED PAGE 12 OF 36 CONTINUATION SHEET PIIN/SIIN W52P1J-04-C-0103 MOD/AMD NAME OF OFFEROR OR CONTRACTOR: VALENTEC SYSTEMS INC. (3) Production and inspection machinery used. Include the production rate, number of shifts and length of shifts plus whether inspection is fully or semi-automatic or manual. If manual, identify the type of gages in use. (4) Identify the type of charts to be maintained and whether the process/operation is performed in-house or subcontracted out; identify facility/vendor where process/operation parameters are targeted for SPC. 2.2 Reduction or Elimination of Inspection/Test: The Procuring Contracting Officer (PCO) will accept submissions of requests for reduction or elimination of final acceptance inspection/testing when the requirements of the SPC contract clause and this SOW are met. Each request shall contain and/or address the following: control charts documenting twenty (20) consecutive production shifts or more for the same process/operation parameter under control; type of control chart utilized; control chart limits and process average or grand average fraction defective (as applicable); definition of out-of-control condition and corrective actions taken during out-of-control conditions; specification and part number. (End of statement of work) (CS7100) ~~C ###-###-#### STATEMENT OF WORK - AMMUNITION DATA CARDS AND REPORT OF CONTRACTOR AUG/2002 LOCAL BALLISTIC TESTING~~

Ammunition Data Cards shall be prepared in accordance with MIL-STD-1168 and shall follow the format required by the world wide web application identified as WARP or Worldwide Ammunition-data Repository Program. Additional details on WARP are provided below. Prior to gaining access to WARP contractor/facility personnel involved in the preparation of ammunition data cards shall obtain a user name and password for the Army Electronic Product Support (AEPS) network. Instructions and help for obtaining access to AEPS are provided below: AEPS Access Procedures The Army Electronic Product Support (AEPS) is a Department of Defense logistics website. Entering AEPS will allow you access to the SECURED AREA of the Army Electronic Product Support Network. A username and password are required to enter this area. Only authorized DoD personnel and contractors with current active contracts with DoD will receive access into the AEPS website. If you have a requirement for the AEPS website, you must fill out and submit the AEPS Access Request Form found at the following web address: http://aeps.ria.army.mil/aepspublic.cfm You must click on "Access Request Form" and continue through the steps until completion and click on SUBMIT. You are required to provide a supervisor name, email and phone number if you are a DoD civilian or military. Government contractors are required to provide CAGE code, Contract Number and COR/COTR with "Government" email address. All requestors must provide their Information Assurance Security Officer's (IASO, formerly ISSO) name, email, DSN phone and commercial phone. After submitting the request, your supervisor/COR/COTR will be emailed a copy of your request and will be asked to verify your information before a user ID will be issued. AEPS User ID and AEPS Login Name mean the same. Your supervisor must REPLY back to the email providing the following: Approval? (YES/NO) Supervisor Name Supervisor E-Mail Supervisor Phone The COR/COTR must also provide the same information stated above in his/her REPLY plus provide the Contract Expiration Date (format - MM/DD/YYYY). Upon notification from your supervisor/COR/COTR, you will be emailed an AEPS User Login Name and instructions for logging into the AEPS website. You will use the AEPS password that you assigned to yourself when you filled out the access request form. Once you gain access to the AEPS website, you can change your personal information when needed to keep your file current. AEPS HELP-DESK and Problem Reporting Procedures Reporting Problems - The AEPS Help Desk has several means of reporting problems: REFERENCE NO. OF DOCUMENT BEING CONTINUED PAGE 13 OF 36 CONTINUATION SHEET PIIN/SIIN W52P1J-04-C-0103 MOD/AMD NAME OF OFFEROR OR CONTRACTOR: VALENTEC SYSTEMS INC. Call 1-888-LOG-HELP (1 ###-###-####) to speak to an AEPS representative Contact the AEPS Help-Desk at Comm. (309) 782-0699 or DSN ###-###-#### or ###-###-#### or DSN ###-###-#### Contact the AEPS Help-Desk by FAX: (309) 782-1426 or DSN ###-###-#### Contact the AEPS Webmaster by Email: Webmaster ***@***) Each phone call, email or fax is handled in a prompt and courteous manner. Responses to problems are provided by phone and/or email. Other means to help assist you in identifying your problems can be found on the AEPS Help Section at web link: http://aeps/ria.army.mil/help.cfm Here you will find Questions and Answers by clicking in either of the two FAQ subcategories reflected under the HELP tab: FAQs - AEPS Access Request Process or SSL FAQs - Secured Socket Layer You may also check out our new Frequently Asked Questions (https://aeps.ria.army.mil/aepsqa.cfm) page to get answers on access problems as another means of assistance. The AEPS Help Section screen http://aeps.ria.army.mil/help.cfm also reflects two other topics that can be clicked on to provide further assistance: "Password Problems or Request Status" at https://aeps.ria.army.mil/request/info/UserScreen.cfm "Ask the AEPS Public Help Knowledge Base" at http://aeps.ria.army.mil/help/aepshelpmain.cfm Worldwide Ammunition-data Repository Program (WARP) Once you have obtained an AEPS user name and password allowing entry to the secured area of AEPS you can access the WARP application by scrolling to the bottom of the list of AEPS applications. The WARP opening main page and all subsequent pages contain multiple navigational aids to guide you through the process of inputting information necessary for creating a new ammunition data card. An online users manual will provide additional help in the development of an ammunition data card and it is recommended that you download and read the users manual prior to inputting your initial data card. The user's manual also contains screen shots, which depict what the inputter will see during the ADC input process. Ammunition Data Card Input ADC input allows current contractors and government facilities the capability to create, and submit for approval, ADCs which meet the format requirement of MIL-STD-1168B. ADCs are automatically forwarded to the respective Governmental Agency Responsible for Acceptance (GARA). The GARA, in most cases the Defense Contract Management Agency (DCMA) Quality Assurance Representative (QAR), reviews contractor input for accuracy and completeness, and after updating the disposition code for the specific lot, submits the ADC to the database. The inputter is granted access only to ADCs identified with its specific manufacturing code, as identified in MIL-HDBK-1461A, Manufacturer's Symbols. The use of previously inputted ADCs through the TEMPLATE option, significantly reduces input effort, while increasing accuracy and consistency of data. Email Notification WARP provides immediate, automated notification to process participants when actions are required. When the producer has completed an ADC submission, an email message is routed to the GARA advising that an ADC awaits review and approval. If the GARA approves the ADC as submitted, the ADC is released to the base and an email, with approved data card, is routed back to the originator. If the ADC requires modification or correction to be in accordance with MIL-STD-1168B requirements, an email is provided to the ADC originator advising that corrective action is required prior to approval. Information Updates It is important that the System Administrators are apprised when a producer receives a new contract. The producer shall notify ***@*** within 30 days after receipt of a new contract. Information to be included shall be the contract number, item, GARA, Manufacturer's identification symbol and the names of the individuals who will be inputting ADCs into the system. If you are a new producer and do not have a Manufacturer's identification symbol, you can obtain one by sending an email to ***@***. The email must contain manufacturer's name, address where performance of the contract will take place, and a point of contact. (End of statement of work) (CS7200) REFERENCE NO. OF DOCUMENT BEING CONTINUED PAGE 14 OF 36 CONTINUATION SHEET PIIN/SIIN W52P1J-04-C-0103 MOD/AMD NAME OF OFFEROR OR CONTRACTOR: VALENTEC SYSTEMS INC. ~~C ###-###-#### CONFIGURATION MANAGEMENT DOCUMENTATION MAY/2001 LOCAL~~

The contractor may submit Engineering Change Proposals (ECPs), Value Engineering Change Proposals (VECPs) (Code V shall be assigned to an engineering change that will effect a net life cycle cost), including Notices of Revision (NORs), and Requests for Deviation (RFDs) for the documents in the Technical Data Package (TDP). The contractor shall prepare these documents in accordance with the Data Item Descriptions cited in block 04 on the enclosed DD Form 1423, Contract Data Requirements List. Contractor ECPs/VECPs shall describe and justify all proposed changes and shall include NORs completely defining the changes to be made. Contractors may also submit RFDs, which define a temporary departure from the TDP or other baseline documentation under Government control. The contractor shall not deliver any units incorporating any change/deviation to Government documentation until notified by the Government that the change/deviation has been approved and the change/deviation has been incorporated in the contract. If the Government receives the same or substantially the same VECPs from two or more contractors, the contractor whose VECP is received first will be entitled to share with the Government in all instant, concurrent, future, and collateral savings. Duplicate VECPs, which are received subsequently, will be returned to the contractor(s) without formal evaluation, regardless of whether or not the first VECP has been approved and accepted by the Government. (End of clause) (CS7600) On page 6 of the solicitation, under section titled "Engineering Exceptions", under #2: replace "ASTM 5153" with "ASTM G153" On page 7 of the solicitation, in the line "MIL-P-48420 - DWG 13007972 is to be used in lieu of", change "MIL-P-48420" to "MIL-P-48240" *** END OF NARRATIVE C 001 *** 1. The CD ROM does not include drawing ###-###-#### for the Lower Disc. Drawing ###-###-####, attached, is a component of the washer, Disc Assembly, 8797958. it is a disc of onionskin paper that separates the expelling charge from the illuminant assembly. See attachment # 014 for drawing. 2. Regarding R3S2067 w/ drawing 13007972 for the Igniter Composition, please reference amendment #2 for the following: change "MIL-P-48420" to "MIL-P-48240". This specification was cancelled and drawing 13007972 replaces this specification. 3. in Section C, page 6 of the solicitation, there are instructions to deleting Rev. M of document ###-###-####, but blank under the column of what would be added. This drawing is an alternate ink for marking the pallets of 105mm artillery projectiles, 8837839. This is an erroneous entry and not relevant to this solicitation. 4. In Section C, page 6 of the solicitation, there are instructions to add sheets 3 and 19 of document R3J2059. This ECP applies to the 81mm Mortar illumination Projectile. This is an erroneous entry and not relevant to this solicitation. 5. In Section C, page 7 of the solicitation, instructions are provided to add "DX" in the note column of drawing ###-###-####. "DX" refers to 'Source Controlled Drawing', which drawing ###-###-#### is a source controlled drawing. *** END OF NARRATIVE C 002 *** 1. Refer to page 7 of the solicitation identifying where spec GSA-A-A-3006 is to be used. In reference to drawing ###-###-####, Washer and Disc Assembly, it specifies use of adhesive MMM-A-179. Section C replaced this adhesive with CID A-A-3006 (GSA) which is also obsolete without replacement. The following adhesive is suitable for replacement. Drawing ###-###-#### (see attachment) is a source control drawing (TYCO) and the part no. to be used is 40T8N. If an offeror has material that will conform to the cancelled spec (A-A-3006 (GSA)), that is acceptable also. *** END OF NARRATIVE C 003 *** REFERENCE NO. OF DOCUMENT BEING CONTINUED PAGE 15 OF 36 CONTINUATION SHEET PIIN/SIIN W52P1J-04-C-0103 MOD/AMD NAME OF OFFEROR OR CONTRACTOR: VALENTEC SYSTEMS INC. SECTION D - PACKAGING AND MARKING For Local Clauses See: http: //www.afsc.army.mil/ac/aais/ioc/clauses/index.htm
Regulatory Cite Title Date --------------- ----------------------------------------- -------- ~~D-1 52.211-4508 PACKAGING REQUIREMENTS JUL/1997 LOCAL~~
Packaging shall be in accordance with ###-###-#### revision AC, dated 2 JULY 2003. When lot numbering is required, no more than one lot shall be packaged in an outer shipping container. Marking shall be in accordance with ###-###-####, REV AC DATED 2 JULY 2003. 2-D bar code marking is required in accordance with ###-###-####, Rev BL, dated 1 MAY 2003. EXCEPTION: PERFORMANCE ORIENTATED PACKAGING (POP) VERIFICATION: In no case shall a container be shipped if the gross weight marked on the package is greater than the POP certified weight. If the average gross weight of the packed containers (determined by weighing two representative samples and averaging the weight) is greater than the certified weight, container marking operations shall cease and the procuring activity shall be contacted immediately. EXCEPTION TO PERFORMANCE ORIENTED PACKAGING (POP) MARKINGS: If manufactured outside the USA, contractor shall not apply the UN POP certification marking provided on drawing ###-###-####, Contractors (outside the USA) are responsible to perform UN POP tests on packaging requirements provided in this contract and apply UN POP certification marking authorized by the Competent Authority of the State (country) of manufacture. Heat treat requirements for all non-manufactured wood used in packaging applies to this contract. See ###-###-####, Note L. ECP R3K3015 applies to MIL.B.46506. In addition, foreign manufacturers shall have the heat treatment of non-manufactured wood products verified in accordance with their National Plant Protection Organization's compliance program. METALLIC SEAL: Use ###-###-#### REV "AB" in lieu of Rev "AC". (End of clause) (DS6303) ~~D ###-###-#### PALLETIZATION INSTRUCTION MAR/1992 LOCAL~~

Palletization shall be in accordance with 19-48-4116/26H, revision 3, dated NOV 2002 and 19-48-4116, Rev 8, dated June 2003. Marking shall be in accordance with ACV00561, Rev B, dated 1 April 2002. ECP R3K3017 and ECP R3K3024 apply to ACV00561. 19-48-4116/18 does not apply to this procurement. (End of clause) (DS6204) REFERENCE NO. OF DOCUMENT BEING CONTINUED PAGE 16 OF 36 CONTINUATION SHEET PIIN/SIIN W52P1J-04-C-0103 MOD/AMD NAME OF OFFEROR OR CONTRACTOR: VALENTEC SYSTEMS INC. SECTION E - INSPECTION AND ACCEPTANCE For Local Clauses See: http://www.afsc.army.mil/ac/aais/ioc/clauses/index.htm The following Federal Acquisition Regulation (FAR), DoD FAR Supplement clauses and provisions, the full text of which will be made available upon request, are incorporated herein by reference with the same force and effect as if set forth in full text. The text of the clauses incorporated by reference herein are available from the contract specialist indicated in block 7 of the Standard Form 33 or (as applicable) the contracting officer and will be furnished upon request. Other documents are available as indicated in the schedule. Any company/individual wishing to purchase a copy of the Federal Acquisition Regulation (FAR), the Army FAR Supplement or the DOD FAR Supplement, may do so from the Superintendent of Documents, US Government Printing Office, Washington DC 20402 (EA7001)
Regulatory Cite Title Date --------------- --------------------------------------------------- -------- ~~E-l 52.246-2 INSPECTION OF SUPPLIES-FIXED-PRICE AUG/1996 E-2 52.246-16 RESPONSIBILITY FOR SUPPLIES APR/1984 E ###-###-#### FIRST ARTICLE TEST (CONTRACTOR TESTING) MAY/1994 LOCAL~~
a . The first article shall consist of: FAT shall consist of those items and quantities as cited in current Item SPEC MIL-C-5059A with amendment 1. Also, all samples of each component, subassembly and assembly are to be 100% inspected for unlisted characteristics. which shall be examined and tested in accordance with contract requirements, the item specifications), Quality Assurance Provisions (QAPS) and all drawings listed in the Technical Data Package. b. The first article shall be representative of items to be manufactured using the same processes and procedures and at the same facility as contract production. All parts and materials, including packaging and packing, shall be obtained from the same source of supply as will be used during regular production. All components, subassemblies, and assemblies in the first article sample shall have been produced by the Contractor (including subcontractors) using the technical data package provided by the Government. c. The first article shall be inspected and tested by the contractor for all requirements of the drawing(s), the QAPs, and specifications) referenced thereon, except for: (1) Inspections and tests contained in material specifications provided that the required inspection and tests have been performed previously and certificates of conformance are submitted with the First Article Test Report. (2) Inspections and tests for Military Standard (MS) components and parts provided that inspection and tests have been performed previously and certifications for the components and parts are submitted with the First Article Test Report. (3) Corrosion resistance tests over 10 days in length provided that a test specimen or sample representing the same process has successfully passed the same test within 30 days prior to processing the first article, and results of the tests are submitted with the First Article Test Report. (4) Life cycle tests over 10 days in length provided that the same or similar items manufactured using the same processes have successfully passed the same test within 1 year prior to processing the first article and results of the tests are submitted with the First Article Test Report. (5) Onetime qualification tests, which are defined as a onetime on the drawing(s), provided that the same or similar item manufactured using the same processes has successfully passed the tests, and results of the test are on file at the contractor's facility and certifications are submitted with the First Article Test Report. d. The Contractor shall provide to the Contracting Officer at least 15 calendar days advance notice of the scheduled date for final inspection and test of the first article. Those inspections which are of a destructive nature shall be performed upon additional sample parts selected from the same lot(s) or batch(es) from which the first article was selected. e. A First Article Test Report shall be compiled by the contractor documenting the results of all inspections and tests (including REFERENCE NO. OF DOCUMENT BEING CONTINUED PAGE 17 OF 36 CONTINUATION SHEET PIIN/SIIN W52P1J-04-C-0103 MOD/AMD NAME OF OFFEROR OR CONTRACTOR: VALENTEC SYSTEMS INC. supplier's and Vendor's inspection records and certifications, when applicable). The First Article Test Report shall include actual inspection and test results to include all measurements, recorded test data, and certifications (if applicable) keyed to each drawing, specification and QAP requirement and identified by each individual QAP characteristic, drawing/specification characteristic and unlisted characteristic. The Government Quality Assurance Representative's (QAR) findings shall be documented on DD Form 1222, Request for and Results of Tests, and attached to the contractor's test report. Two copies of the First Article Test Report and the DD Form 1222 will be submitted through the Administrative Contracting Officer to the Contracting Officer with an additional information copy furnished to OAR to SFSJM-CDM, PQM to PCO. f. Notwithstanding the provisions for waiver of first article, an additional first article sample or portion thereof, may be ordered by the Contracting Officer in writing when (i) a major change is made to the technical data, (ii) whenever there is a lapse in production for a period in excess of 90 days, or (iii) Whenever a change occurs in place of performance, manufacturing process, material used, drawing, specification or source of supply. When conditions (i), (ii) , or (iii) above occurs, the Contractor shall notify the Contracting Officer so that a determination can be made concerning the need for the additional first article sample or portion thereof, and instructions provided concerning the submission, inspection, and notification of results. Costs of the first article testing resulting from production process change, change in the place of performance, or material substitution shall be borne by the Contractor. (End of clause) (ES6031) ~~E ###-###-#### GOVERNMENT FURNISHED TEST SUPPORT EQUIPMENT JAN/1995 LOCAL~~

The Government will furnish the following test equipment to support First Article, Reliability, and/or Acceptance Tests. The Contractor will submit a written request for this property to the Contracting Officer no later than thirty (30) days prior to the desired delivery date.
(a) Item National Cost Unit of Nomenclature Stock Number Quantity Each Issue ------------- ---------------------- -------- ---- ------- ~~M16 Rifle NSN: 1005-01-128-9936 1 N/A EACH M203 Launcher NSN: 1010-00-179-6447 2 M203 Barrel NSN: 1010 ###-###-#### 6~~
(b) Estimated Weight: N/A pounds. (c) Cube: N/A cu. ft. (End of clause) (ES6115) ~~E-5 52.246-11 HIGHER-LEVEL CONTRACT QUALITY REQUIREMENT FEB/2004 LOCAL~~

(a) Definition. "Contract date", as used in this clause, means the date set for bid opening; or it this is a negotiated contract or a modification, the effective date of this contract or modification. (b) The Contractor shall comply with: ( ) ISO 9002 (X) ISO 9001-2000; only design/development exclusions permitted ( ) ISO 9001-2000; no exclusions permitted or an alterate program/system approved by the activity listed in block 7 of the Standard Form 33, in effect on the contract date and which is hereby incorporated into this contract. (End of clause) (ES6001) REFERENCE NO. OF DOCUMENT BEING CONTINUED PAGE 18 OF 36 CONTINUATION SHEET PIIN/SIIN W52P1J-04-C-0103 MOD/AMD NAME OF OFFEROR OR CONTRACTOR: VALENTEC SYSTEMS INC. ~~E ###-###-#### STATISTICAL PROCESS CONTROL (SPC) FEB/2004 LOCAL~~

a. In addition to the quality requirements of the technical data package, the Contractor shall implement Statistical Process Control (SPC) in accordance with a government accepted SPC Program Plan. Control chart techniques shall be in accordance with the American National Standards Institute (ANSI) Bl, B2 and B3. Alternate SPC charting methods may be proposed and submitted to the Government for review. b. The SPC Program Plan developed by the contractor shall consist of a general plan and a detailed plan. The plans shall be structured as delineated on the Data Item Description referenced in the DD Form 1423. The general and the detailed plans shall be submitted to the government for review per DD Form 1423 requirements. Notification by the Government of acceptance or nonacceptance of the plans shall be provided in accordance with the timeframes specified on the DD Form 1423. Once a general plan for a facility has been approved by this Command, the approval remains in effect for subsequent contracts as long as the contractual requirements remain substantially unchanged from contract to contract. Therefore, resubmission of a previously accepted general SEC plan is not required if current SPC contract clause and Data Item Description (DID) requirements are fulfilled. If this Command has previously accepted the general SPC plan under essentially the same SPC contractual requirements, so indicate by providing the Contracting Officer with the following information: Date of Acceptance _____________ Contract Number(s) _____________ c. The contractor is responsible for updating the general plan to current SPC contractual requirements. If errors or omissions are encountered in a previously accepted SPC general plan, opportunities for improvement will be identified by the Government, and corrective action shall be accomplished by the contractor. d. A milestone schedule will be submitted for those facilities who do not have, or have never had, a fully implemented SPC program and will not have a fully operational SPC program once production is initiated. The milestones shall provide a time phased schedule of all efforts planned relative to implementation of an SPC program acceptable to the Government. A milestone schedule shall include implementation start and complete dates for those SPC subjects addressed in the Statistical Process Control Statement of work located in Section C. The milestone schedule shall only include those actions that can not be accomplished prior to first article or the initiation of production, if a first article is not required. Milestones shall be developed for each commodity identified for SPC application. Milestones shall be submitted through the Government Quality Assurance Representative to the Contracting Officer for review and acceptance. Any deviations from the accepted milestones, to include justification for such deviations, shall be resubmitted through the same channels for review. The Government reserves the right to disapprove any changes to the previously accepted milestones. Notification by the Government of the acceptance or nonacceptance of the milestones shall be furnished to the Contractor by the Contracting Officer. e. The Contractor shall review all process and operation parameters for possible application of SPC techniques. This review shall include processes and operations under the control of the prime contractor and those under the control of subcontractor or vendor facilities. A written justification shall be included in the detailed plan for each process and operation parameter that controls or influences characteristics identified as critical, special, or major which have been deemed impractical for the application of SPC techniques. A pamphlet on application of SPC for short production runs is available through the Contracting Officer. f. Statistical evidence in the form of control charts shall be prepared and maintained for each process or operation parameter identified in the detailed plan. These charts shall identify all corrective actions taken on statistical signal. During production runs, control charts shall be maintained in such a manner to assure product is traceable to the control charts. At the conclusion of the production run, a collection of charts traceable to the product, shall be maintained for a minimum of 3 years. The control charts shall be provided to the Government for review at any time upon request. g. when the process or operation parameter under control has demonstrated both stability and capability, the Contractor shall request, in writing, through Administrative Contracting Officer (ACO) and Contracting Officer (CO) channels to the Product Assurance and Test Directorate, that acceptance inspection or testing performed in accordance with contract requirements be reduced or eliminated. Upon approval by the CO, acceptance shall then be based upon the accepted SPC plan, procedures, practices and the control charts. h. The Government will not consider requests for reduction or elimination of 100% acceptance inspection and testing of parameters or characteristics identified as critical in the technical data package, specifications or drawings of this contract if any one of the following conditions exist: (l) The existing process currently utilizes a fully automated, cost effective, and sufficiently reliable method of 100% acceptance inspection or testing for an attribute-type critical parameter or characteristic. (2) The Contractor utilizes attribute SPC control chart methods for the critical parameter or characteristic. REFERENCE NO. OF DOCUMENT BEING CONTINUED PAGE 19 OF 36 CONTINUATION SHEET PIIN/SIIN W52P1J-04-C-0103 MOD/AMD NAME OF OFFEROR OR CONTRACTOR: VALENTEC SYSTEMS INC. (3) The critical parameter or characteristic is a first order, single point safety failure mode (nonconformance of the critical parameter or characteristic in and of itself would cause a catastrophic failure). i. The Government will only consider reduction or elimination of the 100% acceptance inspection or test requirement for other critical parameters or characteristics if either of the following conditions are met: (1) The process is in a state of statistical control utilizing variable control chart methods for the critical parameter or characteristic under control and the process performance index (Cpk) is at least 2.0. The Contractor shall maintain objective quality evidence through periodic audits that the process performance index is being maintained for each production delivery. (2) The critical parameter or characteristic is conclusively shown to be completely controlled by one or more process or operation parameters earlier in the process, and those parameters are in a state of statistical control utilizing variable data, and the product of the probability of the conformance for each earlier parameter associated to the critical characteristic is better than or equal to a value equivalent to that provided by a Cpk of at least 2.0. The Contractor shall maintain objective quality evidence through periodic audits that the process performance indexes are being maintained for each production delivery. j. For characteristics other than critical, requests for reduction or elimination of acceptance inspection and testing shall be considered when the process performance index is greater than or equal to a Cpk of 1.33 for variables data. Requests shall be considered for attributes data when the percent beyond the specification limits is less than or equal to .003 (Cpk=1.33). k. Process or operation parameters under reduced or eliminated inspection or testing that undergo a break in production less than 6 months in length, may continue to operate under reduced or eliminated inspection or testing provided there has been no degradation below a Cpk of 1.33 (2.0 for criticals). Any break in production greater than 6 months shall require resubmission of the request for reduction or elimination of inspection or testing through the same channels cited in paragraph g above. l. Not used. m. Immediately following a change to a process or operation parameter under reduced or eliminated inspection, the process capability (Cp) or process performance indexes (Cpk) shall be recalculated and documented for variable data; the grand average fraction defective shall be recalculated for attribute data. If any of these values have deteriorated, immediate notification shall be made to the Government along with the associated documentation. Return to original inspection and test requirements may be imposed as stipulated in paragraph n below. n. The Government reserves the right to withdraw authorization to reduce or eliminate final acceptance inspection or testing and direct the Contractor to return to original contract inspection or test procedures at any indication of loss of process control or deterioration of quality. (End of clause) (ES6034) ~~E ###-###-#### MIL-STD-1916 OCT/2000 LOCAL~~

The Department of Defense (DoD) Preferred Methods for this Acceptance of Product, MIL-STD-1916, shall be used for this procurement action. All references to MIL-STD-105, MIL-STD-414; MIL-STD-1235, and ANSI Z1.4 appearing in the Technical Data Package (TDP) are replaced by MIL-STD-1916. verification Levels (VL) shall replace AQLs and shall be VL IV for major characteristics and VL II for minor characteristics (End of clause) (ES7650) ~~E ###-###-#### REWORK AND REPAIR OF NONCOMFORMING MATERIAL MAY/1994 LOCAL~~

a. Rework and Repair are defined as follows: (1) Rework - The reprocessing of nonconforming material to make it conform completely to the drawings, specifications or contract requirements. (2) Repair - The reprocessing of nonconforming material in accordance with approved written procedures and operations to reduce, but not completely eliminate, the nonconformance. The purpose of repair is to bring nonconforming material into a usable condition. REFERENCE NO. OF DOCUMENT BEING CONTINUED PAGE 20 OF 36 CONTINUATION SHEET PIIN/SIIN W52P1J-04-C-0103 MOD/AMD NAME OF OFFEROR OR CONTRACTOR: VALENTEC SYSTEMS INC. Repair is distinguished from rework in that the item after repair still does not completely conform to all of the applicable drawings, specifications or contract requirements. b. Rework procedures along with the associated inspection procedures shall be documented by the Contractor and submitted to the Government Quality Assurance Representative (QAR) for review prior to implementation. Rework procedures are subject to the QAR's disapproval. c. Repair procedures shall be documented by the Contractor and submitted on a Request for Deviation/Waiver, DD Form 1694, to the Contracting Officer for review and written approval prior to implementation. d. Whenever the Contractor submits a repair or rework procedure for Government review, the submission shall also include a description of the cause for the nonconformances and a description of the action taken or to be taken to prevent recurrence. e. The rework or repair procedure shall also contain a provision for reinspection which will take precedence over the Technical Data Package requirements and shall, in addition, provide the Government assurance that the reworked or repaired items have met reprocessing requirements. (End of clause) (ES7012) ~~E ###-###-#### ACCEPTANCE INSPECTION EQUIPMENT MAY/1994 LOCAL~~

a. Acquisition, maintenance, and disposition of inspection equipment shall be in accordance with ANSI/NCSL Z540-1 or ISO 10012-1. b. The Contractor shall provide all Acceptance Inspection Equipment (AIE) (except for any equipment listed as available in Section H and/or in Appendix I of this contract) necessary to assure conformance of components and end items to contract requirements. Equipment listed as available shall be furnished by the Government in accordance with the Government Property clause of this contract. Government furnished Acceptance Inspection Equipment shall not be used by the contractor or his subcontractors in lieu of work gages. c. All AIE shall be available for use prior to First Article submission, if First Article is required, or prior to initiation of production under this contract. d. Contractor furnished AIE shall be made (i) in accordance with the equipment drawings specified in Section C description/specifications section), or (ii) in accordance with any other design, provided that the design documentation is approved by the Government. AIE designs utilized for inspection of characteristics that are classified as Minor require approval by the Government Quality Assurance Representative (QAR). AIE design documentation for inspection of characteristics listed as Critical, Special, or Major shall be submitted to the Government for review and approval in accordance with the Contract Data Requirements List, DD Form 1423. e. Resubmission of AIE design documentation for approval on a follow on contract is not required provided inspection characteristic parameters) specified in the current technical data package and the previously approved AIE design documentation remain unchanged. The contractor shall provide the contract number and identify previously approved AIE documentation that meets the above prerequisites. f. The Government reserves the right to disapprove at any time during performance of this contract, use of any AIE not meeting the requirements of the approved design documentation. (End of clause) (ES7010) ~~E ###-###-#### DESTRUCTIVE TESTING MAY/1994 LOCAL~~

a. All costs for destructive testing by the Contractor and items destroyed by the Government are considered as being included in the contract unit price. b. Where destructive testing of items or components thereof is required by contract or specification, the number of items or components required to be destructively tested, whether destructively tested or not, shall be in addition to the quantity CONTINUATION SHEET REFERENCE NO. OF DOCUMENT BEING CONTINUED PAGE 21 OF 36 PIIN/SIIN W52P1J-04-C-0103 MOD/AMD NAME OF OFFEROR OR CONTRACTOR: VALENTEC SYSTEMS INC. to the delivered to the Government as set forth in the Contract Schedule. c. All pieces of the complete First Article shall be considered as destructively tested items unless specifically exempted by other provisions of this contract. d. The Contractor shall not reuse any components from items used in a destructive test during First Article, lot acceptance r inprocess testing, unless specifically authorized by the Contracting Officer. e. The Government reserves the right to take title to all or any items or components described above. The Government may take title to all or any items or components upon notice to the Contractor. The items or components of items to which the Government takes title shall be shipped in accordance with the Contracting Officer's instructions. Those items and components to which the Government does not obtain title shall be rendered inoperable and disposed of as scrap by the Contractor. (End of clause) (ES7011) ~~E ###-###-#### CRITICAL CHARACTERISTICS FEB/2004 LOCAL~~

a. The contractors processes shall be designed to prevent the creation or occurrence of critical nonconformances 3. The contractor shall establish, document and maintain specific procedures, work and handling instructions and process controls relating to any critical characteristics. b. The contractor shall assure his critical processes are robust in design such that product and performance are relatively insensitive to design and manufacturing parameters. A robust design anticipates changes and problems. Robust processes shall be designed to yield less than one nonconformance in one million. c.An inspection/verification system shall be employed that will verify the robustness of your critical processes. Maximum use should be made of automated inspection equipment to accomplish verification of product quality. Mistake proofing techniques of your material handling and inspection systems are encouraged. d.Previous Practices/Special Characteristics. As a result of previous practices, the governments technical data may refer to Critical (not annotated with I or II) and Special characteristics. Characteristics classified as Critical (not annotated with a I or II) shall be subject to all requirements herein associated with Critical (I) characteristics and level I Critical nonconformances. Unless otherwise stated in Section C, characteristics classified as Special shall be subject to all requirements herein associated with Critical (II) and Level (II) Critical nonconformances. e.Contractor Identified Critical Characteristics List (CICCL). Not including critical characteristics defined in the governments technical data (drawings, specifications, etc.), the contractor shall identify and document all material, component, subassembly and assembly characteristics whose nonconformances may result in hazardous or unsafe conditions for individuals using, maintaining or depending upon the product. All additional critical characteristics identified by the contractor shall comply with the critical characteristic requirements of the technical data package, supplemented herein. The contractors additional critical characteristics shall be classified as Critical (I) or Critical (II), and shall be reviewed and approved by the procuring activity prior to manufacturing (DI-SAFT-80970A). The following definitions are provided. Level I critical nonconformance. A nonconformance of a critical characteristic that judgment and experience indicate would result in hazardous or unsafe conditions for individuals using, maintaining or depending upon the product; or a nonconformance that judgment and experience indicate would prevent performance of the tactical function of a weapon system or major end item. The following (as a minimum) are classified as Level I critical nonconformances: (1) A nonconformance that will result in a hazardous or unsafe condition (often referred to as a single point failure). (2) A nonconformance that will remove or degrade a safety feature (such as those in a safe and arm device or fuzing system). (3) A nonconformance that will result in violation of mandatory safety policies or standards. Level II critical nonconformance: A nonconformance of a critical characteristic, other than Level I. This includes the nonconformance of a characteristic that judgment and experience indicate may, depending upon the degree of variance from the design requirement, the presence of other nonconformances or procedural errors,: (1) result in a hazardous or unsafe conditions for individuals using, maintaining or depending upon the product, or (2) prevent performance of the tactical function of a major end item. f.In the event that a Critical nonconformance is found anywhere in the production process, the contractor, as part of his quality system, shall have procedures in place to ensure: (1) The nonconformance is positively identified and segregated so that there is no possibility of the item inadvertently re-entering the production process. This control shall be accomplished without affecting or impairing subsequent defect analysis. (2) The operation that produced the defective component or assembly and any other operations incorporating that component or assembly is immediately stopped. (3) The government is immediately notified of the critical nonconformance (telephonically and electronic mail.)(DI-SAFT-80970A). (4) Any suspect material (material in process that may contain the same defect) is identified, segregated and suspended from any further processing. (5) An investigation is conducted to determine the cause of the deficiency and required corrective actions. A report of this CONTINUATION SHEET REFERENCE NO. OF DOCUMENT BEING CONTINUED PAGE 22 OF 36 PIIN/SIIN W52P1J-04-C-0103 MOD/AMD NAME OF OFFEROR OR CONTRACTOR: VALENTEC SYSTEMS INC. investigation shall be submitted to the government (DI-SAFT-80970A). The use of the DID report shall not delay notification to the government. (6) A request to restart manufacturing or to use any suspect material associated with the critical nonconformance is submitted to the government (DI-SAFT-80970A). Restart of production shall not occur until the investigations are complete or upon authorization from the procuring contracting officer. All objective evidence of the investigations to date shall be available for review at the time of restart. Suspect materiel found to be nonconforming shall not be used without Government approval. g. The contractor may develop alternative plans and provisions relative to government or contractor identified Critical level (I) and Critical Level (II) characteristics. The provisions shall be submitted to the government for advanced approval and shall address the following: (1) Complete explanation of potential failure mode(s) together with supporting historical and statistical data. (2) Pre-established plan of action (POA) to be taken when a critical nonconformance occurs and a description of controls to ensure there is no possibility of the nonconforming item inadvertently entering the production process. (3) Means of tracking nonconformance rate, investigative results and corrective actions taken. (4) Method to immediately verify that a produced critical nonconformance is consistent with the identified failure mode(s) and does not exceed the historical nonconformance rate. The contractor can resume production without specific government approval based upon the pre-approved alternate plans and provisions for Critical (I) characteristics and level (I) Critical nonconformances and Critical (II) characteristics and level (II) Critical nonconformances. h. If a critical nonconformance is discovered during further processing or loading, the original manufacturer who introduced the critical nonconformance shall bear responsibility for the nonconformance. i. The Government Quality Assurance Representative will perform the surveillance actions necessary to ensure compliance with this clause. (End of clause) (ES7500) CONTINUATION SHEET REFERENCE NO. OF DOCUMENT BEING CONTINUED PAGE 23 OF 36 PIIN/SIIN W52P1J-04-C-0103 MOD/AMD NAME OF OFFEROR OR CONTRACTOR: VALENTEC SYSTEMS INC. SECTION F - DELIVERIES OR PERFORMANCE For Local Clauses See: http://www.afsc.army.mil/ac/aais/ioc/clauses/index.htm The following Federal Acquisition Regulation (FAR), DoD FAR Supplement clauses and provisions, the full text of which will be made available upon request, are incorporated herein by reference with the same force and effect as if set forth in full text. The text of the clauses incorporated by reference herein are available from the contract specialist indicated ir. block 7 of the Standard Form 33 or (as applicable) the contracting officer and will be furnished upon request. Other documents are available as indicated in the schedule. Any company/individual wishing to purchase a copy of the Federal Acquisition Regulation (FAR), the Army FAR Supplement or the DOD FAR Supplement, may do so from the Superintendent of Documents, US Government Printing Office, Washington DC 20402. (FA7001)
Regulatory Cite Title Date --------------- ----------------------------------------------------------------- -------- F-l 52.242-17 GOVERNMENT DELAY OF WORK APR/1984 F-2 52.247-29 F.O.B. ORIGIN JUN/1988 F-3 52 .247-58 LOADING, BLOCKING, AND BRACING OF FREIGHT CAR SHIPMENTS APR/1984 F-4 52 .247-59 F.O.B. ORIGIN - CARLOAD AND TRUCKLOAD SHIPMENTS APR/1984 F-5 52.247-61 F.O.B. ORIGIN-MINIMUM SIZE OF SHIPMENTS APR/1984 F ###-###-#### TRANSPORTATION OF SUPPLIES BY SEA MAY/2002 DFARS F ###-###-#### TRANSPORTATION SECURITY REQUIREMENTS FOR CONTRACTOR-TO-CONTRACTOR MAR/2004 LOCAL SHIPMENTS
(a) Supplies procured or furnished under this contract/subcontract, which are shipped between two or more contractors, and which are qualified as sensitive in accordance with DoD 5100.76-M (Physical Security of Sensitive Conventional Arms, Ammunition, and Explosives), or are shipped as DOT Class A or B Explosives, require special Transportation Protective Service (TPS) during shipment from all points of origin to all destinations. TPS will be equivalent to the DoD security standard for the applicable sensitive category or explosive class identified under DoD 4500.9R, Defense Transportation Regulation, parts II and III, as added to or amended by applicable military service policies in accordance with guidance provided by Defense Logistics Agency (DLA)/Defense Contract Management Agency (DCMA) (b) Shipper's Defense Contract Management Agency (DCMA) transportation offices will furnish assistance in providing the sensitive category of items to be shipped, determining the TPS required, and obtaining the TPS from commercial carriers as necessary. (c) This clause must be entered in all contracts/subcontracts at any tier. (End of clause) (FS OF 115) ~~F ###-###-#### COGNIZANT TRANSPORTATION OFFICER MAY/1993 LOCAL~~

(a) The contract administration office designated at the time of contract award, or the office servicing the point of shipment if subsequently designated by the original office, will be the contact point to which the contractor will: (1) Submit, as necessary, DD Form 1659, Application for U.S. Government Bill(s) of Lading/Export Traffic Release, in triplicate at least ten days prior to date supplies will be available for shipment; (2) Obtain shipping instructions as necessary for F.O.B. Origin delivery, and (3) Furnish necessary information for MILSTRIP/MILSTAMP or other shipment documentation and movement control, including air and water terminal clearances. (4) For FMS, at least ten days in advance of actual shipping date the contractor should request verification of "Ship to" and "Notification" address from the appropriate DCMAO. (b) The contract administration office will provide to the contractor data necessary for shipment marking and freight routing. CONTINUATION SHEET REFERENCE NO. OF DOCUMENT BEING CONTINUED PAGE 24 OF 36 PIIN/SIIN W52P1J-04-C-0103 MOD/AMD NAME OF OFFEROR OR CONTRACTOR: VALENTEC SYSTEMS INC. (c) The contractor shall not ship directly to a military air or water port terminal without authorization by the designated point of contact. (End of clause) (FS7240) ~~F-9 47.305-15(B) SPECIAL TRANSPORT/LOADING REQUIREMENTS (HAZARDOUS) FEB/1996 LOCAL~~

(a) In addition to requirements set forth under General Provision, "Loading, Bracing, and Blocking of Freight Car Shipments," rail shipments will be loaded, blocked and braced in accordance with rules and methods contained in the current editions of Uniform Freight Classification, Association of American Railroads Pamphlet No. 14, Circular 42G and Rules Governing Loading of Commodities on Open Top Cars, Bureau of Explosives Tariff No. BOE 6000 publishing Hazardous Materials Regulations of the Department of Transportation, and Bureau of Explosives Pamphlets No. 6, 6A as applicable. Uniform Freight Classification may be procured from the regulatory classification agent covering territory from which shipment will be made. AAR Pamphlets, Circular and Rules may be procured from the Bureau of Explosives, 59 E. Van Buren St., Chicago, IL 60605. Bureau of Explosives Tariff No. BOE 6000 and Burea of Explosives pamphlets may be procured from the Burea of Explosives, Association of American Railroads, 1920 L Street, Washington,D.C. 20036. U.S. Army Defense Ammunition Center (USADAC) approved drawings contained within Index of U.S. Army Unitization, Storage and Outloading Drawings for Ammunition and Components is specifically applicable to rail loading, blocking and bracing of this item and may be secured by the Contracting Officer or the Defense Contract Management Agency (DCMA) . (b) Truck shipments will be loaded, blocked and braced in accordance with rules and methods contained in the current editions of National Motor Freight Classification and American Trucking Association, Inc., Motor Carrier's Explosives and Dangerous Articles Tariff, as applicable and effective at the time of shipment. These publications may be procured from the American Trucking Association, Inc., Tariff Order Section, 1616 2 St., N.W., Washington, D.C. 20036. USADACS approved drawings contained within Index of U.S. Army Unitization, Storage and Outloading Drawings for Ammunition and Components is specifically applicable to motor, loading, blocking and bracing of this item and can be secured from the Contracting Officer or DCMA. (c) TOFC "Piggyback" shipments will be loaded, blocked and braced in accordance with Bureau of Explosives Pamphlet No. 6C or AAR Circular NO. 43, copies may be obtained from addresses given in para (a) above. USADAC approved drawings contained within Index of U.S. Army Unitization, Storage and Outloading Drawings for Ammunition and Components is specifically applicable to loading, blocking and bracing for TOFC shipments and may be obtained from the Contracting Officer or DCMA. (d) Container shipments will be loaded, blocked and braced in accordance with USADAC drawings contained within Index of U.S. Army Unitization, Storage and Outloading Drawings for Ammunition and Components which is specifically applicable to loading, blocking and bracing of container shipments and may be secured from the Contracting Officer or the DCMA. Except as the carrier (s) may be liable, the contractor shall be liable to the Government for any loss or damage resulting from improper loading and/or furnishing and installing dunnage material by the contractor for shipments to be made under this contract. (End of clause) (FS7007) CONTINUATION SHEET REFERENCE NO. OF DOCUMENT BEING CONTINUED PAGE 25 OF 36 PIIN/SIIN W52P1J-04-C-0103 MOD/AMD NAME OF OFFEROR OR CONTRACTOR: VALENTEC SYSTEMS INC. SECTION G CONTRACT ADMINISTRATION DATA
PRON/ JOB LINE AMS CD/ OBLG ORDER ACCOUNTING OBLIGATED ITEM MIPR ACRN STAT ACCOUNTING CLASSIFICATION NUMBER STATION AMOUNT - ------- ------------ ---- ---- ------------------------------------------------------ ---------- ---------- ------------ ~~0001AB 4A3A0139M2 AA 2 21 32034000031B1B04P41303226EB S28017 3RMO98 W52P1J $ 701,533.36 41303222008 A13N4008HG4A ------------ TOTAL $ 701,533.36~~

SERVICE ACCOUNTING OBLIGATED NAME TOTAL BY ACRN ACCOUNTING CLASSIFICATION STATION AMOUNT - -------- ------------- -------------------------------------- ---------- ------------ ~~Army AA 21 32034000031B1B04P41303226EB S2B017 W52P1J $ 701,533.36 ------------ TOTAL $ 701,533.36~~
CONTINUATION SHEET REFERENCE NO. OF DOCUMENT BEING CONTINUED PAGE 26 OF 36 PIIN/SIIN W52P1J-04-C-0103 MOD/AMD NAME OF OFFEROR OR CONTRACTOR: VALENTEC SYSTEMS INC. SECTION H - SPECIAL CONTRACT REQUIREMENTS For Local Clauses See: http://www.afsc.army.mil/ac/aais/ioc/clauses/index.htm The following Federal Acquisition Regulation (FAR), DoD FAR Supplement clauses and provisions, the full text of which will be made available upon request, are incorporated herein by reference with the same force and effect as if set forth in full text. The text of the clauses incorporated by reference herein are available from the contract specialist indicated in block 7 of the Standard Form 33 or (as applicable) the contracting officer and will be furnished upon request. Other documents are available as indicated in the schedule. Any company/individual wishing to purchase a copy of the Federal Acquisition Regulation (FAR), the Army FAR Supplement or the DOD FAR Supplement, may do so from the Superintendent of Documents, US Government Printing Office, Washington DC 20402. (HA7001)
Regulatory Cite Title Date --------------- --------------------------------------------- -------- ~~H-l ###-###-#### NOTIFICATION OF TRANSPORTATION OF SUPPLIES BY SEA MAR/2000 DFARS H ###-###-#### GOVERNMENT FURNISHED PROPERTY OCT/1994 OSC~~
Schedule of Government Furnished Property (a) Pursuant to the Government Property clause in Section I of this contract, the Government shall furnish F.O.B. contractor's place of performance, the Government-owned property listed in attachment number 013 of this document for use in the performance of this contract. (b) The property shall be delivered in accordance with the schedule set forth in attachment number 013 of this document. (c) If the property is not received in accordance with the schedule set forth in attachment number 013 of this document, the Contractor shall immediately notify the Contracting Officer in writing. (d) The quantity of Government Furnished Material (GFM) which is offered herein is contingent upon award of the total quantity solicited herein. should the actual quantity awarded be less than the total quantity solicited, the Government retains the right to unilaterally reduce the quantity of GFM which will be provided under any resultant contract. Any said reduction shall be on a pro-rata basis. (End of Clause) (HS6075) ~~H-3 246.671 LOCAL MATERIAL INSPECTION AND RECEIVING REPORTS (DD FORM 250) JAN/1995~~

Material Inspection and Receiving Report (DD Form 250), required to be prepared and furnised to the Government under the clause of this contract entitled 'Material Inspection and Receiving Report', will be distributed by the Contractor in accordance with DOD FAR Supplement Appendix F, Part 4. Send copies to: 1. Purchasing Office Mr. Gene Harrison HQ, AFSC, AMSFS-CCA-L Rock Island, IL ###-###-#### 2. Production Management Ms. Jennifer Petersen HQ, JMC, SFSJM-CDM Rock Island, IL ###-###-#### CONTINUATION SHEET REFERENCE NO. OF DOCUMENT BEING CONTINUED PAGE 27 OF 36 PIIN/SIIN W52P1J-04-C-0103 MOD/AMD NAME OF OFFEROR OR CONTRACTOR: VALENTEC SYSTEMS INC. (End of clause) (HA6025) ~~H-4 ###-###-####(B) INSTRUCTIONS FOR PREPARATION AND SUBMISSION OF PRODUCTION PROGRESS JUN/1996 LOCAL REPORTS OF DELAYS IN DELIVERY~~

a. Production Progress Report (DD Form 375) and Production Progress Report Continuation (DD Form 375c) shall be prepared in accordance with instructions thereon. These forms shall be submitted as required for each separate contract item (identified by noun description not by line item number). The remarks section will provide process-oriented information where relevant to the delay. b. The contractor shall promptly submit a DD Form 375 reporting any delay in the scheduled delivery or completion as soon as known or anticipated. In addition, the form(s) shall be submitted on a monthly basis within 2 work days after each reporting period, beginning with the end of the first full month following the initial report submission and continuing until contract completion/termination. The forms shall be distributed as follows:
ACTIVITY ADDRESS NO. OF COPIES - --------------------------- --------------------------- -------------- ~~Purchasing office (PCO) See Award document. 1 Administration Office (ACO) 3 Production Manager MS. Jennifer Petersen 1 HQ, JMC, SFSJM - CDM Rock Island, IL ###-###-####~~
(End of clause) (HS6028) ~~H ###-###-#### PLACE OF CONTRACT SHIPPING POINT, RAIL INFORMATION MAY/1993 OSC~~

The bidder/offeror is to fill in the 'Shipped From' address, if different from 'Place of Performance' indicated elsewhere in this section. Shipped From: __________________________ __________________________ __________________________ For contracts involving F.O.B. Origin shipments furnish the following rail information: Does Shipping Point have a private railroad siding//// ______ YES _____ NO If YES, give name of rail carrier serving it: ______________________ If NO, give name and address of nearest rail freight station and carrier serving it: Rail Freight Station Name and Address: __________________ Serving Carrier: ____________________ (End of Clause) (HS7600) CONTINUATION SHEET REFERENCE NO. OF DOCUMENT BEING CONTINUED PAGE 28 OF 36 PIIN/SIIN W52P1J-04-C-0103 MOD/AMD NAME OF OFFEROR OR CONTRACTOR: VALENTEC SYSTEMS INC. SECTION I - CONTRACT CLAUSES For Local Clauses See: http://www.afsc.army.mil/ac/aais/ioc/clauses/index.htm
Regulatory Cite Title Date --------------- -------------------------------------------------------------------------------- -------- I-1 52.202-1 DEFINITIONS DEC/2001 I-2 52.203-3 GRATUITIES APR/1984 I-3 52.203.5 COVENANT AGAINST CONTINGENT FEES APR/1984 I-4 52 203.6 RESTRICTIONS ON SUBCONTRACTOR SALES TO THE GOVERNMENT JUL/1995 I-2 52.203-7 ANTI - KICKBACK PROCEDURES JUL/1995 I-6 52.203-8 CANCELLATION, RESCISSION, AND RECOVERY OF FUNDS FOR ILLEGAL OR IMPROPER ACTIVITY JAN/1997 I-7 52.203-10 PRICE OR FEE ADJUSTMENT FOR ILLEGAL OR IMPROPER ACTIVITY JAN/1997 I-8 52.203-12 LIMITATION ON PAYMENTS TO INFLUENCE CERTAIN FEDERAL TRANSACTIONS JUN/2003 I-9 52.204-4 PRINTED OR COPIED DOUBLE-SIDED ON RECYCLED PAPER AUG/2000 I-10 52.204-7 CENTRAL CONTRACTOR REGISTRATION OCT/2003 I-11 52.209-6 PROTECTING THE GOVERNMENT'S INTEREST WHEN SUBCONTRACTING WITH CONTRACTORS DEBARRED, SUSPENDED, OR PROPOSED FOR DEBARMENT JUL/1995 I-12 52.211-5 MATERIAL REQUIREMENTS AUG/2000 I-13 52.211-15 DEFENSE PRIORITY AND ALLOCATION REQUIREMENTS SEP/1990 I-14 52.215-2 AUDIT AND RECORDS - NEGOTIATION JUN/1999 I-15 52.215-8 ORDER OF PRECEDENCE-UNIFORM CONTRACT FORMAT OCT/1997 I-16 52.215-14 INTEGRITY OF UNIT PRICES OCT/1997 I-17 52.219-6 NOTICE OF TOTAL SMALL BUSINESS SET-ASIDE JUN/2003 I-18 52.219-8 UTILIZATION OF SMALL BUSINESS CONCERNS MAY/2004 I-19 52.219-14 LIMITATIONS ON SUBCONTRACTING DEC/1996 I-20 52.222-19 CHILD LABOR-COOPERATION WITH AUTHORITIES AND REMEDIES JAN/2004 I-21 52.222-20 WALSH-HEALEY PUBLIC CONTRACTS ACT DEC/1996 I-22 52.222-26 EQUAL OPPORTUNITY APR/2002 I-23 52.222-35 EQUAL OPPORTUNITY FOR SPECIAL DISABLED VETERANS, VETERANS OF THE VIETNAM ERA, AND OTHER ELIGIBLE VETERANS DEC/2001 I-24 52.222-36 AFFIRMATIVE ACTION FOR WORKERS WITH DISABILITIES JUN/1998 I-25 52.222-37 EMPLOYMENT REPORTS ON SPECIAL DISABLED VETERANS, VETERANS OF THE VIETNAM ERA, AND OTHER ELIGIBLE VETERANS DEC/2001 I-26 52.223-6 DRUG-FREE WORKPLACE MAY/2001 I-27 52.229-3 FEDERAL, STATE, AND LOCAL TAXES APR/2003 I-28 52.232-1 PAYMENTS APR/1984 I-29 52.232-8 DISCOUNTS FOR PROMPT PAYMENT FEB/2002 I-30 52.232-11 EXTRAS APR/1984 I-31 52.232-16 PROGRESS PAYMENTS APR/2003 I-32 52.232-16 PROGRESS PAYMENTS (APR 2003) - ALTERNATE I MAR/2000 I-33 52.232-17 INTEREST JUN/1996 I-34 52.232-23 ASSIGNMENT OF CLAIMS JAN/1986 I-35 52.232-25 PROMPT PAYMENT OCT/2003 I-36 52.232-33 PAYMENT BY ELECTRONIC FUNDS TRANSFER - CENTRAL CONTRACTOR REGISTRATION OCT/2003 I-37 52.233-1 DISPUTES JUL/2002 I-38 52.233-3 PROTEST AFTER AWARD AUG/1996 I-39 52.242-12 REPORT OF SHIPMENT (REPSHIP) JUN/2003 I-40 52.242-13 BANKRUPTCY JUL/1995 1-41 52.243-1 CHANGES - FIXED PRICE AUG/1987 I-42 52.243-7 NOTIFICATION OF CHANGES APR/1984 I-43 52.246-1 CONTRACTOR INSPECTION REQUIREMENTS APR/1984 I-44 52.247-15 CONTRACTOR RESPONSIBILITY FOR LOADING AND UNLOADING APR/1984 I-45 52.247-63 PREFERENCE FOR U.S. - FLAG AIR CARRIERS JUN/2003 I-46 52.248-1 VALUE ENGINEERING FEB/2000 I-47 52.249-2 TERMINATION FOR CONVENIENCE OF THE GOVERNMENT (FIXED-PRICE) MAY/2004 I-48 52.249-8 DEFAULT (FIXED-PRICE SUPPLY AND SERVICE) APR/1984 I-49 52.253-1 COMPUTER GENERATED FORMS JAN/1991 1 ###-###-#### PROHIBITION ON PERSONS CONVICTED OF FRAUD OR OTHER DEFENSE - CONTRACT - RELATED FELONIES MAR/1999 I ###-###-#### CONTROL OF GOVERNMENT PERSONNEL WORK PRODUCT APR/1992 DFARS I ###-###-#### REQUIRED CENTRAL CONTRACTOR REGISTRATION NOV/2003
CONTINUATION SHEET REFERENCE NO. OF DOCUMENT BEING CONTINUED PAGE 29 OF 36 PIIN/SIIN W52P1J-04-C-0103 MOD/AMD NAME OF OFFEROR OR CONTRACTOR: VALENTEC SYSTEMS INC.
Requlatory Cite Title Date --------------- -------------------------------------------------------------------------------- -------- DFARS I ###-###-#### PROVISION OF INFORMATION TO COOPERATIVE AGREEMENT HOLDERS DEC/1991 DFARS I ###-###-#### ACQUISITION FROM SUBCONTRACTORS SUBJECT TO ON-SITE INSPECTION UNDER NOV/1995 DFARS THE INTERMEDIATE-RANGE NUCLEAR FORCES (INF) TREATY I ###-###-#### SAFETY PRECAUTIONS FOR AMMUNITION AND EXPLOSIVES MAY/1994 DFARS I ###-###-#### CHANGE IN PLACE OF PERFORMANCE-AMMUNITION AND EXPLOSIVES DEC/1991 DFARS I ###-###-#### PREFERENCE FOR CERTAIN DOMESTIC COMMODITIES MAY/2004 DFARS I ###-###-#### CORRESPONDENCE IN ENGLISH JUN/1997 DFARS I ###-###-#### UTILIZATION OF INDIAN ORGANIZATIONS, INDIAN-OWNED ECONOMIC ENTERPRISES, AND OCT/2003 NATIVE HAWAIIAN SMALL BUSINESS CONCERNS I ###-###-#### SUPPLEMENTAL COST PRINCIPLES DEC/1991 DFARS I ###-###-#### DOD PROGRESS PAYMENT RATES OCT/2001 DFARS I ###-###-#### POSTAWARD CONFERENCE DEC/1991 DFARS I ###-###-#### PRICING OF CONTRACT MODIFICATIONS DEC/1991 DFARS I ###-###-#### MATERIAL INSPECTION AND RECEIVING REPORT MAR/2003 DFARS I-65 204.404-70(C) ORAL ATTESTATION OF SECURITY RESPONSIBILITIES NOV/2001 I-66 52.217-6 EVALUATED OPTION FOR INCREASED QUANTITY MAR/1989
a. This solicitation includes an evaluated option (See Section M). b. The Government reserves the right to increase the quantity of item(s) CLIN 0001 by a quantity of up to and including but not exceeding 100 percent as an evaluated option at the price(s) quoted below. c. If the Contractor does not quote a price hereunder, the lowest price offered/bid in the Schedule for item(s) CLIN 0001 shall be the price used for evaluation/award of any option quantities. All evaluation factors identified in the solicitation, except F.O.B. origin transportation costs, will be applied to the option quantity for evaluation purposes. d. The Contracting Officer may exercise the evaluated option at any time preceding shipment of the last delivery by giving written notice to the Contractor. e. Delivery of the items added by exercise of this option shall continue immediately after, and at the same rate as delivery of like items called for under the contract, unless the parties agree otherwise. f. Subject to the limitations contained in this clause, the Government may exercise this option on one or more occasions. g. Offered Unit Prices for the Option Quantities are:
Unit Price --------------------- ~~Evaluated Option (F.O.B. Origin) $ CLIN 0001~~
Varying prices may be offered for the option quantities actually ordered and the dates when ordered. In as much as the unit price for the basic quantity may contain starting, load, testing, tooling, transportation or other costs not applicable to option quantities, offerors are requested to take these factors into consideration while setting forth the unit price(s) for the option quantities. The option price is expected (but not required) to be lower than the unit price for the initial quantity. (End of Clause) (IF6080) CONTINUATION SHEET REFERENCE NO. OF DOCUMENT BEING CONTINUED PAGE 30 OF 36 PIIN/SIIN W52P1J-04-C-0103 MOD/AMD NAME OF OFFEROR OR CONTRACTOR: VALENTEC SYSTEMS INC. ~~I-67 52.243-7 NOTIFICATION OF CHANGES APR/1984~~

(a) Definitions."Contracting Officer," as used in this clause, does not include any representative of the Contracting Officer. "Specifically Authorized Representative (SAR)," as used in this clause, means any person the Contracting Officer has so designated by written notice (a copy of which shall be provided to the Contractor) which shall refer to this paragraph and shall be issued to the designated representative before the SAR exercises such authority. (b) Notice. The primary purpose of this clause is to obtain prompt reporting of Government conduct that the Contractor considers to constitute a change to this contract. Except for changes identified as such in writing and signed by the Contracting Officer, the contractor shall notify the Administrative Contracting Officer in writing promptly, within_______ (to be negotiated) calendar days from the date that the Contractor identifies any Government conduct (including actions, inactions, and written or oral communications) that the Contractor regards as a change to the contract terms and conditions. On the basis of the most accurate information available to the Contractor, the notice shall state- (1) The date, nature, and circumstances of the conduct regarded as a change; (2) The name, function, and activity of each Government individual and Contractor official or employee involved in or knowledgeable about such conduct; (3) The identification of any documents and the substance of any oral communication involved in such conduct; (4) In the instance of alleged acceleration of scheduled performance or delivery, the basis upon which it arose; (5) The particular elements of contract performance for which the Contractor may seek an equitable adjustment under this clause, including- (i) What contract line items have been or may be affected by the alleged change; (ii) What labor or materials or both have been or may be added, deleted, or wasted by the alleged change; (iii) To the extent practicable, what delay and disruption in the manner and sequence of performance and effect on continued performance have been or may be caused by the alleged change; (iv) What adjustments to contract price, delivery schedule, and other provisions affected by the alleged change are estimated; and (6) The Contractor's estimate of the time by which the Government must respond to the Contractor's notice to minimize cost, delay or disruption of performance. (c) Continued performance. Following submission of the notice required by paragraph (b) of this clause, the Contractor shall diligently continue performance of this contract to the maximum extent possible in accordance with its terms and conditions as construed by the Contractor, unless the notice reports a direction of the Contracting Officer or a communication from a SAR of the Contracting Officer, in either of which events the Contractor shall continue performance; provided, however, that if the Contractor regards the direction or communication as a change as described in paragraph (b) of this clause, notice shall be given in the manner provided. All directions, communications interpretations, orders and similar actions of the SAR shall be reduced to writing promptly and copies furnished to the Contractor and to the Contracting Officer. The contracting Officer shall promptly countermand any action which exceeds the authority of the SAR. (d) Government response. The Contracting Officer shall promptly, within _______ (to be negotiated) calendar days after receipt of notice, respond to the notice in writing. In responding, the Contracting Officer shall either- (1) Confirm that the conduct of which the Contractor gave notice constitutes a change and when necessary direct the mode of further performance; (2) Countermand any communication regarded as a change; (3) Deny that the conduct of which the Contractor gave notice constitutes a change and when necessary direct the mode of further performance; or (4) In the event the Contractor's notice information is inadequate to make a decision under paragraphs (d)(1), (2), or (3) of this clause, advise the Contractor what additional information is required, and establish the date by which it should be furnished and the date thereafter by which the Government will respond. (e) Equitable adjustments. (1) If the Contracting Officer confirms that Government conduct effected a change as alleged by the Contractor, and the conduct causes an increase or decrease in the Contractor's cost of, or the time required for, performance of any part of the work under this contract, whether changed or not changed by such conduct, an equitable adjustment shall be made- (i) In the contract price or delivery schedule or both; and (ii) In such other provisions of the contract as may be affected. (2) The contract shall be modified in writing accordingly. In the case of drawings, designs or specifications which are defective and for which the Government is responsible, the equitable adjustment shall include the cost and time extension for delay reasonably incurred by the Contractor in attempting to comply with the defective drawings, designs or specifications before the Contractor identified, or reasonably should have identified, such defect. When the cost of property made obsolete or excess as a result of a change confirmed by the Contracting Officer under this clause is included in the equitable adjustment, the Contracting Officer shall have the right to prescribe the manner of disposition of the property. The equitable adjustment shall not include increased costs or time extensions for delay resulting from the Contractor's failure to provide notice or to continue performance as provided, respectively, in paragraphs (b) and (c) of this clause. CONTINUATION SHEET REFERENCE NO. OF DOCUMENT BEING CONTINUED PAGE 31 OF 36 PIIN/SIIN W52P1J-04-C-0103 MOD/AMD NAME OF OFFEROR OR CONTRACTOR: VALENTEC SYSTEMS INC. Note: The phrases "contract price" and "cost" wherever they appear in the clause, may be appropriately modified to apply to cost-reimbursement or incentive contracts, or to combinations thereof. (End of clause) (IF6250) ~~I-68 52.246-17 WARRANTY OF SUPPLIES OF A NONCOMPLEX NATURE JUN/2003~~

*** (b) Contractor's obligations. (1) Notwithstanding inspection and acceptance by the Government of supplies furnished under this contract, or any condition of this contract concerning the conclusiveness thereof, the Contractor warrants that for 1095 days after acceptance--- *** (c) Remedies available to the Government. (l) The Contracting Officer shall give written notice to the Contractor of any breach of warranties in paragraph (b) (1) of this clause within 120 days after duscivert if tge defect(s), *** (End of clause) (IF6070) ~~I ###-###-#### SAFEGUARDING SENSITIVE CONVENTIONAL ARMS, AMMUNITION, AND EXPLOSIVES SEP/1999 DFARS~~

(a) Definition. Arms, ammunition, and explosives (AA&E) , as used in this clause, means those items within the scope (chapter 1, paragraph B) of DoD 5100.76-M, Physical Security of Sensitive Conventional Arms, Ammunition, and Explosives. (b) The requirements of DoD 5100.76-M apply to the following items of AA&E being developed, produced, manufactured, or purchased for the Government, or provided to the Contractor as Government-furnished property under this contract;
NOMENCLATURE NATIONAL STOCK NUMBER SENSITIVITY/CATEGORY ~~CTG 40MM WHITE STAR CLU ###-###-####-00 ###-###-#### IV M16 RIFLE 1005-01-128-9936 III M203 LAUNCHER 1010-00-179 6447 III M203 BARREL 1010 ###-###-#### III~~
(c) The Contractor shall comply with the requirements of DoD 5100.76-M, as specified in the statement of work. The edition of DoD 5100.76-M in effect on the date of issuance of the solicitation for this contract shall apply. (d) The Contractor shall allow representatives of the Defense Security Service (DSS), and representatives of other appropriate offices of the Government, access at all reasonable times into its facilities and those of its subcontractors, for the purpose of performing surveys, inspections, and investigations necessary to review compliance with the physical security standards applicable to this contract. (e) The Contractor shall notify the cognizant DSS field office of any subcontract involving AA&E within 10 days after award of the subcontract. (f) The Contractor shall ensure that the requirements of this clause are included in all subcontracts, at every tier (1) For the development, production, manufacture, or purchase of AA&E; or (2) When AA&E will be provided to the subcontractor as Government-furnished property. (g) Nothing in this clause shall relieve the Contractor of its responsibility for complying with applicable Federal, state, and local laws, ordinances, codes, and regulations (including requirements for obtaining licenses and permits) in connection with the performance of this contract. CONTINUATION SHEET REFERENCE NO. OF DOCUMENT BEING CONTINUED PAGE 32 OF 36 PIIN/SIIN W52P1J-04-C-0103 MOD/AMD NAME OF OFFEROR OR CONTRACTOR: VALENTEC SYSTEMS INC. (End of clause) (IA6200) ~~I-70 52.209-3 FIRST ARTICLE APPROVAL - CONTRACTOR TESTING SEP/1989~~

(a) The contractor shall test * unit(s) of Lot/Item * as specified in this contract. At least fifteen (15) calendar days before the beginning of first article tests, the Contractor shall notify the Contracting Officer, in writing, of the time and location of the testing so that the Government may witness the tests. (b) The Contractor shall submit the first article test report within 15 calendar days from the date of this contract to * marked "FIRST ARTICLE TEST REPORT: Contract No.___, Lot/Item No.___," Within thirty (30) calendar days after the Government receives the test report, the Contracting Officer shall notify the Contractor, in writing, of the conditional approval, approval, or disapproval of the first article; except that the number of days from receipt of the test report until the Contractor is notified shall be sixty (60) calendar days (instead of 30) when the option to perform confirmatory testing is exercised by the Government. The notice of conditional approval or approval shall not relieve the Contractor from complying with all requirements of the specifications and all other terms and conditions of this contract. A notice of conditional approval shall state any further action required of the Contractor. A notice of disapproval shall cite reasons for the disapproval. *** * (See instructions regarding submission of First Article clause) ** (See Schedule B) (End of Clause) (IF7018) ~~I-71 52.252-6 AUTHORIZED DEVIATIONS IN CLAUSES APR/1984~~

(a) The use in this solicitation or contract of any Federal Acquisition Regulation (48 CFR Chapter 1) clause with an authorized deviation is indicated by the addition of "(DEVIATION)" after the date of the clause. (b) The use in this solicitation or contract of any DOD FAR SUPPLEMENT (48 CFR Chapter 2) clause with an authorized deviation is indicated by the addition of "(DEVIATION)" after the name of the regulation. (End of clause) (IF7016) ~~I-72 252.211-7005 SUBSTITUTIONS FOR MILITARY OR FEDERAL SPECIFICATIONS AND STANDARDS FEB/2003 DFARS~~

(a) Definition. SPI process, as used in this clause, means a management or manufacturing process that has been accepted previously by the Department of Defense under the Single Process Initiative (SPI) for use in lieu of a specific military or Federal specification or standard at specific facilities. Under SPI, these processes are reviewed and accepted by a Management Council, which includes representatives of the Contractor, the Defense Contract Management Agency, the Defense Contract Audit Agency, and the military departments. (b) Offerers are encouraged to propose SPI processes in lieu of military or Federal specifications and standards cited in the solicitation. A listing of SPI processes accepted at specific facilities is available via the Internet in Excel format at http://www.dcma.mil/onebook/7.0/7.2./7.2.6/reports/modified. xls. (c) An offeror proposing to use an SPI process in lieu of military or Federal specifications or standards cited in the solicitation shall (1) Identify the specific military or Federal specification or standard for which the SPI process has been accepted; (2) Identify each facility at which the offerer proposes to use the specific SPI process in lieu of military or Federal specifications or standards cited in the solicitation; (3) Identify the contract line items, subline items, components, or elements affected by the SPI process; and (4) If the proposed SPI process has been accepted at the facility at which it is proposed for use but is not yet listed at the internet site specified in paragraph (b) of this clause, submit documentation of Department of Defense acceptance of the SPI process. CONTINUATION SHEET REFERENCE NO. OF DOCUMENT BEING CONTINUED PAGE 33 OF 36 PIIN/SIIN W52P1J-04-C-0103 MOD/AMD NAME OF OFFEROR OR CONTRACTOR: VALENTEC SYSTEMS INC. (d) Absent a determination that an SPI process is not acceptable for this procurement, the Contractor shall use the following SPI processes in lieu of military or Federal specifications or standards: (Offeror insert information for each SPI process) SPI Process: Facility. Military or Federal Specification or Standard: Affected Contract Line Item Number, Subline Item Number, Component, or Element: (e) If a prospective offeror wishes to obtain, prior to the time specified for receipt of offers, verification that an SPI process is an acceptable replacement for military or Federal specifications or standards required by the solicitation, the prospective Offeror (1) May submit the information required by paragraph (d) of this clause to the Contracting Officer prior to submission of an offer; but (2) Must submit the information to the Contracting Officer at least 10 working days prior to the date specified for receipt of offers. (End of clause) (IA7015) ~~I ###-###-#### BUY AMERICAN ACT AND BALANCE OF PAYMENTS PROGRAM APR/2003 DFARS~~

(a) Definitions. As used in this clause- (1) Component means an article, material, or supply incorporated directly into an end product. (2) Domestic end product means (i) An unmanufactured end product that has been mined or produced in the United States; or (ii) An end product manufactured in the United States if the cost of its qualifying country components and its components that are mined, produced, or manufactured in the United States exceeds 50 percent of the cost of all its components. The cost of components includes transportation costs to the place of incorporation into the end product and U.S. duty (whether or not a duty-free entry certificate is issued). Scrap generated, collected, and prepared for processing in the United States is considered domestic. A component is considered to have been mined, produced, or manufactured in the United States (regardless of its source in fact) if the end product in which it is incorporated is manufactured in the United States and the component is of a class or kind for which the Government has determined that (A) Sufficient and reasonably available commercial quantities of a satisfactory quality are not mined, produced, or manufactured in the United States; or (B) It is inconsistent with the public interest to apply the restrictions of the Buy American Act. (3) End product means those articles, materials, and supplies to be acquired under this contract for public use. (4) Foreign end product means an end product other than a domestic end product. (5) Qualifying country means any country set forth in subsection 225.872-1 of the Defense Federal Acquisition Regulation Supplement (DFARS). (6) Qualifying country component means a component mined, produced, or manufactured in a qualifying country. (7) Qualifying country end product means CONTINUATION SHEET REFERENCE NO. OF DOCUMENT BEING CONTINUED PAGE 34 OF 36 PIIN/SIIN W52P1J-04-C-0103 MOD/AMD NAME OF OFFEROR OR CONTRACTOR: VALENTEC SYSTEMS INC. (i) An unmanufactured end product mined or produced in a qualifying country, or (ii) An end product manufactured in a qualifying country if the cost of the following types of components exceeds 50 percent of the cost of all its components: (A) Components mined, produced, or manufactured in a qualifying country. (B) Components mined, produced, or manufactured in the United States. (C) Components of foreign origin of a class or kind for which the Government has determined that sufficient and reasonably available commercial quantities of a satisfactory quality are not mined, produced, or manufactured in the United States. (b)This clause implements the Buy American Act (41 U.S.C. Section 10a-d). Unless otherwise specified, this clause applies to all line items in the contract. (c)The Contractor shall deliver only domestic end products unless, in its offer, it specified delivery of other end products in the Buy American ActBalance of Payments Program Certificate provision of the solicitation. If the Contractor certified in its offer that it will deliver a qualifying country end product, the Contractor shall deliver a qualifying country end product or, at the Contractors option, a domestic end product. (d)The contract price does not include duty for end products or components for which the Contractor will claim duty-free entry. (End of clause) (IA7732) ~~I ###-###-#### REQUESTS FOR EQUITABLE ADJUSTMENT MAR/1998 DFARS~~

*** (b) In accordance with 10 U.S.C. 2410(a), any request for equitable adjustment to contract terms that exceeds the simplified acquisition threshold shall bear, at the time of submission, the following certificate executed by an individual authorized to certify the request on behalf of the Contractor: I certify that the request is made in good faith, and that the supporting data are accurate and complete to the best of my knowledge and belief. _______________________ (Official's Name) ________________________ (Title) *** (End of clause) (IA7035) ~~I ###-###-#### AUTHORITY OF GOVERNMENT REPRESENTATIVE FEB/1993 OSC~~

AUTHORITY OF GOVERNMENT REPRESENTATIVE ###-###-#### OSC (FEB 1993) The Contractor is advised that contract changes, such as engineering changes, will be authorized only by the Contracting Officer or his representative in accordance with the terms of the contract. No other Government representative, whether in the act of technical supervision or administration, is authorized to make any commitment CONTINUATION SHEET REFERENCE NO. OF DOCUMENT BEING CONTINUED PAGE 35 OF 36 PIIN/SIIN W52P1J-04-C-0103 MOD/AMD NAME OF OFFEROR OR CONTRACTOR: VALENTEC SYSTEMS INC. to the Contractor or to instruct the contractor to perform or terminate any work, or to incur any obligation. Project Engineers, Technical Supervisors and other groups are not authorized to make or otherwise direct changes which in any way affect the contractual relationship of the Government and the Contractor. (End of clause) (IS7025) CONTINUATION SHEET REFERENCE NO. OF DOCUMENT BEING CONTINUED PAGE 36 OF 36 PIIN/SIIN W52P1J-04-C-0103 MOD/AMD NAME OF OFFEROR OR CONTRACTOR: VALENTEC SYSTEMS INC. SECTION J - LIST OF ATTACHMENTS
List of Number Addenda Title Date of Pages Transmitted By - -------------- ----------------------------------------------------- --------- -------- -------------- Exhibit A CONTRACT DATA REQUIREMENT LIST 1423 19-MAY-04 Attachment 001 INSTRUCTIONS FOR COMPLETING DD FORM 1423 Attachment 002 GUIDANCE ON DOCUMENTATION OF CONTRACT REQUIREMENTS LIST (CDRL) Attachment 003 DATA DELIVERY DESCRIPTION REQUEST FOR DEVIATION Attachment 004 DATA DELIVERY DESCRIPTION - NOTICE OF REVISION (NOR) Attachment 005 DATA DELIVERY DESCRIPTION - ENGINEERING CHANGE PROPOSAL (ECP) Attachment 006 ADDRESS CODE FOR DISTRIBUTION FOR ECP/RFD/VECP/ Attachment 007 DOCUMENT SUMMARY LIST Attachment 008 ACCOUNTABILITY - STATEMENT OF WORK Attachment 009 DEFENSE PRIORITIES AND ALLOCATIONS Attachment 010 DISCLOSURE OF LOBBYING ACTIVITIES Attachment 011 AFSC FORM - WARNING LABEL Attachment 012 SECURITY - STATEMENT OF WORK Attachment 013 LIST AND SCHEDULE OF GFM 19-JUL-04 001 Attachment 014 DRAWING ###-###-#### Attachment 015 DRAWING ###-###-#### Attachment 016 PDF FILE FOR 40T8N - DESIGNED
PADDS ERRATA SHEET PAGE 1 PIIN/SIIN W52P1J-04-C-0103 MOD/AMD SECTION A - SUPPLEMENTAL INFORMATION ~~AUTO AS0100 ###-###-#### 01-JUN-2000 ARSENALS AS SUBCONTRACTORS LOCAL AUTO AM7010 AMC 01-DEC-2000 AMC- LEVEL PROTEST PROGRAM AUTO AS7001 ###-###-#### 01-SEP-1997 FULL TEXT CLAUSES LOCAL~~

SECTION C - DESCRIPTION/SPECIFICATIONS/WORK STATEMENT ~~CHANGED CS6100 ###-###-#### 01-MAR-1988 DRAWINGS/SPECIFICATIONS LOCAL~~

In addition to the drawing(s) and/or specifications listed below, other documents which are part of this procurement and which apply to Preservation/Packaging/Packing and Inspection and Acceptance are contained elsewhere. Engineering Exceptions: The following drawing(s) and specifications are applicable to this procurement. Drawings and Specifications in accordance with enclosed Technical Data Package Listing - TDPL ###-###-####:19203 with revisions in effect as of 08/07/2003 (except as follows): 1. 9209205 REV AB, SHEET 02 ADD: " DISTRIBUTION STATEMENT A. APPROVED FOR PUBLIC RELEASE; DISTRIBUTION IS UNLIMITED." 2. 9211788N NOTE 2(e) RESISTANCE TO LIGHT AND WATER SPRAY CHANGE FROM: " ASTM G23 " TO: " ASTM 5153 " 3. SPECIFICATIONS AND STANDARDS ADD: "ASTM G153 TO TDPL"
ADD: HCSDS Rev Date Nomenclature - --- ----- --- ------- ------------------------ 2 K 3/26/90 Pyrotechnic Comp. First Fire 3 F 5/1/91 Teranitrocarbazole (TNC) 5 E 5/1/91 Zirconium Hydride 8 E 5/3/91 Magnesium 12 E 11/23/92 Silicon Powder 19 G 4/13/95 Quickmatch 38 F 1/25/23 Potassium Nitrate 50 D 2/3/93 Tungsten Powder 102 C 7/6/81 Strontium Nitrate 322 B 8/21/79 Dechlorane (Perchloropentacyclodecane) 2298 1/14/88 Pyrotechnic Comp. Illum

DOCUMENT DELETE ADD - ----------------- ------ ----- 9211789 REV M ###-###-#### REV H REV J ###-###-#### REV Y REV AA ECP: R3J2059 SHEETS 3, 19 R3J2072 SHEETS 2, 3, 4 R2Y2004 SHEET 18 R3K3024 SHEET 2 SPEC: MIL-A-8625 1993 2003 MIL-P-25732 NOTICE 1 NOTICE 2 (2003) MIL-STD-130 REV K REV L (2003)
PADDS ERRATA SHEET PAGE 2 PIIN/SIIN W52P1J-04-C-0103 MOD/AMD ANSI-MH10.8.2 1995 2002 ASME-846.1 1995 2002 AMS-T-6736 1998 2003 ASTM-A108 1999 2003 ASTM-A313/A313M 1998 2003 ASTM-A641/A641M 1998 2003 ASTM B117 2002 2003 ASTM- ###-###-#### 2004 ASTM B211 2002 2003 ASTM-D2000 2001 2003 ASTM-D4727 1998 2003 ASTM-E18 2002 2003 ASTM-F1667 2002 2003

DWG ###-###-#### ADD: "DISTRIBUTION STATEMENT A. APPROVED FOR PUBLIC RELEASE; DISTRIBUTION IS UNLIMITED" DWG ###-###-#### (NOTE 5) - CALLOUT TO DWG ###-###-#### IS NOT APPLICABLE DWG_9207991 (NOTE 2) - SPEC MIL-S-6660 SHOULD BE SAE-AS8660 DWG ###-###-#### AND ###-###-#### - ASTM-D-2475, CLASS 26R3 IS TO BE USED IN LIEU OF C-F-206 MIL-P-48420 - DWG 13007972 IS TO BE USED IN LIEU OF. ADD: R3S2067 SHTS 18,19 FOR 13007972. ADD: "*" IN NOTE COLUMN FOR ALL NASM DWG ###-###-#### ADD "DX" IN NOTE COLUMN Spec AMS-T-WW-700/2, Orig 7/1/2001 IS TO BE USED IN LIEU OF WW-T-700/2 DWG ###-###-#### - ASTM-B211 IS TO BE USED IN LIEU OF QQ-A-225/3 DWG ###-###-#### - GSA A-A-3006 IS TO BE USED IN LIEU OF MM-A-179. A-A-3006 IS ALSO CANCELLED. NEED REPLACEMENT. DWG ###-###-#### - SOURCE UPDATED AS FOLLOWS: ATOCHEM IS NOW ATOFINA CHEMICALS INC. 2000 MARKET STREET PHILADELPHIA, PA 19103 ###-###-#### PART NO: LUPEROX DDM-9 WITCO IS NOW: CROMPTON CORPORATION 199 BENSON ROAD MIDDLEBURY, CT 06749 ###-###-#### PART NO: HI-POINT 90 AKZO CHEMIE IS AKZO NOBEL POLYMER CHEMICALS, LLC. NOW: 525 WEST VAN BUREN STREET CHICAGO, IL 60607-3823 ###-###-#### PART NO: CADOX M-50A ADD: "DISTRIBUTION STATEMENT A. APPROVED FOR PUBLIC RELEASE; DISTRIBUTION IS UNLIMITED." TO ALL INSPECTION DRAWING(S) / ASSOCIATED DOCUMENT(S) IN THIS TDP ADD: REVISION STATUS BLOCK TO SHEET 1 OF DWG. 8841348 DWG ###-###-#### - REICHOLD IS NO LONGER AN APPROVED SOURCE DWG ###-###-#### CID A-A-203 IS TO BE USED IN LIEU OF UU-P-268 PADDS ERRATA SHEET PAGE 3 PIIN/SIIN W52P1J-04-C-0103 MOD/AMD TDPL: DOCUMENT : ADD: - ----------- ------ 1948-4116 XX rev 08 1948-4116/26H XX rev 03 The following Government Acceptance Inspection Equipment (AIE) design drawings, cited elsewhere in the technical data, are appropriate for use during the performance of this contract to inspect the applicable characteristics: None All other Government AIE designs which are cited in the Technical Data Package List or in any other documents in the Technical Data Package are no longer maintained by the Government. These AIE may not reflect the latest component configuration and are, therefore, included for informational purposes only. The contractor is responsible for review of all AIE design documentation, other than those listed above, in accordance with Clause E-12 specified elsewhere in Section E of this contract. The contractor may elect to submit an alternative AIE design to the listed above but must submit an alternate AIE design to the Government for review and approval. (End of statement of work) (CS6100) ~~CHANGED CS6101 ###-###-#### 01-MAR-2004 STATEMENT OF WORK - TRANSPORTATION SECURITY REQUIREMENTS LOCAL~~

Supplies procured under this contract are identified as Sensative Category IV, requiring Transportation Protective Service (TPS) in accordance with DoD 5100.76M (Physical Security of Sensitive Conventional Arms, Ammunition, and Explosives) and DoD 4500.9R, Defense Transportation Regulation, parts II and III, as added to or amended by applicable military service policies in accordance with guidance provided by Defense Logistics Agency (DLA)/Defense Contract Management Agency (DCMA) or other components assigned to provide contract administration services (CAS) within designated/delegated geographic areas as specified under DOD 4105.59H, DOD Directory of Contract Administration Service Components, dated January 1985, and subsequent issues thereof for offshore/OCONUS procurements . (End of statement of work) (CS6101) ~~CHANGED CS7100 ###-###-#### 01-FEB-1999 STATEMENT OF WORK FOR STATISTICAL PROCESS CONTROL LOCAL~~

In accordance with DI-MGMT-80004 and contract clause ###-###-####, the following supplemental information shall be considered and used when designing your general and detailed SPC plans. 1.0 General Management Plan This section shall define management's SPC responsibilities and involvement and shall include management's commitment to continuous process improvement. The plan shall embrace a total commitment to quality and shall be capable of standing on its own merit. 1.l Policy/Scope: Describe the Contractor's policy for applying SPC, including goals and management commitment to SPC. 1.2 Applicable Document: List documents that are the basis for the contractor's SPC program (i.e., ANSI standard, textbooks, Government documents). 1.3 SPC Management Structure: Define the SPC management structure within the organization. Identify and include interrelationships of all departments involved in SPC (i.e., Production, Quality, Engineering, Purchasing, etc.). Identify by job title or position all key personnel within departments involved in the application of SPC. Describe which functions are performed by key personnel and when these functions are performed (i.e., include personnel responsible for performing inspections/audits, charting and interpreting data; PADDS ERRATA SHEET PAGE 4 PIIN/SIIN W52P1J-04-C-0103 MOD/AMD personnel responsible for determining, initiating and implementing corrective action upon detecting assignable causes, etc.). 1.4 SPC Training: Identify by job title or position the primary individual responsible for overseeing that SPC training is accomplished. Describe the qualification program required and in use for all personnel utilizing SPC techniques, including the qualification of trainers. Identify who is to be trained and the type, extent and length of such training (i.e., on-the-job, classroom, etc.). Identify when refresher training is required and how personnel using SPC techniques are monitored. 1.5 Manufacturing Controls: Identify the criteria for performing SPC gage capability studies and describe how and when these studies should be applied. Repeatability and accuracy of gages should be addressed. 1.6 Determination of SPC Use: Describe how the process/operation parameters are determined appropriate for SPC application and explain what actions are taken if SPC is not deemed appropriate for critical, special and major process/operation parameters (i.e., Pareto analysis, analysis of characteristics with tight tolerances, etc.). 1.7 Process Stability and Capability: a. Identify the criteria for performing process capability studies and describe how and when these studies are applied. Describe how the process capability index is calculated and include the frequency of these calculations. Describe what actions are taken as methodologies when process capability is for variable and attribute data. To determine a capable process, the process/operation parameters shall meet the following requirements: (1) Variable data: Process capability (Cp) shall be determined. Process performance index shall be greater than or equal to 1.33 (Cpk). For critical parameters/characteristics, the process performance index shall be greater than or equal to 2.0 (Cpk). (2) Attribute data: Process capability/performance shall be the percent beyond the upper/lower specification limit less than or equal to .003 percent (Cpk = 1.33). b. Describe what actions will be taken if process/operation is sub-marginal or marginal (Cpk less than 1.33 or 2.0 for criticals or grand average fraction defective is greater than .003 percent). c. Include analysis of statistical distributions and define all formulas and symbology utilized. 1.8 Control Chart Policy: a. Type of charts to be used (i.e., x bar/R x bar/S, etc.) and rationale for use; the criteria for selection of sample size, frequency of sampling and rational subgroups. b. Procedures for establishing and updating control limits, including frequency of adjustments. c. Criteria for determining out-of-control conditions (i.e., trends, points beyond control limits, etc.) and the corrective action taken, to include failure analysis when the process is unstable or when nonconforming product has resulted from unstable processes. Illustrate out-of-control tests. d. Describe the method of recording pertinent facts on control charts such as changes in raw material, machines, manufacturing methods and environment, and corrective actions taken and describe how control charts are traceable to the product. 1.9 Vendor/Subcontractor Purchase Controls: Identity whether suppliers are required to utilize SPC and describe the extent the vendor's policies and procedures are consistent with in-house procedures of the prime contractor. Describe the following: methods utilized to determine that suppliers have adequate controls to assure defective product is not produced and delivered; the system utilized to audit suppliers, what will be audited and how often, what action will be taken when out-of-control conditions exist as subcontractor/vendor facilities. 1.10 SPC Audit System: At a minimum, the contractor's SPC Audit System shall consist of auditing compliance with the planned arrangements specified in the general and detailed SPC plans followed by a review and analysis of the outcome to include implementation of necessary corrective action. 1.11 SPC Records: Identify various records to be used in support of SPC and describe their use. Identify retention periods. 2.0 Detailed Plan: This section shall detail specific manufacturing process/operation parameters under control. 2.1 Control of Process/Operation Parameters or Characteristics: PADDS ERRATA SHEET PAGE 5 PIIN/SIIN W52P1J-04-C-0103 MOD/AMD a. Identify the following for each process/operation by name or characteristic under control: (1) Identify process/operation by name or characteristic and provide rationale for selection; justification for nonselection if the parameter or characteristic is identified as critical, special and/or major. (2) Describe how the characteristic is produced; the chain of events, type and number of machines involved, location of manufacturing facility, tolerances maintained, etc. (3) Production and inspection machinery used. Include the production rate, number of shifts and length of shifts plus whether inspection is fully or semi-automatic or manual. If manual, identify the type of gages in use. (4) Identify the type of charts to be maintained and whether the process/operation is performed in-house or subcontracted out; identify facility/vendor where process/operation parameters are targeted for SPC. 2.2 Reduction or Elimination of Inspection/Test: The Procuring Contracting Officer (PCO) will accept submissions of requests for reduction or elimination of final acceptance inspection/testing when the requirements of the SPC contract clause and this SOW are met. Each request shall contain and/or address the following: control charts documenting twenty (20) consecutive production shifts or more for the same process/operation parameter under control; type of control chart utilized; control chart limits and process average or grand average fraction defective (as applicable); definition of out-of-control condition and corrective actions taken during out-of-control conditions; specification and part number. (End of statement of work) (CS7100) ~~CHANGED CS7200 ###-###-#### 01-AUG-2002 STATEMENT OF WORK - AMMUNITION DATA CARDS AND REPORT Or CONTRACTOR LOCAL BALLISTIC TESTING~~

Ammunition Data Cards shall be prepared in accordance with MIL-STD-1168 and shall follow the format required by the world wide web application identified as WARP or Worldwide Ammunition-data Repository Program. Additional details on WARP are provided below. Prior to gaining access to WARP contractor/facility personnel involved in the preparation of ammunition data cards shall obtain a user name and password for the Army Electronic product Support (AEPS) network. Instructions and help for obtaining access to AEPS are provided below: AEPS Access Procedures The Army Electronic Product Support (AEPS) is a Department of Defense logistics website. Entering AEPS will allow you access to the SECURED AREA of the Army Electronic Product Support Network. A username and password are required to enter this area. Only authorized DoD personnel and contractors with current active contracts with DoD will receive access into the AEPS website. If you have a requirement for the AEPS website, you must fill out and submit the AEPS Access Request Form found at the following web address: http://aeps.ria.army.mil/aepspublic.cfm You must click on "Access Request Form" and continue through the steps until completion and click on SUBMIT. You are required to provide a supervisor name, email and phone number if you are a DoD civilian or military. Government contractors are required to provide CAGE code, Contract Number and COR/COTR with "Government" email address. All requestors must provide their Information Assurance Security Officer's (IASO, formerly ISSO) name, email, DSN phone and commercial phone. After submitting the request, your supervisor/COR/COTR will be emailed a copy of your request and will be asked to verify your information before a user ID will be issued. AEPS User ID and AEPS Login Name mean the same. Your supervisor must REPLY back to the email providing the following: Approval? (YES/NO) Supervisor E-Mail Supervisor Phone Supervisor Name The COR/COTR must also provide the same information stated above in his/her REPLY plus provide the Contract Expiration Date (format - MM/DD/YYYY). Upon notification from your supervisor/COR/COTR, you will be emailed an AEPS User Login Name and instructions for logging into the AEPS website. You will use the AEPS password that you assigned to yourself when you filled out the access request form. PADDS ERRATA SHEET PAGE 6 PIIN/SIIN W52P1J-04-C-0103 MOD/AMD Once you gain access to the AEPS website, you can change your personal information when needed to keep your file current. AEPS HELP-DESK and Problem Reporting Procedures Reporting Problems - The AEPS Help Desk has several means of reporting problems: Call 1-888-LOG-HELP (1 ###-###-####) to speak to an AEPS representative Contact the AEPS Help-Desk at Comm. (309) 782-0699 or DSN ###-###-#### or ###-###-#### or DSN ###-###-#### Contact the AEPS Help-Desk by FAX: (309) 782-1426 or DSN ###-###-#### Contact the AEPS Webmaster by Email: webmaster ***@***) Each phone call, email or fax is handled in a prompt and courteous manner. Responses to problems are provided by phone and/or email. Other means to help assist you in identifying your problems can be found on the AEPS Help Section at web link: http://aeps./ria.army.mil/help.cfm Here you will find Questions and Answers by clicking in either of the two FAQ subcategories reflected under the HELP tab: FAQs - AEPS Access Request Process or SSL FAQs - Secured Socket Layer You may also check out our new Frequently Asked Questions (https://aeps.ria.army.mi1/aepsqa.cfm) page to get answers on access problems as another means of assistance. The AEPS Help Section screen http://aeps.ria.army.mil/help.cfm also reflects two other topics that can be clicked on to provide further assistance: "Password Problems or Request Status" at https://aeps.ria.army.mil/request/info/UserScreen.cfm "Ask the AEPS Public Help Knowledge Base" at http://aeps,ria.army.mil/help/aepshelpmain.cfm Worldwide Ammunition-data Repository Program (WARP) Once you have obtained an AEPS user name and password allowing entry to the secured area of AEPS you can access the WARP application by scrolling to the bottom of the list of AEPS applications. The WARP opening main page and all subsequent pages contain multiple navigational aids to guide you through the process of inputting information necessary for creating a new ammunition data card. An online users manual will provide additional help in the development of an ammunition data card and it is recommended that you download and read the users manual prior to inputting your initial data card. The user's manual also contains screen shots, which depict what the inputter will see during the ADC input process. Ammunition Data Card Input ADC input allows current contractors and government facilities the capability to create, and submit for approval, ADCs which meet the format requirement of MIL-STD-1168B, ADCs are automatically forwarded to the respective Governmental Agency Responsible for Acceptance (GARA). The GARA, in most cases the Defense Contract Management Agency (DCMA) Quality Assurance Representative (QAR), reviews contractor input for accuracy and completeness, and after updating the disposition code for the specific lot, submits the ADC to the database. The inputter is granted access only to ADCs identified with its specific manufacturing code, as identified in MIL-HDBK-1461A, Manufacturer's Symbols. The use of previously inputted ADCs through the TEMPLATE option, significantly reduces input effort, while increasing accuracy and consistency of data. Email Notification HARP provides immediate, automated notification to process participants when actions are required. When the producer has completed an ADC submission, an email message is routed to the GARA advising that an ADC awaits review and approval. If the GARA approves the ADC as submitted, the ADC is released to the base and an email, with approved data card, is routed back to the originator, If the ADC requires modification or correction to be in accordance with MIL-STD-1168B requirements, an email is provided to the ADC originator advising that corrective action is required prior to approval. Information Updates It is important that the System Administrators are apprised when a producer receives a new contract. The producer shall notify ***@*** within 30 days after receipt of a new contract. Information to be included shall be the contract number, item, GARA, Manufacturer's identification symbol and the names of the individuals who will be inputting ADCs into the system. If you are a new producer and do not have a Manufacturer's identification symbol, you can obtain one by sending an email to ***@***. The email must contain manufacturer's name, address where performance of the contract will take place, and a point of contact. PADDS ERRATA SHEET PAGE 7 PIIN/SIIN W52P1J-04-C-0103 MOD/AMD (End of statement of work) (CS7200) ~~AUTO CS7600 ###-###-#### 01-MAY-2001 CONFIGURATION MANAGEMENT DOCUMENTATION LOCAL~~

SECTION D - PACKAGING AND MARKING ~~CHANGED DS6303 52.211-4508 (01-JUL-1997 PACKAGING REQUIREMENTS LOCAL~~

Packaging shall be in accordance with ###-###-#### revision AC, dated 2 JULY 2003. When lot numbering is required, no more than one lot shall be packaged in an outer shipping container. Marking shall be in accordance with ###-###-####, REV AC DATED 2 JULY 2003. 2-D bar code marking is required in accordance with ###-###-####, Rev BL, dated 1 MAY 2003. EXCEPTION: PERFORMANCE ORIENTATED PACKAGING (POP) VERIFICATION: In no case shall a container be shipped if the gross weight marked on the package is greater than the POP certified weight. If the average gross weight of the packed containers (determined by weighing two representative samples and averaging the weight) is greater than the certified weight, container marking operations shall cease and the procuring activity shall be contacted immediately. EXCEPTION TO PERFORMANCE ORIENTED PACKAGING (POP) MARKINGS: If manufactured outside the USA, contractor shall not apply the UN POP certification marking provided on drawing ###-###-####. Contractors (outside the USA) are responsible to perform UN POP tests on packaging requirements provided in this contract and apply UN POP certification marking authorized by the Competent Authority of the State (country) of manufacture. Heat treat requirements for all non-manufactured wood used in packaging applies to this contract. See ###-###-####, Note L. ECP R3K3015 applies to MIL-B-46506. In addition, foreign manufacturers shall have the heat treatment of non-manufactured wood products verified in accordance with their National Plant Protection Organization's compliance program. METALLIC SEAL: Use ###-###-#### Rev "AB" in lieu of Rev "AC". (End of clause) (DS6303) ~~CHANGED DS6204 ###-###-#### 01-MAR-1992 PALLETIZATION INSTRUCTION LOCAL~~

Palletization shall be in accordance with 19-48-4116/26H, revision 3, dated NOV 2002 and 19-48-4116, Rev 8, dated June 2003. Marking shall be in accordance with ACV00561, Rev B, dated 1 April 2002. ECP R3K3017 and ECP R3K3024 apply to ACV00561. 19-48-4116/18 does not apply to this procurement. (End of clause) (DS6204) SECTION E - INSPECTION AND ACCEPTANCE ~~AUTO EF0001 52.246-2 01-AUG-1996 INSPECTION OF SUPPLIES-FIXED-PRICE DELETED EF0002 52.246-2 01-JUL-1995 INSPECTION OF SUPPLIES-FIXED-PRICE (AUG 1996) - ALTERNATE I~~

PADDS ERRATA SHEET PAGE 8 PIIN/SIIN W52P1J-04-C-0103 MOD/AMD DELETED EF0003 52.246-2 01-JUL-1985 INSPECTION OF SUPPLIES-FIXED-PRICE (AUG1996) - ALTERNATE II DELETED EF0008 52.246-3 01-MAY-2001 INSPECTION OF SUPPLIES-COST-REIMBURSEMENT AUTO EF0007 52.246-16 01-APR-1984 RESPONSIBILITY FOR SUPPLIES CHANGED ES6031 ###-###-#### 01-MAY-1994 FIRST ARTICLE TEST (CONTRACTOR TESTING) LOCAL

a. The first article shall consist of: FAT shall consist of those items and quantities as cited in current Item SPEC MIL-C-5059A with amendment 1. Also, all samples of each component, subassembly and assembly are to be 100% inspected for unlisted characteristics. which shall be examined and tested in accordance with contract requirements, the item specifications), Quality Assurance Provisions (QAPS) and all drawings listed in the Technical Data Package. b. The first article shall be representative of items to be manufactured using the same processes and procedures and at the same facility as contract production. All parts and materials, including packaging and packing, shall be obtained from the same source of supply as will be used during regular production. All components, subassemblies, and assemblies in the first article sample shall have been produced by the Contractor (including subcontractors) using the technical data package provided by the Government. c. The first article shall be inspected and tested by the contractor for all requirements of the drawing(s), the QAPs, and specifications) referenced thereon, except for: (1) Inspections and tests contained in material specifications provided that the required inspection and tests have been performed previously and certificates of conformance are submitted with the First Article Test Report. (2) Inspections and tests for Military Standard (MS) components and parts provided that inspection and tests have been performed previously and certifications for the components and parts are submitted with the First Article Test Report. (3) Corrosion resistance tests over 10 days in length provided that a test specimen or sample representing the same process has successfully passed the same test within 30 days prior to processing the first article, and results of the tests are submitted with the First Article Test Report. (4) Life cycle tests over 10 days in length provided that the sane or similar items manufactured using the same processes have successfully passed the same test within 1 year prior to processing the first article and results of the tests are submitted with the First Article Test Report. (5) Onetime qualification tests, which are defined as a onetime on the drawing(s), provided that the same or similar item manufactured using the same processes has successfully passed the tests, and results of the test are on file at the contractor's facility and certifications are submitted with the First Article Test Report. d. The Contractor shall provide to the Contracting Officer at least 15 calendar days advance notice of the scheduled date for final inspection and test of the first article. Those inspections which are of a destructive nature shall be performed upon additional sample parts selected from the same lot(s) or batch(es) from which the first article was selected. e. A First Article Test Report shall be compiled by the contractor documenting the results of all inspections and tests (including supplier's and Vendor's inspection records and certifications, when applicable). The First Article Test Report shall include actual inspection and test results to include all measurements, recorded test data, and certifications (if applicable) keyed to each drawing, specification and QAP requirement and identified by each individual QAP characteristic, drawing/specification characteristic and unlisted characteristic. The Government Quality Assurance Representative's (QAR) findings shall be documented or DD Form 1222, Request for and Results of Tests, and attached to the contractor's test report. Two copies of the First Article Test Report and the DD Form 1222 will be submitted through the Administrative Contracting Officer to the Contracting Officer with an additional information copy furnished to QAR to SFSJM-CDM, PQM to PCO. f. Notwithstanding the provisions for waiver of first article, an additional first article sample or portion thereof, may be ordered by the Contracting Officer in writing when (i) a major change is made to the technical data, (ii) whenever there is a lapse in production for a period in excess of 90 days, or (iii) Whenever a change occurs in place of performance, manufacturing process, material used, drawing, specification or source of supply. When conditions (i), (ii), or (iii) above occurs, the Contractor shall notify the Contracting Officer so that a determination can be made concerning the need for the additional first article sample or portion thereof, and instructions provided concerning the submission, inspection, and notification of results. Costs of the first article testing resulting from production process change, change in the place of performance, or material substitution shall be borne by the Contractor. (End of clause) PADDS ERRATA SHEET PAGE 9 PIIN/SIIN W52P1J-04-C-0103 MOD/AMD (ES6031) ~~CHANGED ES6115 ###-###-#### 01-JAN-1995 GOVERNMENT FURNISHED TEST SUPPORT EQUIPMENT LOCAL~~

The Government will furnish the following test equipment to support First Article, Reliability, and/or Acceptance Tests. The Contractor will submit a written request for this property to the Contracting Officer no later than thirty (30) days prior to the desired delivery date.
(a) Item National Cost Unit of Nomenclature Stock Number Quantity Each Issue ~~M16 Rifle NSN: 1005-01-128-9936 1 N/A EACH M203 Launcher NSN: 1010-00-179-6447 2 M203 Barrel NSN: 1010 ###-###-#### 6~~
(b) Estimated Weight: N/A pounds. (c) Cube: N/A cu. ft. (End of clause) (ES6115) ~~CHANGED ES6001 52.246-11 01-FEB-2004 HIGHER-LEVEL CONTRACT QUALITY REQUIREMENT LOCAL~~

(a) Definition. "Contract date", as used in this clause, means the date set for bid opening; or if this is a negotiated contract or a modification, the effective date of this contract or modification. (b) The Contractor shall comply with: ( ) ISO 9002 (X) ISO 9001-2000; only design/development exclusions permitted ( ) ISO 9001-2000; no exclusions permitted or an alterate program/system approved by the activity listed in block 7 of the Standard Form 33, in effect on the contract date and which is hereby incorporated into this contract. (End of clause) (ES6001) ~~CHANGED ES6034 ###-###-#### 01-FEB-2004 STATISTICAL PROCESS CONTROL (SPC) LOCAL~~

a. In addition to the quality requirements of the technical data package, the Contractor shall implement Statistical Process Control (SPC) in accordance with a government accepted SPC Program Plan. Control chart techniques shall be in accordance with the American National Standards Institute (ANSI) B1, B2 and B3. Alternate SPC charting methods may be proposed and submitted to the Government for review. b. The SPC Program Plan developed by the contractor shall consist of a general plan and a detailed plan. The plans shall be structured as delineated on the Data Item Description referenced in the DD Form 1423. The general and the detailed plans shall be submitted to the government for review per DD Form 1423 requirements. Notification by the Government of acceptance or nonacceptance of the plans shall be provided in accordance with the timeframes specified on the DD Form 1423. Once a general plan for a facility has been approved by this Command, the approval remains in effect for subsequent contracts as long as the contractual requirements remain substantially unchanged from contract to contract. Therefore, resubmission of a previously accepted general SPC plan is not required if current SPC contract clause and Data Item Description (DID) requirements are fulfilled. If this Command has previously accepted the general SPC plan under essentially the same SPC contractual requirements, so indicate by providing the Contracting Officer with the PADDS ERRATA SHEET PAGE 10 PIIN/SIIN W52P1J-04-C-0103 MOD/AMD following information: Date of Acceptance ____________ Contract Number(s) ____________ c. The contractor is responsible for updating the general plan to current SPC contractual requirements. If errors or omissions are encountered in a previously accepted SPC general plan, opportunities for improvement will be identified by the Government, and corrective action shall be accomplished by the contractor. d. A milestone schedule will be submitted for those facilities who do not have, or have never had, a fully implemented SPC program and will not have a fully operational SPC program once production is initiated. The milestones shall provide a time phased schedule of all efforts planned relative to implementation of an SPC program acceptable to the Government. A milestone schedule shall include implementation start and complete dates for those SPC subjects addressed in the Statistical Process Control Statement of Work located in Section C. The milestone schedule shall only include those actions that can not be accomplished prior to first article or the initiation of production, if a first article is not required. Milestones shall be developed for each commodity identified for SPC application. Milestones shall be submitted through the Government Quality Assurance Representative to the Contracting Officer for review and acceptance. Any deviations from the accepted milestones, to include justification for such deviations, shall be resubmitted through the same channels for review. The Government reserves the right to disapprove any changes to the previously accepted milestones. Notification by the Government of the acceptance or nonacceptance of the milestones shall be furnished to the Contractor by the Contracting Officer. e. The Contractor shall review all process and operation parameters for possible application of SPC techniques. This review shall include processes and operations under the control of the prime contractor and those under the control of subcontractor or vendor facilities. A written justification shall be included in the detailed plan for each process and operation parameter that controls or influences characteristics identified as critical, special, or major which have been deemed impractical for the application of SPC techniques. A pamphlet on application of SPC for short production runs is available through the Contracting Officer. f. Statistical evidence in the form of control charts shall be prepared and maintained for each process or operation parameter identified in the detailed plan. These charts shall identify all corrective actions taken on statistical signal. During production runs, control charts shall be maintained in such a manner to assure product is traceable to the control charts. At the conclusion of the production run, a collection of charts traceable to the product, shall be maintained for a minimum of 3 years. The control charts shall be provided to the Government for review at any time upon request. | g. When the process or operation parameter under control has demonstrated both stability and capability, the Contractor shall request, in writing, through Administrative Contracting Officer (ACO) and Contracting Officer (CO) channels to the Product Assurance and Test Directorate, that acceptance inspection or testing performed in accordance with contract requirements be reduced or eliminated. Upon approval by the CO, acceptance shall then be based upon the accepted SPC plan, procedures, practices and the control charts. h. The Government will not consider requests for reduction or elimination of 100% acceptance inspection and testing of parameters or characteristics identified as critical in the technical data package, specifications or drawings of this contract if any one of the following conditions exist: (1) The existing process currently utilizes a fully automated, cost effective, and sufficiently reliable method of 100% acceptance inspection or testing for an attribute-type critical parameter or characteristic. (2) The Contractor utilizes attribute SPC control chart methods for the critical parameter or characteristic. (3) The critical parameter or characteristic is a first order, single point safety failure mode (nonconformance of the critical parameter or characteristic in and of itself would cause a catastrophic failure). i. The Government will only consider reduction or elimination of the 100% acceptance inspection or test requirement for other critical parameters or characteristics if either of the following conditions are met: (1) The process is in a state of statistical control utilizing variable control chart methods for the critical parameter or characteristic under control and the process performance index (Cpk) is at least 2.0. The Contractor shall maintain objective quality evidence through periodic audits that the process performance index is being maintained for each production delivery. (2) The critical parameter or characteristic is conclusively shown to be completely controlled by one or more process or operation parameters earlier in the process, and those parameters are in a state of statistical control utilizing variable data, and the product of the probability of the conformance for each earlier parameter associated to the critical characteristic is better than or equal to a value equivalent to that provided by a Cpk of at least 2.0. The Contractor shall maintain objective quality evidence through periodic audits that the process performance indexes are being maintained for each production delivery. j. For characteristics other than critical, requests for reduction or elimination of acceptance inspection and testing shall be PADDS ERRATA SHEET PAGE 11 PIIN/SIIN W52P1J-04-C-0103 MOD/AMD considered when the process performance index is greater than or equal to a Cpk of 1.33 for variables data. Requests shall be considered for attributes data when the percent beyond the specification limits is less than or equal to .003 (Cpk=l.33). k. Process or operation parameters under reduced or eliminated inspection or testing that undergo a break in production less than 6 months in length, may continue to operate under reduced or eliminated inspection or testing provided there has been no degradation below a Cpk of 1.33 (2.0 for criticals). Any break in production greater than 6 months shall require resubmission of the request for reduction or elimination of inspection or testing through the same channels cited in paragraph g above. l. Not used. m. Immediately following a change to a process or operation parameter under reduced or eliminated inspectior, the process capability (Cp) or process performance indexes (Cpk) shall be recalculated and documented for variable data; the grand average fraction defective shall be recalculated for attribute data. If any of these values have deteriorated, immediate notification shall be made to the Government along with the associated documentation. Return to original inspection and test requirements may be imposed as stipulated in paragraph n below. n. The Government reserves the right to withdraw authorization to reduce or eliminate final acceptance inspection or testing and direct the Contractor to return to original contract inspection or test procedures at any indication of loss of process control or deterioration of quality. (End of clause) (ES6034) ~~ADDED ES7650 ###-###-#### 01-OCT-2000 MIL-STD-1916 LOCAL CHANGED ES7012 ###-###-#### 01-MAY-1994 REWORK AND REPAIR OF NONCOMFORMING MATERIAL LOCAL~~

a. Rework and Repair are defined as follows: (1) Rework - The reprocessing of nonconforming material to make it conform completely to the drawings, specifications or contract requirements. (2) Repair - The reprocessing of nonconforming material in accordance with approved written procedures and operations to reduce, but not completely eliminate, the nonconformance. The purpose of repair is to bring nonconforming material into a usable condition. Repair is distinguished from rework in that the item after repair still does not completely conform to all of the applicable drawings, specifications or contract requirements. b. Rework procedures along with the associated inspection procedures shall be documented by the Contractor and submitted to the Government Quality Assurance Representative (QAR) for review prior to implementation. Rework procedures are subject to the QAR's disapproval. c. Repair procedures shall be documented by the Contractor and submitted on a Request for Deviation/Waiver, DD Form 1694, to the Contracting Officer for review and written approval prior to implementation. d. Whenever the Contractor submits a repair or rework procedure for Government review, the submission shall also include a description of the cause for the nonconformances and a description of the action taken or to be taken to prevent recurrence. e. The rework or repair procedure shall also contain a provision for reinspection which will take precedence over the Technical Data Package requirements and shall, in addition, provide the Government assurance that the reworked or repaired items have met reprocessing requirements. (End of clause) (ES7012) ~~ADDED ES7010 ###-###-#### O1-MAY-1994 ACCEPTANCE INSPECTION EQUIPMENT LOCAL ADDED ES7011 ###-###-#### 01-MAY-1994 DESTRUCTIVE TESTING~~

PADDS ERRATA SHEET PAGE 12 PIIN/SIIN W52P1J-04-C-0103 MOD/AMD LOCAL ~~CHANGED ES7500 ###-###-#### 01-FEB-2004 CRITICAL CHARACTERISTICS LOCAL~~

a. The contractors processes shall be designed to prevent the creation or occurrence of critical nonconformances. The contractor shall establish, document and maintain specific procedures, work and handling instructions and process controls relating to any critical characteristics. b. The contractor shall assure his critical processes are robust in design such that product and performance are relatively insensitive to design and manufacturing parameters. A robust design anticipates changes and problems. Robust processes shall be designed to yield less than one nonconformance in one million. c. An inspection/verification system shall be employed that will verify the robustness of your critical processes. Maximum use should be made of automated inspection equipment to accomplish verification of product quality. Mistake proofing techniques of your material handling and inspection systems are encouraged. d. Previous Practices/Special Characteristics. As a result of previous practices, the governments technical data may refer to Critical (not annotated with I or III and Special characteristics. Characteristics classified as Critical (not annotated with a I or II) shall be subject to all requirements herein associated with Critical (I) characteristics and level I Critical nonconformances. Unless otherwise stated in Section C, characteristics classified as Special shall be subject to all requirements herein associated with Critical (II) and Level (II) Critical nonconformances. e. Contractor Identified Critical Characteristics List (CICCL). Not including critical characteristics defined in the governments technical data (drawings, specifications, etc.), the contractor shall identify and document all material, component, subassembly and assembly characteristics whose nonconformances may result in hazardous or unsafe conditions for individuals using, maintaining or depending upon the product. All additional critical characteristics identified by the contractor shall comply with the critical characteristic requirements of the technical data package, supplemented herein. The contractors additional critical characteristics shall be classified as Critical (I) or Critical (II), and shall be reviewed and approved by the procuring activity prior to manufacturing (DI-SAFT-80970A). The following definitions are provided. Level I critical nonconformance. A nonconformance of a critical characteristic that judgment and experience indicate would result in hazardous or unsafe conditions for individuals using, maintaining or depending upon the product; or a nonconformance that judgment and experience indicate would prevent performance of the tactical function of a weapon system or major end item. The following (as a minimum) are classified as Level I critical nonconformances: (1) A nonconformance that will result in a hazardous or unsafe condition (often referred to as a single point failure). (2) A nonconformance that will remove or degrade a safety feature (such as those in a safe and arm device or fuzing system). (3) A nonconformance that will result in violation of mandatory safety policies or standards. Level II critical nonconformance: A nonconformance of a critical characteristic, other than Level I. This includes the nonconformance of a characteristic that judgment and experience indicate may, depending upon the degree of variance from the design requirement, the presence of other nonconformances or procedural errors,: (1) result in a hazardous or unsafe conditions for individuals using, maintaining or depending upon the product, or (2) prevent performance of the tactical function of a major end item. f. In the event that a Critical nonconformance is found anywhere in the production process, the contractor, as part of his quality system, shall have procedures in place to ensure: (1) The nonconformance is positively identified and segregated so that there is no possibility of the item inadvertently re-entering the production process. This control shall be accomplished without affecting or impairing subsequent defect analysis. (2) The operation that produced the defective component or assembly and any other operations incorporating that component or assembly is immediately stopped. (3) The government is immediately notified of the critical nonconformance (telephonically and electronic mail.)(DI-SAFT-80970A). (4) Any suspect material (material in process that may contain the same defect) is identified, segregated and suspended from any further processing. (5) An investigation is conducted to determine the cause of the deficiency and required corrective actions. A report of this investigation shall be submitted to the government (DI-SAFT-80970A) . The use of the DID report shall not delay notification to the government. (6) A request to restart manufacturing or to use any suspect material associated with the critical nonconformance is submitted to the government (DI-SAFT-80970A). Restart of production shall not occur until the investigations are complete or upon authorization from the procuring contracting officer. All objective evidence of the investigations to date shall be available for review at the time of restart. Suspect materiel found to be nonconforming shall not be used without Government approval. g. The contractor may develop alternative plans and provisions relative to government or contractor identified Critical level (I) and Critical Level (II) characteristics. The provisions shall be submitted to the government for advanced approval and shall address the following: (1) Complete explanation of potential failure mode(s} together with supporting historical and statistical data. (2) Pre-established plan of action (POA) to be taken when a critical nonconformance occurs and a description of controls to ensure there is no possibility of the nonconforming item inadvertently entering the production process. (3) Means of tracking nonconformance rate, investigative results and corrective actions taken. (4) Method to immediately verify that a produced critical nonconformance is consistent with the identified failure mode(s) and does not exceed the historical nonconformance rate. The contractor can resume production without specific government approval based upon the pre-approved alternate plans and provisions for Critical (I) characteristics and level (I) Critical nonconformances and Critical (II) characteristics and level (II) Critical PADDS ERRATA SHEET PAGE 13 PIIN/SIIN W52P1J-04-C-0103 MOD/AMD nonconformances. h. If a critical nonconformance is discovered during further processing or loading, the original manufacturer who introduced the critical nonconformance shall bear responsibility for the nonconformance. i. The Government Quality Assurance Representative will perform the surveillance actions necessary to ensure compliance with this clause. (End of clause) (ES7500) SECTION F - DELIVERIES OR PERFORMANCE AUTO FF0043 52.242-17 01-APR-1984 GOVERNMENT DELAY OF WORK ADDED FF0031 52.247-29 01-JUN-1988 F.O.B. ORIGIN ADDED FF0020 52.247-58 01-APR-1984 LOADING, BLOCKING, AND BRACING OF FREIGHT CAR SHIPMENTS ADDED FF0021 52.247-59 01-APR-1984 F.O.B. ORIGIN - CARLOAD AND TRUCKLOAD SHIPMENTS ADDED FF0023 52.247-61 01-APR-1984 F.O.B. ORIGIN-MINIMUM SIZE OF SHIPMENTS ADDED FA0100 ###-###-#### 01-MAY-2002 TRANSPORTATION OF SUPPLIES BY SEA DFARS ADDED FS7115 ###-###-#### 01-MAR-2004 TRANSPORTATION SECURITY REQUIREMENTS FOR CONTRACTOR-TO-CONTRACTOR LOCAL SHIPMENTS CHANGED FS7240 ###-###-#### 01-MAY-1993 COGNIZANT TRANSPORTATION OFFICER LOCAL

(a) The contract administration office designated at the time of contract award, or the office servicing the point of shipment if subsequently designated by the original office, will be the contact point to which the contractor will: (1) Submit, as necessary, DD Form 1659, Application for U.S. Government Bill(s) of Lading/Export Traffic Release, in triplicate at least ten days prior to date supplies will be available for shipment; (2) Obtain shipping instructions as necessary for F.O.B. Origin delivery, and (3) Furnish necessary information for MILSTRIP/MILSTAMP or other shipment documentation and movement control, including air and water terminal clearances. (4) For FMS, at least ten days in advance of actual shipping date the contractor should request verification of "Ship to" and "Notification" address from the appropriate DCMAO. (b) The contract administration office will provide to the contractor data necessary for shipment marking and freight routing. (c) The contractor shall not ship directly to a military air or water port terminal without authorization by the designated point of contact. (End of clause) (FS7240) ~~ADDED FS7007 47.305-15(B) 01-FEB-1996 SPECIAL TRANSPORT/LOADING REQUIREMENTS (HAZARDOUS) LOCAL~~

SECTION H - SPECIAL CONTRACT REQUIREMENTS ~~ADDED HA0503 ###-###-#### 01-MAR-2000 NOTIFICATION OF TRANSPORTATION OF SUPPLIES BY SEA DFARS AUTO/DEL HA6001 252.211-7003 01-JAN-2004 ITEM IDENTIFICATION AND VALUATION DFARS~~

PADDS ERRATA SHEET PAGE 14 PIIN/SIIN W52P1J-04-C-0103 MOD/AMD ~~CHANGED HS6075 ###-###-#### 01-OCT-1994 GOVERNMENT FURNISHED PROPERTY OSC~~

Schedule of Government Furnished Property (a) Pursuant to the Government Property clause in Section I of this contract, the Government shall furnish F.O.B. contractor's place of performance, the Government-owned property listed in attachment number 013 of this document for use in the performance of this contract. (b) The property shall be delivered in accordance with the schedule set forth in attachment number 013 of this document. (c) If the property is not received in accordance with the schedule set forth in attachment number 013 of this document, the Contractor shall immediately notify the Contracting Officer in writing. (d) The quantity of Government Furnished Material (GFM) which is offered herein is contingent upon award of the total quantity solicited herein. Should the actual quantity awarded be less than the total quantity solicited, the Government retains the right to unilaterally reduce the quantity of GFM which will be provided under any resultant contract. Any said reduction shall be on a pro-rata basis. (End of Clause) (HS6075) ~~CHANGED HS6025 246.671 LOCAL 01-JAN-1995 MATERIAL INSPECTION AND RECEIVING REPORTS (DD FORM 250)~~

Material Inspection and Receiving Report (DD Form 250), required to be prepared and furnished to the Government under the clause of this contract entitled 'Material Inspection and Receiving Report', will be distributed by the Contractor in accordance with DOD FAR Supplement Appendix F, Part 4. Send copies to: 1. Purchasing Office Mr. Gene Harrison HQ, AFSC, AMSFS-CCA-L Rock Island, IL ###-###-#### 2. Production Management Ms. Jennifer Petersen HQ, JMC, SFSJM-CDM Rock Island, IL ###-###-#### (End of clause) (HA6025) ~~CHANGED HS6028 ###-###-####(B) 01-JUN-1996 INSTRUCTIONS FOR PREPARATION AND SUBMISSION OF PRODUCTION PROGRESS LOCAL REPORTS OF DELAYS IN DELIVERY~~

a. Production Progress Report (DD Form 375) and Production Progress Report Continuation (DD Form 375c) shall be prepared in accordance with instructions thereon. These forms shall be submitted as required for each separate contract item (identified by noun description not by line item number). The remarks section will provide process-oriented information where relevant to the delay. b. The contractor shall promptly submit a DD Form 375 reporting any delay in the scheduled delivery or completion as soon as known or anticipated. In addition, the form(s) shall be submitted on a monthly basis within 2 work days after each reporting period, beginning with the end of the first full month following the initial report submission and continuing until contract completion/termination. The forms shall be distributed as follows:
ACTIVITY ADDRESS NO. OF COPIES - -------- ---------- -------------- ~~Purchasing Office (PCO) See Award document. 1~~
PADDS ERRATA SHEET PAGE 15 PIIN/SIIN W52P1J-04-C-0103 MOD/AMD Administration Office (ACO) 3 Production Manager Ms. Jennifer Petersen 1 HQ, JMC, SFSJM-CDM Rock Island, IL ###-###-#### (End of clause) (HS6028) AUTO/DEL HA7502 ###-###-#### 01-MAY-2002 TRANSPORTATION OF SUPPLIES BY SEA DFARS AUTO/DEL HA7503 ###-###-#### 01-NOV-1995 NOTIFICATION OF TRANSPORTATION OF SUPPLIES BY SEA DFARS AUTO HS7600 ###-###-#### 01-MAY-1993 PLACE OF CONTRACT SHIPPING POINT, RAIL INFORMATION OSC

SECTION I CONTRACT CLAUSES AUTO IF0001 52.202-1 01-DEC-2001 DEFINITIONS AUTO IF0003 52.203-3 01-APR-1984 GRATUITIES AUTO IF0006 52.203-5 01-APR-1984 COVENANT AGAINST CONTINGENT FEES AUTO IF0028 52.203-6 01-JUL-1995 RESTRICTIONS ON SUBCONTRACTOR SALES TO THE GOVERNMENT AUTO IF0352 52.203-7 01-JUL-1995 ANTI-KICKBACK PROCEDURES AUTO IF0024 52.203-8 01-JAN-1997 CANCELLATION, RESCISSION, AND RECOVERY OF FUNDS FOR ILLEGAL OR IMPROPER ACTIVITY AUTO IF0114 52.203-10 01-JAN-1997 PRICE OR FEE ADJUSTMENT FOR ILLEGAL OR IMPROPER ACTIVITY AUTO IF0320 52.203-12 01-JUN-2003 LIMITATION ON PAYMENTS TO INFLUENCE CERTAIN FEDERAL TRANSACTIONS AUTO IF0740 52.204-4 01-AUG-2000 PRINTED OR COPIED DOUBLE-SIDED ON RECYCLED PAPER ADDED IF0162 52.204-7 01-OCT-2003 CENTRAL CONTRACTOR REGISTRATION AUTO IF0343 52.209-6 01-JUL-1995 PROTECTING THE GOVERNMENT'S INTEREST WHEN SUBCONTRACTING WITH CONTRACTORS DEBARRED, SUSPENDED, OR PROPOSED FOR DEBARMENT AUTO IF0011 52.211-5 01-AUG-2000 MATERIAL REQUIREMENTS AUTO IF0004 52.211-15 01-SEP-1990 DEFENSE PRIORITY AND ALLOCATION REQUIREMENTS AUTO IF0016 52.215-2 01-JUN-1999 AUDIT AND RECORDS - NEGOTIATION AUTO IF0015 52.215-8 01-OCT-1997 ORDER OF PRECEDENCE-UNIFORM CONTRACT FORMAT ADDED IF0050 52.215-14 01-OCT-1997 INTEGRITY OF UNIT PRICES ADDED IF0042 52.219-6 01-JUN-2003 NOTICE OF TOTAL SMALL BUSINESS SET -ASIDE AUTO IF0334 52.219-8 01-MAY-2004 UTILIZATION OF SMALL BUSINESS CONCERNS ADDED IF0048 52.219-14 01-DEC-1996 LIMITATIONS ON SUBCONTRACTING AUTO IF0500 52.222-19 01-JAN-2004 CHILD LABOR-COOPERATION WITH AUTHORITIES AND REMEDIES

PADDS ERRATA SHEET PAGE 16 PIIN/SIIN W52P1J-04-C-0103 MOD/AMD AUTO IF0056 52.222-20 01-DEC-1996 WALSH-HEALEY PUBLIC CONTRACTS ACT AUTO IF0057 52.222-26 01-APR-2002 EQUAL OPPORTUNITY AUTO IF0061 52.222-35 01-DEC-2001 EQUAL OPPORTUNITY FOR SPECIAL DISABLED VETERANS, VETERANS OF THE VIETNAM ERA, AND OTHER ELIGIBLE VETERANS AUTO IF0063 52.222-36 01-JUN-1998 AFFIRMATIVE ACTION FOR WORKERS WITH DISABILITIES AUTO IF0330 52.222-37 01-DEC-2001 EMPLOYMENT REPORTS ON SPECIAL DISABLED VETERANS, VETERANS OF THE VIETNAM ERA, AND OTHER ELIGIBLE VETERANS ADDED IF0326 52.223-6 01-MAY-2001 DRUG-FREE WORKPLACE AUTO IF0049 52.229-3 01-APR-2003 FEDERAL, STATE, AND LOCAL TAXES AUTO IF0086 52.232-1 O1-APR-1984 PAYMENTS AUTO IF0327 52.232-8 01-FEB-2002 DISCOUNTS FOR PROMPT PAYMENT AUTO IF0089 52.232-11 01-APR-1984 EXTRAS ADDED IF0031 52.232-16 01-APR-2003 PROGRESS PAYMENTS ADDED IF0082 52.232-16 01-MAR-2000 PROGRESS PAYMENTS (APR 2003) - ALTERNATE I AUTO IF0062 52.232-17 01-JUN-1996 INTEREST ADDED IF0094 52.232-23 01-JAN-1986 ASSIGNMENT OF CLAIMS AUTO IF0432 52.232-25 01-OCT-2003 PROMPT PAYMENT AUTO IF0163 52.232-33 01-OCT-2003 PAYMENT BY ELECTRONIC FUNDS TRANSFER - CENTRAL CONTRACTOR REGISTRATION AUTO IF0013 52.233-1 01-JUL-2002 DISPUTES AUTO IF0030 52.233-3 01-AUG-1996 PROTEST AFTER AWARD AUTO/DEL IF0126 52.242-2 01-APR-1991 PRODUCTION PROGRESS REPORTS ADDED IF0104 52.242-12 01-JUN-2003 REPORT OF SHIPMENT (REPSHIP) AUTO IF0124 52.242-13 01-JUL-1995 BANKRUPTCY AUTO IF0159 52.243-1 01-AUG-1987 CHANGES - FIXED PRICE AUTO IF0105 52.243-7 01-APR-1984 NOTIFICATION OF CHANGES ADDED IF0285 52.246-1 01-APR-1984 CONTRACTOR INSPECTION REQUIREMENTS ADDED IF0310 52.247-15 01-APR-1984 CONTRACTOR RESPONSIBILITY FOR LOADING AND UNLOADING AUTO IF0039 52.247-63 01-JUN-2003 PREFERENCE FOR U.S. - FLAG AIR CARRIERS AUTO IF0400 52.248-1 01-FEB-2000 VALUE ENGINEERING AUTO IF0130 52.249-2 01-MAY-2004 TERMINATION FOR CONVENIENCE OF THE GOVERNMENT (FIXED-PRICE) AUTO IF0132 52.249-8 01-APR-1984 DEFAULT (FIXED-PRICE SUPPLY AND SERVICE) AUTO IF0092 52.253-1 01-JAN-1991 COMPUTER GENERATED FORMS AUTO/DEL IA0654 *** THIS REFERENCE IS NO LONGER VALID ***

PADDS ERRATA SHEET PAGE 17 PIIN/SIIN W521J-04-C-0103 MOD/AMD AUTO/DEL IA0736 *** THIS REFERENCE IS NO LONGER VALID *** AUTO IA0702 ###-###-#### 01-MAR-1999 PROHIBITION ON PERSONS CONVICTED OF FRAUD OR OTHER DEFENSE-CONTRACT-RELATED FELONIES AUTO IA0601 ###-###-#### 01-APR-1992 CONTROL OF GOVERNMENT PERSONNEL WORK PRODUCT DFARS AUTO 1A0506 ###-###-#### 01-NOV-2003 REQUIRED CENTRAL CONTRACTOR REGISTRATION DFARS AUTO IA0706 ###-###-#### 01-DEC-1991 PROVISION OF INFORMATION TO COOPERATIVE AGREEMENT HOLDERS DFARS AUTO IA0707 ###-###-#### 01-NOV-1995 ACQUISITION FROM SUBCONTRACTORS SUBJECT TO ON-SITE INSPECTION UNDER THE DFARS INTERMEDIATE-RANGE NUCLEAR FORCES (INF) TREATY ADDED IA0730 ###-###-#### 01-MAY-1994 SAFETY PRECAUTIONS FOR AMMUNITION AND EXPLOSIVES DFARS ADDED IA0731 01-DEC-1991 CHANGE IN PLACE OF PERFORMANCE-AMMUNITION AND EXPLOSIVES ###-###-#### DFARS AUTO IA0738 ###-###-#### 01-MAY-2004 PREFERENCE FOR CERTAIN DOMESTIC COMMODITIES DFARS ADDED IA0540 ###-###-#### 01-JUN-1997 CORRESPONDENCE IN ENGLISH DFARS ADDED IA0690 ###-###-#### 01-OCT-2003 UTILIZATION OF INDIAN ORGANIZATIONS, INDIAN-OWNED ECONOMIC ENTERPRISES, AND NATIVE HAWAIIAN SMALL BUSINESS CONCERNS AUTO IA0515 ###-###-#### 01-DEC-1991 SUPPLEMENTAL COST PRINCIPLES DFARS ADDED IA0650 ###-###-#### 01-OCT-2001 DOD PROGRESS PAYMENT RATES DFARS AUTO IA0523 ###-###-#### 01-DEC-1991 POSTAWARD CONFERENCE DFARS AUTO IA0526 ###-###-#### 01-DEC-1991 PRICING OF CONTRACT MODIFICATIONS DFARS AUTO IA0527 ###-###-#### 01-MAR-2003 MATERIAL INSPECTION AND RECEIVING REPORT DFARS ADDED IA0710 204.404-70(C) 01-NOV-2001 ORAL ATTESTATION OF SECURITY RESPONSIBILITIES CHANGED IF6080 52.217-6 01-MAR-1989 EVALUATED OPTION FOR INCREASED QUANTITY

a. This solicitation includes an evaluated option (See Section M). b. The Government reserves the right to increase the quantity of item(s) CLIN 0001 by a quantity of up to and including but not exceeding 100 percent as an evaluated option at the price(s) quoted below. c. If the contractor does not quote a price hereunder, the lowest price offered/bid in the schedule for item(s) CLIN 0001 shall be the price used for evaluation/award of any option quantities. All evaluation factors identified in the solicitation, except P.O.B. origin transportation costs, will be applied to the option quantity for evaluation purposes. d. The Contracting Officer may exercise the evaluated option at any time preceding shipment of the last delivery by giving written notice to the Contractor. e. Delivery of the items added by exercise of this option shall continue immediately after, and at the same rate as delivery of PADDS ERRATA SHEET PAGE 18 PIIN/SIIN W52P1J-04-C-0103 MOD/AMD like items called for under the contract, unless the parties agree otherwise. f. Subject to the limitations contained in this clause, the Government may exercise this option on one or more occasions. g. offered Unit Prices for the Option Quantities are:
Unit Price ------------------- ~~Evaluated Option (F.O.B. Origin) $ CLIN 0001~~
Varying prices may be offered for the option quantities actually ordered and the dates when ordered. In as much as the unit price for the basic quantity may contain starting, load, testing, tooling, transportation or other costs not applicable to option quantities, offerors are requested to take these factors into consideration while setting forth the unit price(s) for the option quantities. The option price is expected (but not required) to be lower than the unit price for the initial quantity. (End of Clause) (IF6080) ~~AUTO/CHANGE IF6250 52.243-7 0l-APR-1984 NOTIFICATION OF CHANGES~~

(a) Definitions. "Contracting Officer," as used in this clause, does not include any representative of the Contracting Officer. "Specifically Authorized Representative (SAR)," as used in this clause, means any person the Contracting Officer has so designated by written notice (a copy of which shall be provided to the Contractor) which shall refer to this paragraph and shall be issued to the designated representative before the SAR exercises such authority. (b) Notice. The primary purpose of this clause is to obtain prompt reporting of Government conduct that the Contractor considers to constitute a change to this contract. Except for changes identified as such in writing and signed by the Contracting Officer, the Contractor shall notify the Administrative Contracting Officer in writing promptly, within ________ (to be negotiated) calendar days from the date that the Contractor identifies any Government conduct (including actions, inactions, and written or oral communications) that the Contractor regards as a change to the contract terms and conditions. On the basis of the most accurate information available to the Contractor, the notice shall state- (1) The date, nature, and circumstances of the conduct regarded as a change; (2) The name, function, and activity of each Government individual and Contractor official or employee involved in or Knowledgeable about such conduct; (3) The identification of any documents and the substance of any oral communication involved in such conduct; (4) In the instance of alleged acceleration of scheduled performance or delivery, the basis upon which it arose; (5) The particular elements of contract performance for which the Contractor may seek an equitable adjustment under this clause, including- (i) What contract line items have been or may be affected by the alleged change; (ii) What labor or materials or both have been or may be added, deleted, or wasted by the alleged change; (iii) To the extent practicable, what delay and disruption in the manner and sequence of performance and effect on continued performance have been or may be caused by the alleged change; (iv) What adjustments to contract price, delivery schedule, and other provisions affected by the alleged change are estimated; and (6) The Contractor's estimate of the time by which the Government must respond to the Contractor's notice to minimize cost, delay or disruption of performance. (c) Continued performance. Following submission of the notice required by paragraph (b) of this clause, the Contractor shall diligently continue performance of this contract to the maximum extent possible in accordance with its terms and conditions as construed by the Contractor, unless the notice reports a direction of the Contracting Officer or a communication from a SAR of the Contracting Officer, in either of which events the Contractor shall continue performance; provided, however, that if the Contractor regards the direction or communication as a change as described in paragraph (b) of this clause, notice shall be given in the manner provided. All directions, communications, interpretations, orders and similar actions of the SAR shall be reduced to writing promptly and copies furnished to the Contractor and to the Contracting Officer. The Contracting Officer shall promptly countermand any action which exceeds the authority of the SAR. (d) Government response. The Contracting officer shall promptly, within ______ (to be negotiated) calendar days after receipt of notice, respond to the notice in writing. In responding, the Contracting Officer shall either- (1) Confirm that the conduct of which the Contractor gave notice constitutes a change and when necessary direct the mode of further performance; (2) Countermand any communication regarded as a change, PADDS ERRATA SHEET PAGE 19 PIIN/SIIN W52P1J-04-C-0103 MOD/AMD (3) Deny that the conduct of which the Contractor gave notice constitutes a change and when necessary direct the mode of further performance; or (4) In the event the Contractor's notice information is inadequate to make a decision under paragraphs (d)(1), (2), or (3) of this clause, advise the Contractor what additional information is required, and establish the date by which it should be furnished and the date thereafter by which the Government will respond. (e) Equitable adjustments. (1) If the Contracting Officer confirms that Government conduct effected a change as alleged by the Contractor, and the conduct causes an increase or decrease in the Contractor's cost of, or the time required for, performance of any part of the work under this contract, whether changed or not changed by such conduct, an equitable adjustment shall be made- (i) In the contract price or delivery schedule or both; and (ii) In such other provisions of the contract as may be affected. (2) The contract shall be modified in writing accordingly. In the case of drawings, designs or specifications which are defective and for which the Government is responsible, the equitable adjustment shall include the cost and time extension for delay reasonably incurred by the Contractor in attempting to comply with the defective drawings, designs or specifications before the contractor identified, or reasonably should have identified, such defect. When the cost of property made obsolete or excess as a result of a change confirmed by the Contracting Officer under this clause is included in the equitable adjustment, the Contracting Officer shall have the right to prescribe the manner of disposition of the property. The equitable adjustment shall not include increased costs or time extensions for delay resulting from the Contractor's failure to provide notice or to continue performance as provided, respectively, in paragraphs (b) and (c) of this clause. Note: The phrases "contract price" and "cost" wherever they appear in the clause, may be appropriately modified to apply to cost-reimbursement or incentive contracts or to combinations thereof. (End of clause) (IF6250) ~~CHANGED IF6070 52.246-17 0l-JUN-2003 WARRANTY OF SUPPLIES OF A NONCOMPLEX NATURE~~

*** (b) Contractor's obligations. (1) Notwithstanding inspection and acceptance by the Government of supplies furnished under this contract, or any condition of this contract concerning the conclusiveness thereof, the Contractor warrants that for 1095 days after acceptance --- *** (c) Remedies available to the Government. (1) The Contracting Officer shall give written notice to the Contractor of any breach of warranties in paragraph (b)(1) of this clause within 120 days after duscivert if tge defect(s), *** (End of clause) (IF6070) ~~CHANGED IA6200 ###-###-#### 0l-SEP-1999 SAFEGUARDING SENSITIVE CONVENTIONAL ARMS, AMMUNITION, AND EXPLOSIVES DFARS~~

(a) Definition. Arms, ammunition, and explosives (AA&E), as used in this clause, means those items within the scope (chapter 1, paragraph B) of DoD 5100.76-M, Physical Security of Sensitive Conventional Arms, Ammunition, and Explosives. (b) The requirements of DoD 5100.76-M apply to the following items of AA&E being developed, produced, manufactured, or purchased for the Government, or provided to the Contractor as Government-furnished property under this contract:
NOMENCLATURE NATIONAL STOCK NUMBER SENSITIVITY/CATEGORY ~~CTG 40MM WHITE STAR CLU ###-###-####-00 ###-###-#### IV M16 RIFLE 1005-01-128-9936 III M203 LAUNCHER 1010-00-179-6447 III~~
PADDS ERRATA SHEET PAGE 20 PIIN/SIIN W52P1J-04-C-0103 MOD/AMD M203 BARREL 1010 ###-###-#### III (c) The Contractor shall comply with the requirements of DoD 5100.76-M, as specified in the statement of work. The edition of DoD 5100.76-M in effect on the date of issuance of the solicitation for this contract shall apply. (d) The Contractor shall allow representatives of the Defense Security Service (DSS), and representatives of other appropriate offices of the Government, access at all reasonable times into its facilities and those of its subcontractors, for the purpose of performing surveys, inspections, and investigations necessary to review compliance with the physical security standards applicable to this contract. (e) The Contractor shall notify the cognizant DSS field office of any subcontract involving AA&E within 10 days after award of the subcontract. (f) The Contractor shall ensure that the requirements of this clause are included in all subcontracts, at every tier (1) For the development, production, manufacture, or purchase of AA&E; or (2) When AA&E will be provided to the subcontractor as Government-furnished property. (g) Nothing in this clause shall relieve the Contractor of its responsibility for complying with applicable Federal, state, and local laws, ordinances, codes, and regulations (including requirements for obtaining licenses and permits) in connection with the performance of this contract. (End of clause) (IA6200) ~~CHANGED IF2018 52.209.3 01 SEP-1989 FIRST ARTICLE APPROVAL - CONTRACTOR TESTING~~

(a) The Contractor shall test * unit(s) of Lot/Item * as specified in this contract. At least fifteen (15) calendar days before the beginning of first article tests, the Contractor shall notify the Contracting Officer, in writing, of the time and location of the testing so that the Government may witness the tests. (b) The Contractor shall submit the first article test report within 15 calendar days from the date of this contract to * marked "FIRST ARTICLE TEST REPORT: Contract No. _______ , Lot/Item No. _____." Within thirty (30) calendar days after the Government receives the test report, the Contracting Officer shall notify the Contractor, in writing, of the conditional approval, approval, or disapproval of the first article; except that the number of days from receipt of the test report until the Contractor is notified shall be sixty (60) calendar days (instead of 30) when the option to perform confirmatory testing is exercised by the Government. The notice of conditional approval or approval shall not relieve the Contractor from complying with all requirements of the specifications and all other terms and conditions of this contract. A notice of conditional approval shall state any further action required of the Contractor. A notice of disapproval shall cite reasons for the disapproval. *** * (See instructions regarding submission of First Article clause) ** (See Schedule B) (End of Clause) (IF7018) AUTO IF7016 52.252-6 01-APR-1984 AUTHORIZED DEVIATIONS IN CLAUSES AUTO IA7015 252.211-7005 01-FEB-2003 SUBSTITUTIONS FOR MILITARY OR FEDERAL SPECIFICATIONS AND STANDARDS DFARS ADDED IA7732 ###-###-#### 01-APR-2003 BUY AMERICAN ACT AND BALANCE OF PAYMENTS PROGRAM DFARS AUTO IA7035 ###-###-#### 01-MAR-1998 REQUESTS FOR EQUITABLE ADJUSTMENT DFARS AUTO IS7025 ###-###-#### 01-FEB-1993 AUTHORITY OF GOVERNMENT REPRESENTATIVE OSC

PADDS ERRATA SHEET PAGE 21 PIIN/SIIN W52P1J-04-C-0103 MOD/AMD SECTION k - REPRESENTATIONS, CERTIFICATIONS, AND OTHER STATEMENTS OF OFFERORS AUTO KF0003 52.203-11 01-APR-1991 CERTIFICATION AND DISCLOSURE REGARDING PAYMENTS TO INFLUENCE CERTAIN FEDERAL TRANSACTIONS AUTO KA0705 ###-###-#### 01-MAR-1998 DISCLOSURE OF OWNERSHIP OR CONTROL BY THE GOVERNMENT OF A TERRORIST DFARS COUNTRY ADDED/FIL KF6065 52.203-2 01-APR-1985 CERTIFICATE OF INDEPENDENT PRICE DETERMINATION ADDED/FIL KF6043 52.204-3 01-OCT-1998 TAXPAYER IDENTIFICATION ADDED/FIL KF6063 52.207-4 01-AUG-1987 ECONOMIC PURCHASE QUANTITY-SUPPLIES ADDED/FIL KF6033 52.209-5 01-DEC-2001 CERTIFICATION REGARDING DEBARMENT, SUSPENSION, PROPOSED DEBARMENT, AND OTHER RESPONSIBILITY MATTERS ADDED/FIL KF6035 52.215-6 01-OCT-1997 PLACE OF PERFORMANCE CHANGED KF6003 52.219-1 01-MAY-2004 SMALL BUSINESS PROGRAM REPRESENTATIONS

(a)(1) The North American Industry Classification System (NAICs) code for this acquisition is 332993. (2) The small business size standard is 1500 employees. (3) The small business size standard for a concern which submits an offer in its own name, other than on a construction or service contract, but which proposes to furnish a product which it did not itself manufacture, is 500 employees. (b) Representations. (l) The offeror represents as part of its offer that it ___is, ___is not a small business concern. (2)(Complete only if the offeror represented itself as a small business concern in paragraph (b)(1) of this provision.) The offeror represents, for general statistical purposes, that it ___is, ___is not a small disadvantaged business concern as defined in 13 CFR 124.1002. (3) (Complete only if offeror represented itself as a small business concern in paragraph (b)(1) of this provision.) The offeror represents as part of its offer that it ___is, ___is not a women-owned small business concern. (4) (Complete only if offeror represented itself as a small business concern in paragraph (b)(1)of this provision.) The offeror represents as part of its offer that it is, is not a veteran-owned small business concern. (5) (Complete only if offeror represented itself as a small business concern in paragraph (b) (1) of this provision.) The offeror represents as part of its offer that it is, is not a service-disabled veteran-owned small business concern. (6) (Complete only if the offeror represented itself as a small business concern in paragraph (b) (1) of this provision.) The offeror represents, as part of its offer, that - (i)It( )is,( )is not a HUBZone small business concern listed, on the date of this representation, on the List of Qualified HUBZone Small Business Concerns maintained by the Small Business Administration, and no material change in ownership and control, principal office, or HUBZone employee percentage has occurred since it was certified by the Small Business Administration in accordance with 13 CFR part 126; and (ii) It( )is,( ) is not a joint venture that complies with the requirements of 13 CFR part 126, and the representation in paragraph (b)(6)(i) of this provision is accurate for the HUBZone small business concern or concerns that are participating in the joint venture. [The offeror shall enter the name or names of the HUBZone small business concern or concerns that are participating in the joint venture: .] Each HUBZone small business concern participating in the joint venture shall submit a separate signed copy of the HUBZone representation. (c) Definitions. As used in this provision- "Service-disabled veteran-owned small business concern"- (1) Means a small business concern- (i) Not less than 51 percent of which is owned by one or more service-disabled veterans or, in the case of any publicly owned business, not less than 51 percent of the stock of which is owned by one or more service-disabled veterans; and (ii)The management and daily business operations of which are controlled by one or more service-disabled veterans or, in the case of a service-disabled veteran with permanent and severe disability, the spouse or permanent caregiver of such veteran. (2) Service-disabled veteran means a veteran, as defined in 38 U.S.C. 101(2), with a disability that is service-connected, as defined in 38 U.S.C. 101(16). "Smal1 business concern" means a concern, including its affiliates that is independently owned and operated, not dominant in the field of operation in which it is bidding on Government contracts, and qualified as a small business under the criteria in 13 CFR part 121 and the size standard in paragraph (a) of this provision. PADDS ERRATA SHEET PAGE 22 PIIN/SIIN W52P1J-04-C-0103 MOD/AMD "Veteran-owned small business concern" means a small business concern- (1) Not less than 51 percent of which is owned by one or more veterans (as defined at 38 U.S.C. 101(2)) or, in the case of any publicly owned business, not less than 51 percent of the stock of which is owned by one or more veterans; and (2) The management and daily business operations of which are controlled by one or more veterans. "Women-owned small business concern" means a small business concern- (1) That is at least 51 percent owned by one or more women; or, in the case of any publicly owned business, at least 51 percent of the stock of which is owned by one or more women; and (2) Whose management and daily business operations are controlled by one or more women. (d) Notice. (1) If this solicitation is for supplies and has been set aside, in whole or in part, for small business concerns, then the clause in this solicitation providing notice of the set-aside contains restrictions on the source of the end items to be furnished. (2) Under 15 U.S.C. 645(d), any person who misrepresents a firm's status as a small HUBZone small, small disadvantaged, or women-owned small business concern in order to obtain a contract to be awarded under the preference programs established pursuant to section 8(a), 8(d), or 15 of the Small Business Act or any other provision of Federal law that specifically references section 8(d) for a definition of program eligibility, shall0 (i) Be punished by imposition of fine, imprisonment, or both; (ii) Be subject to administrative remedies, including suspension and debarment; and (iii) Be ineligible for participation in programs conducted under the authority of the Act. (End of provision) (KF6003) CHANGED KF6004 52.219-1 01-APR-2002 SMALL BUSINESS PROGRAM REPRESENTATIONS (MAY 2004) - ALTERNATE I (7) [Complete if offeror represented itself as disadvantaged in paragraph (b)(2) of this provision.] the offeror shall check the category in which its ownership falls: Black American Hispanic American Native American (American Indians, Eskimos, Aleuts, or Native Hawaiians). Asian-Pacific American (persons with origins from Burma, Thailand, Malaysia, Indonesia, Singapore, Brunei, Japan, China, Taiwan, Laos, Cambodia (Kampuchea), Vietnam, Korea, The Philippines, U.S. Trust Territory of the Pacific Islands (Republic of Palau), Republic of the Marshall Islands, Federated States of Micronesia, the Commonwealth of the Northern Mariana Islands, Guam, Samoa, Macao, Hong Kong, Fiji, Tonga, Kiribati, Tuvalu, or Nauru). Subcontinent Asian (Asian-Indian) American (persons with origins from India, Pakistan, Bangladesh, Sri Lanka, Bhutan, the Maldives Islands, or Nepal). individual/concern, other than one of the preceding. (KF6004) ~~CHANGED KF6080 52.219-21 01-MAY-1999 SMALL BUSINESS SIZE REPRESENTATION FOR TARGETED INDUSTRY CATEGORIES UNDER THE SMALL BUSINESS COMPETITIVENESS DEMONSTRATION PROGRAM~~

[Complete only if the Offeror has represented itself under the provision at 52.219-1 as a small business concern under the size standards of this solicitation.] Offeror's number of employees for the past 12 months [check this column if size standard stated in solicitation is expressed in terms of number of employees] or Offeror's average annual gross revenue for the last 3 fiscal years [check this column if size standard stated in solicitation is expressed in terms of annual receipts]. [Check one of the following.] PADDS ERRATA SHEET PAGE 23 PIIN/SIIN W52P1J-04-C-0103 MOD/AMD
No. of Employees Avg. Annual Gross Revenues - --------------------- --------------------------- _____ 50 or fewer ___ $1 million or less _____ 51 - 100 ______ $1,000,001 - $2 million ____ 101 - 250 ______ $2,000,001 - $3.5 million ____ 251 - 500 ______ $3,500,001 - $5 million ____ 501 - 750 ______ $5,000,001 - $10 million ____ 751 - 1,000 ____ $10,000,001 - $17 million ____ Over 1,000 _____ Over $17 million
(End of provision) (KF6080) ~~CHANGED KF6019 52.222-22 O1-FEB-1999 PREVIOUS CONTRACTS AND COMPLIANCE REPORTS~~

The offeror represents that (a) It ( ) has, ( ) has not participated in a previous contract or subcontract subject either to the Equal Opportunity clause of this solicitation; (b) It ( ) has, ( ) has not, filed all required compliance reports; and (c) Representations indicating submission of required compliance reports, signed by subcontractors, will be obtained before subcontract awards. (End of provision) (KF6019) ~~ADDED/FIL KF6020 52.222-25 01-APR-1984 AFFIRMATIVE ACTION COMPLIANCE CHANGED KA6500 ###-###-#### O1-AUG-1992 REPRESENTATION OF EXTENT OF TRANSPORTATION BY SEA DFARS~~

(a) The offeror shall indicate by checking the appropriate blank in paragraph (b) of this provision whether transportation of supplies by sea is anticipated under the resultant contract. The term supplies is defined in the Transportation of Supplies by Sea clause of this solicitation. (b) Representation. The Offeror represents that it ______ Does anticipate that supplies will be transported by sea in the performance of any contract or subcontract resulting from this solicitation. ______ Does not anticipate that supplies will be transported by sea in the performance of any contract or subcontract resulting from this solicitation. (c) Any contract resulting from this solicitation will include the Transportation of Supplies by Sea clause. If the Offeror represents that it will not use ocean transportation, the resulting contract will also include the Defense FAR Supplement clause at ###-###-####, Notification of Transportation of Supplies by Sea. (End of provision) (KA6500) AUTO/DEL KF7003 *** THIS REFERENCE IS NO LONGER VALID *** AUTO/DEL KF7035 *** THIS REFERENCE IS NO LONGER VALID *** AUTO/DEL KF7043 *** THIS REFERENCE IS NO LONGER VALID *** AUTO/DEI KF7033 *** THIS REFERENCE IS NO LONGER VALID *** AUTO/DEL KF7005 *** THIS REFERENCE IS NO LONGER VALID *** PADDS ERRATA SHEET PAGE 24 PIIN/SIIN W52P1J-04-C-0103 MOD/AMD AUTO/DEL KF7019 *** THIS REFERENCE IS NO LONGER VALID *** AUTO/DEL KF7020 *** THIS REFERENCE IS NO LONGER VALID *** AUTO/DEL KA7500 *** THIS REFERENCE IS NO LONGER VALID *** SECTION L INSTRUCTIONS, CONDITIONS, AND NOTICES TO OFFERORS AUTO LF0032 52.204-6 01-OCT-2003 DATA UNIVERSAL NUMBERING SYSTEM (DUNS) NUMBER AUTO LF0604 52.211-2 01-DEC-2003 AVAILABILITY OF SPECIFICATIONS LISTED IN THE DOD INDEX OF SPECIFICATIONS AND STANDARDS (DODISS) AND DESCRIPTIONS LISTED IN THE ACQUISITION MANAGEMENT SYSTEMS AND DATA REQUIREMENTS CONTROL LIST, DOD 5010.12-L ADDED LF0054 52.215-1 01-JAN-2004 INSTRUCTIONS TO OFFERORS-COMPETITIVE ACQUISITIONS ADDED LF0680 52.222-38 01-DEC-2001 COMPLIANCE WITH VETERANS' EMPLOYMENT REPORTING REQUIREMENTS ADDED LF0095 52.232-38 01-MAY-1999 SUBMISSION OF ELECTRONIC FUNDS TRANSFER INFORMATION WITH OFFER ADDED LA0654 ###-###-#### 01-APR-2003 SECONDARY ARAB BOYCOTT OF ISRAEL CHANGED LF6008 52.216-1 01-APR-1984 TYPE OF CONTRACT

The Government contemplates award of a firm-fixed-price contract resulting from this solicitation. (End of provision) (LF6008) CHANGED LF6021 52.233-2 01-AUG-1996 SERVICE OF PROTEST (a) Protests, as defined in section 33.101 of the Federal Acquisition Regulation, that are filed directly with an agency, and copies of any protests that are filed with the General Accounting Office (GAO), shall be served on the Contracting Officer (addressed as follows) by obtaining written and dated acknowledgment of receipt from Gene Harrison, AMSFS-CCA-L, Rock Island, IL ###-###-####. (b) The copy of any protest shall be received in the office designated above within one day of filing a protest with the GAO. (End of provision) (LF6021) AUTO/DEL LM6100 52.211-4510 O1-AUG-2001 PARTNERING AMC AUTO LF7015 52.252-5 O1-APR-1984 AUTHORIZED DEVIATIONS IN PROVISIONS ADDED LM7010 AMC O1-DEC-2000 AMC-LEVEL PROTEST PROGRAM AUTO/CHANGE LS7100 ###-###-#### O1-APR-2001 ELECTRONIC AWARD NOTICE OSC

1. Any contract awarded as a result of this solicitation will be posted to the Electronic Document Access (EDA) system website, http://eda.ogden.disa.mil/, and paper copies will not be distributed. This is a material condition of the solicitation and by submission of a bid or proposal, the vendor agrees to accept an electronic award transmitted in the manner described above. In order to obtain an electronic copy of the award, you must be registered in the EDA system. Guidance/instructions for registration can be obtained at the above website. 2. Notice of award to the contractor receiving the award will be issued only via electronic mail. Vendors who wish to be notified if they receive an award as a result of this solicitation must provide their electronic mail address in the space provided below. If the vendor fails to provide an electronic mail address, then a separate notice of award will not be provided and it shall be the sole responsibility of the vendor to periodically check the Federal Business Opportunities (FedBizOpps) - FBO Synopsis/Award Search website http://www.fedbizopps.gov/or the Army Single Face to industry (ASFI)/Procurement Notifications website http://acquisition.army.mil to determine if he/she has received an award. In this event, the vendor's failure to check FEDBIZOPPS or the ASFI in a timely manner shall PADDS ERRATA SHEET PAGE 35 PIIN/SIIN W52P1J-04-C-0103 MOD/AMD not be an excuse for failure to perform or grounds for a delivery schedule extension. 3. Notice of award to unsuccessful offerors shall be issued only via electronic mail from the Contracting Office or via the FedBizOpps/Vendor Notification feature. Vendors who wish to receive an electronic mail notice if they are unsuccessful must provide an electronic mail address in the space provided below. If the vendor fails to provide an electronic mail address, then a separate notice will not be provided, and it shall be the sole responsibility of the vendor to periodically check the ASFI/Procurement Notifications or the FedBizOpps/Award Notification to determine if an award has been made. In this event, the vendor's failure to check these sites to determine if an award has been made shall not constitute grounds for an extension of any protest period allowed by regulation. VENDOR'S ELECTRONIC MAIL (EMAIL) ADDRESS: -1- (End of provision) (LS7100) ~~AUTO DEL, LS7002 52.214-7 LOCAL 01-SEP-2003 HAND-DELIVERED BIDS, QUOTES, OR PROPOSALS CHANGED LS7003 52.214-7 LOCAL Ol-AUG-2004 HAND-DELIVERED BIDS, QUOTES, OR PROPOSALS~~

Effective 09 August 2004, should you elect to hand-deliver your bid, quote, or proposal, you must enter Rock Island Arsenal via the Moline entrance gate, and proceed to the Visitor Control Center (Building 23) to obtain a security badge/registration. The Visitor Control Center hours of operation are from 6:00 a.m. until 3:30 p.m. CT. Upon arrival, ask the Visitor Control Center attendant to contact the AFSC Bid, Quote and Proposal Receiving Area, (309 ###-###-####/5053. If there is no answer on either of these extensions, the attendant should call ###-###-#### to reach an alternate point of contact. If you use a delivery service it is your responsibility to ensure they are provided these instructions. For deliveries made after 3:30 p.m. CT, the carrier must ask the Police Officer at the Moline entrance gate to call the AFSC Proposal Receiving Area or alternate number provided in the preceding paragraph so a visitor decal can be issued to enter the Arsenal. The carrier must then proceed to Police Headquarters, Building 225, to obtain a badge, as one cannot be issued out at the gate after 3:30 p.m. CT. Delivery is to be made to Building 350, 5th Floor, North Bay between Poles E3 and E4, "Bid, Quote, and Proposal Receiving Area", (309 ###-###-####/5053. Packages must be delivered between the hours of 8:00 a.m. and 4:00 p.m. CT, Monday through Friday. No packages will be accepted on Federal Holidays. In the event this solicitation is an Invitation for Bids, reference FAR 52.214-7, "Late Submissions, Modifications, and Withdrawal of Bids" (Nov 1999). Conversely, if this solicitation is either a Request for Quotations or Request for Proposals, reference FAR 52.215-1. "Instructions to Offerors - Competitive Acquisitions." (End of provision) (LS7003) ~~AUTO LS7010 ###-###-#### 01-FEB-2003 10 U.S.C. 4543 PILOT PROGRAM LOCAL AUTO LS7001 15.503 LOCAL 01-FEB-2004 DISCLOSURE OF UNIT PRICES~~

SECTION M - EVALUATION FACTORS FOR AWARD ~~ADDED MF0010 52.247-50 01-APR-1984 NO EVALUATION OF TRANSPORTATION COSTS CHANGED MF7007 9.306(C) 01-SEP-1995 FIRST ARTICLE APPROVAL~~

a. Evaluation of bids or offers where first article test are waived for eligible bidders or offerors will be made by deleting the CLIN calling for First Article Testing. PADDS ERRATA SHEET PAGE 26 PIIN/SIIN W52P1J-04-C-0103 MOD/AMD b. Earlier delivery, if required in case of waiver of first article testing, shall not be a factor in evaluation for award. (End of Provision) (MF7007) PADDS DISTRIBUTION LIST PCN: P10CM29114R PAGE: 1 PRINT DATE: 28-SEP-2004 PIIN W52P1J-04-C-0103 MOD NO: SUBMITTED BY PAAAX BUYER NAME: DEAN BRABANT DOLLARIVALUE $701,533.36 DD350 INCLUDED [X]
NUMBER DATE COPIES STAMP Office of PCO (Original Contract/Mod) 1 Contractor 1 Dup/Orig Contract/Mod 1 VALENTEC SYSTEMS INC. 2618 YORK AVE MINDEN, LA. 710552618 Paying Office Contract/Mod 1 DFAS COLUMBUS CENTER DFAS-CO/WEST ENTITLEMENT OPERATIONS P.O. BOX 182381 COLUMBUS, OH ###-###-#### Facility Contract/Mod No Facility Consignee W22PVK Contract /Mod XU MUNITIONS STORAGE POINT BLUE GRASS ARMY DEPOT 2091 KINGSTON HWY RICHMOND KY 40475-5000 Consignee Contract/Mod Procuring Element AMSFS-CCA-L 1 Requiring Element___ (Contract/Mod) 1 DCMA SAN ANTONIO 615 EAST HOUSTON STREET P 0 BOX 1040 SAN ANTONIO TX ###-###-#### Contract Admin ADP Point 1 Contract/Mod 1 DFAS COLUMBUS CENTER DFAS-CO/SO ENTITLEMENT OPERATIONS PO BOX 182264 COLUMBUS, OH ###-###-#### SEA Office Contract/Mod No SBA Office Consignee Z55555 Contract/Mod SEE SECTION E
INDIVIDUAL CONTRACTING ACTION REPORT Report Control Symbol DD-AT&L(M)1014 A1 Type of Report 0 (0) Original; (1) Canceling; or (2) Correcting A2 Report Number 002151-4 A3 Contracting Office A3A Reporting Agency FIPS 95 Code 2100 A3B Contracting Office Code W52P1J A4 Name of Contracting Office HQ AFSC B1 Contract Identification Information B1A Contract Number W52P1J-04-C-0103 B1B Origin of Contract A (A) DoD; (B) NASA; or (C) Other Non-DoD Agency B1C Bundled Contract N (Y) Yes; or (N) No B1D Bundled Contract Exception___ (A) Mission Critical; (B) OMB Circular A-76; or (C) Other B1E Performance-Based Service Contract N (Y) Yes; or (N) No B2 Modification, Order, or Other ID Number B2A Order, or Other ID Number______ B2B Modification Number______ B3 Action Date (yyyymmdd)______ B4 Completion Date (yyyymmdd) 20051231 B5 Contractor Identification Information B5A Contractor Identification Number (DUNS) 047672147 B5B Government Agency N (Y) Yes; or (N) No B5D Contractor Name and Division Name Contractor VALENTEC SYSTEMS INC. Division B5E Contractor Address Street or PO Box 2618 YORK AVE City or Town MINDEN State or Country LA Zip Code 71055-2618 B5F Taxpayer Identification Number 330617619 B5G Parent Taxpayer Identification Number______ B5H Parent Name______ B6 Principal Place of Performance B6A City or Place Code 50885 B6B State or Country Code 22 B6C City or Place and State or Country Name MINDEN LA B7 Type Obligation 1 (1) Obligation; (2) Deobligation; or (3) No Dollars Obligated or Deobligated B8 Obligated or Deobligated Dollars (Enter Whole Dollars Only) $701 533 B9 Foreign Military Sale N (Y) Yes; or (N) No B10 Multiyear Contract N (Y) Yes; or (N) No B11 Total Estimated Contract Value (Enter Whole Dollars Only) $0 B12 Principal Product or Service B12A Federal Supply Class or Service Code 1310 B12B DoD Claimant Program Code A60 B12C MDAP, MAIS, or Other Program Code 000

DD FORM 350, OCT 2003 1 INSTRUMENT NBR: W52P1J-04-C-0103 REPORT NBR: 002151-4 INDIVIDUAL CONTRACTING ACTION REPORT Report Control Symbol DD-AT&L(M)1014 B12D NAICS Code 332993 B12E Name or Description CTG 40MM WHITE STAR CLU M585 B12F EPA-Designated Product(s) E (A) EPA-Designated Product(s) with Minimum Recovered Material Content; (B) FAR 23.405(c)(l) Justification; (C) FAR 23.405(c)(2) Justification; (D) FAR 23.405(c)(3) Justification; or (E) No EPA-Designated Product(s) Acquired B12G Recovered Material Clauses ______(A) FAR 52.223-4; or (B) FAR 52.223-4 and FAR 52.223-9 B13 Kind of Action B13A Contract or Order 3 (1) Letter Contract; (3) Definitive Contract; (4) Order under an Agreement; (5) Order under Indefinite-Delivery Contract; (6) Order under Federal Schedule; (7) BPA Order under Federal Schedule; (8) Order from Procurement List; or (9) Award under FAR Part 13 B13B Type of Indefinite-Delivery Contract ________ (A) Requirements Contract (FAR 52.216-21); (B) Indefinite-Quantity Contract (FAR 52.216-22); or (C) Definite-Quantity Contract (FAR 52.216-20) B13C Multiple or Single Award Indefinite-Delivery Contract _________ (M) Multiple Award; or (S) Single Award B13D Modification _____(A) Additional Work (new agreement); (B) Additional Work (other); (C) Funding Action; (D) Change Order; (E) Termination for Default; (F) Termination for Convenience; (G) Cancellation; (H) Exercise of an Option; or (J) Definitization B13E Multiple Award Contract Fair Opportunity _______(A) Fair Opportunity Process; (B) Urgency; (C) One/Unique Source; (D) Follow-On Contract; or (E) Minimum Guarantee B13F Indefinite-Delivery Contract Use ______(A) Government-Wide; (B) DoD-Wide; (C) DoD Department or Agency Only; or (D) Contracting Office Only B13G Indefinite-Delivery Contract Ordering Period Ending Date (yyyymmdd)______ B14 CICA Applicability B (A) Pre-CICA; (B) CICA Applicable; (C) Simplified Acquisition Procedures Other than FAR Subpart 13.5; or (D) Simplified Acquisition Procedures Pursuant to FAR Subpart 13.5 B15 Information Technology Products or Services ________(A) Commercially Available Off-the-Shelf Item; (B) Other Commercial Item of Supply; (C) Nondevelopmental Item Other than Commercial Item; (D) Other Noncommercial Item of Supply; (E) Commercial Service; or (F) Noncommercial Service. B16 Clinger-Cohen Act Planning Compliance ______ (Y) Yes; or (N) No

Do not complete Part C if Line B5B is coded Y. C1 Synopsis N (A) Synopsis Only; (B) Combined Synopsis/Solicitation; or (N) Not Synopsized C2 Reason Not Synopsized Z (A) Urgency; (B) FAR 5.202(a)(13); (C) SBA/OFPP Pilot Program; or (Z) Other Reason C3 Extent Competed A (A) Competed Action; (B) Not Available for Competition; (C) Follow-On to Competed Action; or (D)Not Competed C4 Sea Transportation N (Y) Yes - Positive Response to DFARS ###-###-#### or ###-###-####(c)(2); (N) No - Negative Response to DFARS ###-###-#### or ###-###-####(c)(2); or (U) Unknown - No Response or Provision Not Included in Solicitation

DD FORM 350, OCT 2003 2 INSTRUMENT NBR: W52P1J-04-C-0103 REPORT NBR: 002151-4 INDIVIDUAL CONTRACTING ACTION REPORT Report Control Symbol DD-AT&L(M)1014 C5 Type of Contract J (A) Fixed-Price Redetermination; (J) Firm-Fixed-Price; (K) Fixed-Price Economic Price Adjustment; (L) Fixed-Price Incentive; (M) Fixed-Price-Award-Fee; (R) Cost-Plus-Award-Fee; (S) Cost Contract; (T) Cost-Sharing; (U) Cost-Plus-Fixed-Fee; (V) Cost-Plus-Incentive-Fee; (Y) Time-and-Materials; or (Z) Labor-Hour C6 Number of Offerors Solicited 2 (1) One; or (2) More than One C7 Number of Offers Received 003 C8 Solicitation Procedures K (A) Full and Open Competition - Sealed Bid; (B) Full and Open Competition - Competitive Proposal; (C) Full and Open Competition - Combination; (D) Architect-Engineer; (E) Basic Research; (F) Multiple Award Schedule; (G) Alternative Sources; (K) Set-Aside; or (N) Other than Full and Open Competition C9 Authority for Other Than Full and Open Competition ________ (1A) Unique Source; (1B) Follow-On Contract; (1C) Unsolicited Research Proposal; (1D) Patent or Data Rights; (1E) Utilities; (1F) Standardization; (1G) Only One Source - Other; (2A) Urgency; (3A) Particular Sources; (4A) International Agreement; (5A) Authorized by Statute; (5B) Authorized Resale; (6A) National Security; or (7A) Public Interest C10 Subject to Labor Standards Statutes Z (A) Walsh-Healey Act; (C) Service Contract Act; (D) Davis-Bacon Act; or (Z) Not Applicable C11 Cost or Pricing Data N (Y) Yes - Obtained; (N) No - Not Obtained; or (W) Not Obtained - Waived C12 Contract Financing Z (A) FAR 52.232-16; (C) Percentage of Completion Progress Payments; (D) Unusual Progress Payments or Advance Payments; (E) Commercial Financing; (F) Performance-Based Financing; or (Z) Not Applicable C13 Foreign Trade Data C13A Place of Manufacture ______(A) U.S.; or (B) Foreign C13B Country of Origin Code ______ C14 Commercial Item N (Y) Yes - FAR 52.212-4 Included; or (N) No - FAR 52.212-4 Not Included

Do not complete Part D if Line B5B is coded Y or if Line B13A is coded 6. D1 Type of Contractor D1A Type of Entity B (A) Small Disadvantaged Business (SDB) Performing in U.S.; (B) Other Small Business (SB) Performing in U.S.; (C) Large Business Performing in U.S.; (D) JWOD Participating Nonprofit Agency; (F) Hospital; (L) Foreign Concern or Entity; (M) Domestic Firm Performing Outside U.S.; (T) Historically Black College or University (HBCU); (U) Minority Institution (MI); (V) Other Educational or (Z) Other Nonprofit D1B Women-Owned Business N (Y) Yes; (N) No; or (U) Uncertified D1C HUBZone Representation N (Y) Yes; or (N) No D1D Ethnic Group _____(A) Asian-Indian American; (B) Asian-Pacific American; (C) Black American; (D) Hispanic American; (E) Native American; (F) Other SDB Certified or Determined by SBA; or (Z) No Representation D1E Veteran-Owned Small Business ____ (A) Service-Disabled Veteran; or (B) Other Veteran

DD FORM 350, OCT 2003 3 INSTRUMENT NBR: W52P1J-04-C-0103 REPORT NBR: 002151-4 INDIVIDUAL CONTRACTING ACTION REPORT Report Control Symbol DD-AT&L(M)1014 D2 Reason Not Awarded to SDB B (A) No Known SDB Source; (B) SDB Not Solicited; (C) SDB Solicited and No Offer Received; (D) SDB Solicited and Offer Was Not Low; or (Z) Other Reason D3 Reason Not Awarded to SB ___ (A) No Known SB Source; (B) SB Not Solicited; (C) SB Solicited and No Offer Received; (D) SB Solicited and Offer Was Not Low; or (Z) Other Reason D4 Set-Aside or Preference Program D4A Type of Set-Aside B (A) None; (B) Total SB Set-Aside; (C) Partial SB Set-Aside; (D) Section 8(a) Set-Aside or Sole Source; (E) Total SDB Set-Aside; (F) HBCU or MI - Total Set-Aside; (G) HBCU or MI - Partial Set-Aside; (H) Very Small Business Set-Aside; (J) Emerging Small Business Set-Aside; (K) HUBZone Set-Aside or Sole Source; (L) Combination HUBZone and 8(a) D4B Type of Preference A (A) None; (B) SDB Price Evaluation Adjustment - Unrestricted; (C) SDB Preferential Consideration - Partial SB Set-Aside; (D) HUBZone Price Evaluation Preference; or (E) Combination HUBZone Price Evaluation Preference and SDB Price Evaluation Adjustment D4C Premium Percent ______ D7 Small Business Innovation Research (SBIR) Program A (A) Not a SBIR Program Phase I, II, or III; (B) SBIR Program Phase I Action; (C) SBIR Program Phase II Action; or (D) SBIR Program Phase III Action D8 Subcontracting Plan - SB, SDB, HBCU, or MI B (A) Plan Not Included - No Subcontracting Possibilities; (B) Plan Not Required; (C) Plan Required - Incentive Not Included; Or (D) Plan Required - Incentive Included D9 Small Business Competitiveness Demonstration Program Y (Y) Yes; or (N) No D10 Size of Small Business D

Employees (A) 50 or fewer Annual Gross Revenues (B) 51 - 100 (M) $1 million or less (C) 101 - 250 (N) Over $1 million - $2 million (D) 251 - 500 (P) Over $2 million - $3.5 million (E) 501 - 750 (R) Over $3.5 million - $5 million (F) 751 - 1000 (S) Over $5 million - $10 million (G) Over 1000 (T) Over $10 million - $17 million (U) Over $17 million.

D11 Emerging Small Business ____ (Y) Yes; or (N) No E1 Contingency, Humanitarian, or Peacekeeping Operation ______(Y) Yes; or Leave Blank E2 Cost Accounting Standards Clause ______(Y) Yes; or Leave Blank E3 Requesting Agency Code (FIPS 95-2) ______ E4 Requesting Activity Code ______ E5 Number of Actions 1 E6 Payment by GPC ______ F1 Name of Contracting Officer or Representative GENE HARRISON F2 Signature ______ F3 Telephone Number (398 ###-###-#### F4 Date (yyyymmdd)____________________

~~DD FORM 350, OCT 2003 4~~