DATE LAST REVISED: 12 OCT 2006 LOCKHEED MARTIN CORPORATION LOCKHEED MARTIN AERONAUTICS COMPANY MATERIAL MANAGEMENT CENTER PALMDALE, CALIFORNIA SUPPLEMENTAL TERMS AND CONDITIONS APPLICABLE TO CONTRACTS FOR SERVICES ISSUED UNDER U.S. GOVERNMENT CONTRACTS NOTE: After obtaining all the relevant information or certifications from the Seller, Buyers must select any applicable CAS clauses (FAR 52.230-1 to 52.230-6) and add them to this list. Including all these clauses while specifying that those which are inapplicable will be self-deleting is specifically prohibited. See the CyberGuide for applicable instructions (site address is on the internal website in the Index). (Clauses 20 through 32 are reserved.) 33. "Lockheed Martin Aeronautics Company-Palmdale Terms and Conditions for Services" is modified as follows: (a) Article 10. TERMINATION FOR CONVENIENCE" is deleted in its entirety and FAR 52.249-2 is incorporated by reference as though fully set forth herein. (b) Article 11. "TERMINATION FOR DEFAULT" is deleted in its entirety and FAR 52.249-8 is incorporated by reference as though fully set forth herein. (c) Article 13. "GRATUITIES/KICKBACKS": Add the following paragraph at the end of this clause: "By accepting this Contract, Seller certifies and represents that it has not made or solicited and will not make or solicit kickbacks in violation of FAR 52.203-7 or the Anti-Kickback Act of 1986 (41 USC 51-58), both of which are incorporated herein by reference as though fully set forth herein." (d) Article 17. "DISPUTES": Between the first and second sentence, add the following: "Any provision or clause in this Contract that is (i) incorporated in full text or by reference from the Federal Acquisition Regulation (FAR) or (ii) incorporated in full text or by reference from any agency regulation that implements or supplements the FAR or (iii) that is substantially based on any such agency regulation or FAR provision, shall be construed and interpreted according to the federal common law of government contracts as enunciated and applied by federal judicial bodies, Boards of Contracts Appeals, and quasi-judicial agencies of the Federal Government." At the end of the first paragraph, add the following paragraph: "Any provision in the FAR clauses specified in this Contract referring to a "Disputes Clause", or which provide that a failure to agree shall be a dispute within the meaning of the FAR clause entitled "Disputes", shall not apply and shall be of no force or effect." 34. Add the following additional clauses: (a) APPLICABLE LAWS: Seller agrees to comply with all applicable laws, orders, rules, regulations, and ordinances. If the Government reduces Buyer's contract, or if a fine or penalty is assessed by a government agency, as a result of any violation of Public Law or federal, state, or local regulation by Seller or Seller's subcontractors or lower-tier subcontractors, Buyer may reduce the amount of this Contract by the same amount. If Buyer has already paid Seller, Seller shall, upon demand from Buyer, promptly repay to Buyer the amount of the offset. Exercise of Buyer's right under this clause shall not be a waiver of any rights Buyer has under any other clause or provision of this Contract." (b) CONTRACT DIRECTION: (i) Buyer, through its Contracts Department, shall be solely responsible for all liaison and coordination with the Buyer's customer, including the U.S. Government, as it affects the applicable prime contract, this contract, and any related contract. (c) Unless otherwise directed in writing by the Buyer's Authorized Representative, all documentation requiring submittal to, or action by, the Government or the Contracting Officer shall be routed to, or through, the Buyer's Authorized Representative. (d) PRIORITY RATING: If so identified, this Contract is a "rated order" certified for national defense use, and the Seller shall follow all the requirements of the Defense Priorities and Allocation System Regulation (15 C.F.R. Part 700). 35. CERTIFICATIONS AND REPRESENTATIONS: This clause contains certifications and representations that are material representations of fact upon which Buyer will rely in making awards to Seller. By submitting its written offer, or providing oral offers/quotations at the request of Buyer, or accepting any Contract, including verbal orders from a Buyer Authorized Representative, Seller represents and certifies as set forth below in this clause. Seller shall immediately notify Buyer of any change of status with regard to these certifications. I. Equal Employment Opportunity Certifications: (a) 52.222-21 Certification of Nonsegregated Facilities. (Applicable to purchase orders that include the Equal Opportunity clause at FAR 52.222-26). (i) "Segregated facilities" as used in this provision means any waiting rooms, work areas, rest rooms and wash rooms, restaurants and other eating areas, time clocks, locker rooms and other storage or dressing areas, parking lots, drinking fountains, recreation or entertainment areas, transportation, and housing facilities provided for employees, that are segregated by explicit directive or are in fact segregated on the basis of race, color, religion, or national origin because of written or oral policies or employee custom. The term does not include separate or single-user rest rooms or necessary dressing or sleeping areas provided to assure privacy between the sexes. (ii) Seller certifies that it does not and will not maintain or provide for its employees any segregated facilities at any of its establishments, and that it does not and will not permit its employees to perform their services at any location under its control where segregated facilities are maintained. Seller agrees that a breach of this certification is a violation of the Equal Opportunity clause in the contract. (iii) Seller further agrees that (except where it has obtained identical certifications from proposed lower-tier subcontractors for specific time periods) Seller will: (a) obtain identical certifications from proposed lower-tier subcontractors before the award of subcontracts under which the subcontractor will be subject to the Equal Opportunity clause; (b) retain these certifications in its files; and (c) forward the following notice to its proposed lower-tier subcontractors (except if those subcontractors have submitted identical certifications for specific time periods): NOTICE TO PROSPECTIVE SUBCONTRACTORS OF REQUIREMENT FOR CERTIFICATIONS OF NONSEGREGATED FACILITIES. A certification of Non-segregated Facilities must be submitted before the award of a lower-tier subcontract subject to the Equal Opportunity clause. The certification may be submitted either for each subcontractor or for all subcontracts during a period (i.e., quarterly, semiannually, or annually). NOTE: The penalty for making false statements in offers is prescribed in 18 U.S.C. 1001. (b) 52.222-22 Previous Contracts and Compliance Reports. Seller represents that, if Seller has participated in a previous contract or subcontract subject either to the Equal Opportunity clause (FAR 52.222-26) of this solicitation, the clause originally contained in Section 310 of Executive Order No. 10925, or the clause contained in Section 201 of Executive Order No. 11114, that Seller has (i) filed all required compliance reports and (ii) that representations indicating submission of required compliance reports, signed by proposed subcontractors, will be obtained before subcontract awards. (c) 52.222-25 Affirmative Action Compliance. (Applicable if (i) Seller has 50 or more employees, (ii) is not exempt from the Equal Opportunity clause (FAR 52.222-26) and (iii) government contracts that exceed $50,000.) Seller represents: (i) that it has developed and has on file, [___] not developed and does not have on file, at each establishment, affirmative action programs required by the rules and regulations of the Secretary of Labor (41 CFR 60-1 and 60-2), or (ii) it [___] has not previously had contracts subject to the affirmative action programs requirement of the rules and regulations of the Secretary of Labor and that in the event such program does not presently exist Seller will develop and place in operation a written Affirmative Action Compliance Program within 120 days from the award of this Contract. (iv) Seller shall include this clause in any lower-tier order that is not exempt from the requirements of the Equal Opportunity clause (FAR 52.222-26). II. 52.203-11 Certification and Disclosure Regarding Payments to Influence Certain Federal Transactions (Applicable to solicitations/Contracts/purchase orders that exceed $100,000). (a) The definitions and prohibitions contained in the clause at FAR 52.203-12, Limitation on Payments to Influence Certain Federal Transactions, included in this solicitation or Contract are hereby incorporated by reference in paragraph (b) of this certification. (b) Seller, by signing his or her offer or by acceptance of this Contract, hereby certifies to the best of his or her knowledge and belief that on or after December 23, 1989, (1) No Federal appropriated funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress on his or her behalf in connection with the awarding of any Federal contract, the making of any Federal grant, the making of any Federal loan, the entering into of any cooperative agreement, and the extension, continuation, renewal, amendment or modification of any Federal contract, grant, loan, or cooperative agreement. (2) If any funds other than Federal appropriated funds (including profit or fee received under a covered Federal transaction) have been paid, or will be paid, to any person, for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress on his or her behalf in connection with this solicitation or Contract, Seller shall complete and submit, with its offer, OMB standard from LLL, Disclosure of Lobbying Activities, to Buyer; and (3) He or she will include the language of this certification in all lower tier subcontracts awards at any tier and require that all recipients of subcontract awards in excess of $100,000 shall certify and disclose accordingly. III. FAR 52.209-5 Certification Regarding Debarment, Suspension, Proposed Debarment, And Other Responsibility Matters. (Applicable to solicitations/Contracts/purchase orders in excess of $100,000). (a) (1) Seller certifies, to the best of its knowledge and belief, that(i) Seller and/or any of its Principals- (A) Are not presently debarred, suspended, proposed for debarment, or declared ineligible for the award of contracts by any Federal Agency. (B) Have not, within a three-year period preceding this offer or acceptance of this Contract, been convicted of or had a civil judgment rendered against them for: commission of fraud or a criminal offense in connection with obtaining, attempting to obtain, or performing a public (Federal, state, or local) contract or subcontract, violation of Federal or state antitrust statutes relating to the submission of offers; or commission of embezzlement, theft, forgery, bribery, falsification or destruction of records, making false statements, tax evasion, or receiving stolen property; and (C) Are not presently indicted for, or otherwise criminally or civilly charged by a governmental entity with, commission of any of the offenses enumerated in subdivision (a)(1)(I)(B) of this provision. (ii) The Seller has not, within a three-year period preceding this offer or Contract acceptance had one or more contracts terminated for default by any Federal agency (2) "Principals", for the purposes of this certification, means officers, directors, owners, partner, and persons having primary management or supervisory responsibilities within a business entity (e.g. general manager, plant manager, head of a subsidiary, division, or business segment, and similar positions. This certification concerns a matter within the jurisdiction of an agency of the United States and the making of a false, fictitious or fraudulent certification may render the maker subject to prosecution under section 1001, Title 18, United States Code. (b) Seller shall provide immediate written notice to Buyer if, at any time prior to Contract award, Seller learns that its certification was erroneous when submitted or has become erroneous by reason of changed circumstances. V FAR 52.223-13 Certification of Toxic Chemical Release Reporting. (Applicable to competitive contracts expected to exceed $100,000) (a) Submission of this certification is a prerequisite for making or entering into this Contract imposed by Executive Order 12969, August 8, 1995. (b) By submission of its offer or acceptance of this Contract, Seller certifies that- (1) As the owner or operator of facilities that will be used in the performance of this Contract that are subject to the filing and reporting requirements described in section 313 of the Emergency Planning and Community Rightto-Know Act of 1986 (EPCRA) (42 U.S.C. 11023) and section 6607 of the Pollution Prevention Act of 1990 (PPA) (42 U.S.C. 13106), Seller will file and continue to file for such facilities for the life of this Contract the Toxic Chemical Release Inventory Form (Form R) as described in sections 313(a) and (g) of EPCRA and section 6607 of PPA; or - (2) None of its owned or operated facilities to be used in the performance of this Contract is subject to the Form R filing and reporting requirements because each such facility is exempt for at least one of the following reasons: (i) The facility does not manufacture, process or otherwise use any toxic chemicals listed under section 313 (c) of EPCRA, 42 U.S.C. 11023(c); (ii) The facility does not have 10 or more full-time employees as specified in section 313(b)(1)(A) of EPCRA, 42 U.S.C. 11023(b)(1)(A); (iii) The facility does not meet the reporting thresholds of toxic chemicals established under section 313(f) of EPCRA, 42 U.S.C. 11023(f) (including the alternate thresholds at 40 CFR 372.27, provided an appropriate certification form has been filed with EPA); (iv) The facility does not fall with Standard Industrial Classification Code (SIC) designation 20 through 39 as set forth in FAR section 19.102 of the Federal Acquisition Regulation; or (v) The facility is not located within any State of the United States, the District of Columbia, the Commonwealth of Puerto Rico, Guam, American Samoa, the United States Virgin Islands, the Northern Mariana Islands, or any other territory or possession over which the United States has jurisdiction. 36. GOVERNMENT CLAUSES (a) Either a Government contract number or Inventory/Government (Invt/Govt) appears on the face of this Contract. Therefore, this Contract is subject to the Federal Acquisition Regulation (FAR). The above provisions and this provision 36 shall apply in addition to the Contract Terms and Conditions, i.e., provisions 1 through 32. In the event of any inconsistencies between provisions 1 through 32 and 33 through 37, provisions 33 through 37 shall take precedence. (b) Except as otherwise indicated on the face of this order, the FAR and Department of Defense Federal Acquisition Regulation Supplement (DFARS) clauses specified in this Article are incorporated herein by reference. As used in the FAR and DFARS clauses specified in this Article, "Government" and "Contracting Officer" mean Buyer. "Contractor" means "Seller, "Contract" means this Order unless the context of the clause requires otherwise, and "subcontract" means "Seller's purchase order or subcontract issued pursuant to this Order." FAR CLAUSE DATE TITLE 52.203-6 JUL 1995 Restrictions on Subcontractor Sales to the Government (applicable to orders over $100,000) ALT I OCT 1995 (ALT I is applicable to orders for commercial items) 52.203-7 JUL 1995 Anti-Kickback Procedures (except for Paragraph (c)(1)) 52.203-12 SEPT 2005 Limitation on Payments to Influence Certain Federal Transac 52.204-2 AUG 1996 Security Requirements (Applies when Seller may require acce 52.204-4 AUG 2000 Printed or Copied Double-Sided on Recycled Paper 52.211-5 AUG 2000 Material Requirements (Applies to orders for supplies that are 52.215-2 JUN 1999 Audit and Records - Negotiation (Applies to orders of $100,00 52.215-10 OCT 1997 Price Reduction for Defective Cost or Pricing Data (Applies to 52.215-11 OCT 1997 Price Reduction for Defective Cost or Pricing Data - Modificat 52.215-12 OCT 1997 Subcontractor Cost or Pricing Data 52.215-13 OCT 1997 Subcontractor Cost or Pricing Data - Modifications 52.215-15 OCT 2004 Pension Adjustments and Asset Reversions (Applies to orde 31) 52.215-18 JUL 2005 Reversion or Adjustment of Plans for Postretirement Benefits determinations will be subject to FAR Part 31) 52.215-19 OCT 1997 Notification of Ownership Changes (Applies to orders where c 52.215-20 OCT 1997 Requirements for Cost or Pricing Data or Information Other th 52.215-21 OCT 1997 Requirements for Cost or Pricing Data or Information Other T will be required for modifications). 52.219-8 MAY 2004 Utilization of Small Business Concerns (Applicable to orders e 52.219-9 JUL 2005 Small Business Subcontracting Plan (Applicable to orders tha business) 52.222-1 FEB 1997 Notice to the Government of Labor Disputes (Seller shall notif 52.222-4 JUL 2005 Contract Work Hours and Safety Standards Act - Overtime Co 52.222-20 DEC 1996 Walsh-Healey Public Contracts Act (Applicable to orders for t 52.222-26 APR 2002 Equal Opportunity (Applicable to orders of $10,000 or more u 52.222-35 DEC 2001 Equal Opportunity for Special Disabled, Vietnam Era and Oth 52.222-36 JUN 1998 Affirmative Action for Workers with Disabilities (Applicable to 52.222-37 DEC 2001 Employment Reports on Special Disabled Veterans, Veterans 52.222-41 July 2005 Service Contract Act of 1965, as amended 52.223-3 JAN 1997 Hazardous Material Identification and Material Safety Data 52.223-7 JAN 1997 Notice of Radioactive Materials 52.223-11 MAR 2001 Ozone Depleting Substances 52.223-13 AUG 2003 Certification of Toxic Chemical Release Reporting (Applicable 52.223-14 AUG 2003 Toxic Chemical Release Reporting (Applicable to first tier com 52.225-1 JUN 2003 Buy American Act - Supplies 52.225-8 FEB 2000 Duty-Free Entry (Applicable when supplies in excess of $10,0 52.225-13 FEB 2006 Restrictions on Certain Foreign Purchases 52.227-1 JUL 1995 Authorization and Consent (Applicable to orders of $25,000 o 52.227-2 AUG 1996 Notice and Assistance Regarding Patent and Copyright Infrin 52.227-9 APR 1984 Refund of Royalties (Applicable in negotiated fixed priced con 52.227-10 APR 1984 Filing of Patent Applications - Classified Subject Matter (Appli 52.227-11 JUN 1997 Patent Rights - Retention by the Contractor (Short Form) (App 52.227-12 JAN 1997 Patent Rights - Retention by the Contractor (Long Form) (App 52.228-5 JAN 1997 Insurance - Work on a Government Installation (Applicable to 52.237-2 APR 1984 Protection of Government Buildings, Equipment and Vegetati 52.242-15 AUG 1989 Stop-Work Order 52.243-6 APR 1984 Change Order Accounting 52.244-5 DEC 1996 Competition in Subcontracting (Applicable to all orders expec 52.244-6 FEB 2006 Subcontracts for Commercial Items (Applicable to orders for C 52.245-2 MAY 2004 Government Property (Fixed Price Contracts) 52.245-17 MAY 2004 Special Tooling (Fixed Price Contracts) (Applicable to special 52.245-18 FEB 1993 Special Test Equipment (Applicable if contract involves the ac 52.246-4 AUG 1996 Inspection of Services-Fixed Price 52.246-5 APR 1984 Inspection of Services-Cost Reimbursement 52.247-63 JAN 1997 Preference for U.S. Flag Air Carriers (Applicable to orders of 52.249-2 MAY 2004 Termination for Convenience of the Government (Fixed Price 52.249-8 APR 1984 Default (Fixed-Price Supply and Services) (Applicable to cont DFARS CLAUSE DATE TITLE 252.203-7001 DEC 2004 Prohibition on Persons Convicted of Fraud or Other Defense- 252.211-7000 DEC 1991 Acquisition Streamlining (Mandatory in subcontracts in exces 252.215-7000 DEC 1991 Pricing Adjustments (Applies to subcontracts that contain Sub 252.223-7001 DEC 1991 Hazard Warning Labels (Allows Buyer to ensure compliance w 252.223-7002 MAY 1994 Safety precautions for ammunition and explosives (Mandatory 252.223-7003 DEC 1991 Change in Place of Performance - Ammunition and Explosive 252.223-7006 APR 1993 Prohibition on Storage and Disposal of Toxic and Hazardous Buyer has information it needs to comply with prime contract 252.225-7001 JUN 2005 Buy American Act and Balance of Payments Program (Applie 252.225-7006 JUN 2005 Quarterly Reporting of Actual Contract Performance Outside 252.225-7012 JUNE 2004 Preference for Certain Domestic Commodities (Applies to ord 252.225-7013 JUN 2005 Duty-Free Entry 252.225-7014 JUN 2005 with Alternate I (JUN 2005) Preference for Domestic Specialty Metals (Applies to orders o subcontracts for commercial items. 252.225-7015 JUN 2005 Restriction on acquisition of hand or measuring tools. (Applie 252.225-7016 JUN 2005 Restriction on Acquisition of Ball and Roller Bearings ( Requir 252.225-7025 JUN 2005 Restriction on acquisition of forgings (Applies to subcontracts 252.225-7028 APR 2003 Exclusionary policies and practices of foreign governments. 252.227-7013 and (Alternate I) NOV 1995 Rights in Technical Data –Noncommercial items (Applies to o 252.227-7014 JUN 1995 Rights in Noncommercial Computer software and Noncomme obtained from subcontractor for delivery to Government. ). 252.227-7016 JUN 1995 Rights in Bid or Proposal Information (Applies to orders to wh 252.227-7017 JUN 1995 Identification and assertion of use, release, or disclosure rest 252.227-7019 JUN 1995 Validation of asserted restrictions-computer software (Applies 252.227-7026 APR 1988 Deferred Delivery of Technical Data or Computer Software (A 252.227-7027 APR 1988 Deferred Ordering of Technical Data or Computer Software (A specifically identified prior to order placement). 252.227-7028 JUN 1995 Technical Data or Computer Software Previously Delivered to 252.227-7030 MAR 2000 Technical Data - Withholding of Payment (Applies to orders to 252.227-7037 SEP 1999 Validation of Restrictive Markings on Technical Data (Applies 252.228-7005 DEC 1991 Accident Reporting and Investigation Involving Aircraft, Missil 252.231-7000 DEC 1991 Supplemental Cost Principles (Applies to subcontracts, excep 252.235-7003 DEC 1991 Frequency Authorization (Applies to subcontracts requiring de subcontract if included in prime contract). 252.239-7000 JUN 2004 Protection Against Compromising Emanations (Applies where 252.239-7016 DEC 1991 Telecommunications security equipment, devices, techniques 252.243-7001 DEC 1991 Pricing of Contract Modifications (Included in subcontracts wh 252.246-7001 DEC 1991 Warranty of Data (Applicable to orders requiring delivery of te 252.247-7023 MAY 2002 Transportation of Supplies by Sea (Applicable to domestic ord 252.247-7024 MAR 2000 Notification of Transportation of Supplies by Sea (Applies to s shipped in direct support of U.S. military contingency operatio Defense Transportation System in accordance with 10 U.S.C 252.249.7002 DEC 1996 Notification of anticipated contract terminations or reduction (N 37 INDEMNIFICATION FOR DEFECTIVE PRICING If Buyer is subject to any liability as a result of a failure of the Seller to comply with the requirements o Government, from and against any loss, damage, expense or liability resulting from such failure. Furth DOC ID: FAR-Services-10/12/06