UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 ______________

FORM 10-Q

______________

☒      QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2016

or

☐       TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ______________________ to _______________________

Mechanical Technology, Incorporated

(Exact name of registrant as specified in its charter)

______________

 

New York

 

000-06890

 

14-1462255

(State or other jurisdiction

of incorporation or organization)

  

(Commission File Number)

  

(I.R.S. Employer

Identification No.)

 

325 Washington Avenue Extension, Albany, New York 12205

(Address of principal executive offices)                               (Zip Code)

(518) 218-2550

(Registrant’s telephone number, including area code)

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  Yes   No

 

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T ( §232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).
Yes
  No

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer   Accelerated filer   Non-accelerated filer   (Do not check if a smaller reporting company)

Smaller reporting company  

 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes No

 

The number of shares of common stock, par value of $0.01 per share, outstanding as of July 28, 2016 was 5,248,482.

 


 

 

 

MECHANICAL TECHNOLOGY, INCORPORATED AND SUBSIDIARIES

INDEX

PART I. FINANCIAL INFORMATION

2

Item 1. Financial Statements

2

 

 

Condensed Consolidated Balance Sheets

 

As of June 30, 2016 (Unaudited) and December 31, 2015

2

 

 

Condensed Consolidated Statements of Operations (Unaudited)

 

For the Three and Six Months Ended June 30, 2016 and 2015

3

 

 

Condensed Consolidated Statements of Changes in Equity

 

For the Year Ended December 31, 2015 and the Six Months Ended June 30, 2016 (Unaudited)

4

 

 

Condensed Consolidated Statements of Cash Flows (Unaudited)

 

For the Six Months Ended June 30, 2016 and 2015

5

 

 

Notes to Condensed Consolidated Financial Statements (Unaudited)

6

 

 

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

13

 

 

Item 3. Quantitative and Qualitative Disclosures About Market Risk

18

 

 

Item 4.  Controls and Procedures

19

PART II. OTHER INFORMATION

19

 

 

Item 1.        Legal Proceedings

19

 

 

Item 1A.     Risk Factors

19

 

 

Item 2.        Unregistered Sales of Equity Securities and Use of Proceeds

19

 

 

Item 3.        Defaults Upon Senior Securities

19

 

 

Item 4.        Mine Safety Disclosures

19

 

 

Item 5.       Other Information

20

 

 

Item 6.       Exhibits

20

 

 

SIGNATURES

21

 

 
   

1


 

 

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

 

Mechanical Technology, Incorporated and Subsidiaries

Condensed Consolidated Balance Sheets

As of June 30, 2016 (Unaudited) and December 31, 2015

 

 

(Dollars in thousands, except per share)

 

June 30,

 

December 31,

 

 

 

2016

 

2015

 

Assets

 

Current Assets:

 

 

 

 

 

 

 

     Cash

 

$

529

 

$

462

 

     Accounts receivable – less allowances of $0 in 2016 and $56 in 2015

 

 

597

 

 

931

 

     Inventories

 

 

1,190

 

 

1,006

 

     Prepaid expenses and other current assets

 

 

61

 

 

72

 

       Total Current Assets

 

 

2,377

 

 

2,471

 

Property, plant and equipment, net

 

 

145

 

 

115

 

       Total Assets

 

$

2,522

 

$

2,586

 

 

 

 

 

 

 

 

 

Liabilities and Stockholders’ Equity

 

Current Liabilities:

 

 

 

 

 

 

 

     Accounts payable

 

$

297

 

$

152

 

     Accrued liabilities

 

 

1,096

 

 

907

 

       Total Current Liabilities

 

 

1,393

 

 

1,059

 

 

 

 

 

 

 

 

 

Commitments and Contingencies (Note 8)

 

 

 

 

 

 

 

Stockholders’ Equity:

 

 

 

 

 

 

 

   Common stock, par value $0.01 per share, authorized 75,000,000; 6,263,975 issued in
       both 2016 and 2015

 

 

63

 

 

63

 

   Additional paid-in capital

 

 

135,929

 

 

135,839

 

   Accumulated deficit

 

 

(121,099

)

 

(120,621

)

   Common stock in treasury, at cost, 1,015,493 shares in 2016 and 1,005,092 shares in 2015

 

 

 

(13,764

)

 

(13,754

)

     Total Stockholders’ Equity

 

 

1,129

 

 

1,527

 

     Total Liabilities and Stockholders’ Equity

 

$

2,522

 

$

2,586

 

 

 

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

 

2


 

 

Mechanical Technology, Incorporated and Subsidiaries

Condensed Consolidated Statements of Operations (Unaudited)

For the Three and Six Months Ended June 30, 2016 and 2015

 

(Dollars in thousands, except per share)

 

Three Months Ended

 

Six Months Ended

 

 

 

June 30,

 

June 30,

 

 

 

2016

 

2015

 

2016

 

2015

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Product revenue

 

$

1,808

 

$

1,951

 

$

3,033

 

$

3,587

 

Operating costs and expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

     Cost of product revenue

 

 

608

 

 

733

 

 

1,245

 

 

1,371

 

     Unfunded research and product development expenses

 

 

310

 

 

378

 

 

644

 

 

754

 

     Selling, general and administrative expenses

 

 

781

 

 

1,048

 

 

1,616

 

 

2,057

 

Operating income (loss)

 

 

109

 

 

(208

)

 

(472

)

 

(595

)

Other expense, net

 

 

(1

)

 

 

 

(6

)

 

 

     Income (loss) before income taxes

 

 

108

 

 

(208

)

 

(478

)

 

(595

)

Income tax expense

 

 

 

 

(10

)

 

 

 

(10

)

     Net income (loss)

 

$

108

 

$

(218

)

$

(478

)

$

(605

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) per share attributable to MTI (Basic)

 

$

.02

 

$

(.04

)

$

(.09

)

$

(.12

)

Income (loss) per share attributable to MTI (Diluted)

 

$

.02

 

$

(.04

)

$

(.09

)

$

(.12

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding (Basic)

 

 

5,248,482

 

 

5,258,883

 

 

5,250,892

 

 

5,258,883

 

Weighted average shares outstanding (Diluted)

 

 

5,422,842

 

 

5,258,883

 

 

5,250,892

 

 

5,258,883

 

 

 

 

 

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

 

3


 

 

MECHANICAL TECHNOLOGY, INCORPORATED AND SUBSIDIARIES

Condensed Consolidated Statements of Changes in Equity

For the Year Ended December 31, 2015

and the Six Months Ended June 30, 2016 (Unaudited)

 

(Dollars in thousands, except per share)

 

Common Stock

 

 

 

Treasury Stock

 

 

 

 

 

 

Shares

 

 

 

Amount

 

Additional Paid-

in Capital

 

 

Accumulated

Deficit

 

 

 

Shares

 

 

 

Amount

Total
Stockholders’
Equity
(Deficit)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

January 1, 2015

6,263,975

$

63

 

$

135,698

 

$

(117,789

)

1,005,092

$

(13,754

)

$

4,218

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss

-

 

-

 

 

-

 

 

(2,832

)

-

 

-

 

 

(2,832

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stock based compensation

-

 

-

 

 

141

 

 

-

 

-

 

-

 

 

141

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2015

6,263,975

$

63

 

$

135,839

 

$

(120,621

)

1,005,092

$

(13,754

)

$

1,527

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss

-

 

-

 

 

-

 

 

(478

)

-

 

-

 

 

(478

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stock based compensation

-

 

-

 

 

90

 

 

-

 

-

 

-

 

 

90

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Purchase of common stock for treasury

-

 

-

 

 

-

 

 

-

 

10,401

 

(10

)

 

(10

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

June 30, 2016

6,263,975

$

63

 

$

135,929

 

$

(121,099

)

1,015,493

$

(13,764

)

$

1,129

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

4


 

 

MECHANICAL TECHNOLOGY, INCORPORATED AND SUBSIDIARIES

Condensed Consolidated Statements of Cash Flows (Unaudited)

For the Six Months Ended June 30, 2016 and 2015

 

(Dollars in thousands)

 

Six Months Ended June 30,

 

 

2016

 

2015

 

Operating Activities

 

 

 

 

 

 

 

Net loss

 

$

(478

)

$

(605

)

Adjustments to reconcile net loss to net cash provided by (used in) operating activities:

 

 

 

 

 

 

 

   Depreciation

 

 

42

 

 

39

 

   Loss on disposal of equipment

 

 

6

 

 

 

   Provision for bad debts

 

 

(21

)

 

25

 

   Stock based compensation

 

 

90

 

 

67

 

   Provision for excess and obsolete inventories

 

 

152

 

 

11

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

Accounts receivable

 

 

355

 

 

17

 

Inventories

 

 

(336

)

 

47

 

Prepaid expenses and other current assets

 

 

11

 

 

16

 

   Accounts payable

 

 

145

 

 

33

 

   Accrued liabilities

 

 

189

 

 

(71

)

   Net cash provided by (used in) operating activities

 

 

155

 

 

(421

)

Investing Activities

 

 

 

 

 

 

 

Purchases of equipment

 

 

(78

)

 

(51

)

Principle payments from notes receivable – related party

 

 

 

 

20

 

Net cash used in investing activities

 

 

(78

)

 

(31

)

Financing Activities

 

 

 

 

 

 

 

Purchases of common stock for treasury

 

 

(10

)

 

 

Net cash used in financing activities

 

 

(10

)

 

 

Increase (decrease) in cash

 

 

67

 

 

(452

)

Cash – beginning of period

 

 

462

 

 

1,923

 

Cash – end of period

 

$

529

 

$

1,471

 

 

 

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

5


 

 

Notes to Condensed Consolidated Financial Statements (Unaudited )

 

1.             Nature of Operations

Description of Business

Mechanical Technology, Incorporated (MTI or the Company), a New York corporation, was incorporated in 1961. The Company’s core business is conducted through MTI Instruments, Inc. (MTI Instruments), a wholly-owned subsidiary.

 

MTI Instruments was incorporated in New York on March 8, 2000 and is a supplier of precision linear displacement solutions, vibration measurement and system balancing systems, and wafer inspection tools, consisting of electronic gauging instruments for position, displacement and vibration application within the industrial manufacturing/production markets, as well as the research, design and process development market; tensile stage systems for materials testing at academic and industrial research settings; and engine vibration analysis systems for both military and commercial aircraft. These tools, systems and solutions are developed for markets and applications that require the precise measurements and control of products, processes, and the development and implementation of automated manufacturing, assembly, and consistent operation of complex machinery.

 

Liquidity; Going Concern

 

The Company has historically incurred significant losses primarily due to its past efforts to fund direct methanol fuel cell product development and commercialization programs, and had an accumulated deficit of approximately $121.1 million and working capital of approximately $984 thousand at June 30, 2016. As of June 30, 2016, we had no debt and $13 thousand in commitments for capital expenditures. 

 

Based on the Company’s projected cash requirements for operations and capital expenditures, its current available cash of approximately $529 thousand and our projected 2016 cash flow pursuant to management’s current plan, management believes it will have adequate resources to fund operations and capital expenditures for the remainder of the year. If cash generated from operations is insufficient to satisfy the Company’s working capital and capital expenditure requirements, the Company may be required to sell additional equity or obtain credit facilities. The Company has no other formal commitments for funding future needs of the organization at this time and any additional financing during 2016, if required, may not be available to us on acceptable terms or at all. 

 

The Company’s financial statements have been prepared assuming the Company will continue as a going concern, which assumes the realization of assets and the satisfaction of liabilities in the normal course of business. The consolidated financial statements do not include any adjustments that might be necessary should the Company be unable to continue as a going concern. If the going concern basis were not appropriate for these financial statements, adjustments would be necessary in the carrying value of assets and liabilities, the reported expenses and the balance sheet classifications used. 

 

The Company’s history of operating cash flow deficits, its current cash position and lack of access to capital may raise doubt about its ability to continue as a going concern and its continued existence could be dependent upon several factors, including its ability to raise revenue levels and control costs to generate positive cash flows, to sell additional shares of the Company’s common stock to fund operations and to obtain credit facilities. Selling additional shares of the Company’s common stock and obtaining credit facilities may be more difficult as a result of limited access to equity markets and the tightening of credit markets. The financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or the amount of or classification of liabilities that might be necessary as a result of this uncertainty. 

 

The Company believes that the current lack of liquidity and “going concern” opinion resulted primarily from delays in entering into a new agreement with the U.S. Air Force (as discussed in our Annual Report on Form-K for the year ended December 31, 2015 in Item 7: “Management’s Discussion and Analysis of Financial Condition and Results of Operations”) and in an expected product order from Asia that was not received, as well as the Company’s cancellation of its existing lines of credit on March 24, 2016, as further discussed in Item 7: “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and elsewhere in the Annual Report and this Form 10-Q. As previously reported, the Company entered into the long-anticipated contract with the U.S. Air Force on July 1, 2016. 

 

 

 

 

 

 

 

 

 

 

 

  6


 

 

2.             Basis of Presentation

In the opinion of management, the Company’s condensed consolidated financial statements reflect all adjustments, which are of a normal recurring nature, necessary for a fair statement of the results for the periods presented in accordance with United States of America Generally Accepted Accounting Principles (U.S. GAAP) and with the instructions to Form 10-Q in Article 10 of the Securities and Exchange Commission’s (SEC) Regulation S-X.  The results of operations for the interim periods presented are not necessarily indicative of results for the full year.

 

Certain information and footnote disclosures normally included in the annual consolidated financial statements prepared in accordance with U.S. GAAP have been condensed or omitted. These unaudited condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015.

 

The information presented in the accompanying condensed consolidated balance sheet as of December 31, 2015 has been derived from the Company’s audited consolidated financial statements. All other information has been derived from the Company’s unaudited condensed consolidated financial statements for the three and six months ended June 30, 2016 and June 30, 2015.

 

Principles of Consolidation

 

The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary, MTI Instruments. All intercompany balances and transactions are eliminated in consolidation.

 

The Company records its investment in MeOH Power, Inc. using the equity method of accounting. The fair value of the Company’s interest in MeOH Power, Inc. has been determined to be $0 as of June 30, 2016 and December 31, 2015, based on MeOH Power, Inc.’s net position and expected cash flows. A s of June 30, 2016, the Company retained its ownership of approximately 47.5% of MeOH Power, Inc.’s outstanding common stock, or 75,049,937 shares, and 55.9% of the common stock and warrants issued, which includes 31,904,136 warrants outstanding.         

 

3.             Accounts Receivable

Accounts receivables consist of the following at:

 

(Dollars in thousands)

 

June 30, 2016

 

December 31, 2015

 

 

 

 

 

 

 

 

 

U.S. and State Government

 

$

4

 

$

15

 

Commercial

 

 

593

 

 

972

 

Allowance for doubtful accounts

 

 

 

 

(56

)

     Total

 

$

597

 

$

931

 

 

For the six months ended June 30, 2016 and 2015, the largest commercial customer represented 14.0% and 6.7%, respectively, and the largest governmental agency customer represented 1.3% and 3.6%, respectively, of the Company’s product revenue. As of June 30, 2016 and December 31, 2015, the largest commercial receivable represented 21.2% and 13.8%, respectively, and the largest governmental receivable represented 0.7% and 1.6%, respectively, of the Company’s accounts receivable. 

 

4.             Inventories

Inventories consist of the following at:

 

(Dollars in thousands)

 

June 30, 2016

 

December 31, 2015

 

 

 

 

 

 

 

 

 

Finished goods

 

$

446

 

$

412

 

Work in process

 

 

295

 

 

240

 

Raw materials

 

 

449

 

 

354

 

     Total

 

$

1,190

 

$

1,006

 

 

 

 

 

 

 

  7


 

 

5.             Property, Plant and Equipment

Property, plant and equipment consist of the following at:

(Dollars in thousands)

     

June 30, 2016

     

December 31, 2015

 

 

 

Leasehold improvements

 

$

39

 

$

39

Computers and related software

 

 

1,054

 

 

1,052

Machinery and equipment

 

 

867

 

 

853

Office furniture and fixtures

 

 

61

 

 

61

 

 

 

2,021

 

 

2,005

Less: Accumulated depreciation

 

 

1,876

 

 

1,890

 

 

$

145

 

$

115

               

 

Depreciation expense was $42 thousand and $80 thousand for the six months ended June 30, 2016 and the year ended December 31, 2015, respectively.

 

6.             Income Taxes

The Company’s effective income tax rate was 0% during the three and six months ended June 30, 2016. The projected annual effective tax rate is less than the Federal statutory rate of 34%, primarily due to permanent differences, the change in the valuation allowance and changes to estimated taxable income for 2016. For the three and six months ended June 30, 2015, the Company’s effective income tax rate was 4.8% and 1.7%, respectively. There was no income tax expense for the three and six months ended June 30, 2016. Income tax expense of $10 thousand for the three and six months ended June 30, 2015, respectively, related to an adjustment of the prior period estimated tax accrual.

The Company provides for recognition of deferred tax assets if the realization of such assets is more likely than not to occur in accordance with accounting standards that address income taxes. Significant management judgment is required in determining the period in which the reversal of a valuation allowance should occur. The Company has considered all available evidence, both positive and negative, such as historical levels of income and future forecasts of taxable income amongst other items, in determining its valuation allowance. In addition, the Company’s assessment requires us to schedule future taxable income in accordance with accounting standards that address income taxes to assess the appropriateness of a valuation allowance which further requires the exercise of significant management judgment.

Although the Company expects to generate levels of pre-tax earnings in the future, the Company decided to re-establish a full valuation allowance at December 31, 2015 for its deferred tax assets. This decision was based upon actual results differing from those estimates used as a basis for the previous partial valuation of the deferred tax asset.

The Company believes that the accounting estimate for the valuation of deferred tax assets is a critical accounting estimate, because judgment is required in assessing the likely future tax consequences of events that have been recognized in our financial statements or tax returns. The Company based the estimate of deferred tax assets and liabilities on current tax laws and rates and, in certain cases, business plans and other expectations about future outcomes. In the event that actual results differ from these estimates or the Company adjusts these estimates in future periods, the Company may need to adjust the recorded valuation allowance, which could materially impact our financial position and results of operations. The valuation allowance was $18.6 million at June 30, 2016 and $18.5 million at December 31, 2015. We will continue to evaluate the ability to realize our deferred tax assets and related valuation allowance on a quarterly basis.

 

7.             Stockholders’ Equity

Common Stock

 

The Company has one class of common stock, par value $.01.  Each share of the Company’s common stock is entitled to one vote on all matters submitted to stockholders.  As of June 30, 2016 and December 31, 2015, there were 5,248,482 and 5,258,883 shares of common stock, respectively, issued and outstanding.

 

 

 

 

 

 8

 

 


 

 

Treasury Stock

 

On June 11, 2015, the Company’s Board of Directors approved the repurchase of up to 525,000 shares of the Company’s outstanding shares of common stock. The Company previously entered into a stock purchase plan with a registered broker-dealer in accordance with Rule 10b5-1 under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), pursuant to which the broker-dealer had authority to purchase shares on the Company’s behalf pursuant to the Board’s authorization. Following the termination of the Company’s credit lines, discussed in Note 9 below, the Company terminated the stock repurchase plan with the broker-dealer effective March 24, 2016. During 2016, 10,401 shares of common stock were repurchased by the Company. As of June 30, 2016 and December 31, 2015, there were 1,015,493 and 1,005,092 shares, respectively, held in treasury.

 

Reservation of Shares

 

The Company had reserved common shares for future issuance as follows as of June 30, 2016:

 

Stock options outstanding

 

1,177,065

 

Common stock available for future equity awards or issuance of options

 

24,936

 

Number of common shares reserved

 

1,202,001

 

 

Income (Loss) per Share

 

The Company computes basic income (loss) per common share by dividing net income (loss) by the weighted average number of common shares outstanding during the reporting period. Diluted income (loss) per share reflects the potential dilution, if any, computed by dividing income (loss) by the combination of dilutive common share equivalents, comprised of shares issuable under outstanding investment rights, warrants and the Company’s share-based compensation plans, and the weighted average number of common shares outstanding during the reporting period. Dilutive common share equivalents include the dilutive effect of in-the-money stock options, which are calculated based on the average share price for each period using the treasury stock method. Under the treasury stock method, the exercise price of a stock option, the amount of compensation cost, if any, for future service that the Company has not yet recognized, and the amount of windfall tax benefits that would be recorded in additional paid-in capital, if any, when the stock option is exercised are assumed to be used to repurchase shares in the current period.

 

Not included in the computation of earnings per share, assuming dilution, for the six months ended June 30, 2016, were options to purchase 1,177,065 shares of the Company’s common stock. These potentially dilutive items were excluded because the Company incurred a loss during the period and their inclusion would be anti-dilutive. Not included in the computation of earnings per share, assuming dilution, for the three months ended June 30, 2016, were options to purchase 768,501 shares, respectively of the Company’s common stock. These potentially dilutive items were excluded even though the average market price of the common stock exceeded the exercise prices for a portion of the options because the calculation of incremental shares resulted in an anti-dilutive effect.

 

Not included in the computation of earnings per share, assuming dilution, for the three and six months ended June 30, 2015, were options to purchase 942,689 shares of the Company’s common stock. These potentially dilutive items were excluded because the Company incurred a loss during the periods and their inclusion would be anti-dilutive.

 

8.             Commitments and Contingencies

Commitments:

Leases

The Company and its subsidiary lease certain manufacturing, laboratory and office facilities. The lease provides for the Company to pay its allocated share of insurance, taxes, maintenance and other costs of the leased property. Under the agreement, MTI Instruments has an option to terminate the lease as of December 1, 2016. If MTI Instruments terminates the lease prior to November 2019, MTI Instruments is required to reimburse the landlord for all unamortized costs that the landlord incurred for renovations to the leased space in conjunction with the lease renewal. 

 

Future minimum rental payments required under non-cancelable operating leases (with initial or remaining lease terms in excess of one year) as of June 30, 2016 are: $113 thousand remaining in 2016, $227 thousand in 2017, $221 thousand in 2018 and $207 thousand in 2019.

 

 

 

 

  9


 

 

Warranties
 

Product warranty liabilities are included in “Accrued liabilities” in the Condensed Consolidated Balance Sheets.  Below is a reconciliation of changes in product warranty liabilities:

 

(Dollars in thousands)

 

Six Months Ended

June 30,

 

 

2016

 

2015

 

Balance, January 1

 

$

16

 

$

17

 

Accruals for warranties issued

 

 

7

 

 

9

 

Settlements made (in cash or in kind)

 

 

(3

)

 

(7

)

Balance, end of period

 

$

20

 

$

19

 

 

Employment Agreement
 

The Company has an employment agreement with one employee that provides certain payments upon termination of employment under certain circumstances, as defined in the agreement. As of June 30, 2016, the Company’s potential minimum obligation to this employee was approximately $72 thousand. 

 

Contingencies:

 

Legal

 

We are subject to legal proceedings, claims and liabilities which arise in the ordinary course of business. When applicable, we accrue for losses associated with legal claims when such losses are probable and can be reasonably estimated. These accruals are adjusted as additional information becomes available or circumstances change. Legal fees are charged to expense as they are incurred.

 

9.             Debt

 

During the first quarter of 2016, we entered into discussions with Bank of America, N.A. (the Bank) to strengthen the lines of credit and re-align their terms to be more consistent with our current business plan. During such discussions, the Bank informed the Company that based on its results for 2015 it was not in compliance with certain financial covenants of the lines. Since an agreement on new covenants could not be reached, the Company decided that the lines of credit could not be utilized and therefore terminated them on March 24, 2016. There were no amounts outstanding under the credit facilities at the time of cancellation.

 

10.          Stock Based Compensation

 

During 2016, the Company granted 261,000 options to purchase the Company’s common stock from the Mechanical Technology Incorporated 2014 Equity Incentive Plan (the 2014 Plan), which generally vest 25% on each of the first four anniversaries of the date of the award. The exercise price of these options is $0.78 per share and was based on the closing market price of the Company’s common stock on the date of grant. Using a Black-Scholes Option Pricing Model, the weighted average fair value of these options is $0.74 per share and was estimated at the date of grant. 

 

During 2016, the Company granted 2,000 options to purchase the Company’s common stock from the Mechanical

Technology Incorporated 2012 Equity Incentive Plan, which generally vest 25% on each of the first four anniversaries of the date of the award. The exercise price of these options is $0.78 per share and was based on the closing market price of the Company’s common stock on the date of grant. Using a Black-Scholes Option Pricing Model, the weighted average fair value of these options is $0.74 per share and was estimated at the date of grant. 

 

During 2015, the Company granted 140,000 options to purchase the Company’s common stock from the 2014 Plan, which generally vest 25% on each of the first four anniversaries of the date of the award. The exercise price of these options is $1.20 per share and was based on the closing market price of the Company’s common stock on the date of grant. Using a Black-Scholes Option Pricing Model, the weighted average fair value of these options is $1.14 per share and was estimated at the date of grant. 

 

 

 

 

 

 

  10


 

 

11.          Related Party Transactions

 

MeOH Power, Inc.

 

As of June 30, 2016, the Company owned an aggregate of approximately 47.5% of MeOH Power, Inc.’s outstanding common stock, or 75,049,937 shares, and 55.9% of the common stock and warrants issued, which includes 31,904,136 warrants outstanding. The number of shares of MeOH Power, Inc.’s common stock authorized for issuance is 240,000,000 as of June 30, 2016.

 

On December 18, 2013, MeOH Power, Inc. and the Company executed a Senior Demand Promissory Note (the Note) in the amount of $380 thousand to secure the intercompany amounts due to the Company from MeOH Power, Inc. upon the deconsolidation of MeOH Power, Inc. Interest accrues on the Note at the Prime Rate in effect on the first business day of the month, as published in the Wall Street Journal. At the Company’s option, all or part of the principal and interest due on this Note may be converted to shares of common stock of MeOH Power, Inc. at a rate of $0.07 per share. Interest began accruing on January 1, 2014. The Company recorded a full allowance against the Note. As of June 30, 2016 and December 31, 2015, $270 thousand and $266 thousand, respectively, of principal and interest are available to convert into shares of common stock of MeOH Power, Inc . Any adjustments to the allowance are recorded as miscellaneous expense during the period incurred.     

 

12.          Recent Accounting Standards or Updates Not Yet Effective

The Company considered the applicability and impact of all accounting standard updates (ASUs). ASUs not mentioned below were assessed and determined to be either not applicable or are expected to have minimal impact on our consolidated financial position or results of operations.

 

In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update 2014-09 (Revenue from Contracts with Customers ) to clarify the principles for recognizing revenue and to develop a common revenue standard for GAAP and International Financial Reporting Standards. The standard is principles-based and provides a five-step model to determine when and how revenue is recognized. The core principle is that a company should recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. This standard, as amended, will be effective for the Company for annual and interim reporting periods beginning after December 15, 2017. This standard may be applied retrospectively to each prior period presented or retrospectively with the cumulative effect recognized as of the date of initial application. Early adoption is permitted, but no earlier than calendar 2017. This standard could impact the timing and amounts of revenue recognized. The Company is currently evaluating the impact of this standard on its consolidated financial statements.

 

In August 2014, the FASB issued ASU 2014-15 (Presentation of Financial Statements – Going Concern ), which requires management to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern and provide related footnote disclosures. This standard will be effective for the Company for annual and interim reporting periods ending after December 15, 2016. Early adoption is permitted for financial statements that have not been previously issued. This standard allows for either a full retrospective or modified retrospective transition method. The Company is currently evaluating the impact of this standard on its consolidated financial statements.

 

In February 2015, the FASB issued ASU 2015-02 (Consolidation (Topic 810): Amendments to the Consolidation Analysis), which changes the analysis that a reporting entity must perform to determine whether it should consolidate certain types of legal entities. This standard became effective for the Company beginning in the first quarter of 2016. The Company’s adoption of this standard had no impact on its consolidated financial statements.

 

In July 2015, the FASB issued ASU 2015-11 (Inventory (Topic 330): Simplifying the Measurement of Inventory), which applies to inventory that is measured using first-in, first-out (FIFO) or average cost. Under the updated guidance, an entity should measure inventory that is within scope at the lower of cost and net realizable value, which is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. Subsequent measurement is unchanged for inventory that is measured using last-in, last-out (LIFO). This standard will be effective for the Company for annual and interim periods beginning after December 15, 2016, and should be applied prospectively with early adoption permitted at the beginning of an interim or annual reporting period.  The Company is currently evaluating the impact of this standard on its consolidated financial statements.

 

In November 2015, the FASB issued ASU 2015-17 (Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes) as part of its ongoing simplification initiative, with the objective of reducing complexity in accounting standards. The amendments in this standard require entities that present a classified balance sheet to classify all deferred tax liabilities and assets as a noncurrent amount. This guidance does not change the offsetting requirements for deferred tax liabilities and assets, which results in the presentation of one amount on the balance sheet. Additionally, the amendments in this standard align the deferred income tax presentation with the requirements in International Accounting Standards (IAS) 1 (Presentation of Financial Statements.) This standard will be effective for the Company for annual and interim reporting periods beginning on or after December 15, 2016. The Company is currently evaluating the impact of this standard on its consolidated financial statements.

 

 

 

  11


 

 

 

In January 2016, the FASB issued ASU 2016-01 (Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Liabilities) the main objective of which is to enhance the reporting model for financial instruments to provide users of financial statements with more decision-useful information and address certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. This standard will be effective for the Company for annual and interim reporting periods beginning on or after December 15, 2017, and early adoption is permitted. The Company is currently evaluating the impact of this standard on its consolidated financial statements.

 

In February 2016, the FASB issued ASU 2016-02 (Leases (Topic 842)) the main objective of which requires lessees to put most leases on their balance sheet but recognize expenses on their income statement in a manner similar to current accounting requirements. This standard will be effective for the Company for annual and interim reporting periods beginning on or after December 15, 2018, and early adoption is permitted. The Company is currently evaluating the impact of this standard on its consolidated financial statements.

 

In March 2016, the FASB issued ASU 2016-09 (Compensation–Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting), which simplifies several aspects related to the accounting for employee share-based payment transactions. This standard addresses several aspects of the accounting for share-based payment award transactions, including: (a) income tax consequences; (b) classification of awards as either equity or liabilities; and (c) classification on the statement of cash flows. This standard will be effective for the Company for annual and interim reporting periods beginning after December 15, 2016, and early adoption is permitted. The Company is currently evaluating the impact of this standard on its consolidated financial statements.

 

In April 2016, the FASB issued ASU 2016-10 (Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing), which clarifies the identification of performance obligations and the licensing implementation guidance. This standard is expected to reduce the cost and complexity of applying the guidance on identifying promised goods or services. This standard will be effective for the Company for annual and interim reporting periods beginning after December 15, 2017. The Company is currently evaluating the impact of this standard on its consolidated financial statements.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  12


 

 

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

 

Unless the context requires otherwise, the terms “we,” “us,” and “our” refer to Mechanical Technology, Incorporated, a New York Corporation, and “MTI Instruments” refers to MTI Instruments, Incorporated, a New York corporation and our wholly-owned subsidiary.

 

The following discussion of our financial condition and results of operations should be read in conjunction with the Condensed Consolidated Financial Statements and the related notes thereto included in Item 1 of Part I of this Quarterly Report on Form 10-Q and the audited Consolidated Financial Statements and the related notes thereto and Management’s Discussion and Analysis of Financial Condition and Results of Operations for the year ended December 31, 2015 contained in our 2015 Annual Report on Form 10-K.

 

In addition to historical information, the following discussion contains forward-looking statements, which involve risk and uncertainties. Our actual results could differ materially from those anticipated in the forward-looking statements.  Important factors that could cause actual results to differ include those set forth in Part I Item 1A-Risk Factors in our Annual Report on Form 10-K for the fiscal year ended December 31, 2015, as filed on March 30, 2016, and elsewhere in this Quarterly Report on Form 10-Q. Readers should not place undue reliance on our forward-looking statements. These forward-looking statements speak only as of the date on which the statements were made and are not guarantees of future performance. Except as may be required by applicable law, we do not undertake or intend to update any forward-looking statements after the date of this Quarterly Report on Form 10-Q. Please see “Statement Concerning Forward-Looking Statements” below.

 

Overview

 

MTI’s core business is conducted through MTI Instruments, Inc., a wholly-owned subsidiary. MTI Instruments is a supplier of precision linear displacement solutions, vibration measurement and system balancing solutions, precision tensile measurement systems and wafer inspection tools, serving markets that require 1) the precise measurements and control of products and processes in automated manufacturing, assembly, and consistent operation of complex machinery, 2) metrology tools for semiconductor and solar wafer characterization, 3) tensile stage systems for materials testing and precision linear displacement gauges all for use in academic and industrial research and development settings, and 4) engine balancing and vibration analysis systems for both military and commercial aircraft.

 

We are continuously working on ways to increase our sales reach, including expanded worldwide sales coverage and enhanced internet marketing.  

 

Recent Developments

 

On July 1, 2016, the Company entered into a contract with the U.S. Air Force to supply the Company’s PBS 4100+ and 4100R+ vibration measurement and balancing systems, along with associated accessories and maintenance. The total contract, if fully executed, has a value of $9.35 million, with the initial basic one-year term of the contract having an estimated value of approximately $1.8 million.

 

In addition to the basic term of the contract, the contract includes four option periods that the U.S. Air Force may exercise on or before the last day of the previous basic contract period or option period. Each option period covers the U.S. Air Force’s option to purchase the Company’s products set forth in the contract with respect to that specific option. Option I (concurrent with the initial basic one-year term) may be exercised at any time, from time-to-time, through June 30, 2017, Option II may be exercised at any time, from time-to-time, through June 30, 2018, Option III may be exercised at any time, from time-to-time, through June 30, 2019, and Option IV may be exercised at any time, from time-to-time, through June 30, 2020. Within this schedule, the U.S. Air Force may exercise multiple option periods simultaneously. The contract provides the U.S. Air Force with an option to extend the term of the contract, but no such extension will be beyond June 30, 2021. 

 

 

 

 

 

 

 

 

 

 

  13


 

 

Consolidated Results of Operations

Consolidated Results of Operations for the Three and Six Months Ended June 30, 2016 Compared to the Three and Six Months Ended June 30, 2015.

 

The following table summarizes changes in the various components of our net income (loss) during the three months ended June 30, 2016 compared to the three months ended June 30, 2015.

 

(Dollars in thousands)

Three Months

Ended

June 30,

2016

     

Three Months Ended

June 30,

2015

     

 

 

 

 

$

Change

 

 

 

 

 

%

Change

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Product revenue

$

1,808

 

 

$

1,951

 

 

$

(143

)

 

(7.3)%

Operating costs and expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

    Cost of product revenue

$

608

 

 

$

733

 

 

$

(125

)

 

(17.1)% 

    Research and product development expenses

310

 

 

$

378

 

 

$

(68

)

 

(18.0)%

    Selling, general and administrative expenses

781

 

 

$

1,048

 

 

$

(267

)

 

(25.5)%

Operating income (loss)

109

 

 

$

(208

)

 

$

317

 

 

152.4% 

Other expense, net

(1

)

 

$

 

 

$

(1

)

 

0% 

Income tax expense

 

 

$

(10

)

 

$

10

 

 

100.0% 

Net income (loss)

$

108

 

 

$

(218

)

 

$

326

 

 

149.5%

 

The following table summarizes changes in the various components of our net loss during the six months ended June 30, 2016 compared to the six months ended June 30, 2015.

 

(Dollars in thousands)

Six

Months

Ended

June 30,

2016

     

Six

Months Ended

June 30,

2015

     

 

 

 

 

$

Change

 

 

 

 

 

%

Change

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Product revenue

$

3,033

 

 

$

3,587

 

 

$

(554

)

 

(15.4)%

Operating costs and expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of product revenue

$

1,245

 

 

$

1,371

 

 

$

(126

)

 

(9.2)% 

    Research and product development expenses

644

 

 

$

754

 

 

$

(110

)

 

(14.6)%

Selling, general and administrative expenses

1,616

 

 

$

2,057

 

 

$

(441

)

 

(21.4)%

Operating loss

(472

)

 

$

(595

)

 

$

123

 

 

20.7% 

Other expense, net

(6 

)

 

$

   

$

(6

)

 

0.0% 

Income tax expense

 

 

$

(10

)

 

$

10

 

 

100.0% 

Net loss

$

(478

)

 

$

(605

)

 

$

127

 

 

21.0%

 

Product Revenue: Product revenue consists of revenue recognized from the MTI Instruments’ product lines.

 

Product revenue for the three months ended June 30, 2016 decreased by $143 thousand, or 7.3%, to $1.8 million from $2.0 million during the three months ended June 30, 2015. The decrease in product revenue is attributable to reduced instrumentation product shipments to Asia, combined with a minor decline in turbo-machinery sales. For the three months ended June 30, 2016, the largest commercial customer for the segment was an Asian distributor, which accounted for 12.8% of the second quarter 2016 revenue. In 2015, the largest commercial customer for the segment was a system integrator in the U.S., which accounted for 12.4% of the second quarter 2015 revenue. The U.S. Air Force was the largest government customer for the three months ended June 30, 2016 and June 30, 2015, accounting for 1.2% and 3.4%, respectively, of revenue. 

 

 

 

  14


 

 

Product revenue for the six months ended June 30, 2016 decreased by $554 thousand, or 15.4%, to $3.0 million from $3.6 million during the six months ended June 30, 2015. The decrease in product revenue is attributable to diminished capital spending on new equipment from Asian customers, along with reduced commercial engine vibration system sales. For the six months ended June 30, 2016, the largest commercial customer for the segment was an Asian distributor, which accounted for 14.0% of the year-to-date 2016 revenue. In 2015, the largest commercial customer for the segment was a system integrator in the U.S., which accounted for 6.7% of revenue during the first six months of 2015. The U.S. Air Force was the largest government customer for the six months ended June 30, 2016 and June 30, 2015, accounting for 1.3% and 3.6%, respectively, of revenue. 

 

Information regarding government contracts included in product revenue is as follows:

 

(Dollars in thousands)

 

Revenues for the

Three Months Ended

June 30,

Revenues for the

Six Months Ended

June 30,

Contract
Revenues to
Date June 30,

Total Contract
Orders Received
to Date June 30,

 

Contract (1)

Expiration

2016

 

2015

 

2016

 

2015

2016

2016

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$6.5 million U.S. Air Force Maintenance

09/27/2014 (2)

$

 

$

 

$

 

$

 

$

5,006

 

$

5,006

 

 

$4.1 million U.S. Air Force Systems

08/29/2015 (2)

$

 

$

 

$

 

$

 

$

2,793

 

$

2,793

 

 

_________________

(1)   Contract values represent maximum potential values at time of contract placement and may not be representative of actual results.

(2)     Date represents expiration of contract, including the exercise of option extensions. No additional orders are expected under any of these specific contracts. 

 

On July 1, 2016, we received a follow up contract from the U.S. Air Force to the two maintenance and systems contracts noted in the above table. This current contract is for a five year supply of PBS 4100+ and 4100R+ systems, accessories and maintenance. We expect to start receiving delivery orders under this contract in the third quarter of 2016.

 

Cost of Product Revenue; Gross Margin: Cost of product revenue includes the direct material and labor cost as well as an allocation of overhead costs that relate to the manufacturing of products we sell. In addition, cost of product revenue also includes the labor and material costs incurred for product maintenance, replacement parts and service under our contractual obligations.

 

Cost of product revenue for the three months ended June 30, 2016 decreased by $125 thousand, or 17.1%, to $608 thousand from $733 thousand for the three months ended June 30, 2015. Gross profit as a percentage of product revenue rose from 62.4% during the second quarter last year to 66.4% for the second quarter of 2016. This upturn in gross profit was attributable to lower overhead costs corresponding with reduced staffing, along with improved inventory management reducing charges to reserves during the period for potentially obsolete stock. The decrease in the cost of product revenue is attributable to the decreased sales as discussed above under Product Revenue as well as the lower overhead costs responsible for the improvement in the profit margin.

 

Cost of product revenue for the six months ended June 30, 2016 decreased by $126 thousand, or 9.2%, to $1.2 million from $1.4 million for the six months ended June 30, 2015. The decrease in cost of product revenue is attributable to the decreased sales as discussed above under Product Revenue as well as lower overhead costs from reduced staffing. Gross profit as a percentage of product revenue dropped from 61.8% during the six months ended June 30, 2015 to 59.0% during the first half of 2016. This decline was attributable to a one-time charge in the first quarter of 2016 to write down the value of potentially surplus inventory. Without this one-time charge, gross profit as a percentage of product revenue would have been 63.7%, an improvement over the same period last year attributable to lower overhead costs from reduced staffing. 

 

Research and Product Development Expenses: Research and product development expenses includes the costs of materials to build development and prototype units, cash and non-cash compensation and benefits for the engineering and related staff, expenses for contract engineers, fees paid to outside suppliers for subcontracted components and services, fees paid to consultants for services provided, materials and supplies consumed, facility related costs such as computer and network services, and other general overhead costs associated with our research and development activities, to the extent not reimbursed by our customers.

 

Research and product development expenses decreased $68 thousand and $110 thousand, respectively, during the three and six months ended June 30, 2016 compared to the comparable 2015 periods due to decreased material spending on current development projects and reduced staffing. 

 

 

 

 

 

  15


 

 

Selling, General and Administrative Expenses: Selling, general and administrative expenses includes cash and non-cash compensation, benefits and related costs in support of our general corporate functions, including general management, finance and accounting, human resources, selling and marketing, information technology and legal services.

 

Selling, general and administrative expenses for the three months ended June 30, 2016 decreased by $267 thousand, or 25.5%, to $781 thousand from $1.0 million for the three months ended June 30, 2015. Selling, general and administrative expenses for the six months ended June 30, 2016 decreased by $441 thousand, or 21.4%, to $1.6 million from $2.1 million for the six months ended June 30, 2015. These decreases are the result of reduced staffing and travel, lower sales commissions and a $28 thousand reduction to prior year incentive compensation accruals compared to the comparable 2015 periods. 

 

Operating Income (Loss): Operating income was $109 thousand for the three months ended June 30, 2016 compared to an operating loss of $208 thousand for the three months ended June 30, 2015. The increase in operating income was a result of the factors noted above, primarily the improvement in gross margins combined with decreased spending in staffing, travel, development project material, sales commissions and a reduction in accrued compensation. 

 

Operating loss was $472 thousand for the six months ended June 30, 2016 compared to $595 thousand for the six months ended June 30, 2015. The decrease in operating loss was a result of the factors noted above, including decreased spending in staffing, travel, development project material, sales commissions and a reduction in accrued compensation.

 

Other (Expense): Other expense was $1 thousand for the three months ended June 30, 2016 and $6 thousand for the six months ended June 30, 2016. The expense for the six months ended June 30, 2016 primarily related to a $6 thousand loss recorded on the disposal of equipment in the first quarter.

 

Net Income (Loss): Net income was $108 thousand for the three months ended June 30, 2016 compared to a net loss of $218 thousand for the three months ended June 30, 2015. The increase in net income is primarily attributable to the improvement in gross margins combined with decreased spending in staffing, travel, development project material, sales commissions and a reduction in accrued compensation. 

 

Net loss was $478 thousand for the six months ended June 30, 2016 compared to a net loss of $605 thousand for the six months ended June 30, 2015. The decrease in net loss is primarily attributable to the improvement in gross margins, exclusive of the one-time charge for potentially surplus inventory, combined with decreased spending in staffing, travel, development project material, sales commissions and a reduction in accrued compensation.

 

Management’s Plan, Liquidity and Capital Resources

 

Several key indicators of our liquidity are summarized in the following table:

 

(Dollars in thousands)

Six Months Ended

 

Six Months Ended

 

Year Ended

 

June 30,

 

June 30,

 

December 31,

 

2016

     

2015

     

2015

Cash

$

529

 

 

$

1,471

 

 

$

462

 

Working capital

 

984

 

 

 

2,213

 

 

 

1,413

 

Net loss

 

(478

)

 

 

(605

)

 

 

(2,832

)

Net cash provided by (used in) operating activities

 

155

 

 

 

(421

)

 

 

(1,426

)

Purchase of property, plant and equipment

 

(78

)

 

 

(51

)

 

 

(55

)

 

The Company has historically incurred significant losses (the majority, until 2012, stemming from the direct methanol fuel cell product development and commercialization programs of its former subsidiary, MeOH Power, Inc.) and had a consolidated accumulated deficit of $121.1 million as of June 30, 2016. Management believes that the Company currently has adequate resources to avoid future cost-cutting measures that could adversely affect its business. As of June 30, 2016, we had no debt, $13 thousand in commitments for capital expenditures and approximately $529 thousand of cash available to fund our operations.

 

Based on business developments, including changes in production levels, staffing requirements and network infrastructure improvements, additional capital equipment may be required in the foreseeable future. Based on management’s projections, we expect to spend approximately $150 thousand on capital equipment and $1.3 million in research and development on MTI Instruments’ products during 2016. We anticipate financing any future expenditures and to continue funding our operations from our current cash position and our projected 2016 cash flow. We may also seek to supplement our resources by obtaining new credit facilities. The Company has no other formal commitments for funding future needs of the organization at this time and such additional financing during 2016, if required, may not be available to us on acceptable terms or at all.

 

 

 

  16


 

 

 

While it cannot be assured, management believes that, due in part to our current working capital level, recent replacements in sales and engineering staff, effective inventory management and stabilized spending, the Company should be able to generate sufficient cash flows to fund the Company’s active operations for the foreseeable future, even in the absence of lines of credit following their termination in March 2016, as discussed below. If our revenue estimates are off either in timing or amount, however, the Company may need to implement additional steps to ensure liquidity including, but not limited to, the deferral of planned capital spending and/or delaying existing or pending product development initiatives. Such steps, if required, could potentially have a material and adverse effect on our business, results of operations and financial condition. See Note 1 to the consolidated financial statements included in this report for additional information regarding liquidity and going concern.

 

Debt

 

During the first quarter of 2016, we entered into discussions with Bank of America, N.A. (the Bank) to strengthen the lines of credit and re-align their terms to be more consistent with our current business plan. During such discussions, the Bank informed the Company that based on its results for 2015 it was not in compliance with certain financial covenants of the lines. Since an agreement on new covenants could not be reached, the Company decided that the lines of credit could not be utilized and therefore terminated them on March 24, 2016. There were no amounts outstanding under the credit facilities at the time of cancellation.

 

Backlog, Inventory and Accounts Receivable

 

At June 30, 2016, our order backlog was $376 thousand compared to $234 thousand at December 31, 2015. The increase in backlog from December 2015 was due to orders for several tensile testing stages which, per the customer’s requests, will not be delivered until the third quarter.

 

Our inventory turnover ratios and average accounts receivable days outstanding for the trailing 12 month periods and their changes at June 30, 2016 and 2015 are as follows:

 

 

 

2016

 

2015

 

Change

 

Inventory turnover

 

1.9

 

3.8

 

(1.9

)

Average accounts receivable days outstanding

 

46

 

44

 

2

 

 

The current twelve-month inventory turns have declined due to a 34% increase in average inventory balances corresponding to anticipated orders from Asia and the U.S. Air Force. 

 

The average accounts receivable days’ outstanding increased two days during the last 12 months due to a proportionate increase in commercial sales compared to U.S. government sales, as commercial customers take a longer period to pay than the U.S. government.

 

Off-Balance Sheet Arrangements

 

We have no off balance sheet arrangements.

 

Critical Accounting Policies and Significant Judgments and Estimates

The discussion and analysis of our financial condition and results of operations are based upon our consolidated financial statements, which have been prepared in accordance with accounting principles generally accepted in the United States of America. Note 2, Accounting Policies, to the consolidated financial statements in our Annual Report on Form 10-K for the year ended December 31, 2015 includes a summary of our most significant accounting policies. There have been no material changes to the critical accounting policies previously disclosed in our Annual Report on Form 10-K for the year ended December 31, 2015. The preparation of these condensed consolidated financial statements requires management to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues, expenses, and related disclosure of assets and liabilities. On an ongoing basis, we evaluate our estimates and judgments, including those related to revenue recognition, inventories, income taxes and stock-based compensation. We base our estimates on historical experience and on various other factors that we believe are reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions. Periodically, our management reviews our critical accounting estimates with the Audit Committee of our Board of Directors.

 

 

 

  17


 

 

Statement Concerning Forward-Looking Statements

This Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (Securities Act) and Section 21E of the Securities Exchange Act of 1934, as amended (Exchange Act). Any statements contained in this Form 10-Q that are not statements of historical fact may be forward-looking statements. When we use the words “anticipate,” “estimate,” “plans,” “projects,” “continuing,” “ongoing,” “expects,” “management believes,” “we believe,” “we intend,” “should,” “could,” “may,” “will” and similar words or phrases, we are identifying forward-looking statements. Such forward-looking statements include, but are not limited to, statements regarding:

  • statements with respect to management’s strategy and planned initiatives;

  • projected taxable income and the ability to use deferred tax assets (currently held at a full valuation allowance);

  • our expectations regarding the issuance of delivery orders under the new U.S. Air Force contract and the timing thereof;

  • our expectations regarding the receipt of an anticipated product order;

  • our ability to continue as a going concern;

  • management’s belief that it will have adequate resources to fund the Company’s operations and capital expenditures   for the remainder of the year;

  • anticipated cash flows for the next twelve months;

  • that the Company should be able to generate sufficient cash flows to fund its active operations in the foreseeable future;

  •   the expectation that future cost-cutting measures will be avoided;

  •   future capital expenditures and spending on research and development;

  • needing to purchase equipment; and

  • expected funding of future cash expenditures.

 

Forward-looking statements involve risks, uncertainties, estimates and assumptions that may cause our actual results, performance or achievements to be materially different from those expressed or implied by forward-looking statements. Important factors that could cause these differences include the following:

  • sales revenue growth may not be achieved or maintained;  
  • the loss of one or more customers upon whom we are dependent;
  • our lack of long-term purchase commitments from our customers and the ability of our customers to cancel, reduce, or delay orders for our products;  
  • our inability to build and maintain relationships with our customers;  
  • our inability to develop and utilize new technologies that address the needs of our customers;
  • our inability to obtain new credit facilities;
  • the cyclical nature of the electronics and military industries;  
  • the uncertainty of the U.S. and global economy, including as a result of the United Kingdom’s impending exit from the European Union;  
  • the impact of future exchange rate fluctuations;  
  • failure of our strategic alliances to achieve their objectives or perform as contemplated and the risk of cancellation or early termination of such alliance by either party;  
  • the loss of services of one or more of our key employees or the inability to hire, train, and retain key personnel;
  • risks related to protection and infringement of intellectual property;
  • our occasional dependence on sole suppliers or a limited group of suppliers;
  • our ability to generate income to realize the tax benefit of our historical net operating losses;
  • risks related to the limitation of the use, for tax purposes, of our net historical operating losses in the event of certain ownership changes; and  
  • other factors discussed under the heading “Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended December 31, 2015.

 

Forward-looking statements speak only as of the date they are made. You should not put undue reliance on any forward-looking statements. We assume no obligation to update forward-looking statements to reflect actual results, changes in assumptions, or changes in other factors affecting forward-looking information, except to the extent required by applicable securities laws. If we do update one or more forward-looking statements, no inference should be drawn that we will make additional updates with respect to those or other forward-looking statements.

 

Item 3. Quantitative and Qualitative Disclosures About Market Risk

 

Not applicable.

 

  18


 

 

Item 4. Controls and Procedures

The certifications of our Chief Executive Officer and Chief Financial Officer attached as Exhibits 31.1 and 31.2 to this Quarterly Report on Form 10-Q include, in paragraph 4 of such certifications, information concerning our disclosure controls and procedures and internal control over financial reporting. Such certifications should be read in conjunction with the information contained in this Item 4 for a more complete understanding of the matters covered by such certifications.

 

(a) Evaluation of Disclosure Controls and Procedures

Our management, with the participation of our Chief Executive Officer and our Chief Financial Officer, evaluated the effectiveness of MTI’s disclosure controls and procedures as of June 30, 2016. The term “disclosure controls and procedures,” as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act, means controls and other procedures of a company that are designed to ensure that information required to be disclosed by a company in the reports that it files or submits under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the SEC’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by a company in the reports that it files or submits under the Exchange Act is accumulated and communicated to the company’s management, including its principal executive and principal financial officers, as appropriate to allow timely decisions regarding required disclosure. We recognize that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving their objectives and we necessarily apply our judgment in evaluating the cost-benefit relationship of possible controls and procedures. Based on the evaluation of our disclosure controls and procedures as of June 30, 2016, our Chief Executive Officer and Chief Financial Officer concluded that, as of such date, our disclosure controls and procedures were effective at the reasonable assurance level.

 

(b) Changes in Internal Control Over Financial Reporting

There have been no changes in our internal control over financial reporting, as such term is defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act, during our fiscal quarter ended June 30, 2016 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

 

 

PART II. OTHER INFORMATION

                                                    

Item 1.            Legal Proceedings 

At any point in time, we may be involved in various lawsuits or other legal proceedings. Such lawsuits could arise from the sale of products or services or from other matters relating to our regular business activities, compliance with various governmental regulations and requirements, or other transactions or circumstances. We do not believe there are any such proceedings presently pending. See Note 8, Commitments and Contingencies, to our condensed consolidated financial statements for further information.

 

Item 1A.        Risk Factors

Part II, Item 1A (Risk Factors) of our most recently filed Annual Report on Form 10-K with the Securities and Exchange Commission (SEC), filed on March 30, 2016, sets forth information relating to important risks and uncertainties that could materially adversely affect our business, financial condition and operating results. Except to the extent that information disclosed elsewhere in this Quarterly Report on Form 10-Q relates to such risk factors (including, without limitation, the matters described in Part I, Item 2 (Management’s Discussion and Analysis of Financial Condition and Results of Operations – Statement Concerning Forward Looking Statements), there have been no material changes to our risk factors disclosed in our most recently filed Annual Report on Form 10-K. However, those risk factors continue to be relevant to an understanding of our business, financial condition and operating results and, accordingly, you should review and consider such risk factors in making any investment decision with respect to our securities.

 

Item 2.          Unregistered Sales of Equity Securities and Use of Proceeds

None

 

Item 3.          Defaults Upon Senior Securities

None

 

Item 4.          Mine Safety Disclosures

Not applicable.

 

 

  19


 

 

Item 5.         Other Information

Not applicable.

 

Item 6.         Exhibits

Exhibit No.

Description

10.1#

Contract dated July 1, 2016 between Mechanical Technology, Incorporated and the U.S. Air Force

31.1

Rule 13a-14(a)/15d-14(a) Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, of Kevin G. Lynch

31.2

Rule 13a-14(a)/15d-14(a) Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, of Frederick W. Jones

32.1

Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, of Kevin G. Lynch

32.2

Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, of Frederick W. Jones

101.INS*

XBRL Instance Document

101.SCH*

XBRL Taxonomy Extension Schema Document

101.CAL*

XBRL Taxonomy Extension Calculation Linkbase Document

101.DEF*

XBRL Taxonomy Definition Linkbase Document

101.LAB*

XBRL Taxonomy Extension Label Linkbase Document

101.PRE*

XBRL Taxonomy Extension Presentation Linkbase Document

 

All other exhibits for which no other filing information is given are filed herewith.

 

# Certain portions of this exhibit have been omitted based upon a request for confidential treatment. The omitted portions have been filed with the Securities and Exchange Commission pursuant to our application for confidential treatment. The items are identified in the attached exhibit with “**”.

* Submitted electronically herewith. Attached as Exhibit 101 are the following materials from the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2016, formatted in eXtensible Business Reporting Language (XBRL) and tagged as blocks of text and including detailed tags: (i) Condensed Consolidated Balance Sheets at June 30, 2016 and December 31, 2015; (ii) Condensed Consolidated Statements of Operations for the Three and Six Months Ended June 30, 2016 and 2015; (iii) Condensed Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2016 and 2015; and (iv) related notes.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  20


 

 

 

 

 

 

 

 

 

 

 

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

 

 

 

 

      Mechanical Technology, Incorporated


Date: August 4
, 2016

 

By: 


/S/ Kevin G. Lynch

 

 

 

Kevin G. Lynch
Chief Executive Officer

 

 

By: 


/S/ Frederick W. Jones

 

 

 

Frederick W. Jones
Chief Financial Officer

 

 

 

 

 

 

 

 

 

21  


 

 

 

      Page 3 of 80
Indefinite Delivery Contract FA8519-16-D-0003

SUPPLIES OR SERVICES AND PRICES/COSTS

Notes Specific to All Contract Periods of Contract:

  1. This contract establishs a Requirements Type contract with a Basic and Four Option Periods for the Repair and Production of the PBS 4100 unit (Portable Balancing System).

  2. Each option may be exercised on or before the last day of the previous basic contract period or option period.    An option is considered to have been exercised at the time the Government provides the unilaterally executed contract modification to the contractor via email.

  3. See "Delivery Requirements" Clause.

  4. The Best Estimated Quantities (BEQs) are not a representation to an offeror or contractor that the estimated quantity will be required or ordered, or that conditions affecting requirements will be stable or normal. Additionally, failure of the Government to furnish such items in the amounts or quantities described in the Schedule as “estimated” will not entitle the contractor to any equitable adjustment in price under the Government Property clause of the contract.

The period of performance for the basic contract period shall be effective at time of contract award through 365 days.

        New Production - PBS4100+    
 
 
Item No.                
0001                
  Firm Fixed Price            
  Best   U/I   Unit Price         Estimated Total Price  
  Estimated              
  Qty              
  13   EA   $**         $**  
 
  NSN: 6635-01-630-9391 KV          
  Balancing Machine            
  Manufacturer       Part Number        
  26741       **        
  Associated Document(s)   Line Item(s)        
  FD20601570695     0001        
 
  Limitations of Liability: Other Than High Value Item        
 
  Inspection: Origin            
  Acceptance: Origin          
  Quality Assurance: Commercial Item Inspection        
  Class I ODS Substance   Application/Use     Quantity  
  None       None       None  
  Type / Ship To     PACRN  

Mark For  

 
  A TBD       PAA        
  Type / Ship To   Quantity (U/I)  

*ARO Contract  

_  

Req No / Pri  
Required                
Delivery                
  A TBD     13 EA   *90 Calendar Days    

 


 

                 
              Page 4 of 80  
         

Indefinite Delivery Contract FA8519-16-D-0003  

 
        New Production      
 
 
Item No.                
0002                
  Firm Fixed Price            
  Best   U/I   Unit Price         Estimated Total Price  
  Estimated              
  Qty              
  1   EA   $**         $**  
 
  NSN: 4920-01-624-5966 KV          
  Test Set Subassembly          
  Manufacturer       Part Number        
  26741       **        
  Associated Document(s)   Line Item(s)        
  FD20601570695     0002        
 
  Limitations of Liability: Other Than High Value Item        
 
  Inspection: Origin            
  Acceptance: Origin          
  Inspection/Acceptance Report:   Receiving Report Required      
  Quality Assurance: Standard Inspection        
  IUID Required: No            
  Type / Ship To     PACRN   Mark For    
  A TBD       PAA        
  Type / Ship To   Quantity (U/I)  

*ARO Contract  

_  

Req No / Pri  

Required                
Delivery                
  A TBD     1 EA   *90 Calendar Days    

 

      PBS-4100D+    
 
 
Item No.            
0003            
  Firm Fixed Price        
  Best   U/I Unit Price       Estimated Total Price  
  Estimated          
  Qty          
  5   EA $**       $**  
 
  NSN: 6635-01-630-9391 KV        
  Balancing Machine        
  Associated Document(s)   Line Item(s)      
  FD20601590517   0001      
 
  Limitations of Liability: Other Than High Value Item      
 
  Inspection: Origin        
  Acceptance: Origin        
  Inspection/Acceptance Report:  

Receiving Report Required  

 
  Quality Assurance: Contractor Responsibility for Inspection    
  Type / Ship To   PACRN  

Mark For  

 
  A TBD     PAA        

 


 

             
          Page 5 of 80  
      Indefinite Delivery Contract FA8519-16-D-0003  
 
      PBS-4100D+      
 
 
  Type / Ship To   Quantity (U/I)  

*ARO Funded  

_  

Req No / Pri  

      Order or Reparable    
      Assets, Whichever    
      is Later      
Required            
Delivery            
  A TBD   5 EA   *60 Calendar Days    

 


 

                 
             

Page 5 of 80  

         

Indefinite Delivery Contract FA8519-16-D-0003  

        PBS-4100+        
 
 
Item No.                
0004                
  Firm Fixed Price            
  Best   U/I   Unit Price         Estimated Total Price  
  Estimated              
  Qty              
  15   EA   $**         $**  
 
  NSN: 6635-01-630-9391 KV          
  Balancing Machine            
  NSN IN: 6635-01-563-5989KV          
  NSN OUT:   6635-01-630-9391KV          
  Associated Document(s)   Line Item(s)        
  FD20601590517     0002        
 
  Limitations of Liability: Other Than High Value Item        
 
  Inspection: Origin            
  Acceptance: Origin          
  Inspection/Acceptance Report:   Receiving Report Required      
  Quality Assurance: Contractor Responsibility for Inspection      
  Type / Ship To     PACRN  

Mark For  

 
  A TBD       PAA        
  Type / Ship To   Quantity (U/I)  

     *ARO Funded  

_  

Req No / Pri  
        Order or Reparable    
        Assets, Whichever    
        is Later        
Required                
Delivery                
  A TBD     15 EA   *60 Calendar Days    
 
 
        PBS-4100R+      
 
 
Item No.                
0005                
  Firm Fixed Price            
  Best   U/I   Unit Price         Estimated Total Price  
  Estimated              
  Qty              
  1   EA   $**         $**  
 
  NSN: 4920-01-624-5966          
  Associated Document(s)   Line Item(s)        
  FD20601590517     0003        

 


 

                 
              Page 6 of 80  
          Indefinite Delivery Contract FA8519-16-D-0003  
 
        PBS-4100R+      
 
 
 
  Limitations of Liability: Other Than High Value Item        
 
  Inspection: Origin            
  Acceptance: Origin          
  Inspection/Acceptance Report:   Receiving Report Required      
  Quality Assurance: Standard Inspection        
  Trade Agreement Act          
  Type / Ship To     PACRN  

Mark For  

 
  A TBD       PAA        
  Type / Ship To   Quantity (U/I)  

            *ARO Funded  

_  

Req No / Pri  
        Order or Reparable    
        Assets, Whichever    
is Later
Required                
Delivery                
  A TBD     1 EA   *60 Calendar Days    
 
 
        KC-135 Kit      
 
 
Item No.                
0006                
  Firm Fixed Price            
  Best   U/I   Unit Price         Estimated Total Price  
  Estimated              
  Qty              
  5   EA   $**         $**  
 
  NSN: 6625-01-395-8180 KV          
  Electrical Assembly Kit          
  Manufacturer       Part Number        
  26741       **        
  Associated Document(s)   Line Item(s)        
  FD20601590517     0004        
 
  Limitations of Liability: Other Than High Value Item        
 
  Inspection: Origin            
  Acceptance: Origin          
  Inspection/Acceptance Report:   Receiving Report Required      
  Quality Assurance: Standard Inspection        
  Type / Ship To     PACRN  

Mark For  

 
  A TBD       PAA        
  Type / Ship To   Quantity (U/I)  

            *ARO Funded  

_  

Req No / Pri  
        Order or Reparable    
        Assets, Whichever    
is Later
Required                
Delivery                
  A TBD     5 EA   *60 Calendar Days    
 
 
        B-1 Kit      
 
 
Item No.                
0007                

 


 

                 
             

Page 7 of 80  

         

Indefinite Delivery Contract FA8519-16-D-0003  

 
        B-1 Kit      
 
 
  Firm Fixed Price            
  Best   U/I   Unit Price         Estimated Total Price  
  Estimated              
  Qty              
  1   EA   $**         $**  
 
  NSN: 6625-01-502-6787 KV          
  Manufacturer       Part Number        
  26741       INPUT: ** ;      
        OUTPUT: **        
  Associated Document(s)   Line Item(s)        
  FD20601590517     0005        
 
  Limitations of Liability: Other Than High Value Item        
 
  Inspection: Origin            
  Acceptance: Origin          
  Inspection/Acceptance Report:   Receiving Report Required      
  Quality Assurance: Standard Inspection        
  Type / Ship To     PACRN  

Mark For  

 
  A TBD       PAA        
  Type / Ship To   Quantity (U/I)   *ARO Funded  

_  

Req No / Pri  
        Order or Reparable    
        Assets, Whichever    
is Later
Required                
Delivery                
  A TBD     1 EA   *60 Calendar Days    
 
 
        A-10 Kit      
 
 
Item No.                
0008                
  Firm Fixed Price            
  Best   U/I   Unit Price         Estimated Total Price  
  Estimated              
  Qty              
  3   EA   $**         $**  
 
  NSN: 6625-01-431-7920 KV          
  BALANCING SYSTEM          
  Manufacturer       Part Number        
  26741       **        
  Associated Document(s)   Line Item(s)        
  FD20601590517     0006        
 
  Limitations of Liability: Other Than High Value Item        
 
  Inspection: Origin            
  Acceptance: Origin          
  Inspection/Acceptance Report:   Receiving Report Required      
  Quality Assurance: Standard Inspection        
  Type / Ship To     PACRN  

Mark For  

 
  A TBD       PAA          

 


 

                 
             

Page 8 of 80  

          Indefinite Delivery Contract FA8519-16-D-0003  
 
        A-10 Kit      
 
 
  Type / Ship To   Quantity (U/I)   *ARO Funded  

_  

Req No / Pri  
        Order or Reparable    
        Assets, Whichever    
is Later
Required                
Delivery                
  A TBD     3 EA   *60 Calendar Days    
 
 
        C-5 Kit      
 
 
Item No.                
0009                
  Firm Fixed Price            
  Best   U/I   Unit Price         Estimated Total Price  
  Estimated              
  Qty              
  1   EA   $**         $**  
 
  NSN: 6625-01-563-6437 KV          
  Manufacturer       Part Number        
  26741       **        
  Associated Document(s)   Line Item(s)        
  FD20601590517     0007        
 
  Limitations of Liability: Other Than High Value Item        
 
  Inspection: Origin            
  Acceptance: Origin          
  Inspection/Acceptance Report:   Receiving Report Required      
  Quality Assurance: Standard Inspection        
  Type / Ship To     PACRN  

Mark For  

 
  A TBD       PAA        
  Type / Ship To   Quantity (U/I)   *ARO Funded  

_  

Req No / Pri  
        Order or Reparable    
        Assets, Whichever    
is Later
Required                
Delivery                
  A TBD     1 EA   *60 Calendar Days    
 
 
        E-4 Kit      
 
 
Item No.                
0010                
  Firm Fixed Price            
  Best   U/I   Unit Price         Estimated Total Price  
  Estimated              
  Qty              
  1   EA   $**         $**  
 
  NSN: ####-01-502-5175 KV          
  Manufacturer       Part Number        
  26741       INPUT: ** ;      
        OUTPUT:        
  Associated Document(s)   Line Item(s)        

 


 

                 
              Page 9 of 80  
          Indefinite Delivery Contract FA8519-16-D-0003  
 
        E-4 Kit      
 
 
  FD20601590517     0008        
 
  Limitations of Liability: Other Than High Value Item        
 
  Inspection: Origin            
  Acceptance: Origin          
  Inspection/Acceptance Report:   Receiving Report Required      
  Quality Assurance: Standard Inspection        
  Type / Ship To     PACRN  

Mark For  

 
  A TBD       PAA        
  Type / Ship To   Quantity (U/I)   *ARO Funded  

_  

Req No / Pri  
        Order or Reparable    
        Assets, Whichever    
is Later
Required                
Delivery                
  A TBD     1 EA   *60 Calendar Days    
 
 
        U-2 Kit      
 
 
Item No.                
0011                
  Firm Fixed Price            
  Best   U/I   Unit Price         Estimated Total Price  
  Estimated              
  Qty              
  1   EA   $**         $**  
 
  NSN: 6625-01-502-5177 KV          
  Manufacturer       Part Number        
  26741       INPUT: ** ;      
        OUTPUT:        
  Associated Document(s)   Line Item(s)        
  FD20601590517     0009        
 
  Limitations of Liability: Other Than High Value Item        
 
  Inspection: Origin            
  Acceptance: Origin          
  Inspection/Acceptance Report:   Receiving Report Required      
  Quality Assurance: Standard Inspection        
  Type / Ship To     PACRN  

Mark For  

 
  A TBD       PAA        
  Type / Ship To   Quantity (U/I)   *ARO Funded  

_  

Req No / Pri  
        Order or Reparable    
        Assets, Whichever    
is Later
Required                
Delivery                
  A TBD     1 EA   *60 Calendar Days    
 
 
        C-17 / F-117 Kit      
 
 
Item No.                
0012                

 


 

                 
             

Page 10 of 80  

         

Indefinite Delivery Contract FA8519-16-D-0003  

 
        C-17 / F-117 Kit      
 
 
  Firm Fixed Price            
  Best   U/I   Unit Price         Estimated Total Price  
  Estimated              
  Qty              
  2   EA   $**         $**  
 
  NSN: 6625-01-481-5997 BE          
  Accessory Kit              
  Manufacturer       Part Number        
  26741       **        
  Associated Document(s)   Line Item(s)        
  FD20601590517     0010        
 
  Limitations of Liability: Other Than High Value Item        
 
  Inspection: Origin            
  Acceptance: Origin          
  Inspection/Acceptance Report:   Receiving Report Required      
  Quality Assurance: Standard Inspection        
  Type / Ship To     PACRN  

Mark For  

 
  A TBD       PAA        
  Type / Ship To   Quantity (U/I)  

             *ARO Funded  

_  

Req No / Pri  
        Order or Reparable    
        Assets, Whichever    
is Later
Required                
Delivery                
  A TBD     2 EA   *60 Calendar Days    
 
 
        B-2 Kit      
 
 
Item No.                
0013                
  Firm Fixed Price            
  Best   U/I   Unit Price         Estimated Total Price  
  Estimated              
  Qty              
  1   EA   $**         $**  
 
  NSN: 6625-01-502-5176 KV          
  Manufacturer       Part Number        
  26741       OUTPUT:        
        **        
  Associated Document(s)   Line Item(s)        
  FD20601590517     0011        
 
  Limitations of Liability: Other Than High Value Item        
 
  Inspection: Origin            
  Acceptance: Origin          
  Inspection/Acceptance Report:  

Receiving Report Required  

   
  Quality Assurance: Contractor Responsibility for Inspection      
  Type / Ship To     PACRN   Mark For    
  A TBD       PAA          

 


 

                 
             

Page 11 of 80  

          Indefinite Delivery Contract FA8519-16-D-0003  
 
        B-2 Kit      
 
 
  Type / Ship To   Quantity (U/I)   *ARO Funded  

_  

Req No / Pri  
        Order or Reparable    
        Assets, Whichever    
is Later
Required                
Delivery                
  A TBD     1 EA   *60 Calendar Days    
 
 
        B-52 Kit      
 
 
Item No.                
0014                
  Firm Fixed Price            
  Best   U/I   Unit Price         Estimated Total Price  
  Estimated              
  Qty              
  3   EA   $**         $**  
 
  NSN: 6625-01-628-1987 KV          
  Amplifier, Accelerom          
  Associated Document(s)   Line Item(s)        
  FD20601590517     0012        
 
  Limitations of Liability: Other Than High Value Item        
 
  Inspection: Origin            
  Acceptance: Origin          
  Inspection/Acceptance Report: Receiving Report Required      
  Quality Assurance: Contractor Responsibility for Inspection      
  Physical Item Markings:          
  Type / Ship To     PACRN  

Mark For  

 
  A TBD       PAA        
  Type / Ship To   Quantity (U/I)   *ARO Funded  

_  

Req No / Pri  
        Order or Reparable    
        Assets, Whichever    
is Later
Required                
Delivery                
  A TBD     3 EA   *60 Calendar Days    
 
 
        Charge Amp      
 
 
Item No.                
0015                
  Firm Fixed Price            
  Best   U/I   Unit Price         Estimated Total Price  
  Estimated              
  Qty              
  1   EA   $**         $**  
 
  NSN: 5996-01-431-4624 KV          
  Amplifier, Accelerom          
  Manufacturer       Part Number        
  26741       INPUT: , OUTPUT:      
        **        

 


 

                 
              Page 12 of 80  
          Indefinite Delivery Contract FA8519-16-D-0003  
 
        Charge Amp      
 
 
  Associated Document(s)   Line Item(s)        
  FD20601590517     0013        
 
  Limitations of Liability: Other Than High Value Item        
 
  Inspection: Origin            
  Acceptance: Origin          
  Inspection/Acceptance Report:   Receiving Report Required      
  Quality Assurance: Standard Inspection        
  IUID Required: No            
  Type / Ship To     PACRN  

Mark For  

 
  A TBD       PAA        
  Type / Ship To   Quantity (U/I)  

            *ARO Funded  

_  

Req No / Pri  

        Order or Reparable    
        Assets, Whichever    
is Later
Required                
Delivery                
  A TBD     1 EA   *60 Calendar Days    
 
 
        Charge Amp      
 
 
Item No.                
0016                
  Firm Fixed Price            
  Best   U/I   Unit Price         Estimated Total Price  
  Estimated              
  Qty              
  5   EA   $**         $**  
 
  NSN: 5996-01-431-2547 KV          
  BALANCING SYSTEM          
  PN: INPUT:**;OUTPUT**          
  Manufacturer       Part Number        
  26741       PN:        
        INPUT:** ;      
        OUTPUT**        
  Associated Document(s)   Line Item(s)        
  FD20601590517     0014        
 
  Limitations of Liability: Other Than High Value Item        
 
  Inspection: Origin            
  Acceptance: Origin          
  Inspection/Acceptance Report:   Receiving Report Required      
  Quality Assurance: Standard Inspection        
  Buy American Act/Balance of Payments Program        
  Type / Ship To     PACRN  

Mark For  

 
  A TBD       PAA        
  Type / Ship To   Quantity (U/I)  

            *ARO Funded  

_  

Req No / Pri  

        Order or Reparable    
        Assets, Whichever    
is Later
Required                
Delivery                
  A TBD     5 EA   *60 Calendar Days    

 


 

                 
              Page 13 of 80  
          Indefinite Delivery Contract FA8519-16-D-0003  
 
 
        Calibration      
 
 
Item No.                
0017                
  Firm Fixed Price            
  Best   U/I   Unit Price        

Total Estimated Cost  

  Estimated              
  Qty              
  1   EA   $**         $**  
 
  Calibration              
  Associated Document(s)   Line Item(s)        
  FD20601590517     0015        
 
  Limitations of Liability: Other Than High Value Item        
 
  Inspection: Origin            
  Acceptance: Origin          
  Inspection/Acceptance Report:   Receiving Report Required      
  Quality Assurance: Commercial Item Inspection        
  Class I ODS Substance   Application/Use     Quantity  
  NONE              
  Type / Ship To     PACRN  

Mark For  

 
  A TBD       PAA        
  Type / Ship To   Quantity (U/I)  

            *ARO Funded  

_  

Req No / Pri  

        Order or Reparable    
        Assets, Whichever    
is Later
Required                
Delivery                
  A TBD     1 EA   *60 Calendar Days    
 
 
        DATA      
 
 
Item No.                
0018                
 
 
 
 
  CDRLs A001 - A008          
  IAW Attached DD1423s          
  Associated Document(s)   Line Item(s)        
  FD20601590517     0016        
 
  Limitations of Liability: Other Than High Value Item        
 
  Inspection: Destination          
  Acceptance: Destination          
  Inspection/Acceptance Report:   Wide Area Workflow      
  Quality Assurance: IAW DD1423s        
 
 
 
A001 - Commercial Asset Visibility AF (CAV AF) End Item Reporting  
Item No.                
0018AA                
  Firm Fixed Price            

 


 

           
       

Page 14 of 80  

     

Indefinite Delivery Contract FA8519-16-D-0003  

 
 
 
    A001 - Commercial Asset Visibility AF (CAV AF) End Item Reporting    
  Quantity   U/I   Unit Price   Amount  
  1   LO   Not Separately Priced   Not Separately Priced  
 
  CDRL A001        
  Commercial Asset Visibility AF (CAV AF) End Item Reporting    
  DI-MGMT-81634B      
  Exhibit: A        
 
 
 
      A002 - Contractor's Standard Operating Procedures (SOPs)    
Item No.          
0018AB          
  Firm Fixed Price      
  Quantity   U/I   Unit Price   Amount  
  1   LO   Not Separately Priced   Not Separately Priced  
 
  CDRL A002        
  Contractor's Standard Operating Procedures (SOPs)    
  DI-MGMT-81580      
  Exhibit: A        
 
 
 
      A003 - Technical Report - Study Services    
Item No.          
0018AC          
  Firm Fixed Price      
  Quantity   U/I   Unit Price   Amount  
  1   LO   Not Separately Priced   Not Separately Priced  
 
  CDRL A003        
  Technical Report - Study Services    
  DI-MGMT-80508B      
  Exhibit: A        
 
 
 
      A004 - Monthly Status Report    
Item No.          
0018AD          
  Firm Fixed Price      
  Quantity   U/I   Unit Price   Amount  
  1   LO   Not Separately Priced   Not Separately Priced  
 
  CDRL A004        
  Monthly Status Report    
  DI-MGMT-80368A      
  Exhibit: A        
 
 
 
      A005 - Safe Alerts    
Item No.          
0018AE          
  Firm Fixed Price      
  Quantity   U/I   Unit Price   Amount  
  1   LO   Not Separately Priced   Not Separately Priced  

 


 

           
       

Page 15 of 80  

     

Indefinite Delivery Contract FA8519-16-D-0003  

 
 
 
      A005 - Safe Alerts    
  CDRL A005        
  Safe Alerts        
  DI-QCIC-80125B      
  Exhibit: A        
 
 
 
      A006 - GIDEP Response    
Item No.          
0018AF          
  Firm Fixed Price      
  Quantity   U/I   Unit Price   Amount  
  1   LO   Not Separately Priced   Not Separately Priced  
 
  CDRL A006        
  GIDEP Response      
  DI-QCIC-80126B      
  Exhibit: A        
 
 
 
      A007 - GIDEP    
Item No.          
0018AG          
  Firm Fixed Price      
  Quantity   U/I   Unit Price   Amount  
  1   LO   Not Separately Priced   Not Separately Priced  
 
  CDRL A007        
  GIDEP        
  DI-QCIC-80127A      
  Exhibit: A        
 
 
 
      A008 - Software Product Specification    
Item No.          
0018AH          
  Firm Fixed Price      
  Quantity   U/I   Unit Price   Amount  
  1   LO   Not Separately Priced   Not Separately Priced  
 
  CDRL A008        
  Software Product Specification    
  DI-IPSC-81441A      
  Exhibit: A        
 
      Beyond Economical Repair    
 
 
Item No.          
0019          
  Firm Fixed Price      
  Best   U/I   Unit Price   Estimated Total Price  
  Estimated        
  Qty        
  1   LO   Not Separately Priced   Not Separately Priced  
 
  Beyond Economical Repair    

 


 

       
    Page 16 of 80  
    Indefinite Delivery Contract FA8519-16-D-0003  
 
 
 
 
Associated Document(s)   Line Item(s)    
FD20601570695   0017    

 

Option I may be exercised at any time, from time to time, within 365 days after effective date of basic contract. Multiple option periods may be exercised simultaneously.   An option is determined to have been exercised when transmitted electronically by fax or email.  

                 
                 
OPTION I - New Production PBS4100+
 
                 
Item No.                
1001                
  Firm Fixed Price            
  Best   U/I   Unit Price         Estimated Total Price  
  Estimated              
  Qty              
  10   EA   $**         $**  
 
  NSN: 6635-01-630-9391 KV          
  Balancing Machine            
  Manufacturer       Part Number        
  26741       **        
 
  Limitations of Liability: Other Than High Value Item        
 
  Inspection: Origin            
  Acceptance: Origin          
  Inspection/Acceptance Report:   Receiving Report Required      
  Quality Assurance: Commercial Item Inspection        
  Trade Agreement Act          
  Class I ODS Substance   Application/Use     Quantity  
  None       None       None  
  Type / Ship To     PACRN  

Mark For  

 
  A TBD       PAA        
  Type / Ship To   Quantity (U/I)  

     *ARO Contract  

_  

Req No / Pri  
Required                
Delivery                
  A TBD     10 EA   *90 Calendar Days    
 
 
New Production
 
 
Item No.                
1002                
  Firm Fixed Price            
  Best   U/I   Unit Price         Estimated Total Price  
  Estimated              
  Qty              

 


 

                 
              Page 17 of 80  
          Indefinite Delivery Contract FA8519-16-D-0003  
 
        New Production      
 
 
  5   EA   $**         $**  
 
  NSN: 4920-01-624-5966 KV          
  Test Set Subassembly          
  Manufacturer       Part Number        
  26741       **        
 
  Limitations of Liability: Other Than High Value Item        
 
  Inspection: Origin            
  Acceptance: Origin          
  Inspection/Acceptance Report:   Receiving Report Required      
  Quality Assurance: Standard Inspection        
  IUID Required: No            
  Type / Ship To     PACRN  

Mark For  

 
  A TBD       PAA        
  Type / Ship To   Quantity (U/I)   *ARO Contract  

_  

Req No / Pri  

Required                
Delivery                
  A TBD     5 EA   *90 Calendar Days    
 
 
 
 
        PBS-4100D+      
 
 
Item No.                
1003                
  Firm Fixed Price            
  Best   U/I   Unit Price         Estimated Total Price  
  Estimated              
  Qty              
  5   EA   $**         $**  
 
  NSN: 6635-01-630-9391 KV          
  Balancing Machine            
 
  Limitations of Liability: Other Than High Value Item        
 
  Inspection: Origin            
  Acceptance: Origin          
  Inspection/Acceptance Report: Receiving Report Required      
  Quality Assurance: Contractor Responsibility for Inspection      
  IUID Required: Yes          
  Physical Item Markings:          
  Type / Ship To     PACRN  

Mark For  

 
  A TBD       PAA        
  Type / Ship To   Quantity (U/I)  

             *ARO Funded  

_  

Req No / Pri  

        Order or Reparable    
        Assets, Whichever    
is Later
Required                
Delivery                
  A TBD     5 EA   *60 Calendar Days    

 


 

                 
              Page 18 of 80  
          Indefinite Delivery Contract FA8519-16-D-0003  
 
        PBS-4100+      
 
 
Item No.                
1004                
  Firm Fixed Price            
  Best   U/I   Unit Price         Estimated Total Price  
  Estimated              
  Qty              
  10   EA   $**         $**  
 
  NSN: 6635-01-630-9391 KV          
  Balancing Machine            
  NSN IN: 6635-01-563-5989KV          
  NSN OUT:   6635-01-630-9391KV          
 
  Limitations of Liability: Other Than High Value Item        
 
  Inspection: Origin            
  Acceptance: Origin          
  Inspection/Acceptance Report: Receiving Report Required      
  Quality Assurance: Contractor Responsibility for Inspection      
  IUID Required: No            
  Type / Ship To     PACRN  

Mark For  

 
  A TBD       PAA        
  Type / Ship To   Quantity (U/I)  

             *ARO Funded  

_  

Req No / Pri  
        Order or Reparable    
        Assets, Whichever    
is Later
Required                
Delivery                
  A TBD     10 EA   *60 Calendar Days    
 
 
        PBS-4100R+      
 
 
Item No.                
1005                
  Firm Fixed Price            
  Best   U/I   Unit Price         Estimated Total Price  
  Estimated              
  Qty              
  1   EA   $**         $**  
 
  NSN: 4920-01-624-5966          
 
  Limitations of Liability: Other Than High Value Item        
 
  Inspection: Origin            
  Acceptance: Origin          
  Inspection/Acceptance Report:   Receiving Report Required      
  Quality Assurance: Standard Inspection        
  Trade Agreement Act          
  Type / Ship To     PACRN  

Mark For  

 
  A TBD       PAA        
  Type / Ship To   Quantity (U/I)  

             *ARO Funded  

_  

Req No / Pri  
        Order or Reparable    
        Assets, Whichever    
is Later
Required                
Delivery                

 


 

                 
              Page 19 of 80  
          Indefinite Delivery Contract FA8519-16-D-0003  
 
        PBS-4100R+      
 
 
  A TBD     1 EA   *60 Calendar Days    
 
 
        KC-135 Kit      
 
 
Item No.                
1006                
  Firm Fixed Price            
  Best   U/I   Unit Price         Total Estimated Cost  
  Estimated              
  Qty              
  5   EA   $**         $**  
 
  NSN: 6625-01-395-8180 KV          
  Electrical Assembly Kit          
  Manufacturer       Part Number        
  26741       **        
 
  Limitations of Liability: Other Than High Value Item        
 
  Inspection: Origin            
  Acceptance: Origin          
  Inspection/Acceptance Report:   Receiving Report Required      
  Quality Assurance: Standard Inspection        
  Type / Ship To     PACRN  

Mark For  

 
  A TBD       PAA        
  Type / Ship To   Quantity (U/I)  

             *ARO Funded  

_  

Req No / Pri  
        Order or Reparable    
        Assets, Whichever    
is Later
Required                
Delivery                
  A TBD     5 EA   *60 Calendar Days    
 
 
        B-1 Kit      
 
 
Item No.                
1007                
  Firm Fixed Price            
  Best   U/I   Unit Price         Estimated Total Price  
  Estimated              
  Qty              
  1   EA   $**         $**  
 
  NSN: 6625-01-502-6787 KV          
  Manufacturer       Part Number        
  26741       INPUT: ** ;      
       

     OUTPUT: **  

     
 
  Limitations of Liability: Other Than High Value Item        
 
  Inspection: Origin            
  Acceptance: Origin          
  Inspection/Acceptance Report:   Receiving Report Required      
  Quality Assurance: Standard Inspection        
  Type / Ship To     PACRN  

Mark For  

 

 


 

                 
              Page 20 of 80  
          Indefinite Delivery Contract FA8519-16-D-0003  
 
        B-1 Kit      
 
 
  A TBD       PAA        
  Type / Ship To   Quantity (U/I)   *ARO Funded  

_  

Req No / Pri  
        Order or Reparable    
        Assets, Whichever    
is Later
Required                
Delivery                
  A TBD     1 EA   *60 Calendar Days    
 
 
        A-10 Kit      
 
 
Item No.                
1008                
  Firm Fixed Price            
  Best   U/I   Unit Price         Estimated Total Price  
  Estimated              
  Qty              
  3   EA   $**         $**  
 
  NSN: 6625-01-431-7920 KV          
  BALANCING SYSTEM          
  Manufacturer       Part Number        
  26741       **        
 
  Limitations of Liability: Other Than High Value Item        
 
  Inspection: Origin            
  Acceptance: Origin          
  Inspection/Acceptance Report:   Receiving Report Required      
  Quality Assurance: Standard Inspection        
  Type / Ship To     PACRN  

Mark For  

 
  A TBD       PAA        
  Type / Ship To   Quantity (U/I)   *ARO Funded  

_  

Req No / Pri  
        Order or Reparable    
        Assets, Whichever    
is Later
Required                
Delivery                
  A TBD     3 EA   *60 Calendar Days    
 
 
        C-5 Kit      
 
 
Item No.                
1009                
  Firm Fixed Price            
  Best   U/I   Unit Price         Estimated Total Price  
  Estimated              
  Qty              
  1   EA   $**         $**  
 
  NSN: 6625-01-563-6437 KV          
  Manufacturer       Part Number        
  26741       **        
 
  Limitations of Liability: Other Than High Value Item        

 


 

                 
              Page 21 of 80  
          Indefinite Delivery Contract FA8519-16-D-0003  
 
        C-5 Kit      
 
 
 
  Inspection: Origin            
  Acceptance: Origin          
  Inspection/Acceptance Report:   Receiving Report Required      
  Quality Assurance: Standard Inspection        
  Type / Ship To     PACRN  

Mark For  

 
  A TBD       PAA        
  Type / Ship To   Quantity (U/I)   *ARO Funded  

_  

Req No / Pri  

        Order or Reparable    
        Assets, Whichever    
is Later
Required                
Delivery                
  A TBD     1 EA   *60 Calendar Days    
 
 
        E-4 Kit      
 
 
Item No.                
1010                
  Firm Fixed Price            
  Best   U/I   Unit Price         Estimated Total Price  
  Estimated              
  Qty              
  1   EA   $**         $**  
 
  NSN: 6625-01-502-5175 KV          
  Manufacturer       Part Number        
  26741       INPUT: ** ;      
        OUTPUT:        
 
  Limitations of Liability: Other Than High Value Item        
 
  Inspection: Origin            
  Acceptance: Origin          
  Inspection/Acceptance Report:   Receiving Report Required      
  Quality Assurance: Standard Inspection        
  Type / Ship To     PACRN  

Mark For  

 
  A TBD       PAA        
  Type / Ship To   Quantity (U/I)   *ARO Funded  

_  

Req No / Pri  

        Order or Reparable    
        Assets, Whichever    
is Later
Required                
Delivery                
  A TBD     1 EA   *60 Calendar Days    
 
 
        U-2 Kit      
 
 
Item No.                
1011                
  Firm Fixed Price            
  Best   U/I   Unit Price        

Estimated Total Price  

  Estimated              
  Qty              

 


 

                 
              Page 22 of 80  
          Indefinite Delivery Contract FA8519-16-D-0003  
 
        U-2 Kit      
 
 
  1   EA   $**         $**  
 
  NSN: 6625-01-502-5177 KV          
  Manufacturer       Part Number        
  26741       INPUT: ** ;      
        OUTPUT:        
 
  Limitations of Liability: Other Than High Value Item        
 
  Inspection: Origin            
  Acceptance: Origin          
  Inspection/Acceptance Report:   Receiving Report Required      
  Quality Assurance: Standard Inspection        
  Type / Ship To     PACRN  

Mark For  

 
  A TBD       PAA        
  Type / Ship To   Quantity (U/I)  

            *ARO Funded  

_  

Req No / Pri  

        Order or Reparable    
        Assets, Whichever    
is Later
Required                
Delivery                
  A TBD     1 EA   *60 Calendar Days    
 
 
        C-17 / F-117 Kit      
 
 
Item No.                
1012                
  Firm Fixed Price            
  Best   U/I   Unit Price         Estimated Total Price  
  Estimated              
  Qty              
  2   EA   $**         $**  
 
  NSN: 6625-01-481-5997 BE          
  Accessory Kit              
  Manufacturer       Part Number        
  26741       **        
 
  Limitations of Liability: Other Than High Value Item        
 
  Inspection: Origin            
  Acceptance: Origin          
  Inspection/Acceptance Report:   Receiving Report Required      
  Quality Assurance: Standard Inspection        
  Type / Ship To     PACRN  

Mark For  

 
  A TBD       PAA        
  Type / Ship To   Quantity (U/I)  

             *ARO Funded  

_  

Req No / Pri  

        Order or Reparable    
        Assets, Whichever    
is Later
Required                
Delivery                
  A TBD     2 EA   *60 Calendar Days    

 


 

                 
              Page 23 of 80  
          Indefinite Delivery Contract FA8519-16-D-0003  
 
        B-2 Kit      
 
 
Item No.                
1013                
  Firm Fixed Price            
  Best   U/I   Unit Price         Estimated Total Price  
  Estimated              
  Qty              
  1   EA   $**         $**  
 
  NSN: 6625-01-502-5176 KV          
  Manufacturer       Part Number        
  26741       OUTPUT:        
       

      **  

     
 
  Limitations of Liability: Other Than High Value Item        
 
  Inspection: Origin            
  Acceptance: Origin          
  Inspection/Acceptance Report:   Receiving Report Required      
  Quality Assurance: Contractor Responsibility for Inspection      
  Type / Ship To     PACRN  

Mark For  

 
  A TBD       PAA        
  Type / Ship To   Quantity (U/I)  

            *ARO Funded  

_  

Req No / Pri  
        Order or Reparable    
        Assets, Whichever    
is Later
Required                
Delivery                
  A TBD     1 EA   *60 Calendar Days    
 
 
        B-52 Kit      
 
 
Item No.                
1014                
  Firm Fixed Price            
  Best   U/I   Unit Price         Estimated Total Price  
  Estimated              
  Qty              
  3   EA   $**         $**  
 
  NSN: 6625-01-628-1987 KV          
  Amplifier, Accelerom          
 
  Limitations of Liability: Other Than High Value Item        
 
  Inspection: Origin            
  Acceptance: Origin          
  Inspection/Acceptance Report: Receiving Report Required      
  Quality Assurance: Contractor Responsibility for Inspection      
  IUID Required: No            
  Type / Ship To     PACRN  

Mark For  

 
  A TBD       PAA        
  Type / Ship To   Quantity (U/I)  

            *ARO Funded  

_  

Req No / Pri  
        Order or Reparable    
        Assets, Whichever    
is Later
Required                
Delivery                

 


 

              Page 24 of 80  
          Indefinite Delivery Contract FA8519-16-D-0003  
 
        B-52 Kit      
 
 
  A TBD     3 EA   *60 Calendar Days    
 
 
        Charge Amp      
 
 
Item No.                
1015                
  Firm Fixed Price            
  Best   U/I   Unit Price         Estimated Total Price  
  Estimated              
  Qty              
  1   EA   $**         $**  
 
  NSN: 5996-01-431-4624 KV          
  Amplifier, Accelerom          
  Manufacturer       Part Number        
  26741       INPUT: , OUTPUT:      
       

      **  

     
 
  Limitations of Liability: Other Than High Value Item        
 
  Inspection: Origin            
  Acceptance: Origin          
  Inspection/Acceptance Report:   Receiving Report Required      
  Quality Assurance: Standard Inspection        
  IUID Required: No            
  Type / Ship To     PACRN  

Mark For  

 
  A TBD       PAA        
  Type / Ship To   Quantity (U/I)   *ARO Funded  

_  

Req No / Pri  
        Order or Reparable    
        Assets, Whichever    
is Later
Required                
Delivery                
  A TBD     1 EA   *60 Calendar Days    
 
 
        Charge Amp      
 
 
Item No.                
1016                
  Firm Fixed Price            
  Best   U/I   Unit Price         Estimated Total Price  
  Estimated              
  Qty              
  5   EA   $**         $**  
 
  NSN: 5996-01-431-2547 KV          
  BALANCING SYSTEM          
  PN: INPUT:**;OUTPUT**          
  Manufacturer       Part Number        
  26741       PN:        
        INPUT:** ;      
        OUTPUT**        
 
  Limitations of Liability: Other Than High Value Item        

 


 

                 
              Page 25 of 80  
          Indefinite Delivery Contract FA8519-16-D-0003  
 
        Charge Amp      
 
 
 
  Inspection: Origin            
  Acceptance: Origin          
  Inspection/Acceptance Report:   Receiving Report Required      
  Quality Assurance: Standard Inspection        
  Buy American Act/Balance of Payments Program        
  Type / Ship To     PACRN  

Mark For  

 
  A TBD       PAA        
  Type / Ship To   Quantity (U/I)                *ARO Funded   _   Req No / Pri  
        Order or Reparable    
        Assets, Whichever    
is Later
Required                
Delivery                
  A TBD     5 EA   *60 Calendar Days    
 
 
        Calibration      
 
 
Item No.                
1017                
  Firm Fixed Price            
  Best   U/I   Unit Price         Estimated Total Price  
  Estimated              
  Qty              
  1   EA   $**         $**  
 
  Calibration              
 
  Limitations of Liability: Other Than High Value Item        
 
  Inspection: Origin            
  Acceptance: Origin          
  Inspection/Acceptance Report:   Receiving Report Required      
  Quality Assurance: Commercial Item Inspection        
  Class I ODS Substance   Application/Use     Quantity  
  NONE              
  Type / Ship To     PACRN  

Mark For  

 
  A TBD       PAA        
  Type / Ship To   Quantity (U/I)  

             *ARO Funded  

_  

Req No / Pri  

        Order or Reparable    
        Assets, Whichever    
is Later
Required                
Delivery                
  A TBD     1 EA   *60 Calendar Days    
 
 
        DATA      
 
 
Item No.                
1018                
 
 
 
 
  CDRLs A001 - A008          

 


 

           
        Page 26 of 80  
      Indefinite Delivery Contract FA8519-16-D-0003  
 
      DATA    
 
 
  IAW Attached DD1423s    
 
  Limitations of Liability: Other Than High Value Item    
 
  Inspection: Destination    
  Acceptance: Destination    
  Inspection/Acceptance Report: Wide Area Workflow    
  Quality Assurance: IAW DD1423s    
 
 
 
    A001 - Commercial Asset Visibility AF (CAV AF) End Item Reporting    
Item No.          
1018AA          
  Firm Fixed Price      
  Quantity   U/I   Unit Price   Amount  
  1   LO   Not Separately Priced   Not Separately Priced  
 
  CDRL A001        
  Commercial Asset Visibility AF (CAV AF) End Item Reporting    
  DI-MGMT-81634B      
  Exhibit: A        
 
 
 
      A002 - Contractor's Standard Operating Procedures (SOPs)    
Item No.          
1018AB          
  Firm Fixed Price      
  Quantity   U/I   Unit Price   Amount  
  1   LO   Not Separately Priced   Not Separately Priced  
 
  CDRL A002        
  Contractor's Standard Operating Procedures (SOPs)    
  DI-MGMT-81580      
  Exhibit: A        
 
 
 
      A003 - Technical Report - Study Services    
Item No.          
1018AC          
  Firm Fixed Price      
  Quantity   U/I   Unit Price   Amount  
  1   LO   Not Separately Priced   Not Separately Priced  
 
  CDRL A003        
  Technical Report - Study Services    
  DI-MGMT-80508B      
  Exhibit: A        
 
 
 
      A004 - Monthly Status Report    
Item No.          
1018AD          
  Firm Fixed Price      
  Quantity   U/I   Unit Price   Amount  

 


 

           
       

Page 27 of 80  

     

Indefinite Delivery Contract FA8519-16-D-0003  

 
 
 
      A004 - Monthly Status Report    
  1   LO   Not Separately Priced   Not Separately Priced  
 
  CDRL A004        
  Monthly Status Report    
  DI-MGMT-80368A      
  Exhibit: A        
 
 
 
      A005 - Safe Alerts    
Item No.          
1018AE          
  Firm Fixed Price      
  Quantity   U/I   Unit Price   Amount  
  1   LO   Not Separately Priced   Not Separately Priced  
 
  CDRL A005        
  Safe Alerts        
  DI-QCIC-80125B      
  Exhibit: A        
 
 
 
      A006 - GIDEP Response    
Item No.          
1018AF          
  Firm Fixed Price      
  Quantity   U/I   Unit Price   Amount  
  1   LO   Not Separately Priced   Not Separately Priced  
 
  CDRL A006        
  GIDEP Response      
  DI-QCIC-80126B      
  Exhibit: A        
 
 
 
      A007 - GIDEP    
Item No.          
1018AG          
  Firm Fixed Price      
  Quantity   U/I   Unit Price   Amount  
  1   LO   Not Separately Priced   Not Separately Priced  
 
  CDRL A007        
  GIDEP        
  DI-QCIC-80127A      
  Exhibit: A        
 
 
 
      A008 - Software Product Specification    
Item No.          
1018AH          
  Firm Fixed Price      
  Quantity   U/I   Unit Price   Amount  
  1   LO   Not Separately Priced   Not Separately Priced  
 
  CDRL A008        

 


 

           
       

Page 28 of 80  

      Indefinite Delivery Contract FA8519-16-D-0003  
 
 
 
      A008 - Software Product Specification    
  Software Product Specification    
  DI-IPSC-81441A      
  Exhibit: A        
 
      Beyond Economical Repair    
 
 
Item No.          
1019          
  Firm Fixed Price      
  Best   U/I   Unit Price   Estimated Total Price  
  Estimated        
  Qty        
  1   LO   Not Separately Priced   Not Separately Priced  
 
  Beyond Economical Repair    
  IUID Required: Yes    
  Physical Item Markings:    

 

Option II may be exercised at any time, from time to time, within 730 days after effective date of basic contract.   Multiple option periods may be exercised simultaneously. An option is determined to have been exercised when transmitted electronically by fax or email.  

               
OPTION II - New Production PBS4100+
 
               
Item No.              
2001              
  Firm Fixed Price          
  Best   U/I Unit Price         Estimated Total Price  
  Estimated            
  Qty            
  10   EA $**         $**  
 
  NSN: 6635-01-630-9391 KV          
  Balancing Machine          
  Manufacturer     Part Number        
  26741     **        
 
  Limitations of Liability: Other Than High Value Item        
 
  Inspection: Origin          
  Acceptance: Origin          
  Inspection/Acceptance Report:   Receiving Report Required      
  Quality Assurance: Commercial Item Inspection        
  Trade Agreement Act          
  Class I ODS Substance   Application/Use     Quantity  
  None     None       None  
  Type / Ship To   PACRN  

Mark For  

 
  A TBD     PAA        
  Type / Ship To Quantity (U/I)  

     *ARO Contract  

_  

Req No / Pri  

 


 

                 
              Page 29 of 80  
          Indefinite Delivery Contract FA8519-16-D-0003  
 
 
 
 
Required                
Delivery                
  A TBD     10 EA   *90 Calendar Days    
 
 
        New Production      
 
 
Item No.                
2002                
  Firm Fixed Price            
  Best   U/I   Unit Price         Estimated Total Price  
  Estimated              
  Qty              
  5   EA   $**         $**  
 
  NSN: 4920-01-624-5966 KV          
  Test Set Subassembly          
  Manufacturer       Part Number        
  26741       **        
 
  Limitations of Liability: Other Than High Value Item        
 
  Inspection: Origin            
  Acceptance: Origin          
  Inspection/Acceptance Report:   Receiving Report Required      
  Quality Assurance: Standard Inspection        
  IUID Required: No            
  Type / Ship To     PACRN  

Mark For  

 
  A TBD       PAA        
  Type / Ship To   Quantity (U/I)  

     *ARO Contract  

_  

Req No / Pri  
Required                
Delivery                
  A TBD     5 EA   *90 Calendar Days    
 
 
 
 
        PBS-4100D+      
 
 
Item No.                
2003                
  Firm Fixed Price            
  Best   U/I   Unit Price         Estimated Total Price  
  Estimated              
  Qty              
  10   EA   $**         $**  
 
  NSN: 6635-01-630-9391 KV          
  Balancing Machine            
 
  Limitations of Liability: Other Than High Value Item        
 
  Inspection: Origin            
  Acceptance: Origin          
  Inspection/Acceptance Report:   Receiving Report Required      
  Quality Assurance: Contractor Responsibility for Inspection      
  Type / Ship To     PACRN  

Mark For  

 

 


 

                 
             

Page 30 of 80  

          Indefinite Delivery Contract FA8519-16-D-0003  
 
        PBS-4100D+      
 
 
  A TBD       PAA        
  Type / Ship To   Quantity (U/I)  

        *ARO Funded  

_  

Req No / Pri  
        Order or Reparable    
        Assets, Whichever    
is Later
Required                
Delivery                
  A TBD     10 EA   *60 Calendar Days    
 
 
        PBS-4100+      
 
 
Item No.                
2004                
  Firm Fixed Price            
  Best   U/I   Unit Price         Estimated Total Price  
  Estimated              
  Qty              
  10   EA   $**         $**  
 
  NSN: 6635-01-630-9391 KV          
  Balancing Machine            
  NSN IN: 6635-01-563-5989KV          
  NSN OUT:   6635-01-630-9391KV          
 
  Limitations of Liability: Other Than High Value Item        
 
  Inspection: Origin            
  Acceptance: Origin          
  Inspection/Acceptance Report: Receiving Report Required      
  Quality Assurance: Contractor Responsibility for Inspection      
  IUID Required: No            
  Type / Ship To     PACRN  

Mark For  

 
  A TBD       PAA        
  Type / Ship To   Quantity (U/I)  

*ARO Funded  

_  

Req No / Pri  
        Order or Reparable    
        Assets, Whichever    
is Later
Required                
Delivery                
  A TBD     10 EA   *60 Calendar Days    
 
 
        PBS-4100R+      
 
 
Item No.                
2005                
  Firm Fixed Price            
  Best   U/I   Unit Price         Estimated Total Price  
  Estimated              
  Qty              
  2   EA   $**         $**  
 
  NSN: 4920-01-624-5966          
 
  Limitations of Liability: Other Than High Value Item        

 


 

                 
              Page 31 of 80  
          Indefinite Delivery Contract FA8519-16-D-0003  
 
        PBS-4100R+      
 
 
 
  Inspection: Origin            
  Acceptance: Origin          
  Inspection/Acceptance Report:   Receiving Report Required      
  Quality Assurance: Standard Inspection        
  IUID Required: Yes          
  Trade Agreement Act          
  Physical Item Markings:          
  Type / Ship To     PACRN  

Mark For  

 
  A TBD       PAA        
  Type / Ship To   Quantity (U/I)  

*ARO Funded  

_  

Req No / Pri  

        Order or Reparable    
        Assets, Whichever    
is Later
Required                
Delivery                
  A TBD     2 EA   *60 Calendar Days    
 
 
        KC-135 Kit      
 
 
Item No.                
2006                
  Firm Fixed Price            
  Best   U/I   Unit Price         Estimated Total Price  
  Estimated              
  Qty              
  5   EA   $**         $**  
 
  NSN: 6625-01-395-8180 KV          
  Electrical Assembly Kit          
  Manufacturer       Part Number        
  26741       **        
 
  Limitations of Liability: Other Than High Value Item        
 
  Inspection: Origin            
  Acceptance: Origin          
  Inspection/Acceptance Report:   Receiving Report Required      
  Quality Assurance: Standard Inspection        
  Type / Ship To     PACRN  

Mark For  

 
  A TBD       PAA        
  Type / Ship To   Quantity (U/I)  

*ARO Funded  

_  

Req No / Pri  
       

Order or Reparable  

 
        Assets, Whichever    
is Later
Required                
Delivery                
  A TBD     5 EA   *60 Calendar Days    
 
 
        B-1 Kit      
 
 
Item No.                
2007                
  Firm Fixed Price            

 


 

                 
              Page 32 of 80  
          Indefinite Delivery Contract FA8519-16-D-0003  
 
        B-1 Kit      
 
 
  Best   U/I   Unit Price         Estimated Total Price  
  Estimated              
  Qty              
  1   EA   $**         $**  
 
  NSN: 6625-01-502-6787 KV          
  Manufacturer       Part Number        
  26741       INPUT: ** ;      
       

     OUTPUT: **  

     
 
  Limitations of Liability: Other Than High Value Item        
 
  Inspection: Origin            
  Acceptance: Origin          
  Inspection/Acceptance Report:   Receiving Report Required      
  Quality Assurance: Standard Inspection        
  Type / Ship To     PACRN  

Mark For  

 
  A TBD       PAA        
  Type / Ship To   Quantity (U/I)   *ARO Funded  

_  

Req No / Pri  
        Order or Reparable    
        Assets, Whichever    
is Later
Required                
Delivery                
  A TBD     1 EA   *60 Calendar Days    
 
 
        A-10 Kit      
 
 
Item No.                
2008                
  Firm Fixed Price            
  Best   U/I   Unit Price         Estimated Total Price  
  Estimated              
  Qty              
  3   EA   $**         $**  
 
  NSN: 6625-01-431-7920 KV          
  BALANCING SYSTEM          
  Manufacturer       Part Number        
  26741       **        
 
  Limitations of Liability: Other Than High Value Item        
 
  Inspection: Origin            
  Acceptance: Origin          
  Inspection/Acceptance Report:   Receiving Report Required      
  Quality Assurance: Standard Inspection        
  Type / Ship To     PACRN  

Mark For  

 
  A TBD       PAA        
  Type / Ship To   Quantity (U/I)   *ARO Funded  

_  

Req No / Pri  
        Order or Reparable    
        Assets, Whichever    
is Later
Required                
Delivery                
  A TBD     3 EA   *60 Calendar Days    

 


 

                 
              Page 33 of 80  
          Indefinite Delivery Contract FA8519-16-D-0003  
 
 
        C-5 Kit      
 
 
Item No.                
2009                
  Firm Fixed Price            
  Best   U/I   Unit Price         Estimated Total Price  
  Estimated              
  Qty              
  1   EA   $**         $**  
 
  NSN: 6625-01-563-6437 KV          
  Manufacturer       Part Number        
  26741       **        
 
  Limitations of Liability: Other Than High Value Item        
 
  Inspection: Origin            
  Acceptance: Origin          
  Inspection/Acceptance Report:  

Receiving Report Required  

   
  Quality Assurance: Standard Inspection        
  Type / Ship To     PACRN  

Mark For  

 
  A TBD       PAA        
  Type / Ship To   Quantity (U/I)   *ARO Funded  

_  

Req No / Pri  
        Order or Reparable    
        Assets, Whichever    
is Later
Required                
Delivery                
  A TBD     1 EA   *60 Calendar Days    
 
 
        E-4 Kit      
 
 
Item No.                
2010                
  Firm Fixed Price            
  Best   U/I   Unit Price         Estimated Total Price  
  Estimated              
  Qty              
  1   EA   $**         $**  
 
  NSN: 6625-01-502-5175 KV          
  Manufacturer       Part Number        
  26741       INPUT: ** ;      
        OUTPUT:        
 
  Limitations of Liability: Other Than High Value Item        
 
  Inspection: Origin            
  Acceptance: Origin          
  Inspection/Acceptance Report:  

Receiving Report Required  

   
  Quality Assurance: Standard Inspection        
  Type / Ship To     PACRN  

Mark For  

 
  A TBD       PAA        
  Type / Ship To   Quantity (U/I)   *ARO Funded  

_  

Req No / Pri  
        Order or Reparable    
        Assets, Whichever    
is Later

 


 

                 
              Page 34 of 80  
          Indefinite Delivery Contract FA8519-16-D-0003  
 
        E-4 Kit      
 
 
Required                
Delivery                
  A TBD     1 EA   *60 Calendar Days    
 
 
        U-2 Kit      
 
 
Item No.                
2011                
  Firm Fixed Price            
  Best   U/I   Unit Price         Total Estimated Cost  
  Estimated              
  Qty              
  1   EA   $**         $**  
 
  NSN: 6625-01-502-5177 KV          
  Manufacturer       Part Number        
  26741       INPUT: ** ;      
        OUTPUT:        
 
  Limitations of Liability: Other Than High Value Item        
 
  Inspection: Origin            
  Acceptance: Origin          
  Inspection/Acceptance Report:   Receiving Report Required      
  Quality Assurance: Standard Inspection        
  Type / Ship To     PACRN  

Mark For  

 
  A TBD       PAA        
  Type / Ship To   Quantity (U/I)   *ARO Funded   _   Req No / Pri  
        Order or Reparable    
        Assets, Whichever    
is Later
Required                
Delivery                
  A TBD     1 EA   *60 Calendar Days    
 
 
        C-17 / F-117 Kit      
 
 
Item No.                
2012                
  Firm Fixed Price            
  Best   U/I   Unit Price         Estimated Total Price  
  Estimated              
  Qty              
  2   EA   $**         $**  
 
  NSN: 6625-01-481-5997 BE          
  Accessory Kit              
  Manufacturer       Part Number        
  26741       **        
 
  Limitations of Liability: Other Than High Value Item        
 
  Inspection: Origin            
  Acceptance: Origin          
  Inspection/Acceptance Report:   Receiving Report Required      

 


 

                 
              Page 35 of 80  
          Indefinite Delivery Contract FA8519-16-D-0003  
 
        C-17 / F-117 Kit      
 
 
  Quality Assurance: Standard Inspection        
  Type / Ship To     PACRN  

Mark For  

 
  A TBD       PAA        
  Type / Ship To   Quantity (U/I)   *ARO Funded  

_  

Req No / Pri  
        Order or Reparable    
        Assets, Whichever    
is Later
Required                
Delivery                
  A TBD     2 EA   *60 Calendar Days    
 
 
        B-2 Kit      
 
 
Item No.                
2013                
  Firm Fixed Price            
  Best   U/I   Unit Price         Estimated Total Price  
  Estimated              
  Qty              
  1   EA   $**         $**  
 
  NSN: 6625-01-502-5176 KV          
  Manufacturer       Part Number        
  26741       OUTPUT:        
        **        
 
  Limitations of Liability: Other Than High Value Item        
 
  Inspection: Origin            
  Acceptance: Origin          
  Inspection/Acceptance Report:  

Receiving Report Required  

   
  Quality Assurance: Contractor Responsibility for Inspection      
  Type / Ship To     PACRN  

Mark For  

 
  A TBD       PAA        
  Type / Ship To   Quantity (U/I)   *ARO Funded  

_  

Req No / Pri  
        Order or Reparable    
        Assets, Whichever    
is Later
Required                
Delivery                
  A TBD     1 EA   *60 Calendar Days    
 
 
        B-52 Kit      
 
 
Item No.                
2014                
  Firm Fixed Price            
  Best   U/I   Unit Price         Estimated Total Price  
  Estimated              
  Qty              
  3   EA   $**         $**  
 
  NSN: 6625-01-628-1987 KV          
  Amplifier, Accelerom          

 


 

                 
              Page 36 of 80  
          Indefinite Delivery Contract FA8519-16-D-0003  
 
        B-52 Kit      
 
 
 
  Limitations of Liability: Other Than High Value Item        
 
  Inspection: Origin            
  Acceptance: Origin          
  Inspection/Acceptance Report: Receiving Report Required      
  Quality Assurance: Contractor Responsibility for Inspection      
  IUID Required: No            
  Type / Ship To     PACRN  

Mark For  

 
  A TBD       PAA        
  Type / Ship To   Quantity (U/I)  

             *ARO Funded  

_  

Req No / Pri  

        Order or Reparable    
        Assets, Whichever    
is Later
Required                
Delivery                
  A TBD     3 EA   *60 Calendar Days    
 
 
        Charge Amp      
 
 
Item No.                
2015                
  Firm Fixed Price            
  Best   U/I   Unit Price         Estimated Total Price  
  Estimated              
  Qty              
  1   EA   $**         $**  
 
  NSN: 5996-01-431-4624 KV          
  Amplifier, Accelerom          
  Manufacturer       Part Number        
  26741       INPUT: , OUTPUT:      
        **        
 
  Limitations of Liability: Other Than High Value Item        
 
  Inspection: Origin            
  Acceptance: Origin          
  Inspection/Acceptance Report:  

Receiving Report Required  

   
  Quality Assurance: Standard Inspection        
  IUID Required: No            
  Type / Ship To     PACRN  

Mark For  

 
  A TBD       PAA        
  Type / Ship To   Quantity (U/I)  

            *ARO Funded  

_  

Req No / Pri  

        Order or Reparable    
        Assets, Whichever    
is Later
Required                
Delivery                
  A TBD     1 EA   *60 Calendar Days    
 
 
        Charge Amp      
 
 
Item No.                
2016                

 


 

                 
              Page 37 of 80  
          Indefinite Delivery Contract FA8519-16-D-0003  
 
        Charge Amp      
 
 
  Firm Fixed Price            
  Best   U/I   Unit Price         Estimated Total Price  
  Estimated              
  Qty              
  5   EA   $**         $**  
 
  NSN: 5996-01-431-2547 KV          
  BALANCING SYSTEM          
  PN: INPUT:**;OUTPUT**          
  Manufacturer       Part Number        
  26741       PN:        
        INPUT:** ;      
        OUTPUT**        
 
  Limitations of Liability: Other Than High Value Item        
 
  Inspection: Origin            
  Acceptance: Origin          
  Inspection/Acceptance Report:  

Receiving Report Required  

   
  Quality Assurance: Standard Inspection        
  Buy American Act/Balance of Payments Program        
  Type / Ship To     PACRN  

Mark For  

 
  A TBD       PAA        
  Type / Ship To   Quantity (U/I)  

            *ARO Funded  

_  

Req No / Pri  
        Order or Reparable    
        Assets, Whichever    
is Later
Required                
Delivery                
  A TBD     5 EA   *60 Calendar Days    
 
 
        Calibration      
 
 
Item No.                
2017                
  Firm Fixed Price            
  Best   U/I   Unit Price         Estimated Total Price  
  Estimated              
  Qty              
  1   EA   $**         $**  
 
  Calibration              
 
  Limitations of Liability: Other Than High Value Item        
 
  Inspection: Origin            
  Acceptance: Origin          
  Inspection/Acceptance Report:   Receiving Report Required      
  Quality Assurance: Commercial Item Inspection        
  Class I ODS Substance   Application/Use     Quantity  
  NONE              
  Type / Ship To     PACRN  

Mark For  

 
  A TBD       PAA        
  Type / Ship To   Quantity (U/I)  

             *ARO Funded  

_  

Req No / Pri  
        Order or Reparable    
        Assets, Whichever    
is Later

 


 

           
        Page 38 of 80  
        Indefinite Delivery Contract FA8519-16-D-0003  
 
        Calibration  
 
 
Required          
Delivery          
  A TBD     1 EA   *60 Calendar Days  
 
 
        DATA  
 
 
Item No.          
2018          
 
 
 
 
  CDRLs A001 - A008    
  IAW Attached DD1423s    
 
  Limitations of Liability: Other Than High Value Item  
 
  Inspection: Destination    
  Acceptance: Destination    
  Inspection/Acceptance Report: Wide Area Workflow  
  Quality Assurance: IAW DD1423s    
 
 
 
    A001 - Commercial Asset Visibility AF (CAV AF) End Item Reporting  
Item No.          
2018AA          
  Firm Fixed Price      
  Quantity   U/I   Unit Price   Amount  
  1   LO   Not Separately Priced   Not Separately Priced  
 
  CDRL A001        
  Commercial Asset Visibility AF (CAV AF) End Item Reporting  
  DI-MGMT-81634B      
  Exhibit: A        
 
 
 
      A002 - Contractor's Standard Operating Procedures (SOPs)  
Item No.          
2018AB          
  Firm Fixed Price      
  Quantity   U/I   Unit Price   Amount  
  1   LO   Not Separately Priced   Not Separately Priced  
 
  CDRL A002        
  Contractor's Standard Operating Procedures (SOPs)  
  DI-MGMT-81580      
  Exhibit: A        
 
 
 
      A003 - Technical Report - Study Services  
Item No.          
2018AC          
  Firm Fixed Price      
  Quantity   U/I   Unit Price   Amount  

 


 

           
        Page 39 of 80  
      Indefinite Delivery Contract FA8519-16-D-0003  
 
 
 
      A003 - Technical Report - Study Services    
  1   LO   Not Separately Priced   Not Separately Priced  
 
  CDRL A003        
  Technical Report - Study Services    
  DI-MGMT-80508B      
  Exhibit: A        
 
 
 
      A004 - Monthly Status Report    
Item No.          
2018AD          
  Firm Fixed Price      
  Quantity   U/I   Unit Price   Amount  
  1   LO   Not Separately Priced   Not Separately Priced  
 
  CDRL A004        
  Monthly Status Report    
  DI-MGMT-80368A      
  Exhibit: A        
 
 
 
      A005 - Safe Alerts    
Item No.          
2018AE          
  Firm Fixed Price      
  Quantity   U/I   Unit Price   Amount  
  1   LO   Not Separately Priced   Not Separately Priced  
 
  CDRL A005        
  Safe Alerts        
  DI-QCIC-80125B      
  Exhibit: A        
 
 
 
      A006 - GIDEP Response    
Item No.          
2018AF          
  Firm Fixed Price      
  Quantity   U/I   Unit Price   Amount  
  1   LO   Not Separately Priced   Not Separately Priced  
 
  CDRL A006        
  GIDEP Response      
  DI-QCIC-80126B      
  Exhibit: A        
 
 
 
      A007 - GIDEP    
Item No.          
2018AG          
  Firm Fixed Price      
  Quantity   U/I   Unit Price   Amount  
  1   LO   Not Separately Priced   Not Separately Priced  
 
  CDRL A007        

 


 

           
        Page 40 of 80  
      Indefinite Delivery Contract FA8519-16-D-0003  
 
 
 
      A007 - GIDEP    
  GIDEP        
  DI-QCIC-80127A      
  Exhibit: A        
 
 
 
      A008 - Software Product Specification    
Item No.          
2018AH          
  Firm Fixed Price      
  Quantity   U/I   Unit Price   Amount  
  1   LO   Not Separately Priced   Not Separately Priced  
 
  CDRL A008        
  Software Product Specification    
  DI-IPSC-81441A      
  Exhibit: A        
 
      Beyond Economical Repair    
 
 
Item No.          
2019          
  Firm Fixed Price      
  Best   U/I   Unit Price   Total Estimated Cost  
  Estimated        
  Qty        
  1   LO   Not Separately Priced   Not Separately Priced  
 
  Beyond Economical Repair    

 

 

Option III may be exercised at any time, from time to time, within 1095 days after effective date of basic contract.   Multiple option periods may be exercised simultaneously. An option is determined to have been exercised when transmitted electronically by fax or email.  
             
    OPTION III - New Production   PBS4100+    
 
             
Item No.            
3001            
  Firm Fixed Price        
  Best   U/I Unit Price       Estimated Total Price  
  Estimated          
  Qty          
  10   EA $**       $**  
 
  NSN: 6635-01-630-9391 KV        
  Balancing Machine        
  Manufacturer     Part Number      
  26741     **      
 
  Limitations of Liability: Other Than High Value Item      

 


 

                 
              Page 41 of 80  
          Indefinite Delivery Contract FA8519-16-D-0003  
 
 
 
 
  Inspection: Origin            
  Acceptance: Origin          
  Inspection/Acceptance Report:  

Receiving Report Required  

   
  Quality Assurance: Commercial Item Inspection        
  Trade Agreement Act          
  Class I ODS Substance   Application/Use     Quantity  
  None       None       None  
  Type / Ship To     PACRN  

Mark For  

 
  A TBD       PAA        
  Type / Ship To   Quantity (U/I)   *ARO Contract  

_  

Req No / Pri  
Required                
Delivery                
  A TBD     10 EA   *90 Calendar Days    
 
 
        New Production      
 
 
Item No.                
3002                
  Firm Fixed Price            
  Best   U/I   Unit Price         Estimated Total Price  
  Estimated              
  Qty              
  5   EA   $**         $**  
 
  NSN: 4920-01-624-5966 KV          
  Test Set Subassembly          
  Manufacturer       Part Number        
  26741       **        
 
  Limitations of Liability: Other Than High Value Item        
 
  Inspection: Origin            
  Acceptance: Origin          
  Inspection/Acceptance Report:  

Receiving Report Required  

   
  Quality Assurance: Standard Inspection        
  IUID Required: No            
  Type / Ship To     PACRN  

Mark For  

 
  A TBD       PAA        
  Type / Ship To   Quantity (U/I)   *ARO Contract  

_  

Req No / Pri  
Required                
Delivery                
  A TBD     5 EA   *90 Calendar Days    
 
 
 
 
        PBS-4100D+      
 
 
Item No.                
3003                
  Firm Fixed Price            
  Best   U/I   Unit Price         Estimated Total Price  
  Estimated              
  Qty              

 


 

                 
              Page 42 of 80  
          Indefinite Delivery Contract FA8519-16-D-0003  
 
        PBS-4100D+      
 
 
  10   EA   $**         $**  
 
  NSN: 6635-01-630-9391 KV          
  Balancing Machine            
 
  Limitations of Liability: Other Than High Value Item        
 
  Inspection: Origin            
  Acceptance: Origin          
  Inspection/Acceptance Report:  

Receiving Report Required  

   
  Quality Assurance: Contractor Responsibility for Inspection      
  Type / Ship To     PACRN  

Mark For  

 
  A TBD       PAA        
  Type / Ship To   Quantity (U/I)  

            *ARO Funded  

_  

Req No / Pri  

        Order or Reparable    
        Assets, Whichever    
is Later
Required                
Delivery                
  A TBD     10 EA   *60 Calendar Days    
 
 
        PBS-4100+      
 
 
Item No.                
3004                
  Firm Fixed Price            
  Best   U/I   Unit Price         Estimated Total Price  
  Estimated              
  Qty              
  5   EA   $**         $**  
 
  NSN: 6635-01-630-9391 KV          
  Balancing Machine            
  NSN IN: 6635-01-563-5989KV          
  NSN OUT:   6635-01-630-9391KV          
 
  Limitations of Liability: Other Than High Value Item        
 
  Inspection: Origin            
  Acceptance: Origin          
  Inspection/Acceptance Report: Receiving Report Required      
  Quality Assurance: Contractor Responsibility for Inspection      
  IUID Required: No            
  Type / Ship To     PACRN  

Mark For  

 
  A TBD       PAA        
  Type / Ship To   Quantity (U/I)  

             *ARO Funded  

_  

Req No / Pri  
        Order or Reparable    
        Assets, Whichever    
is Later
Required                
Delivery                
  A TBD     5 EA   *60 Calendar Days    

 


 

                 
              Page 43 of 80  
          Indefinite Delivery Contract FA8519-16-D-0003  
 
        PBS-4100R+      
 
 
Item No.                
3005                
  Firm Fixed Price            
  Best   U/I   Unit Price         Estimated Total Price  
  Estimated              
  Qty              
  2   EA   $**         $**  
 
  NSN: 4920-01-624-5966          
 
  Limitations of Liability: Other Than High Value Item        
 
  Inspection: Origin            
  Acceptance: Origin          
  Inspection/Acceptance Report:  

Receiving Report Required  

   
  Quality Assurance: Standard Inspection        
  IUID Required: No            
  Trade Agreement Act          
  Type / Ship To     PACRN  

Mark For  

 
  A TBD       PAA        
  Type / Ship To   Quantity (U/I)  

             *ARO Funded  

_  

Req No / Pri  
        Order or Reparable    
        Assets, Whichever    
is Later
Required                
Delivery                
  A TBD     2 EA   *60 Calendar Days    
 
 
        KC-135 Kit      
 
 
Item No.                
3006                
  Firm Fixed Price            
  Best   U/I   Unit Price         Estimated Total Price  
  Estimated              
  Qty              
  5   EA   $**         $**  
 
  NSN: 6625-01-395-8180 KV          
  Electrical Assembly Kit          
  Manufacturer       Part Number        
  26741       **        
 
  Limitations of Liability: Other Than High Value Item        
 
  Inspection: Origin            
  Acceptance: Origin          
  Inspection/Acceptance Report:  

Receiving Report Required  

   
  Quality Assurance: Standard Inspection        
  Type / Ship To     PACRN  

Mark For  

 
  A TBD       PAA        
  Type / Ship To   Quantity (U/I)  

            *ARO Funded  

_  

Req No / Pri  
       

Order or Reparable  

 
        Assets, Whichever    
is Later
Required                
Delivery                

 


 

                 
              Page 44 of 80  
          Indefinite Delivery Contract FA8519-16-D-0003  
 
        KC-135 Kit      
 
 
  A TBD     5 EA   *60 Calendar Days    
 
 
        B-1 Kit      
 
 
Item No.                
3007                
  Firm Fixed Price            
  Best   U/I   Unit Price         Estimated Total Price  
  Estimated              
  Qty              
  1   EA   $**         $**  
 
  NSN: 6625-01-502-6787 KV          
  Manufacturer       Part Number        
  26741       INPUT: ** ;      
       

     OUTPUT: **  

     
 
  Limitations of Liability: Other Than High Value Item        
 
  Inspection: Origin            
  Acceptance: Origin          
  Inspection/Acceptance Report:  

Receiving Report Required  

   
  Quality Assurance: Standard Inspection        
  Type / Ship To     PACRN  

Mark For  

 
  A TBD       PAA        
  Type / Ship To   Quantity (U/I)   *ARO Funded  

_  

Req No / Pri  
        Order or Reparable    
        Assets, Whichever    
is Later
Required                
Delivery                
  A TBD     1 EA   *60 Calendar Days    
 
 
        A-10 Kit      
 
 
Item No.                
3008                
  Firm Fixed Price            
  Best   U/I   Unit Price         Estimated Total Price  
  Estimated              
  Qty              
  3   EA   $**         $**  
 
  NSN: 6625-01-431-7920 KV          
  BALANCING SYSTEM          
  Manufacturer       Part Number        
  26741       **        
 
  Limitations of Liability: Other Than High Value Item        
 
  Inspection: Origin            
  Acceptance: Origin          
  Inspection/Acceptance Report:  

Receiving Report Required  

   
  Quality Assurance: Standard Inspection        
  Type / Ship To     PACRN  

Mark For  

 

 


 

                 
             

Page 45 of 80  

          Indefinite Delivery Contract FA8519-16-D-0003  
 
        A-10 Kit      
 
 
  A TBD       PAA        
  Type / Ship To   Quantity (U/I)   *ARO Funded  

_  

Req No / Pri  
        Order or Reparable    
        Assets, Whichever    
is Later
Required                
Delivery                
  A TBD     3 EA   *60 Calendar Days    
 
 
        C-5 Kit      
 
 
Item No.                
3009                
  Firm Fixed Price            
  Best   U/I   Unit Price         Estimated Total Price  
  Estimated              
  Qty              
  1   EA   $**         $**  
 
  NSN: 6625-01-563-6437 KV          
  Manufacturer       Part Number        
  26741       **        
 
  Limitations of Liability: Other Than High Value Item        
 
  Inspection: Origin            
  Acceptance: Origin          
  Inspection/Acceptance Report:  

Receiving Report Required  

   
  Quality Assurance: Standard Inspection        
  Type / Ship To     PACRN  

Mark For  

 
  A TBD       PAA        
  Type / Ship To   Quantity (U/I)  

*ARO Funded  

_  

Req No / Pri  
        Order or Reparable    
        Assets, Whichever    
is Later
Required                
Delivery                
  A TBD     1 EA   *60 Calendar Days    
 
 
        E-4 Kit      
 
 
Item No.                
3010                
  Firm Fixed Price            
  Best   U/I   Unit Price         Estimated Total Price  
  Estimated              
  Qty              
  1   EA   $**         $**  
 
  NSN: 6625-01-502-5175 KV          
  Manufacturer       Part Number        
  26741       INPUT: ** ;      
        OUTPUT:        
 
  Limitations of Liability: Other Than High Value Item        

 


 

                 
              Page 46 of 80  
          Indefinite Delivery Contract FA8519-16-D-0003  
 
        E-4 Kit      
 
 
 
  Inspection: Origin            
  Acceptance: Origin          
  Inspection/Acceptance Report:  

Receiving Report Required  

   
  Quality Assurance: Standard Inspection        
  Type / Ship To     PACRN  

Mark For  

 
  A TBD       PAA        
  Type / Ship To   Quantity (U/I)   *ARO Funded  

_  

Req No / Pri  

        Order or Reparable    
        Assets, Whichever    
is Later
Required                
Delivery                
  A TBD     1 EA   *60 Calendar Days    
 
 
        U-2 Kit      
 
 
Item No.                
3011                
  Firm Fixed Price            
  Best   U/I   Unit Price         Estimated Total Price  
  Estimated              
  Qty              
  1   EA   $**         $**  
 
  NSN: 6625-01-502-5177 KV          
  Manufacturer       Part Number        
  26741       INPUT: ** ;      
        OUTPUT:        
 
  Limitations of Liability: Other Than High Value Item        
 
  Inspection: Origin            
  Acceptance: Origin          
  Inspection/Acceptance Report:  

Receiving Report Required  

   
  Quality Assurance: Standard Inspection        
  Type / Ship To     PACRN  

Mark For  

 
  A TBD       PAA        
  Type / Ship To   Quantity (U/I)   *ARO Funded  

_  

Req No / Pri  

        Order or Reparable    
        Assets, Whichever    
is Later
Required                
Delivery                
  A TBD     1 EA   *60 Calendar Days    
 
 
        C-17 / F-117 Kit      
 
 
Item No.                
3012                
  Firm Fixed Price            
  Best   U/I   Unit Price         Estimated Total Price  
  Estimated              
  Qty              

 


 

                 
              Page 47 of 80  
          Indefinite Delivery Contract FA8519-16-D-0003  
 
        C-17 / F-117 Kit      
 
 
  2   EA   $**        

$**  

 
  NSN: 6625-01-481-5997 BE          
  Accessory Kit              
  Manufacturer       Part Number        
  26741       **        
 
  Limitations of Liability: Other Than High Value Item        
 
  Inspection: Origin            
  Acceptance: Origin          
  Inspection/Acceptance Report:  

Receiving Report Required  

   
  Quality Assurance: Standard Inspection        
  Type / Ship To     PACRN  

Mark For  

 
  A TBD       PAA        
  Type / Ship To   Quantity (U/I)  

              *ARO Funded  

_  

Req No / Pri  

        Order or Reparable    
        Assets, Whichever    
is Later
Required                
Delivery                
  A TBD     2 EA   *60 Calendar Days    
 
 
        B-2 Kit      
 
 
Item No.                
3013                
  Firm Fixed Price            
  Best   U/I   Unit Price         Estimated Total Price  
  Estimated              
  Qty              
  1   EA   $**         $**  
 
  NSN: 6625-01-502-5176 KV          
  Manufacturer       Part Number        
  26741       OUTPUT:        
       

     **  

     
 
  Limitations of Liability: Other Than High Value Item        
 
  Inspection: Origin            
  Acceptance: Origin          
  Inspection/Acceptance Report:   Receiving Report Required      
  Quality Assurance: Contractor Responsibility for Inspection      
  Type / Ship To     PACRN  

Mark For  

 
  A TBD       PAA        
  Type / Ship To   Quantity (U/I)  

             *ARO Funded  

_  

Req No / Pri  

        Order or Reparable    
        Assets, Whichever    
is Later
Required                
Delivery                
  A TBD     1 EA   *60 Calendar Days    

 


 

                 
              Page 48 of 80  
          Indefinite Delivery Contract FA8519-16-D-0003  
 
        B-52 Kit      
 
 
Item No.                
3014                
  Firm Fixed Price            
  Best   U/I   Unit Price         Estimated Total Price  
  Estimated              
  Qty              
  5   EA   $**         $**  
 
  NSN: 6625-01-628-1987 KV          
  Amplifier, Accelerom          
 
  Limitations of Liability: Other Than High Value Item        
 
  Inspection: Origin            
  Acceptance: Origin          
  Inspection/Acceptance Report: Receiving Report Required      
  Quality Assurance: Contractor Responsibility for Inspection      
  IUID Required: No            
  Type / Ship To     PACRN  

Mark For  

 
  A TBD       PAA        
  Type / Ship To   Quantity (U/I)  

             *ARO Funded  

_  

Req No / Pri  
        Order or Reparable    
        Assets, Whichever    
is Later
Required                
Delivery                
  A TBD     5 EA   *60 Calendar Days    
 
 
        Charge Amp      
 
 
Item No.                
3015                
  Firm Fixed Price            
  Best   U/I   Unit Price         Estimated Total Price  
  Estimated              
  Qty              
  2   EA   $**         $**  
 
  NSN: 5996-01-431-4624 KV          
  Amplifier, Accelerom          
  Manufacturer       Part Number        
  26741       INPUT: , OUTPUT:      
        **        
 
  Limitations of Liability: Other Than High Value Item        
 
  Inspection: Origin            
  Acceptance: Origin          
  Inspection/Acceptance Report:  

Receiving Report Required  

   
  Quality Assurance: Standard Inspection        
  IUID Required: No            
  Type / Ship To     PACRN  

Mark For  

 
  A TBD       PAA        
  Type / Ship To   Quantity (U/I)  

             *ARO Funded  

_  

Req No / Pri  
        Order or Reparable    
        Assets, Whichever    
is Later

 


 

                 
              Page 49 of 80  
          Indefinite Delivery Contract FA8519-16-D-0003  
 
        Charge Amp      
 
 
Required                
Delivery                
  A TBD     2 EA   *60 Calendar Days    
 
 
        Charge Amp      
 
 
Item No.                
3016                
  Firm Fixed Price            
  Best   U/I   Unit Price         Estimated Total Price  
  Estimated              
  Qty              
  5   EA   $**         $**  
 
  NSN: 5996-01-431-2547 KV          
  BALANCING SYSTEM          
  PN: INPUT:**;OUTPUT**          
  Manufacturer       Part Number        
  26741       PN:        
        INPUT:** ;      
        OUTPUT**        
 
  Limitations of Liability: Other Than High Value Item        
 
  Inspection: Origin            
  Acceptance: Origin          
  Inspection/Acceptance Report:  

Receiving Report Required  

   
  Quality Assurance: Standard Inspection        
  Buy American Act/Balance of Payments Program        
  Type / Ship To     PACRN  

Mark For  

 
  A TBD       PAA        
  Type / Ship To   Quantity (U/I)  

             *ARO Funded  

_  

Req No / Pri  
        Order or Reparable    
        Assets, Whichever    
is Later
Required                
Delivery                
  A TBD     5 EA   *60 Calendar Days    
 
 
        Calibration      
 
 
Item No.                
3017                
  Firm Fixed Price            
  Best   U/I   Unit Price         Estimated Total Price  
  Estimated              
  Qty              
  1   EA   $**         $**  
 
  Calibration              
 
  Limitations of Liability: Other Than High Value Item        

 


 

                 
              Page 50 of 80  
          Indefinite Delivery Contract FA8519-16-D-0003  
 
        Calibration      
 
 
 
  Inspection: Origin            
  Acceptance: Origin          
  Inspection/Acceptance Report:  

Receiving Report Required  

   
  Quality Assurance: Commercial Item Inspection        
  Class I ODS Substance   Application/Use     Quantity  
  NONE              
  Type / Ship To     PACRN  

Mark For  

 
  A TBD       PAA        
  Type / Ship To   Quantity (U/I)  

            *ARO Funded  

_  

Req No / Pri  
        Order or Reparable    
        Assets, Whichever    
is Later
Required                
Delivery                
  A TBD     1 EA   *60 Calendar Days    
 
 
        DATA      
 
 
Item No.                
3018                
 
 
 
 
  CDRLs A001 - A008          
  IAW Attached DD1423s          
 
  Limitations of Liability: Other Than High Value Item        
 
  Inspection: Destination          
  Acceptance: Destination          
  Inspection/Acceptance Report:   Wide Area Workflow      
  Quality Assurance: IAW DD1423s        
 
 
 
    A001 - Commercial Asset Visibility AF (CAV AF) End Item Reporting    
Item No.                
3018AA                
  Firm Fixed Price            
  Quantity   U/I   Unit Price         Amount  
  1   LO   Not Separately Priced       Not Separately Priced  
 
  CDRL A001              
  Commercial Asset Visibility AF (CAV AF) End Item Reporting      
  DI-MGMT-81634B            
  Exhibit: A              
 
 
 
      A002 - Contractor's Standard Operating Procedures (SOPs)    
Item No.                
3018AB                
  Firm Fixed Price            
  Quantity   U/I   Unit Price         Amount  

 


 

           
        Page 51 of 80  
      Indefinite Delivery Contract FA8519-16-D-0003  
 
 
 
      A002 - Contractor's Standard Operating Procedures (SOPs)    
  1   LO   Not Separately Priced   Not Separately Priced  
 
  CDRL A002        
  Contractor's Standard Operating Procedures (SOPs)    
  DI-MGMT-81580      
  Exhibit: A        
 
 
 
      A003 - Technical Report - Study Services    
Item No.          
3018AC          
  Firm Fixed Price      
  Quantity   U/I   Unit Price   Amount  
  1   LO   Not Separately Priced   Not Separately Priced  
 
  CDRL A003        
  Technical Report - Study Services    
  DI-MGMT-80508B      
  Exhibit: A        
 
 
 
      A004 - Monthly Status Report    
Item No.          
3018AD          
  Firm Fixed Price      
  Quantity   U/I   Unit Price   Amount  
  1   LO   Not Separately Priced   Not Separately Priced  
 
  CDRL A004        
  Monthly Status Report    
  DI-MGMT-80368A      
  Exhibit: A        
 
 
 
      A005 - Safe Alerts    
Item No.          
3018AE          
  Firm Fixed Price      
  Quantity   U/I   Unit Price   Amount  
  1   LO   Not Separately Priced   Not Separately Priced  
 
  CDRL A005        
  Safe Alerts        
  DI-QCIC-80125B      
  Exhibit: A        
 
 
 
      A006 - GIDEP Response    
Item No.          
3018AF          
  Firm Fixed Price      
  Quantity   U/I   Unit Price   Amount  
  1   LO   Not Separately Priced   Not Separately Priced  
 
  CDRL A006        

 


 

           
        Page 52 of 80  
      Indefinite Delivery Contract FA8519-16-D-0003  
 
 
 
      A006 - GIDEP Response    
  GIDEP Response      
  DI-QCIC-80126B      
  Exhibit: A        
 
 
 
      A007 - GIDEP    
Item No.          
3018AG          
  Firm Fixed Price      
  Quantity   U/I   Unit Price   Amount  
  1   LO   Not Separately Priced   Not Separately Priced  
 
  CDRL A007        
  GIDEP        
  DI-QCIC-80127A      
  Exhibit: A        
 
 
 
      A008 - Software Product Specification    
Item No.          
3018AH          
  Firm Fixed Price      
  Quantity   U/I   Unit Price   Amount  
  1   LO   Not Separately Priced   Not Separately Priced  
 
  CDRL A008        
  Software Product Specification    
  DI-IPSC-81441A      
  Exhibit: A        
 
      Beyond Economical Repair    
 
 
Item No.          
3019          
  Firm Fixed Price      
  Best   U/I   Unit Price   Estimated Total Price  
  Estimated        
  Qty        
  1   LO   Not Separately Priced   Not Separately Priced  
 
  Beyond Economical Repair    

 

Option IV may be exercised at any time, from time to time, within 1460 days after effective date of basic contract.   Multiple option periods may be exercised simultaneously. An option is determined to have been exercised when transmitted electronically by fax or email.  


 

                 
              Page 53 of 80  
          Indefinite Delivery Contract FA8519-16-D-0003  
 
 
 
                 
Item No.                
4001                
  Firm Fixed Price            
  Best   U/I   Unit Price         Estimated Total Price  
  Estimated              
  Qty              
  10   EA   $**         $**  
 
  NSN: 6635-01-630-9391 KV          
  Balancing Machine            
  Manufacturer       Part Number        
  26741       **        
 
  Limitations of Liability: Other Than High Value Item        
 
  Inspection: Origin            
  Acceptance: Origin          
  Inspection/Acceptance Report:  

Receiving Report Required  

   
  Quality Assurance: Commercial Item Inspection        
  Trade Agreement Act          
  Class I ODS Substance  

Application/Use  

  Quantity  
  None       None       None  
  Type / Ship To     PACRN  

Mark For  

 
  A TBD       PAA        
  Type / Ship To   Quantity (U/I)  

    *ARO Contract  

_  

Req No / Pri  
Required                
Delivery                
  A TBD     10 EA   *90 Calendar Days    
 
 
        New Production      
 
 
Item No.                
4002                
  Firm Fixed Price            
  Best   U/I   Unit Price         Estimated Total Price  
  Estimated              
  Qty              
  5   EA   $**         $**  
 
  NSN: 4920-01-624-5966 KV          
  Test Set Subassembly          
  Manufacturer       Part Number        
  26741       **        
 
  Limitations of Liability: Other Than High Value Item        
 
  Inspection: Origin            
  Acceptance: Origin          
  Inspection/Acceptance Report:  

Receiving Report Required  

   
  Quality Assurance: Standard Inspection        
  IUID Required: No            
  Type / Ship To     PACRN  

Mark For  

 
  A TBD       PAA        
  Type / Ship To   Quantity (U/I)  

    *ARO Contract  

_  

Req No / Pri  
Required                
Delivery                

 


 

                 
              Page 54 of 80  
          Indefinite Delivery Contract FA8519-16-D-0003  
 
        New Production      
 
 
  A TBD     5 EA   *90 Calendar Days    
 
 
 
 
        PBS-4100D+      
 
 
Item No.                
4003                
  Firm Fixed Price            
  Best   U/I   Unit Price         Estimated Total Price  
  Estimated              
  Qty              
  15   EA   $**         $**  
 
  NSN: 6635-01-630-9391 KV          
  Balancing Machine            
 
  Limitations of Liability: Other Than High Value Item        
 
  Inspection: Origin            
  Acceptance: Origin          
  Inspection/Acceptance Report:  

Receiving Report Required  

   
  Quality Assurance: Contractor Responsibility for Inspection      
  Type / Ship To     PACRN  

Mark For  

 
  A TBD       PAA        
  Type / Ship To   Quantity (U/I)  

            *ARO Funded  

_  

Req No / Pri  
        Order or Reparable    
        Assets, Whichever    
is Later
Required                
Delivery                
  A TBD     15 EA   *60 Calendar Days    
 
 
        PBS-4100+      
 
 
Item No.                
4004                
  Firm Fixed Price            
  Best   U/I   Unit Price         Estimated Total Price  
  Estimated              
  Qty              
  5   EA   $**         $**  
 
  NSN: 6635-01-630-9391 KV          
  Balancing Machine            
  NSN IN: 6635-01-563-5989KV          
  NSN OUT:   6635-01-630-9391KV          
 
  Limitations of Liability: Other Than High Value Item        
 
  Inspection: Origin            
  Acceptance: Origin          
  Inspection/Acceptance Report: Receiving Report Required      
  Quality Assurance: Contractor Responsibility for Inspection      
  IUID Required: No            

 


 

                 
              Page 55 of 80  
          Indefinite Delivery Contract FA8519-16-D-0003  
 
        PBS-4100+      
 
 
  Type / Ship To     PACRN  

Mark For  

 
  A TBD       PAA        
  Type / Ship To   Quantity (U/I)  

            *ARO Funded  

_  

Req No / Pri  
        Order or Reparable    
        Assets, Whichever    
is Later
Required                
Delivery                
  A TBD     5 EA   *60 Calendar Days    
 
 
        PBS-4100R+      
 
 
Item No.                
4005                
  Firm Fixed Price            
  Best   U/I   Unit Price         Estimated Total Price  
  Estimated              
  Qty              
  5   EA   $**         $**  
 
  NSN: 4920-01-624-5966          
 
  Limitations of Liability: Other Than High Value Item        
 
  Inspection: Origin            
  Acceptance: Origin          
  Inspection/Acceptance Report:  

Receiving Report Required  

   
  Quality Assurance: Standard Inspection        
  Trade Agreement Act          
  Type / Ship To     PACRN  

Mark For  

 
  A TBD       PAA        
  Type / Ship To   Quantity (U/I)  

             *ARO Funded  

_   Req No / Pri  
        Order or Reparable    
        Assets, Whichever    
is Later
Required                
Delivery                
  A TBD     5 EA   *60 Calendar Days    
 
 
        KC-135 Kit      
 
 
Item No.                
4006                
  Firm Fixed Price            
  Best   U/I   Unit Price         Estimated Total Price  
  Estimated              
  Qty              
  5   EA   $**         $**  
 
  NSN: 6625-01-395-8180 KV          
  Electrical Assembly Kit          
  Manufacturer       Part Number        
  26741       **        
 
  Limitations of Liability: Other Than High Value Item        

 


 

                 
              Page 56 of 80  
          Indefinite Delivery Contract FA8519-16-D-0003  
 
        KC-135 Kit      
 
 
 
  Inspection: Origin            
  Acceptance: Origin          
  Inspection/Acceptance Report:  

Receiving Report Required  

   
  Quality Assurance: Standard Inspection        
  Type / Ship To     PACRN  

Mark For  

 
  A TBD       PAA        
  Type / Ship To   Quantity (U/I)   *ARO Funded  

_  

Req No / Pri  

        Order or Reparable    
        Assets, Whichever    
is Later
Required                
Delivery                
  A TBD     5 EA   *60 Calendar Days    
 
 
        B-1 Kit      
 
 
Item No.                
4007                
  Firm Fixed Price            
  Best   U/I   Unit Price         Estimated Total Price  
  Estimated              
  Qty              
  1   EA   $**         $**  
 
  NSN: 6625-01-502-6787 KV          
  Manufacturer       Part Number        
  26741       INPUT: ** ;      
       

     OUTPUT: **  

     
 
  Limitations of Liability: Other Than High Value Item        
 
  Inspection: Origin            
  Acceptance: Origin          
  Inspection/Acceptance Report:  

Receiving Report Required  

   
  Quality Assurance: Standard Inspection        
  Type / Ship To     PACRN  

Mark For  

 
  A TBD       PAA        
  Type / Ship To   Quantity (U/I)   *ARO Funded  

_  

Req No / Pri  

        Order or Reparable    
        Assets, Whichever    
is Later
Required                
Delivery                
  A TBD     1 EA   *60 Calendar Days    
 
 
        A-10 Kit      
 
 
Item No.                
4008                
  Firm Fixed Price            
  Best   U/I   Unit Price        

Total Estimated Cost  

  Estimated              
  Qty              

 


 

                 
              Page 57 of 80  
          Indefinite Delivery Contract FA8519-16-D-0003  
 
        A-10 Kit      
 
 
  3   EA   $**        

$**  

 
  NSN: 6625-01-431-7920 KV          
  BALANCING SYSTEM          
  Manufacturer       Part Number        
  26741       **        
 
  Limitations of Liability: Other Than High Value Item        
 
  Inspection: Origin            
  Acceptance: Origin          
  Inspection/Acceptance Report:  

Receiving Report Required  

   
  Quality Assurance: Standard Inspection        
  Type / Ship To     PACRN  

Mark For  

 
  A TBD       PAA        
  Type / Ship To   Quantity (U/I)   *ARO Funded  

_  

Req No / Pri  

        Order or Reparable    
        Assets, Whichever    
is Later
Required                
Delivery                
  A TBD     3 EA   *60 Calendar Days    
 
 
        C-5 Kit      
 
 
Item No.                
4009                
  Firm Fixed Price            
  Best   U/I   Unit Price         Estimated Total Price  
  Estimated              
  Qty              
  1   EA   $**         $**  
 
  NSN: 6625-01-563-6437 KV          
  Manufacturer       Part Number        
  26741       **        
 
  Limitations of Liability: Other Than High Value Item        
 
  Inspection: Origin            
  Acceptance: Origin          
  Inspection/Acceptance Report:  

Receiving Report Required  

   
  Quality Assurance: Standard Inspection        
  Type / Ship To     PACRN  

Mark For  

 
  A TBD       PAA        
  Type / Ship To   Quantity (U/I)   *ARO Funded  

_  

Req No / Pri  

        Order or Reparable    
        Assets, Whichever    
is Later
Required                
Delivery                
  A TBD     1 EA   *60 Calendar Days    

 


 

                 
             

Page 58 of 80  

          Indefinite Delivery Contract FA8519-16-D-0003  
 
        E-4 Kit      
 
 
Item No.                
4010                
  Firm Fixed Price            
  Best   U/I   Unit Price         Estimated Total Price  
  Estimated              
  Qty              
  1   EA   $**         $**  
 
  NSN: 6625-01-502-5175 KV          
  Manufacturer       Part Number        
  26741       INPUT: ** ;      
        OUTPUT:        
 
  Limitations of Liability: Other Than High Value Item        
 
  Inspection: Origin            
  Acceptance: Origin          
  Inspection/Acceptance Report:  

Receiving Report Required  

   
  Quality Assurance: Standard Inspection        
  Type / Ship To     PACRN  

Mark For  

 
  A TBD       PAA        
  Type / Ship To   Quantity (U/I)   *ARO Funded  

_  

Req No /   Pri  
        Order or Reparable    
        Assets, Whichever    
is Later
Required                
Delivery                
  A TBD     1 EA   *60 Calendar Days    
 
 
        U-2 Kit      
 
 
Item No.                
4011                
  Firm Fixed Price            
  Quantity   U/I   Unit Price         Amount  
  1   EA   $**         $**  
 
  NSN: 6625-01-502-5177 KV          
  Manufacturer       Part Number        
  26741       INPUT: ** ;      
        OUTPUT:        
 
  Limitations of Liability: Other Than High Value Item        
 
  Inspection: Origin            
  Acceptance: Origin          
  Inspection/Acceptance Report:  

Receiving Report Required  

   
  Quality Assurance: Standard Inspection        
  Type / Ship To     PACRN  

Mark For  

 
  A TBD       PAA        
  Type / Ship To   Quantity (U/I)   *ARO Funded   _   Req No /   Pri  
        Order or Reparable    
        Assets, Whichever    
is Later
Required                
Delivery                

 


 

                 
              Page 59 of 80  
          Indefinite Delivery Contract FA8519-16-D-0003  
 
        U-2 Kit      
 
 
  A TBD     1 EA   *60 Calendar Days    
 
 
        C-17 / F-117 Kit      
 
 
Item No.                
4012                
  Firm Fixed Price            
  Best   U/I   Unit Price         Estimated Total Price  
  Estimated              
  Qty              
  2   EA   $**         $**  
 
  NSN: 6625-01-481-5997 BE          
  Accessory Kit              
  Manufacturer       Part Number        
  26741       **        
 
  Limitations of Liability: Other Than High Value Item        
 
  Inspection: Origin            
  Acceptance: Origin          
  Inspection/Acceptance Report:  

Receiving Report Required  

   
  Quality Assurance: Standard Inspection        
  Type / Ship To     PACRN  

Mark For  

 
  A TBD       PAA        
  Type / Ship To   Quantity (U/I)  

             *ARO Funded  

_  

Req No / Pri  
        Order or Reparable    
        Assets, Whichever    
is Later
Required                
Delivery                
  A TBD     2 EA   *60 Calendar Days    
 
 
        B-2 Kit      
 
 
Item No.                
4013                
  Firm Fixed Price            
  Best   U/I   Unit Price         Estimated Total Price  
  Estimated              
  Qty              
  1   EA   $**         $**  
 
  NSN: 6625-01-502-5176 KV          
  Manufacturer       Part Number        
  26741       OUTPUT:        
       

      **  

     
 
  Limitations of Liability: Other Than High Value Item        
 
  Inspection: Origin            
  Acceptance: Origin          
  Inspection/Acceptance Report:  

Receiving Report Required  

   
  Quality Assurance: Contractor Responsibility for Inspection      
  Type / Ship To     PACRN  

Mark For  

 

 


 

                 
             

Page 60 of 80  

          Indefinite Delivery Contract FA8519-16-D-0003  
 
          B-2 Kit      
 
 
  A TBD       PAA        
  Type / Ship To   Quantity (U/I)  

        *ARO Funded  

_  

Req No / Pri  
        Order or Reparable    
        Assets, Whichever    
is Later
Required                
Delivery                
  A TBD     1 EA   *60 Calendar Days    
 
 
          B-52 Kit      
 
 
Item No.                
4014                
  Firm Fixed Price            
  Best   U/I   Unit Price         Estimated Total Price  
  Estimated              
  Qty              
  5   EA   $**         $**  
 
  NSN: 6625-01-628-1987 KV          
  Amplifier, Accelerom          
 
  Limitations of Liability: Other Than High Value Item      
 
  Inspection: Origin            
  Acceptance: Origin          
  Inspection/Acceptance Report: Receiving Report Required      
  Quality Assurance: Contractor Responsibility for Inspection      
  IUID Required: No            
  Type / Ship To     PACRN  

Mark For  

 
  A TBD       PAA        
  Type / Ship To   Quantity (U/I)  

        *ARO Funded  

_  

Req No / Pri  
        Order or Reparable    
        Assets, Whichever    
is Later
Required                
Delivery                
  A TBD     5 EA   *60 Calendar Days    
 
 
        Charge Amp      
 
 
Item No.                
4015                
  Firm Fixed Price            
  Best   U/I   Unit Price         Estimated Total Price  
  Estimated              
  Qty              
  2   EA   $**         $**  
 
  NSN: 5996-01-431-4624 KV          
  Amplifier, Accelerom          
  Manufacturer       Part Number      
  26741       INPUT: , OUTPUT:      
        **        

 


 

                 
              Page 61 of 80  
          Indefinite Delivery Contract FA8519-16-D-0003  
 
        Charge Amp      
 
 
 
  Limitations of Liability: Other Than High Value Item        
 
  Inspection: Origin            
  Acceptance: Origin          
  Inspection/Acceptance Report:  

Receiving Report Required  

   
  Quality Assurance: Standard Inspection        
  IUID Required: No            
  Type / Ship To     PACRN  

Mark For  

 
  A TBD       PAA        
  Type / Ship To   Quantity (U/I)  

             *ARO Funded  

_  

Req No / Pri  

        Order or Reparable    
        Assets, Whichever    
is Later
Required                
Delivery                
  A TBD     2 EA   *60 Calendar Days    
 
 
        Charge Amp      
 
 
Item No.                
4016                
  Firm Fixed Price            
  Best   U/I   Unit Price         Estimated Total Price  
  Estimated              
  Qty              
  5   EA   $**         $**  
 
  NSN: 5996-01-431-2547 KV          
  BALANCING SYSTEM          
  PN: INPUT:**;OUTPUT**          
  Manufacturer       Part Number        
  26741       PN:        
        INPUT:** ;      
        OUTPUT**        
 
  Limitations of Liability: Other Than High Value Item        
 
  Inspection: Origin            
  Acceptance: Origin          
  Inspection/Acceptance Report:  

Receiving Report Required  

   
  Quality Assurance: Standard Inspection        
  Buy American Act/Balance of Payments Program        
  Type / Ship To     PACRN  

Mark For  

 
  A TBD       PAA        
  Type / Ship To   Quantity (U/I)  

            *ARO Funded  

_  

Req No / Pri  
        Order or Reparable    
        Assets, Whichever    
is Later
Required                
Delivery                
  A TBD     5 EA   *60 Calendar Days    

 


 

                 
              Page 62 of 80  
          Indefinite Delivery Contract FA8519-16-D-0003  
 
        Calibration      
 
 
Item No.                
4017                
  Firm Fixed Price            
  Best   U/I   Unit Price         Estimated Total Price  
  Estimated              
  Qty              
  1   EA   $**         $**  
 
  Calibration              
 
  Limitations of Liability: Other Than High Value Item        
 
  Inspection: Origin            
  Acceptance: Origin          
  Inspection/Acceptance Report:   Receiving Report Required      
  Quality Assurance: Commercial Item Inspection        
  Class I ODS Substance   Application/Use     Quantity  
  NONE              
  Type / Ship To     PACRN  

Mark For  

 
  A TBD       PAA        
  Type / Ship To   Quantity (U/I)  

             *ARO Funded  

_  

Req No / Pri  
        Order or Reparable    
        Assets, Whichever    
is Later
Required                
Delivery                
  A TBD     1 EA   *60 Calendar Days    
 
 
        DATA      
 
 
Item No.                
4018                
 
 
 
 
  CDRLs A001 - A008          
  IAW Attached DD1423s          
 
  Limitations of Liability: Other Than High Value Item        
 
  Inspection: Destination          
  Acceptance: Destination          
  Inspection/Acceptance Report:   Wide Area Workflow      
  Quality Assurance: IAW DD1423s        
 
 
 
    A001 - Commercial Asset Visibility AF (CAV AF) End Item Reporting    
Item No.                
4018AA                
  Firm Fixed Price            
  Quantity   U/I   Unit Price         Amount  
  1   LO   Not Separately Priced       Not Separately Priced  
 
  CDRL A001              
  Commercial Asset Visibility AF (CAV AF) End Item Reporting      

 


 

           
        Page 63 of 80  
      Indefinite Delivery Contract FA8519-16-D-0003  
 
 
 
    A001 - Commercial Asset Visibility AF (CAV AF) End Item Reporting    
  DI-MGMT-81634B      
  Exhibit: A        
 
 
 
      A002 - Contractor's Standard Operating Procedures (SOPs)    
Item No.          
4018AB          
  Firm Fixed Price      
  Quantity   U/I   Unit Price   Amount  
  1   LO   Not Separately Priced   Not Separately Priced  
 
  CDRL A002        
  Contractor's Standard Operating Procedures (SOPs)    
  DI-MGMT-81580      
  Exhibit: A        
 
 
 
      A003 - Technical Report - Study Services    
Item No.          
4018AC          
  Firm Fixed Price      
  Quantity   U/I   Unit Price   Amount  
  1   LO   Not Separately Priced   Not Separately Priced  
 
  CDRL A003        
  Technical Report - Study Services    
  DI-MGMT-80508B      
  Exhibit: A        
 
 
 
      A004 - Monthly Status Report    
Item No.          
4018AD          
  Firm Fixed Price      
  Quantity   U/I   Unit Price   Amount  
  1   LO   Not Separately Priced   Not Separately Priced  
 
  CDRL A004        
  Monthly Status Report    
  DI-MGMT-80368A      
  Exhibit: A        
 
 
 
      A005 - Safe Alerts    
Item No.          
4018AE          
  Firm Fixed Price      
  Quantity   U/I   Unit Price   Amount  
  1   LO   Not Separately Priced   Not Separately Priced  
 
  CDRL A005        
  Safe Alerts        
  DI-QCIC-80125B      
  Exhibit: A        

 


 

           
        Page 64 of 80  
      Indefinite Delivery Contract FA8519-16-D-0003  
 
 
 
      A006 - GIDEP Response    
Item No.          
4018AF          
  Firm Fixed Price      
  Quantity   U/I   Unit Price   Amount  
  1   LO   Not Separately Priced   Not Separately Priced  
 
  CDRL A006        
  GIDEP Response      
  DI-QCIC-80126B      
  Exhibit: A        
 
 
 
      A007 - GIDEP    
Item No.          
4018AG          
  Firm Fixed Price      
  Quantity   U/I   Unit Price   Amount  
  1   LO   Not Separately Priced   Not Separately Priced  
 
  CDRL A007        
  GIDEP        
  DI-QCIC-80127A      
  Exhibit: A        
 
 
 
      A008 - Software Product Specification    
Item No.          
4018AH          
  Firm Fixed Price      
  Quantity   U/I   Unit Price   Amount  
  1   LO   Not Separately Priced   Not Separately Priced  
 
  CDRL A008        
  Software Product Specification    
  DI-IPSC-81441A      
  Exhibit: A        
 
      Beyond Economical Repair    
 
 
Item No.          
4019          
  Firm Fixed Price      
  Best   U/I   Unit Price   Estimated Total Price  
  Estimated        
  Qty        
  1   LO   Not Separately Priced   Not Separately Priced  
 
  Beyond Economical Repair    

 


 

   
Page 65 of 80  
Indefinite Delivery Contract FA8519-16-D-0003  

 

      SHIP TO / PLACE OF PERFORMANCE

TYPE/CODE: A TBD
     TO BE DETERMINED

MARK FOR: (See Individual Line Item)
REQUISITION NUMBER: (See Individual Line Item)
REQUISITION PRIORITY: (See Individual Line Item)
AWARD NUMBER:
FA8519-16-D-0003
BASIC CONTRACT NUMBER: FA851916D0003


 

           
        Page 66 of 80  
        Indefinite Delivery Contract FA8519-16-D-0003  
 
CONTRACT CLAUSES
 
 
252.203 7000    REQUIREMENTS RELATING TO COMPENSATION OF FORMER DOD OFFICIALS     (SEP 2011)   
  (IAW DFARS 203.171 4(a), DFARS 212.301(f)(ii))   
           
252.203-7003   AGENCY OFFICE OF THE INSPECTOR GENERAL (DEC 2012)  
  (IAW DFARS 203.1004(a), DFARS 212.301(f)(iii))  
 
252.205-7000   PROVISION OF INFORMATION TO COOPERATIVE AGREEMENT HOLDERS  
  (DEC 1991)        
  (IAW DFARS 205.470, DFARS 212.301(f)(x))  
 
252.211-7003   ITEM UNIQUE IDENTIFICATION AND VALUATION (MAR 2016)  
  (IAW DFARS 211.274-6(a)(1), DFARS 212.301(f)(xii))  
(a) Definitions . As used in this clause—        
 
“DoD recognized unique identification equivalent” means a unique identification method that is in commercial use and  
has been recognized by DoD. All DoD recognized unique identification equivalents are listed at  
http://www.acq.osd.mil/dpap/pdi/uid/iuid/equivalents.html .    
“Unique item identifier type” means a designator to indicate which method of uniquely identifying a part has been  
used. The current list of accepted unique item identifier types is maintained at  
http://www.acq.osd.mil/dpap/pdi/uid/uii_types.html .      
 
(c) Unique item identifier.          
(1) The Contractor shall provide a unique item identifier for the following:  
(i) Delivered items for which the Government’s unit acquisition cost is $5,000 or more, except for  
the following line items:      
 
Contract Line, Subline, or     Item Description  
Exhibit Line Item Number          
      See Schedule as Applicable  
           
 
(ii) Items for which the Government’s unit acquisition cost is less than $5,000 that are identified in  
the Schedule or the following table:    
 
Contract Line, Subline, or     Item Description  
Exhibit Line Item Number          
*Items less than $5000, which require UID, will be specifically  

See Schedule as Applicable  

identified in the schedule.          
           
 
(iii) Subassemblies, components, and parts embedded within delivered items, items with warranty  
requirements, DoD serially managed reparables and DoD serially managed nonreparables as  
specified in Attachment Number   ( or See Schedule as Applicable).  
(iv) Any item of special tooling or special test equipment as defined in FAR 2.101 that have been  
designated for preservation and storage for a Major Defense Acquisition Program as specified in  
Attachment Number   ( or See Schedule as Applicable).  
(v) Any item not included in paragraphs (c)(1)(i), (ii), (iii), or (iv) of this clause for which the  
contractor creates and marks a unique item identifier for traceability.  
 
(f) The Contractor shall submit the information required by paragraphs (d) and (e) of this clause as follows:  
(1) End items shall be reported using the receiving report capability in Wide Area WorkFlow (WAWF) in  
accordance with the clause at 252.232-7003. If WAWF is not required by this contract, and the contractor is  
not using WAWF, follow the procedures at http://dodprocurementtoolbox.com/site/uidregistry/ .  
(2) Embedded items shall be reported by one of the following methods—  
(i) Use of the embedded items capability in WAWF;  
(ii) Direct data submission to the IUID Registry following the procedures and formats at  
http://dodprocurementtoolbox.com/ site/uidregistry/; or  

 


 

         
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  (iii) Via WAWF as a deliverable attachment for exhibit line item number   , Unique Item  
 

Identifier Report for Embedded Items, Contract Data Requirements List, DD Form 1423.  

 
 
52.212-5   CONTRACT TERMS AND CONDITIONS REQUIRED TO IMPLEMENT STATUTES OR   EXECUTIVE ORDERS--COMMERCIAL ITEMS (JUN 2016)
 
  (IAW FAR 12.301(b)(4))    
(a) The Contractor shall comply with the following Federal Acquisition Regulation (FAR) clauses, which are  
incorporated in this contract by reference, to implement provisions of law or Executive orders applicable to  
acquisitions of commercial items:      
(1) 52.209-10, Prohibition on Contracting with Inverted Domestic Corporations (Nov 2015).  
(2) 52.233-3 , Protest After Award (Aug 1996)(31 U.S.C 3553).    
(3) 52.233-4 , Applicable Law for Breach of Contract Claim (Oct 2004)(Public Laws 108-77 and 108-78 (19  
U.S.C. 3805 note)).      
 
(b) The Contractor shall comply with the FAR clauses in this paragraph (b) that the Contracting Officer has indicated  
as being incorporated in this contract by reference to implement provisions of law or Executive orders applicable to  
acquisitions of commercial items:      
 
[Contracting Officer check as appropriate.]    
X   (1)   52.203-6 , Restrictions on Subcontractor Sales to the Government (Sep 2006),  
    with Alternate I (Oct 1995)(41 U.S.C. 4704 and 10 U.S.C. 2402).  
X   (2)   52.203-13, Contractor Code of Business Ethics and Conduct (Oct 2015) (41  
    U.S.C. 3509).    
  (3)   52.203-15 , Whistleblower Protections Under the American Recovery and  
    Reinvestment Act of 2009 (Jun 2010) (Section 1553 of Pub. L. 111-5).  
    (Applies to contracts funded by the American Recovery and  
Reinvestment Act of 2009.)
X   (4)   52.204-10 , Reporting Executive Compensation and First-Tier Subcontract  
    Awards (Oct 2015) (Pub. L. 109-282) (31 U.S.C. 6101 note).  
  (5)   [Reserved].    
  (6)   52.204-14 , Service Contract Reporting Requirements (Jan 2014) (Pub. L.  
    111-117, section 743 of Div. C).    
  (7)   52.204-15, Service Contract Reporting Requirements for Indefinite-Delivery  
    Contracts (Jan 2014) (Pub. L. 111-117, section 743 of Div. C).  
X   (8)   52.209-6 , Protecting the Government’s Interest When Subcontracting with  
    Contractors Debarred, Suspended, or Proposed for Debarment (Oct  
    2015) (31 U.S.C. 6101 note).    
X   (9)   52.209-9, Updates of Publicly Available Information Regarding Responsibility  
    Matters (Jul 2013) (41 U.S.C. 2313).    
  (10)   [Reserved]    
_   (11)   (i) 52.219-3 , Notice of HUBZone Set-Aside or Sole-Source Award (Nov 2011)(15  
    U.S.C. 657a).    
  (11)   (ii) Alternate I (Nov 2011) of 52.219-3.    
  (12)   52.219-4 , Notice of Price Evaluation Preference for HUBZone Small Business  
    Concerns (Oct 2014) (if the offeror elects to waive the preference, it  
    shall so indicate in its offer)(15 U.S.C. 657a).    
  (12)   (ii) Alternate I (Jan 2011) of 52.219-4.    
  (13)   [Reserved]    
  (14)   (i) 52.219-6 , Notice of Total Small Business Set-Aside (Nov 2011)(15 U.S.C.  
    644).    
  (14)   (ii) Alternate I (Nov 2011).    
  (14)   (iii) Alternate II (Nov 2011).    
  (15)   (i) 52.219-7 , Notice of Partial Small Business Set-Aside (June 2003)(15 U.S.C.  
    644).    
  (15)   (ii) Alternate I (Oct 1995) of 52.219-7.    
  (15)   (iii) Alternate II (Mar 2004) of 52.219-7.    

 


 

       
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X   (16)   52.219-8 , Utilization of Small Business Concerns (Oct 2014) (15 U.S.C.  
    637(d)(2) and (3)).  
  (17)   (i) 52.219-9 , Small Business Subcontracting Plan (Oct 2015)(15 U.S.C.  
    637(d)(4)). (In accordance with DDP Memo dated 9 Sep 2013, DAR  
    Tracking Number 2013-O0014, Class Deviation—Summary Subcontract  
    Report Submission, this clause is replaced with DFARS Deviation dated  
    Aug 2013. Effective until incorporated into the FAR or DFARS or until  
    rescinded.)  
  (17)   (ii) Alternate I (Oct 2001) of 52.219-9.  
  (17)   (iii) Alternate II (Oct 2001) of 52.219-9.  
  (17)   (iv) Alternate III (Oct 2015) of 52.219-9.  
  (18)   52.219-13 , Notice of Set-Aside of Orders (Nov 2011) (15 U.S.C. 644(r)).  
  (19)   52.219-14 , Limitations on Subcontracting (Nov 2011)(15 U.S.C. 637(a)(14)).  
X   (20)   52.219-16 , Liquidated Damages—Subcontracting Plan (Jan 1999) (15 U.S.C.  
    637(d)(4)(F)(i)).  
  (21)   52.219-27 , Notice of Service-Disabled Veteran-Owned Small Business Set-Aside  
(Nov 2011)(15 U.S.C. 657 f).
X   (22)   52.219-28 , Post Award Small Business Program Rerepresentation (Jul 2013) (15  
    U.S.C. 632(a)(2)).  
  (23)   52.219-29, Notice of Set-Aside for, or sole Source Award to, Economically  
    Disadvantaged Women-Owned Small Business Concerns (Dec 2015)  
    (15 U.S.C. 637(m)).  
  (24)   52.219-30, Notice of Set-Aside for, or Sole source Award to, Women-Owned  
    Small Business Concerns Eligible Under the Women Owned Small  
    Business Program (Dec 2015) (15 U.S.C. 637(m)).  
X   (25)   52.222-3 , Convict Labor (June 2003)(E.O. 11755).  
  (26)   52.222-19 , Child Labor—Cooperation with Authorities and Remedies (Feb  
    2016)(E.O. 13126).  
X   (27)   52.222-21 , Prohibition of Segregated Facilities (Apr 2015).  
X   (28)   52.222-26 , Equal Opportunity (Apr 2015)(E.O. 11246).  
X   (29)   52.222-35 , Equal Opportunity for Veterans (Oct 2015)(38 U.S.C. 4212).  
X   (30)   52.222-36 , Equal Opportunity For Workers with Disabilities (Jul 2014)(29 U.S.C.  
    793).  
X   (31)   52.222-37 , Employment Reports on Veterans (Feb 2016)(38 U.S.C. 4212).  
X   (32)   52.222-40 , Notification of Employee Rights Under the National Labor Relations  
Act (Dec 2010) (E.O. 13496).
X   (33)   (i) 52.222-50 , Combating Trafficking in Persons (Mar 2015) (22 U.S.C. chapter  
    78 and E.O. 13627).  
  (33)   (ii) Alternate I (Mar 2015) of 52.222-50 (22 U.S.C. chapter 78 and E.O. 13627).  
  (34)   52.222-54 , Employment Eligibility Verification (Oct 2015) (E. O. 12989). (Not  
    applicable to the acquisition of commercially available off-the-shelf items  
    or certain other types of commercial items as prescribed in 22.1803.)  
_   (35)   (i) 52.223-9 , Estimate of Percentage of Recovered Material Content for  
    EPA-Designated Items (May 2008)(42 U.S.C. 6962(c)(3)(A)(ii)). (Not  
    applicable to the acquisition of commercially available off-the-shelf  
    items.)  
_   (35)   (ii) Alternate I (May 2008) of 52.223-9 (42 U.S.C. 6962(i)(2)(C)). (Not applicable  
    to the acquisition of commercially available off-the-shelf items.)  
  (36)   52.223-11 , Ozone-Depleting Substances and High Global Warming Potential  
    Hydrofluorocarbons (June 2016) (E.O. 13693)  
  (37)   52.223-12 , Maintenance, Service, Repair, or Disposal of Refrigeration  
    Equipment and Air Conditioners (June 2016) (E.O. 13693)  
_   (38)   (i) 52.223-13 , Acquisition of EPEAT®-Registered Imaging Equipment (Oct 2015)  
    (E.O.s 13423 and 13514).  

 


 

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_   (38)   (ii) Alternate I (Oct 2015) of 52.223-13.  
_   (39)   (i) 52.223-14 , Acquisition of EPEAT®-Registered Televisions (Jun 2014) (E.O.s  
    13423 and 13514).  
_   (39)   (ii) Alternate I (Jun 2014) of 52.223-14.  
    (40)   52.223-15 , Energy Efficiency in Energy-Consuming Products (Dec 2007)  
        (42.U.S.C. 8259b).  
  (41)   (i) 52.223-16 , Acquisition of EPEAT®-Registered Personal Computer Products  
    (Oct 2015) (E.O.s 13423 and 13514).  
_   (41)   (ii) Alternate I (Jun 2014) of 52.223-16.  
X   (42)   52.223-18 , Encouraging Contractor Policies to Ban Text Messaging While  
    Driving (Aug 2011)(E.O. 13513).  
  (43)   52.223-20 , Aerosols (June 2016) (E.O. 13693)  
  (44)   52.223-21 , Foams (June 2016) (E.O. 13693)  
  (45)   52.225-1 , Buy American--Supplies (May 2014)(41 U.S.C. chapter 83).  
  (46)   (i) 52.225-3 , Buy American--Free Trade Agreements--Israeli Trade Act (May  
    2014) (41 U.S.C. chapter 83, 19 U.S.C. 3301 note, 19 U.S.C. 2112  
    note, 19 U.S.C. 3805 note, 19 U.S.C. 4001 note, Pub. L. 103-182,  
    108-77, 108-78, 108-286, 108-302, 109-53, 109-169, 109-283, 110-138,  
112-41, 112-42, and 112-43).
_   (46)   (ii) Alternate I (May 2014) of 52.225-3.  
_   (46)   (iii) Alternate II (May 2014) of 52.225-3.  
_   (46)   (iv) Alternate III (May 2014) of 52.225-3.  
  (47)   52.225-5 , Trade Agreements (Feb 2016) (19 U.S.C. 2501, et seq. , 19 U.S.C.  
    3301 note).  
X   (48)   52.225-13 , Restriction on Certain Foreign Purchases (Jun 2008)(E.O.s,  
    proclamations, and statutes administered by the Office of Foreign  
    Assets Control of the Department of Treasury).  
  (49)   52.225-26 , Contractors Performing Private Security Functions Outside the United  
    States (Jul 2013) (Section 862, as amended, of the National Defense  
    Authorization Act for Fiscal Year 2008; 10 U.S.C. 2302 Note).  
  (50)   52.226-4 , Notice of Disaster or Emergency Area Set-Aside (Nov 2007)(42 U.S.C.  
    5150).  
  (51)   52.226-5 , Restrictions on Subcontracting Outside Disaster or Emergency Area  
(Nov 2007)(42 U.S.C. 5150).
  (52)   52.232-29 , Terms for financing of Purchases of Commercial Items (Feb 2002)(41  
    U.S.C. 4505), 10 U.S.C. 2307(f)).  
  (53)   52.232-30 , Installment Payments for Commercial Items (Oct 1995)(41 U.S.C.  
4505, 10 U.S.C. 2307(f)).
X   (54)   52.232-33 , Payment by Electronic Funds Transfer—System for Award  
    Management (Jul 2013)(31.U.S.C. 3332).  
  (55)   52.232-34 , Payment by Electronic Funds Transfer—Other than System for  
    Award Management (Jul 2013)(31.U.S.C. 3332).  
  (56)   52.232-36 , Payment by Third Party (May 2014) (31 U.S.C. 3332).  
  (57)   52.239-1 , Privacy or Security Safeguards (Aug 1996)(5 U.S.C. 552a).  
  (58)   (i) 52.247-64 , Preference for Privately Owned U.S.-Flag Commercial Vessels  
    (Feb 2006) (46 U.S.C. Appx. 1241(b) and 10 U.S.C. 2631).  
_   (58)   (ii) Alternate I (Apr 2003) of 52.247-64.  
 
(c) The Contractor shall comply with the FAR clauses in this paragraph (c), applicable to commercial services, that  
the Contracting Officer has indicated as being incorporated in this contract by reference to implement provisions of  
law or Executive orders applicable to acquisitions of commercial items:  
 
[Contracting Officer check as appropriate.]  
  (1)  

52.222-17 , Nondisplacement of Qualified Workers (May 2014) (E.O. 13495).  

X   (2)  

52.222-41 , Service Contract Labor Standards (May 2014) (41 U.S.C. chapter 67).  

 


 

       
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X   (3)   52.222-42 , Statement of Equivalent Rates for Federal Hires (May 2014) (29  
    U.S.C. 206 and 41 U.S.C. chapter 67).  
X   (4)   52.222-43 , Fair Labor Standards Act and Service Contract Labor  
    Standards--Price Adjustment (Multiple Year and Option Contracts) (May  
    2014)(29 U.S.C. 206 and 41 U.S.C. chapter 67).  
  (5)   52.222-44 , Fair Labor Standards Act and Service Contract Labor Standards -  
    Price Adjustment (May 2014) (29 U.S.C. 206 and 41 U.S.C. chapter 67).  
  (6)   52.222-51 , Exemption from Application of the Service Contract Labor Standards  
    to Contracts for Maintenance, Calibration, or Repair of Certain  
    Equipment—Requirements (May 2014) (41 U.S.C. chapter 67).  
  (7)   52.222-53 , Exemption from Application of the Service Contract Labor Standards  
    to Contracts for Certain Services—Requirements (May 2014)(41  
    U.S.C. chapter 67).  
X   (8)   52.222-55 , Minimum Wages Under Executive Order 13658 (Dec 2015).  
  (9)   52.226-6 , Promoting Excess Food Donation to Nonprofit Organizations. (May  
2014) (42 U.S.C. 1792).
  (10)   52.237-11 , Accepting and Dispensing of $1 Coin (Sep 2008) (31 U.S.C.  
    5112(p)(1)).  
 
(d) Comptroller General Examination of Record . The Contractor shall comply with the provisions of this paragraph (d)  
if this contract was awarded using other than sealed bid, is in excess of the simplified acquisition threshold, and does  
not contain the clause at 52.215-2, Audit and Records--Negotiation.  
(1) The Comptroller General of the United States, or an authorized representative of the Comptroller  
General, shall have access to and right to examine any of the Contractor's directly pertinent records  
involving transactions related to this contract.  
(2) The Contractor shall make available at its offices at all reasonable times the records, materials, and other  
evidence for examination, audit, or reproduction, until 3 years after final payment under this contract or for  
any shorter period specified in FAR Subpart 4.7, Contractor Records Retention, of the other clauses of this  
contract. If this contract is completely or partially terminated, the records relating to the work terminated shall  
be made available for 3 years after any resulting final termination settlement. Records relating to appeals  
under the disputes clause or to litigation or the settlement of claims arising under or relating to this contract  
shall be made available until such appeals, litigation, or claims are finally resolved.  
(3) As used in this clause, records include books, documents, accounting procedures and practices, and  
other data, regardless of type and regardless of form. This does not require the Contractor to create or  
maintain any record that the Contractor does not maintain in the ordinary course of business or pursuant to  
a provision of law.    
 
(e)(1) Notwithstanding the requirements of the clauses in paragraphs (a), (b), (c) and (d) of this clause, the Contractor  
is not required to flow down any FAR clause, other than those in paragraphs (e)(1) of this paragraph in a subcontract  
for commercial items. Unless otherwise indicated below, the extent of the flow down shall be as required by the  
clause—      
(i) 52.203-13 , Contractor Code of Business Ethics and Conduct (Oct 2015) (41 U.S.C. 3509).  
(ii) 52.219-8 , Utilization of Small Business Concerns (Oct 2014) (15 U.S.C. 637(d)(2) and (3)), in all  
subcontracts that offer further subcontracting opportunities. If the subcontract (except subcontracts  
to small business concerns) exceeds $700,000 ($1.5 million for construction of any public facility),  
the subcontractor must include 52.219-8 in lower tier subcontracts that offer subcontracting  
opportunities.    
(iii) 52.222-17 , Nondisplacement of Qualified Workers (May 2014) (E.O. 13495). Flow Down  
required in accordance with paragraph (l) of FAR clause 52.222-17.  
(iv) 52.222-21, Prohibition of Segregated Facilities (Apr 2015).  
(v) 52.222-26 , Equal Opportunity (Apr 2015) (E.O. 11246).  
(vi) 52.222-35 , Equal Opportunity for Veterans (Oct 2015) (38 U.S.C. 4212).  
(vii) 52.222-36 , Equal Opportunity for Workers with Disabilities (Jul 2014) (29 U.S.C. 793).  

(viii) 52.222-37 , Employment Reports on Veterans (Feb 2016) (38 U.S.C. 4212).

(ix) 52.222-40 , Notification of Employee Rights Under the National Labor Relations Act (Dec 2010)  
(E.O. 13496). Flow down required in accordance with paragraph (f) of FAR clause 52.222-40.  
(x) 52.222-41 , Service Contract Labor Standards (May 2014),(41 U.S.C. chapter 67).  
(xi)   X (A) 52.222-50 , Combating Trafficking in Persons (Mar 2015) (22 U.S.C. chapter 78 and  
E.O. 13627).    

(B) Alternate I (Mar 2015) of 52.222-50 (22 U.S.C. chapter 78 and E.O. 13627).  

 


 

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(xii) 52.222-51 , Exemption from Application of the Service Contract Labor Standards to Contracts for Maintenance, Calibration, or Repair of Certain Equipment—Requirements (May 2014)(41 U.S.C. 351, chapter 67 . ).

(xiii) 52.222-53 , Exemption from Application of the Service Contract Labor Standards to Contracts for Certain Services—Requirements (May 2014) (41 U.S.C. 351, chapter 67).

(xiv) 52.222-54, Employment Eligibility Verification (Oct 2015) (E. O. 12989).

(xv) 52.222-55, Minimum Wages Under Executive Order 13658 (Dec 2015).

(xvi) 52.225-26 , Contractors Performing Private Security Functions Outside the United States (Jul 2013) (Section 862, as amended, of the National Defense Authorization Act for Fiscal Year 2008; 10 U.S.C. 2302 Note).

(xvii) 52.226-6 , Promoting Excess Food Donation to Nonprofit Organizations (May 2014) (42 U.S.C.

1792). Flow down required in accordance with paragraphs (e) of FAR clause 52.226-6.

(xviii) 52.247-64 , Preference for Privately Owned U.S.-Flag Commercial Vessels (Feb 2006) (46 U.S.C. Appx 1241(b) and 10 U.S.C. 2631). Flow down required in accordance with paragraph (d) of FAR clause 52.247-64.

(2) While not required, the contractor may include in its subcontracts for commercial items a minimal number of additional clauses necessary to satisfy its contractual obligations.

 

 

 

252.225-7001

BUY AMERICAN AND BALANCE OF PAYMENTS PROGRAM--BASIC (NOV 2014)
  (IAW DFARS 225.1101(2))

   
252.225-7012

PREFERENCE FOR CERTAIN DOMESTIC COMMODITIES (FEB 2013)
  (IAW DFARS 225.7002-3(a), DFARS 212.301(f)(xxvii)) 

   
252.225-7021

TRADE AGREEMENTS--BASIC (OCT 2015)
  (IAW DFARS 225.1101(6))

   
252.226-7001

UTILIZATION OF INDIAN ORGANIZATIONS, INDIAN-OWNED ECONOMIC ENTERPRISES, AND NATIVE HAWAIIAN SMALL BUSINESS CONCERNS

 

(SEP 2004)

 

  (IAW DFARS 226.104)

   
252.232-7003

 ELECTRONIC SUBMISSION OF PAYMENT REQUESTS AND RECEIVING REPORTS

 

(JUN 2012)

 

  (IAW DFARS 232.7004)

 (a) Definitions . As used in this clause—

(1) “Contract financing payment” and “invoice payment” have the meanings given in section 32.001 of the Federal Acquisition Regulation.

(2) “Electronic form” means any automated system that transmits information electronically from the initiating system to all affected systems. Facsimile, e-mail, and scanned documents are not acceptable electronic forms for submission of payment requests. However, scanned documents are acceptable when they are part of a submission of a payment request made using Wide Area WorkFlow (WAWF) or another electronic form authorized by the Contracting Officer.

(3) “Payment request” means any request for contract financing payment or invoice payment submitted by the Contractor under this contract.

(b) Except as provided in paragraph (c) of this clause, the Contractor shall submit payment requests and receiving reports using WAWF, in one of the following electronic formats that WAWF accepts: Electronic Data Interchange, Secure File Transfer Protocol, or World Wide Web input. Information regarding WAWF is available on the Internet at https://wawf.eb.mil/ .

(c) The Contractor may submit a payment request and receiving report using other than WAWF only when—

(1) The Contracting Officer authorizes use of another electronic form. With such an authorization, the Contractor and the Contracting Officer shall agree to a plan, which shall include a timeline, specifying when the Contractor will transfer to WAWF;

(2) DoD is unable to receive a payment request or provide acceptance in electronic form;

(3) The Contracting Officer administering the contract for payment has determined, in writing, that electronic submission would be unduly burdensome to the Contractor. In such cases, the Contractor shall include a copy of the Contracting Officer’s determination with each request for payment; or

(4) DoD makes a payment for commercial transportation services provided under a Government rate tender or a contract for transportation services using a DoD-approved electronic third party payment system or


 

       
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other exempted vendor payment/invoicing system ( e.g. , PowerTrack, Transportation Financial Management  

System, and Cargo and Billing System).    
 
(d) The Contractor shall submit any non-electronic payment requests using the method or methods specified in  
Section G of the contract.      
 
(e) In addition to the requirements of this clause, the Contractor shall meet the requirements of the appropriate  
payment clauses in this contract when submitting payment requests.    
 
 
252.232-7009   MANDATORY PAYMENT BY GOVERNMENTWIDE COMMERCIAL PURCHASE CARD  
  (DEC 2006)    
  (IAW DFARS 232.1110)    
 
252.232-7010   LEVIES ON CONTRACT PAYMENTS (DEC 2006)  
  (IAW DFARS 232.7102)    
 
252.237-7010   PROHIBITION ON INTERROGATION OF DETAINEES BY CONTRACTOR  
  PERSONNEL (JUN 2013)    
  (IAW DFARS 237.173-5)    
 
252.243-7002   REQUESTS FOR EQUITABLE ADJUSTMENT   (DEC 2012)  
  (IAW DFARS 243.205-71)    
 
252.244-7000   SUBCONTRACTS FOR COMMERCIAL ITEMS   (JUN 2013)  
  (IAW DFARS 244.403)    
 
252.247-7023   TRANSPORTATION OF SUPPLIES BY SEA--BASIC (APR 2014)  
  (IAW DFARS 247.574(b))    

 


 

       
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ADDENDUM TO CLAUSE 52.212-4

 
 
252.201-7000   CONTRACTING OFFICER'S REPRESENTATIVE (DEC 1991)  
  (IAW DFARS 201.602-70)  
(Applicable to all orders issued hereunder)  
 
 
5352.201-9101   OMBUDSMAN (JUN 2016)  
  (IAW AFFARS 5301.9103)  
(c) If resolution cannot be made by the contracting officer, the interested party may contact the ombudsman, Kim  
McDonald at 478   222 - 1088  

, FAX 478 222 - 1121 , email kimberly.mcdonald@us.af.mil . Concerns,  

issues, disagreements, and recommendations that cannot be resolved at the Center/MAJCOM/DRU/SMC  
ombudsman level, may be brought by the interested party for further consideration to the Air Force ombudsman,  
Associate Deputy Assistant Secretary (ADAS) (Contracting), SAF/AQC, 1060 Air Force Pentagon, Washington DC  
20330-1060, phone number (571) 256-2395, facsimile number (571) 256-2431.  
 
(Applicable to all solicitations and contracts)  
 
 
52.203-3   GRATUITIES (APR 1984)  
  (IAW FAR 3.202)  
 
252.203-7002   REQUIREMENT TO INFORM EMPLOYEES OF WHISTLEBLOWER RIGHTS  
  (SEP 2013)  
  (IAW DFARS 203.970)  
(Applicable to all solicitations and contracts)  
 
(Applicable to solicitations and contracts when FAR 52.203-13 is included)  
 
 
252.203-7997   PROHIBITION ON CONTRACTING WITH ENTITIES THAT REQUIRE CERTAIN  
  INTERNAL CONFIDENTIALITY AGREEMENTS (DEVIATION 2016-O0003)  
  (OCT 2015)  
  (IAW DARS Tracking # 2016-O0003)  
(a) The Contractor shall not require employees or subcontractors seeking to report fraud, waste, or abuse to sign or  
comply with internal confidentiality agreements or statements prohibiting or otherwise restricting such employees or  
contactors from lawfully reporting such waste, fraud, or abuse to a designated investigative or law enforcement  
representative of a Federal department or agency authorized to receive such information.  
 
(b) The Contractor shall notify employees that the prohibitions and restrictions of any internal confidentiality  
agreements covered by this clause are no longer in effect.  
 
(c) The prohibition in paragraph (a) of this clause does not contravene requirements applicable to Standard Form  
312, Form 4414, or any other form issued by a Federal department or agency governing the nondisclosure of  
classified information.    
 
(d) (1) Use of funds appropriated (or otherwise made available) by the Continuing Appropriations Act, 2016 (Pub. L.  
114-53) or any other FY 2016 appropriations act that extends to FY 2016 funds the same prohibitions as contained in  
sections 743 of division E, title VII, of the Consolidated and Further Continuing Appropriations Act, 2015 (Pub. L.  
113-235) may be prohibited, if the Government determines that the Contractor is not in compliance with the  
provisions of this clause.    
(2) The Government may seek any available remedies in the event the Contractor fails to perform in  
accordance with the terms and conditions of the contract as a result of Government action under this clause.  
 
(Applicable to solicitations and contracts, including commercial under FAR part 12, that will use FY 2016  
appropriations)      
 
 
52.204-18   COMMERCIAL AND GOVERNMENT ENTITY CODE MAINTENANCE (JUL 2015)  
  (IAW FAR 4.1804(c), FAR 12.301(d))  
(Applicable when there is a requirement to be registered in SAM or to have a DUNS Number)  

 


 

     
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52.204-19   INCORPORATION BY REFERENCE OF REPRESENTATIONS AND CERTIFICATIONS  
  (DEC 2014)  
  (IAW FAR 4.1202(b))  
(Applicable to all solicitations and contracts)  
 
 
252.204-7002   PAYMENT FOR SUBLINE ITEMS NOT SEPARATELY PRICED (DEC 1991)  
  (IAW DFARS 204.7104-1(b)(3)(iv))  
(Applicable to all not separately priced subline items)  
 
 
252.204-7006   BILLING INSTRUCTIONS (OCT 2005)  
  (IAW DFARS 204.7109)  
(Applicable when any of the instructions at PGI 204.7108(d)(1) through (6) apply or other instructions that require  
contractor identification of the contract line item(s) on the payment request)  
 
 
252.204-7012   SAFEGUARDING COVERED DEFENSE INFORMATION AND CYBER INCIDENT  
  REPORTING (DEC 2015)  
  (IAW DFARS 204.7304(c))  
(Applicable to all solicitations and contracts, including commercial)  
 
 
252.204-7015   NOTICE OF AUTHORIZED DISCLOSURE OF INFORMATION FOR LITIGATION  
  SUPPORT (MAY 2016)  
  (IAW DFARS 204.7403(c), DFARS 212.301(f)(ix))  
(Applicable to solicitations and contracts that involve litigation support services when 252.204-7014 is not included)  
 
 
252.209-7004   SUBCONTRACTING WITH FIRMS THAT ARE OWNED OR CONTROLLED BY THE  
  GOVERNMENT OF A COUNTRY THAT IS A STATE SPONSOR OF TERRORISM  
  (OCT 2015)  
  (IAW DFARS 209.409)  
 
52.211-8   TIME OF DELIVERY (JUN 1997)  
  (IAW FAR 11.404(a)(2))  
DELIVERY FOR EACH ITEM IS ANNOTATED IN THE SCHEDULE (PART I SECTION B) UNDER EACH LINE  
ITEM.    
 
(Applicable when the Government desires delivery by a certain time but requires delivery by a specified later time,  
and the delivery schedule is to be based on the date of the contract)  
 
(Applicable when delivery of one or more “items” as defined at 252.211-7003(c) is required)  
 
 
252.211-7007   REPORTING OF GOVERNMENT-FURNISHED PROPERTY (AUG 2012)  
  (IAW DFARS 211.274-6(b), DFARS 212.301(f)(iv))  
 
52.212-4   CONTRACT TERMS AND CONDITIONS--COMMERCIAL ITEMS (MAY 2015)  
  (IAW FAR 12.301(b)(3))  
(Applicable to all commercial items)  
 
 
52.216-19   ORDER LIMITATIONS (OCT 1995)  
  (IAW FAR 16.506(b))  
 
(c) If this is a requirements contract ( i.e ., includes the Requirements clause at subsection 52.216-21 of the Federal  
Acquisition Regulation (FAR)), the Government is not required to order a part of any one requirement from the  
Contractor if that requirement exceeds the maximum-order limitations in paragraph (b) of this section.  

 


 

     
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  Indefinite Delivery Contract FA8519-16-D-0003  
 
(d) Notwithstanding paragraphs (b) and (c) of this section, the Contractor shall honor any order exceeding the  
maximum order limitations in paragraph (b), unless that order (or orders) is returned to the ordering office within 5  
days after issuance, with written notice stating the Contractor's intent not to ship the item (or items) called for and the  
reasons. Upon receiving this notice, the Government may acquire the supplies or services from another source.  
 
(The above Clause/Provision has been modified.)  
 
(Applicable to all orders issued hereunder)  
 
 
52.216-21   REQUIREMENTS (OCT 1995)  
  (IAW FAR 16.506(d)(1))  
(f) the Contractor shall not be required to make any deliveries under this contract after  
 
 
252.216-7006   ORDERING (MAY 2011)  
  (IAW DFARS 216.506(a))  
(a) Any supplies and services to be furnished under this contract shall be ordered by issuance of delivery orders or  
task orders by the individuals or activities designated in the contract schedule. Such orders may be issued from .  
 
(Applicable to solicitations and contracts when a definite-quantity contract, a requirements contract, or an  
indefinite-quantity contract is contemplated)  
 
 
52.217-9   OPTION TO EXTEND THE TERM OF THE CONTRACT (MAR 2000)  
  (IAW FAR 17.208(g))  
(a) The Government may extend the term of this contract by written notice to the Contractor within the timeframe  
specified in the Schedule ; provided that the Government gives the Contractor a preliminary written notice of its  
intent to extend at least 30 days before the contract expires. The preliminary notice does not commit the Government  
to an extension.    
 
(b) If the Government exercises this option, the extended contract shall be considered to include this option clause.  
 
(c) The total duration of this contract, including the exercise of any options under this clause, shall not exceed 5  
years .    
 
(The above Clause/Provision has been modified.)  
 
(Applicable when the Government gives the contractor a preliminary written notice of its intent to extend the  
contract, or an extension of the contract includes an extension of the option, or a there is a specified limitation on the  
total duration of the contract)  
 
 
52.222-1   NOTICE TO THE GOVERNMENT OF LABOR DISPUTES (FEB 1997)  
  (IAW FAR 22.103-5(a), AFFARS 5322.101-1)  
(IAW FAR 22.101-1(e), Applicable when the head of the contracting activity designates programs or requirements for  
which it is necessary that contractors be required to notify the Government of actual or potential labor disputes that  
are delaying or threaten to delay the timely contract performance (see 22.103-5 (a)).  
 
THE FOLLOWING IS FILL-IN DATA FOR CLAUSE 52.212-5 PARA (c)(2):  
 
52.222-42   STATEMENT OF EQUIVALENT RATES FOR FEDERAL HIRES (MAY 2014)  

 

This Statement is for Information Only:  
It is not a Wage Determination  
 
Employee Class   Monetary Wage   Fringe Benefits  
Administration Clerk   17.31   28.72%  
Electronics Mechanic   26.38   28.72%  
Electronics Mechanic (QA)   27.38   27.38%  
Supply Clerk   17.31   28.72%  

 


 

       
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52.223-11   OZONE-DEPLETING SUBSTANCES AND HIGH GLOBAL WARMING POTENTIAL  
  HYDROFLUOROCARBONS (JUN 2016)    
  (IAW FAR 23.804(a))    
(b) The Contractor shall label products which contain or are manufactured with ozone-depleting substances in the  
manner and to the extent required by 42 U.S.C. 7671j(b), (c), (d), and (e) and 40 CFR Part 82, Subpart E, as follows:  
 
WARNING
 
Contains (or manufactured with, if applicable)   *, a substance(s) which harm(s)  
public health and environment by destroying ozone in the upper atmosphere.  
 
*   The Contractor shall insert the name of the substance(s).  
 
(Applicable to all orders issued hereunder)    
 
(Applicable to solicitations and contracts not delivered or performed outside the U.S. or it’s outlying areas, for  
products that may contain high global warming potential hydrofluorocarbons or involve maintenance or repair of  
electronic or mechanical devices)    
 
(Applicable to solicitations and contracts not outside the U.S. or its outlying areas, for hydrofluorocarbon containing  
foam or construction)      
 
(Applicable to solicitations and contracts for supplies, maintenance and repair services, or construction)  
 
 
5352.223-9000   ELIMINATION OF USE OF CLASS I OZONE DEPLETING SUBSTANCES (ODSs)  
  (NOV 2012)    
  (IAW AFFARS 5323.804-90)    
(Applicable to all orders issued hereunder)    
 
 
252.225-7002   QUALIFYING COUNTRY SOURCES AS SUBCONTRACTORS (DEC 2012)  
  (IAW DFARS 225.1101(3))    
(Applicable if one of the following clauses are included: DFARS 252.225-7001, 252.225-7021 or 252.225-7036)  
 
 
252.225-7048   EXPORT-CONTROLLED ITEMS (JUN 2013)  
  (IAW DFARS 225.7901-4)    
(Applicable to all solicitations and contracts)    
 
 
52.229-4   FEDERAL, STATE, AND LOCAL TAXES (STATE AND LOCAL ADJUSTMENTS)  
  (FEB 2013)    
  (IAW FAR 29.401-3(b))    
(Applicable when the simplified acquisition threshold is exceeded and fixed-price noncompetitive, and performed  
wholly or partly within the United States, its possessions or territories, Puerto Rico or the Northern Mariana Islands)  
 
 
52.232-39   UNENFORCEABILITY OF UNAUTHORIZED OBLIGATIONS (JUN 2013)  
  (IAW FAR 32.706-3)    
(Applicable to all solicitations and contracts)    
 
 
52.232-40   PROVIDING ACCELERATED PAYMENTS TO SMALL BUSINESS  
  SUBCONTRACTORS (DEC 2013)    
  (IAW FAR 32.009-2)    
(Applicable to all solicitations and contracts)    

 


 

     
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  Indefinite Delivery Contract FA8519-16-D-0003  
 
 
252.232-7006   WIDE AREA WORKFLOW PAYMENT INSTRUCTIONS (MAY 2013)  
  (IAW DFARS 232.7004(b), PGI 232.7004(b)(1), DFARS 212.301(f)(liii))  
(a) Definitions. As used in this clause—  
“Department of Defense Activity Address Code (DoDAAC)” is a six position code that uniquely identifies a unit,  
activity, or organization.  
“Document type” means the type of payment request or receiving report available for creation in Wide Area WorkFlow  
(WAWF).    
“Local processing office (LPO)” is the office responsible for payment certification when payment certification is done  
external to the entitlement system.  
 
(b) Electronic invoicing . The WAWF system is the method to electronically process vendor payment requests and  
receiving reports, as authorized by DFARS 252.232-7003, Electronic Submission of Payment Requests and  
Receiving Reports.    
 
(c) WAWF access . To access WAWF, the Contractor shall—  
(1) Have a designated electronic business point of contact in the System for Award Management at  
https://www.acquisition.gov ; and  
(2) Be registered to use WAWF at https://wawf.eb.mil/ following the step-by-step procedures for  
self-registration available at this web site.  
 
(d) WAWF training . The Contractor should follow the training instructions of the WAWF Web-Based Training Course  
and use the Practice Training Site before submitting payment requests through WAWF. Both can be accessed by  
selecting the “Web Based Training” link on the WAWF home page at https://wawf.eb.mil/ .  
 
(e) WAWF methods of document submission . Document submissions may be via web entry, Electronic Data  
Interchange, or File Transfer Protocol.  
 
(f) WAWF payment instructions . The Contractor must use the following information when submitting payment  
requests and receiving reports in WAWF for this contract/order:  
(1) Document type . The Contractor shall use the following document type(s).  
 

Combo  

(Contracting Officer: Insert applicable document type(s).  
Note: If a “Combo” document type is identified but not supportable by the Contractor’s business systems, an  
“Invoice” (stand-alone) and “Receiving Report” (stand-alone) document type may be used instead.)  
(2) Inspection/acceptance location . The Contractor shall select the following inspection/acceptance  
location(s) in WAWF, as specified by the contracting officer.  
 
(Contracting Officer: Insert inspection and acceptance locations or “Not applicable.”)  
(3) Document routing . The Contractor shall use the information in the Routing Data Table below only to fill  
in applicable fields in WAWF when creating payment requests and receiving reports in the system.  

 

Routing Data Table*  
Field Name in WAWF   Data to be entered in WAWF  
Pay Official DoDAAC   HQ0337  
Issue By DoDAAC   FA8519  
Admin DoDAAC   S0701A  
Inspect By DoDAAC    
Ship To Code   To Be Cited on each Order  
Ship From Code    
Mark For Code    
Service Approver (DoDAAC)    
Service Acceptor (DoDAAC)    
Accept at Other DoDAAC    
LPO DoDAAC    
DCAA Auditor DoDAAC    
Other DoDAAC(s)    
(*Contracting Officer: Insert applicable DoDAAC information or “See schedule” if multiple ship to/acceptance  
locations apply, or “Not applicable.”)    
(4) Payment request and supporting documentation. The Contractor shall ensure a payment request  
includes appropriate contract line item and subline item descriptions of the work performed or supplies  

 


 

   
Page 78 of 80  
Indefinite Delivery Contract FA8519-16-D-0003  
 
delivered, unit price/cost per unit, fee (if applicable), and all relevant back-up documentation, as defined in  
DFARS Appendix F, ( e.g . timesheets) in support of each payment request.  
(5) WAWF email notifications . The Contractor shall enter the e-mail address identified below in the “Send  
Additional Email Notifications” field of WAWF once a document is submitted in the system.  
Donna.pallini@us.af.mil  
Barbara.bostic.1@us.af.mil  
(Contracting Officer: Insert applicable email addresses or “Not applicable.”)  
 
(g) WAWF point of contact.  
(1) The Contractor may obtain clarification regarding invoicing in WAWF from the following contracting  
activity’s WAWF point of contact.  
N/A  
(Contracting Officer: Insert applicable information or “Not applicable.”)  
(2) For technical WAWF help, contact the WAWF helpdesk at 866-618-5988.  
 
(The above Clause/Provision has been modified.)  
 
(Applicable when 252.232-7003 is used and neither 232.7003(b) nor (c) apply)  
 
(Applicable at or below the micro-purchase threshold and Governmentwide commercial purchase card is required)  
 
(Applicable to all solicitations and contracts over the micro-purchase threshold issued hereunder)  
 
 
 
PAYMENT INSTRUCTIONS:  
252.204 0001 Line Item Specific: Single Funding. (SEP 2009).  If there is only one source of funding for   
the contract line item (i.e., one ACRN), The payment office will make payment using the ACRN funding of   
the line item being billed.   
   
   

 

             
             
             
             
  ACCOUNTING AND APPROPRIATION DATA     (AUG 1998)           
             
             
Accounting and Appropriation

ACR   Chargeable     Amount      
 
TB   TO BE CITED ON EACH ORDER       $0.00    
 
 
 
 
  ACRN TOTAL   $ 0.00          
             
(Applicable to solicitations and contracts for the provision of services)          
 
 
52.243-1   CHANGES--FIXED-PRICE (AUG 1987)          
  (IAW FAR 43.205(a)(1))          
 
52.243-1   CHANGES--FIXED-PRICE -- ALTERNATE II (APR 1984)          
  (IAW FAR 43.205(a)(3))          

 


 

         
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(Applicable to solicitations and contracts for supplies or services other than commercial items that contain any of the  
clauses listed in the clause at 252.244-7000)      
 
 
 
52.245-1   GOVERNMENT PROPERTY (APR 2012)      
 

 (IAW FAR 45.107(a), DFARS 237.7003(c), DFARS 245.107)

 
 
52.245-9   USE AND CHARGES (APR 2012)      
  (IAW FAR 45.107(c))      
 
252.245-7001   TAGGING, LABELING, AND MARKING OF GOVERNMENT-FURNISHED PROPERTY  
  (APR 2012)      
  (IAW DFARS 245.107(2))      
 
252.245-7002   REPORTING LOSS OF GOVERNMENT PROPERTY (APR 2012)  
  (IAW DFARS 245.107(3))      
 
252.245-7003   CONTRACTOR PROPERTY MANAGEMENT SYSTEM ADMINISTRATION (APR 2012)  
  (IAW DFARS 245.107(4))      
 
252.245-7004   REPORTING, REUTILIZATION, AND DISPOSAL   (MAR 2015)  
  (IAW DFARS 245.107(5))      
 
52.246-1   CONTRACTOR INSPECTION REQUIREMENTS   (APR 1984)  
  (IAW FAR 46.301)      
 
52.246-2   INSPECTION OF SUPPLIES--FIXED-PRICE   (AUG 1996)  
  (IAW FAR 46.302)      
 
52.246-4   INSPECTION OF SERVICES--FIXED-PRICE   (AUG 1996)  
  (IAW FAR 46.304)      
(Applicable for fixed-price services, or supplies furnishing services over the simplified acquisition threshold)  
 
 
52.246-16   RESPONSIBILITY FOR SUPPLIES (APR 1984)    
  (IAW FAR 46.316)      
(Applicable to the furnishing of supplies, services involving the furnishing of supplies, or research and development,  
when a fixed-price contract is contemplated and the contract amount is expected to exceed the simplified acquisition  
threshold)        
 
 
252.246-7000   MATERIAL INSPECTION AND RECEIVING REPORT (MAR 2008)  
  (IAW DFARS 246.370)      
(Applicable for deliverable supplies or hardware)      
 
 
  INSPECTION AND ACCEPTANCE (SEP 1999)    
  (IAW FAR 46.401(b), FAR 46.503)      
(Applicable to all orders issued hereunder)      

 

Government Contract Quality Assurance Inspection and Acceptance will be at (Final):

Item No(s): See schedule for items with the following code(s) listed below :
Inspection Code and Address:

 

Government Contract Quality Assurance Inspection and Acceptance will be at destination(s) specified herein (Final).

Item No(s): 0018, 1018, 2018, 3018, 4018

 

 

 


 

         
      Page 80 of 80  
    Indefinite Delivery Contract FA8519-16-D-0003  
 
 
LIST OF DOCUMENTS, EXHIBITS OR ATTACHMENTS
 
Form Number   Description/File Name   Date   Number of Pages  
DD1423   Contract Data Requirements   13MAY2015   8  
 
  Performance Based Work Statement   06OCT2015   17  
 
AFMC158   Packaging Requirements   28OCT2015   2  
 
SGFP   SFFP_completed.pdf   15JUN2016   1  
  Schedule Government Furnished Property    
  WageDetermination_AlbanyCounty.pdf   23JUN2016   10  
  DOL Wage Determination      

 

 

Exhibit 31.1

 

CERTIFICATION

 

I, Kevin G. Lynch, certify that:

 

1.

I have reviewed this Quarterly Report on Form 10-Q of Mechanical Technology, Incorporated;

   

 

2.

Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

   

 

3.

Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

   

 

4.

The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15(d)-15(e))  and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15(d)-15(f)) for the registrant and have:

   

 

  a)

Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

   

 

  b)

Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

   

 

  c)

Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

   

 

  d)

Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

   

 

5.

The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

   

 

  (a)

All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

   

 

  (b)

Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

 

August 4, 2016

 

 

/S/ KEVIN G. LYNCH

 

 

 

Kevin G. Lynch

 

 

 

Chief Executive Officer

(Principal Executive Officer)

 


 

 

Exhibit 31.2

 

CERTIFICATION

 

I, Frederick W. Jones, certify that:

 

1.

I have reviewed this Quarterly Report on Form 10-Q of Mechanical Technology, Incorporated;

   

 

2.

Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

   

 

3.

Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

   

 

4.

The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15(d)-15(e))  and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15(d)-15(f)) for the registrant and have:

   

 

  a)

Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

   

 

  b)

Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

   

 

  c)

Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

   

 

  d)

Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

   

 

5.

The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

   

 

  (a)

All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

   

 

  (b)

Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.


August 4, 2016

 

 

/S/ FREDERICK W. JONES

 

 

 

Frederick W. Jones

 

 

 

Chief Financial Officer

(Principal Financial Officer)

 


 

 

Exhibit 32.1

 

 

Mechanical Technology, Incorporated

Certification Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

(18 U.S.C. Section 1350)

 

 

In connection with the Quarterly Report on Form 10-Q of Mechanical Technology, Incorporated (the “Company”) for the three month period ended June 30, 2016, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Kevin G. Lynch, Chief Executive Officer of the Company, certify, pursuant to the requirements of Section 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. Sections 1350(a) and (b)), that, to my knowledge:

 

(1)

The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, and

 

 

(2)

The information in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

 

 

 

 

 

 

 

 

 


August 4
, 2016

 

 


/S/ KEVIN G. LYNCH

 

 

 

Kevin G. Lynch

 

 

 

Chief Executive Officer

(Principal Executive Officer)

 

 

This certification is made solely for the purpose of 18 U.S.C. Section 1350, and is not being filed as part of the Form 10-Q or as a separate disclosure document, and may not be disclosed, distributed or used by any person for any reason other than as specifically required by law.

 

 

Exhibit 32.2

 

 

Mechanical Technology, Incorporated

Certification Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

(18 U.S.C. Section 1350)

 

 

In connection with the Quarterly Report on Form 10-Q of Mechanical Technology, Incorporated (the “Company”) for the three month period ended June 30, 2016, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Frederick W. Jones, Chief Financial Officer of the Company, certify, pursuant to the requirements of Section 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. Sections 1350(a) and (b)), that, to my knowledge:

 

(1)

The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, and

 

 

(2)

The information in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

 

 

 

 

 

 

 

 

 


August 4,
2016

 

 


/S/ FREDERICK W. JONES

 

 

 

Frederick W. Jones

 

 

 

Chief Financial Officer

(Principal Financial Officer)

 

 

This certification is made solely for the purpose of 18 U.S.C. Section 1350, and is not being filed as part of the Form 10-Q or as a separate disclosure document, and may not be disclosed, distributed or used by any person for any reason other than as specifically required by law.