Integrated Defense Systems - The Purchasing System - St. Louis, MO
Special Purchase Order Condition (SPOC)

S/SDB BREAKOUT PROCEDURE SPOCS

SPOC: 7601

REVISION DATE: 01-24-96
Seller has agreed to assist MDA in achieving its goals for subcontracting with Small Businesses (SB's) and Small Disadvantaged Businesses (SDB's). Seller will identify work under this contract that can be performed by SB's or SDB's and allow MDA to contract for that work directly with SB's and SDB's. The intent of this breakout process is to increase the total amount of work being performed by SB's and SDB's. Only work that is not currently performed by an SB or SDB is eligible for breakout (unless such work is currently performed by an SB or SDB under a subcontract with MDA pursuant to a previous breakout.) Nothing in the breakout process excuses Seller from meeting its own SB and SDB subcontracting goals. The intent of this breakout process is to minimize the price impact, if any, for the goods and services purchased from Seller under this contract as compared to traditional nonbreakout pricing. Accordingly,the price of this contract will be reduced by the dollar amount of subcontract awards directly to SB's or SDB's for goods or services that Seller would have to perform itself or subcontract in order to perform this contract.

SPOC: 7603

REVISION DATE: 01-24-96
Seller will identify work that is eligible for breakout in the dollar amounts indicated below. The Small Business (SB) amounts include the Small Disadvantaged Business (SDB) amounts. If MDA issues a follow-on fiscal year production contract, Seller will use its best efforts to identify work eligible for breakout and award (a) to SB's in an amount no less than 20% of the follow-on contract price; and (b) to SDB's in an amount no less than 5% of the follow-on contract price. If MDA issues a change order that causes Seller's work under this contract (or a follow-on contract) to increase, Seller will use its best efforts to identify work eligible for breakout and award (a) to SB's in an amount no less than 20% of the increase in the price of the contract; and (b) to SDB's in an amount no less than 5% of the increase in price of the contract. SB $ SDB $

SPOC: 7605

REVISION DATE: 01-24-96
If MDA elects to breakout work for award to SB's or SDB's, MDA and Seller will concur on the work to be broken out. The fixed price of this contract (or a follow-on production contract) will be reduced by the dollar amount of the subcontract that MDA breaks out and awards directly to the SB's or SDB's. After agreement on the work to be broken out, Seller will provide MDA with sufficient documentation to allow MDA to award subcontracts to the SB's or SDB's, including description of the goods and services to be broken out, the prices for such goods and services recommended by Seller, the delivery or performance schedule required by Seller, the source recommended by Seller, and the Seller's terms and conditions for such contract. Seller's documentation will include all documents and certificates that federal acquisition regulations and law require a contractor to create or obtain in connection with a sucontract award, and all other documents that MDA informs Seller that MDA reasonably believes are necessary to retain the Government approval of MDA's purchasing system. Seller's terms and conditions will include all applicable FAR and DFARS clauses required by federal procurement law. Except as otherwise specifically provided in this contract, Seller will assume the primary responsibility for managing MDA's breakout subcontracts with SB's or SDB's as if such subcontractswere awarded by Seller. Notwithstanding any breakout, Seller will continue to be responsible for performing this contract in accordance with its terms, even if the SB's or SDB's fail to perform all or part of their subcontracts with MDA. Seller will assume responsibility for ensuring that all goods purchased from and services performed by the SB's and SDB's are consistent with all applicable requirements of this contract, including all delivery and quality requirements. MDA's responsibilites will be limited to awarding the contracts, issuing change orders, administering terminations or cancellations and processing payments. In order to allow MDA to timely process payments to the SB's or SDB's, Seller wil promptly provide MDA with copies of Seller's receiving or other documents evidencing that Sellerhas received the goods or that the SB's or SDB's have performed the services. Although MDA will issue formal change orders to the SB's and SDB's when (and only when) requested by Seller , Seller will reimburse MDA for compensating the SB's and SDB's for all changes, whether formal or constructive. However, the purchase price of this contract will be equitably adjusted pursuant to the changes clauses if a change that MDA directs in this contract requires Seller to request a change in an SB or SDB subcontractor.

SPOC: 7607

REVISION DATE: 01-24-96
MDA has placed a purchase order with a SB/SDB supplier for some parts/services which are utilized in your end item product. You are responsible for ensuring that delivery of these parts/services to your facility are performed in accordance with your need for the item and in accordance with the specifications of the end item. The SB/SDB Purchase Order information is as follows: SB/SDB Supplier Name: MDA SB/SDB P.O. Number: Line Items applicable to this contract:

SPOC: 7609

REVISION DATE: 01-24-96
This contract is awarded to Seller under a breakout process designed to assist MDA in acheiving its goals for subcontracting with Small Business and Small Disadvantaged Businesses (SB's and SDB's). MDA's Large Business subcontractor identified below has identiifed the work ordered hereunder for award to Seller by MDA. Seller will deliver the goods to and perform the services for the Large Business as provided for in this contract. Except for awarding this contract, issuing change orders, administering terminations and cancellations and processing payments, all responsibility for managingthis contract has been delegated to the Large Business. Seller will follow all lawful directions given by the Large Business concerning Seller's performance hereunder. However, Seller will not be entitled to any additional compensation for its performance as a result of directions given by the Large Business unless MDA has provided Seller with a formal change order specifically referencing the Changes clause of this contract. If Seller believes any direction given by the Large Business would entitle Seller to additional compensation, Seller must notify both MDA and the Large Business within five (5) business days of Seller's receipt of such direction. Large Business: Large Business PO No(s):