Purchase Contract - The Boeing Co. and Orbital Sciences Corp.
[BOEING LOGO] PURCHASE CONTRACT ACCEPTANCE REQUIRED: [X]
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THE BOEING COMPANY
P.O. BOX 240002
HUNTSVILLE, AL 35824-8402 SPECIAL CONTRACT INSTRUCTIONS ARE ATTACHED HERETO:
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ORBITAL SCIENCES CORP 675784 PURCHASE CONTRACT NO.: PCC STATUS PAGE
101018 2 AP 1 OF 2
3380 S PRICE RD ----------------------------------------------------------------------------
CHANDLER , AZ 85248-3534 ---------------------------
RELEASE 17-APR-02
DATE:
ATTENTION: Camille Cisek --------------------------- ---------------------------------------------
ORIGINAL 27-MAR-02 [ ] Subject to Tax
PC DATE:
--------------------------- [X] For Resale, Not Subject to Tax
CONFIRM 12/19/01 (Cert No. RA 103)
DATE:
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SHIP VIA: Not applicable FOB: Not Applicable TERMS: 0% 0 NET 30
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SHIP TO: The Boeing Company 799A James Record Road Huntsville , AL 35824
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ADDRESS ALL INQUIRIES TO BUYER:
BUYER NAME: Connie Kama MAIL STOP: GB-81 PHONE: 714-762-0352 FAX:
EMAIL: connie.kama@boeing.com
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PURCHASE ORDER COMMENTS:
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THE FOLLOWING LISTED ATTACHMENTS DEFINE THE TERMS AND CONDITIONS APPLICABLE TO THIS PURCHASE CONTRACT. ATTACHMENTS PRECEDED BY THE
WORD "WEB" ARE AVAILABLE ON THE INTERNET AT HTTP://WWW.BOEING.COM/COMPANYOFFICES/DOINGBIZ/TSCS. ADDITIONAL APPLICABLE TERMS AND
CONDITIONS IDENTIFIED IN THE LIST ARE ATTACHED HERETO. TERMS AND CONDITIONS APPLICABLE TO SPECIFIC LINE ITEMS ARE IDENTIFIED WITH
THE LINE ITEM. IF YOU ARE UNABLE TO ACCESS THE INTERNET, PLEASE CONTACT THE BUYER IDENTIFIED ABOVE.
ATTACHMENTS
CHANGE PC CHANGES Rev 03
CLAUSES A229 Rev 01/01
DPAS DPAS ORDER Rev 00
HEADER DD FORM 254 Rev 00
FREEFORM 101018 RAPID SOW Rev 000
SHIP VIA: HSV. SHIPPING INSTRUCTIONS Rev 03/01
ZZZZ END Rev 00
TOTAL PC VALUE $333,954,177.00 NTE
CURRENT FUNDED VALUE $61,371,294.00
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GOVERNMENT PRIORITY RATINGS IDENTIFIED AT THE LINE ITEM LEVEL
INDICATE THAT REQUIREMENTS WITHIN THIS ORDER ARE CERTIFIED FOR
NATIONAL DEFENSE USE UNDER DMS REGULATION 1, AND YOU ARE HEREBY
REQUESTED TO SIGN AND RETURN ACKNOWLEDGEMENT WITHIN TEN WORKING ACCEPTANCE OF THE OFFER REPRESENTED BY THIS ORDER IS EXPRESSLY
DAYS FOR DO RATED REQUIREMENTS AND WITHIN FIVE WORKING DAYS FOR LIMITED TO THE PROVISIONS HERETO. SIGNING AND RETURNING THE
DX RATED REQUIREMENTS. ACKNOWLEDGMENT COPY OF THE ORDER (IF ATTACHED HERETO), OR, IN ANY
EVENT, DELIVERY IN THE WHOLE OR IN PART OF THE ARTICLES TO BE
---------------------------------------------------------------- FURNISHED HEREUNDER SHALL CONSTITUTE ACCEPTANCE OF THIS ORDER.
THIS IS THE ENTIRE CONTRACT AND NO CHANGES OF ANY KIND WHATSOEVER
ARE BINDING ON THE BUYER UNLESS THEY ARE ACCEPTED BY THE BUYER IN
--ACCEPTANCE OF THIS PURCHASE ORDER IS HEREBY ACKNOWLEDGED-- WRITING.
SELLER___________________________________ DATE___________
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/\ REFERS TO INFORMATION OMITTED BY MEANS OF REDACTING A PORTION OF THE TEXT.
THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECRETARY OF THE COMMISSION
PURSUANT TO OUR APPLICATION REQUESTING CONFIDENTIAL TREATMENT UNDER RULE 24b-2
UNDER THE SECURITIES EXCHANGE ACT OF 1934.
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[BOEING LOGO] PURCHASE CONTRACT CONTINUATION PURCHASE CONTRACT: 101018 REVISION 2 PAGE 2 OF 2
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ITEM QUANTITY UM PART NUMBER PROJECT CCN
VENDOR P/N DESCRIPTION
CONTRACT NUMBER PRIORITY RATING FUNDED UNIT PRICE FUNDED EXTENDED PRICE
TRUE MANUFACTURER
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0001 1 LT VHA**10**093
RAPID BV LAUNCH ORBITAL SCIENCES
HQ0006-01-C-0001 DX-68 $11,231,432.00 $11,231,432.00
SOW: Rapid BV Lau SOW REV: 12/17/20
ITEM REFERENCE: Estimated Price to be negotiated
ITEM UNIT VALUE: $11,231,432.00 VALUE CODE: B
PERIOD OF PERFORMANCE: 12/18/01 through 3/31/07
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QUANTITY ORDERED DELIVERY DATE
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1 30-APR-02
0002 1 LT VHA**10**093
ABV DESIGN ORBITAL SCIENCES
HQ0006-01-C-0001 DX-C9 $43,205,486.00 $43,205,486.00
SOW: ABV Design a SOW REV: 12/17/01
ITEM REFERENCE: Definitized Price Included in Line Item 2
ITEM UNIT VALUE: $315,252,803.00 VALUECODE: f
PERIOD OF PERFORMANCE: 12/18/01 through 3/31/07
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QUANTITY ORDERED DELIVERY DATE
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1 30-APR-02
0003 1 LT VHA**10**093
TEST BED
HQ0006-01-C-0001 DX-C9 $6,934,376.00 $6,934,376.00
ITEM REFERENCE: To be negotiated
ITEM UNIT VALUE: $7,469,942.00 VALUE CODE: d
PERIOD OF PERFORMANCE: 2/8/02 through 3/31/07
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QUANTITY ORDERED DELIVERY DATE
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1 30-APR-02
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AUTHORITY PRIORITY CCN VHA10093 ACCOUNT SUBCONTRACT NUMBER
APPROVED RFPA 3/20/02 DX-C9 101018
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PRIME CONTRACT QA COORDINATION NEG/ADM NO. OF PAGES PAGE NO.
HQ0006-01-C-0001 C. M. KAMA 8 1
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TO: Orbital Sciences Corporation THE BOEING COMPANY
3380 S. Price Road 3370 MIRALOMA AVENUE
Chandler, AZ 85248-3534 ANAHEIM, CA. 92803
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SHIP TO: A - MSFC, Huntsville, AL
B - KSC, Florida
C C - Other
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VIA: 1 - MDA-HSV Truck 4 - Parcel Post F.O.B. SECURITY
2 - Supplier Choice 5 - Other CLASSIFICATION:
5 3 - United Parcel 6 - GBL UNCLASSIFIED
------ DESTINATION
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TERMS: NET 30 NET PRICE
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SCHEDULE
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The Letter Subcontract 101018, dated 12/18/01, and all change notices were issued in contemplation $315,252,803.00
of the execution of this subcontract. All of the change notices issued under Letter Subcontract are
superseded in their entirety by this subcontract. Any and all acts of performance of the noted
Letter Subcontract as amended shall be deemed made, done, or performed under the applicable
provisions of this definitive subcontract.
The price of Line Item 2 valued at $315,252,803 is the definitive Net Price of this Subcontract and
does not include undefinitized Line Item 1 (Taurus Lite) and Line Item 3 (Test Bed) of the
Subcontract. Upon negotiation and agreement on price of said items, the price of this order will be
adjusted accordingly.
Exhibits A, B, C, D, E, and F are attached hereto and incorporated herein.
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PER YOUR: A - Verbal C - Written
B - Telegraphic
C
------- THIS ORDER SUBJECT TO THE TERMS AND CONDITIONS
Quotation Dated 14 November 2001 SET FORTH HEREIN.
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Quotation No. TM-16127
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IN WITNESS WHEREOF, THE PARTIES HERETO HAVE CAUSED THESE PRESENTS TO
BE EXECUTED ON THE DATES MENTIONED BELOW.
ORBITAL SCIENCES CORPORATION THE BOEING COMPANY
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Subcontractor
By /s/ By /s/
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Typed Name James Utter Typed Name C. M. Kama
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(Authorized Agent)
Title Senior V.P. Finance and Business Operations
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Date 4/2/02 Date 3/29/02
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ITEM CONTINUATION SHEET SUBCONTRACT NO. PAGE NO.
NO.
101018 2
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SCHEDULE (CONTINUED)
TABLE OF CONTENTS
EXHIBITS
I. STATEMENT OF WORK
II. PERIOD OF PERFORMANCE
III. COMPLETION DATES
IV. TERMS AND CONDITIONS/FORMS
V. CONTRACT LINE ITEMS
VI. TARGET COST, AWARD FEE, AND AWARD FEE PLAN - LINE ITEM 02
VII. FUNDING LIMITATION AND FUNDING LIMITATION REVISIONS
VIII. GOVERNMENT PROPERTY
IX. PRINCIPAL PLACE OF PERFORMANCE
X. APPLICABLE LAW
XI. INVOICE PAYMENT INSTRUCTIONS
XII. PRIORITY
XIII. SECURITY REQUIREMENTS
XIV. RELATIONSHIP WITH SUBCONTRACTOR
XV. ALABAMA TAX EXEMPTION
XVI. ORDER OF PRECEDENCE
XVII. SUBCONTRACTOR RESPONSIBILITY
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ITEM CONTINUATION SHEET SUBCONTRACT NO. PAGE NO.
NO.
101018 3
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EXHIBITS
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Exhibit Title
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A. Subcontract Terms and Conditions
B. Dual Booster Vehicle Statement of Work D743-16366-1, dated 9-26-01
with Procurement Data Requirements List (PDRL), D743-16367-1,
dated 8-17-01.
C. Boost Vehicle Prime Item Development Specification (PIDS)
S743-16353-1, dated 9-12-01 with Boost Vehicle to Payload
Interface Requirements Specifications (IRS) S743-16355-1, dated
8-17-01.
D. DD Form 254, Contract Security Classification Specification for
Subcontract Number 101018, Original Dated 12-17-01.
E. Award Fee Plan, dated 3-29-02.
F. GFP Listing. Dated 8-6-02.
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ITEM CONTINUATION SHEET SUBCONTRACT NO. PAGE NO.
NO.
101018 4
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I. STATEMENT OF WORK
The Orbital Sciences Corporation (hereinafter referred to as
"Subcontractor", "Supplier", "Seller", or OSC) shall provide to The
Boeing Company, (hereinafter referred to as "Boeing," or "Buyer") on a
Cost Plus Award Fee Basis, all labor, services, materials, and equipment
(except for GFE/GFP authorized herein) necessary to perform and complete
the efforts as set forth in Exhibit "B" National Missile Defense
Alternate Boost Vehicle Statement of Work D743-16366-1, dated September
26, 2001, which is attached hereto and made a part hereof.
II. PERIOD OF PERFORMANCE
The period of performance of this subcontract is 18 December 2001
through 31 March 2007.
III. COMPLETION DATES
Seller shall accomplish the requirements specified herein so as to meet
the following completion dates:
DBV (Baseline): /\ Event Date
/\ /\
/\ /\
/\ /\
/\ /\
/\ /\
/\ /\
/\ /\
/\ /\
IV. TERMS AND CONDITIONS/FORMS
Terms and Conditions applicable to this subcontract are attached hereto
as Exhibit "A" entitled "Terms and Conditions" and made a part hereof.
V. CONTRACT LINE ITEMS
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Line Item Description NTE Price
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01: Taurus Lite $ To Be Negotiated (Undefinitized)
02: DBV - Baseline, includes the following elements: $315,252,803 (Definitized)
0101 Development $264,368,370
*0103 Additional Boosters $ 41,018,180
*0104 Special Studies $ 9,866,253
03: Test Bed $To Be Negotiated (Undefinitized)
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Total NTE Price: $315,252,803 (Definitized Value)
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Note: *Line Item 02: Subcontractor is authorized to perform work only
under 0101 Development in accordance with the Scope of Work.
Subcontractor will not perform effort under 0103 Additional Boosters and
0109 Special Studies until authorized in writing by buyer.
Line items 01 and 03, above are undefinitized and are subject to
negotiation. Upon negotiation and agreement on price of said items, the
price of this order will be adjusted accordingly.
As an inducement to and as additional consideration for the issuance of
this contract, Subcontractor hereby grants to Buyer the following option
exercisable at the sole election of Buyer by issuing written notice
thereof to Subcontractor on or before the option exercise date contained
herein, to purchase under the same terms and conditions of this
subcontract, as may be amended from time to tune, additional effort at a
price to be negotiated by not to exceed the price below.
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ITEM DESCRIPTION OPTION EXERCISE DATE NTE PRICE (TO BE NEGOTIATED)
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0201 No later than 03/15/2003 $116,731,405
0203 No later than 12/15/2003 $396,233,354
0301 No later than 10/1/2005 $18,885,247
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ITEM CONTINUATION SHEET SUBCONTRACT NO. PAGE NO.
NO.
101018 5
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It is mutually agreed and understood that the additional effort procured
by buyer under the provisions of this option clause shall be performed
in strict compliance with all of the requirements of this contract as
such may be amended from time to time and made applicable hereto.
It is contemplated that Buyer may make changes in accordance with the
Changes article hereof at any time in the services ordered or to be
ordered hereunder. In the event that any changes are made, the prices
provided for herein shall, with respect to the effort changed, be
subject to equitable adjustment in accordance with the Changes article.
Exercise of any option hereunder will be by change notice hereto or by
separate contract.
It is further mutually agreed and understood that Buyer is under no
obligation whatsoever to exercise the above option and that no
representations have been made by committing to the exercise of any
option hereunder, and that Buyer may procure any additional requirements
elsewhere.
Buyer and Subcontractor agree that Buyer's option exercise dates (s) are
contingent upon exercise by Buyer's customer of options in its contract
with the Buyer. Delay in the customer's exercise of any option will, in
turn, delay the exercise of the related option in this order on a
day-for-day basis, until such time as the Buyer's contract option is
exercised.
VI. TARGET COST, AWARD FEE, AND AWARD FEE PLAN - LINE ITEM 2: DBV (Baseline)
Subject to the Form GP-4 Provision entitled "Allowable Cost and Payment
-- FAR 52.216-7", the Subcontractor shall be compensated for performance
of Line Item 02, DVB (Baseline) as follows:
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Target Cost $273,425,496
Target Cost-of-Money $813,483
Award Fee @ 15% $41,013,824
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$315,252,803
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As established in the enclosed Award Fee Plan, dated 3-29-02 (Exhibit
E), the award amount and the award fee determination methodology are
unilateral decisions made solely at the discretion of Boeing.
VII. FUNDING
A. Of the total estimated price of this subcontract of $333,954,177
the following maximum amounts are available for payment and
allotted to this subcontract.
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Line Item 01 Taurus Lite: $11,231,432
Line Item 02 DBV Program (Baseline): $23,298,626
Line Item 03 Test Bed: $ 6,837,904
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Total Funding Limitation: $41,367,962
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B. The total estimated price set forth in Paragraph A for the DBV
Program above will cover the work to be performed through the
period ending 31 March 2007.
C. Notwithstanding any other provision of this subcontract, all
payments to the Subcontractor shall be subject to the funding
limitation as set forth in Paragraph A. above, and in accordance
with Exhibit A, Form GP-4 Clause 11 entitled "Limitation of
Funds".
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ITEM CONTINUATION SHEET SUBCONTRACT NO. PAGE NO.
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101018 6
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D. Upon issuance by Boeing to the Subcontractor of a subcontract
change notice signed by an authorized agent of Boeing, the
expenditure limitation specified above as Boeing's maximum
liability shall be deemed to be adjusted in accordance with said
Change Notice for the continued performance of the work
specified in Exhibit B.
E. Notwithstanding potential termination liability amounts reported
by Seller to Buyer, pursuant to the Limitation of Funds
provisions of this Subcontract, Seller shall fully utilize the
funding released by Buyer, for performance of the requirements
under this subcontract. Seller shall not reserve or withhold
from its expenditures, any funding that represents potential
termination costs. In the event that this Subcontract is
terminated for convenience pursuant to the Termination clause of
this subcontract, Buyer shall remain liable to Seller for
termination costs in accordance with the provisions of the
Termination clause hereof.
VIII. GOVERNMENT PROPERTY
A list of the current GFP is located in Exhibit "F" titled GFP Listing.
Additional Government Furnished Property is subject to definitization by
the government.
IX. PRINCIPAL PLACE OF PERFORMANCE
The principal place of performance of this subcontract shall be at the
Subcontractor's site located in Chandler, Arizona.
X. APPLICABLE LAW
This subcontract shall be governed and construed according to the laws
of the State of California.
XI. INVOICE PAYMENT REQUIREMENTS
Payments. Payments are made from "original" invoices only. Fax copies,
copies of invoices or statements will not be accepted. "duplicate
original" invoices must not be sent without prior authorization from
either your purchasing agent or accounts payable. Duplicate original
invoices, altered invoices or computer prints of invoices not on your
company letterhead must be signed and dated with full signature of the
appropriate manager in your company. Initials will not be accepted.
Third party billing is not allowed.
Payment Terms. Determination of payment due date, whether under net or
discount terms, will be based on the latest of (i) the date goods are
received or services performed; (ii) the date provided in this contract
for receipt of goods or completion of services; (iii) the date an
accurate invoice is received in accounts payable. Payments are not
scheduled upon the date of your invoice. Payment will be deemed to have
been made when deposited in the mail.
Invoice mailing information. Invoices are to be mailed to:
The Boeing Company
Accounts Payable
P.O. Box 66956, Mail Code S276-1371
St. Louis, MO 63166-6956
Attention: Carolyn Washington
Phone: (314) 232-8455 Fax: (314) 232-8846
Invoices sent to any other address or to buyers may
delay your payment.
A copy of invoices will be mailed to:
The Boeing Company
3370 Miraloma Ave.
Anaheim, CA 92803-3105
Attention: Connie Kama M/C GG-16
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ITEM CONTINUATION SHEET SUBCONTRACT NO. PAGE NO.
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101018 7
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Prepaid freight charges. When prepaid freight charges are authorized by
your procurement agent, include a copy of each freight bill with the
invoice if total charges exceed $100.00. Freight charges over $100.00
require approval from Boeing traffic prior to payment and will be
deducted from your invoice payment. It is not necessary to re-invoice.
When the approval has been received, an additional check will be issued
for the approval freight charge.
Invoice requirements. All invoices must contain the following
information:
1. The name and address of the supplier, which must match the name, and
address on the purchase contract.
2. Invoice number.
3. Invoice date.
4. Boeing purchase contract number. Only one purchase contract number
per invoice.
5. Boeing purchase contract line item number(s) and description of item
ordered (Boeing part number).
6. Quantity invoiced, which must equal quantity, shipped and cannot
exceed quantity ordered.
7. Unit of measure. If the invoice-billing unit of measure is different
than the purchase contract order unit of measure, both units of
measure must be included on the invoice.
8. Unit price, which must agree with the purchase contract unit price.
If the invoice billing unit price is different than the purchase
contract unit price, both unit prices must be included on the
invoice.
9. Extended unit price. Each Boeing purchase contract line item must be
subtotaled individually before tax, freight or any additional
charges are listed. Each invoice must have a grand total, which
includes all charges.
10. Payment terms, which must agree with the purchase contract payment
terms.
11. Shipping information, which includes shipment number, date of
shipment and freight carrier.
12. Name and address where invoice payment is to be mailed. Name must
agree with the purchase contract name.
13. Name, title, phone/fax number and mailing address of person to be
notified in event of a defective invoice.
The purchase contract is the sole basis for your payment. Incorrect
invoices will be returned unpaid. Accounts payable cannot authorize or
negotiate any changes to the purchase contract. Please contact your
procurement agent directly to resolve invoice discrepancies.
Payment inquiries. Accounts payable checks are generated twice a week.
Checks are prepared and mailed each Tuesday and Thursday.
Inquiries on past due invoices (aged 45 days from invoice date) or
payment problems may be faxed directly to accounts payable, fax number
314-232-8846. A copy of the invoice in question should be annotated with
the specific problem.
Identification: For accounting purposes all invoices submitted by the
Subcontractor shall note: Subcontract Number 101018. Prime Contract
HQ0006-01-C-0001, and Cost Charge Number VHA10093.
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ITEM CONTINUATION SHEET SUBCONTRACT NO. PAGE NO.
NO.
101018 8
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XII. PRIORITY
The priority rating for this subcontract is DX-C9. This is a rated order
certified for national defense use, and you are required to follow all
of the provisions of the Defense Priorities and Allocation System
regulation (15 CFR Part 700). Pursuant to the Defense Priorities and
Allocations System regulation, you are required to acknowledge this
order in writing within ten working days after receipt of a "DO" rated
order and within five working days after receipt of a "DX" rated order.
XIII. SECURITY REQUIREMENTS
The security requirements applicable to this subcontract are set forth
in the DD Form 254, Contract Security Classification Specification,
Exhibit D, attached hereto and made a part hereof.
XIV. RELATIONSHIP WITH SUBCONTRACTOR
The Subcontractor shall, at the request of Buyer, arrange and conduct
meetings at the Subcontractor's or lower-tier supplier's or
subcontractor's facilities with Buyer and Government personnel in
attendance. Buyer may request such meetings to review in-process work,
investigate problem areas or activities critical to program schedules,
or to witness or review test activities.
XV. ALABAMA TAX EXEMPTION
The items and/or services purchased hereunder are for resale to the U.S.
Government and are exempt from taxation per Certificate Number 6800
04598.
XVI. ORDER OF PRECEDENCE
In the event of any inconsistency between the provisions of this
subcontract, the inconsistency shall be resolved by giving precedence in
the following order:
(a) Schedule
(b) General Provisions
(c) Statements of Work
(d) Other documents incorporated by reference
XVII. SUBCONTRACTOR RESPONSIBILITY
Notwithstanding the right of Buyer to review the Subcontractor's efforts
and progress, drawings, specifications, plans, data items, etc., as
required by this subcontract, and to provide certain approvals as
required by this subcontract, it is expressly understood that any such
reviews and/or approvals shall in no manner relieve the Subcontractor
from meeting any and all requirements of this subcontract.
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