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800 North Quincy Street

Arlington, Virginia 22217-5000

13. CONTRACTOR'S AGREEMENT (X if applicable)

CONTRACTOR'S AGREEMENT (Contractor is required to sign this document and return

copies to issuing office) CONTRACTOR AGREES TO FURNISH AND DELIVER ALL ITEMS OR PERFORM ALL SERVICES SET FORTH IN THE PROPOSAL IDENTIFIED IN BLOCK 19.

14 AWARD (X if applicable)

X

AWARD (Contractor is not required to sign this document) YOUR PROPOSAL IDENTIFIED IN BLOCK 19, INCLUDING THE ADDITIONS OR CHANGES MADE BY YOU, WHICH ARE SET FORTH IN FULL, IS HEREBY ACCEPTED. THIS AWARD CONSUMATES THE CONTRACT WHICH CONSISTS OF YOUR PROPOSAL AND THIS AWARD. NO FURTHER CONTRACTUAL DOCUMENT IS NECESSARY. 15. CONTRACTOR REPRESENTATIVE INFORMATION

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X

a. UNSOLICITED PROPOSAL INCORPORATED BY REFERENCE

(1) DATE YYMMDO)

16 December 1985 and unilateral lettersdated 19 March 1986. 28 Adr 198 (2) TITLE "SDI Communication Research" 6 May 1986, 12 May 1986, and 16 May 1986

X

b. ATTACHMENTS (Specify)

Continuation Sheets for Blocks 25, 27 and 28 and Attachment Number 1

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xx a. APPROVAL REQUIRED PRIOR TO ACQUISITION OF PROPERTY IDENTIFIED ON CONTINUATION SHEET

b. PROPERTY FOR WHICH DETERMINATION REGARDING TITLE IS DEFERRED IS IDENTIFIED ON CONTINUATION SHEET. 28. OTHER TERMS AND CONDITIONS/CONTINUATION SHEET

See Continuation Sheets

DO Form 2222, 34 APR

85-796

267

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This is in response to your request for information about a contract awarded to the Information Sciences Institute of the University of Southern California.

On May 20, 1985, the Office of Naval Research (ONR) awarded contract NO014-86-H-0311 to the University of Southern California for SDI Communication Research. The contract was to be completed on March 31, 1989. At award, the estimated contract cost was $5,309,000. It was to be performed without fee. The contract was to be incrementally funded and the amount placed on contract at award was $1,157,000.00 (Enclosure 1). The contract was awarded as competitive pursuant to Subpart 6.102 (d) (2) of the Federal Acquisition Regulation. The Broad Agency Announcement (BAA) under which award was made is at Enclosure 2.

In March 1987, a news account, stating that there may have been other sources available to perform the contract, resulted in review of the award by senior contracting, scientific and legal officials at ONR. Contracting and legal officials concluded that the University of Southern California proposal may not have been within the scope of the BAA for ONR long range scientific products, and directed a further review of the potential effects of terminating the contract. Based on this further review, the contract was restructured to (1) eliminate requirements which had not yet been substantially performed, (2) reduce the period of performance by sixteen months, and (3) reduce the estimated cost to $2,562,000. Modification P002 effecting these changes to the contract and adding the final funding increment is set forth at Enclosure 3.

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ONR advises that the work eliminated by Modification P0002 was incorporated into a solicitation under which competitive offers were solicited pursuant to Subpart 15.4 of the FAR. ONR further advises that three offers were received, and that the University of California has been selected for award. The estimated cost of this award is $5,965,356.00.

William H. Corral

WILLIAM H. CARROLL
General Counsel

Attachments
As stated

EXCERPTS FROM 1985 BROAD AGENCY

ANNOUNCEMENT USED TO AWARD FIRST

CONTRACT TO INFORMATION SCIENCES INSTITUTE

"SPECIAL NOTICES

LONG RANGE SCIENTIFIC PROJECTS. The Office of Naval Research (ONR) is interested in receiving proposals for long-range scientific projects which offer potential for advancement and improvement of naval operations. Info regarding areas of interest and points of contact is contained in a publication called ONR "1", 1982 edition. Requests for this publications should be sent to [ONR]

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This notice constitutes ONR's Broad Agency Announcement as contemplated in FAR 6.102(d) (2). This announcement will be open for period 1 Apr 85 to 31 Mar 86. Proposals may be submitted any time during this period. Awards may be made at any time throughout the year. Award decisions will be based on a competitive selection of proposals resulting from a peer and/or scientific review. Evaluations will be conducted using the following evaluation criteria: (1) Overall scientific, technical or socio-economic merits of the proposal. (2) Potential contributions of the effort to the agency's specific mission. (3) The offeror's capabilitites, related experience, facilities, techniques or unique combinations of these which are integral factors for achieving the proposal objectives. (4) The qualifications, capabilities and experience of the proposed Principal Investigator, team leader or key personnel who are critical in achieving the proposal objectives. (5) Realism of the proposed cost and availability of funds. Academic institutions are especially encouraged to participate."

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