EXHIBIT No. 10.6
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AWARD/CONTRACT 1. THIS CONTRACT IS A RATED ORDER RATING PAGE OF PAGES
UNDER DPAS (15 cfr 350) DO-C9 1 8
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2. CONTRACT (Proc. Inst. Ident)NO 3. EFFECTIVE DATE 4. REQUISITION (PURCHASE REQUEST/PROJECT NO.
SP0200-96-D-0001 95 Oct 27 DD#50018
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ISSUED BY CODE SP0200 a. ADMINISTERED BY (if other than 5) CODE S2101A
DEFENSE PERSONNEL SUPPORT CENTER DCMAO BALTIMORE
0000 XXXXX 00XX XXXXXX 000 XXXXXXXXXX XXXX., XXXX
XXXXXXXXXXXX, XX 00000 XXXXXX, XX 00000-0000
BUYER/SYMBOL: XXXX XXXXXX (DPSC-MGAA-PGC
TELEPHONE: (000)000-0000 CD: C PAS: NONE
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7. NAME XXX XXXXXXX XX XXXXXXXXXX (Xx, xx., xxxx, Xxxxx & ZIP Code a. DELIVERY
SURVIVAL TECHNOLOGY INC. x FOR ORIGIN / / OTHER (See below)
0000 XXXXXXXX XXXXXXXXX 9. DISCOUNT FOR PROMPT PAYMENT
XXXXXXXXX, XX 00000
N-30
ATT: XX. XXXXXX XXXXXX
10. SUBMIT INVOICES ITEM
CODE 54452 FACILITY CODE (4 copies unless otherwise specified)
TO THE ADDRESS SHOWN IN: 12
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11. SHIP TO/XXXX FOR CODE_____________ 12. PAYMENT WILL BE MADE BY CODE SC 1034
DEFS-COLUMBUS CENTER
DFAS-CO-JSC/CAPITOL DIVISION
P. BO. BOX #182263
SEE INDIVIDUAL DELIVERY ORDER XXXXXXXX, XX 00000-0000
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13. AUTHORITY FOR USING OTHER THAN FULL 7 OPEN COMPETITION: 14. ACCOUNTING & APPROPRIATION DATA
MG 97X4930 5CMO 01 25.0 S33150
X 10 USC 2304(c) ( 3 ) / / 41 USC 253(c) ( ) MG 97X4930 5CMO 01 26.0 S33150
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15A. ITEM NO. 15B. SUPPLIES/SERVICES 15C. QUANTITY 15D. UNIT 15E. UNIT PRICE 15F. AMOUNT
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TERM OF CONTRACT:
PURSUANT TO CLAUSE 52216-8,
ORDERING, DELIVERY ORDERS FOR
ANY SUPPLIES TO BE ISSUED UNDER
THIS CONTRACT MAY BE ISSUED
FROM 27 OCT. 95 THROUGH 30 SEP 96
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SEE PAGE 2. 15G. TOTAL AMOUNT OF CONTRACT $
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18. TABLE OF CONTENTS
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x SEC. DESCRIPTION PAGES(S) X SEC. DESCRIPTION PAGE(S)
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x A SOLICITATION/CONTRACT FORM I CONTRACT CLAUSES
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X B SUPPLIES OR SERVICES AND PRICES/COST PART III - LIST OF DOCUMENTS, EXHIBITS & OTHER ATTACH.
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C DESCRIPTION/SPEC./WORK STATEMENT J LIST OF ATTACHMENTS
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D PACKAGING AND MARKING PART IV - REPRESENTATIONS AND INSTRUCTIONS
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E INSPECTION AND ACCEPTANCE K REPRESENTATIONS, CERTIFICATIONS AND
F DELIVERIES OF PERFORMANCE OTHER STATEMENTS OF OFFERORS
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G CONTRACT ADMINISTRATION DATA L INSTRS., CONDS., AND NOTICES TO OFFERORS
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H SPECIAL CONTRACT REQUIREMENTS M EVALUATION FACTORS FOR AWARD
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CONTRACTING OFFICER WILL COMPLETE ITEM 17 OR 18 AS APPLICABLE
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17. / / CONTRACTOR'S NEGOTIATED AGREEMENT (Contractor is required 18. X AWARD (Contractor is not required to
to sign this document and return ______ copies to issuing office.) sign this document.) Your offer on Solicitation Number
Contractor agrees to furnish and deliver all items or perform all SP0200-95-R-1005 & SEE PAGE 6 including the additions or
the services set forth or otherwise identified above and on any changes made by you which additions or changes are set
continuation sheets for the consideration stated herein. forth in full above, is hereby accepted as to the items
The rights and obligations of the parties to this contract listed above and on any continuation sheets. This award
shall be subject to and governed by the following document: consummates the contract which consists of the
(a) this award/contract, (b) the solicitation, if any, and following documents: (a) the Government's solicitation and
(c) such provisions, representations, certifications, and your offer and (b) this award/contract. No further
specifications, as are attached or incorporated by reference contractual document is necessary.
herein. (Attachments are listed herein.)
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18A. NAME AND TITLE OF SIGNER (Type or print) 20A. NAME OF CONTRACTING OFFICER
Xxxx Xxxxxx
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19B. NAME OF CONTRACTOR 19C. DATE SIGNED 20B. XXXXXX XXXXXX XX XXXXXXX 00X. DATE SIGNED
BY BY s/s Xxxx Xxxxxx 10-27-95
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(Signature of person authorized to sign) (Signature of Contracting Officer)
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CONTINUATION SHEET SP0200-96D-001 2 8 PAGES
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NAME OF OFFEROR OR CONTRACTOR
STI
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SECTION B
0001 BASE MAINTENANCE/SERVICE
To provide labor, services and incremental production as directed by
the Government in accordance with statement of work.
0002 LOGISTICS MAINTENANCE
To provide segregation of goods, disassembly into components, shelf
life extension program, and storage in accordance with statement of
work.
003 DIVISION-READY BRIGADE SET PROGRAM
To provide on-site support for the storage, assembly, and shipment of
Division-Ready Brigade Sets in accordance with statement of work.
0004 BASE MAINTENANCE/MATERIAL
To provide completely assembled Xxxx I Kits, Atropine, Pralidoxime,
Diazepam, and Training Kits using refurbished and/or new components in
accordance with statement of work.
0005 MOBILIZATION SURGE OPTION
To provide material in the event of a mobilization surge contingency
or other Government need. The contractor will ship to those locations
identified by the Contracting Officer up the maximum quantities
indicated.
0006 CAPITAL INVESTMENT OPTION
To provide for production automation and product re-design for the
Atropine Auto-Injector and production re-design for the Pralidoxime
Auto-Injector and production re-design for the Pralidoxime Auto-
Injector as proposed by STI in 9 June 1995 offer. This unevaluated
option will be exercised if it is determined to be in the best
interest of the Government once funds become available.
CONTINUATION SHEET SP0200-96D-0001 3 8 PAGES
NAME OF OFFEROR OR CONTRACTOR
STI
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ITEM NO. SUPPLIES/SERVICES QUANTITY UNIT UNIT PRICE AMOUNT
001 BASE MAINTENANCE/SERVICE
001AA BASE YEAR $________ $5,463,272
001AB OPTION YEAR ONE $________ $5,632,633
001AC OPTION YEAR TWO $________ $5,812,878
0002 LOGISTICS MAINTENANCE $________ $798,180
0002AA BASE YEAR $________ $656,496
0002AB BASE YEAR ONE $________ $694,195
0002AC BASE YEAR TWO
$________ No Charge
0003 DIVISION-READY BRIGADE SET PROGRAM $________ No Charge
0003AA BASE YEAR $________ No Charge
0003AB OPTION YEAR ONE
0003AC OPTION YEAR TWO
0004 BASE MAINTENANCE/MATERIAL ANNUAL ESTIMATE
0004AA BASE YEAR
XXXX I (6505-01-174-9919) 390,164 EA $7.73 $3,015,968
ATROPINE (6505-00-926-9083) 465,480 EA $2.69 $1,252,141
PRALIDOXIME (6505-01-125-3248) 231,694 EA $6.42 $1,487,475
DIAZEPAM (6505-01-274-0951) 417,015 EA $6.57* $2,739,789
0004AB OPTION YEAR ONE
XXXX I (6505-01-274-0951) 390,164 EA $7.97 $3,109,607
ATROPINE (6505-00-926-9083) 465,480 EA $2.77 $1,289,380
PRALIDOXIME (6505-01-125-3248) 231,694 EA $6.62 $1,533,814
DIAZEPAM (6505-01-274-0951) 417,015 EA $6.62 $2,760,639
0004AC OPTION YEAR TWO
XXXX I (6505-01-174-9919) 390,164 EA $8.22 $3,207,148
ATROPINE (6505-00-926-9083) 465,480 EA $2.86 $1,331,273
PRALIDOZIME (6505-01-125-3248) 231,694 EA $6.83 $1,582,470
DIAZEPAM (6505-01-274-0951) 417,015 EA $6.83 $2848,212
0005 MOBILIZATION SURGE OPTION MAXIMUM
0005AA BASE YEAR
XXXX I (6505-01-174-9919) 1,270,946 EA $10.24 $13,014,487
ATROPINE (6505-00-926-9083) 3,721,997 EA $3.30 $12,282,590
PRALIDOXIME (0000-00-000=3248) 1,011,599 EA $6.57 $6,646,205
DIAZEPAM (6505-01-274-0951) 1,861,137 EA $6.57 $12,227,670
0005AB OPTION YEAR ONE
XXXX I (6505-01-174-9919) 1,270,946 EA $10.56 $13,421.190
ATROPINE (6505-00-926-9083) 3,721,997 EA $3.40 $12,654,790
PRALIDOXIME (6505-01-125-3248) 1,011,599 EA $6.77 $6,848.525
DIAZEPAM (6505-01-274-0951) 1,861,137 EA $6.77 $12,599,897
005AC OPTION YEAR TWO
XXXX I (6505-01-174-9919) 1,270,946 $10.90 $13,853,311
ATROPINE (6505-00-926-9083) 3,721,997 $3.51 $13,064,209
PRALIDOXIME (6505-01-125-3248) 1,011,599 $6,99 $7,071,077
DIAZEPAM (6505-01-274-0951) 1,861,137 $6.99 $13,009,348
0006 CAPITAL INVESTMENT OPTION Unevaluated
* $6.42 for quantities above 417,015 EA option
CONTINUATION SHEET SP0200-96D-001 4 8 PAGES
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NAME OF OFFEROR OR CONTRACTOR
STI
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VARIATION IN QUANTITY:
Plus or Minus 2%
INSPECTION AND ACCEPTANCE:
Origin
FOB:
Origin
MANUFACTURING AND PACKAGING/PACKING LOCATION:
Survival Technology, Inc.
0000 Xxxxxxxx Xxxxx
Xx. Xxxxx, XX 00000
SOURCE OF RAW MATERIALS:
Atropine: Boeringer-Ingelheim, German
Pralidoxime: Ayerst Lab, Rousse Point, NY
Diazepam: SST Corp., Clifton, NJ
PAYMENT ADDRESS:
Survival Technology Inc.
P. O. Xxx 0000-X0000
Xxxxxxxxxxxx, XX 00000-0000
GUARANTEED MINIMUM:
Delivery Order SP0200-96d-0001-8001 covering the base year annual services
under lines 0001 and 0002 of the contract will be issued as a separate
document concurrently with the issuance of this basic contract. The
guaranteed minimum for line 0004 (2% of the estimated dollar value of line
0004: $169,907.46) will be issued during the base year.
ANNUAL MAXIMUM ORDER QUANTITIES UNDER LINE ITEM 0004:
NSN 6505-01-174-9919 Xxxx I Kit 2,340,984 EA
NSN 6505-00-926-9083 Atropine Auto-Injector 2,461,124 EA
NSN 6505-01-125-3248 Pralidoxime Auto-Injector 1,260,504 EA
NSN 6505-01-274-0951 Diazepam Auto-Injector 1,251,045 EA
REOPENER PROVISION:
See attached provision.
DELIVERY:
For items with available pre-stocked components: 4 Weeks after award
of delivery order.
For items without available pre-stocked components: 16 Weeks after award
of delivery order.
OPTION PROVISION:
Option Clause 52.217-9P12 is a part of this contract with two one-year
option periods available at the unit prices stated on page 3. The
contracting officer shall give the contractor a preliminary written notice
of intent to extend at least 15 days before expiration of the contract.
CONTINUATION SHEET SP0200-96D-001 5 8 PAGES
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NAME OF OFFEROR OR CONTRACTOR
STI
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PRE-STOCKING OF COMPONENT PARTS:
The Government may purchase component parts for each injector throughout
the life of this contract as excess War Stopper funds become available.
This material shall be purchased against line item 0004 and shall be stored
and rotated by the contractor to fill given delivery orders. No additional
costs for storage and rotation shall apply.
GOVERNMENT FURNISHED MATERIAL:
The following will be considered Government Furnished Material under this
contract:
1) Expired or extended material shipped to STI for shelf life
extension in accordance with line item 0002 and Logistics
Maintenance/DRB Program Statement of Work.
2) Material purchased under line item 0004 specifically for the DRB
Program to be stored at STI in accordance with line item 0003 and
Logistics Maintenance/DRB Program Statement of Work.
3) Components purchased under line item 0004 identified as pre-
stocking components.
EFFECTIVE DATE:
Effective date of Base Year shall be from 27 Oct 1995 through 30 Sep 1996. The
contractor shall submit invoices on the 15th and 30th of each month during the
base year. The payment schedule will be as follows for Line Items 0001 and
0002:
Contract Value for Line Items 0001 and 0002 $6,261,452
Oct 27-31 $ 85,773
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Balance $6,175,679
22 Payments $ 280,713
October 30, 1995 $ 85,773
Nov 15, 1995 $280,713
Nov 30, 1995 $280,713
Dec 15, 1995 $280,713
Dec 31, 1995 $280,713
Jan 15, 1996 $280,713
Jan 31, 1996 $280,713
Feb 15, 1996 $280,713
Feb 29, 1996 $280,713
Mar 15, 1996 $280,713
Mar 31, 1996 $280,713
Apr 15, 1996 $280,713
Apr 30, 1996 $280,713
May 15, 1996 $280,713
May 31, 1996 $280,713
Jun 15, 1996 $280,713
Jun 30, 1996 $280,713
Jul 15, 1996 $280,713
Jul 31, 1996 $280,713
Aug 15, 1996 $280,713
Aug 31, 1996 $280,713
Sep 15, 1996 $280,713
Sep 30, 1996 $280,713
Effective dates for Option Year One and Two, if exercised, shall be from 1 Oct
1996 through 30 Sep 1997 and 1 Oct 1997 through 30 Sep 1998, respectively.
CONTINUATION SHEET SP0200-96D-001 6 8 PAGES
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NAME OF OFFEROR OR CONTRACTOR
STI
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Invoices for Line Item 0004 will be submitted after issuance of each Delivery
Order. The same shall apply for Line Items 0005 and 0006, if exercised.
CONTINUATION FROM BLOCK 18 PAGE 1:
Amendments 0001 through 0005
Contractor Correspondence dated:
9 Jun 1995
12 Jun 1995
20 Jun 1995
15 Aug 1995
11 Sep 1995
12 Sep 1995
22 Sep 1995
28 Sep 1995
2 Oct 1995
24 Oct 1995
25 Oct 1995
26 Oct 1995
27 Oct 1995
CONTINUATION SHEET SP0200-96D-001 7 8 PAGES
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NAME OF OFFEROR OR CONTRACTOR
STI
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REOPENER CLAUSE (OCT 1995)
(a) This clause applies only to Items 0004 Base Maintenance/Material and 0005
Mobilization Surge Option as listed in Section B, Schedule of Supplies and
Services. Only downward price adjustments shall apply.
(b) The negotiated prices for all items were based on the most current,
accurate and complete information available at the time of negotiations
regarding the contractor's estimated production forecast, business volume, and
indirect cost structure. The contractor's practices comply with the Generally
Accepted Accounting Principles and appropriate Defense Contract Audit Agency
guideline in connection with the proposed statement of work upon which these
prices were negotiated.
(c) The prices negotiated for items 0004 and 0005 shall be firm-fixed priced
for the respective contract and option periods unless any of the following
circumstances described below occur.
1. Commercial Production (dollars): The contractor's FY96, FY97, and
FY98 commercial production volume varies significantly enough to cause the
proposed commercial production costs for direct material and direct labor to
exceed $4,150,788 per annual contract term (i.e. 110% of $3,773,444, the
proposed estimated commercial production costs in the contractor's SF1411,
Schedules D-1 and D-2).
2. Government Sales (unit) (Government sales are defined as sales to the
Department of Defense): The total volume of Government Sales per annual
contract term exceeds 1) 1,200,000 units of Atropine and 2) 1,200,000 units of
any combination of sales of Pralidoxime and Diazapam. Each Xxxx I Kit sold
shall be converted to one Atropine and one Pralidoxime injector for the purpose
of determining sales under this clause.
(d) When any of the above occurs, DPSC may reopen the contract to renegotiate
the appropriate cost elements cited in the table in paragraph (h) for the base
and option years. The purpose is to make a downward adjustment in contract
price to equitably share in lower unit costs that may be realized by the
contractor as a result of increased commercial and/or Government business
unforeseen at the time of contract award.
(e) The negotiated General & Administrative rate of 24.48% will be applied to
renegotiated costs in the base and option terms in a method consistent with the
methodology negotiated prior to contract award.
CONTINUATION SHEET SP0200-96D-001 8 8 PAGES
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NAME OF OFFEROR OR CONTRACTOR
STI
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REOPENER CLAUSE (OCT 1995)
(f) In order to ensure timely definitization of any adjustment that may be
required under this clause, the Government has the option to conduct
cost/financial reviews AT ANY TIME during the course of the contract term to
determine whether a price reduction is authorized. The Contracting Officer may
request ANY information (e.g., sales data) and cost data (including certified
cost or pricing data) she deems necessary to make this determination. (If
necessary, the Contracting Officer and/or authorized representative may conduct
reviews at the contractor's plant and have access to the contractor's financial
and production records.) The Contractor shall provide this information within
30 days of any such request. (Reviews are tentatively scheduled for 1 November
1996, 1 November 1997, and 1 November 1998).
(i) Once negotiations are completed, the Contracting Officer shall
promptly issue a modification reducing the unit prices for items 0004 and 0005
for the applicable contract term and recoup any money for units actually
delivered by the same term.
(ii) Should the Contractor fail to submit the information in paragraph (f),
or should there be no agreement as to the amount of the price adjustment, the
Contracting Officer may make a unilateral determination and modify the contract
accordingly. Failure to agree with such change in the contract price shall be
resolved in accordance with the Disputes clause of the contract.
(g) For the propose of this clause, the elements of cost subject to adjustment
in accordance with this clause are limited to reduction in Government cost only.
Each element of cost to be examined shall stand alone and increases in one
element will not be allowed to offset decreases in another r(i.e., higher
material handling overhead will not offset lower manufacturing overhead);
however, the above will not preclude the contracting Officer, solely at her
discretion, from weighing the individual circumstances of such a scenario and
determining to allow just such an offset on a case by case basis if such actio
is in the best interest of the Government.
(h) The following cost elements only shall be considered for renegotiation if
authorized under this clause:
CAUSE FOR REOPENING ELEMENTS SUBJECT TO REOPENING
Commercial Production (dollars) 1. St. Louis Plant Overhead (O/H)
Paragraph (c)1 2. Additional St. Louis Plant O/H
Government Sales (units) 1. St. Louis Plant O/H
Paragraph (c)2 2. Additional St. Louis Plant O/H
3. Manufacturing Costs
4. Manufacturing Material O/H Cost
(End of Clause)
