Attachment 3: Statement of Work Addendum

SPECIFICATION ADDENDUM

SPECIAL INSTRUCTIONS

REQUIRED INSURANCE

Prior to start of performance, the Contractor shall, at its own expense, procure and maintain the following kinds of insurance with respect to performance under the contract. In accordance with HSAR 3052.217-95, Liability and Insurance, and 3052.228-70, Insurance the Contractor shall furnish the Contracting Officer with proof of insurance for the duration of the contract, including:
(1) Ship Repairer's Liability - $500,000 per occurrence. (2) Comprehensive General Liability - $500,000 per occurrence. (3) Full insurance coverage in accordance with the United States’ Longshoremen's and Harbor Worker's Act.
(4) Full insurance coverage in accordance with the State's Workmen's Compensation Law (or its equivalent) for all places of performance under this contract. The insurance certificate must provide the name of the US Coast Guard vessel and the contract number as specifically insured.

CHANGE REQUEST (CR)

(1) The Contractor shall not perform work without the Contracting Officer's authorization. This clause applies to Change Requests (CR), authorized by the Contracting Officer pursuant to the Changes clause. The Contractor shall perform the CR at the labor billing rates designated in the Schedule, as described in paragraph (2) of this clause. All work shall be paid at the prices stated in the Schedule.
(2) The CR composite labor rate is a flat, hourly rate used to price direct production labor hours. Contractors shall provide a detailed breakdown that fully supports the quoted CR composite labor rate. The CR composite labor rate shall be burdened to include the cost of direct production labor, all associated indirect costs, and profit/fee as described below: a. Direct production labor is defined as work that is directly related to the alteration, modification, and repair tasks performed directly on, or in direct support of, components or systems identified in the CR or elsewhere in the contract. Examples of direct production labor include the following: abrasive cleaning/water blasting, tank cleaning, welding, burning, brazing, blacksmithing, machining (inside and outside), carpentry, electrical/electronic work, crane

operation, shipfitting, lagging/insulating, painting, boilermaking, pipe fitting, engineering (production), sheetmetal work, installation and removal of staging/scaffolding, rigging, material handling (shop to ship and within the worksite in support of labor task), set-up (moving tools and