ARTICLE 12

Article 13 of the Contract is amended by the inclusion of two new paragraphs (h) and (i) reading as follows:

"(h) The Contractor will comply with the Commission's regulations and requirements with respect to licensing or related matters or activities.

"(i) The Contractor shall take all reasonable precautions in the performance of work under this Contract to protect the health and safety of employees and of members of the public and to minimize danger from all hazards to life and property and shall comply with all health, safety, and fire protection regulations and requirements (including reporting requirements) of the Commission. In the event the Contractor fails to comply with said regulations or requirements of the Commission, the Administration may, without prejudice to any other legal or contractual rights of the Government, issue an order stopping all or any part of the work under this Contract; thereafter a start order for a resumption of such work may be issued at the discretion of the Administration. The Contractor shall make no claim for an extension of time or for compensation or damages by reason of or in connection with said work stoppage. The Contractor's costs of meeting the obligations under paragraph (h) above and under this paragraph (i) (exclusive of the compensation or damages referred to in the preceding sentence) shall be paid to the Contractor as contract costs of work directed hereunder in accordance with the provisions of this Contract."

ARTICLE 13

Article 18 of the Contract is amended to read as follows:

"Article 18. Utilization of Small Business Concerns and Utilization of Concerns in Labor Surplus Areas. (a) It is the policy of the Government as declared by the Congress that a fair proportion of the purchases and contracts for supplies and services for the Government be placed with small business concerns.

"(b) The Contractor agrees to accomplish the maximum amount of subcontracting to small business concerns that the Contractor finds to be consistent with the efficient performance of this Contract.

"(c) It is the policy of the Government to place supply contracts with suppliers who will perform such contracts substantially in areas of current labor surplus where this can be done, consistent with the efficient performance of the contract, at prices no higher than are obtainable elsewhere. The Contractor agrees to use its best efforts to place its subcontracts in accordance with this policy, in complying with the foregoing and with paragraph (b) of this Article. The Contractor in placing its subcontracts shall observe the following order of preference:

"(i) small business concerns in labor surplus areas;

"(ii) other concerns in labor surplus areas;

"(iii) small business concerns not in labor surplus areas."

ARTICLE 14

Paragraph (d) of Article 22 of the Contract is amended to read as follows: “(d) (1) With respect to 'public liability' arising out of or resulting from a nuclear incident, as defined in Section 11 (u) of the Atomic Energy Act of 1954, as amended, the Contractor is indemnified against claims arising out of or in connection with the maintenance, modification or servicing the vessel pursuant to the provisions of this Contract by the Atomic Energy Commission as a person indemnified within the meaning of the Interagency Agreement between the Administration and the Commission dated as of September 2, 1958, under which the indemnification provisions of Section 170 of the Atomic Energy Act have been granted to the Administration by the Commission.

"(2) It is agreed that the site of the work under this Contract will be the NS SAVANNAH and those portions of the Contractor's shipyard appropriated for use in the performance of the contract work, identified under Article 7 (b) (1). If a nuclear incident occurs at such site of the work, all other property of the Contractor shall be deemed to be property not at the site of and used in connection with the contract activity and the Commission's indemnity agreement shall cover any damage to any such off-site property.

"(3) In the event that said Interagency Agreement is terminated or modified to eliminate or reduce the indemnity therein provided, the Administration agrees

(i) to give the Contractor immediate notice thereof, (ii) to enter into such other agreement or agreements which will include duly authorized indemnity provisions by reason of which the Contractor will be a person indemnified (at least to the same extent and terms as described in paragraphs (d)(1) hereto) against public liability arising out of or resulting from a nuclear incident, as defined in Section 11(u) of the Atomic Energy Act of 1954, as amended, arising out of or in connection with the NS SAVANNAH or the Administration's operation of said vessel, or (iii) to cancel this Contract pursuant to the provisions of Article 34 hereof."

ARTICLE 15

Paragraph (a) of Article 30 of the Contract is amended to read as follows: "(a) In connection with the performance of work under this Contract, the Contractor agrees as follows:

"(i) The Contractor will not discriminate against any employee or applicant for employment because of race, creed, color, or national origin. The Contractor will take affirmative action to ensure that applicants are employed, and that employees are treated during employment, without regard to their race, creed, color, or national origin. Such action shall include, but not be limited to, the following: Employment, upgrading, demotion or transfer; recruitment or recruitment advertising; layoff or termination; rates of pay or other forms of compensation; and selection for training, including apprenticeship. The Contractor agrees to post in conspicuous places, available to employees and applicants for employment, notices to be provided by the Administration setting forth the provisions of this nondiscrimination Article.

"(ii) The Contractor will, in all solicitations or advertisements for employees placed by or on behalf of the Contractor, state that all qualified applicants will receive consideration for employment without regard to race, creed, color, or national origin.

"(iii) The Contractor will send to each labor union or representative of workers with which he has a collective bargaining agreement or other contract or understanding, a notice, to be provided by the Administration, advising the said labor union or workers' representative of the Contractor's commitments under this Article, and shall post copies of the notice in conspicuous places available to employees and applicants for employment.

"(iv) The Contractor will comply with all provisions of Executive Order No. 10925 of March 6, 1961, and by the rules, regulations, and relevant orders of The President's Committee on Equal Employment Opportunity created thereby. "(v) The Contractor will furnish all information and reports required by Executive Order No. 10925 of March 6, 1961, and by the rules, regulations, and orders of the said Committee, or pursuant thereto, and will permit access to his books, records, and accounts by the Administration and the Committee for purposes of investigation to ascertain compliance with such rules, regulations, and orders.

"(vi) In the event of the Contractor's non-compliance with the nondiscrimination clauses of this Contract or with any of the said rules, regulations, or orders, this Contract may be cancelled in whole or in part and the Contractor may be declared ineligible for further government contracts in accordance with precedures authorized in Executive Order No. 10925 of March 6, 1961, and such other sanctions may be imposed and remedies invoked as provided in the said Executive Order or by rule, regulation, or order of The President's Committee on Equal Employment Opportunity, or as otherwise provided by law.

"(vii) The Contractor will include the provisions of the foregoing subparagraphs (i) through (vi) in every subcontract or purchase order unless exempted by rules, regulations, or orders of The President's Committee on Equal Employment Opportunity issued pursuant to Section 303 of Executive Order No. 10925 of March 6, 1961, so that such provisions will be binding upon each subcontractor or vendor. The Contractor will take such action with respect to any subcontract or purchase order as the Administration may direct as a means of enforcing such provisions, including sanctions for noncompliance: Provided, however, that in the event the Contractor becomes involved in, or is threatened with, litigation with a subcontractor or vendor as a result of such direction by the Administration, the Contractor may request the United States to enter into such litigation to protect the interests of the United States."

ARTICLE 16

Subparagraph (i) of paragraph (e) of Article 34 of the Contract is amended by the deletion of sub-subparagraph (4) therefrom.

ARTICLE 17

Article 35 of the Contract is amended by the substitution of the words "the Chief of the Office of Research and Development" in place of the words "the Nuclear Projects Officer."

ARTICLE 18

Paragraph (b) of Article 42 of the Contract is amended to read as follows: "(b) Facilities shall mean shipyards, piers, land, buildings or any other structure, material, etc., more fully described in Article 7(a) (i) which the Contractor has designated, by notice to the Administration, to be used in the performance of this Contract and the facilities, equipment, maerials, etc., owned or which will be owned by the Administration pursuant to the terms of this Contract."

ARTICLE 19

The Scope of Work attached to the Contract is amended to substitute The Scope of Work attached to this Addendum No. 1.

ARTICLE 20

Except as expressly provided herein, all of the provisions of Contract No. MA-2206 shall remain in full force and effect.

In witness whereof, the United States of America, represented as aforesaid, has caused this Addendum to be executed on its behalf in three counterparts the 15th day of May 1962 and Todd Shipyards Corporation has caused this Addendum to be executed on its behalf in three counterparts the 11th day of December, 1961.

CERTIFICATION OF EXECUTION BY CONTRACTOR

I, Edwin K. Linen, certify that I am the Secretary of the corporation named as Contractor in the within contract; that J. T. Gilbride, who signed the said contract on behalf of the Contractor was then President of said corporation; that I know his signature, and his signaure thereto is genuine; and that said contract was duly signed, sealed and attested for and on behalf of said corporation by authority of its governing body.

EDWIN K. LINEN,
Secretary.

MAINTENANCE AND SERVICING CONTRACT SCOPE OF WORK

I. INTRODUCTION

The work to be performed by the Contractor under the Contract consists in the furnishing of certain shipyard facilities as therein provided and in general furnishing material and services for the maintenance and servicing of the N. S. SAVANNAH, with respect to both conventional and nonconventional features of said Vessel and generally furnishing a home base for the Vessel. This scope of work is intended as a general description of the work and in general terms the description of the facilities, method of performing work, storage of fuels, manpower requirements and other explanatory matters but except to the extent that by reference any of the provisions of this scope of work are incorporated into the provisions of the contract, this scope is not intended as including provisions establishing or defining the Contractor's or the Administration's responsibilities under the Contract.

The facilities which may make up a central servicing system for the SAVANNAH are defined, as follows: 1) Nuclear Servicing Vessel; 2) Nuclear Shore Facility; 3) Nuclear Ship Maintenance Site; 4) Nuclear Ship Refueling Site; 5) Nuclear Ship Waste Transfer Site; and 6) Nuclear Ship Drydocking Site. The nonconventional services associated with a central servicing system are those required to accomplish nuclear plant maintenance and modification, refueling, waste handling and transfer, handling and storage of new and irradiated fuel, provision of radiation safety measures, training and mock-up programs, and carry out testing and development programs.

The Administration proposes to furnish the Nuclear Servicing Vessel, ATOMIC SERVANT, MA Design B2-MA-51a, equipped with a spent fuel pit, as a flexible component to the system. However, the Contractor will be expected to operate, maintain, furnish crew, and arrange for transportation of this barge wherever it may be needed.

In addition to the Nuclear Servicing Vessel, the Administration also proposes to furnish, or have furnished by others, at least one shipping container for transportation of irradiated fuel from pierside to a reprocessing site. The Contractor will load spent fuel from the Nuclear Servicing Vessel into the shipping container, prepare it for shipment, and arrange for removal to and placement in a special railroad car provided. Advisory services will be provided during the loading operation by the spent fuel shipping contractor, who also will take charge of the shipping container and its subsequent movements immediately following the loading operation of the cask on the freight car.

The Administration also proposes to furnish certain refueling and other equipment for nuclear work which the Contractor will operate and maintain as further described herein.

The Contractor will furnish a qualified nuclear staff to accomplish the nonconventional services that are determined to be necessary to keep the SAVANNAH in good operating condition or to assist in upgrading the plant, and trained personnel for operation of the facilities which make up the central servicing system. The Contractor will maintain close liaison and day to day working contacts with General Agent's staff, who will furnish technical guidance as necessary within the scope of authorized work. The Contractor is encouraged to request authorization for the loan of technical personnel from the General Agent's staff whenever this is deemed to be in the best interests of the program.

Plans, specifications, procedures, manuals, reports, and instructions, prepared by the reactor builder, the building yards, and other contractors, will be furnished for guidance and will be used by the Contractor whenever practicable in accomplishing the work outlined herein.

A. Conventional work

II. SERVICES

The Administration proposes to accomplish from time to time conventional maintenance and repairs and modifications to the non-nuclear portions of the Savannah under the provisions of this maintenance and servicing contract.

The Contractor may be required from time to time to furnish safe berthing for the ship at one or more of its yards, and to accommodate an undetermined visitor load, even though yard work is not being undertaken at the time. However, it is intended that requests for such services will be held to a minimum.

B. Nonconventional work

1. Modifications-Since the Savannah is considered an experimental ship, it may prove necessary to make significant modifications to the nuclear plant for the purpose of upgrading the plant. The modification program will vary from year to year depending on specific programs approved and authorized by the Administration.

2. Maintenance and Repair-It is proposed that maintenance will be undertaken periodically. Repairs will be accomplished as necessary to restore the plant to a sound condition. In general, it can be expected that maintenance and repairs will be performed on an annual and a voyage repair basis as soon as the Savannah becomes a developed ship. The Contractor when authorized will provide plans, specifications and procedures for and perform work of the following types: (a) the handling of radioactive components which require maintenance or repair, (b) the maintenance or repair of nuclear system components, and (c) accomplishment of emergency repairs on a world-wide basis.

3. Refueling-Refueling is expected to be scheduled on a triennial basis, preferably during an annual overhaul period. However, the initial refueling may be scheduled at an earlier date. The refueling operation may include the shifting of irradiated fuel to other positions elsewhere within the core as well as removal for storage and subsequent reprocessing or possible reinstallation. The fuel programming will be determined by the Administration. The Contractor when authorized will provide plans, specifications and procedures for, and perform work of the following types:

a. Storage of the refueling equipment.

b. Test of the refueling equipment.

c. Train and qualify personnel in the use of the refueling equipment.

d. Shipment of the refueling equipment to a refueling site other than the storage site.

e. Unloading and checking of equipment at the refueling site.

f. Operation of the refueling equipment at the refueling site.

g. Operation and use of special equipment to be provided by the Contractor and/or the Administration.

h. Decontamination of the refueling equipment.

i. Preparation for shipment and the shipment of the refueling equipment from the refueling site to the storage site as may be required.

4. Waste Handling and Transfer-Liquid, solid and gaseous wastes will be discharged from the Savannah periodically. The Contractor will receive these wastes, process and package them, and arrange for ultimate disposal, in accordance with applicable Federal, State, and local regulations in effect at the time. The Contractor when authorized will provide plans, specifications, and procedures for, and perform work of the following types:

a. Transfer of demineralizer resin from the SAVANNAH to the Nuclear Servicing Vessel or to a shore facility.

b. Transfer of contaminated water from the SAVANNAH to the Nuclear Servicing Vessel or to a shore facility.

c. Transfer of miscellaneous solid wastes such as filters and charcoal adsorption units to the Nuclear Servicing Vessel or to a shore facility.

d. Preparation of the wastes received and/or generated by the servicing facilities for shipment to a disposal site.

e. Shipment of wastes to an ultimate disposal site.

5. New and Irradiated Fuel and Other Reactor Internals-The Contractor when authorized will provide plans, specifications, and procedules for, and perform work of the following types:

a. Receipt, handling and storage of new fuel.

b. Handling and storage of irradiated fuel elements, control rods, and reactor internals.

c. Loading of irradiated fuel into shipping container furnished by others. d. Ultimate disposal of irradiated control rods and other reactor internals designated as scrap material.

e. Receipt, handling, storage and shipment of neutron and test sources and other miscellaneous radioactive items.

6. Radiation Safety-The Contractor will provide for radiation safety by forming a health physics organization within the central servicing system. The facilities provided in the Nuclear Servicing Vessel will be used to the maximum extent practicable to minimize duplication of facilities ashore. Health physics