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Contract CSD-720


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b. The Contractor shal! make frequent (not less than one tine per woek) measurements of the enclosed outside storage space in use. These mes. nents shall be verified by the Contracting Officer. At the end of each mor. a cumulative total of the measurements taken during that month shall be mad: and this cumulative total shall bo divided by the rumber of measuremento me during that month to arrive at an average 452ge ?actor. This average usage factor shall be the basis on which the Contrautor shall submit his invoice this item, provided however, that full consideration is given to the 33,000 square feet provided at no cost to the Governmort as stipulated in paraprar & above.


Item 6e $0.035 per square foot used per month.

The Contractor shall make frequent (r.ot less than one(1) tine pes" week) measurements of the secured warehouse storage area in use. These measurements shall be verified by the Contracting Officer. At the end of each month & cumulative total of the measurements taken during that month shall be made i this cumulative total shall be divided by the number of measurements made aur that month to arrive at an average usage factor. This average usage factori be the basis on wblob the Contractor shall submit his invoice for this item.

Item 1. No cost to the Government,
Item 8. $2.85 per direct labor hour.

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Item 9. $2.85 per dirkot labor hou.

Item 10. Reimbursement of preparation Por, inoluding associated service and transportation shall be in aocordance with Part II P. below.

B. In determining the direct labor how rate for the above items, the Contrastor shall not include any cost of purchasing department operatión. A prorated percentage of this cost is oonsidered under Part II E below.

C. There will be no payment to the Contractor for correction of discrepancies or defoots attributable to the Contrastor as providod in Clause 22 o: the General Provisions horeof.

D. I Direot labor to be charged to the United States Government under this contract shall be defined as the actual porking time of any producing worker applied direotly to the product (or services) oalled for herein. Produoirs workers shall include, but are not limited to working on-site supervisors, working chargehands, noohanios, machinists, welders, painters, pasons, electricians, carpenters, and helpors (or other similar olassifications employed directly on produotive work and approved in advance by the Contraoting Officer). The worldng time of apprentices and learners will not be acceptablo as direct labor in a higher ratio to total direot shop labor Independent of this contract and the only to the extent approved in advonoo by the Contraoting Officer.

Contract CSD-720


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Diroot labor will not include the working tine of noza-productive personnel including, but not limited to partners, officers, oentsot men, supervisors, expedi ters, non-working foremon , non-working overgebends, quella contro? personnel, olorks, typista, timekeepers, material handisrs, stooktobru employees, truok drivers, and receiving and ehipping omployece. The time of such personnel is inoluded in the overhead portion of the direct labor rate.

2.a. The contract price shall not include any amount on account of overting premiums or shirt premiums, excopt to the extent that they either (i) have boon approved in writing on behall of the Unitod States Government or (ii) are paid for work when prior approvdi is obtained from the Contracting Officers

(1) necessary to cope with emergencies such as those resulting from 200idents, natural disasters, breakdowns of production equipment, or occasional produotion bottlo-necks of al sporadio na ture;

(2) By Indirvot labor employees such as those performing duties in connootion with administration, protection, transportation, maintenanoo, standby plant pro tootion, operations of utilities or accountingi

(3) In the performano. of tests, industrial processes, laboratory proceduros, loading or unloading of transportation media, and operations in 11ight or arloat, which are continuous in nature and cannot reasonably be inCorrupted or othorwiso completed, or

(4) whion will result in lower overall cost to the United States Govornment.

2.0. Nothwithstanding the provisions of subparagraphs (2) and (3) above, tho Con traotor shall not invoice for indireot labor, the time of suob personnel boing inoluded in the overhead portion of the diroot labor rates specithed.

3.1. As usod horen the allowable costs of diroot materials shall include the costs of all items purchased, manutsotured, or facrioated which enter directly into the ond produot or which are used. or con sumed direotly on the vediole or component parts thereof. All other materials such as office supplies, sweeping compounds and equipment, personnel washroom supplies, lighting suppiles, and any other Janitorial-type materials which are not sotually used directly on the vohiole or its components shall be considered indirect materials.

2. In computing material coste, consideration will be given to reasonable overruns, spoilago, and defective work. Withdrawal, from the Contractor'o stook Mil de charged in accordanoo with the prioing system used by the Contractor, provided suod systom is approved by the Contracting Officer, and is in aocordanoe with oonsistently followed, sound accounting practicos. Since none of the cost of purobasing department operation 18 inoluded in the direct labor rate, materials and parts drawn from company, stook for use on this contraot will be invoiced at the Contractor's inventory card prioe, loss any taxes and duties as applicable plus a proratod share of the Contractor's purchasing dept. overhead.

Contract CSD-720


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For the purposes of this contract, it is agreed that this prozated ahsre gia!! be 12% of the inventory card price adjusted by deduction of taxog erini emas. The inventory card prices 18 composed o? tha avsrage purchase price, plus 01rect expenses such as transportation costs, insurance fees, taxes, durées end handling charges, and the Contractor warranys that no profit is contained in either the inventory card prices or the percentage specified above. In the event that an audit by the United States Governdent personnel should revea] that a profit has been realized by the Contractor, the said profit shall be returned to the United States Government. Those parts manufactured by the Contraotor will not be oonsidered as withdrawals from atook as defined by this paragraph.

3. Contraotor may invoice for any item purchased under the provisions of this contraot or any order issued thereunder as soon as the items have beer received by the Contraotor and/or accepted by the Government.

7. The preparation for, inoluding 298001ated services, and transportation of supplies and equipment under the provisions of this contract may be Government provided or, 11 it is in the best interest of the Government, the Contractor may be required to provide all or any part of the proparation for, including associated services and transportation required. If the Contraotor la required to provide those services, an order pursuant to Part IV, entitlod "ORDERS" shall

į made by the Contraoting Officer, or his authorized reprosentative and will bo made in writing and will contain (1) looation of equipment and/or supplies (11) nomenolature of each iten, (111) weight of sech item (iv) destination, (v) required date items are to arrive at destination. The contraotor will'immediately obtain a minimum of three (3) bide from Froight Forwarding Agents, in writing, and award shall be made to the Freight Forwarding Agent quoting the lowest overall price consistent with the required delivery date shown in the shipping notifioation. No award shall be made to a Freight Forwarding Agent without first obtaining written approval of the Contracting Offlcor. If the Contractor desires to provide his own transportation in lieu of contracting with a Freight Forwarding Agent, he may do so subject to the approval 1 » writing by the Contraoting Officer and at a price no higher than the lowest bid from a minimum of three (3) bids from Freight Forwarding Agents. The Contracting Officer has the authority to waive tho requirements for obte ining & minimum of three (3) bids from Freight Forwarding Agents in cason whomo exigenoy of the situation prevent solicitation of three (3) tids.


"Xotwithstanding the provisions of Clause 4 of the Qeno:2] Provisions of this contrast entitled "PATIENTS", the United States Jovernment may propose payment, in whole or in part, in United States Surplue commodities. This pico.Pyodes a prior arrangomont betweon the contractor and a United Statoa firra pursuent to wb1db suon firm agroos, as principai, to enter into a proper contract with the Commodity Credit Corporation, a Pederolay Inc crporated agency of the United States Government (horeinaf tor referred to as "CCC") for the export of surius agrioultural oommodities.

Contract CSD-720


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In the event the aforementioned prior arrangemert 18 consummated, the contractor agrees, pursuant to the clause of the contract entitled "ASSIGNMENT OF CLAIMS, and notwithstanding any language to the contrary contained therein, to furnish an irrevocable assignment to the CCC of all the moneys due and to beoome due under this contract.


Alter satisfactory completion of performance totaling $150,000.00 under this contract, AID may, at its option, enter into negotiations with the supplier with respoot to an increase in the amount of the guaranteed minimum. ' Should agreement be reached, implomontation shall be subject to (1) a corresponding increase in the then existing barter oontraot between ccc and the barter contractor, or (2) a barter contraot between CCC and a new barter contractor reflecting the increase in the amount of the guaranteed minimum agreed upon.


(a) The Contraotor agrees to furnish to the Government, when ordered, the supplies or services set forth in the Schedule up to and inoluding the quantity designated in the Sobedule as the maximum quantity." The Government agrees to order the quantity of such supplies and services designated in the schedule as the "minimum quantity". Suoh supplies or services will be furnished at the prices set forth in the schedule.

(b) Delivery Orders for supplies or services shall be 188ued by the contraoting Officer in writing, dated, and numbered. They shall set forth (1) the supplies or servicos doing ordered, (11) the quantit bas to be furnished, (111) delivery or performance datos, (iv) place of delivery or performance, and (v) paoking and shipping instructions, if any. Amendments to delivery orders may be issued by the Contracting 01ficer by written change order. Each delivery order or chango order which inoreases the dollar amount, shall contain a citation of funds from which payment for the supplies or services ordered shall be made.

(o) the minimum amount of supplies or services to be ordered by the United States Government during the period of this contraot 18 $200,000.00 whion 18 hereby obligated.

(a) The estimated maximum amount of supplies or services to be furnished by the Con traotor during the period of this contraot 18 $1,500,000.00.


Upon receipt of an order, the Contractor shall quote a fixed number of hours and a delivery Bohodule for the work called for, but shall not proceed with the work until the hours and schedule have been approved by the Contraoting Officer, provided however, whenever the Contracting Officer determines that it is in the best interest of the United States Government to not dolay performance of the work until hours and sohodulo have been negotiated, he may specify in the Order that ho con traotor is authorized to proceed forthwith.

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Page 8 of 11 Within thirty (30) days after receipt of such order and in every case prior to completion of 50% of the work called for the parties shall negotiate the he:vs and delivery schedule, and the order shall be amended accordingly. Failure to agree upon a reasonable number of hours and delivery schedule shall be considered a "dispute concerning a question of faoth within the moaning of the olause of this contraot entitled "DISPUTES".


The Contraotor warrants that the prices of the items set forth berein do not exooed those charged by the Contraotor to any othor oustomer purohasing the same items in like or comparable quantities. Part VII. OFFICE SPACES

! Contraotor shall make available to the Contraoting Onioer a partitioned office space of approximately 180 square foot in the immediate vioinity of the Produotion area. The cost of thi: office space was considered in the negotiated prices and thorofore 18 furnished at no additional cost to the Government. Part VIII. STORAGE:

In the utilization of secured warehouse storage area, the Contractor shall make full use of bins, racks, pallets and other warehousing storage Itors of equipment that will provide egonomio utilization of space. Standard commerolal warehousing practices will be followed. Part IX. PRICE CHANGES

The Contractor represents that the prices set forth in this con traot are based on (wage rates) established by the Government of Belgium and warrants that suon pricos do not inolude any contingency allowance to covor possible Increase thereof. It suob (wage rates) are changed by that Government, the prices horein may be revised to the extent that the oontraotor's sotual costs of performing this contract aro, as a rosult of the change, (1:) nooossarily Inoroased or (ii) so tually reduced.' Bither party may submit a written request for much price revision to the other party within 30 days after the oflective date of such change or within suoh further time as the Contracting Officer mey allow. Suob a request by the contraotor shall stato the amount of such change and show in detail the amount by whioh oontract prices are claimed to be affected. The parties shall then promptly negotiate to establish the amount, 12 any, by which contract prices shall be revised. The oontractor shall make available to the Contracting Officer at all reasonable timor its books and records pertaining to the original pricas. and performanos of the contraot. If the parties are unable to agree upon the prioo rovision, the Contraoting Officer shall nako and transmit to the Contractor, & written determination of the revision 14 any, whiob is to be mado. Any prion rovision negotiated by the parties, or determined by the Contracting Officer, pursuant to this blauso shall be set forth in an amendment to this contraot. No

ing in this olauso shall excuse the contrastor fto proceeding with the convract in accordance with its terms.

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