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CONTRACT CLAUSES

(2) When the Contractor authorizes a subcontractor to use the modernized or replacement equipment, he shall require the subcontractor to maintain records, to make them and additional information available to the Contracting Officer, and to file four (4) copies of DD Form 1651, in the manner prescribed in (1) above.

(c) Records shall generally be acceptable if they are maintained for the equipment under established accounting practices and permit a fair estimation of the net cost savings realized. Net cost savings realized shall be determined by a comparison of the Contractor's cost experience in the operation of the equipment before and after modernization. (d) Amounts due the Government under this clause shall be returned by the Contractor, as directed by the Administrative Contracting Officer by:

(i) credits to, or adjustment of the prices of, the related contracts, subcontracts, or purchase orders benefiting from the use of the modernized or replacement equipment; or

(ii) payment to the Government through the Contracting Officer having cognizance of the Government production and research property; or

(iii) such other means as may be mutually agreed to.

7.705-18 through 7.705-29 [Reserved]

7.705-30 Preference for United States Flag Air Carriers. In accordance with 1.336-1(b), insert the clause in 7.104-95.

7.705-31 Use of Small Business Concerns as Subcontractors. In accordance with the provisions of 13.413-1(f) insert the following clause:

USE OF SMALL BUSINESS CONCERNS AS SUBCONTRACTORS (OCTOBER 1977)

Items of work which have been identified by the Contracting Officer as being capable of performance by small business concerns are listed in the Schedule. The Contractor, in addition to his commitment under the clause, “Utilization of Small Business Concerns", agrees that, to the extent such items of work are to be performed by subcontract, he shall place such subcontracts with responsible small business concerns. In the event that responsible small business concerns are not available or are not able to perform the work within the time required or at a fair and reasonable price, the Contractor, with the prior written concurrence of the Contracting Officer, may place such subcontracts with other than small business concerns.

7.706 Facilities Use Contracts With Nonprofit Educational Institutions. As an alternative to the clauses in 7.704, the following clauses, in their entirety, may be used in any facilities use contract with nonprofit educational institutions.

7.706-1 Purpose.

PURPOSE (NOVEMBER 1974)

This Facilities Use Contract is designed specifically for nonprofit educational institutions to set forth provisions for the use and accountability of Government facilities furnished or acquired under related procurement contracts identified elsewhere herein. There are no funds provided under this contract. Costs incurred for acquisition, maintenance, repair or replacement, disposition or for other purposes in connection with the facilities accountable hereunder will be subject to the reimbursement provisions of related procurement contracts; provided, however, that should no procurement contract be available for reimbursement of such costs, this contract may be appropriately modified to provide for such reimbursement. 7.706-2 Accountable Facilities.

ACCOUNTABLE FACILITIES (NOVEMBER 1974)

The facilities accountable under this contract are identified in the Contractor's property control system and include those facilities furnished or acquired under related procurement contracts issued by the purchasing offices which are specifically named in the Schedule hereto.

7.706-3 Definitions. Insert the clause set forth in 7.702-1.

Additional definitions may be included in such clause provided they are not inconsistent with such clause or this Regulation.

7.706-4 Use of Government Facilities.

USE OF GOVERNMENT FACILITIES (NOVEMBER 1974)

The Contractor may use the Facilities without charge in the performance of:

(i) prime contracts with the Government which specifically authorize use without charge,

7.705-18

CFR TITLE 41 CHAPTER 18

CLAUSES FOR FACILITIES CONTRACTS

(ii) subcontracts held by the Contractor under Government prime contracts or subcontracts of any tier thereunder if the Contracting Officer having cognizance of the prime contract concerned has authorized use without charge by approving a subcontract specifically authorizing such use or has otherwise authorized such use in writing,

(iii) other work with respect to which the Contracting Officer has authorized use without charge in writing.

7.706-5 Allowable Costs and Payments.

ALLOWABLE COSTS AND PAYMENTS (NOVEMBER 1974)

Except as otherwise specifically provided in this contract or any related procurement contract, the failure of this contract to provide for reimbursement shall not preclude the Contractor from including, as part of the price or cost under any other Government contract or subcontract, an allocable portion of the costs incurred in the performance of any work, duty, or obligation under this contract which are not reimbursable hereunder.

7.706-6 Examination of Records by Comptroller General. Insert the clause set forth in 7.104-15. 7.706-7 Location of the Facilities.

LOCATION OF THE FACILITIES (NOVEMBER 1974)

The Contractor may use the Facilities at any of the locations approved by the Contracting Officer. In granting this approval, the Contracting Officer may prescribe such terms and conditions as he may deem necessary for the protection of the Government's interest in the Facilities involved. Notwithstanding any inconsistency with the provisions of this contract, such terms and conditions shall prevail.

7.706-8 Maintenance. Insert the clause set forth in 7.702-14. 7.706-9 Inspection. Insert the clause set forth in 7.702-6. 7.706-10 Title.

TITLE (APRIL 1975)

(a) Title to all facilities furnished by the Government shall remain in the Government. Title to all Facilities purchased by the Contractor, but the cost of which the Contractor is to be reimbursed as a direct item of cost under a related procurement contract, shall pass to and vest in the Government upon delivery of such Facilities by the vendor; provided, however, that whenever the Contractor shall have obtained the prior approval of the Contracting Officer for the acquisition of any item of equipment having a unit cost of less than $1,000, title to such equipment shall vest in the Contractor. Title to other Facilities, the cost of which is to be reimbursed to the Contractor under a related procurement contract, shall pass to and vest in the Government upon (i) issuance for use of such Facilities in the performance of a related procurement contract, or (ii) commencement or processing or use of such Facilities in the performance of a related procurement contract, or (iii) reimbursement of the cost thereof by the Government, whichever first occurs. All Government-furnished Facilities, together with all Facilities acquired by the Contractor, title to which vests in the Government under this paragraph, are subject to the provisions of this clause and are hereinafter collectively referred to as "Government Facilities."

(b) Title to the Government Facilities shall not be affected by the incorporation or attachment thereof to any Facilities not owned by the Government, nor shall such Government Facilities, or any part thereof, be or become a fixture or lose its identity as personalty by reason of affixation to any realty.

(c) Notwithstanding the provisions of subparagraph (a) above relative to title, and in accordance with the criteria set forth in NASA PR 13.350-4, the Contracting Officer may at any time during the term of this contract, or upon completion or termination, transfer title to Contractor-acquired equipment to the Contractor upon such terms and conditions as may be agreed upon; provided, that the Contractor shall not under any Government contract, or subcontract thereunder, charge for any depreciation, amortization or use of such equipment as is donated under this paragraph. Upon the transfer of title to equipment under this paragraph, such equipment shall cease to be Government property. The Contractor shall furnish the Contracting Officer a list of all such equipment where title is vested in the Contractor within ten (10) days following the end of the calendar quarter in which the transfer of title occurs.

7.706-11 Access. Insert the clause set forth in 7.702-16.

7.706-12 Property Control. Insert the clause set forth in 7.702-17.

7.706-13 Representations and Warranties. Insert the clause set forth in 7.702-5. 7.706-14 Liability for the Facilities. Insert the clause set forth in 7.702-18. 7.706-15 Termination of the Use of the Facilities.

NASA PROCUREMENT REGULATION

7.706-15

CONTRACT CLAUSES

TERMINATION OF THE USE OF THE FACILITIES (NOVEMBER 1974)

(a) Subject to the provisions of the clause of this contract entitled, “Disposition of the Facilities", the Contractor may at any time, upon written notice to the Contracting Officer, terminate his authority to use any or all of the Facilites. Termination under this paragraph (a) shall not relieve the Contractor of any of his obligations or liabilities under any related procurement contract or subcontract affected thereby.

(b) The Contracting Officer may at any time, upon written notice, terminate or limit the Contractor's authority to use any or all of the Facilities. Except as may otherwise be provided in this contract or any related procurement contract, appropriate equitable adjustment may be made in any related procurement contract of the Contractor which so provides and which is affected by any such notice.

(c) Upon completion of the related procurement contract, or at any time during the life of the related procurement contract when the facilities are no longer required, it is the responsibility of the Contractor to notify the Contracting Officer in order that appropriate disposal may be made.

7.706-16 Period of This Contract. Insert the clause set forth in 7.702-25. 7.706-17 Disposition of the Facilities. Insert the clause set forth in 7.702-26. 7.706-18 Disputes. Insert the clause set forth in 7.103-12.

7.706-19 Officials Not To Benefit. Insert the clause set forth in 7.103–19.

7.706-20 Financial Reporting of Government-Owned/Contractor-Held Property. Insert the clause set forth in 7.104-54.

7.706-21 Covenant Against Contingent Fees. Insert the clause set forth in 7.103–20.

7.706-22 Convict Labor. In accordance with the requirements of Part 12, Subpart 2, insert the clause set forth in 12.203.

7.706-23 Equal Opportunity. In accordance with 12.804, insert the appropriate clause set forth therein.

7.706-24 Contract Work Hours Standards Act-Overtime Compensation. In accordance with 7.103-16 insert the clause set forth in 12.303–1. Note the prefatory language required by 12.303-2 for use in contracts with a state or political subdivisions thereof.

7.706-25 Supersedure.

SUPERSEDURE (NOVEMBER 1974)

(a) Facilities heretofore provided to the Contractor pursuant to the contracts specified in the Schedule shall become subject to the terms of this contract upon its effective date. The terms of the contract by which such Facilities may have been provided to the Contractor are hereby superseded with respect to such Facilities, except for rights and obligations which may have accrued under such other contract prior to the effective date hereof.

(b) Each item of Facilities hereafter provided to the Contractor under any related procurement contract shall become subject to the terms of this contract upon the completion of its construction, acquisition, and installation, or upon its availability for use, whichever first occurs, except as otherwise provided in the contract or other document by which such Facilities are provided to the Contractor.

7.706-26 Clean Air and Water. Insert the clause set forth in 1.2302-2.

7.706-27 Notice of Intent to Disallow or Not Recognize Costs. Insert the clause in 7.203-30.

7.706-16

CFR TITLE 41 CHAPTER 18

Subpart 8-[Reserved]

NASA PROCUREMENT REGULATION

Subpart 9-Time and Material and Labor Hour Contracts

7.900 Scope of Subpart. This Subpart sets forth uniform contract clauses for use in time and material and labor-hour types of contracts as described in 3.406-1 and 3.406-2.

7.901 Required Clauses. The following clauses shall be inserted in all time and material contracts and labor-hour contracts. In labor hour contracts, the provisions governing the reimbursement of material costs may be deleted.

7.901-1 Definitions. Insert the contract clause set forth in 7.103-1. Additional definitions may be included in such clause provided they are not inconsistent with such clause or the provisions of this Regulation.

7.901-2 Changes.

CHANGES (JUNE 1966)

The Contracting Officer may at any time, by a written order, and without notice to the sureties, if any, make changes, within the general scope of this contract, in any one or more of the following: (i) drawings, designs, or specifications; (ii) method of shipment or packing; (iii) place of delivery; and (iv) the amount of Government-furnished property. If any such change requires an increase or decrease in any hourly rate or in the ceiling price provided for in this contract, or in the time required for the performance of any part of the work under this contract, whether changed or not changed by any such order, or otherwise affects any other provision of this contract, an equitable adjustment shall be made in the (i) ceiling price, (ii) hourly rates, (iii) delivery schedule, and (iv) in such other provisions of the contract as may be so affected, and the contract shall be modified in writing accordingly. Any claim by the Contractor for adjustment under this clause must be asserted within thirty (30) days from the date of receipt by the Contractor of the notification of change; provided, however, that the Contracting Officer, if he decides that the facts justify such action, may receive and act upon any such claim asserted at any time prior to final payment under this contract. Failure to agree to any adjustment shall be a dispute concerning a question of fact within the meaning of the "Disputes" clause of this contract. However, nothing in this clause shall excuse the Contractor from proceeding with the contract as changed.

In the foregoing clause, the period of "thirty (30) days" within which any claim for adjustment must be asserted may be increased to a period of not more than "sixty (60) days." In accordance with 10 U.S.C. 2306(f), prior to the pricing of any contract change or modification that is expected to exceed $500,000, except where the price is based on adequate price competition, | established catalog or market prices of commercial items sold in substantial quantities to the general public, or prices set by law or regulation, the contracting officer shall require the contractor to furnish a Certificate of Current Cost or Pricing Data (see 3.807-6) and shall assure that the contract includes or is modified to include a Defective Pricing Data clause (see 7.104-28). 7.901-3 Excusable Delays. Insert the clause set forth in 8.708. 7.901-4 Termination.

TERMINATION (ecember 1921)

(a) The performance of work under the contract may be terminated by the Government in accordance with this clause in whole, or from time to time, in part:

(i) whenever the Contractor shall default in performance of this contract in accordance with its terms (including in the term "default" any such failure by the Contractor to make progress in the prosecution of the work hereunder as endangers such performance), and shall fail to cure such default within a period of ten (10) days (or such longer periods as the Contracting Officer may allow) after receipt from the Contracting Officer of a notice specifying the default; or (ii) whenever for any reason the Contracting Officer shall determine that such termination is in the best interest of the Government.

Any such termination shall be effected by delivery to the Contractor of a Notice of Termination specifying whether termination is for the default of the Contractor or for the convenience of the Government, the extent to which performance of work under the contract is terminated, and the date upon which such termination becomes effective. If, after notice of termination of this contract for default under (i) above, it is determined for any reason that the Contractor was not in default pursuant to (i), or that the Contractor's failure to perform or to make progress in performance is due to causes beyond the control and without the fault or negligence of the Contractor pursuant to the provisions of the clause of this contract relating to excusable delays, the Notice of Termination shall be deemed to have been issued under (ii), above, and the rights and obligations of the parties hereto shall in such event be governed accordingly.

(b) After receipt of a Notice of Termination and except as otherwise directed by the Contracting Officer, the Contractor shall:

(i) stop work under the contract on the date and to the extent specified in the Notice of Termination;

NASA PROCUREMENT REGULATION

7.901-4

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