DAC #76-47 15 DECEMBER 1983 CONTRACT CLAUSES AND SOLICITATION PROVISIONS (5) The Contractor shall (i) insert in each price redetermination or incentive price revision subcontract hereunder the substance of this "Limitation on Payments" provision, including this subparagraph (5), modified to omit mention of the Government and reflect the position of the Contractor as purchaser and of the subcontractor as vendor, and to omit that portion of subparagraph (3) relating to tax credits, and (ii) include in each cost-reimbursement type subcontract hereunder a requirement that each price redetermination and incentive price revision subcontract thereunder will contain the substance of this “Limitation on Payments" provision, including this subparagraph (5), modified as outlined in (i) above. (g) Disagreements. If the Contractor and the Contracting Officer fail to agree upon redetermined prices within sixty (60)** (See footnotes at end of clause) days after the date on which the data required by (b) above is to be filed, or within such further time as may be agreed upon by the parties, the failure to agree upon redetermined prices shall be deemed to be a dispute concerning a question of fact within the meaning of the clause of this contract entitled "Disputes," and the Contracting Officer shall promptly issue a decision thereunder. For the purpose of paragraphs (d), (e), and (f) above, and pending final settlement of the disagreement on appeal, or by failure to appeal, or by agreement, such a decision shall be treated as an executed contract modification. (h) Termination. If this contract is terminated prior to price redetermination, prices shall be established pursuant to this clause for completed supplies and services which are not terminated. All other elements of the termination shall be resolved pursuant to other applicable provisions of this contract. (End of clause) *Insert, in contracts of the Department of the Navy, the words: "and the office or offices designated in the contract to make payments thereunder." **This period may be varied by the parties at the time of negotiating the contract. 7-110 Simplified Contract Required Clauses. The clauses in this paragraph shall be used only by contracting offices authorized by their Department to use the test procedures of the DoD Contract Simplification Program. 7-110.1 The following clause shall be inserted in all simplified contracts for supplies. SIMPLIFIED SUPPLY CONTRACT REQUIRED CLAUSES (1983 DEC) The General Provisions set forth below by reference are incorporated herein with the same force and effect as if set forth in full. (a) Definitions (1979 MAR), 7-103.1 (b) Changes (1958 JAN), 7-103.2 (c) Variation in Quantity (1949 JUL), 7-103.4 (d) Inspection (1982 NOV), 7-103.5(a) (e) Title and Risk of Loss (1968 JUN), 7-103.6 (f) Payments (1958 JAN), 7-103.7 (g) Assignment of Claims (1962 FEB), 7-103.8 (h) Federal, State and Local Taxes (1971 NOV), 7-103.10(a). (i) Default (1969 AUG), 7-103.11 (j) Disputes (1983 FEB), 7-103.12 (a) 7-110.1 ARMED SERVICES PROCUREMENT REGULATION DAC #76-47 15 DECEMBER 1983 CONTRACT CLAUSES AND SOLICITATION PROVISIONS (k) Discounts (1968 JUN), 7-103.14 (1) Walsh-Healey Public Contracts Act (1958 JAN), 7-103.17 (m) Equal Opportunity (1978 SEP), 7-103.18(a) (n) Officials Not to Benefit (1949 JUL), 7-103.19 (o) Covenant Against Contingent Fees (1958 JAN), 7-103.20 (p) Termination for Convenience of the Government (1974 OCT), 7-103.21(b) (q) Responsibility for Inspection (1968 SEP), 7-103.24 (r) Affirmative Action for Disabled Veterans and Veterans of the Vietnam Era (1983 AUG), 7-103.27 (s) Affirmative Action for Handicapped Workers (1976 MAY), 7-103.28 (t) Invoices (1982 OCT), 7-103.30 (u) Buy American Act and Balance of Payments Program (1980 OCT), 7-104.3 (v) Notice to the Government of Labor Disputes (1958 SEP), 7-104.4 (w) Utilization of Small Business and Small DisAdvantaged Business Concerns (1980 AUG), 7-104.14(a) (x) Gratuities (1952 MAR), 7-104.16 (y) Convict Labor (1975 OCT), 7-104.17 (z) Priorities, Allocations, and Allotments (1975 OCT), 7-104.18 (aa) Utilization of Labor Surplus Area Concerns (1981 MAY), 7-104.20(a) (ab) Interest (1983 FEB), 7-104.39 (ac) New Material (1965 JAN), 7-104.48 (ad) Government Surplus (1965 JAN), 7-104.49 (End of clause) 7-110.1 ARMED SERVICES PROCUREMENT REGULATION CONTRACT CLAUSES AND SOLICITATION PROVISIONS 7-200 Scope of Part. This Part sets forth uniform contract clauses for use in cost-reimbursement type supply contracts as defined in 7-202. 7-201 Reserved. 7-202 Applicability. As used in this Part, the term "cost-reimbursement type supply contract" shall mean any contract (other than a letter contract, notice of award; or a supplemental agreement to a contract which does not effect a new procurement) entered into on a cost reimbursement basis as covered in 3-405 for supplies other than (i) the construction, alteration or repair of buildings, bridges, roads, or other kinds of real property; (ii) experimental, developmental, or research work; (iii) facilities to be provided by the Government under a "facilities contract" as defined in 7-701 and Section XIII of this Regulation or (iv) general contracts for communication services and facilities. 7-203 Required Clauses. The following clauses shall be inserted in all costreimbursement type supply contracts. 7-203.1 Definitions. Insert the clause in 7-103.1. Additional definitions may be included in such clause provided they are not inconsistent with the provisions of this Regulation. 7-203.2 Changes. CHANGES (1967 APP) (a) 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, where supplies to be furnished are to be specially manufactured for the Government in accordance therewith; (ii) method of shipment or packing; and (iii) place of delivery. (b) If any such change causes an increase or decrease in the estimated cost of, or 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: (i) in the estimated cost or delivery schedule, or both; (ii) in the amount of any fixed fee to be paid to the Contractor; and (iii) 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 clause of this contract entitled "Disputes." However, except as provided in paragraph (c) below, nothing in this clause shall excuse the Contractor from proceeding with the contract as changed. (c) Notwithstanding the provisions of paragraphs (a) and (b) above, the estimated cost of this contract and, if this contract is incrementally funded, the funds allotted for the performance thereof, shall not be increased or deemed to be increased except by specific written modification of the contract indicating the new contract estimated cost and, if this contract is incrementally funded, the new amount allotted to the contract. Until such modification is made, the Contractor shall not be obligated to continue performance or incur costs beyond the point established in the clause of this contract entitled “Limitation of Cost" or "Limitation of Funds." (End of clause) 7-203.2 ARMED SERVICES PROCUREMENT REGULATION 33-103 0-84-20 CONTRACT CLAUSES AND SOLICITATION PROVISIONS In the foregoing clause, the period of "thirty (30) days" within which any claim for adjustment must be asserted may be varied in accordance with Departmental procedures. In accordance with 10 U.S.C. 2306(f), prior to the pricing of any change order 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 7-104.29). 7-203.3 Limitation of Cost or Funds. (a) The following clause shall be inserted in all fully funded cost-reimbursement type supply contracts. LIMITATION OF COST (1966 OCT) (a) It is estimated that the total cost to the Government for the performance of this contract, exclusive of any fee, will not exceed the estimated cost set forth in the Schedule, and the Contractor agrees to use his best efforts to perform the work specified in the Schedule and all obligations under this contract within such estimated cost. If, at any time, the Contractor has reason to believe that the costs which he expects to incur in the performance of this contract in the next succeeding sixty (60) days, when added to all costs previously incurred, will exceed seventy-five percent (75%) of the estimated cost then set forth in the Schedule, or if, at any time, the Contractor has reason to believe that the total cost to the Government for the performance of this contract, exclusive of any fee, will be greater or substantially less than the then estimated cost hereof, the Contractor shall notify the Contracting Officer in writing to that effect, giving his revised estimate of such total cost for the performance of this contract. (b) Except as required by other provisions of this contract specifically citing and stated to be an exception from this clause, the Government shall not be obligated to reimburse the Contractor for costs incurred in excess of the estimated cost set forth in the Schedule, and the Contractor shall not be obligated to continue performance under the contract (including actions under the Termination clause) or otherwise to incur costs in excess of the estimated cost set forth in the Schedule, unless and until the Contracting Officer shall have notified the Contractor in writing that such estimated cost has been increased and shall have specified in such notice a revised estimated cost which shall thereupon constitute the estimated cost of performance of this contract. No notice, communication or representation in any other form or from any person other than the Contracting Officer shall affect the estimated cost of this contract. In the absence of the specified notice, the Government shall not be obligated to reimburse the Contractor for any costs in excess of the estimated cost set forth in the Schedule, whether those excess costs were incurred during the course of the contract or as a result of termination. When and to the extent that the estimated cost set forth in the Schedule has been increased, any costs incurred by the Contractor in excess of the estimated cost prior to such increase shall be allowable to the same extent as if such costs had been incurred after the increase; unless the Contracting Officer issues a termination or other notice and directs that the increase is solely for the purpose of covering termination or other specified expenses. (c) Change orders issued pursuant to the Changes clause of this contract shall not be considered an authorization to the Contractor to exceed the estimated cost set forth in the Schedule in the absence of a statement in the change order, or other contract modification, increasing the estimated cost. (d) In the event this contract is terminated or the estimated cost not increased, the Government and the Contractor shall negotiate an equitable distribution of all property produced or purchased under the contract based upon the share of costs incurred by each. (End of clause) 7-203.3 ARMED SERVICES PROCUREMENT REGULATION CONTRACT CLAUSES AND SOLICITATION PROVISIONS (b) The following clause shall be used in all cost-reimbursement type supply contracts which are to be incrementally funded. LIMITATION OF FUNDS (1966 OCT) (a) It is estimated that the cost to the Government for the performance of this contract will not exceed the estimated cost set forth in the Schedule, and the Contractor agrees to use his best efforts to perform the work specified in the Schedule and all obligations under this contract within such estimated cost. (b) The amount presently available for payment and allotted to this contract, the items covered thereby, and the period of performance which it is estimated the allotted amount will cover, are specified in the Schedule. It is contemplated that from time to time additional funds will be allotted to this contract up to the full estimated cost set forth in the Schedule, exclusive of any fee. The Contractor agrees to perform or have performed work on this contract up to the point at which the total amount paid and payable by the Government pursuant to the terms of this contract approximates but does not exceed the total actually allotted to the contract. (c) If at any time the Contractor has reason to believe that the costs which he expects to incur in the performance of this contract in the next succeeding sixty (60) days, when added to all costs previously incurred, will exceed seventy-five percent (75%) of the total amount then allotted to the contract, the Contractor shall notify the Contracting Officer in writing to that effect. The notice shall state the estimated amount of additional funds required to continue performance for the period set forth in the Schedule. Sixty (60) days prior to the end of the period specified in the Schedule, the Contractor will advise the Contracting Officer in writing as to the estimated amount of additional funds, if any, that will be required for the timely performance of the work under the contract or for such further period as may be specified in the Schedule or otherwise agreed to by the parties. If, after such notification additional funds are not allotted by the end of the period set forth in the Schedule or an agreed date substituted therefor, the Contracting Officer will, upon written request by the Contractor, terminate this contract pursuant to the provisions of the Termination clause on such date. If the Contractor, in the exercise of his reasonable judgment, estimates that the funds available will allow him to continue to discharge his obligations hereunder for a period extending beyond such date, he shall specify the later date in his request, and the Contracting Officer, in his discretion, may terminate this contract on that later date. (d) Except as required by other provisions of this contract specifically citing and stated to be an exception from this clause, the Government shall not be obligated to reimburse the Contractor for costs incurred in excess of the total amount from time to time allotted to the contract, and the Contractor shall not be obligated to continue performance under the contract (including actions under the Termination clause) or otherwise to incur costs in excess of the amount allotted to the contract, unless and until the Contracting Officer has notified the Contractor in writing that such allotment amount has been increased and has specified in such notice an increased amount constituting the total amount then allotted to the contract. To the extent the amount allotted exceeds the estimated cost set forth in the Schedule, such estimated cost shall be correspondingly increased. No notice, communication or representation in any other form or from any person other than the Contracting Officer shall affect the amount allotted to this contract. In the absence of the specified notice, the Government shall not be obligated to reimburse the Contractor for any costs in excess of the total amount then allotted to the contract, whether those excess costs were incurred during the course of the contract or as a result of termination. When and to the extent that the amount allotted to the contract has been increased, any costs incurred by the Contractor in excess of the amount previously allotted shall be allowable to the same extent as if such costs had been incurred after such increase in the amount allotted; unless the Contracting Officer issues a termination or other notice and directs that the increase is solely for the purpose of covering termination or other specified expenses. (e) Change orders issued pursuant to the Changes clause of this contract shall not be considered an authorization to the Contractor to exceed the amount allotted in the Schedule in the absence of a statement in the change order, or other contractual modification, increasing the amount allotted. 7-203.3 ARMED SERVICES PROCUREMENT REGULATION |