CONTRACT CLAUSES AND SOLICITATION PROVISIONS Part 1—Fixed-Price Supply Contracts 7-100 Scope of Part. This part sets forth uniform contract clauses for use in fixed-price supply contracts as defined in 7-101. 7-101 Applicability. As used throughout this Part, the term “fixed-price supply contract" shall mean any contract (i) entered into either by formal advertising or by negotiation other than (A) purchase orders (but see 3-608.2(b)). (B) letter contracts, (C) notices of award, (D) general contracts for communication services and facilities and (E) supplemental agreements to contracts or purchase orders, which do not effect new procurement; (ii) at a fixed price (with or without provision for price redetermination, economic price adjustment, or other form of price revision as covered in 3-404; and (iii) for supplies other than (A) the construction, alteration, or repair of buildings, bridges, roads, or other kinds of real property, (B) experimental, developmental, or research work, or (C) facilities to be provided by the Government under a facilities contract as defined in Section XIII. However, there are supply contracts in which performance involves cost-reimbursement, construction, research and development, or other special factors. In such cases, see the particular Parts containing additional applicable clauses. 7-102 Contracts Subject in Part to Incentive Price Revision. When a contract is partly a firm fixed-price contract and partly a fixed-price incentive contract, the clauses required for both types of contracts shall be included. When any provision is applicable only to firm fixed-price items, or only to items subject to incentive price revision, such provision shall be so labeled. 7-103 Required Clauses. The following clauses shall be inserted in all fixedprice supply contracts. As used throughout this contract, the following terms shall have the meanings set forth below: (a) The term "Head of the Agency" or "Secretary" means the Secretary, the Under Secretary. any Assistant Secretary, or any other head or assistant head of the executive or military depart. ment or other Federal agency: and the term "his duly authorized representative" means any person or persons or board (other than the Contracting Officer) authorized to act for the Head of the Agency or the Secretary. (b) The term "Contracting Officer" means the person executing this contract on behalf of the Government, and any other officer or civilian employee who is a properly designated Contracting Officer; and the term includes, except as otherwise provided in this contract, the authorized representative of a Contracting Officer acting within the limits of his authority. (c) Except as otherwise provided in this contract, the term "subcontract" includes but is not limited to purchase orders, changes and/or modifications thereto. (End of Clause) Additional definitions may be included provided they are not inconsistent with the foregoing clause or the provisions of this Regulation. 7-103.1 ARMED SERVICES PROCUREMENT REGULATION CONTRACT CLAUSES AND SOLICITATION PROVISIONS 7-103.2 Changes. CHANGES (1958 JAN) The Contracting Officer may at any time, by a written order, and without notice to the sureties, make changes, within the general scope of this contract, in any one or more of the following: (i) Drawings, designs, or specifications, where the supplies to be furnished are to be specially factured for the Government in accordance therewith: (ii) method of shipment or par (iii) place of delivery. If any such change causes an increase or decrease in the cost time required for the performance of any part of the work under this contract, w or not changed by any such order, an equitable adjustment shall be made in the contr delivery schedule, or both, and the contract shall be modified in writing accordingly. by the Contractor for adjustment under this clause must be asserted within 30 days of receipt by the Contractor of the notification of change, provided, however, that Officer, if he decides that the facts justify such action, may receive and act asserted at any time prior to final payment under this contract. Where the cost obsolete or excess as result of a change is included in the Contractor's claim ( Contracting Officer shall have the right to prescribe the manner of disposition Failure to agree to any adjustment shall be a dispute concerning a question of meaning of the clause of this contract entitled "Disputes". However, nothing i excuse the Contractor from proceeding with the contract as chas of clause) In the foregoing clause, the period of “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) and the audit clause required by 7–104.41. 7-103.3 Extras. EXTRAS (1949 JUL) Except as otherwise provided in this contract, no payment for extras shall be made extras and the price therefor have been authorized in writing by the Contracting Officer. (End of clause) 7-103.4 Variation in Quantity. (a) Insert the following clause. VARIATION IN QUANTITY (1949 JUL) No variation in the quantity of any item called for by this contract will be accepted unles variation has been caused by conditions of loading, shipping, or packing, or allowances in m facturing processes, and then only to the extent, if any, specified elsewhere in this contract. (End of clause) (b) In accordance with 1–325, insert the following clause. EXTENT OF QUANTITY VARIATION (1965 APR) uch The permissible variation under the clause of the Gencral Provisions entitled "Variation in Quantity" shall be limited to: Increase (Insert:........ %% or None) 7-103.4 ARMED SERVICES PROCUREMENT REGULATION (a) The following clause shall be inserted in all fixed-price supply contracts, except as provided in (b) and (c) below. INSPECTION (1982 NOV) (a) The Contractor shall provide and maintain an inspection system acceptable to the Government covering the supplies hereunder and shall tender to the Government, for acceptance, only supplies that have been inspected in accordance with said inspection system and have been found by the Contractor to be in conformity with contract requirements. As part of such system, the Contractor shall prepare records evidencing all inspections made pursuant thereto and the outcome thereof. Such records shall be kept complete and available to the Government during the performance of this contract and for such longer period as may be specified elsewhere in this contract. The Government may perform such reviews and evaluations as are reasonably necessary to ascertain compliance with this paragraph. These reviews and evaluations shall be conducted in a manner that will not unduly delay the contract work. The right of review, whether exercised or not, does not relieve the Contractor of the obligations under the contract. (b) All supplies (which term throughout this clause includes without limitation raw mate 7-103.5 ARMED SERVICES PROCUREMENT REGULATION CONTRACT CLAUSES AND SOLICITATION PROVISIONS (d) If any inspection or test is made by the Government on the premises of the Contractor or a subcontractor, the Contractor without additional charge shall provide all reasonable facilities and assistance for the safety and convenience of the Government inspectors in the performance of their duties. If Government inspection or test is made at a point other than the premises of the Contractor or a subcontractor, it shall be at the expense of the Government except as otherwise provided in this contract; provided, that in case of rejection the Government shall not be liable for any reduction in value of samples used in connection with such inspection or test. All inspections and tests by the Government shall be performed in such a manner as not to unduly delay the work. The Government reserves the right to charge to the Contractor any additional cost of Government inspection and test when supplies are not ready at the time such inspection and test is requested by the Contractor or when reinspection or retest is necessitated by prior rejection. Acceptance or rejection of the supplies shall be made as promptly as practicable after delivery, except as otherwise provided in this contract; but failure to inspect and accept or reject supplies shall neither relieve the Contractor from responsibility for such supplies as are not in accordance with the contract requirements nor impose liability on the Government therefor. (e) The inspection and test by the Government of any supplies or lots of supplies does not relieve the Contractor from any responsibility regarding defects or other failures to meet the contract requirements which may be discovered prior to acceptance. Unless otherwise provided in this contract, acceptance shall be conclusive except as regards (1) latent defects, (2) fraud, or (3) such gross mistakes as amount to fraud. (f) If acceptance is not conclusive for any of the reasons in paragraph (e) hereof, the Government, in addition to any other rights and remedies provided by law, or under other provisions of this contract, shall have the right to require the Contractor (1) at no increase in contract price, to correct or replace the defective or nonconforming supplies at the original point of delivery or at the Contractor's plant at the Contracting Officer's election, and in accordance with a reasonable delivery schedule as may be agreed upon between the Contractor and the Contracting Officer; Provided, That the Contracting Officer may require a reduction in contract price if the Contractor fails to meet such delivery schedule, or (2) within a reasonable time after receipt by the Contractor of notice of defects or nonconformance, to repay such portion of the contract as is equitable under the circumstances if the Contracting Officer elects not to require correction or replacement. When supplies are returned to the Contractor, the Contractor shall bear the transportation cost from the original point of delivery to the Contractor's plant and return to the original point when that point is not the Contractor's plant. If the Contractor fails to perform or act as required in (1) or (2) above and does not cure such failure within a period of ten (10) days (or such longer period as the Contracting Officer may authorize in writing) after receipt of notice from the Contracting Officer specifying such failure, the Government shall have the right by contract or otherwise to replace or correct such supplies and charge to the Contractor the cost occasioned the Government thereby. (End of clause) 7-103.5 ARMED SERVICES PROCUREMENT REGULATION CONTRACT CLAUSES AND SOLICITATION PROVISIONS (b) The clause in (a) above shall be included in all fixed-price incentive contracts except that paragraphs (c) and (f) thereof shall be deleted and the following substituted: (c) In case any supplies or lots of supplies are defective in material or workmanship or otherwise not in conformity with the requirements of this contract, the Government shall have the right either to reject them (with or without instructions as to their disposition) or to require their correction. Supplies or lots of supplies which have been rejected or required to be corrected shall be removed or, if permitted or required by the Contracting Officer, corrected in place by the Contractor promptly after notice, and shall not thereafter be tendered for acceptance unless the former rejection or requirement of correction is disclosed. Prior to the establishment of the total final price, the cost of replacement or correction shall be considered as a cost incurred, or to be incurred, for the purpose of negotiating the total final negotiated cost under the incentive price revision clause of this contract. After the establishment of the total final price, all replacements or corrections made by the Contractor shall be accomplished at no increase in the total final price. If the Contractor fails either promptly to remove such supplies or lots of supplies which are required to be removed, or promptly to replace or correct such supplies or lots of supplies, the Government either (i) may by contract or otherwise replace or correct such supplies, and equitably reduce any target price, or, if it is established, the total final price of this contract; or (ii) may terminate this contract for default as provided in the clause of this contract entitled "Default". Unless the Contractor corrects or replaces such supplies within the delivery schedule, the Contracting Officer may require the delivery of such supplies, and equitably reduce any target price or, if it is established, the total final price of this contract. Failure to agree to such equitable reduction shall be a dispute concerning a question of fact within the meaning of the clause of this contract entitled "Disputes". (f) If acceptance is not conclusive for any of the reasons in paragraph (e) hereof, the Government, in addition to any other rights and remedies provided by law, or under other provisions of this contract, shall have the right to require the Contractor (1) at no increase in any target price or, if it is established, the total final price of this contract, to correct or replace the defective or nonconforming supplies at the original point of delivery or at the Contractor's plant at the Contracting Officer's election, and in accordance with a reasonable delivery schedule as may be agreed upon between the Contractor and the Contracting Officer; Provided, That the Contracting Officer may require a reduction in any target price, or, if it is established, the total final price of this contract, if the Contractor fails to meet such delivery schedule; or (2) within a reasonable time after receipt by the Contractor of notice of defects or nonconformance, to repay such portion of the total final price as is equitable under the circumstances if the Contracting Officer elects not to require correction or replacement. When supplies are returned to the Contractor, the Contractor shall bear the transportation costs from the original point of delivery to the Contractor's plant and return to the original point when that point is not the Contractor's plant. If the Contractor fails to perform or act as required in (1) or (2) above and does not cure 7-103.5 ARMED SERVICES PROCUREMENT REGULATION |