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$ 1-6.806–4 Contract clause.

§ 1-6.1000 Scope. The clause set forth below shall be This subpart sets forth policies and inserted in contracts resulting from procedures for omitting the ExaminaBalance of Payments Program pro tion of Records clause from contracts curements.

with foreign contractors and foreign

subcontractors where agencies desire U.S. PRODUCTS AND SERVICES (BALANCE OF

to omit such clause under the authoriPAYMENTS PROGRAM)

ty granted in section 304(c) of the Fed(a) To the extent that the Government eral Property and Administrative specifies that the items being purchased are Services Act of 1949, as amended. in implementation of the Balance of Payments Program, the Contractor agrees that 81-6.1001 Statutory requirements. there will be delivered or performed under this contract only U.S. end products or U.S.

(a) In accordance with section 304(c) services.

of the Federal Property and Adminis(b) For the purpose of this clause:

trative Services Act of 1949, as amend(1) "Components" means those articles,

ed (41 U.S.C. 254(c)), the Examination materials, and supplies which are directly

of Records by Comptroller General incorporated in the end products;

clause (see § 1-7.103-3) may be omitted (2) "End products" means those articles, from negotiated contracts and subconmaterials, and supplies which are acquired tracts with foreign contractors and under this contract for public use;

foreign subcontractors. (3) "U.S. end product" means:

(1) Where the head of the agency (i) An unmanufactured end product which determines, with the concurrence of has been mined or produced in the United

the Comptroller General or his desigStates; or

nee, that omission of the clause will (ii) An end product manufactured in the

serve the best interests of the United United States, if the cost of the components

States; or thereof which are mined, produced, or manufactured in the United States exceeds 50

(2) Where (i) the contractor or subpercent of the cost of all its components.

contractor is a foreign government or For the purpose of this subparagraph, com agency thereof, or is precluded by the ponents of foreign origin of the same type law of the country involved from and kind which the Government determines making its books, documents, papers, are not mined, produced, or manufactured or records available for examination; in sufficient and reasonably available com and (ii) the head of the agency determercial quantities and of satisfactory qual

mines, after taking into account the ity shall be treated as components mined,

price and availability of the property produced, or manufactured in the United

or services from U.S sources, that the States.

public interest would best be served by (4) “U.S. services” means those that are performed within the United States. In

the omission of the clause. some instances, services provided under a

(b) A determination by the head of single contract are performed partially in

the agency under paragraph (a) (2) of the United States and partially abroad. this $ 1-6.1001 does not require the Such services shall be considered U.S. serv concurrence of the Comptroller Genices if 25 percent or less of the total cost of eral or his designee. However, where a the services is attributable to services (in determination by the head of the cluding incidental supplies used in connec agency under paragraph (a) (2) of this tion therewith) performed outside the 8 1-6.1001 is the basis for omission of United States.

the Examination of Records clause,

the statute requires that a written Subpart 1-6.9—[Reserved) report be furnished to the Congress.

This report, which shall explain the Subpart 1-6.10—Omission of the Ex

reasons for the determination, shall be amination of Records Clause From

prepared and forwarded to the Con

gress in accordance with agency proceContracts With Foreign Contractors

dures. SOURCE: 34 FR 6844, Apr. 24, 1969, unless (34 FR 6844, Apr. 24, 1969, as amended at 41 otherwise noted.

FR 19313, May 12, 1976)

States, or (2) that the public interest would be best served by the omission of the clause, pursuant to the provisions of section 304(c) of the Federal Property and Administrative Services Act of 1949, as amended (41 U.S.C. 254(c)), (see § 1-6.1001).

$ 1-6.1002 Policy.

The Examination of Records clause shall be included where possible. Omission of the clause should be al. lowed only after the contracting agency has made all reasonable efforts to include the clause and has considered such factors as alternate sources of supply, additional cost, and time of delivery. “Foreign contractor" for the purposes of this Subpart 1-6.10 is defined as "one that is organized or existing under the laws of a country other than the United States” (see $ 16.101(c)).

PART 1-7-CONTRACT CLAUSES

Sec. 1-7.000 Scope of part.

Subpart 1-7.1-Fixed-Price Supply Contracts

$ 1-6.1003 Requests for determinations

and findings. A request for a determination and findings to omit the Examination of Records clause (see § 1-3.302) ordinari. ly will be initiated by the contracting officer. The request shall consist of a letter submitted through normal procurement channels, addressed to the head of the agency, setting forth all the facts necessary to arrive at an appropriate determination and findings. The power of the agency head to make such a determination is not delegable (see § 1-3.303).

$ 1-6.1004 Determinations and findings.

The determinations and findings by the head of an agency authorizing the omission of the Examination of Records clause from a contract with a foreign contractor or foreign subcontractor shall:

(a) Identify the contract or subcontract and its purpose, and state that it is a contract or subcontract with a foreign contractor or foreign subcontractor, or that the contractor or subcon. tractor is a foreign government or agency thereof;

(b) Describe the efforts that have been made to include the clause in the contract or subcontract;

(c) State the reasons for the contractor's or subcontractor's refusal to include the clause;

(d) Describe the price and availabil ity of the property or services from United States and other sources; and

(e) Determine, as appropriate, (1) that the omission of the clause will serve the best interests of the United

1-7.100 Scope of subpart. 1-7.101 Applicability. 1-7.102 Required clauses. 1-7.102-1 Definitions. 1-7.102-2 Changes. 1-7.102-3 Extras. 1-7.102-4 Variation in quantity. 1-7.102-5 Inspection. 1-7.102-6 Responsibility for supplies. 1-7.102-7 Payments. 1-7.102-8 Assignment of claims. 1-7.102-9 (Reserved) 1-7.102-10 Federal, State, and local taxes. 1-7.102-11 Default. 1-7.102-12 Disputes. 1-7.102-13 (Reserved) 1-7.102-14 Buy American Act. 1-7.102-15 Contract Work Hours and

Safety Standards Act-overtime com

pensation. 1-7.102-16 Equal opportunity. 1-7.102-17 Officials not to benefit. 1-7.102-18 Covenant against contingent

fees. 1-7.102-19 Termination for convenience of

the Government. 1-7.102-20 Pricing of adjustments. 1-7.102-21 Employment of the handi

capped. 1-7.102-22 Payment of interest on contrac

tors' claims. 1-7.102-23 Clean air and water. 1-7.103 Clauses to be used when applicable. 1-7.103-1 Clauses for fixed-price supply

contracts involving construction. 1-7.103-2 Additional bond security. 1-7.103-3 Examination of records by

Comptroller General. 1-7.103-4 Notice and assistance regarding

patent and copyright infringement. 1-7.103-5 Convict labor. 1-7.103-6 Walsh-Healey Public Contracts

Act. 1-7.103-7 Utilization of small business con

cerns. 1-7.103-8 Small business subcontracting

program. 1-7.103-9 Utilization of labor surplus area

concerns.

Sec. 1-7.103-10 Labor surplus area subcontract.

ing program. 1-7.103-11 Utilization of minority business

enterprises. 1-7.103-12 Minority business enterprises

subcontracting program. 1-7.103-13 Humane slaughter of livestock. 1-7.103-14 Required source for jewel bear

ings. 1-7.103-15 (Reserved) 1-7.103-16 Listing of employment open

ings. 1-7.103-17 Price reduction for defective

cost or pricing data. 1-7.103-18 Audit and records. 1-7.103-19 Subcontractor cost and pricing

data. 1-7.103-20 Advance payments. 1-7.103-21 Progress payments. 1-7.103-22 Workmen's compensation insur

ance (Defense Base Act). 1-7.103-23 Late offers and modifications or

withdrawals. 1-7.103-24 Contracts with the Small Busi

ness Administration. 1-7.103-25 Supplementary tax clauses. 1-7.103-26 Preference for U.S. flag air car

riers. 1-7.103-27 Cost accounting standards. 1-7.103-28 Subcontracts. 1-7.103-29 Privacy Act. 1-7.103-30 Clauses for solicitations and

contracts for automatic data processing (ADP) equipment, software, mainte

nance services, and supplies. 1-7.103-31 Use of U.S. flag commercial ves

sels. 1-7.104 Additional clauses. 1-7.104-1 Liquidated damages provisions. 1-7.104-2 Changes to "make-or-buy” pro

gram.

Sec. 1-7.202-16 Contract Work Hours and

Safety Standards Act-overtime com

pensation. 1-7.202-17 Walsh-Healey Public Contracts

Act. 1-7.202-18 Equal opportunity. 1-7.202-19 Officials not to benefit. 1-7.202-20 Covenant against contingent

fees. 1-7.202-21-1-7.202-23 (Reserved) 1-7.202-24 Notice and assistance regarding

patent and copyright infringement. 1-7.202-25 (Reserved) 1-7.202-26 Utilization of small business

concerns. 1-7.202-27 Utilization of labor surplus area

concerns. 1-7.202-28 Utilization of minority business

enterprises. 1-7.202-29 Payment for overtime premi.

ums. 1-7.202-30 Competition in subcontracting. 1-7.202-31 Price reduction for defective

cost or pricing data. 1-7.202-32 Audit and records. 1-7.202-33 Subcontractor cost and pricing

data. 1-7.202-34 Payment of interest on contrac

tors' claims. 1-7.202-35 Listing of employment open

ings. 1-7.202-36 Late offers and modifications or

withdrawals. 1-7.202-37 Employment of the handi

capped. 1-7.202-38 Clean air and water. 1-7.203 Clauses to be used when applicable. 1-7.203-1 Clauses for cost-reimbursement

type supply contracts involving con

struction. 1-7.203-2 (Reserved) 1-7.203-3 Notice to the Government of

labor disputes. 1-7.203-4-1-7.203-8 (Reserved) 1-7.203-9 Negotiated overhead rates. 1-7.203-10 Make-or-buy program. 1-7.203-11 Advance payments. 1-7.203-12 Required source for jewel bear

ings. 1-7.203-13 General Services Administra

tion supply sources. 1-7.203-14 Use of interagency motor pool

vehicles and related services. 1-7.203-15 Interest. 1-7.203-16 (Reserved) 1-7.203-17 (Reserved) 1-7.203-18 Small business subcontracting

program. 1-7.203-19 Labor surplus area subcontract

ing program. 1-7.203-20 Minority business enterprises

subcontracting program. 1-7.203-21 Government property. 1-7.203-22 Preference for U.S. flag carriers. 1-7.203-23 Cost accounting standards. 1-7.203-24 Privacy Act.

Subpart 1-7.2-Cost-Reimbursement Type

Supply Contracts 1-7.200 Scope of subpart. 1-7.201 Applicability. 1-7.202 Required clauses. 1-7.202-1 Definitions. 1-7.202-2 Changes. 1-7.202-3 Limitation of cost or funds. 1-7.202-4 Allowable cost, fee, and payment. 1-7.202-5 Inspection of supplies and correc

tion of defects. 1-7.202-6 Assignment of claims. 1-7.202-7 Examination of records by

Comptroller General. 1-7.202-8 Subcontracts. 1-7.202-9 (Reserved) 1-7.202-10 Termination for default or con

venience of the Government. 1-7.202-11 Excusable delays. 1-7.202-12 Disputes. 1-7.202-13 (Reserved) 1-7.202-14 Buy American Act. 1-7.202-15 Convict labor.

Sec. 1-7.203-25 Use of U.S. flag commercial ves

sels. 1-7.204 Additional clauses. 1-7.204-1 Alterations in contract. 1-7.204-2 Approval of contract. 1-7.204-3 Date of incurrence of costs. 1-7.204-4 Notice regarding late delivery. 1-7.204-5 Insurance-liability to third per

sons.

Subpart 1-7.3—Fixed-Price Research and

Development Contracts

1-7.300 Scope of subpart. 1-7.301 Applicability. 1-7.302 Required clauses. 1-7.302-1 Definitions. 1-7.302-2 Payments. 1-7.302-3 Standards of work. 1-7.302-4 Inspection. 1-7.302-5 Assignment of claims. 1-7.302-6 Examination of records by

Comptroller General 1-7.302-7 Federal, State, and local taxes. 1-7.302-8 Utilization of small business con

cerns. 1-7.302-9 Default. 1-7.302-10 Termination for convenience of

the Government. 1-7.302-11 Disputes. 1-7.302-12 (Reserved) 1-7.302-13 Buy American Act. 1-7.302-14 Convict labor. 1-7.302-15 Walsh-Healey Public Contracts

Act. 1-7.302-16 Contract Work Hours and

Safety Standards Act-overtime com

pensation. 1-7.302-17 Equal opportunity. 1-7.302-18 Officials not to benefit. 1-7.302-19 Covenant against contingent

fees. 1-7.302-20 (Reserved) 1-7.302-21 (Reserved) 1-7.302-22 Notice and assistance regarding

patent and copyright infringement. 1-7.302-23 Patents. 1-7.302-24 [Reserved) 1-7.302-25 (Reserved) 1-7.302-26 Utilization of labor surplus area

concerns. 1-7.302-27 (Reserved) 1-7.302-28 (Reserved) 1-7.302-29 Pricing of adjustments. 1-7.302-30 Listing of employment open

ings. 1-7.302-31 Utilization of minority business

enterprises. 1-7.302-32 Payment of interest on contrac

tors' claims. 1-7.302-33 Employment of the handi

capped. 1-7.302-34 Clean air and water. 1-7.303 Clauses to be used when applicable.

Sec. 1-7.303-1 Clauses for fixed-price research

and development contracts involving

construction. 1-7.303-2-1-7.303-6 (Reserved) 1-7.303-7 Government property. 1-7.303-8 (Reserved) 1-7.303-9 Notice to the Government of

labor disputes. 1-7.303-10 (Reserved) 1-7.303-11 (Reserved) 1-7.303-12 Subcontracts. 1-7.303-13-1-7.303-15 (Reserved) 1-7.303-16 Price reduction for defective

cost or pricing data. 1-7.303-17–1-7.303-20 (Reserved) 1-7.303-21 Advance payments. 1-7.303-22 Workmen's compensation insur

ance (Defense Base Act). 1-7.303-23 Progress payments. 1-7.303-24 Required source for jewel bear

ings. 1-7.303-25 (Reserved) 1-7.303-26 Interest. 1-7.303-27 Competition in subcontracting. 1-7.303-28 Audit and records, 1-7.303-29 Subcontractor cost and pricing

data. 1-7.303-30–1-7.303-40 (Reserved) 1-7.303-41 United States products and

services (Balance of Payments Pro

gram). 1-7.303-42 (Reserved) 1-7.303-43 (Reserved] 1-7.303-44 Care of laboratory animals. 1-7.303-45 (Reserved) 1-7.303-46 Insurance. 1-7.303-471-7.303-50 (Reserved) 1-7.303-51 Minority business enterprises

subcontracting program. 1-7.303-52–1-7.303-54 (Reserved) 1-7.303-55 Cost accounting standards. 1-7.303-56 (Reserved) 1-7.303-57 (Reserved] 1-7.303-58 Labor surplus area subcontract

ing program. 1-7.303-59 Small business subcontracting

program. 1-7.303-60-1-7.303-62 (Reserved) 1-7.303-63 Preference for U.S. flag air car

riers. 1-7.303-64 Contracts with the Small Busi

ness Administration. 1-7.303-65 Privacy Act. 1-7.303-66 Use of U.S. flag commercial ves

sels. 1-7.304 Additional clauses. 1-7.304-1 Changes. 1-7.304-2 Alterations in contract. 1-7.304-3 Approval of contract. 1-7.304-4 (Reserved) 1-7.304-5 Notice regarding late delivery. 1-7.304-6 Key personnel. 1-7.304-7 Liquidated damages. 1-7.304-8 Disposition of material. 1-7.304-9 Reports of work.

Subpart 1-7.4—Cost-Reimbursement Type

Research and Development Contracts Sec. 1-7.400 Scope of subpart. 1-7.401 Applicability. 1-7.402 Required clauses. 1-7.402-1 Definitions. 1-7.402-2 Limitation of cost or funds. 1-7.402-3 Allowable cost, fee, and payment. 1-7.402-4 Standards of work. 1-7.402-5 Inspection and correction of de

fects. 1-7.402-6 Assignment of claims. 1-7.402-7 Examination of records by

Comptroller General. 1-7.402-8 Subcontracts. 1-7.402-9 Utilization of small business con

cerns. 1-7.402-10 Termination for default or con

venience of the Government. 1-7.402-11 Disputes. 1-7.402-12 (Reserved) 1-7.402-13 Buy American Act. 1-7.402-14 Convict labor. 1-7.402-15 Walsh-Healey Public Contracts

Act. 1-7.402-16 Contract Work Hours and

Safety Standards Act-overtime com

pensation. 1-7.402-17 Equal opportunity. 1-7.402-18 Officials not to benefit. 1-7.402-19 Covenant against contingent

fees. 1-7.402-20 (Reserved) 1-7.402-21 Notice and assistance regarding

patent and copyright infringement. 1-7.402-22 Patents. 1-7.402-23 (Reserved) 1-7.402-24 (Reserved) 1-7.402-25 Government property. 1-7.402-26 (Reserved) 1-7.402-27 Utilization of labor surplus area

concerns. 1-7.402-28 Payment for overtime premi

ums. 1-7.402-29 Competition in subcontracting. 1-7.402-30 Audit and records. 1-7.402-31 Price reduction for defective

cost or pricing data. 1-7.402-32 Subcontractor cost and pricing

data. 1-7.402-33 Utilization of minority business

enterprises. 1-7.402-34 Listing of employment open

ings. 1-7.402-35 Payment of interest on contrac

tors' claims. 1-7.402-36 Employment of the handi

capped. 1-7.402-37 Clean air and water. 1-7.403 Clauses to be used when applicable. 1-7.403-1 Clauses for cost-reimbursement

type research and development con

tracts involving construction. 1-7.403-2-1-7.403-4 (Reserved) 1-7.403-5 Excusable delays.

Sec. 1-7.403-6-1-7.403-8 (Reserved) 1-7.403-9 Negotiated overhead rates. 1-7.403-10 Notice to the Government of

labor disputes. 1-7.403-11-1-7.403-13 (Reserved] 1-7.403-14 Make-or-buy program. 1-7.403-15-1-7.403-19 (Reserved) 1-7.403-20 Advance payments. 1-7.403-21 Workmen's compensation insur

ance (Defense Base Act). 1-7.403-22 Required source for jewel bear

ings. 1-7.403-23 General Services Administra

tion supply sources. 1-7.403-24 Use of interagency motor pool

vehicles and related services. 1-7.403-25 Interest. 1-7.403-26-1-7.403-35 (Reserved] 1-7.403-36 United States products and

services (Balance of Payments Pro

gram). 1-7.403-37 (Reserved) 1-7.403-38 (Reserved) 1-7.403-39 Care of laboratory animals. 1-7.403-40–1-7.403-49 (Reserved) 1-7.403-50 Cost accounting standards. 1-7.403-51 (Reserved) 1-7.403-52 (Reserved) 1-7.403-53 Small business subcontracting

program. 1-7.403-54 Labor surplus area subcontract

ing program. 1-7.403-55 Minority business enterprises.

subcontracting program. 1-7.403-56 (Reserved) 1-7.403-57 (Reserved) 1-7.403-58 Preference for U.S. flag air car

riers. 1-7.403-59 (Reserved) 1-7.403-60 Privacy Act. 1-7.403-61 Use of U.S. flag commercial ves

sels. 1-7.404 Additional clauses. 1-7.404-1 Alterations in contract. 1-7.404-2 Approval of contract. 1-7.404-3 Date of incurrence of costs. 1-7.404-4 Notice regarding late delivery. 1-7.404-5 Changes. 1-7.404-6 Key personnel. 1-7.404-7 Disposition of material. 1-7.404-8 Reports of work. 1-7.404-9 Insurance-liability to third per

sons.

Subpart 1-7.5—[Reserved)

Subpart 1-7.6—Fixed-Price Construction

Contracts 1-7.600 Scope of subpart. 1-7.601 General. 1-7.602 Required clauses. 1-7.602-1 Definitions. 1-7.602-2 Specifications and drawings. 1-7.602-3 Changes. 1-7.602-4 Differing site conditions.

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