1-7.602-30 Pricing of adjustments.

1-7.602-31 Use and possession prior to completion.

1-7.602-32 Suspension of work.

1-7.602-33 Utilization of minority business enterprises.

1-7.602-34 Listing of employment openings.

1-7.602-35 Payment of interest on contractors' claims.

1-7.602-36 Shop drawings.

1-7.602-37 Employment of the handicapped.

1-7.602-38 Clean air and water.

1-7.603 Clauses and notices to be used when applicable.

1-7.603-1-1-7.603-6 [Reserved]

1-7.603-7 Examination of records by Comptroller General.

1-7.603-8-1-7.603-10 [Reserved]

1-7.603-11 Price reduction for defective cost or pricing data.

1-7.603-12 Workmen's compensation insurance (Defense Base Act).

1-7.603-13 [Reserved] 1-7.603-14

Advance payments.

1-7.703-22 Cost accounting standards. 1-7.703-23

Clean air and water.

1-7.703-24 Privacy Act.

1-7.703-25 Use of U.S. flag commercial vessels.

1-7.704 [Reserved]

Appendix-Background and nature of revisions to contract clauses.

AUTHORITY: Sec. 205(c), 63 Stat. 390; 40 U.S.C. 486(c).

SOURCE: 29 FR 10192, July 24, 1964, unless

otherwise noted.

§ 1-7.000 Scope of part.

This part sets forth contract clauses for use in connection with the procurement of personal property and nonpersonal services (including construction).

Subpart 1-7.1-Fixed-Price Supply Contracts

SOURCE: 38 FR 6670, Mar. 12, 1973, unless otherwise noted.

§ 1-7.100 Scope of subpart.

This subpart sets forth contract clauses for use in fixed-price supply contracts.

§ 1-7.101 Applicability.

The clauses set forth in this subpart shall be used in fixed-price supply contracts entered into either by formal advertising or by negotiation (other than for small purchases as defined in Subpart 1-3.6).

§ 1-7.102 Required clauses.

The clauses set forth in this § 17.102 shall be attached, included in, or incorporated by reference when appropriate in all fixed-price supply contracts. When incorporated by reference, the section numbers and captions are to be listed; i.e., § 1-7.102-2 Changes, § 1-7.102-3 Extras, etc. Standard forms containing the clauses may be incorporated by reference in lieu of listing. (See § 1-16.101 for incorporation of standard forms by reference.)

[40 FR 2812, Jan. 16, 1975]

§ 1-7.102-1 Definitions.

DEFINITIONS

As used throughout this contract, the following terms shall have the meaning set forth below:

(a) The term "head of the agency" or "Secretary" as used herein means the Secretary, the Under Secretary, any Assistant Secretary, or any other head or assistant head of the executive or military department 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 "subcontracts" includes purchase orders under this contract.

Additional definitions may be included provided they are not inconsistent with the clause or the provisions of these regulations. § 1-7.102-2 Changes.

CHANGES

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 manufactured for the Government in accordance therewith; (ii) method of shipment or packing; and (iii) place of delivery. If any such change causes an increase or decrease in the 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, an equitable adjustment shall be made in the contract price or delivery schedule, or both, and the contract shall be modified in writing accordingly. Any claim by the Contractor for adjustment under this clause must be asserted within 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. Where the cost of property made obsolete or excess as a result of a change is included in the Contractor's claim for adjustment, the Contracting Officer shall have the right to prescribe the manner of disposition of such property. 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, nothing in this clause shall excuse the Contractor from proceeding with the contract as changed.

§ 1-7.102-3 Extras.

EXTRAS

Except as otherwise provided in this contract, no payment for extras shall be made

unless such extras and the price therefor have been authorized in writing by the Contracting Officer.

§1-7.102-4 Variation in quantity.

VARIATION IN QUANTITY

No variation in the quantity of any item called for by this contract will be accepted unless such variation has been caused by conditions of loading, shipping, or packing, or allowances in manufacturing processes, and then only to the extent, if any, specified elsewhere in this contract.

§ 1-7.102-5 Inspection.

INSPECTION

(a) All supplies (which term throughout this clause includes without limitation raw materials, components, intermediate assemblies, and end products) shall be subject to inspection and test by the Government, to the extent practicable at all times and places including the period of manufacture, and in any event prior to acceptance.

(b) 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 and at the expense of the Contractor promptly after notice, and shall not thereafter be tendered for acceptance unless the former rejection or requirement of correction is disclosed. If the Contractor fails 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 charge to the Contractor the cost occasioned the Government thereby, 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 at a reduction in price which is equitable under the circumstances. Failure to agree to such reduction of price shall be a dispute concerning a question of fact within the meaning of the clause of this contract entitled "Disputes."

(c) 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 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 the 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.

(d) The inspection and test by the Government of any supplies or lots thereof 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. Except as otherwise provided in this contract, acceptance shall be conclusive except as regards latent defects, fraud, or such gross mistakes as amount to fraud.

(e) The Contractor shall provide and maintain an inspection system acceptable to the Government covering the supplies hereunder. Records of all inspection work by the Contractor 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.

§ 1-7.102-6 Responsibility for supplies.

RESPONSIBILITY FOR SUPPLIES

Except as otherwise provided in this contract, (i) the Contractor shall be responsible for the supplies covered by this contract until they are delivered at the designated delivery point, regardless of the point of inspection; (ii) after delivery to the Government at the designated point and prior to acceptance by the Government or rejection and giving notice thereof by the Government, the Government shall be responsible for the loss or destruction of or damage to the supplies only if such loss, destruction, or damage results from the negligence of offi

cers, agents, or employees of the Government acting within the scope of their employment; and (iii) the Contractor shall bear all risks as to rejected supplies after notice of rejection, except that the Government shall be responsible for the loss, or destruction of, or damage to the supplies only if such loss, destruction, or damage results from the gross negligence of officers, agents, or employees of the Government acting within the scope of their employment.

§ 1-7.102-7 Payments.

PAYMENTS

The Contractor shall be paid, upon the submission of proper invoices or vouchers, the prices stipulated herein for supplies delivered and accepted or services rendered and accepted, less deductions, if any, as herein provided. Unless otherwise specified, payment will be made on partial deliveries accepted by the Government when the amount due on such deliveries so warrants; or, when requested by the Contractor, payment for accepted partial deliveries shall be made whenever such payment would equal or exceed either $1,000 or 50 percent of the total amount of this contract.

§ 1-7.102-8 Assignment of claims.

Insert the clause set forth in § 130.703 under the conditions contained therein.

§ 1-7.102-9 [Reserved]

§ 1-7.102-10 Federal, State, and local

taxes.

Insert either the clause in § 1.11.4011 or the clause in § 1-11.401-2 and, when appropriate, insert the supplementary clause in § 1-11.401-3(a), in accordance with the conditions contained in those sections.

§ 1-7.102-11 Default.

Insert the clause set forth in § 18.707 under the conditions prescribed in § 1-8.700-2(b) (1).

§ 1-7.102-12 Disputes.

DISPUTES

(a) Except as otherwise provided in this contract, any dispute concerning a question of fact arising under this contract which is not disposed of by agreement shall be decided by the Contracting Officer, who shall reduce his decision to writing and mail or otherwise furnish a copy thereof to the Contractor. The decision of the Contracting

Officer shall be final and conclusive unless within 30 days from the date of receipt of such copy, the Contractor mails or otherwise furnishes to the Contracting Officer a written appeal addressed to the Secretary. The decision of the Secretary or his duly authorized representative for the determination of such appeals shall be final and conclusive unless determined by a court of competent jurisdiction to have been fraudulent, or capricious, or arbitrary, or so grossly erroneous as necessarily to imply bad faith, or not supported by substantial evidence. In connection with any appeal proceeding under this clause, the Contractor shall be afforded an opportunity to be heard and to offer evidence in support of its appeal. Pending final decision of a dispute hereunder, the Contractor shall proceed diligently with the performance of the contract and in accordance with the Contracting Officer's decision.

(b) This "Disputes" clause does not preclude consideration of law questions in connection with decisions provided for in paragraph (a), above: Provided, That nothing in this contract shall be construed as making final the decision of any administrative official, representative, or board on a question of law.

§ 1-7.102-13 [Reserved]

§ 1-7.102-14 Buy American Act.

Insert the clause set forth in § 16.104-5 under the conditions contained therein.

§ 1-7.102-15 Contract Work Hours and Safety Standards Act-overtime compensation.

Insert the clause set forth in § 112.303 under the conditions contained in § 1-12.302.

§ 1-7.102-16 Equal opportunity.

Insert the clause set forth in § 112.803-2 under the conditions contained in § 1-12.803-1.

§ 1-7.102-17 Officials not to benefit.

OFFICIALS NOT TO BENEFIT

No member of or delegate to Congress, or resident commissioner, shall be admitted to any share or part of this contract, or to any benefit that may arise therefrom; but this provision shall not be construed to extend to this contract if made with a corporation for its general benefit.

§1-7.102-18 Covenant against contingent fees.

Insert the clause set forth in § 11.503 under the conditions contained in § 1-1.501.

§1-7.102-19 Termination for convenience of the Government.

Insert the clause set forth in § 18.701 in fixed-price supply contracts in excess of $10,000 except as permitted by § 1-8.700-2(a) (2) for contracts not in excess of $100,000.

[40 FR 44140, Sept. 25, 1975)

§1-7.102-20 Pricing of adjustments.

The following clause shall be included in all formally advertised or negotiated contracts other than cost-type contracts:

PRICING OF ADJUSTMENTS

When costs are a factor in any determination of a contract price adjustment pursuant to the "Changes" cause or any other provision of this contract, such costs shall be in accordance with the contract cost principles and procedures in Part 1-15 of the Federal Procurement Regulations (41 CFR 1-15) or section XV of the Armed Services Procurement Regulation in effect on the date of this contract.

§ 1-7.102-21 Employment of the handicapped.

Insert the clause set forth in § 112.1304-1 under the conditions contained in the section.

[39 FR 26642, July 22, 1974]

§1-7.102-22 Payment of interest on contractors' claims.

Insert the clause set forth in § 11.322 under the conditions prescribed therein.

[40 FR 11580, Mar. 3, 1975]

§ 1-7.102-23 Clean air and water.

Insert the clause prescribed by § 11.2302-2 under the conditions set forth therein.

[40 FR 36341, Aug. 20, 1975]