tions prescribed in §§ 1-8.700-2(a) (3) and 1-8.700-2(b) (2). § 1-7.202-11 Excusable delays. Insert the clause set forth in § 18.708 under the conditions prescribed in § 1-8.700-2(c). § 1-7.202-12 Disputes. Insert the clause set forth in § 17.102-12. § 1-7.202-13 [Reserved] § 1-7.202-14 Buy American Act. Insert the clause set forth in § 16.104-5 under the conditions pre scribed therein. § 1-7.202-15 Convict labor. Insert the clause set forth in § 112.204 under the conditions prescribed in § 1-12.203. [39 FR 24009, June 28, 1974] § 1-7.202-16 Contract Work Hours and Safety Standards Act-overtime compensation. Insert the clause set forth in § 112.303 under the conditions prescribed in § 1-12.302. § 1-7.202-17 Walsh-Healey Public Contracts Act. Insert the clause set forth in § 112.605 under the conditions prescribed in § 1-12.602. § 1-7.202-18 Equal opportunity. Insert the clause set forth in § 112.803-2 under the conditions prescribed in § 1-12.803-1. § 1-7.202-19 Officials not to benefit. Insert the clause set forth in § 17.102-17. § 1-7.202-20 Covenant against contingent fees. Insert the clause set forth in § 11.503 under the conditions prescribed in § 1-1.501. §§ 1-7.202-21-1-7.202-23 [Reserved] § 1-7.202-24 Notice and assistance regarding patent and copyright infringement. Insert the clause set forth in § 17.103-4. § 1-7.202-25 [Reserved] § 1-7.202-26 Utilization of small business concerns. Insert the clause set forth in § 11.710-3(a) under the conditions and in the manner prescribed therein. § 1-7.202-27 Utilization of labor surplus area concerns. Insert the clause set forth in § 11.805-3(a) under the conditions and in the manner prescribed therein. § 1-7.202-28 Utilization of minority business enterprises. Insert the clause set forth in § 11.1310-2(a) under the conditions and in the manner prescribed therein. § 1-7.202-29 Payment for overtime premi ums. Insert the following clause when payment for overtime premiums is to be made in accordance with § 1-12.102: PAYMENT FOR OVERTIME PREMIUMS (a) Allowable cost shall not include any amount on account of overtime premiums except when (1) specified in (d), below, or (2) paid for work: (i) Necessary to cope with emergencies such as those resulting from accidents, natural disasters, breakdowns of production equipment, or occasional production bottlenecks of a sporadic nature; (ii) By indirect labor employees such as those performing duties in connection with administration, protection, transportation, maintenance, standby plant protection, operation of utilities, or accounting: (iii) In the performance of tests, industrial processes, laboratory procedures, loading or unloading of transportation media, and operations in flight or afloat, which are continuous in nature and cannot reasonably be interrupted or otherwise completed; or (iv) Which will result in lower cost to the Government. (b) The cost of overtime premiums otherwise allowable under (a), above, shall be allowed only to the extent the amount thereof is reasonable and properly allocable to the work under the contract. (c) Any request for overtime, in addition to any amount specified in (d), below, will be for all overtime which can be estimated with reasonable certainty shall be used for the remainder of the contract, and shall contain the following: (1) Identification of the work unit, such as the department or section in which the requested overtime will be used, together with present workload, manning and other data of the affected unit, sufficient to permit an evaluation by the Contracting Officer of the necessity for the overtime; (2) The effect that denial of the request will have on the delivery or performance schedule of the contract; (3) Reasons why the required work cannot be performed on the basis of utilizing multishift operations or by the employment of additional personnel; and (4) The extent to which approval of overtime would affect the performance or payments in connection with any other Government contracts, together with any identification of such affected contracts. (d) The Contractor is authorized to perform overtime, in addition to that performed under (a) (2), only to the extent, if any, specified elsewhere in this contract. § 1-7.202-30 Competition in subcontracting. Insert the following clause in cost reimbursement type supply contracts. COMPETITION IN SUBCONTRACTING The Contractor shall select subcontractors (including suppliers) on a competitive basis to the maximum practicable extent consistent with the objectives and requirements of the contract. § 1-7.202-31 Price reduction for defective cost or pricing data. Insert the clause set forth in § 13.814-1 under the conditions prescribed therein. §1-7.202-32 Audit and records. See § 1-3.814-2(c) for audit and records requirements for cost-reimbursement type contracts. Agencies may use the clause set forth in § 1-3.814-2(a) to satisfy these requirements. However, agency audit and records clauses may be used provided that they give the contracting agency, as a minimum, substantially the same rights as provided by the clause set forth in § 13.814-2(a). Contract Work Hours and Safety Standards Act-Overtime Compensation (40 U.S.C. 327-333). Apprentices and Trainees. Compliance with Copeland Regulations. Subcontracts. Contract Termination-Debarment. (b) Insert the clause set forth in § 118.605 in cost-reimbursement type supply contracts under the conditions contained in Subpart 1-18.6. § 1-7.203-2 [Reserved] § 1-7.203-3 Notice to the Government of labor disputes. Insert the following clause wherever a work stoppage would result in delay in an urgent program. NOTICE TO THE GOVERNMENT OF LABOR (a) Whenever the Contractor has knowledge that any actual or potential labor dispute is delaying or threatens to delay the timely performance of this contract, the Contractor shall immediately give notice thereof, including all relevant information with respect thereto, to the Contracting Officer. (b) The Contractor agrees to insert the substance of this clause, including this paragraph (b), in any subcontract hereunder as to which a labor dispute may delay the timely performance of this contract; except that each such subcontract shall provide that in the event its timely performance is delayed or threatened by delay by any actual or potential labor dispute, the subcontractor shall immediately notify his next higher tier subcontractor, or the Prime Contractor, as the case may be, of all relevant information with respect to such disputes. §§ 1-7.203-4-1-7.203-8 [Reserved] § 1-7.203-9 Negotiated overhead rates. Insert the clause set forth in § 13.704 under the conditions prescribed therein. § 1-7.203-10 Make-or-buy program. Insert the clause set forth in § § 13.902-3 under the conditions prescribed therein. § 1-7.203-11 Advance payments. When advance payments are to be made in accordance with Subpart 1 30.4, insert the appropriate provisions as prescribed in § 1-30.414-2. § 1-7.203-12 Required source for jewel bearings. Insert the clause set forth in § 11.319 under the conditions prescribed therein. § 1-7.203-13 General Services Administration supply sources. Insert the following clause under the conditions set forth in Subpart 1-5.9: GENERAL SERVICES ADMINISTRATION SUPPLY SOURCES The Contracting Officer may issue the Contractor an authorization to utilize General Services Administration supply sources for property to be used in the performance of this contract. Title to all property acquired by the contractor under such an authorization shall vest in the Government. (1) unless otherwise specifically provided in the contract, (2) unless otherwise provided in the Government Property clause of this contract, or (3) in the absence of both the conditions in (1) and (2) of the clause. However, such property shall not be considered to be "Government-furnished property." [39 FR 1756, Jan. 14, 1974, as amended at 43 FR 7318, Feb. 22, 1978] § 1-7.203-14 Use of interagency motor pool vehicles and related services. Insert the following clause under the conditions set forth in Subpart 1-5.5. INTERAGENCY MOTOR POOL VEHICLES AND The Contracting Officer may issue the Contractor an authorization to obtain interagency motor pool vehicles and related services for use in the performance of this contract. The use of interagency motor pool vehicles, their service and maintenance, and the use of related services by the Contractor shall be in accordance with 41 CFR Part 101-39. § 1-7.203-15 Interest. Insert the following clause if, in accordance with agency procedures, amounts due the Government are to bear interest: INTEREST Notwithstanding any other provision of this contract, unless paid within 30 days, all amounts that become payable by the Contractor to the Government under this contract (net of any applicable tax credit under the Internal Revenue Code) shall bear interest at the rate determined by the Secretary of the Treasury pursuant to Public Law 92-41, 85 Stat. 97. Amounts shall be due upon the earliest of (a) the date fixed pursuant to this contract; (b) the date of the first written demand for payment, consistent with this contract, including demand consequent upon default termination; (c) the date of transmittal by the Government to the Contractor of a proposed supplemental agreement to confirm completed negotiations fixing the amount; or (d) if this contract provides for revision of prices, the date of written notice to the Contractor stating the amount of refund payable in connection with a pricing proposal or in connection with a negotiated pricing agreement not confirmed by contract supplement. §1-7.203-16 [Reserved] § 1-7.203-17 [Reserved] §1-7.203-18 Small business subcontracting program. Insert the clause set forth in § 11.710-3(b) under the conditions and in the manner prescribed therein. § 1-7.203-19 Labor surplus area subcontracting program. Insert the clause set forth in § 11.805-3(b) under the conditions and in the manner prescribed therein. § 1-7.203-20 Minority business enterprises subcontracting program. Insert the clause set forth in § 11.1310-2(b) under the conditions and in the manner prescribed therein. §1-7.203-21 Government property. (a) Insert the following clause when the Government is to furnish, or the contractor is to acquire, Government property: GOVERNMENT PROPERTY (a) The Government shall deliver to the Contractor, for use in connection with and under the terms of this contract, the property described as Government-furnished property in the Schedule or specifications, together with such related data and information as the Contractor may request and as may reasonably be required for the intended use of such property (hereinafter referred to as "Government-furnished Property"). The delivery or performance dates for the supplies or services to be furnished by the Contractor under this contract are based upon the expectation that Government-furnished property suitable for use will be delivered to the Contractor at the times stated in the Schedule or, if not so stated, in sufficient time to enable the Contractor to meet such delivery or performance dates. In the event that Governmentfurnished property is not delivered to the Contractor by such time or times, the Contracting Officer shall, upon timely written request made by the Contractor make a determination of the delay, if any, occasioned the Contractor and shall equitably adjust the estimated cost, fixed fee, or delivery or performance dates, or all of them, and any other contractual provisions affected by any such delay, in accordance with the procedures provided for in the clause of this contract entitled "Changes." In the event that Government-furnished property is received by the Contractor in a condition not suitable for the intended use, the Contractor shall, upon receipt thereof notify the Contracting Officer of such fact and, as directed by the Contracting Officer, either (1) return such property at the Government's expense or otherwise dispose of the property, or (2) effect repairs or modifications. Upon completion of (1) or (2), above, the Contracting Officer upon written request of the Contractor shall equitably adjust the estimated cost, fixed fee, or delivery or performance dates, or all of them, and any other contractual provision affected by the return or disposition, or the repair or modification in accordance with the procedures provided for in the clause of this contract entitled "Changes." The foregoing provisions for adjustment are exclusive and the Government shall not be liable to suit for breach of contract by reason of any delay in delivery of Government-furnished property or delivery of such property in a condition not suitable for its intended use. (b) (1) By notice in writing, the Contracting Officer may (i) decrease the property furnished or to be furnished by the Government under this contract, or (ii) substitute other Government-owned property for property to be furnished by the Government, or to be acquired by the Contractor for the Government, under this contract. The Contractor shall promptly take such action as the Contracting Officer may direct with respect to the removal and shipping of property covered by such notice. (2) In the event of any decrease in or substitution of property pursuant to paragraph (1), above, or any withdrawal of authority to use property provided under any contract or lease, which property the Government had agreed in the Schedule to make available for the performance of this contract, the Contracting Officer, upon the written request of the Contractor (or, if the substitution of property causes a decrease in the cost of performance, on his own initiative), shall equitably adjust such contractual provisions as may be affected by the decrease, substitution, or withdrawal, in accordance with the procedures provided for in the "Changes" clause of this contract. (c) Title to all property furnished by the Government shall remain in the Government. Title to all property purchased by the Contractor, for the cost of which the Contractor is entitled to be reimbursed as a direct item of cost under this contract, shall pass to and vest in the Government upon delivery of such property by the vendor. Title to other property, the cost of which is reimbursable to the Contractor under the contract, shall pass to and vest in the Government upon (1) issuance for use of such property in the performance of this contract, or (2) commencement of processing or use of such property in the performance of this contract, or (3) reimbursement of the cost thereof by the Government in whole or in part, whichever first occurs. All Government-furnished property, together with all property 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 property." Title to the Government property shall not be affected by the incorporation or attachment thereof to any property not owned by the Government, nor shall such Government property, or any part thereof, be or become a fixture or lose its identity as personality by reason of affixation to any realty. (d) The Contractor shall be directly responsible for and accountable for all Government property provided under this contract. The contractor shall establish and maintain a system to control, protect, preserve, and maintain all Government property. This system shall, upon request by the Contracting Officer, be submitted for review and, if satisfactory, approved in writing by the Contracting Officer. The Contractor shall maintain and make available such records as are required by the approved system and must account for all Government property until relieved of responsibility therefor in accordance with the written instructions of the Contracting Officer. To the extent directed by the Contracting Officer, the Contractor shall identify Government property by marking, tagging, or segregating in such manner as to clearly indicate its ownership by the Government. (e) The Government property shall, unless otherwise provided herein or approved by the Contracting Officer, be used only for the performance of this contract. (f) The Contractor shall maintain and administer, in accordance with sound industrial practice, a program for the utilization, maintenance, repair, protection, and preservation of Government property so as to assure its full availability and usefulness for the performance of this contract. The Contractor shall take all reasonable steps to comply with all appropriate directions or instructions which the Contracting Officer may prescribe as reasonably necessary for the protection of Government property. (g)(1) The Contractor shall not be liable for any loss of or damage to the Government property, or for expenses incidental to such loss or damage, except that the Contractor shall be responsible for any such loss or damage (including expenses incidental thereto): (i) Which results from willful misconduct or lack of good faith on the part of any one of the Contractor's directors or officers, or on the part of any of his managers, superintendents, or other equivalent representatives, who has supervision or direction of: (A) All or substantially all of the Contractor's business; or (B) All or substantially all of the Contractor's operations at any one plant or separate location in which this contract is being performed; or (C) A separate and complete major industrial operation in connection with the performance of this contract. (ii) Which results from a failure on the part of the Contractor, due to the willful misconduct or lack of good faith on the part of any of his directors, officers, or other representatives mentioned in subparagraph (i), above: (A) To maintain and administer, in accordance with sound industrial practice, the program for utilization, maintenance, repair, protection, and preservation of Government property as required by paragraph (f) hereof, or to take all reasonable steps to comply with any appropriate written direction of the Contracting Officer under paragraph (f) hereof; or (B) To establish, maintain, and administer in accordance with paragraph (d) hereof a system for control of Government property. (iii) For which the Contractor is otherwise responsible under the express terms of the clause or clauses designated in the Schedule; (iv) Which results from a risk expressly required to be insured under this contract, but only to the extent of the insurance so required to be procured and maintained, or to the extent of insurance actually procured and maintained, whichever is greater; or (v) Which results from a risk which is in fact covered by insurance or for which the Contractor is otherwise reimbursed, but only to the extent of such insurance or reimbursement. |