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Definitions.
Changes.
Extras.

Variation In quantity.
Inspection.

Responsibility for supplies.
Payments.

Assignment of «-i«<m«
Additional bond security.
Examination of records.
Default.
Disputes.

Notice and assistance regarding patent and copyright infringement.

Buy American Act.
Convict labor.
Contract Work Hours Standards

Act—overtime compensation. Walsh-Healey Public Contracts

Act.

Equal opportunity.
Officials not to benefit.
Covenant against contingent

fees. Utilization of small business

concerns.

Federal, State, and local taxes.
Liquidated damages.
Humane slaughter of livestock.
Utilization of concerns In labor

surplus areas. Small business subcontracting

program.

Labor surplus area subcontracting program. Termination for convenience of

the Government. Price reduction for defective

cost or pricing data. Audit and records. Subcontractor cost and pricing

data. Advance payments.

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Contracts

-7.600 Scope of subpart.

—7.601 Required clauses.

-7.601—1 Clauses in standard construction contract forms.

-7.603 Additional standardised clauses. •7.803-1 Price adjustment for suspension, delay, or Interruption of the work.

1-7.602-2 Termination for convenience of the Government. In contracts estimated to exceed $10.000.

1-7.602-3 Termination for convenience of the Government. In contracts estimated not to exceed $10.0000.

1-7.603-4 Price reduction for defective cost or pricing data.

-7.602-5 Audit and records.

-7.602-6 Subcontractor cost and pricing data.

-7.602-7 Examination of records.

-7.602-8 Advance payments.

-7.602—9 Workmen's compensation Insurance (Defense Base Act). 1-7.602-10 Federal. State, and local taxes.

Authority: The provisions of this Part 1-7 Issued under sec. 20S(c). 63 Stat. 390; 40 U.S.C.486(c).

Soubcz: The provisions of this Part 1-7 appear at 29 F R. 10192, July 34. 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 (incluo!ing construction).

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As used throughout this contract, the following terms shall have the meanings 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.

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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: (1) Drawings, designs, or specifications, where the supplies to be furnished are to be specially manufactured for the Government in accordance therewith; (11) method of shipment or packing; and (ill) 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 O tractor for adjustment under this cla' must be asserted within 30 days from date of receipt by the Contractor of i notification of change: Provided, fcouwi That the Contracting Officer, if he dec! that the facts Justify such action, may celve and act upon any such claim asser at any time prior to final payment un this contract. Where the cost of prope made obsolete or excess as a result ol change is Included in the Contractor's ell for adjustment, the Contracting Officer si have the right to prescribe the manner disposition of such property. Failure agree to any adjustment shall be a dlsp concerning a question of fact within meaning of the clause of this contract titled "Disputes." However, nothing In 1 clause shall excuse the Contractor from p ceedlng with the contract as changed.

§ 1-7.101-3 Extras.

Extras

Except as otherwise provided in this tract, no payment for extras shall be m unless such extras and the price then have been authorized in writing by the O tractlng Officer.

§1—7.101—4 Variation in quantity.

Variation In Quantitt

No variation in the quantity of any 11 called for by this contract will be accep unless such variation has been caused conditions of loading, shipping, or pack! or allowances In manufacturing procei and then only to the extent, if any, sped! elsewhere In this contract.

§ 1-7.101-5 Inspection.

Inspection

(a) All supplies (which term through this clause Includes without limitation materials, components, intermediate as* biles, and end products) shall be sub Jed Inspection and test by the Government the extent practicable at all times and pll including the period of manufacture, anc any event prior to acceptance.

(b) In case any supplies or lota of * piles are defective in material or workm ship or otherwise not in conformity i the requirements of this contract, the 0 ernment shall have the right either to re them (with or without Instructions ai their disposition) or to require their I rectlon. Supplies or lots of supplies wl have been rejected or required to be reoted shall be removed, or. If permitted required by the Contracting Officer < reeled In place by and at the expense of Contractor promptly after notice, and not thereafter be tendered for accepti unless the former rejection or requlrea of correction Is disclosed. If the Central falls promptly to remove such supplies ots of supplies which are required to be emoved, or promptly to replace or correct ach supplies or lots of supplies, the Govrnment either (1) may by contract or otherrise replace or correct such supplies and ihirge to the Contractor the cost occasioned toe Government thereby, or (11) may ternlnate this contract for default as provided D the clause of this contract entitled "Deault." Unless the Contractor corrects or eplaces such supplies within the delivery chedule, the Contracting Officer may re[ulre the delivery of such supplies at a retuctlon in price which Ib equitable under he circumstances. Failure to agree to such eduction of price shall be a dispute concernng a question of fact within the meaning if the clause of this contract entitled 'Disputes."

(c) If any Inspection or test Is made by he Government on the premises of the Connctor or a subcontractor, the Contractor rtthout additional charge shall provide all euonable facilities and assistance for the afety and convenience of the Government nspectors In the performance of their tntles. If Government inspection or test Is QAde at a point other than the premises of he Contractor or a subcontractor, It shall ic at the expense of the Government except i otherwise provided In this contract: Pro•ided. That in case of rejection the Governnent shall not be liable for any reduction D value of samples used In connection with uch Inspection or test. All Inspections and esta by the Government shall be performed a such a manner as not to unduly delay the fork. The Government reserves the right

0 charge to the Contractor any additional ost of Government Inspection and test then supplies are not ready at the time such nspectlon and test Is requested by the Conractor or when reinspectlon or retest Is neeultated by prior rejection. Acceptance or ejection of the supplies shall be made as romptly as practicable after delivery, except • otherwise provided In this contract; but illure to Inspect and accept or reject sup>lles shall neither relieve the Contractor rom responsibility for such supplies as are ot In accordance with the contract requirements nor Impose liability on the Governlent therefor.

<d) The Inspection and test by the Govmment of any supplies or lots thereof does ot relieve the Contractor from any responsiUlty regarding defects or other failures to tcet the contract requirements which may e discovered prior to acceptance. Except as thenrlse provided in this contract, acceptDcc shall be conclusive except as regards itent defects, fraud, or such gross mistakes

1 amount to fraud.

(e) The Contractor shall provide and tawtaln an inspection system acceptable > the Government covering the supplies ereunder. Records of all inspection work J 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—7.101—6 Responsibility for supplies.

Responsibility For Supplies

Except as otherwise provided In this contract, (1) 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; (11) 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 officers, agents, or employees of the Government acting within the scope of their employment; and (111) 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.

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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—7.101—8 Assignment of claims.

Insert the clause set forth in § 1-30.703 under the conditions contained therein.

§ 1-7.101-9 Additional bond security.

Additional Bond Security

If any surety upon any bond furnished In connection with this contract becomes unacceptable to the Government, or If any such surety falls to furnish reports as to his financial condition from time to time as requested by the Government, the Contractor shall promptly furnish such additional security as may be required from time to time to protect the Interests of the Government and of persons supplying labor or materials in the prosecution of the work contemplated by this contract.

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§ 1-7.101-10 Examination of records.

Examination or Records

(a) The Contractor agrees that the Comptroller General of the United States or any of his duly authorized representatives shall, until the expiration of three years after final payment under this contract, have access to and the right to examine any directly pertinent books, documents, papers, and records of the Contractor Involving transactions related to this contract.

(b) The Contractor further agrees to Include In all his subcontracts hereunder a provision to the effect that the subcontractor agrees that the Comptroller General of the United States or any of his duly authorized representatives shall, until the expiration of three years after final payment under the subcontract, have access to and the right to examine any directly pertinent books, documents, papers, and records of such subcontractor. Involving transactions related to the subcontract. The term "subcontract" as used in this clause excludes (1) purchase orders not exceeding (2,500 and (11) subcontracts-or purchases orders for public utility services at rates established for uniform applicability to the general public.

The above clause shall be Included in negotiated contracts as provided in §1-3.814-2(6). When Standard Form 32 is used, the form need not be changed to delete the parenthetical sentence preceding paragraph (a) of the clause. § 1-7.101-11 Default.

Insert the clause set forth in § 1-8.707 under the conditions prescribed in I 1-8.700-2(b)(l).

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(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 mall 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 malls 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 appe Pending final decision of a dispute her under, the Contractor shall proceed dll gently with the performance of the contra and in accordance with the Contractli Officer's decision.

(b) This "Disputes" clause does not pr elude consideration of law questions In coi nection with decisions provided for In par graph (a) above: Provided, That nothli In this contract shall be construed as ma.. Ing final the decision of any admlnlstratl official, representative, or board on a que tlon of law.

§ 1-7.101-13 Notice and assistance r garding patent and copyright ii fringement.

Notice And Assistance Regarding Patbi And Copyright Infringement

(a) The Contractor shall report to tl Contracting Officer, promptly and In reasoi able written detail, each notice or claim < patent or copyright infringement based c the performance of this contract of which tl Contractor has knowledge.

(b) In the event of any claim or su against the Government on account of ai alleged patent or copyright infrlngemei arising out of the performance of this coi tract or out of the use of any supplies fu nlshed or work or services performed hen under, the Contractor shall furnish to tl Government, when requested by the Cox trading Officer, all evidence and Informantin possession of the Contractor pertaining t such suit or claim. Such evidence and li formation shall be furnished at the expen; of the Government except where the Cot tractor has agreed to indemnify the Qoven merit.

The above clause shall be included onl if the amount of the contract exceed $10,000. § 1-7.101-14 Buy American Act.

Insert the clause set forth In § 1-6.104 5 under the conditions contained thereli

§ 1-7.101-15 Convict labor.

Insert the clause set forth In i 1-12.20 under the conditions contained . § 1-12.202.

§ 1-7.101-16 Contract Work Hour Standards Art—overtime compenM tion.

Insert the clause set forth In ! 1-12.30 under the conditions contained' ! 1-12.302.

§ 1-7.101-17 Walsh-Healey Public Con tracts Act.

Insert the clause set forth in i 1-12.601 under the conditions contained ii § 1-12.602.

11-7.101-18 Equal opportunity.

Insert the clause set forth In ! 1-12.103-2 under the conditions contained In •' 1-12.803-1.

{ 1-7.101-19 Officials not to benefit.

Officials Nor To Benefit

So member of or delegate to Congress, or resident commissioner, shall be admitted to u; share or part of this contract, or to an; benefit that may arise therefrom; but this provision snail not be construed to extend to this contract U made with a corporation for lu general benefit.

I 1-7.101-20 Covenant against contingent fees.

Insert the clause set forth in § 1-1.503 under the conditions contained In

I. -: 501.

11-7.101-21 Utilization of small business concerns.

Insert the clause set forth in § 1-1.710J<a> under the conditions and In the manner prescribed therein.

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Liquidated damages.

provision set forth

11-7.101-23

Insert the provision set forth in I .-1315-3 under the conditions and in (be manner prescribed in § 1-1.315.

{ 1-7.101-24 Humane slaughter of livestock.

Insert the clause set forth in § 1-4.605 or in S 1—4.606 under the procedures provided in I 1-4.604.

8 1-7.101—25 Utilization of concerns in labor surplus areas.

Insert the clause set forth in i 1-1.805I'a) under the conditions and In the manner prescribed therein.

I 1—7.101—26 Small business subcontracting program.

Insert the clause set forth in $ 1-1.710M» under the conditions and in the manner prescribed therein.

§ 1-7.101-27 Labor surplus area subcontracting program.

Insert the clause set forth in § 1-1.8053(b) under the conditions and in the manner prescribed therein.

§ 1-7.101-28 Termination for convenience of the Government.

Whenever a termination for convenience clause is to be included, insert either the clause set forth in § 1-8.701 or the clause set forth in § 1-8.705-1, as appropriate, under the conditions prescribed in §§ l-8.700-2(a)(l) and 1-8.700-2(a)(2).

§ 1-7.101-29 Price reduction for defective cost or pricing data.

Insert the appropriate clause set forth in § 1-3.814-1 under the conditions described therein.

§ 1-7.101-30 Audit and records.

Insert the appropriate clause or clauses set forth in § 1-3.814-2 under the conditions described therein.

§ 1-7.101-31 Subcontractor cost and pricing data.

Insert the appropriate clause set forth in § 1-3.814-3 under the conditions described therein.

§1-7.101-32 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.

§1-7.101-33 Progress payments.

When progress payments are to be made in accordance with Subpart 1-30.5, insert the appropriate clause as provided in | 1-30.510.

§ 1—7.101—34 Workmen's compensation insurance (Defense Base Act).

In accordance with the requirements of $ 1-10.403, insert the clause set forth therein.

Subpart 1-7.2—[Reserved!
Subpart 1-7.3—[Reserved!
Subpart 1-7.4—[Reserved!
Subpart 1-7.5—[Reserved!

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