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CONTRACT CLAUSES AND SOLICITATION PROVISIONS

F.O.B. ORIGIN—MINIMUM SIZE OF SHIPMENTS (1968 JUN)

The Contractor agrees that shipment will be made in carload and truckload lots when the quantity to be delivered to any one destination in any delivery period pursuant to the contract schedule of deliveries is sufficient to constitute a carload or truckload shipment, except as may otherwise be permitted or directed in writing by the Contracting Officer. The agreed weight of a carload or truckload will be the highest applicable minimum weight which will result in the lowest freight rate (or per car charge) on file or published in common carrier tariffs or tenders as of date of shipment. In the event the total weight of any scheduled quantity to a destination is less than the highest carload/truckload minimum weight, the Contractor agrees to ship such scheduled quantity in one shipment. The Contractor shall be liable to the Government for any increased costs to the Government resulting from failure to comply with the above requirements. This liability shall not attach if supplies are outsized or of such nature they cannot be loaded at the highest minimum weight bracket.

(End of clause)

7-104.73 Loading, Blocking and Bracing of Freight Car Shipments. In accordance with 19–211(a), insert the following clause.

LOADING, BLOCKING AND BRACING OF FREIGHT CAR SHIPMENTS (1975 OCT)

Upon receipt of shipping instructions, as provided in this contract, the supplies to be included in any carload shipment by rail shall be loaded, blocked and braced by the Contractor in accordance with the standards published at the time of such shipments by the Association of American Railraods. Shipments, for which the Association of American Railroads has published no such standards, shall be loaded, blocked and braced in accordance with standards established by the shipper as evidenced by written acceptance of an authorized representative of the carrier. The Contractor shall be liable for payment of any damage to any supplies caused by the failure to load, block and brace in accordance with acceptable standards set forth herein. A copy of the appropriate pamphlet of the Association of American Railroads may be obtained from that Association.

(End of clause)

7-104.74 Shipments to Ports-Clearance and Documentation Requirements. In accordance with 19-213.2, insert the following clause.

SHIPMENTS TO PORTS-CLEARANCE AND DOCUMENTATION REQUIREMENTS (1974 APR)

(a) All shipments to water or air ports for transshipment to overseas destinations are subject to the following, unless clearance and documentation requirements have been expressly delegated to the Contractor.

(b) At least ten (10) days prior to shipping cargo to a water port, the Contractor shall obtain an Export Release from the Government transportation office for:

(i) Each shipment weighing 10,000 pounds or more, and

(ii) Each shipment weighing less than 10,000 pounds, if the cargo either:

(A) is classified TOP SECRET, SECRET, or CONFIDENTIAL,

(B) will require exclusive use of a motor vehicle,

(C) will occupy full visible capacity of a railway car or motor vehicle,

(D) is less than a carload or truckload, but will be tendered as a carload or truckload,

(E) is to be shipped to an ammunition outloading port for water shipment; or

(iii) Each shipment weighing less than 10,000 pounds if the cargo consists of:

(A) narcotics,

(B) perishable biological material,

(C) vehicles to be offered for driveway service,

(D) explosives, or other dangerous articles classified as A, B, or C explosives,
(E) poisons, classes A, B, or C, or

7-104.74

ARMED SERVICES PROCUREMENT REGULATION

CONTRACT CLAUSES AND SOLICITATION PROVISIONS

(F) radioactive material, as defined in Title 49, Code of Federal Regulations, Parts 170-189.

(c) The contractor is cautioned not to order railway cars or motor vehicles for loading until an Export Release has been received.

(d) If the Contracting Officer directs delivery within a shorter period than ten (10) days, the Contractor shall advise the transportation office of the date on which the cargo will be ready for shipment.

(e) At least five (5) days prior to shipping cargo to either a water port or an air port (regardless of the weight, security classification, or the commodity description) the Contractor shall provide the Government transportation office the information shown in (f) below to permit preparation of a Transportation Control and Movement Document (TCMD).

(f) When applying for the Export Release in (b) above or when providing information for preparation of the TCMD (e) above, the Contractor shall furnish:

(i) the proposed date or dates of shipment,

(ii) number and type of containers,

(iii) gross weight and cube of the shipment,

(iv) number of cars or trucks which will be involved,

(v) the Transportation Control Number(s) (TCN) as required for marking under MILSTD-129, and

(vi) proper shipping name as specified in Title 46, Code of Federal Regulations, Subpart 146.04 - .05, for all items classified as dangerous substances as required for marking under MIL-STD-129.

(g) All movement documents (Government or commercial bills of lading or other delivery documents) shall be annotated by the Contractor with:

(i) the Transportation Control Number, Consignor Code of activity directing the shipment, i.e., cognizant contract administration office, purchasing office when contract administration has been retained, or a contractor specifically delegated MILSTAMP responsibilities in the contract, whichever is appropriate, Consignee Code, and Transportation Priority for each shipment unit.

(ii) Export Release Number and valid shipping period, if stated. (If expired, the Contractor shall request a renewal.) and

(iii) the cubic foot measurement of each shipment unit.

(h) All annotations on the movement documents shall be made in the "Description of Articles" space except, on Government bills of lading the Export Release number and shipping period shall be entered in the space entitled "Traffic Control No.".

(i) The Contractor will (1) mail a copy of the commercial bill of lading or other movement document to the transshipment point and (2) give a copy of the commercial bill of lading or other movement document to the carrier for presentation to the transshipment point with delivery of the shipment.

(End of clause)

7-104.75 Diversion of Shipment Under FOB Destination Contracts. In accordance with 19-215, insert the following clause.

DIVERSION OF SHIPMENT UNDER F.O.B. DESTINATION CONTRACTS (1971 NOV)

(a) When a place of delivery is changed in accordance with the “Changes" clause of this contract, the contract price shall be adjusted pursuant to that clause for any resulting increase or decrease in the cost of performance. No adjustment shall be made for changes in transportation costs when supplies are identically priced for delivery regionally or nationally and the place of delivery is changed within the area to which the identical price applies. In all other cases, price adjustments due to changes in transportation costs shall be determined by comparing the cost of: (i) shipment(s) to the new destination(s) as evidenced by copy of the paid freight bill to be supplied by the Contractor with his invoice; and

(ii) shipment(s) to the original or old destination as evidenced by copy of the appropriate paid freight bill(s) to be supplied by the Contractor, or, in the event no

58-110 O-77 - 12

7-104.75

ARMED SERVICES PROCUREMENT REGULATION

CONTRACT CLAUSES AND SOLICITATION PROVISIONS

shipments were made, as evidenced by the applicable rate of a common or contract carrier.

(b) If shipments to the new destination are made by the Contractor owned or leased truck(s) and/or shipments to the original destination were made or would have been made by Contractor owned or leased truck(s), the Contractor shall so certify and, in making an appropriate adjustment in contract prices for payment purposes, a rate equal to 70 percent of the lowest applicable rate published in common carrier tariffs as of the date of shipment shall be substituted by the Government for the Contractor's actual rate or contemplated transportation costs.

(c) If any or all of the following data are not clearly shown on or available from copies of paid freight bills on each diverted shipment, the Contractor shall supply a statement showing:

(i) full name of the carrier or carriers in the routing,

(ii) number of containers,

(iii) gross shipping weight,

(iv) actual date of shipment, and

(v) freight description for the supplies as indicated in the "National Motor Freight Classification" or the "Uniform Freight Classification" (Rail).

(End of clause)

7-104.76 FOB Destination-Evidence of Shipment. In accordance with 19-208.3, insert the following clause.

F.O.B. DESTINATION—EVIDENCE OF SHIPMENT (1968 JUN)

If this contract is awarded on an f.o.b. destination basis and if transportation is accomplished by:

(i) common carrier, the Contractor agrees to furnish in support of his invoice, a copy of
the signed commercial bill of lading indicating the carrier's receipt of the supplies
covered by the invoice for transportation to the destination specified in the contract;
(ii) parcel post, the Contractor agrees to furnish a certificate of mailing with his invoice;
and

(iii) other than common carrier or parcel post, the Contractor agrees to attach to his in-
voice a receipted copy of the appropriate delivery document showing receipt at the
destination specified in the contract.

(End of clause)

7-104.77 Government Delay of Work.

(a) The clause in (f) below shall be used in all fixed-price supply contracts except that it is optional for use in contracts for commercial items (see 3-807.1(b)) or modified-commercial items.

(b) The clause provides a means for the fair and expeditious administrative settlement of claims arising out of certain delays and interruptions in the contract work caused by the acts, or failures to act, of the contracting officer where the contract does not otherwise specifically provide for an equitable adjustment because of such delay or interruption (e.g., Government-furnished property, changes, etc).

(c) The clause does not authorize the contracting officer to order a suspension, delay or interruption of the work and it shall not be used as the basis for or to justify such an order.

(d) When the contracting officer has notice of an unordered delay or interruption covered by the clause, he will act to end it or take other appropriate action as soon as practicable.

(e) The contracting officer shall retain in the file a record of all negotiations leading to any adjustment made under the clause, including cost or pricing data.

7-104.77

ARMED SERVICES PROCUREMENT REGULATION

CONTRACT CLAUSES AND SOLICITATION PROVISIONS

(f) The clause:

GOVERNMENT DELAY OF WORK (1968 SEP)

(a) If the performance of all or any part of the work is delayed or interrupted by an act of the Contracting Officer in the administration of this contract, which act is not expressly or impliedly authorized by this contract, or by his failure to act within the time specified in this contract (or within a reasonable time if no time is specified), an adjustment (excluding profit) shall be made for any increase in the cost of performance of this contract caused by such delay or interruption and the contract modified in writing accordingly. Adjustment shall be made also in the delivery or performance dates and any other contractual provision affected by such delay or interruption. However, no adjustment shall be made under this clause for any delay or interruption (i) to the extent that performance would have been delayed or interrupted by any other cause, including the fault or negligence of the Contractor; or (ii) for which an adjustment is provided or excluded under any other provision of this contract.

(b) No claim under this clause shall be allowed (i) for any costs incurred more than twenty (20) days before the Contractor shall have notified the Contracting Officer in writing of the act or failure to act involved; and (ii) unless the claim, in an amount stated, is asserted in writing as soon as practicable after the termination of such delay or interruption, but not later than the date of final payment under the contract.

(End of clause)

7-104.78 Reserved.

7-104.79 Safety Precautions for Ammunition and Explosives.

(a) The following clause shall be inserted in all contracts which may involve the development, testing, storage, manufacture, modification, renovation, demilitarization, packaging, transportation, handling, disposal, inspection, repair or any other use of ammunition and explosives. The terms "ammunition" and "explosives" exclude inert components containing no explosives, active chemicals or pyrotechnics. (See 1-323).

SAFETY PRECAUTIONS FOR AMMUNITION AND EXPLOSIVES (1970 SEP)

(a) As used in this clause:

(i) “ammunition" and "explosives" shall have the meaning set forth in DoD Contractors' Safety Manual for Ammunition, Explosives, and Related Dangerous Material, DoD 4145.26M;

(ii) "accident" means an event causing damage or injury involving ammunition or explosives which results in one or more of the following:

(1) one or more fatalities,*

(2) one or more disabling injuries,*

(3) ten or more non-disabling injuries,*

(4) damage to Government property exceeding $10,000,

(5) production interruption exceeding 24 hours.

(b) The Contractor shall comply with the DoD Contractor's Safety Manual for Ammunition, Explosives and Related Dangerous Materials (DoD Manual 4145.26M), in effect on the date of the solicitation for this contract, as it relates to ammunition and explosives, and any other additional or more stringent requirements included in the schedule of this contract.** If the Contracting Officer notifies the Contractor of any noncompliance with such Manual, or schedule provisions, the Contractor shall immediately take corrective action. If the Contractor fails or refuses to take corrective action within the time specified by the Contracting Officer, the Contracting Officer may direct the Contractor to cease performance on all or part of this contract, or until satisfactory corrective action has been taken. Any notification or direction under this paragraph should be in writing or confirmed in writing by the Contracting Officer. The Contracting Officer may at any time remove Government personnel whenever the Contractor is in noncompliance

7-104.79

ARMED SERVICES PROCUREMENT REGULATION

CONTRACT CLAUSES AND SOLICITATION PROVISIONS

with the safety requirements of this clause. Either action by the Contracting Officer shall not entitle the Contractor to an adjustment of the contract price or other reimbursement for resulting increased costs, or to an adjustment of the delivery or performance schedule. However, should direction to cease performance be issued or Government personnel be removed and it is later determined that the Contractor had, in fact, complied with the Manual, or schedule provisions, the Contractor shall be entitled to an equitable adjustment in delivery schedule, in contract price, or both, in accordance with the procedures provided for in the clause of this contract entitled "Changes."

(c) The Contractor shall immediately notify the Contracting Officer after an accident involving ammunition or explosives. The Contractor shall also, in accordance with this contract or as required by the Contracting Officer, conduct an investigation and submit a written report of the accident to the Contracting Officer.

(d) Neither the requirements of this clause nor any act or failure to act by the Government in surveillance or enforcement thereof shall affect or relieve the Contractor of responsibility for the safety of his personnel and his property and for the safety of the general public in connection with the performance of this contract, or impose or add to any liability of the Government for such safety. The Contractor is not entitled to rely on the requirements of this clause or on any Government surveillance or enforcement thereof, or lack thereof, or granting of any waiver or exemption in accordance with DoD 4145.26M in discharging the Contractor's responsibility.

(e) The Contractor shall insert the substance of this clause, including this paragraph (e), with appropriate changes in the designation of the parties, in every subcontract hereunder which involves ammunition and explosives as defined in (a) above.

(f) Nothing contained herein shall relieve the Contractor from complying with applicable federal, state and local laws, codes, ordinances and regulations (including the obtaining of licenses and permits) in connection with the performance of this contract.

(End of clause)

• As defined in American National Standards Institute, Safety Standard, entitled "USA Standard Method of Recording and Measuring Work Injury Experience, Z16.1," in effect on the date of the solicitation.

** The Contracting Officers shall not reference in the schedule of the contract ammunition and explosive safety publications of DoD components in their entirety. Contracting Officers shall select and identify in the schedule of the contract applicable paragraphs or portions of such publications. Where contract performance will occur on a military installation, Contracting Officers may also include necessary regulations of the installation covering ammunition and explosives applicable to performance on the installation.

(b) In contracts involving shipments of ammunition and explosives by military aircraft or to an aerial port of embarkation, insert the following paragraph:

(g) The Contractor shall comply with the requirements for a shipper's certificate set forth in the manual entitled "Packaging and Handling of Dangerous Materials for Transportation by Military Aircraft" (U.S. Government Printing Office Catalog Number D 301.7:71 / 4 / 2, also identified as AFM 71-4 / TM-38–250 / NAVAIR 15-03-500 / MCO P4030.19 / DSAM 4145.3).

7-104.80 Notice of Radioactive Materials. Insert the following clause in all contracts for items, components thereof, and materials which are radioactive in which the radioactivity per gram is greater than 0.002 microcuries. Such contracts include, but are not limited to, contracts for aircraft, ammunition, missiles, vehicles, electronic tubes, instrument panel gauges, compasses and identification markers.

7-104.80

ARMED SERVICES PROCUREMENT REGULATION

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