CONTRACT CLAUSES AND SOLICITATION PROVISIONS 7-204.55 Cost/Schedule Control Systems. In accordance with 1-331(h) and 3-501(b) Section C (xlv), insert the clause in 7-104.87. 7-204.56 Engineering Change Proposals (ECP's). In accordance with 26-205, insert the clause in 7-104.89. 7-204.57 Change Order Accounting. In accordance with 26–205, insert the clause in 7-104.90. 7-204.58 Time of Delivery. Insert a clause in accordance with 7-104.92. 7-204.59 Capture and Detention. In accordance with 10-406, insert the clause in 7-104.94. 7-204.60 Preference For United States Flag Air Carriers. In accordance with 1-336.1(b), insert the clause in 7-104.95. 7-204.61 Submission of Commercial Freight Bills to the General Services Administration for Audit. In accordance with 19-403.2(c), insert the following clause. SUBMISSION OF COMMERCIAL FREIGHT BILLS TO THE GENERAL SERVICES ADMINISTRATION FOR AUDIT (1976 FEB) When transportation costs are reimbursed to the Contractor, the Contractor is required to furnish to the General Services Administration - FZATR Chester A. Arthur Building Washington, D. C. 20406 (or to the ACO if specified) individual commercial freight bills (or equivalent shipment data and evidence of payment) for transportation charges in excess of $500.00. (End of clause) 7-204.62 Privacy Act. In accordance with 1-327.1, insert the clause in 7-104.96. 7-204.63 Preference for Domestic Specialty Metals. In accordance with 7-104.93, insert the applicable clause therein. 7-204.63 ARMED SERVICES PROCUREMENT REGULATION CONTRACT CLAUSES AND SOLICITATION PROVISIONS 7-205 Additional Clauses. The following clauses shall be inserted in costreimbursement type supply contracts in accordance with Departmental procedures when it is desired to cover the subject matter thereof in such contracts. 7-205.1 Alterations in Contract. The clause in 7–105.1(a) may be inserted. 7-205.2 Approval of Contract. The clause in 7-105.2 may be inserted. 7-205.3 Title and Risk of Loss. Insert the clause in 7-103.6. 7-205.4 Bill of Materials. In accordance with 7-105.6, insert the clause therein. 7-205.5 Reserved. 7-205.6 Stop Work Orders. The clause in 7-105.3, if modified by changing (i) the words "the "Termination for Convenience' clause of this contract" to "the 'Termination' clause of the contract" and (ii) the words "an equitable adjustment shall be made in the delivery schedule or contract price, or both" to "an equitable adjustment shall be made in the delivery schedule, the estimated cost, the fee, or a combination thereof, and in any other provisions of the contract that may be affected," is authorized for use in any cost-reimbursement type contract under the criteria and in accordance with the instructions in 7-105.3. 7-205.7 Warranty of Technical Data. In accordance with 1-324.6, insert the clause in 7-104.9(o). 7-205.7 ARMED SERVICES PROCUREMENT REGULATION CONTRACT CLAUSES AND SOLICITATION PROVISIONS Part 3-Fixed-Price Research and Development Contracts 7-301 Applicability. As used throughout this Part, the term “fixed-price research and development contract" means any contract (other than a letter contract, a notice of award, or a modification not affecting new procurement) which (i) is entered into at a fixed price in an amount exceeding $2,500 (with or without any provision for price redetermination, economic price adjustment, or | other form of price revision as covered in 3-404), and (ii) is for experimental, developmental, or research work. See 3-402(b) for use of types of contracts for research and development work. 7-302 Required Clauses. The following clauses shall be inserted, as required, in all fixed-price research and development contracts, except as may otherwise be indicated in this Part. 7-302.1 Definitions. Insert the contract clause in 7-103.1. Additional definitions may be included in such clause provided they are not inconsistent with such clause or the provisions of this Regulation. 7-302.2 Payments. PAYMENTS (1959 JUN) The Contractor shall be paid, upon submission of proper invoices or vouchers, the prices stipulated herein for work delivered or rendered and accepted, less deductions, if any, as herein provided. Unless otherwise specified, payment will be made upon acceptance of any portion of the work delivered or rendered for which a price is separately stated in the contract. 7-302.3 Standards of Work. STANDARDS OF WORK (1959 JUN) (End of clause) The Contractor agrees that the performance of work and services pursuant to the requirements of this contract shall conform to high professional standards. (End of clause) 7-302.4 Inspection. (a) The following clause shall be used where the primary contract objective is delivery of end items other than designs, drawings, or reports, except where the contracting officer determines that the use of such clause is impracticable. Where this clause, or this clause as modified in (c) below, is not used, the clause in (b) below shall be used. INSPECTION (1976 JUL) (a) All work under this contract shall be subject to inspection and test by the Government, to the extent practicable, at all times (including the period of performance) and places, and in any event prior to acceptance. The Government through any authorized representative may inspect the premises of the Contractor or any subcontractor engaged in the performance of this contract. (b) The Government may reject any work that is defective or otherwise not in conformity with the requirements of this contract. If the Contractor fails or is unable to correct or to replace such work within the delivery schedule or such later time as the Contracting Officer may authorize, the| Contracting Officer may accept such work at a reduction in price which is equitable under the circumstances. Failure to agree on the reduction in price shall be a dispute concerning a question of fact within the meaning of the clause of this contract entitled "Disputes." 7-302.4 ARMED SERVICES PROCUREMENT REGULATION CONTRACT CLAUSES AND SOLICITATION PROVISIONS (c) If any inspection or test is made by the Government on the premises of the Contractor or a subcontractor, the Contractor shall provide, without additional charge, all reasonable facilities and assistance for the safety and convenience of the Government inspectors in the performance of their duties. If the Government inspection or test is made at a point other than the premises of the Contractor or subcontractor, it shall be at the expense of the Government. All inspections and tests by the Government shall be performed in such a manner as not unduly to delay the work. Final inspection and acceptance or rejection of the work 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 work shall neither relieve the Contractor from responsibility for such of the work as is not in accordance with the contract requirements nor impose liability on the Government therefor. (d) The inspection and test by the Government of any work shall 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 work 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. (End of clause) (b) The following clause shall be inserted in all contracts subject to this Part where the clause in (a) above is not used. INSPECTION (1959 JUN) The Government, through any authorized representatives, has the right, at all reasonable times, to inspect, or otherwise evaluate the work performed or being performed hereunder and the premises in which it is being performed. If any inspection, or evaluation is made by the Government on the premises of the Contractor or a subcontractor, the Contractor shall provide and shall require his subcontractors to provide all reasonable facilities and assistance for the safety and convenience of the Government representatives in the performance of their duties. All inspections and evaluations shall be performed in such a manner as will not unduly delay the work. (End of clause) (c) When it is desired to require contractors to maintain an inspection system in accordance with Military Specification MIL-I-45208 (see 14-303), the clause in (a) above shall be included in the contract, except that the following shall be added as the second sentence of paragraph (e). The inspection system shall be in accordance with the edition of Military Specifications MIL1-45208 in effect on the date of this contract. (1967 AUG) 7-302.5 Assignment of Claims. In accordance with 7-103.8, insert the clause therein. 7-302.6 Examination of Records by Comptroller General. In accordance with 7-104.15, insert the clause therein. 7-302.7 Federal, State, and Local Taxes. In accordance with 11-401, insert the appropriate clause in 7-103.10. 7-302.8 Utilization of Small Business Concerns. (a) In accordance with 1-707.3(a), insert the clause in 7-104.14(a). (b) In accordance with 1-707.3(b), insert the clause in 7-104.14(b). 7-302.8 ARMED SERVICES PROCUREMENT REGULATION CONTRACT CLAUSES AND SOLICITATION PROVISIONS 7-302.9 Default. In accordance with 8-710, insert the following clause. (a) The following clause shall be used in all fixed-price research and development contracts as defined in 7-301, except: (i) as provided in (b) below; and (ii) contracts with educational or nonprofit institutions which are awarded on the basis of no profit. DEFAULT (1969 AUG) (a) The Government may, subject to the provisions of paragraph (c) of this clause, by written Notice of Defaults to the Contractor terminate the whole or any part of this contract in any one of the following circumstances: (i) if the Contractor fails to perform the work called for by this contract within the time(s) specified herein or any extension thereof; or (ii) if the Contractor fails to perform any of the other provisions of this contract, or so fails to prosecute the work as to endanger performance of this contract in accordance with its terms, and in either of these two circumstances does not cure such failure within a period of 10 days (or such longer period as the Contracting Officer may authorize in writing) after receipt of notice from the Contracting Officer specifying such failure. (b) In the event the Government terminates this contract in whole or in part as provided in paragraph (a) of this clause, the Government may procure, upon such terms and in such manner as the Contracting Officer may deem appropriate, work similar to the work so terminated and the Contractor shall be liable to the Government for any excess costs for such similar work; provided, that the Contractor shall continue the performance of this contract to the extent not terminated under the provisions of this clause. (c) Except with respect to defaults of subcontractors, the Contractor shall not be liable for any excess costs if the failure to perform the contract arises out of causes beyond the control and without the fault or negligence of the Contractor. Such causes may include, but are not restricted to, acts of God or of the public enemy, acts of the Government in either its sovereign or contractual capacity, fires, floods, epidemics, quarantine restrictions, strikes, freight embargoes, and unusually severe weather; but in every case the failure to perform must be beyond the control and without the fault or negligence of the Contractor. If the failure to perform is caused by the default of a subcontractor, and if such default arises out of causes beyond the control of both the Contractor and subcontractor, and without the fault or negligence of either of them, the Contractor shall not be liable for any excess costs for failure to perform, unless the supplies or service to be furnished by the subcontractor were obtainable from other sources in sufficient time to permit the Contractor to meet the required delivery schedule or other performance requirements. (d) If this contract is terminated as provided in paragraph (a) of this clause, the Government, in addition to any other rights provided in this clause, may require the Contractor to transfer title and deliver to the Government, in the manner and to the extent directed by the Contracting Officer any of the completed or partially completed work not therefore delivered to, and accepted by, the Government and any other property, including contract rights, specifically produced or specifically acquired for the performance of such part of this contract as has been terminated; and the Contractor shall, upon the direction of the Contracting Officer, protect and preserve property in the possession of the Contractor in which the Government has an interest. The Government shall pay to the Contractor the contract price, if separately stated, for completed work accepted by the Government and the amount agreed upon by the Contractor and the Contracting Officer for (i) completed work for which no separate price is stated, (ii) partially completed work, (iii) other property described above which is accepted by the Government and, (iv) the protection and preservation of property. Failure to agree shall be a dispute concerning a question of fact within the meaning of the clause of this contract entitled "Disputes". The Government may withhold from amounts otherwise due the Contractor for such completed supplies or manufacturing materials such sum as the Contracting Officer determines to be necessary to protect the Government against loss because of outstanding liens or claims of former lien holders. (e) If, after notice of termination of this contract under the provisions of this clause, it is determined for any reason that the Contractor was not in default under the provisions of this clause, or 7-302.9 ARMED SERVICES PROCUREMENT REGULATION |