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CONTRACT CLAUSES AND SOLICITATION PROVISIONS

(e) Prior to commencement of the work the Contractor will:

(1) submit in writing his proposals for effectuating this provision for accident prevention; (2) meet in conference with representatives of the Contracting Officer to discuss and develop mutual understandings relative to administration of the over-all safety program.

7-602.43 Government Inspectors.

GOVERNMENT INSPECTORS (1965 JAN)

The work will be conducted under the general direction of the Contracting Officer and is subject to inspection by his appointed inspectors to insure strict compliance with the terms of the contract. No inspector is authorized to change any provision of the specifications without written authorization of the Contracting Officer, nor shall the presence or absence of an inspector relieve the Contractor from any requirements of the contract.

(End of clause)

7-602.44 Commencement, Prosecution and Completion of Work. (a) Except as provided in (b) below, insert the following clause.

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COMMENCEMENT, PROSECUTION AND COMPLETION OF WORK (1965 JAN) The Contractor will be required to commence work under this contract within days after the date of receipt by him of notice to proceed, to prosecute said work diligently, and to complete the entire work ready for use not later than................... The time stated for completion shall include final clean-up of the premises.

(End of clause)

(b) When the completion date is expressed, not in a specified number of days after receipt of notice to proceed, but rather as a calendar day, which date is computed on the basis of the contractor receiving the notice to proceed by a certain day, add the following to the above clause:

The foregoing completion date is based on the assumption that the successful bidder will receive the notice to proceed by The Government will extend the completion date by

the number of calendar days after the above date that the Contractor receives the notice to proceed, except to the extent that the delay in issuance of the notice to proceed results from the failure of the Contractor to execute the contract and give the required performance and payment bonds within the time specified in the bid. (1968 APR)

7-602.45 Contract Drawings, Maps and Specifications.

CONTRACT DRAWINGS, MAPS AND SPECIFICATIONS (1965 JAN)

(a)........... sets (five unless otherwise specified herein) of large scale contract drawings, maps and specifications will be furnished the Contractor without charge except applicable publications incorporated into the technical provisions by reference. Additional sets will be furnished on request at the cost of reproduction. The work shall conform to the following contract drawings and maps, all of which form a part of these specifications and are available in the office of

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CONTRACT CLAUSES AND SOLICITATION PROVISIONS

(b) Omissions from the drawings or specifications or the misdescription of details of work which are manifestly necessary to carry out the intent of the drawings and specifications, or which are customarily performed, shall not relieve the Contractor from performing such omitted or misdescribed details of the work but they shall be performed as if fully and correctly set forth and described in the drawings and specifications.

(c) The Contractor shall check all drawings furnished him immediately upon their receipt and shall promptly notify the Contracting Officer of any discrepancies. Figures marked on drawings shall in general be followed in preference to scale measurements. Large scale drawings shall in general govern small scale drawings. The Contractor shall compare all drawings and verify the figures before laying out the work and will be responsible for any errors which might have been avoided thereby.

(End of clause)

7-602.46 Suspension of Work.

SUSPENSION OF WORK (1968 FEB)

(a) The Contracting Officer may order the Contractor in writing to suspend, delay, or interrupt all or any part of the work for such period of time as he may determine to be appropriate for the convenience of the Government.

(b) If the performance of all or any part of the work is, for an unreasonable period of time, suspended, delayed, or interrupted by an act of the Contracting Officer in the administration of this contract, or by his failure to act within the time specified in this contract (or if no time is specified, within a reasonable time), an adjustment shall be made for any increase in the cost of performance of this contract (excluding profit) necessarily caused by such unreasonable suspension, delay, or interruption and the contract modified in writing accordingly. However, no adjustment shall be made under this clause for any suspension, delay, or interruption to the extent (1) that performance would have been so suspended, delayed, or interrupted by any other cause, including the fault or negligence of the Contractor or (2) for which an equitable adjustment is provided for or excluded under any other provision of this contract.

(c) No claim under this clause shall be allowed (1) for any costs incurred more than 20 days before the Contractor shall have notified the Contracting Officer in writing of the act or failure to act involved (but this requirement shall not apply as to a claim resulting from a suspension order), and (2) unless the claim, in an amount stated, is asserted in writing as soon as practicable after the termination of such suspension, delay, or interruption, but not later than the date of final payment under the contract.

(End of clause)

7-602.47 Rights in Shop Drawings. In accordance with 18–910.1(b), insert the following clause.

RIGHTS IN SHOP DRAWINGS (1966 APR)

(a) Shop drawings for construction means drawings, submitted to the Government by the Construction Contractor, subcontractor or any lower tier subcontractor pursuant to a construction contract, showing in detail (i) the proposed fabrication and assembly of structural elements and (ii) the installation (ie., form, fit, and attachment details) of materials or equipment. The Government may duplicate, use, and disclose in any manner and for any purpose shop drawings delivered under this contract.

(b) This clause, including this paragraph (b), shall be included in all subcontracts hereunder at any tier.

(End of clause)

7-602.47

ARMED SERVICES PROCUREMENT REGULATION

CONTRACT CLAUSES AND SOLICITATION PROVISIONS

7-602.48 Minority Business Enterprises. In accordance with 1-332, insert the appropriate clause or clauses in 7-104.36.

7-602.49 Listing of Employment Openings. Insert the clause in 7-103.27. 7-602.50 Value Engineering (VE). Insert the following clause in all Fixed Price type construction contracts:

VALUE ENGINEERING INCENTIVE (1974 APR)

(a) Application. This clause applies to a Contractor developed and documented Value Engineering Change Proposal (VECP) which:

(i) requires a change to this contract to implement the VECP; and

(ii) reduces the contract price without impairing essential function or characteristics, provided that it is not based solely on a change in deliverable end item quantities. (b) Documentation. As a minimum, the following information shall be submitted by the Contractor with each VECP:

(i) a description of the difference between the existing contract requirement and the proposed change, and the comparative advantages and disadvantages of each; justification where function or characteristics of a work item is being altered; and the effect of the change on the performance of the end item;

(ii) an analysis and itemization of the requirements of the contract which must be changed if the VECP is accepted and a recommendation as to how to make each such change (e.g., a suggested specification revision);

(iii) a separate detailed cost estimate for both the existing contract requirement and the proposed change to provide an estimate of the reduction in costs, if any, that will result from acceptance of the VECP, taking into account the costs of development and implementation by the Contractor (including any amount attributable to subcontracts in accordance with paragraph (f) below);

(iv) a prediction of any effects the proposed change would have on related costs to the Military Department such as Government furnished property costs, and costs of maintenance and operation;

(v) a statement of the time by which a change order adopting the VECP must be issued so as to obtain the maximum cost reduction during the remainder of this contract, noting any effect on the contract completion time or delivery schedule; and

(vi) identification of any previous submission of the VECP, including the dates submitted, the agencies involved, the numbers of the Government contracts involved, and the previous actions by the Government, if known.

(c) Submission. To expedite a determination, VECPs shall be submitted to the Resident Engineer at the worksite with a copy to the Contracting Officer. Proposals shall be processed expeditiously; however, the Government shall not be liable for any delay in acting upon any proposal submitted pursuant to this clause. The Contractor has the right to withdraw, in whole or in part, any VECP at any time prior to acceptance by the Government.

(d) Acceptance. The Contracting Officer may accept, in whole or in part, by contract modification any VECP submitted pursuant to this clause. The Contracting Officer may accept the VECP even though an agreement on price reduction has not been reached, by issuing the Contractor a notice to proceed with the change. Until a notice to proceed is issued or a contract modification applies a VECP to this contract, the Contractor shall remain obligated to perform in accordance with this contract. Contract modifications made pursuant to this clause will so state. The decision of the Contracting Officer as to the acceptance of any VECP under this contract shall be final and shall not be subject to the "Disputes" clause of this contract.

(e) Sharing. If a VECP submitted by the Contractor pursuant to this clause is accepted, the contract price shall be adjusted without regard to profit in accordance with the following provisions:

(i) Definition:

(A) Instant contract savings to the Contractor (ICS) are the estimated reduction in the Contractor's cost of performance resulting from the acceptance of the VECP. The proposed cost reduction includes estimated allowable Contractor

58-110 O 7723

7-602.50

ARMED SERVICES PROCUREMENT REGULATION

CONTRACT CLAUSES AND SOLICITATION PROVISIONS

development and implementation costs (CC). The Contractor's development and implementation costs include any subcontractor development and implementation costs (see (f) below). For purposes of this clause, Contractor development costs are those costs incurred after the Contractor has identified a specific VE project and prior to acceptance and implementation by the Govern

ment.

(B) Government Costs (GC) are those DoD costs which directly result from development and implementation of the VECP, such as test and evaluation of the VECP.

(ii) Calculations and Actions. Multiply ICS by 45% and GC by 55%. Add these two results, e.g., (.45 ICS plus .55 GC) and subtract from the contract price.

(f) Subcontracts. The Contractor shall include appropriate VE arrangements in any subcontract of $50,000 or greater, and may include such arrangements in contracts of lesser value. To compute any adjustment in the contract price under paragraph (e) above, the Contractor's cost of development and implementation of a VECP which is accepted under this contract shall include any development and implementation costs of a subcontractor, and any VE incentive payments to a subcontractor, which clearly pertain to such VECP. However, no such payment or accrual to a subcontractor will be permitted, either as a part of the Contractor's development or implementation costs or otherwise, to reduce the Government's share.

(g) Data. The Contractor may restrict the Government's right to use any sheet of a VECP or of the supporting data, submitted pursuant to this clause, in accordance with the terms of the following legend if it is marked on such sheet:

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This data furnished pursuant to the Value Engineering Incentive clause of contract shall not be disclosed outside the Government, or duplicated, used, or disclosed, in whole or in part, for any purpose other than to evaluate a VECP submitted under said clause. This restriction does not limit the Government's right to use information contained in this data if it is or has been obtained, or is otherwise available, from the Contractor or from another source, without limitations. If such a VECP is accepted by the Government under said contract after the use of this data in such an evaluation, the Government shall have the right to duplicate, use, and disclose any data reasonably necessary to the full utilization of such VECP as accepted, in any manner and for any purpose whatsoever, and have others so do."

In the event of acceptance of a VECP, the Contractor hereby grants to the Government all rights to use, duplicate or disclose, in whole or in part, in any manner and for any purpose whatsoever, and to have or permit others to do so, any data reasonably necessary to fully utilize such VECP.

(End of clause)

7-602.51 Employment of the Handicapped. Insert the clause in 7-103.28. 7-602.52 Clean Air and Water. In accordance with 1-2302.2, insert the clause in 7-103.29.

7-603 Clauses for Fixed-Price Construction Contracts To Be Used When Applicable.

7-603.1 Notice to Government of Labor Disputes. In accordance with 7-104.4, insert the clause therein.

7-603.2 Communist Areas. In accordance with 6-403, insert the clause in 7-103.15.

7-603.3 Filing of Patent Applications. In accordance with 9-106, insert the clause in 7-104.6.

7-603.4 Reporting and Refunding of Royalties. In accordance with 9-110(d), 9-111, and 18-909, insert the appropriate clause or clauses in 7-104.8.

7-603.5 Contract Prices-Bidding Schedule. Insert the following clause in contracts containing only unit prices for specified items.

7-603.5

ARMED SERVICES PROCUREMENT REGULATION

CONTRACT CLAUSES AND SOLICITATION PROVISIONS

CONTRACT PRICES-BIDDING SCHEDULE (1968 APR)

Payment for the various items listed in the Bidding Schedule shall constitute full compensation for furnishing all plant, labor, equipment, appliances, and materials, and for performing all operations required to complete the work in conformity with the drawings and specifications. All costs for work not specifically mentioned in the Bidding Schedule shall be included in the contract prices for the items listed.

(End of clause)

7-603.6 Military Security Requirements. In accordance with 7-104.12, insert the clause therein.

7-603.7 Examination of Records by Comptroller General. In accordance with 7-104.15, insert the clause therein.

7-603.8 Priorities, Allocations, and Allotments. In accordance with 7-104.18, insert the clause therein.

7-603.9 Subcontracts. In accordance with 23-201.1, insert the clause, modified as appropriate, in 7-104.23.

7-603.10 Required Insurance. In accordance with 10–405, insert the clause in 7-104.65 or the following clause. The number of days to be inserted in the following clause shall be that prescribed by the law of the state in which the contract is to be performed. Where no time limit is specified by state law, a minimum of 10 days shall be inserted.

REQUIRED INSURANCE (1968 APR)

(a) The Contractor shall procure and maintain during the entire period of his performance under this contract the following minimum insurance.

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(b) Prior to the commencement of work hereunder, the Contractor shall furnish to the Contracting Officer a certificate or written statement of the above required insurance. The policies evidencing required insurance shall contain an endorsement to the effect that cancellation or any material change in the policies adversely affecting the interests of the Government in such insurance shall not be effective until days after written notice thereof to the Contracting Officer.

(c) The Contractor agrees to insert the substance of this clause, including this paragraph (c), in all subcontracts hereunder.

(End of clause)

7-603.11 Price Reduction for Defective Cost or Pricing Data. In accordance with 7-104.29, insert the clause therein.

7-603.12 Workmen's Compensation and War Hazard Insurance Overseas. In accordance with 10-403, insert the clauses in 7-104.2(a) and/or 7-104.2(b) depending on whether all contract employees are subject to the Defense Base Act or whether the Act has been waived as to all or part of the contract employees. Also insert the clause Reimbursement for War Hazard Losses in 7-104.2(c) and the language at 10-502(b) and (c) according to the instructions stated in those paragraphs.

7-603.13 Aircraft, Missile, and Space Vehicle Accident Reporting and Investigation. In accordance with 7-104.81, insert the clause therein.

7-603.14 Advance Payments. In accordance with Appendix E, Part 4, insert the clause in 7-104.34.

7-603.14

ARMED SERVICES PROCUREMENT REGULATION

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