CONTRACT CLAUSES AND SOLICITATION PROVISIONS

7-704.15 Indemnification of the Government. Insert the clause in 7-702.20, deleting the phrase "Except as provided in the 'Insurance Liability to Third Persons' clause" in the first sentence.

7-704.16 Notice of Use of the Facilities. Insert the clause in 7-702.23. 7-704.17 Termination of the Use of the Facilities. Insert the clause in 7-702.24.

7-704.18 Period of This Contract. Insert the clause in 7-702.25. 7-704.19 Disposition of the Facilities. Insert the clause in 7-702.26.

7-704.20 Failure To Perform. Insert the clause in 7-702.27, except that the phrase "Subject to the provisions of the clause hereof entitled 'Excusable Delays'," shall be deleted in paragraph (a).

7-704.21 Disputes. Insert the clause in 7-103.12.

7-704.22 Military Security Requirements. In accordance with 7-702.29, insert the clause called for therein except that “ASPR 7–702.4" shall be substituted for "this contract" in the second sentence of paragraph (c).

7-704.23 Assignment of Claims. In accordance with 7-103.8, insert the clause therein.

7-704.24 Officials Not To Benefit. Insert the clause in 7-103.19.

7-704.25 Gratuities. In accordance with 7-104.16, insert the clause therein. 7-704.26 Covenant Against Contingent Fees. Insert the clause in 7-103.20. 7-704.27 Payment for Overtime Premiums. In accordance with 12-102.4, insert the clause in 7-203.27.

7-704.28 Convict Labor. In accordance with 12-202 and 12-203, insert the clause in 7-104.17.

7-704.29 Equal Opportunity. In accordance with 12-804, insert the applicable clause in 7-103.18.

7-704.30 Contract Work Hours and Safety Standards Act-Overtime Compensation. In accordance with 12-301, 12-302, and 12-306, insert the clauses in 7-103.16.

7-704.31 Supersedure.

SUPERSEDURE (1964 SEP)

(a) Facilities heretofore provided to the Contractor pursuant to the contracts specified in the Schedule shall become subject to the terms of this contract upon its effective date. The terms of the contracts by which such Facilities may have been provided to the Contractor are hereby superseded with respect to such Facilities, except for rights and obligations which may have accrued under such other contract prior to the effective date hereof.

(b) Each item of Facilities hereafter provided to the Contractor under any contract which so specifies shall become subject to the terms of this contract upon the completion of its construction, acquisition, and installation, or upon its availability for use, whichever first occurs, except as otherwise provided in the contract or other document by which such Facilities are provided to the Contractor.

(End of clause)

7-704.32 Price Reduction for Defective Cost or Pricing Data. In accordance with 7-104.29, insert the appropriate clause therein.

7-704.33 Audit by Department of Defense. In accordance with 7-104.41(a), insert the clause therein as amended by 7-104.41(b).

7-704.33

ARMED SERVICES PROCUREMENT REGULATION

CONTRACT CLAUSES AND SOLICITATION PROVISIONS

7-704.34 Subcontractor Cost and Pricing Data. In accordance with 7–104.42, insert the appropriate clause therein.

7-704.35 Competition in Subcontracting. In accordance with 7-104.40, insert the clause therein.

7-704.36 Bills of Lading Covering Shipments To or From Contractor's Plant. In accordance with the requirements of 19-217.1(b), insert the clause in 7-203.14.

7-704.37 Listing of Employment Openings. Insert the clause in 7-103.27. 7-704.38 Employment of the Handicapped. Insert the clause in 7-103.28. 7-704.39 Clean Air and Water. In accordance with 1-2302.2, insert the clause in 7-103.29.

7-705 Clauses To Be Used When Applicable.

7-705.1 Rights in Data. In accordance with 7-104.9, insert the appropriate clause, or clauses, therein. Particular attention shall be given to obtaining data when data are necessary to the use or disposal of facilities.

7-705.2 Filing of Patent Applications. In accordance with 9–106, insert the clause in 7-104.6.

7-705.3 Priorities, Allocations, and Allotments. In accordance with 1-307.2, insert the clause in 7-104.18.

7-705.4 Transfer of Title to the Facilities. In accordance with 4-116.4, the following clause may be inserted in facilities contracts.

TRANSFER OF TITLE TO THE FACILITIES (1964 SEP)

Notwithstanding the provisions of the clause of this contract entitled “Title", the Contracting Officer may at any time during the term of this contract, or upon completion or termination, transfer title to equipment to the Contractor upon such terms and conditions as may be agreed upon; provided, that the Contractor shall not under any Government contract, or subcontract thereunder, charge for any depreciation, amortization, or use of such equipment as is donated under this clause. Upon the transfer of title to equipment under this clause, such equipment shall cease to be Government property.

(End of clause)

7-705.5 Labor Standards for Construction Work. Except as provided in 18-703.3 and 18-703.4, insert the clauses in 7-602.23 and 7-603.26 if the contract involves construction as described in 12-106.1 and 18-701. If such construction work may be required but it is not certain, insert the following clause. (See 18-704.2(1) with regard to the Contracting Officer's responsibility for obtaining wage determinations.)

LABOR STANDARDS FOR CONSTRUCTION WORK (1974 APR)

(a) In the event that construction, alteration, or repair (including painting and decorating) of public buildings or public works is to be performed hereunder, the Contractor shall comply with the following listed clauses:

(i) "Davis-Bacon Act (40 U.S.C. 276a to a7)," 7-602.23(a)(i);

(ii) "Contract Work Hours and Safety Standards Act-Overtime Compensation (40 U.S.C. 327-333)," 7-602.23(a)(ii);

(iii) "Apprentices and Trainees," 7–602.23(a)(iii);

(iv) "Payrolls and Basic Records," 7–602.23(a)(iv);

(v) "Compliance With Copeland Regulations," 7–602.23(a)(v);

(vi) "Withholding of Funds" 7-602.23(a)(vi);

7-705.5

ARMED SERVICES PROCUREMENT REGULATION

CONTRACT CLAUSES AND SOLICITATION PROVISIONS

(vii) "Subcontracts," 7-602.23(a)(vii);

(viii) "Contract Termination - Debarment," 7-602.23(a)(viii); and

(ix) "Disputes Concerning Labor Standards," 7-603.26.

(b) Upon determination by the Contracting Officer that the Davis-Bacon Act is applicable to any item of work to be performed hereunder, a determination of the prevailing wage rates and the clauses referenced in paragraph (a) above shall be incorporated into the contract in their entirety by modification.

(c) No construction, alteration, or repair (including painting and decorating) of public buildings or public works shall be performed under this contract without incorporation of the wage determination and clauses required in paragraph (b) above unless the Contracting Officer authorizes the start of work because of unusual or emergency situations.

(End of clause)

7-705.6 Management Systems Requirements. In accordance with 16–827.1, insert the clause in 7-104.50.

7-705.7 Improvements to Buildings or Land Owned by the Government. When necessary to assure that Government buildings or land will not be modified in a manner detrimental to the interests of the Government, the following clause shall be inserted.

IMPROVEMENTS TO BUILDING OR LAND OWNED BY THE GOVERNMENT (1964 SEP) (a) The Contractor shall not construct or make, at its expense, any fixed improvement to, or structural alteration in the nature of, buildings or land owned or leased by the Government, without prior written approval of the Contracting Officer.

(b) For the purposes of paragraph (a), the terms "fixed improvement” and “structural alteration" mean any improvement to or alteration in the nature of the buildings or land which, after completion, cannot be removed without substantial loss of value or damage to the premises. Such terms do not include foundations for production equipment.

(End of clause)

7-705.8 Patent Rights. In accordance with 9-107.5 and 9-107.6, insert the clause in 7-302.23(a) or (b), with modifications as appropriate. The percentage amount specified to be withheld under paragraph (g) of the Title clause and in paragraph (f) of the License clause may be changed from "five percent (5%)" to "one percent (1%)." When the contractor is an educational or nonprofit institution, paragraphs (g) and (f) of those clauses may be omitted because no withholding of funds provision is required. See Section IX, Part 1.

7-705.9 Required Source for Jewel Bearings. In accordance with 1–2207.2 insert the clause in 7-104.37.

7-705.10 Changes to Make-or-Buy Program. In accordance with 3-902.4, insert the clause in 7-204.20(a).

7-705.11 Interest. In accordance with E-620, insert the clause in 7-104.39. 7-705.12 Negotiated Overhead Rates. When negotiated overhead rates are to be used in contracts with concerns other than educational institutions pursuant to Section III, Part 7, insert the clause in 7-204.16(a) changing "Part 2 of Section XV" in paragraph (c) of the clause to "Part 5 of Section XV." When negotiated overhead rates (postdetermined or predetermined) are to be used in contracts with educational institutions, pursuant to that Part, insert the appropriate clause in 7-204.16(b) or 7-403.9 changing “Section XV, Part 3" in paragraph (c) of the clause to "Section XV, Part 5." See 3-704.1 and 3-704.2.

7-705.12

ARMED SERVICES PROCUREMENT REGULATION

CONTRACT CLAUSES AND SOLICITATION PROVISIONS

7-705.13 Advance Payments. In accordance with Appendix E, Part 4, insert the clause in 7-104.34 but substitute paragraphs (3) and (5) from the clause in 7-204.25 for paragraph (3) and (5) of the clause in 7-104.34.

7-705.14 General Services Administration Supply Sources. In accordance with 7-204.28, insert the clause therein, deleting the last sentence.

7-705.15 Order of Precedence. In accordance with 3-501(b)Sec.C(xxxi), insert the clause in 7-2003.41.

7-705.16 Duty-Free Entry. In accordance with 6-603.2 and 6-603.3, insert either or both of the clauses in 7-104.31.

7-705.17 United States Products and Services (Balance of Payments Program). In accordance with 6-806.4, insert the clause in 7-2003.53.

7-705.18 Identification of Expenditures in the United States. In accordance with 6-807, insert the clause in 7-104.58.

7-705.19 Reserved.

7-705.20 Insurance. In accordance with 10-405 and 10-501, insert the clause in 7-104.65.

7-705.21 Use of Excess and Near-Excess Currency. In accordance with 6-1110, insert the clause in 7-104.66.

7-705.22 Facilities Equipment Modernization. Insert the following clause in any bilateral modification of an existing facilities contract, and in any new facilities contract, under which the Government provides modernized or replacement facilities.

FACILITIES EQUIPMENT MODERNIZATION (1976 JUL)

(a) In consideration of the Government providing, as set forth in this contract, for modernization or replacement of Government-owned equipment being used or to be used by the Contractor in the performance of Government firm-fixed-price contracts or subcontracts, or fixed-price contracts or subcontracts with economic price adjustment provisions, the Contractor agrees to return | to the Government the net cost savings actually realized from the use of the modernized or replacement equipment on all such contracts or subcontracts entered into prior to the expiration of the three-year period following the date such equipment is placed in production, except (i) formally advertised contracts entered into subsequent to the date such equipment is placed in production, and (ii) contracts or subcontracts which specifically provide that they have been priced on the basis of anticipated use of such equipment.

(b)(1) The Contractor shall maintain adequate records for the implementation of this clause. The Contractor shall make such records available at its office for inspection, audit or reproduction by any authorized representative of the Contracting Officer. Within fourteen (14) months after the modernized or replacement equipment has been placed in production, the Contractor shall file with the Administrative Contracting Officer cognizant of the Government production and research property four (4) completed copies of DD Form 1651 (Industrial Equipment Modernization Program-Post Analysis Report).

(2) When the Contractor authorizes a subcontractor to use the modernized or replacement equipment, he shall require the subcontractor to maintain records, to make them and additional information available to the Contracting Officer, and to file four (4) copies of DD Form 1651, in the manner prescribed in (1) above.

(c) Records shall generally be acceptable if they are maintained for the equipment under established accounting practices and permit a fair estimation of the net cost savings realized. Net cost savings realized shall be determined by a comparison of the Contractor's cost experience in the operation of the equipment before and after modernization.

(d) Amounts due the Government under this clause shall be returned by the Contractor, as directed by the Administrative Contracting Officer by:

7-705.22

ARMED SERVICES PROCUREMENT REGULATION

CONTRACT CLAUSES AND SOLICITATION PROVISIONS

(i) credits to, or adjustment of the prices of, the related contracts, subcontracts, or purchase orders benefiting from the use of the modernized or replacement equipment; or

(ii) payment to the Government through the Contracting Officer having cognizance of the Government production and research property; or

(iii) such other means as may be mutually agreed to.

(End of clause)

7-705.23 Aircraft, Missile, and Space Vehicle Accident Reporting and Investigation. In accordance with 7-104.81, insert the clause therein.

7-705.24 Safety Precautions for Ammunition and Explosives. In accordance with 7-104.79, insert the clause therein.

7-705.25 Notice of Radioactive Materials. In accordance with 7–104.80, insert the clause therein.

7-705.26 Procurement of Miniature and Instrument Ball Bearings. In accordance with 1-2207.3, insert the clause in 7-104.38.

7-705.27 Payment of Interest on Contractors' Claims. In accordance with 1-333, insert the clause in 7-104.82.

7-705.28 Cost Accounting Standards. In accordance with 3-1204, insert the clauses in 7-104.83.

7-705.29 Term of Performance or Delivery Date. When applicable, a clause in accordance with 7-104.92 may be used.

7-705.30 Preference for United States Flag Air Carriers. In accordance with 1-336.1(b), insert the clause in 7-104.95.

7-705.31 Privacy Act. In accordance with 1-327.1, insert the clause in 7-104.96.

7-705.32 Preference for Domestic Specialty Metals. In accordance with 7-104.93, insert the applicable clause therein.

7-706 Facilities Use Contracts With Nonprofit Educational Institutions. As an alternative to the clauses in 7-704, the following clauses, in their entirety, may be used in any facilities use contract with nonprofit educational institutions.

7-706.1 Purpose.

PURPOSE (1968 SEP)

This Facilities Use Contract is designed specifically for nonprofit educational institutions to set forth provisions for the use and accountability of Government facilities furnished or acquired under related procurement contracts identified elsewhere herein. There are no funds provided under this contract. Costs incurred for acquisition, maintenance, repair or replacement, disposition or for other purposes in connection with the facilities accountable hereunder will be subject to the reimbursement provisions of related procurement contracts; provided, however, that should no procurement contract be available for reimbursement of such costs, this contract may be appropriately modified to provide for such reimbursement.

(End of clause)

7-706.2 Accountable Facilities.

ACCOUNTABLE FACILITIES (1968 SEP)

The facilities accountable under this contract are identified in the Contractor's property control system and include those facilities furnished or acquired under related procurement contracts issued by the purchasing offices which are specifically named in the Schedule hereto.

(End of clause)

7-706.2

ARMED SERVICES PROCUREMENT REGULATION