CONTRACT CLAUSES AND SOLICITATION PROVISIONS and charge to the Contractor any cost occasioned to the Government that is directly related to the performance of such services; or (ii) terminate this contract for default as provided in the clause of this contract entitled "Default." (c) The Contractor shall provide and maintain an inspection system acceptable to the Government covering the services to be performed hereunder. Records of all inspection work by the Contractor shall be kept complete and available to the Government during the term of this contract and for such longer period as may be specified elsewhere in this contract. (End of clause) 7-1902.5 Payments. In accordance with 7-103.7, insert the clause therein. 7-1902.6 Assignment of Claims. In accordance with 7-103.8, insert the clause therein. 7-1902.7 Federal, State, Local and Foreign Taxes. In accordance with 7-103.10, insert the appropriate clause therein. 7-1902.8 Default. In accordance with 7-103.11, insert the clause therein. 7-1902.9 Disputes. In accordance with 7–103.12, insert the appropriate clause therein. 7-1902.10 Renegotiation. In accordance with 7-103.13, insert the appropriate clause therein. 7-1902.11 Discounts. DISCOUNTS (1971 NOV) In connection with any discount offered, time will be computed from the date of completion of performance of the services or from the date correct invoice or voucher is received in the office specified by the Government, if the latter is later than date of completion of performance. Payment is deemed to be made for the purpose of earning the discount on the date of mailing of the Government check. (End of clause) When SF 33A is used, the above clause will be substituted for subparagraph (b) of clause 9, Discounts (see 16–101.1(ii)). 7-1902.12 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. 7-1902.13 Equal Opportunity. In accordance with 7-103.18(a), insert the clause therein. 7-1902.14 Officials Not To Benefit. Insert the clause in 7–103.19. 7-1902.15 Covenant Against Contingent Fees. Insert the clause in 7-103.20. 7-1902.16 Termination for Convenience of the Government. (a) Except in stevedoring contracts and except as provided in (b) below, insert the appropriate clause in 7-103.21. (b) If it has been reasonably determined that termination for convenience would not result in a claim for anything but the services rendered, the following clause may be used, regardless of contract amount, in lieu of any other termination for convenience clause. See 8-705.1(b). TERMINATION FOR CONVENIENCE OF THE GOVERNMENT (1968 FEB) The Contracting Officer, by written notice may terminate this contract, in whole or in part, when it is in the best interests of the Government. If this contract is so terminated, the Govern 7-1902.16 ARMED SERVICES PROCUREMENT REGULATION CONTRACT CLAUSES AND SOLICITATION PROVISIONS ment shall be liable only for payment in accordance with the payment provisions of this contract for services rendered prior to the effective date of termination. (End of clause) 7-1902.17 Authorization and Consent. Except in contracts for stevedoring services and in accordance with 7-103.22, insert the clause therein. 7-1902.18 Notice and Assistance Regarding Patent and Copyright Infringement. Except in contracts for stevedoring services and in accordance with 7-103.23, insert the clause therein. 7-1902.19 Minority Business Enterprises. In accordance with 1-332, insert the appropriate clause or clauses in 7-104.36. 7-1902.20 Equal Opportunity Pre-Award Clearance of Subcontracts. In accordance with 23-201.4, insert the clause in 7-104.22. 7-1902.21 Listing of Employment Openings. Insert the clause in 7–103.27. 7-1902.22 Pricing of Adjustments. Insert the clause in 7-103.26. 7-1902.23 Time of Delivery. Insert a delivery clause in accordance with 7-104.92. 7-1902.24 Employment of the Handicapped. Insert the clause in 7-103.28. 7-1902.25 Clean Air and Water. In accordance with 1-2302.2, insert the clause in 7-103.29. 7-1903 Clauses To Be Used When Applicable in Fixed Price Service Con tracts. 7-1903.1 Clauses for Fixed Price Service Contracts Involving Construction Work. (a) In accordance with 12-106 and 18-703, insert the clauses in 7-602.23. (b) In accordance with 7-602.20 and 7-602.24, insert the clauses therein in addition to the clause in 7-104.3. 7-1903.2 Workmen's Compensation and War Hazard Insurance Overseas. In accordance with 10-403, insert the clause in 7-104.2(b). 7-1903.3 Notice to the Government of Labor Disputes. In accordance with 7-104.4, insert the clause therein. 7-1903.4 Notice of Radioactive Materials. In accordance with 7-104.80, insert the clause therein. 7-1903.5 Filing of Patent Applications. In accordance with 9–106, insert the clause in 7-104.6. 7–1903.6 Additional Bond Security. If the contract will require the contractor to furnish a bond in connection therewith, insert the clause in 7-103.9. 7-1903.7 Reporting and Refund of Royalties. In accordance with 7-104.8, insert the appropriate clause or clauses therein. 7-1903.8 Rights in Data. In accordance with 7–104.9, insert the appropriate clause, or clauses, therein. 7-1903.9 Ground and Flight Risk. In accordance with 10-404, insert the clause in 7-104.10. 7-1903.10 Military Security Requirements. In accordance with 7-104.12, insert the clause therein. 7-1903.11 Utilization of Small Business Concerns. In accordance with 1-707.3(a) and (b), insert one or both of the clauses in 7-104.14. 7-1903.11 ARMED SERVICES PROCUREMENT REGULATION CONTRACT CLAUSES AND SOLICITATION PROVISIONS 7-1903.12 Examination of Records by Comptroller General. Pursuant to 10 U.S.C. 2313(b), the clause in 7-104.15 shall be inserted in all negotiated contracts in excess of $10,000 including contracts awarded under a total (Small Business Restricted Advertising) or partial set aside, except (i) as provided in 6–704 and 6-1001; and (ii) in contracts or purchase orders for public utility services at rates not in excess of those established for uniform applicability to the general public or at such rates plus reasonable connection charges incident to such services. 7-1903.13 Gratuities. Insert the clause in 7-104.16 except in contracts and purchase orders with foreign governments obligating solely funds other than those contained in Department of Defense Appropriation Acts. 7-1903.14 Convict Labor. In accordance with 7-104.17, inser、 the clause therein. 7-1903.15 Ocean Transport of Government Owned Supplies. In accordance with 7-104.19(a), insert the clause therein. 7-1903.16 Utilization of Labor Surplus Area Concerns. In accordance with 7-104.20, insert the appropriate clause or clauses therein. 7-1903.17 Limitation on Withholding of Payments. In accordance with 7-104.21, insert the clause therein. 7-1903.18 Subcontracts. In accordance with 23-201.1, insert the appropriate clause in 7-104.23. 7-1903.19 Government Property. In accordance with 7-104.24, insert the appropriate clause therein. 7-1903.20 Special Tooling. In accordance with 7-104.25, insert the clause therein. 7-1903.21 Special Test Equipment. In accordance with 7-104.26, insert the clause therein. 7-1903.22 Options. When it is intended to extend the services described in the schedule, insert a clause substantially as follows: OPTION TO EXTEND SERVICES The Government may require the Contractor to continue to perform any or all items of services under this contract within the limits stated in the Schedule. The Contracting Officer may exercise this option, at any time within the period specified in the Schedule, by giving written notice to the Contractor. The rates set forth in the Schedule shall apply to any extension made pursuant to this option provision. (End of clause) Other examples of option clauses appear in 7-104.27. See Section I, Part 15, for specific instructions, prohibitions and procedures. 7-1903.23 Quality Program. In accordance with 7-104.28, insert the clause therein. 7-1903.24 Price Reduction for Defective Cost or Pricing Data. In accordance with 7-104.29, insert the appropriate clause therein. 7-1903.25 Advance Payments. in accordance with Appendix E, Part 4, insert the appropriate clause in 7-104.34. 7-1903.26 Progress Payments. In accordance with E-510.1, insert the appropriate clause in 7-104.35. 7-1903.27 Interest. In accordance with E-620, insert the clause in 7-104.39. 7-1903.27 ARMED SERVICES PROCUREMENT REGULATION CONTRACT CLAUSES AND SOLICITATION PROVISIONS 7-1903.28 Competition in Subcontracting. In accordance with 7-104.40, insert the clause therein. 7-1903.29 Audit by Department of Defense. In accordance with 7-104.41, insert the clause therein. 7-1903.30 Subcontractor Cost and Pricing Data. In accordance with 7-104.42, insert the appropriate clause therein. 7-1903.31 Reserved. 7-1903.32 Communist Areas. In accordance with 7-103.15, insert the clause therein. 7-1903.33 Multi-Year Procurement. In accordance with 1-322.7(m), 1-322.8(c), or 1-322.9(c), insert the appropriate clause set forth below. (a) Limitation of Price and Contractor Obligations. (See 7–104.47(a)). CANCELLATION OF ITEMS—SERVICE CONTRACTS (1974 APR) (a) This clause applies only in the event this contract is awarded on the alternative basis for award described in the Schedule as "Multi-Year Procurement. (b) As used herein, the term "cancellation" means that the Government is canceling, pursuant to this clause, its Program Year requirements for items as set forth in the Schedule for all Program Years subsequent to that in which notice of cancellation is provided. Such cancellation shall occur only if, by the date or within the time period specified in the Schedule, or such further time as may be agreed to, the Contracting Officer (i) notifies the Contractor that funds will not be available for contract performance for any subsequent Program Year; or (ii) fails to notify the Contractor that funds have been made available for performance of the Program Year requirement for the succeeding Program Year. (c) Except for cancellation pursuant to this clause or for termination pursuant to the "Default" clause, any reduction by the Contracting Officer in the quantities called for under this contract shall be considered a termination in accordance with the "Termination for Convenience of the Government" clause of this contract. (d) In the event of cancellation pursuant to this clause, the Contractor will be paid, as consideration therefor, a cancellation charge not to exceed the cancellation ceiling described and separately set forth in the Schedule as being applicable at the time of cancellation. (e) The cancellation charge is intended to cover only expenses incurred by the Prime Contractor or his subcontractor which would have been equitably amortized in the unit prices for the entire multi-year contract period, but which, because of the cancellation are not so amortized. The cancellation charge shall be computed and the claim therefor made as would be applicable under the "Termination for Convenience of the Government" clause of this contract. The Contractor shall submit the claim promptly but in no event later than one year (i) from the date of notification of the nonavailability of funds, if issued pursuant to paragraph (b)(i), or (ii) from the date specified in the schedule by which notification of the availability of additional funds for the next succeeding program year is required to be issued, whichever is earlier, unless one or more extensions in writing are granted by the Contracting Officer, upon request of the Contractor made in writing within such one year period or authorized extension thereof. The claim may include reasonable start-up and other nonrecurring costs such as plant or equipment relocation costs; the costs of special tooling and special equipment; allocable portions of the costs of facilities acquired or established for the conduct of the work, provided such costs have not been charged to the contract through overhead, or otherwise depreciated, and to the extent that it is impracticable for the Contractor to utilize such facilities in the conduct of his commercial work; costs incurred for the assembly training and transportation of a specialized work force to and from the job site; and costs not amortized by the level contract unit price solely because the cancellation had precluded anticipated benefits of Contractor or subcontractor learning. The claim shall not include any amount for: (i) labor, material, or other expenses incurred by the Contractor or its subcontractor for performance of the canceled work; 7-1903.33 ARMED SERVICES PROCUREMENT REGULATION CONTRACT CLAUSES AND SOLICITATION PROVISIONS (ii) any item of cost for which payment has already been made to the Contractor; (iv) the remaining useful commercial life of facilities. Useful commercial life, for this pur- (f) If this contract includes an option to increase quantities in which the period for exercise of the option is limited to the date set forth in the contract for notifying the Contractor that funds are available for the requirement of the next succeeding program year, the Contractor agrees not to include in the price for option quantities any costs of a startup or nonrecurring nature, which costs have been fully provided for in the unit prices of the firm quantities of the Program Years, and further agrees that the prices offered for option quantities will reflect only those recurring costs, and a reasonable profit thereon, which are necessary to furnish the additional option quantites. Therefore, any quantities added to the original contract quantities through exercise of the Government option in the “Option to Increase Quantities” clause of this contract shall not be subtracted from what would otherwise be considered the quantity canceled for the purpose of computing allowable cancellation charges. (End of clause) (c) Limitation of Price and Contractor Obligations-Service Contracts Under Public Law 90-378 or 91-142. In accordance with 1-322.8, insert the following clause. LIMITATION OF PRICE AND CONTRACTOR OBLIGATIONS-SERVICE CONTRACTS UNDER PUBLIC LAW 90-378 OR 91-142 (1976 JUL) (a) This clause applies only in the event this contract is awarded on the alternative basis for award described in the Schedule as "Multi-year Procurement." (b) Funds are available for performance of this contract in the amount specifically described in the Schedule, as available for contract performance. The funds so described at the time of award are not available for contract performance required by and described in the Schedule for any fiscal year (1 October 30 September) other than the first fiscal year. Upon availability to the Contracting Officer of funds for performance of requirements in the next succeeding fiscal year, the Contracting Officer shall notify the Contractor in writing of the amount of funds available for contract performance in the next succeeding fiscal year and the contract shall be modified accordingly. This procedure shall apply for each successive fiscal year. (c) The Government is not obligated to the Contractor for contract performance in any monetary amount in excess of that described in the Schedule or modifications thereto, as available for contract performance in the applicable fiscal year. (d) The Contractor is not obligated to incur costs for the performance required for any fiscal year after the first unless and until he has been notified in writing by the Contracting Officer of the availability of funds in accordance with paragraph (b) of this clause. If so notified, the Contractor's obligation shall be increased only to the extent contract performance is required for the fiscal year for which funds have been made available. (e) In the event of termination pursuant to the "Termination for Convenience of the Government" clause of this contract, the terms "total contract price" as used in that clause refers to the amount available for performance of this contract, as provided for in this clause for the current fiscal year including the applicable amount established as the cancellation ceiling, and the term "work under the contract" as used in that clause refers to the work under fiscal year requirements for which funds have been made available. In the event of termination for default, the Government's rights under this contract shall apply to the entire multi-year requirements. (f) Notification to the Contractor of an increase or decrease in the funds available for performance of this contract as a result of a clause other than this clause (e.g., exercise of an option for increased quantities or the "Changes" clause) shall not constitute the notification contemplated by paragraph (b) of this clause. (End of clause) 7-1903.33 ARMED SERVICES PROCUREMENT REGULATION |