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§ 7.204-37 Procurement of natural rubber for aircraft tires, tubes, tire recapping, and recapping materials.

In accordance with § 1.323 of this chapter, insert the clause set forth therein.

[29 FR. 9754, July 21, 1964]

§ 7.204-38 Special test equipment.

In accordance with the requirements of $ 13.705 of this chapter, insert the clause set forth therein.

[30 FR. 1736, Feb. 9, 1965]

§ 7.204-39 First article approval.

In accordance with Subpart S, Part 1 of this chapter, insert the appropriate clause set forth in § 1.1906 of that subpart, modified for use in cost-reimbursement type contracts.

[30 F.R. 14090, Nov. 9, 1965]

§ 7.204-40 Order of precedence.

In accordance with § 7.104-56, insert the clause set forth therein.

[30 F.R. 14090, Nov. 9, 1965] § 7.205

Additional clauses.

The following clauses shall be inserted in cost-reimbursement type supply contracts in accordance with Department procedures when it is desired to cover the subject matter thereof in such contracts. [25 FR. 14199, Dec. 31, 1960]

§ 7.205-1 Alteration in contract.

The contract clause set forth in § 7.105-1 may be inserted.

[25 F.R. 14200, Dec. 31, 1960]

§ 7.205-2 Approval of contract.

The contract clause set forth in § 7.105-2 may be inserted.

[25 F.R. 14200, Dec. 31, 1960]

§ 7.205-4 Bill of materials.

The contract clause set forth in § 7.105-6 of this regulation may be inserted pursuant to the provisions of that section.

[25 F.R. 14200, Dec. 31, 1960]

§ 7.205-6 Material inspection and receiving report.

The contract clause set forth in §7.105-7 may be inserted. [27 F.R. 11656, Nov. 27, 1962]

§ 7.205-7 Stop work orders.

The clause set forth in § 7.105-8 of this part, if modified by changing (a) the

words "the "Termination for Convenience' clause of this contract" to "the "Termination' clause of this contract" and (b) 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 § 7.105-8.

[25 F.R. 14200, Dec. 31, 1960]

§ 7.205-8 Taxes where foreign agreements do not apply.

In accordance with the instructions of § 11.404 of this chapter, in contracts to be performed outside the United States, its possessions and Puerto Rico, the clause set forth therein may be inserted. [26 F.R. 9638, Oct. 12, 1961]

Subpart C-Clauses for Fixed-Price Research and Development Contracts

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As used throughout this subpart, 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 (a) is entered into at a fixed price in an amount exceeding $2,500 (with or without any provision for price redetermination, escalation, or other form of price revision as covered in § 3.404 of this chapter), and (b) is for experimental, developmental, or research work. See § 3.403 (b) and (c) for use of types of contracts for research and developmental work. [27 F.R. 4023, Apr. 27, 1962]

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PAYMENTS (JUNE 1959)

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.

[25 F.R. 14200, Dec. 31, 1960]

§ 7.302-3 Standards of work.

STANDARDS OF WORK (JUNE 1959)

The Contractor agrees that the performance of work and services pursuant to the requirements of this contract shall conform to high professional standards.

[25 F.R. 14200, Dec. 31, 1960]

§ 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 paragraph (c) of this section, is not used, the clause in paragraph (b) of this section shall be used.

INSPECTION (JUNE 1959)

(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, 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."

(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.

(b) The following clause shall be inserted in all contracts subject to this part where the clause in paragraph (a) of this section is not used.

INSPECTION (JUNE 1959)

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 its 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.

(c) Where it is desired to require contractors to maintain an inspection system in accordance with Military Specification MIL-I-45208A (see § 14.104-2(b) of this chapter), the clause set forth in paragraph (a) of this section 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 Military Specification MIL-I45208A. (July 1964)

[25 F.R. 14200, Dec. 31, 1960, as amended at 29 F.R. 11821, Aug. 19, 1964]

§ 7.302-5 Assignment of claims.

In accordance with the instructions set forth in § 7.103-8, insert the contract clause set forth therein.

[25 F.R. 14200, Dec. 31, 1960]

§ 7.302-6 Examination of records.

In negotiated fixed-price research and development contracts, insert the clause set forth in § 7.104-15 in accordance with the requirements set forth therein. [25 F.R. 14200, Dec. 31, 1960]

§ 7.302-7 Federal, State, and local taxes. In accordance with the requirements of § 11.401 of this chapter, insert the contract clause set forth in §§ 11.401-1 or 11.401-2 of this chapter as appropriate. [25 F.R. 14200, Dec. 31, 1960]

§ 7.302-8 Utilization of small business

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In accordance with the requirements of Part 12, subpart F of this chapter, insert the contract clause set forth in § 12.605 of this chapter.

[25 F.R. 14200, Dec. 31, 1960]

§ 7.302-16 Contract Work Hours Standards Act-Overtime compensation.

In accordance with the instructions of $12.303 of this chapter, insert the clause set forth therein.

[30 F.R. 1736, Feb. 9, 1965]

§ 7.302-17 Equal opportunity.

In accordance with the requirements of § 12.802 of this chapter, insert the contract clause set forth therein.

[30 F.R. 1736, Feb. 9, 1965]

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§ 7.302-23 Patent rights.

In accordance with the requirements of § 9.107 of this chapter, insert the appropriate contract clause set forth therein with additional or alternate paragraphs as prescribed therein. However, in the case of contracts awarded on the basis of no profit, the percentage amount specified to be withheld under paragraph (g) of the clause set forth in § 9.107-5(a) of this chapter or paragraph (f) of the clause set forth in § 9.107-5 (b) and (c) of this chapter may be changed from "ten percent (10%)" to "one percent (1%)".

[30 F.R. 6968, May 25, 1965]

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(a) Except as provided in paragraph (b) of this section, insert an appropriate security requirements clause in accordance with the provisions of § 7.104-12.

(b) In any research and development contract with an educational institution when the contract is awarded on the basis of no profit, insert an appropriate security requirements clause in accordance with the provisions of § 7.402-24(b).

(c) The contracting officer or his authorized representative shall prepare and transmit to the contractor and the Government representative having security cognizance over the contract involved a Security Requirements Check List (DD Form 254) or other written notification, in accordance with § 16.811 of this chapter.

[28 F.R. 12570, Nov. 23, 1963]

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§ 7.303-1 Clauses for contracts involving construction work.

(a) In accordance with the requirements of § 12.403 of this chapter, insert the clauses entitled:

Davis-Bacon Act.

Contract Work Hours Standards Act-
Overtime Compensation.
Apprentices.

Payrolls and Payroll Records.
Compliance with Copeland Regulations.
Withholding of Funds.

Subcontracts.

Contract Termination-Debarment. Employee Compensation-Cape Kennedy, Patrick Air Force Base, and Merritt Island Launch Area.

(b) In accordance with the requirements of § 6.204-5 of this chapter, insert the clause entitled Buy American Act. [30 F.R. 5987, Apr. 29, 1965]

§ 7.303-2 Filing of patent applications.

In accordance with the requirements of § 9.106 of this chapter, insert the contract clause set forth in § 9.106 or § 9.106-1 of this chapter, as appropriate. [25 F.R. 14201, Dec. 31, 1960]

§ 7.303-3 Reporting of royalties.

In accordance with the requirements of § 9.110 of this chapter, insert the contract clause set forth therein.

[25 F.R. 14201, Dec. 31, 1960]

§ 7.303-4 Excess profit.

In accordance with the requirements of § 7.104-11, insert the appropriate contract clause set forth therein.

[25 F.R. 14201, Dec. 31, 1960]

§ 7.303-5 Preference for certain domestic commodities.

In accordance with the requirements of § 6.305 of this chapter, insert the contract clause set forth therein.

[25 F.R. 14201, Dec. 31, 1960]

§ 7.303-6 Priorities, allocations, and allotments.

In accordance with the requirements of § 1.307-2 of this chapter, insert the contract clause set forth in § 7.104-18. [25 F.R. 14201, Dec. 31, 1960]

§ 7.303-7 Government property.

In accordance with the requirements set forth in §§ 13.702 and 13.706 of this chapter, insert the appropriate contract clause.

[30 F.R. 1736, Feb. 9, 1965]

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§ 7.303-8 Soviet-controlled areas.

In accordance with the requirements of § 6.403 of this chapter, insert the contract clause set forth therein. [25 F.R. 14201, Dec. 31, 1960]

§ 7.303-9 Notice to the Government of labor disputes.

Insert the clause set forth in § 7.104-4 in all contracts involving the furnishing or production of any item on the Department of Defense Master Urgency List and in any other contract of a class or kind which the Head of the Procuring Activity concerned determines to be appropriate for the use of such a clause. [25 F.R. 14201, Dec. 31, 1960] § 7.303-10

Limitation on withholding

of payments.

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In accordance with the requirements of 3.902-4 of this subchapter, insert

the clause set forth therein.

[25 F.R. 14201, Dec. 31, 1960]

§ 7.303-15 Quality program.

In accordance with the instructions in § 14.104-3 of this chapter, insert the clause set forth in § 7.104-28.

[29 FR. 11821, Aug. 19, 1964]

§ 7.303-16 Price reduction for defective cost or pricing data.

In accordance with the requirements of § 7.104-29, insert the appropriate clause set forth therein.

[28 F.R. 2107, Mar. 5, 1963]

§ 7.303-17 Ground and flight risks. In all negotiated fixed-price type contracts for the production, modification,

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In accordance with the requirements of § 11.403-2 of this chapter, in contracts to be performed outside the United States, its possessions and Puerto Rico, insert one of the clauses set forth in paragraphs (a) and (b) thereof. [26 F.R. 9639, Oct. 12, 1961]

§ 7.303-21 Advance payments.

When advance payments are to be made in accordance with Subpart D, Part 163 of this chapter, insert the appropriate clause as set forth in § 163.64-2 of this chapter.

[26 F.R. 9639, Oct. 12, 1961]

§ 7.303-22 Workmen's compensation insurance overseas.

In accordance with the requirements of § 10.403 of this chapter, insert the clause entitled "Workmen's Compensation Insurance (Defense Base Act)". [26 F.R. 9639, Oct. 12, 1961]

§ 7.303-23 Progress payments.

When progress payments are to be made in accordance with Subpart E, Part 163 of this chapter, insert the appropriate clause as set forth in § 163.79 of this chapter.

[26 F.R. 9639, Oct. 12, 1961]

§ 7.303-24 Required source for jewel bearings.

In accordance with the requirements of 1.315 of this chapter, insert the clause set forth therein.

[27 F.R. 1708, Feb. 22, 1962]

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