Page images
PDF
EPUB

will also take or cause to be taken such additional measures as the Contracting Officer may determine to be reasonably necessary for the purpose.

(b) The Contractor will maintain an accurate record of, and will report to the Contracting Officer in the manner and on the forms prescribed by the Contracting Officer, exposure data and all accidents resulting in death, traumatic injury, occupational disease, and damage to property, materials, supplies and equipment incident to work performed under this contract.

(c) The Contracting Officer will notify the Contractor of any noncompliance with the foregoing provisions and the action to be taken. The Contractor shall, after receipt of such notice, immediately take corrective action. Such notice, when delivered to the Contractor or his representative at the site of the work, shall be deemed sufficient for the purpose. If the Contractor fails or refuses to comply promptly, the Contracting Officer may issue an order stopping all or part of the work until satisfactory corrective action has been taken. No part of the time lost due to any such stop orders shall be made the subject of claim for extension of time or for excess costs or damages by the Contractor.

(d) Compliance with the provisions of this article by subcontractors will be the responsibility of the Contractor.

(b) In contracts involving work of long duration or of hazardous character, the following paragraph (e) will be added to the above clause:

(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 (JANUARY 1965) 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.

§ 7.602-44 Commencement, prosecution and completion of work. COMMENCEMENT, PROSECUTION AND COMPLETION OF WORK (JANUARY 1965) The Contractor will be required to comnence work under this contract within

calendar 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. § 7.602-45 Contract drawings, maps and specifications.

CONTRACT DRAWINGS, MAPS AND SPECIFICATIONS (JANUARY 1965)

(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

[blocks in formation]

(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.

§ 7.602-46 Price adjustment for suspension, delays or interruption of work.

The following clause shall be included in fixed-price construction contracts: PRICE ADJUSTMENT FOR SUSPENSION, DELAYS, OR INTERRUPTION OF WORK (NOVEMBER 1961)

(a) The Contracting Officer may order the Contractor in writing to suspend 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, without the fault or negligence of the Contractor, 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 the contract, or by his failure to act within the time specified in the contract (or if no time is specified within a reasonable time), an adjustment shall be made by the Contracting Officer for any increase in the cost of performance of the contract (excluding profit) necessarily caused by the unreasonable period of such suspension, delay, or interruption, and the contract shall be modified in writing accordingly. No adjustment shall be made to the extent that performance by the Contractor would have been prevented by other causes even if the work had not been so suspended, delayed, or interrupted. No claim under this clause shall be allowed (1) for any costs incurred more than twenty 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 where a suspension order has been issued), and (ii) unless the claim, in an amount stated, is asserted in writing as soon as practicable after the termination of such suspension, de lay, or interruption but not later than the date of final payment under the contract. Any dispute concerning a question of fact arising under this clause shall be subject to the Disputes clause.

[blocks in formation]

§ 7.603-1

Notice to Government of labor disputes.

Insert the clause set forth in § 7.104-4 in all contracts for items on the DOD Master Urgency List.

§ 7.603-2 Soviet-controlled areas.

In accordance with the requirements of § 6.403 of this chapter, insert the contract clause set forth therein.

§ 7.603-3 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, as appropriate.

§ 7.603-4 Reporting of royalties.

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

[blocks in formation]
[blocks in formation]

In accordance with § 10.403 of this chapter, insert the clause set forth therein.

§ 7.603-13 Taxes.

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, or if no tax agreement has been executed between the United States and the foreign country and tax relief is not available, insert the clause in § 11.404 of this chapter.

§ 7.603-14 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.

§ 7.603-15 Performance of work by

contractor.

In accordance with the requirements of § 18.104 of this chapter, insert the following clause:

PERFORMANCE OF WORK BY CONTRACTOR (JANUARY 1965)

The Contractor shall perform on the site, and with his own organization, work equiv

alent to at least (words) percent* (figures) of the total amount of work to be performed under the contract. If, during the progress of the work hereunder, the Contractor requests a reduction in such percentage; and the Contracting Officer determines that it would be to the Government's advantage, the percentage of the work required to be performed by the Contractor may be reduced; provided, written approval of such reduction is obtained by the Contractor from the Contracting Officer.

§ 7.603-16 Patent rights.

In accordance with the requirements of § 9.107 of this chapter in contracts involving experimental, developmental or research work, insert the appropriate contract clauses set forth therein.

§ 7.603-17 Interest.

In accordance with the requirements of §§ 163.118 and 163.119 of this chapter, insert the clause set forth in § 163.118. § 7.603-18 Competition in subcontracting.

In accordance with the requirements of § 7.104-40, insert the contract clause set forth therein.

§ 7.603-19 Duty free entry.

In accordance with the requirements of § 6.603-2 of this chapter, insert either or both of the clauses set forth in § 6.6033 of this chapter, as appropriate.

§ 7.603-20 Audit and records.

In accordance with the requirements of § 7.104-41, insert the appropriate clause set forth therein.

[blocks in formation]

furnish to the contractor material, special tooling, or industrial facilities consistent with § 13.303 of this chapter. § 7.603-23 Fixed-price incentive contract clause.

The following clause shall be inserted in all negotiated contracts providing for a fixed price with provision for an adjustment reflecting the efficiency and economy exercised by the contractor during performance of the contract.

INCENTIVE PRICE REVISION (JANUARY 1965)

(a) General. The total contract price set forth in this contract as it may have been modified, consists of unit prices, lump sum prices or a combination thereof, and such total contract price is a total target price which includes a total target profit of

percent of total target costs. The total target price shall be revised in accordance with the provisions of this clause: Provided, That the total amount paid under this contract shall not exceed (1) the aggregate of the prices of the lump sum items, plus (11) the unit prices of the estimated quantity items times the actual quantity of such items, plus (iii) percent of the sum

[ocr errors]

of (1) and (11) above.

(b) Submission of data. Within days after completion of all work and services to be performed under this contract, the Contractor shall submit (1) a detailed statement of costs incurred in the performance of this contract; (11) such other information as the Contracting Officer may require; and (iii) a price list of all materials, supplies and property, the cost of which is included in (1) above, which are on hand upon completion of the work. Where the Contractor fails to submit the required data within the time specified, no further payment may be made by the Contracting Officer until the data are furnished.

(c) Price revision. Upon submission of the data required by paragraph (b) above, the Contractor and the Contracting Officer shall promptly establish the total adjusted price in accordance with the following:

(1) On the basis of the information required by paragraph (b) above, the Contractor and the Contracting Officer shall establish by negotiation the total adjusted cost reasonably incurred or to be incurred for and properly allocable to the work and services performed under this contract and accepted by the Government.

(2) The total adjusted price of the work and services performed under this contract shall be established by adding to the total adjusted cost, as negotiated under (1) above, less the proceeds of any disposition of Contractor inventory in accordance with (g) below, an allowance for profit determined in accordance with (3) below, Provided,

[blocks in formation]

(d) Records. (1) The Contractor shall maintain books, records, documents, and other evidence, sufficient to reflect properly all direct and indirect costs of whatever nature claimed to have been incurred for the performance of this contract. However, no material change will be required to be made in the Contractor's accounting procedures and practices if they conform to generally accepted accounting practices and if the cost data required to be furnished under (b) above are readily ascertainable. Each subcontract placed by the Contractor hereunder on other than a firm fixed-priced basis (1) shall provide that the subcontractor shall maintain books, records, documents, and other evidence, sufficient to reflect properly all direct and indirect costs of whatever nature claimed to have been incurred in the performance of such subcontract and (11) shall require each such subcontractor to insert the entire substance of this subparagraph, including this (ii), in all his subcontracts which are on other than a firm fixedprice basis.

(2) The Government may at all reasonable times make such examination or audit as the Contracting Officer may require of the Contractor's books, records, documents, and other evidence pertinent to the performance of this contract.

(e) Certification. An authorized responsible official of the Contractor shall certify on each statement of costs submitted to the Contracting Officer pursuant to (b) above that the incurred costs are based upon the records of the Contractor, that such records reflect generally accepted accounting principles and practices normally followed by the Contractor, and that such costs are correct to the best of his knowledge and belief.

(f) Subcontracts. (1) No subcontract placed under this contract shall provide for payment on a cost-plus-a-percentage-of-cost basis; and the Contractor shall not, without

the prior written consent of the Contracting Officer, place any subcontract which is on a cost-plus-a-fee basis and which would involve a total price in excess of $10,000, including the fee. The Contracting Officer may, in his discretion, ratify in writing any such cost-plus-a-fee subcontract and such action shall constitute the consent of the t Contracting Officer as required by this subparagraph (1).

[ocr errors]

(2) Each subcontract placed by the Con-E tractor hereunder (1) shall provide that the Government may at all reasonable times make such examination or audit as the Contracting Officer may require of the subcontractor's books, records, documents, and other evidence, pertinent to the performance of the subcontract and (ii) shall require each such subcontractor whose subcontract is on other than a firm fixed-price basis to insert the entire substance of this subparagraph, including this (ii), in all his subcontracts. The term "subcontract", as used in this subparagraph (2) only, excludes firm fixed-price subcontracts not in excess of $2,500 and subcontracts for utility services at rates established for uniform application to the general public.

(g) Contractor inventory. Any materials, supplies and property the cost of which is allocable to the contract and included in the total adjusted cost, which are on hand upon the completion of the contract, shall be disposed of in accordance with the applicable Government regulations covering the disposition of Contractor inventory and any proceeds of such disposition shall be used to reduce the total adjusted cost established pursuant to paragraph (c) above. Any materials, supplies and property which are on hand upon the completion of the contract, which are not allocable to the contract and as to which no costs have been included in the total adjusted cost, shall be and remain the property of the Contractor.

(h) Contract modification. The total adjusted price, as determined in accordance with paragraph (c) above, shall be evidenced by a modification to this contract signed by the Contractor and the Contracting Officer. Such final contract price shall apply to all work and services performed under this contract.

(1) Adjustment of payment estimates. If at any time it appears that the final contract price will be substantially greater or less than (i) the aggregate of the prices of the lump sum items, plus (ii) the unit prices of the estimated quantity items times the actual quantity of such items completed, the Contracting Officer may adjust each payment estimate thereafter to be made under the contract by increasing or decreasing the net amount of such payment estimate by the indicated percentage of variation: Provided, however, That in no event shall the percentage of increase exceed that indicated in paragraph (a) (iii) above. Any adjustment of payment estimates under this paragraph

shall in no way limit or affect the price revision to be computed in accordance with the provisions of this clause.

(1) Limitation on payments. Notwithstanding any provisions of this contract authorizing greater payment, the total of all amounts paid or payable under this contract, until price revision has been made to the full extent permitted by this contract, shall not exceed the sum of the following items as reported by the Contractor from time to time as hereinafter provided: (i) the total amount of costs (estimated to the extent necessary) that have been reasonably incurred for and are properly allocable to the contract and (ii) the total amount of target profit used in establishing the total target price and allocable by direct proportion to the work or services performed. Within 45 days after the end of each quarter of the Contractor's fiscal year, beginning for the quarter in which work or services are first performed under this contract and as of the end of each quarter thereafter, the Contractor shall submit a statement setting forth the respective amounts of each of the two numbered items next above, together with the total of all amounts paid or payable under this contract as of the end of each such quarter. If on any quarterly statement the total of the amounts paid exceeds the sum of the two numbered items above, this gross excess shall be paid immediately by the Contractor to the Government or credited against existing unpaid billings.

(k) Disagreement. If the Contractor and the Contracting Officer are unable to agree upon the final contract price within 60 days after the date on which the data required by (b) above are to be submitted or within such further time as specified by the Contracting Officer, the Contracting Officer shall resolve the disagreement by issuing a decision pursuant to the clause of this contract entitled "Disputes."

(1) Termination. (1) In the event of a complete termination, the amount payable to the Contractor shall be established in accordance with the clause of this contract entitled "Termination for Convenience of the Government" or "Termination for Default-Damages for Delay-Time Extension" as applicable.

(2) In the event of a partial termination, the amount payable to the Contractor as to the work and services terminated shall be established in accordance with the clause of this contract entitled "Termination for the Convenience of the Government" or "Termination for Default-Damages for DelayTime Extensions" as applicable. As to the work and services not terminated the provisions of this clause shall apply.

§ 7.603-24 Shop drawings.

(a) Insert the following clause, with the appropriate addition in paragraph

(b) of this section, in contracts requiring the submission of shop drawings for review prior to construction:

SHOP DRAWINGS (JANUARY 1965)

The Contractor shall submit to the Contracting Officer for approval copies (four unless otherwise indicated herein) of all shop drawings as called for under the various headings of these specifications. These drawings shall be complete and detailed. If approved by the Contracting Officer, each copy of the drawings will be identified as having received such approval by being so stamped and dated. The Contractor shall make any corrections required by the Contracting Officer. If the Contractor considers any correction indicated on the drawings to constitute a change to the contract drawings or specifications, notice as required under the clause entitled "Changes" will be given to the Contracting Officer. sets (three unless otherwise indicated herein) of all shop drawings will be retained by the Contracting Officer and one set will be returned to the Contractor. The approval of the drawings by the Contracting Officer shall not be construed as a complete check, but will indicate only that the general method of construction and detailing is satisfactory. Approval of such drawings will not relieve the Contractor of the responsibility for any error which may exist as the Contractor shall be responsible for the dimensions and design of adequate connections, details, and satisfactory construction of all work.

(b) "As built" shop drawings may be required for the permanent record of the using agency.

(1) When reproducible shop drawings are required, the following provision shall be added to the clause in paragraph (a) of this section:

Upon the completion of the work under this contract, the Contractor shall furnish a complete set of reproducibles of all shop drawings as finally approved. These drawings shall show all changes and revisions made up to the time the equipment is completed and accepted.

(2) If reproducible shop drawings are not required, the following provision shall be added to the clause in paragraph (a) of this section:

Upon the completion of the work under this contract, the Contractor shall furnish complete sets of prints of all shop drawings as finally approved. These drawings shall show changes and revisions made up to the time the equipment is completed and accepted.

« PreviousContinue »