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Subpart 2-9.50 Retention of Patent and

Royalty Rights
2–9.5000 Scope of subpart.
2–9.5001 Policy.

AUTHORITY: The provisions of this Part 2-9 issued under secs. 303, 313, 72 Stat. 747, 752; 49 U.S.C. 1344, 1354. Subpart 2-9.50 Retention of Patent

and Royalty Rights § 2-9.5000 Scope of subpart.

This Subpart codifies, in FAPR, Federal Aviation Agency Order RD 4450.1 which sets forth the Agency policy with respect to the retention of rights and recovery of costs in connection with negotiated contracts where research or development is a significant part of the work. (29 F.R. 17111, Dec. 15, 1964)

§ 2-9.5001 Policy.

In negotiating contracts under which the Government pays a part or all of the costs of research or development, it is the policy of the Federal Aviation Agency to retain, for the benefit of the United States, rights to data and patent rights, in reasonable proportion to the contributions of the Agency and the contractor; and to recover the Federal Aviation Agency's contribution toward such research and development through royalties to the Government upon commercial exploitation of the products developed thereby. (29 F.R. 17111, Dec. 16, 1964)


INSURANCE Subpart 2-10.4— Insurance Under

Fixed-Price Contracts 82-10.401 Policy.

(a) The following clause shall be inserted in any contract for the lease of aircraft (including aircraft used in outservice flight training), except as provided in paragraph (b) of this section:

LOSS OR DAMAGE TO LEASED AIRCRAFT (a) The Government assumes all risk of loss or damage (except normal wear and tear) to the leased aircraft during the term of this lease while the aircraft is in the possession of the Government.

(b) In the event of damage to the aircraft, the Government may, at its option, make the necessary repairs with its own facilities or by contract, or pay the lessor the reasonable cost of repair of the aircraft.

(c) In the event the aircraft is lost or damaged beyond repair, the Government shall pay to the lessor a sum equal to the fair market value of the aircraft at the time of such loss or damage, unless a specific amount is indicated elsewhere in the contract, less the salvage value of the aircraft.

(d) The lessor certifies that the contract price does not include any cost attributable to hull insurance or to any reserve fund it has established to protect its interest in the aircraft. If, in the event of loss or damage to the leased aircraft, the lessor receives compensation for such loss or damage in any form from any source, the amount of such compensation shall be credited to the Gov

ernment in determining the amount of the Government's liability under this clause.

(e) In the event of loss or damage of the aircraft, the Government shall be subrogated to all rights of recovery by the lessor against third parties for such loss or damage and such rights shall be immediately assigned to the Government. Except as the Contracting Officer may permit in writing, the Contractor shall neither release nor discharge any third party from liability for such loss or damage nor otherwise compromise or adversely affect the Government's subrogation rights hereunder. The Contractor shall cooperate with the Government in any suit or action undertaken by the Government against any such third party.

(f) Any failure to agree as to the responsibility of the Government under this clause shall, after a final finding and determination by the Contracting Officer, be considered a dispute within the meaning of the “Disputes" clause of this contract.

(b) The clause shall not be included in aircraft lease contracts: (1) When the hourly rental rate does not exceed $250 and the total rental cost for any single transaction is not in excess of $2,500; (2) where the cost of hull insurance does not exceed ten percent (10%) of the contract rate, or (3) when the lessor's insurer does not grant a credit for uninsured hours, thereby preventing the iessor from granting the same to the Government.

(Secs. 303, 313, 72 Stat. 747, 752; 49 U.S.C. 1344, 1354) ( 29 F.R. 17111, Dec. 15, 1964) PART 2–60_CONTRACT APPEALS Sec. 2-60.000 Scope of part.

Subpart 2–60–1-Contract Appeals Panel 2-60.101 Establishment. 2-60.102 Authority.

Subpart 2-60.2--Contract Appeal Procedures 2-60.201 Notice of appeal. 2-60.202 Duties of the contracting officer. 2-60.203 Notice to appellant. 2-60.204 Appellant's right to inspect rec

ord. 2-60.205 Designation of Panel member to

consider appeal. 2-60.206 Request for hearing. 2-60.207 Appellant's election as to proce

dure. 2-60.208 Procedure for submission on

documentary record. 2-60.209 Procedure for administrative in

quiry. 2-60.210 Procedure for adversary hearing. 2-60.210-1 Petition. 2-60.210-2 Answer. 2-60.210–3 Amendments to petition, answer,

or reply. 2-60.210-4 Motions. 2–60.210–5 Hearing. 2-60.211 General rules for administrative

inquiries and hearings. 2-60.212 Representation of parties. 2-60.213 Settlement. 2-60.214 Decisions.

AUTHORITY: The provisions of this part 2–60 issued under secs. 303, 313, 72 Stat. 747, 752; 49 U.S.C. 1344, 1354.

SOURCE: The provisions of this Part 2-60 appear at 29 F.R. 17111, Dec. 15, 1964, unless otherwise noted.

§ 2-60.102 Authority.

Members of the Contract Appeals Panel act for the Administrator of the Federal Aviation Agency in hearing and considering appeals by contractors from decisions made by contracting officers under contracts providing for such appeal to the Administrator, and other matters as directed by the Administrator. The Panel decides such appeals. Subpart 2-60.2—Contract Appeal

Procedures § 2–60.201 Notice of appeal.

An appeal from a decision of a contracting officer is made by sending a written notice of appeal to the Administrator, Federal Aviation Agency, directed to the attention of the contracting officer. The notice must be mailed or filed within 30 days after the date the decision of the contracting officer is received, unless a different time is provided in the contract. The contractor must sign the notice, identify the contract involved and the decision appealed from, and state that he is appealing from that decision. A letter of complaint or a general letter objecting to some action taken is not a notice of appeal. The notice should be in triplicate, specify the portion or portions of the decision from which the appeal is taken, and state the reason why those portions are erroneous. § 2–60.202 Duties of the contracting

officer. Upon receiving a notice of appeal, the contracting officer shall endorse on the original and the copies the date of mailing, or the date of receipt if otherwise filed. He shall send the notice and one copy immediately to the Contract Appeals Panel for docketing. Within 15 days after the date he receives the notice, the contracting officer shall send a file, consisting of the following, to the Contract Appeals Panel:

(a) The findings of fact and the decision from which the appeal is taken, and the letters or other documents of claim in response to which the decision was issued;

(b) A copy of the contract and pertinent specifications, plans, drawings,

2–60.000 Scope of part.

This part establishes the Federal Aviation Agency Contract Appeals Panel, provides for designating the Chairman and members of the Panel, authorizes the members of the Panel to act, and prescribes its functions and procedures. Subpart 2–60.1-Contract Appeals

Panel § 2-60.101 Establishment.

The Federal Aviation Agency Contract Appeals Panel is established within the Office of the General Counsel. The General Counsel appoints the members of the Panel from attorneys of his office, and shall designate one of them as Chairman.

modifications, change orders, and nation. The designated Panel member, amendments;

or members, shall exercise the authority (c) All correspondence between the of the Panel in all matters, except that parties relating to the dispute;

the decision is made by a majority of (d) Transcripts of any testimony

the Panel members designated by the

Chairman to decide the case. taken in connection with the dispute, in addition to any affidavits or statements of any witnesses that were considered $ 2–60.206 Request for hearing. by the contracting officer in reaching

The appellant may request an oral his decision;

hearing, by written notice to the Con(e) A statement of the evidence lead- tract Appeals Panel within 30 days afing to, and the basis for arriving at, the ter the date he receives the Panel's notice contracting officer's decision, citing per- to appellant under $ 2–60.203, or if the tinent letters and documents related to contracting officer files additional matethe decision; and

rial for the record under $ 2–60.208, with(f) Any additional data that the con

in 30 days after the date the appellant

receives his copy of that material. The tracting officer may consider pertinent.

Panel member to whom the appeal has The contracting officer may substitute a

been assigned shall fix the time and the true copy for the original of any docu

place of the hearing, and shall notify the ment named in paragraphs (a) through

appellant and the contracting officer (f) of this section.

whose decision is appealed, at least 15

days before the hearing. Ordinarily, § 2–60.203 Notice to appellant.

hearings are held at the headquarters The Chairman of the Contract Ap- of the Agency, in Washington, D.C., but peals Panel shall notify the appellant they may be held at any other place desthat he has received the file, and shall ignated by the member conducting the advise him of his right to inspect the hearing, for good cause shown. The confile and of his option to submit the venience of the parties will be considered. matter on the record, to be heard at an administrative inquiry, or to be heard at an adversary hearing.

§ 2–60.207 Appellant's election § 2–60.204 Appellant's right to inspect

procedure. record.

(a) The appellant may elect to have The contract appeals file and all docu

the appeal considered upon: ments, records, and evidentiary matter

(1) The written record, without oral that are to be considered by the Panel inquiry or hearing (§ 2–60.208); in making its decision, are available for

(2) An administrative inquiry (82inspection by the appellant, while the

60.209); or appeal is pending, at the office of the (3) An adversary hearing (§§ 2–60.210 Chairman of the Panel, and at any hear

through 2-60.210-5); ing that may be held. However, only

(b) The appellant makes his election persons having an appropriate security

as follows: clearance may have access to any clas

(1) He elects to have the appeal consified material.

sidered on the written record if he does

not request a hearing in accordance with $ 2–60.205 Designation of Panel mem- § 2-60.206. ber to consider appeal.

(2) He elects to have the appeal conThe Chairman of the Contract Ap- sidered upon an administrative inquiry peals Panel shall designate one member if he requests a hearing, but does not file of the Panel to act for the Panel. In a formal petition in accordance with $ 2cases of unusual complexity, more than 60.210–1, or does not comply with any one member may be designated. The order the Panel issues requiring its amplimember or members designated for that fication. purpose shall not have participated di- (3) He elects to have the appeal conrectly in any aspect of the award or sidered upon an adversary hearing if he administration of the contract involved. files a petition in accordance with § 2The Chairman shall notify the appellant 60.210-1 and complies with the orders and the contracting officer of the desig- of the Panel requiring its amplification.



§ 2–60.208 Procedure for submission on There is no right to cross-examine. The documentary record.

Panel member may question a witness If the appellant does not request a

after his direct presentation, to develop 5 hearing in accordance with $ 2–60.206,

any facts he considers relevant, and may the appeal is considered on the documen- at or after the hearing, make such furtary record alone. The appellant may ther investigation and inquiry as he feels submit any additional relevant material will help him to establish the facts of the for the record within 30 days after the case. The appellant and the contracting date he receives the notice to appellant, officer may submit additional written under $ 2–60.203, or within such addi

evidence or argument after the hearing tional time as may be permitted by the within a time limit fixed by the Panel. Panel. The contracting officer whose de- Sections 2–60.210 through 2–60.210–5 do cision is appealed shall submit any ans- not apply to appeals heard at adminiswering material within 30 days after the trative inquiries. date he receives the material submitted

for by the appellant. The appellant must

§ 2–60.210 Procedure adversary submit any material in reply within 30

hearing. days after the date he receives the ma- The procedures for considering appeals terial submitted by the contracting of- upon adversary hearings are set forth in ficer. Further submission of additional $ $ 2–60.210–1 through 2–60.210–5. material by either party, and extensions of time to submit, are permitted, or directed, at the discretion of the Panel.

§ 2–60.210–1 Petition. The appellant shall furnish copies to the To begin the procedures for considercontracting officer at the time of submis

ing an appeal upon an adversary hearsion to the Panel. The contracting off- ing, the appellant must file a formal pecer shall furnish copies to the appellant tition when he files his Request for (except copies of the file initially sent to Hearing under $ 2–60.206, or within such the Panel) at the time of submission to

time thereafter as may be allowed by the the Panel.

Panel. The formal petition must specify § 2–60.209 Procedure for administrative

the errors in the contracting officer's deinquiry.

cision; must set forth a short and plain

statement of the facts that entitle the If the appellant requests an oral hear

appellant to relief; must conform to the ing as provided in § 2–60.206, the appeal

formal and substantive requirements for is heard at an administrative inquiry,

pleadings under Rules 8 through 11 of unless the appellant files, with his re

the Rules of Civil Procedures for the U.S. quest for hearing, a formal petition con

District Courts; and should also contain forming to § 2-60.210–1, and to any or

applicable citations of authority for the ders of the Panel requiring its amplifica

consideration of the Panel. The appeltion. At the administrative inquiry, the

lant must file two copies of the petition Panel member presiding shall receive evi

with the Panel, and one copy with the dence and arguments presented by or for

contracting officer from whose decision the appellant and the contracting officer

he has appealed. whose decision is appealed. The Panel member shall limit the presentation to

§ 2-60.210–2 Answer. matters actually in issue, and obtain ad- If the appellant files a formal petition, missions, stipulations and concessions the contracting officer shall file two copthrough questioning the parties. The

ies of a formal answer thereto with the parties may offer evidence or argument Panel, within 30 days after the date he without regard to the formal rules of evi- receives the petition, unless a longer pedence. However, the Panel member may riod is allowed by the Panel, and at the refuse to receive any evidence or argu- same time shall send one copy to the ment on matters not in issue or any re- appellant. The answer must conform to petitive, irrelevant, or improper material, the formal and substantive requirements and may refuse to receive any material for the formal petition. The Panel may, that is not of sufficient probative weight in its discretion, order the appellant to to be considered substantial evidence. reply to an answer.

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