structions, if not previously furnished, shall be requested from the Prime Contractor. [26 F.R. 12439, Dec. 27, 1961, as amended at 27 F.R. 3386, Apr. 10, 1962; 28 F.R. 5575, June 6, 1963] § 1007.4005 Delivery of spare parts schedule. Any contract which provides for delivery of items of supplies, and also for spare parts for such items, may contain the following clause. This clause may be made a lettered paragraph of the clause entitled "Shipments" set forth in § 1007.4004. DELIVERY OF SPARE PARTS SCHEDULE Unless otherwise provided in the Schedule, all spare parts, if any, required to be furnished to the Government under this contract shall be delivered in accordance with this paragraph. The Contractor shall deliver in each month that quantity of each item of spare parts listed on the final spare parts exhibit, or exhibits, to this contract which bears the same ratio to the total quantity of such item to be furnished as the number of articles to which such spare part relates to be delivered in such month bears to the total number of such articles to be furnished. Where this formula would require delivery of a fraction of a spare part, the next higher number of whole spare parts shall be delivered if such fraction exceeds one-half (2) and the next lower numbers of whole spare parts shall be delivered if such fraction is one-half (2) or less. [26 F.R. 12439, Dec. 27, 1961, as amended at 27 F.R. 3386, Apr. 10, 1962] § 1007.4007 Transportation charges. Any fixed-price supply contract, under which the contractor has quoted a price including the transportation charges, and for which it is desired to provide for the possibility of shipment on Government bills of lading, may include the following clause: TRANSPORTATION CHARGES (OCT. 1957) The Contractor hereby agrees that in the event that shipments hereunder which were, by the terms of this contract, to be made at the Contractor's expense are in fact made on a Government bill of lading, there shall be deducted from the contract price the commercial freight charge for delivery to the destination specified herein, including any Federal, State, or local tax directly applicable thereto. The Contractor further agrees to show any such reductions on the invoices submitted hereunder. [26 F.R. 12439, Dec. 27, 1961, as amended at 27 F.R. 3386, Apr. 10, 1962] § 1007.4008 Accelerated delivery. When the contractor may deliver items of supply or perform services at a faster rate than set forth in the schedule and such accelerated delivery or performance is desirable without limitation, the following clause will be inserted: ACCELERATED DELIVERY (FEB. 1960) The Contractor is authorized to exceed the delivery rate, or to complete performance of this contract prior to the time therefor, set forth in the schedule; provided, however, that nothing contained herein shall obligate the Government to perform any of its obligations to the Contractor at an earlier date than is set forth in this contract in order to assist the Contractor to make deliveries on an accelerated basis. [26 F.R. 12439, Dec. 27, 1961, as amended at 27 F.R. 3386, Apr. 10, 1962] § 1007.4009 Furnishing of materials or supplies by the Government at its option. The following clause may be inserted in any fixed-price contract for supplies or services where it is contemplated the Government may furnish the Contractor with materials or supplies not provided for in the contract: FURNISHING OF MATERIALS OR SUPPLIES BY THE GOVERNMENT AT ITS OPTION The Government may at its option from time to time furnish the Contractor with materials or supplies not obtainable in the open market and which are required by the Contractor for the performance of this contract. In such event, an equitable reduction in the contract price shall be made prior to the delivery of such materials or supplies to the Contractor, or as soon thereafter as possible, but in no event later than thirty (30) days after such delivery. [26 F.R. 12439, Dec. 27, 1961] § 1007.4010 Government-furnished property to be returned in kind. Whenever it is considered desirable in a fixed-price contract that Governmentfurnished property which is to be incorporated in the end items be returned by the Contractor in kind, if possible, and if not possible that an adjustment be made in the contract price, the following clause may be used: GOVERNMENT-FURNISHED PROPERTY TO BE Certain property furnished to the Contractor by the Government under the provisions of this contract may be expressly designated to be returnable in kind to the Government. Whenever replacement can be accomplished without delaying production the Contractor agrees to use its best efforts so to return like property. It is agreed that the procedures set forth below will be followed in connection with such property: (a) In the event all the property furnished under this clause is not returned in kind to the Government, the price of supplies delivered to the Government hereunder shall be reduced equitably in accordance with the clause hereof entitled "Changes". (b) To the extent that the Contractor shall, within 90 days after receipt of property from the Government or such extension thereof as may be agreed upon, return like property to the Government, the Government's right to a price reduction, pursuant to subparagraph (a) above shall be waived. (c) In the event of termination of this contract, the parties shall take into consideration, as part of the termination settlement the effect of any adjustment in price required by reason of this clause and not theretofore made. (d) The provisions of the clause of this contract entitled "Government-Furnished Property" shall be applicable to any property furnished the Contractor under this clause. (e) From time to time, and in any event, prior to final payment under this contract a list of the property furnished, the property returned and any adjustment in price by reason thereof shall be evidenced by Change Order or Supplemental Agreement to this contract. [26 F.R. 12439, Dec. 27, 1961, as amended at 27 F.R. 3386, Apr. 10, 1962] § 1007.4011 Recapture clause for equipment rental contracts. (a) When equipment for maintenance and repair is rented from a contractor, the following clause will be included in the rental contract, unless the contracting officer determines that the use of the clause will unduly limit competition: RECAPTURE OF EQUIPMENT (OCT. 1957) (a) When and if the total rental paid or accrued to the Lessor for any equipment covered by this agreement shall equal the agreed value thereof plus percent per month of the agreed value for each contract month or fraction thereof such equipment shall have been subject to use pursuant to this agreement, no further rentals shall accrue hereunder and title to such equipment shall vest in the Government. In such event the Lessor shall forthwith remove without cost to the Government any and all liens or encumbrances against such equipment. (b) At any time during the period of this agreement, the Government may at its option purchase any equipment covered by this agreement, upon the giving of written notice of its intention so to do, by paying the differ ence between the agreed value plus 1 percent per month of the agreed value for each contract month or fraction thereof such equipment shall have been subject to use pursuant to this agreement, and the total rental for such equipment theretofore paid or accrued. Upon the giving of such notice, the Lessor shall forthwith transfer title to such equipment to the Government. (c) The Lessor agrees that in the event the Government acquires title to any equipment covered by this agreement pursuant to subparagraph (a) or (b), of this clause, it will hold the Government harmless against all claims asserted against such equipment, whether asserted prior to or after passage of title to the Government, where such claims arise prior to the vesting of title in the Government. (b) Limitation on rental of equipment. The existence of the above clause will not be construed as the authority for the rental of property. Although otherwise authorized, equipment may be rented only when: (1) Reasonable rental rates are obtainable, and (2) purchase of the equipment would not be more advantageous to the Government than rental. In no event shall equipment be rented when the rental rates are so high that use of the foregoing clause makes the rental contract tantamount to the procurement of equipment on an installment basis. [26 F.R. 12439, Dec. 27, 1961, as amended at 29 F.R. 8064, June 25, 1964] § 1007.4012 Rental of gas cylinders. All contracts which provide for the rental of gas cylinders will contain the more applicable of the following clauses: (a) When one cylinder at a time is rented: RENTAL OF GAS CYLINDERS (JULY 1955) Cylinders shall remain the property of the Contractor and will be loaned, without charge, to the Government for a period of 30 days after the date of shipment of cylinders from the Contractor's plant. Beginning with the first day after the expiration of the 30-day free loan period to and including the day the cylinders are released to the transportation company for return to the Contractor, there will be charged, and the United States agrees to pay the Contractor, a rental of $------ per cylinder per day for the use of such cylinders. (b) When a quantity of cylinders is rented: Cylinders shall remain the property of the Contractor and will be loaned, without charge, to the Government for a period of 30 days after the date of shipment of cylinders from the Contractor's plant. Beginning with the first day after the expiration of the 30-day free loan period to and including the day the cylinders are released to the transportation company for return to the Contractor, there will be charged, and the United States agrees to pay the Contractor, a rental of ------ per cylinder per day, computed on a quantity basis, as indicated below, for the use of such cylinders. This rental charge will be computed separately for oxygen and acetylene cylinders and for each point of delivery named in the contract. A credit of 80 cylinder days will accrue for each cylinder shipped. A debit of 1 cylinder day will accrue for each cylinder for each day held beginning with the day after date of shipment from Contractor's plant to and including the day the cylinder is released to the transportation company for return to the Contractor. At the end of the contract period, in the event the total number of debits exceeds the total number of credits, rental will be charged for the difference. If the total number of credits equals or exceeds the total number of debits, no charge will be made for the use of the cylinders. All cylinders not returned to the Contractor on or before the expiration of a 90-day rental period or lost or damaged beyond repair while in the possession of the United States Government shall be paid for by the United States to the Contractor at a replacement value of $------ for each oxygen cylinder up to 110 cubic feet capacity, 8--for each oxygen cylinder over 110 cubic feet capacity, $------ for each acetylene cylinder up to 150 cubic feet capacity, and 8---for each acetylene cylinder over 150 cubic feet capacity. Cylinders retained or lost and so paid for shall be considered the property of the United States. But if and when located they may, at the option of the Government, be returned to the Contractor, and, in such event, credit shall be allowed to the Government at the replacement value paid, less rental of $------ per day beginning at the expiration of the 30-day period as aforesaid to the date upon which cylinders are turned over to the Carrier for return to Contractors' plant. [26 F.R. 12440, Dec. 27, 1961, as amended at 27 FR. 3386, Apr. 10, 1962] § 1007.4014 Certificate of conform ance. The following clause may be inserted in the contractual documents per § 14.306 of this title, except that it will not be inserted in base procurement documents specifying delivery to the same CONUS base where the base procurement activity is located. When the clause is inserted in base procurement documents, the Certificate of Conformance (COC) will be attached to or entered on the invoice. When the clause is incorporated into a DD Form 1155, either central or base procurement, the portion of the clause inclosed in brackets will be omitted. Omission of the portion in brackets is required because the DD Form 1155 does not include either of the clauses mentioned therein. When the clause is inserted in central procurement documents the COC will be attached to or entered on the DD Form 250 or DD Form 1155. CERTIFICATE OF CONFORMANCE (JUNE 1966) (a) Notwithstanding any clauses of the contract concerning inspection the Government will accept any of the supplies or services to be furnished hereunder upon receipt of a Certificate of Conformance by the Contractor attached to a (DD Form 1155 or DD Form 250 or invoice as applicable), reading substantially as follows: 111) "I hereby certify that I did, on the (date) of (month) 19 ship via (Name of Carrier) on (Bill of Lading No., Receipt, etc.), in accordance with shipping instructions issued by the Contracting Officer, the supplies called for by Contract Number (insert contract number), that such supplies were in the quantities and of the quality called for, and were in all respects in accord with the applicable specifications, or (complete the services called for by Contract Number (insert contract number), item (insert item number) and that such services were in the quantity and of the quality called for, and were in all respects in accord with the applicable specifications). This statement is furnished to support payment of the attached invoice." (b) Notwithstanding any provisions of the certificate above referred to, and [notwithstanding the provisions of paragraph (c) of the clause hereof, entitled, "Inspection” or "Inspection of Supplies and Correction of Defects" as the case may be], the liability of the Contractor with respect to supplies accepted by the Government under the provisions of paragraph (a) above will, after inspection by the Government or after the expiration of a reasonable time following delivery to the Government within which inspection may be made, whichever occurs first, be limited, except as to supplies rejected upon inspection, to liability for latent defects, fraud, or such gross mistakes as amount to fraud. [31 F.R. 13219, Oct. 13, 1966, as amended at 33 F.R. 1014, Jan. 26, 1968] § 1007.4015 Dimensional control requirements for equipment. Any fixed price contract which calls for delivery of supplies may include the following clause. DIMENSIONAL CONTROL REQUIREMENTS FOR EQUIPMENT (DECEMBER 1966) The Contractor in the dimensional control of the articles to be inspected under this contract is required to use any jigs, fixtures and other positioning devices and appliances such as numerically controlled manufacturing or inspection equipment which are essential for the fabrication and inspection of the articles. Such jigs, fixtures or other devices may be of a temporary nature for experimental type articles but shall be adequate to maintain the dimensions called for in the applicable drawing and for the quantity specified. [32 F.R. 3978, Mar. 11, 1967] § 1007.4016 Approved airfields. In fixed-price contracts for aircraft requiring flyaway, the following clause may be included. APPROVED AIRFIELDS (DECEMBER 1966) Unless otherwise provided herein, any airfield or fields [or heliports] to be used by the contractor or the Government for flight acceptance of aircraft in accordance with the provisions of this contract must meet minimum standards which will insure the safe operation of the aircraft in accordance with the applicable flight manual and must be approved in writing by the Government. [32 F.R. 3978, Mar. 11, 1967] § 1007.4035 seded. Prior instrument super Any definitive contract which replaces or supersedes a notice of award or letter contract will contain the following clause: PRIOR INSTRUMENT SUPERSEDED This is the definitive contract contemplated by (Letter Contract) (Notice of Award) dated and designated Contract No. and supersedes said (Letter Contract) (Notice of Award). Any costs incurred or payments made thereunder will be considered to have been made under this definitive contract. [26 F.R. 12443, Dec. 27, 1961] § 1007.4037 Inspection. Any contract for supplies or services, for which another inspection clause is not mandatory, may contain the following clause: INSPECTION All services, material and workmanship shall be subject to inspection and test by representatives of the Government. For this purpose, the Contractor shall allow at all reasonable times inspectors and other Gov. ernment personnel free access to the plant and operations and shall furnish such facilities, supplies and services as may be required for this work. [26 F.R. 12443, Dec. 27, 1961] § 1007.4038 Price warranty. The price warranty clause, while not applicable to advertised procurements, may be used in any negotiated fixed-price contract. This clause is suitable for use in contracts for commercial items, or where a cost breakdown of a contractor's costs is not available or not persuasive. For contracts containing escalation provisions, see § 1003.404-3 of this subchapter. PRICE WARRANTY The Contractor warrants that the prices of the items set forth herein do not exceed those charged by the Contractor to any other customer purchasing the same items in like or comparable quantities. [29 F.R. 2499, Feb. 16, 1964] § 1007.4040 Call procurement arrange ment. Any call procurement arrangement issued according to § 1003.410-3 of this subchapter will contain the following clause in addition to the clauses required or authorized for a contract of the type desired for the procurement arrangement. ORDERS (JAN. 1963) (a) Upon receipt by it of any Delivery Order issued hereunder by the Contracting Officer, the Contractor, pursuant to such Order, shall furnish to the Government supplies or services of the type and at the prices set forth in the Schedule. Orders may be issued at the sole option of the Contracting Officer during the period set forth in the Schedule. It is understood and agreed that the Government undertakes no obligation hereby to issue Orders hereunder. The provisions of this arrangement, including the Schedule, shall govern all Orders issued hereunder during the aforementioned period. (b) Delivery Orders for supplies or services shall be issued by the Contracting Officer in writing, dated, and numbered. They shall set forth (1) the supplies or services being ordered, (ii) the quantities to be furnished, (iii) delivery or performance dates, (iv) place of delivery or performance, and (v) packing and shipping instructions, if any. Amendments to delivery orders may be issued by the Contracting Officer by written change order. Each delivery order or change order which increases the dollar amount, shall contain a citation of funds from which payment for the supplies or services ordered shall be made. [26 F.R. 12444, Dec. 27, 1961, as amended at 28 F.R. 3766, Apr. 18, 1963; 28 F.R. 8246, Aug. 10, 1963; 31 F.R. 16624, Dec. 29, 1966] § 1007.4043 Returnable containers. (a) In placing contracts calling for shipment in containers which may be used more than once, it is necessary to cover the following matters contractually: (1) The contract should state whether (i) there will be a charge to the Government for the containers, (ii) the price of the containers is included either in the unit price or as a separate item, or (iii) the contractor will invoice for the containers at a later date. If there will be a charge for the containers, the method in subdivision (ii) of this subparagraph will be used whenever possible. The method in subdivision (iii) of this subparagraph will be used only when the contractor refuses to do business according to subdivision (ii) of this subparagraph. (2) The contract should state whether the containers are to be returned, and if so, within what time limit. (3) If the contract price includes the price of the containers (either in the unit price or as a separate item) the contract should state whether the containers are considered "one-time shippers" or whether the Government will have the right to return the containers for credit. (4) If the Government has the right to return the containers for credit, provision should be made regarding the time limit, price, f. o. b. point, and consignment instructions. (5) The price of containers should be listed as a separate item on the contract wherever possible, and handled separately on shipping documents and accountable records. (a) The cost of reels is included in the contract price. All reels referred to herein are subject to return by the Government, if in good condition, reasonable wear and tear excepted, at a credit of $------ per reel, within days after delivery to the Government. If returned after said period has elapsed, the amount to be paid the Government therefor shall be decreased 5 percent for each month or fraction thereof in excess of said period. (b) Reels returned as above shall be delivered to the Contractor f. o. b. cars or freight station [here insert city and State of contractor's plant], and the Contractor shall allow the commercial freight charges to such place from point of Government destination hereunder. The Government shall not be responsible for the return of lagging, nor shall the cost of lagging be included in the value of reels. REELS The cost of nonreturnable reels used in supplying the items called for herein is included in the contract price and such reels will not be returned to the Contractor. REELS All reels referred to herein are subject to return by the Government, if in good condition, reasonable wear and tear excepted, within twelve (12) months after the date of delivery, at the price of $------ per reel. REELS The cost of reels is included in the contract price. Such reels may be returned to the Contractor by the Government f. o. b. cars or freight station [here insert city and State of contractor's plant], if in good condition, reasonable wear and tear excepted, within months from and after date of delivery at the price of $ per reel. [26 F.R. 12444, Dec. 27, 1961, as amended at 27 F.R. 3386, Apr. 10, 1962; 32 F.R. 6451, Apr. 26, 1967] § 1007.4045 Payment of fixed fee. The following clause, to comply with § 7.203-4 of this title, "Allowable Cost, Fixed Fee, and Payment," paragraph (c) (2), may be inserted in the schedule of a cost-reimbursement type contract to provide for payment of a fixed-fee as determined payable under Subpart N, Part 1054 of this subchapter. PAYMENT OF FIXED FEE (JULY 1955) The fixed fee shall be paid in monthly installments based upon the percentage of completion of work, as determined by the Contracting Officer. [26 F.R. 12445, Dec. 27, 1961, as amended at 27 F.R. 3386, Apr. 10, 1962; 28 F.R. 3766, Apr. 18, 1963] In performing any work under this contract on premises which are under the direct control of the Government, the Contractor shall (1) conform to all safety rules and requirements prescribed in Air Force Manual |