FORM

GSA APR 3 1468

1. WORKMANSHIP AND MATERIALS. Unless otherwise provided in the contract requirements and specifications, the Contractor shall furnish all labor, materials and equipment necessary for satisfactory contract performance. When not specifically identified in the specifications, such materials and equipment shall be of a suitable type and grade for the purpose. Each item or article shall be subject to inspection and/or test and approved by the Contracting Officer, when he so requires. All material and workmanship and equipment shall be subject to the inspection and approval of the Contracting Officer or his representative.

2. SUPERVISION. The Contractor shall arrange for satisfactory supervision of the contract work. The Contractor or his supervisors shall be available at all times, when the contract work is in progress, to receive instructions from the Contracting Officer or his representative.

3. QUALIFICATIONS OF EMPLOYEES. The Contracting Officer may require dismissal from the work of employees which he deems incompetent, careless, insubordinate, unsuitable or otherwise objectionable, or whose continued employment he deems contrary to the public interest or inconsistent with the best interests of national security. The Contractor shall fill out and cause each of his employees on the contract work to fill out, for submission to the Government, such forms as may be necessary for security or other reasons. Upon request of the Contracting Officer, he and his employees shall be fingerprinted by Government personnel assigned to that duty.

(b) In the event of any violation of e sions of paragraph (a) the Contractor and any subcontractor responsible for each violations shall be liable to any affected employee for his unpaid wages. In addition, such Contractor or subcontractor shall be liable to the United States for liquidated damages. Such liquidated damages shall be computed, with respect to each individual laborer or mechanic employed in violation of the provisions of paragraph (a), in the sum of $10 for each calendar day on which such employee was required or permitted to work in excess of eight hours or in excess of forty hours in a workweek without payment of the required overtime wages.

(c) The Contracting Officer may withhold, or cause to be withheld, from any moneys payable on account of work performed by the Contractor or subcontractor, the full amount of wages required by this contract and such sums as may administratively be determined to be necessary to satisfy any liabilities of such Contractor or subcontractor for liquidated damages as provided in paragraph (b).

7. COVENANT AGAINST CONTINGENT FEES. The Contractor warrants that no person or selling agency has been employed or retained to solicit or secure this contract upon an agreement or understanding for a commission, percentage, brokerage, or contingent fee, excepting bona fide employees or bona fide established commercial or selling agencies maintained by the Contractor for the purpose of securing business. For breach or violation of this warranty the Government shall have the right to annul this contract without liability or in its discretion to deduct from the contract price or consideration, or otherwise recover, the full amount of such commission, percentage, brokerage, or contingent fee.

8. OFFICIALS NOT TO BENEFIT. No Member of Congress or resident Commissioner shall be admitted to any share or part of the contract or to any benefit that may arise therefrom, but this provision shall not be construed to extend to the contract if made with a corporation for its general benefit.

9. DEFAULT. The Government may, by written notice to the Contractor, terminate the Contractor's right to proceed as to the whole or any part of the contract (a) if the Contractor fails to perform the services within the time specified or any extension thereof, or (b) so fails to make progress as to endanger performance of the contract in accordance with its terms, or (c) the Contractor fails to perform any other provisions of the contract, and does not cure such failure as to (b) or (c) within 10 days (or such longer period if authorized) after receipt of written notice of such failure from the Contracting Officer. In the event of such termination, the Government may procure or furnish, upon such terms and in such manner as the Contracting Officer may deem appropriate, services similar to those so terminated, and the Contractor shall be liable to the Government for any excess costs for such services: Provided, That the Contractor shall not be liable for any increased costs if failure to perform the contract arises out of causes beyond his control and without his fault or negligence and that of his subcontractors or suppliers.

10. TERMINATION FOR CONVENIENCE OF THE GOVERNMENT. The Contracting Officer, by written notice, may terminate performance of work under this contract, in whole or in part, when it is in the best interest of the Government. The termination of the contract and compensation to the Contractor shall be governed by the Federal Procurement Regulations in effect on the date of the contract (41 CFR 1-8).

11. DISPUTES. Any dispute concerning a question of fact arising under this contract, not disposed of by agreement, shall be decided by the Contracting Officer, who shall reduce his decision to writing and furnish a signed copy to the Contractor. Such decision shall be final and conclusive unless, within 30 days from the date of receipt thereof, the Contractor mails or otherwise furnishes to the Contracting office written appeal, addressed to the Administrator of General Services. The Contractor shall be afforded an opportuhity to be heard and to offer evidence. The decision of the AdminYstrator or big authorized representative shall be final and conclusive unless fraudulent, capricious, arbitrary, so grossly erroneous s necessarily to imply bad faith, or not supported by substantial evidence. Pending final decision of a dispute hereunder, the Contractor shall proceed diligently with the performance of the contract and in accordance with the Contracting Officer's decision.

12. CONVICT LABOR. In connection with the performance of work under this contract, the Contractor agrees not to employ any person undergoing sentence of imprisonment at hard labor.

13. ASSIGNMENTS. Claims for moneys due or to become due to the Contractor from the Government may be assigned to others only as permitted by the Assignment of Claims Act of 1940, as amended (31 U.S. Code 2. 3. 41 U.S. Code 15). The contract itself shall not be assigned.

14. SAVE HARMLESS AND IN EMNITY AGREEMENT. The Contractor shall save and keep harmless and indemnify the Government against any and all liability, claims, and costs of whatsoever kind and nature for injury to or death of any person or persons and for loss or damage to any property (Government or otherwise) occurring in connection with or in any way incident to or arising out of the occupancy, use, service; operations, or performance of work in connection with this contract, resulting in whole or in part from the negligent acts, fault or omissions of Contractor, any subcontractor, or any employee, agent, or representative of Contractor or any subcontractor.

15. UTILIZATION OF SMALL BUSINESS CONCERNS.

(a) It is the policy of the Government as declared by the Congress that a fair proportion of the purchases and contracts for supplies and services for the Government be placed with small business

concerns.

(b) The Contractor agrees to accomplish the maximum amount of subcontracting to small business concerns that the Contractor finds to be consistent with the efficient performance of this contract,

33-622 O-65-9

§ 5C-1.000 Scope of part.

This part describes the method and procedures by which the Defense Materials Service (DMS) implements and supplements the Government-wide Federal Procurement Regulations (Chapter 1 of Title 41, Code of Federal Regulations) and the GSA-wide procurement policies and procedures (Chapter 5 of the General Services Administration Procurement Regulations; Chapter 5 of Title 41, Code of Federal Regulations).

Subpart 5C-1.1-Introduction § 5C-1.101 Scope of subpart.

This subpart establishes Chapter 5C of the General Services Administration Procurement Regulations (41 CFR 5C); states its relationship to the Federal Procurement Regulations (FPR) and Chapter 5 of the General Services Administration Procurement Regulations (GSPR); and sets forth other introductory information.

§ 5C-1.102 Establishment of Chapter 5C, General Services Administration Procurement Regulations.

This Chapter 5C of the GSPR is prescribed by the Commissioner, Defense Materials Service, and is established to provide all DMS activities with additional uniform operating policies and procedures applicable to the procurement of personal property and nonpersonal services.

§ 5C-1.103 Relationship of Chapter 5C to the FPR and Chapter 5, GSPR.

(a) Chapter 5C implements and supplements the FPR and Chapter 5, GSPR. Implementing material is that which expands upon related FPR or Chapter 5 material. Supplementing material is that for which there is no counterpart in the FPR or Chapter 5.

(b) Material published in the FPR or Chapter 5 becomes effective throughout DMS upon the effective date of the particular FPR or Chapter 5 material. Such material will not be repeated, paraphrased, or restated in Chapter 5C. Therefore, all three must be consulted to obtain comprehensive coverage of DMS-wide procurement operating policies and procedures.

(c) Material in Chapter 5C implements and supplements but does not supersede the FPR or Chapter 5, unless a deviation has been authorized and the deviation is explicitly referenced. In cases of other conflict or when Chapter 5C contains no related material implementing the FPR or Chapter 5, the FPR or Chapter 5 will govern.

(3) Policies or procedures which are effective on an experimental basis for a reasonable period.

(4) Policies or procedures pertaining to other functions of DMS as well as to procurement functions where the issuance should be made available simultaneously to all DMS employees concerned.

(5) Where speed of issuance is essential and numerous changes are required in Chapter 5C, which changes cannot be made promptly.

(b) Procurement policies and procedures issued in other than the FPR System format under paragraphs (a) (4) and (5) of this section will be codified into Chapter 5C at the earliest practicable date, but in any event not later than six months from date of issuance. § 5C-1.106 Method of issuance.

(a) All Chapter 5C material deemed necessary to enable business concerns, and others interested, to understand DMS procurement policies and procedures will be published in the FEDERAL REGISTER. Other related material also may be published in the FEDERAL REGISTER when its inclusion will provide a logical, comprehensive statement of DMS procurement policies and procedures.

(b) GSPR Chapter 5C material published in the FEDERAL REGISTER Will be published in cumulative form in Chapter 5C of Title 41 of the Code of Federal Regulations (41 CFR Ch. 5C). The FEDERAL REGISTER and Title 41 of the Code of Federal Regulations may be purchased from the Superintendent of Documents, Government Printing Office, Washington 25, D.C.

§ 5C−1.107 Arrangement.

§ 5C−1.107–1 General plan.

Chapter 5C is divided into parts, subparts, sections, subsections, and further subdivisions as required.

subpart, section, or subsection of Chapter 5C will be numbered (and captioned) to correspond to the FPR or the Chapter 5 part, subpart, section, or subsection.

(c) Where Chapter 5C supplements the FPR or Chapter 5 and thus deals with subject matter not contained in the FPR or Chapter 5, the numbers in the group 70 through 89 will be assigned to the respective supplementing parts, subparts, sections, or subsections.

(d) Where the subject matter contained in a part, subpart, section, or subsection of the FPR or Chapter 5 requires no implementation, Chapter 5C will contain no corresponding part, subpart, section, or subsection number. Thus, there may be gaps in the Chapter 5C series of part, subpart, section, or subsection numbers. In such cases, reference must be made to the FPR and Chapter 5 for policy and procedure applicable throughout DMS.

§ 5C−1.1073

Cross-references.

(a) Within Chapter 5C, cross-references to the FPR and Chapter 5 will be made in the same manner as used within the FPR. Illustrations of cross-references to Chapter 5 are:

(1) Part 5-3.

(2) Subpart 5-3.1.

(3) § 5-3.413-5.

(b) Within Chapter 5C, cross-references to parts, subparts, and sections will be made in a manner generally similar to that used in making cross-references to the FPR. For example, this paragraph would be referenced as "§ 5C1.107-3(b)."

§ 5C-1.108 Citation.

(a) Citation in formal documents, such as legal briefs, shall give the number of the part, subpart, or section of Chapter 5C, following the words "General Services Administration Procurement Regulations" and shall include an appropriate reference to "41 CFR where the material has been published in the FEDERAL REGISTER.

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