$9-8.504-2 Scrap warranty.

Release from liability under scrap warranties shall be reviewed in accordance with $9-8.512(b).

$9-8.505 Screening of serviceable and usable property.

(a) When the contracting officer determines that application of ERDA circularization requirements would result in an appreciable increase in disposal costs involving retention of personnel after the contract has been terminated, rental of storage space, or other factors, arrangements should be made locally with GSA to screen inventory schedules on an accelerated basis.

(b) Priority in the acquisition of serviceable or usable property included in contractor's inventory shall be as follows:

(1) The ERDA office administering the contract,

(2) Other activities of the ERDA,

(3) Other agencies of the Government.

(c) The ERDA circulation requirements set forth in ERDA-PMI 109-43 are applicable to personal property in the contractor's inventory schedules.

$9-8.507 Sale or other disposition of termination inventory.

(a) All sales shall be in accordance with instructions set forth in ERDA-PMI 109.45.

(b) Any property which is included in the contractor's inventory schedules, which has not been acquired by the Government under $98.505 or donated under §9-8.508, may be acquired by the contractor or sold by the contractor to a third party, at any time after notification by the contracting officer that screening has been accomplished or will not be required. Generally, any such acquisition by the contractor or sale to a third party shall be on a competitive basis. Any acquisition or sale shall be in accordance with applicable laws and regulations. Any such acquisition or sale shall be subject to the approval of the contracting officer, as part of or prior to the final settlement.

$9-8.507-5 Applicability of antitrust laws.

Heads of procuring activities and Headquarters officials having

the contracting responsibility shall furnish two copies of the notification referred to in FPR 1-8.507-5 to the Office of the General Counsel and one copy to the senior procurement official, Headquarters.

$9-8.507-6 Foreign contractor inventory.

Contractor inventory located in foreign countries shall be handled in accordance with ERDA-PMI 109-45.

$9-8.507-50 Sales without competition.

(a) See ERDA-PMI 109-45.

(b) Sales or acquisitions by the contractor without competitive bids may be authorized by the contracting officer only in exceptional or unusual cases. Subject to the terms of the contracts, such sales or acquisitions without competitive bids may be negotiated at prices that are fair and reasonable and not less than the proceeds that could reasonably be expected to be obtained if the property were offered for competitive sale at that time.

(c) Any sales made under paragraph (b) of this section shall be reviewed to the extent required by §9-8.512.

$9-8.507-51 Extension of credit.

Contractors shall not be required to extend credit to purchasers, and any sales made by contractors on credit shall be at their own risk.

$9-8.508 Donations.

It is ERDA policy to utilize the established donation procedure in disposal of termination inventory. For detailed procedures, see ERDA-PMI 109-44.

$9-8.509

Destruction or abandonment.

For detailed procedures, see ERDA-PMI 109.45.

$9-8.512 Review of property disposal.

The following property disposal actions shall be reviewed by ERDA employees designated to act as property disposal reviewing authorities:

(a) Determinations that termination inventory is scrap or salvage (the nature of the review of such determinations shall depend

upon the acquisition cost and location of the property involved and such other considerations as the contracting officer determines to be pertinent);

(b) Release from liability under a scrap warranty, if the original acquisition cost of the material is $10,000 or more;

and

(c) Sales;

(d) Proposals to destroy, abandon, or donate to a public body;

The standard clauses set forth in FPR 1-8.701 through 1-8.710 are applicable as prescribed in FPR 1-8.700-2, subject to the following:

(a) Architect-engineer contracts should also contain an appropriate termination clause approved by counsel.

(b) Cost principles referenced in the various termination articles shall be in accordance with Part 9-15.

$9-8.751 Termination article for cost-plus-a-fixed-fee

architect-engineer contracts.

The following article is suggested for use in cost-plus-a-fixedfee contracts:

ence.

Termination--(a) Notice of termination for default or conveniThe Contracting Officer may at any time terminate performance of the work under this contract in whole or from time to time in part for the default of the contractor or for the convenience of the Government by written notice to the contractor stating the ground for termination. Such termination shall be effective in the manner and

upon the date specified in said notice and shall be without prejudice to any claims which the Government may have against the contractor. Upon receipt of such notice and except as otherwise directed by the Contracting Officer, the contractor shall:

(1)

Stop work under the contract on the date and to the extent specified in the notice of termination;

(2) Place no further orders or subcontracts for materials, services, or facilities, except as may be necessary for completion of such portion of the work under the contract as is not terminated; and

(3) Terminate all orders and subcontracts to the extent they relate to the performance of work terminated by the notice of termination.

(b) Termination for default. (1) If the contractor refuses or fails to prosecute the work, or any separable part thereof, with such diligence as will insure its completion within the time specified in this contract, or any extension thereof, or fails to complete said work within such time, or if the contractor fails to perform any of the other provisions of this contract, the Contracting Officer may terminate for default the contractor's right to proceed with the work as to which there has been delay: Provided, That the performance of the work shall not be terminated for default because of any delays in the completion of work due to unforeseeable causes beyond the control and without the fault or negligence of the contractor, including, but not restricted to, acts of God, or the public enemy, acts of the Government in either its sovereign or contractual capacity, acts of another contractor in the performance of a contract with the Government, fires, floods, epidemics, quarantine restrictions, strikes, freight embargoes, and unusually severe weather or delays of subcontractors or suppliers arising from unforeseeable causes beyond the control and without the fault or negligence of both the contractor and subcontractors or suppliers, and if the contractor within ten (10) days from the beginning of any such delay (unless the Contracting Officer grants a further period of time prior to the date of final settlement of the contract) notifies the Contracting Officer in writing of the causes of delay. The Contracting Officer shall ascertain the facts and the extent of the delay and extend the time for completing the work when in his judgment the findings of fact justify such an extension, and his findings of fact thereon shall be final and conclusive on the parties hereto, subject only to appeal by the contractor to the Administrator or his designee in accordance with Article hereof entitled "Disputes."

(2) If, after notice of termination of this contract for default under (1) above, it is determined for any reason that the

contractor was not in default pursuant to (1), or that the contractor's failure to perform or to make progress in performance is due to causes beyond the control and without the fault or negligence of the contractor pursuant to the provisions of this clause relating to excusable delays, the notice of termination shall be deemed to have been issued for the convenience of the Government under this clause, and the rights and obligations of the parties hereto shall in such event be governed accordingly.

(c) Liability for costs on default. If performance of the work under this contract is terminated for the default of the contractor, the Government may complete or employ any other person or persons to complete the work, and the contractor shall be liable to the Government for increased costs occasioned the Government by the default.

(d) Terms of settlement. Upon the termination of performance of work under this contract, full and complete settlement of all claims of the contractor with respect to the terminated work shall be made as follows:

(1) Assumption of contractor's obligations. The Government shall have the right in its discretion to assume all obligations, commitments, and claims that the contractor may have theretofore in good faith undertaken or incurred in connection with the terminated work, the cost of which would be allowable in accordance with the provisions of this contract; and the contractor shall, as a condition of receiving the payments mentioned in this article, execute and deliver all such papers and take all such steps as the Contracting Officer may require for the purpose of fully vesting in the Government all the rights and benefits of the contractor, related to such obligations, commitments, and claims.

(2) Payment for allowable costs.

The Government shall treat

as allowable costs all expenditures made in accordance with Article hereof entitled "Allowable costs and fixed fee" not previously so allowed or otherwise credited.

(3) Payment for termination expense. If performance of work under the contract is terminated for the convenience of the Government, the Government shall reimburse the contractor for such further expenditures made after the date of termination for the protection of Government property and for such legal and accounting services in connection with settlement as are required or approved by the Contracting Officer.

(4) Payments on account of fixed fee. If performance of work under the contract is terminated for the convenience of the Government, the contractor shall be paid that portion of the fixed