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§ 7.404-6 Reports of work.

REPORTS OF WORK (JULY 1960)

(a) The contractor shall submit reports making full disclosure of all work done and the results thereof, in the manner, at the times, and to the extent set forth in the Schedule; provided that, unless otherwise specified in the Schedule, the Contractor shall submit such reports in triplicate from time to time as requested and upon completion (or earlier termination) of the work. Except as may be otherwise specified in the Schedule, or unless the Contractor is otherwise instructed, the Contractor shall, upon completion (or earlier termination) of the work, deliver any working drawings and specifications of any prototypes as may have been developed.

(b) If the Contractor becomes unable to complete the contract work and to deliver at the time specified in the Schedule because of technical difficulties, notwithstanding the exercise of good faith and diligent efforts in performance of the work, he shall give the Contracting Officer written notice of the anticipated delays with reasons therefor, not less than forty-five (45) days before the completion date specified in the Schedule or within such time as the Contracting Officer deems sufficient. When notice is so required, the Contracting Officer may, in his discretion, extend the time specified in the Schedule for such period as he deems advisable.

In the above clause, the words "Task Order" or other appropriate designation may be substituted for the word "Schedule," as appropriate. Paragraph (a) may be used without paragraph (b). The last sentence of paragraph (b) may be omitted.

Subpart E-Clauses for Personal
Services Contracts

§ 7.500 Scope of subpart.

This subpart sets forth uniform contract clauses for use in personal services contracts referred to in § 7.502.

§ 7.502 Applicability.

As used throughout this subpart, the term "personal services contract" applies only to a contract entered into with an individual, other than an alien scientist, for personal services to be performed by that individual under Government supervision and paid for on a time basis. It does not apply to contracts with firms or organizations.

§ 7.503 Required clauses.

The following clauses shall be inserted in all personal services contracts, except as indicated:

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Payment for the services performed by the Contractor, as set forth in the Schedule of this contract, shall be made at the rates prescribed, upon the submission by the Contractor of proper invoices or time statements to the office or officer designated herein and at the time provided for herein. In addition to the foregoing the Contractor shall be paid (1) a per diem rate in lieu of subsistence for each day the Contractor is in a travel status away from his home or regular place of employment in accordance with Standardized Government Travel Regulations as authorized in appropriate Travel Orders; and (11) such other transportation expenses as may be provided for in the Schedule.

§ 7.503-3 Assignment of claims.

ASSIGNMENT OF CLAIMS (JAN. 1953)

No claim arising under this contract shall be transferred or assigned by the Contractor. § 7.503-4 Disputes.

Insert the contract clause set forth in § 7.103-12. In accordance with Department procedures, the foregoing clause may be modified to provide for intermediate appeal to the Head of the Procuring Activity concerned. The decision of the Contracting Officer referred to in the above clause shall, if mailed, be sent by certified mail, return receipt requested.

§ 7.503-5 Officials not to benefit.

Insert the contract clause set forth in § 7.103-19, omitting the final clause which begins, "but this provision

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§ 7.503-6 Covenant against contingent fees.

Insert the contract clause set forth in § 7.103-20.

§ 7.503-7 Termination.

TERMINATION (JAN. 1953)

This contract may be terminated by the Government at any time within the period of its duration upon not less than 15 days' written notice by the Contracting Officer to the Contractor. The Contractor, with the written consent of the Contracting Officer, may terminate this contract upon not less than 15 days' written notice to the Contracting Officer, and the consent of the Contracting Officer shall not unreasonably be withheld.

§ 7.503-8 Approval of contract.

APPROVAL OF CONTRACT (JAN. 1953)

This contract shall be subject to the written approval of the Secretary or his duly authorized representative and shall not be binding until so approved.

§ 7.503-9 Patents.

Insert the clause set forth in § 9.108 of this subchapter, which is based on Executive Order 10096, provided, however, that upon written request by the prospective contractor and approval by the head of the procuring activity or his authorized representative, the clause may be modified or omitted, as the case may be, where (a) the period of employment is to be not more than 90 days in any one calendar year, or (b) both the following conditions are present: (1) the period of employment called for in the contract, or in any renewal thereof, is more than 90 days but not more than one year of full-time service, and (2) the prospective contractor is bound by an obligation which existed prior to entering into the proposed contract with the Government and which was not entered into in contemplation thereof, the discharge of which would be inconsistent with the discharge of any obligation arising under Executive Order 10096.

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Insert the clause set forth below in all contracts involving security information which are classified "Top Secret," "Secret," or "Confidential," by a military department, and in any other contract, the performance of which will require access to classified matter, except that this clause is not required to be used in contracts performed outside the United States, its Territories, its possessions, and Puerto Rico.

MILITARY SECURITY REQUIREMENTS (MAR. 1954)

(a) The provisions of the following paragraphs of this clause shall apply only if and to the extent that this contract involves access to security information classified "Top Secret," "Secret," or "Confidential."

(b) The Contractor (1) shall be responsible for safeguarding all classified security information in accordance with instructions furnished by the Contracting Officer and shall not supply, disclose or otherwise permit access to classified security information to any unauthorized person, (ii) shall not make or permit to be made any reproduc

tions of matter classified "Top Secret" except with the prior written authorization of the Contracting Officer, (iii) shall not make or permit to be made any reproductions of security information classified "Secret" or "Confidential," except as may be essential to performance of the contract, (iv) shall submit to the Contracting Officer, at such times as the Contracting Officer may direct, an accounting of all reproductions of security information classified "Top Secret," "Secret," or "Confidential," and (v) shall not incorporate in any other project any matter which will disclose classified security information except with the prior written authorization of the Contracting Officer.

(c) Except with the prior written consent of the Secretary or his duly authorized representative, the Contractor (1) shall not permit any alien to have access to classified security information, and (ii) shall not permit any individual to have access to security information classified "Top Secret" or "Secret." Access to security information classified "Confidential” will be granted only in accordance with governing regulations of the Department of Defense.

(d) The Contractor agrees to submit immediately to the Contracting Officer a complete confidential report of any information which the Contractor may have concerning existing or threatened espionage, sabotage, or subversive activity.

(e) The Government agrees that when shall necessary it indicate by security classification ("Top Secret," "Secret," or "Confidential"), the degree of importance to the national defense of information to be furnished by the Contractor to the Government or by the Government to the Contractor, and the Government shall give written notice of such security classification to the Contractor and of any subsequent changes thereof. The Contractor is authorized to rely on any letter or other written instrument signed by the Contracting Officer changing the security classification of matter.

(f) Any disagreement concerning a question of fact arising under this clause shall be considered a dispute within the meaning of the clause of this contract entitled "Disputes."

§ 7.504-2 Data and copyrights.

If it is probable that the contractor will prepare and deliver to the Government in the performance of the contract writings, sound recordings, pictorial reproductions, drawings or other graphical representations and works of any similar nature (whether or not copyrighted), insert an appropriate clause in accordance with departmental procedures. § 7.505

Additional clause.

The following clause shall be inserted in personal services contracts in accordance with Department procedures when

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Sec. 8.802-3 8.802-4

8.082-5

8.802-6

8.802-7

8.802-8

DD Form 831-Settlement Proposal-Short Form.

DD Form 542-Inventory Sched-
ule A-Metals in Mill Product
Form.

DD Form 542c-Inventory Sched-
ule A-Continuation Sheet.
DD Form 543-Inventory Sched-
ule B-Raw Materials.
DD Form 543c-Inventory Sched-
ule B-Continuation Sheet.
DD Form 544-Inventory Sched-
ule C-Work in Process.
DD Form 544c-Inventory Sched-
ule C-Continuation Sheet.
DD Form 545-Inventory Sched-
ule D-Dies, Jigs, Fixtures, etc.,
and Special Tools.

DD Form 545c-Inventory Sched-
ule D-Continuation Sheet.
DD Form 832-Inventory Schedule
E-Short Form for Use with DD
Form 831 Only.

8.802-9
8.802-10 DD Form 548-Application for
Partial Payment.

DD Form 546-Schedule of Accounting Information.

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with the Federal Register Division; copies of forms may be obtained through the contracting officer in any of the military departments.)

AUTHORITY: §§ 8.000 to 8.807 issued under R. S. 161, sec 2202, 70A Stat. 120; 5 U. S. C. 22, 10 U.S.C. 2202. Interpret or apply secs. 2301-2314, 70A Stat. 127-133; 10 US.C. 23012314.

SOURCE: §§ 8.000 to 8.807 appear at 25 F.R. 14209, Dec. 31, 1960.

§ 8.000 Scope and applicability of part.

(a) This part establishes uniform policies and procedures relating to the complete or partial termination of contracts for the convenience of the Government or for default. It includes uniform contract clauses with respect to termination and excusable delay, and approved termination and settlement forms.

(b) This part applies to contracts which by their terms provide for termination for the convenience of the Government or for the default of the contractor, whether or not the clauses in the contract with respect to termination and excusable delay are those set forth in Subpart G of this part. In the event the clauses actually used in the contract are inconsistent with the provisions of this part, the clauses actually used shall control to the extent of the inconsistency. Contracts which do not contain the applicable clauses may, where it is in the best interest of the Government, be amended by agreement prior to or after termination of the contract, to include or substitute such a clause.

(c) This part also applies to the disposal of contractor inventory arising out of any modification of a cost-reimbursement type contract pursuant to the Changes clause.

(d) When the Head of a Procuring Activity so authorizes, the provisions of this part may be utilized

(1) In determining any equitable adjustment as a result of modification of any contract other than a cost-reimbursement type contract pursuant to the Changes clause;

(2) In the disposal of any property which has become obsolete or excess for any reason under a contract whenever the cost of such property is made the basis of a claim by the contractor against the Government; or

(3) In the disposal of contractor inventory generally.

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