476 Findings of Fact at Burbank, California. The contractor was required to disassemble the engines and to rework and repair the parts to place them in a satisfactory and usable condition, if they were repairable by the usual and customary engine rebuilding methods and procedures, and to purchase for the account of the Government any replacement parts which the contracting officer authorized to be obtained. Title I of this contract provided in part as follows: I-A Description of Work: The Contractor shall rebuild and deliver to the Government, upon the terms and conditions hereinafter set forth, the following described unserviceable engines to be furnished by the Government to the Contractor in the quantity as hereinafter provided. Item 1: 750 each, Engines, Ford, Model GAA, Federal Stock No. G104-5414700, for M4A3 Tank, to be completely rebuilt and reconditioned by the Contractor in accordance with the requirements of Ordnance Corps Engineering, Change Order No. 19094, dated 4 November 1948, as amended by Ordnance Corps Engineering, Change Orders No. 19094-1 through and including No. 19094 44, insofar as the Engineering Change Orders specified above are applicable to such engines. I-B Price: The price, exclusive of any direct reimbursement to the Contractor for purchase of parts, and for other costs, as hereinafter provided, for rebuilding engines as above described, shall be: $605.61 each, f.o.b. common carrier, Contractor's Plant, Burbank, California. The price stated above shall include the cost to the Contractor of all labor, material, supplies, tools, equipment and facilities required for rebuilding and delivering the above described engines, except as otherwise provided in this contract. Total Contract Price for 750 Engines at $605.61 each Plus estimated amount to be paid to Contractor $454, 207.50 600, 000. 00 Estimated Total Amount of this Contract-- 1,054, 207. 50 I-C-Applicable Drawings and Specifications: The aforementioned Ordnance Corps Engineering Change Order No. 19094, and amending Ordnance Corps Engineering Change Order Nos. 19094-1 to 19094-44, inclu Findings of Fact 154 Ct. Cl. sive, are hereby incorporated in and made a part of, this contract. The drawings, specifications, manuals, and the like, which are referred to in such Engineering Change Orders, and which are applicable to engines, shall be complied with by the Contractor in rebuilding engines hereunder. All such applicable drawings, specifications, manuals and the like, so referred to, shall also be deemed to be incorporated in, and made a part of, this contract by reference. The Government, upon application to it by the Contractor, shall furnish the Contractor with such Engineering Change Orders, drawings, specifications, manuals and the like as are necessary and required by the Contractor for performance under this contract. I-E Government's Obligation to Supply Replacement Parts: (1) The Contractor shall utilize, to the extent possible, the parts of the unserviceable engines being rebuilt, and to that end will repair and rework, insofar as is possible by usual and customary engine rebuilding methods and procedures, all such parts as are repairable, and thereby place such parts in a satisfactory and useable condition. If any parts of unserviceable engines are missing, or are damaged or worn to such an extent as to be incapable of repair by usual and customary engine rebuilding methods and procedures, which shall be determined by the Contracting Officer, then, in such case, such parts shall be replaced by parts to be supplied by the Government as Government-furnished property, either directly from Government sources, or indirectly, by authorizing the Contractor to purchase such parts for the Government's account, in which case the Contractor shall be reimbursed at cost for the parts so purchased, as hereinafter provided. A (2) All parts furnished by the Government shall be delivered to the Contractor f.o.b. common carrier, Contractor's Plant, Burbank, California. If shipment is by rail, the last carrier will be specified as the Southern Pacific Co., unless the Contractor shall hereafter advise otherwise. (3) All such parts shall be accepted "as is" by the Contractor, and, if repairable by usual and customary engine rebuilding methods and procedures, shall be repaired, reworked and placed in a satisfactory and useable condition by the Contractor in the same manner as is required in processing the parts of unserviceable engines, as above provided. There shall be no extra cost to the Government for such processing of parts delivered 476 Findings of Fact to the Contractor by the Government, all such costs being included in the contract price herein provided for rebuilding the unserviceable engines. (4) It shall be the responsibility of the Contractor to estimate its needs for replacement parts sufficiently in advance of its production requirements to avoid any delay in delivery of rebuilt engines under this contract. To this end the Contractor shall requisition from the Government the replacement parts needed by it in the performance of this contract, and the Government, if such requisition is approved by the Contracting Officer, shall deliver to the Contractor as promptly as possible such of the parts as are available. In the event such parts are not available from the Government, or in the event the Government is unable to deliver such parts to the Contractor in sufficient time to meet the Contractor's production requirements, or in the event the Government deems it more advantageous to purchase such replacement parts from commercial sources, then in any of such events, the Contracting Officer shall authorize and approve the purchase of such replacement parts by the Contractor on the most advantageous terms from commercial sources and the Contractor shall be reimbursed for the actual cost of the parts purchased, as hereinafter provided. The Contractor agrees to purchase for the account of the Government any required replacement parts which the Contracting Officer has authorized it to obtain, and shall, in good faith, purchase such parts at the best price and upon the most advantageous terms possible. I-F Utilization of Contractor's Plant by the Government: (1) Until completion or other termination of this contract, the Contracting Officer may provide such "on the job" personnel at the Contractor's Plant as he deems necessary to protect the Government's rights and interests under this contract, and to enable prompt "on the job" decisions and approvals with respect to Contractor's purchase orders and invoices, inspection and acceptance of rebuilt engines, disposal of salvage and scrap, shipping instructions, and such other matters as will permit the expeditious and efficient performance of this con tract. I-H_Inspection and Acceptance at Contractor's Plant, Burbank, California, by the Los Angeles Ordnance District. Final inspection and acceptance of rebuilt engines shall be effected by the Government's inspectors promptly with respect to all such engines as Findings of Fact 154 Ct. Cl. are ready for delivery, and acceptance of such engines by the Government will not be delayed because of the Government's failure to give shipping instructions promptly or because the Government desires that any such engines be held in temporary storage pending such shipping instructions. The contract provided for the delivery of the rebuilt engines f.o.b. plaintiff's plant at Burbank, California at 50 during April 1952; 125 in May; 175 in June; and 200 each in July and August 1952. 4. Contract Ord. 242 was a dual purpose agreement. Under title I the contractor was required to rebuild 750 tank engines at a fixed price. Title II of this contract provided for the reimbursement to the contractor for its cost of the additional parts and supplies procured by the contractor for the account of the Government, and the cost of repairs or replacement of shipping containers, as necessary and required to rebuild the engines provided under title I. Title II of this contract provided in part: II-A Scope of Reimbursable Costs: With the exception of such costs and expenditures by the Contractor as are defined in this Title II as reimbursable costs, all costs of rebuilding engines and other performance under this contract shall be included in the unit price of the rebuilt engines to be delivered hereunder, including, but not limited to, the cost of labor; the cost of all materials and supplies used in rebuilding, but excluding such materials and supplies when used by the Contractor in the manufacture of parts or the extraordinary reclamation of parts, as provided in this Title II; the cost of tools, equipment and facilities of the Contractor and not furnished by the Government; the cost of packing and marking, except as to such repair of containers as is hereafter defined in this Title II as a reimbursable cost; the cost of handling, temporary storage and loading on board common carrier; and all other costs of a similar nature which are not expressly defined in this Title II as a reimbursable cost. II-B Replacement Parts: (1) For the purposes of this contract, a replacement part for engines being rebuilt hereunder shall be all parts, accessories, components and attachments of such engines as are necessary and required to rebuild such engines in accordance with the requirements of this contract, and shall include parts common, or otherwise, 476 Findings of Fact such as nuts, bolts, washers, gaskets, miscellaneous hardware and the like, which are actually installed in or attached to the completed engine when it is in operation, but shall not include items of expendable supply such as masking and other tapes, shellac or the like attached to such engine at the time of delivery to protect in shipment, close open vents in engine or the like; nor shall be included any items of supply such as gas and oil or supplies or materials used in testing such engine prior to delivery thereof. (2) When authorized, in writing, by the Contracting Officer or by his duly authorized representative, the Contractor shall procure from commercial or other sources such replacement parts, accessories, components and attachments (hereinafter called replacement parts) of unserviceable engines as are necessary and required in the rebuilding thereof. The Contractor in good faith shall procure such parts from reliable suppliers, at the best prices and upon the most advantageous terms possible. Upon delivery thereof to the Contractor, the Contractor shall be reimbursed for such replacement parts as follows: (i) The actual net invoice purchase price of the Items so procured; and (ii) The cost of transportation by common carrier, if any, of such items to Contractor's Plant, if the price of the items procured does not include such transportation. II-D Supplies: (1) The Contractor shall be reimbursed for the cost of all gasoline, oil, and degreasing and cleaning compounds and solvents used in the testing and rebuilding of such engines in accordance with the applicable provisions of this contract, as follows: (i) The actual net invoice purchase price of the items so procured and used; and (ii) The cost of transportation by common carrier, if any, of such items to Contractor's Plant, if the price of the items procured does not include such transportation. II-E Repair of Shipping Containers: *** Upon completion of the repair of each lot of damaged containers, the contractor shall be reimbursed for the cost of such repairs as follows: (i) The actual net price of all material required in the manufacture of such items; (ii) The cost of transportation by common carrier, if any, of material required; or of the shipping container if same is repaired in a plant of the contractor other |