In accordance with the requirements of § 9.107 of this chapter, insert the appropriate contract clause set forth therein with additional or alternate paragraphs as prescribed therein. However, in the case of contracts awarded on the basis of no profit, the percentage amount specified to be withheld under paragraph (g) of the clause set forth in § 9.107-5(a) of this chapter or paragraph (f) of the clause set forth in § 9.107-5 (b) and (c) of this chapter may be changed from "ten percent (10%)" to "one percent (1%)". [30 F.R. 6968, May 25, 1965] (a) Except as provided in paragraph (b) of this section, insert an appropriate security requirements clause in accordance with the provisions of § 7.104-12. (b) In any research and development contract with an educational institution when the contract is awarded on the basis of no profit, insert an appropriate security requirements clause in accordance with the provisions of § 7.402-24 (b). (c) The contracting officer or his authorized representative shall prepare and transmit to the contractor and the Government representative having security cognizance over the contract involved a Security Requirements Check List (DD Form 254) or other written notification, in accordance with § 16.811 of this chapter. [28 F.R. 12570, Nov. 23, 1963] § 7.302-26 Utilization of concerns in labor surplus areas. In accordance with the requirements of § 1.805-3 (a) of this subchapter, insert the clause set forth therein. [27 F.R. 3451, Apr. 11, 1962] § 7.303 Clauses to be used when applicable. [25 F.R. 14201, Dec. 31, 1960] Contract Termination-Debarment. Employee Compensation-Cape Kennedy, Patrick Air Force Base, and Merritt Island Launch Area. (b) In accordance with the requirements of § 6.204-5 of this chapter, insert the clause entitled Buy American Act. [30 F.R. 5987, Apr. 29, 1965] § 7.303-2 Filing of patent applications. In accordance with the requirements of § 9.106 of this chapter, insert the contract clause set forth in § 9.106 or § 9.106-1 of this chapter, as appropriate. [25 F.R. 14201, Dec. 31, 1960] § 7.303-3 Reporting of royalties. In accordance with the requirements of § 9.110 of this chapter, insert the contract clause set forth therein. [25 F.R. 14201, Dec. 31, 1960] § 7.303-4 Excess profit. In accordance with the requirements of § 7.104-11, insert the appropriate contract clause set forth therein. [25 F.R. 14201, Dec. 31, 1960] § 7.303-5 Preference for certain domestic commodities. In accordance with the requirements of § 6.305 of this chapter, insert the contract clause set forth therein. [25 F.R. 14201, Dec. 31, 1960] § 7.303-6 Priorities, allocations, and allotments. In accordance with the requirements of § 1.307-2 of this chapter, insert the contract clause set forth in § 7.104-18. [25 F.R. 14201, Dec. 31, 1960] § 7.303-7 Government property. In accordance with the requirements set forth in §§ 13.702 and 13.706 of this chapter, insert the appropriate contract clause. [30 F.R. 1736, Feb. 9, 1965] § 7.303-8 Soviet-controlled areas. In accordance with the requirements of § 6.403 of this chapter, insert the contract clause set forth therein. [25 F.R. 14201, Dec. 31, 1960] § 7.303-9 Notice to the Government of labor disputes. Insert the clause set forth in § 7.104-4 in all contracts involving the furnishing or production of any item on the Department of Defense Master Urgency List and in any other contract of a class or kind which the Head of the Procuring Activity concerned determines to be appropriate for the use of such a clause. [25 F.R. 14201, Dec. 31, 1960] § 7.303-10 Limitation on withholding of payments. Insert the clause in § 7.104-21 (a) when required by § 7.104-21. [25 F.R. 14201, Dec. 31, 1960] § 7.303-11 Small Business Subcontracting Program. In accordance with the requirements of § 1.707-3(b) of this subchapter, insert the clause set forth therein. [27 FR. 3451, Apr. 11, 1962] § 7.303-12 Subcontracts. In accordance with the requirements of § 3.903-1 of this chapter, insert an appropriate Subcontracts clause. [25 F.R. 14201, Dec. 31, 1960] § 7.303-13 Changes to make or buy pro gram. In accordance with the requirements of 3.902-4 of this subchapter, insert the clause set forth therein. [25 F.R. 14201, Dec. 31, 1960] § 7.303-15 Quality program. In accordance with the instructions in § 14.104-3 of this chapter, insert the clause set forth in § 7.104-28. [29 F.R. 11821, Aug. 19, 1964] § 7.303-16 Price reduction for defective cost or pricing data. In accordance with the requirements of 7.104-29, insert the appropriate clause set forth therein. [28 F.R. 2107, Mar. 5, 1963] § 7.303-17 Ground and flight risks. In all negotiated fixed-price type contracts for the production, modification, In accordance with the requirements of § 11.403-2 of this chapter, in contracts to be performed outside the United States, its possessions and Puerto Rico, insert one of the clauses set forth in paragraphs (a) and (b) thereof. [26 F.R. 9639, Oct. 12, 1961] § 7.303-21 Advance payments. When advance payments are to be made in accordance with Subpart D, Part 163 of this chapter, insert the appropriate clause as set forth in § 163.64-2 of this chapter. [26 F.R. 9639, Oct. 12, 1961] § 7.303-22 Workmen's insurance overseas. compensation In accordance with the requirements of 10.403 of this chapter, insert the clause entitled "Workmen's Compensation Insurance (Defense Base Act)". [26 F.R. 9639, Oct. 12, 1961] § 7.303-23 Progress payments. When progress payments are to be made in accordance with Subpart E, Part 163 of this chapter, insert the appropriate clause as set forth in § 163.79 of this chapter. [26 F.R. 9639, Oct. 12, 1961] § 7.303-24 Required source for jewel bearings. In accordance with the requirements of § 1.315 of this chapter, insert the clause set forth therein. [27 FR. 1708, Feb. 22, 1962] In accordance with the requirements of § 7.104-42, insert the appropriate clause set forth therein. [28 F.R. 2107, Mar. 5, 1963] § 7.303-30 United States Products (Military Assistance Program). In accordance with the requirements of § 6.703 of this chapter, insert the contract clause set forth in § 6.703-4 of this chapter. [28 F.R. 2582, Mar. 16, 1963] § 7.303-31 Value Engineering incentive. In accordance with the requirements of § 1.1702 of this chapter, insert the applicable clause set forth in § 1.1705 of this chapter. [30 F. R. 1736, Feb. 9, 1965] § 7.303-33 Non-use of foreign-flag ves sels engaged in Cuban trade. In accordance with the requirements of § 1.1410 of this chapter, insert the clause set forth therein. [29 F.R. 2832, Feb. 29, 1964] § 7.303-34 New material. In accordance with the requirements of § 1.1208 of this chapter, insert a clause such as is set forth therein. [29 F.R. 2832, Feb. 29, 1964] § 7.303-35 Government surplus. In accordance with the requirements of § 1.1208 of this chapter, insert a clause such as is set forth therein. [29 F.R. 2832, Feb. 29, 1964] § 7.303-36 Procurement of natural rubber for aircraft tires, tubes, tire recapping, and recapping materials. In accordance with § 1.323 of this chapter, insert the clause set forth therein. [29 F.R. 9754, July 21, 1964] § 7.303-37 Special test equipment. In accordance with the requirements of § 13.705 of this chapter, insert the clause set forth therein. [30 F. R. 1736, Feb. 9, 1965] § 7.303-38 Government property furnished "as is". In accordance with the requirements of § 13.709 of this chapter, insert the clause set forth therein. [30 F. R. 1736, Feb. 9, 1965] § 7.303-39 First article approval. In accordance with Subpart S, Part 1 of this chapter, insert the appropriate clause set forth in § 1.1906 of that subpart. [30 F.R. 14090, Nov. 9, 1965] § 7.303-40 Order of precedence. In accordance with § 7.104-56, insert the clause set forth therein. [30 F.R. 14090, Nov. 9, 1965] § 7.304 Additional clauses. The following clauses shall be inserted in accordance with Departmental procedures where it is desired to cover the subject matter thereof in such contracts. [25 F.R. 14201, Dec. 31, 1960] § 7.304-1 Changes. CHANGES (JUNE 1965) The Contracting Officer may at any time, by a written order, and without notice to the sureties, if any, make changes, within the general scope of this contract, in any one or more of the following: (1) drawings, designs, or specifications; (ii) method of shipment or packing; and (iii) place of inspection, delivery, or acceptance. If any such change causes an increase or decrease in the cost of, or the time required for performance of, this contract, or otherwise affects any other provisions of this contract, whether changed or not changed by any such order, an equitable adjustment shall be made (i) in the contract price or time of performance, or both, and (ii) in such other provisions of the contract as may be so effected, and the contract shall be modified in writing accordingly. Any claim by the Contractor for adjustment under this clause must be asserted within thirty (30) days from the date of receipt by the Contractor of the notification of change: Provided, however, That the Contracting Officer, if he decides that the facts justify such action, may receive and act upon any such claim asserted at any time prior to final payment under this contract. Failure to agree to any adjustment shall be a dispute concerning a question of fact within the meaning of the clause of this contract entitled "Disputes". However, nothing in this clause shall excuse the Contractor from proceeding with the contract as changed. In the foregoing clause, the period of "thirty (30) days" within which any claim for adjustment must be asserted, may be varied in accordance with Departmental procedures. In accordance with 10 U.S.C. 2306(f), prior to the pricing of any change order that is expected to exceed $100,000, except where the price is based on adequate price competition, established catalog or market prices of commercial items sold in substantial quantities to the general public, or prices set by law or regulation, the contracting officer shall require the contractor to furnish a Certificate of Current Cost or Pricing Data (see § 3.807-4 of this chapter) and shall assure that the contract includes or is modified to include a defective pricing data clause (see § 7.104-29). [28 F.R. 4887, May 16, 1963, as amended at 30 F.R. 12005, Sept. 21, 1965] § 7.304-2 Alterations in contract. The contract clause set forth in § 7.105-1 may be inserted. [25 FR. 14202, Dec. 31, 1960] § 7.105-6 may be inserted pursuant to the provisions of said paragraph. [25 F.R. 14202, Dec. 31, 1960] § 7.304-5 Notice of shipments. The contract clause set forth in § 7.105-4 may be inserted. [25 F.R. 14202, Dec. 31, 1960] § 7.304-6 Stop work orders. The clause set forth in § 7.105-8 of this part is authorized for use under the criteria and in accordance with the instructions in § 7.105-8. [25 F.R. 14202, Dec. 31, 1960] § 7.304-7 Reports of work. In accordance with the instructions in § 7.404-6, the contract clause set forth therein may be inserted. [25 F.R. 14202, Dec. 31, 1960] § 7.304-8 Liquidated damages. The contract clause set forth in §7.105-5 may be inserted pursuant to the provisions of § 1.310 of this chapter. [26 F.R. 9639, Oct. 12, 1961] § 7.304-9 Taxes where foreign agreements do not apply. In accordance with the instructions of § 11.404 of this chapter, in contracts to be performed outside the United States, its possessions and Puerto Rico, the clause set forth therein may be inserted. [26 F.R. 9639, Oct. 12, 1961] Subpart D-Clauses for Cost-Reimbursement Type Research and Development Contracts § 7.400 Scope of subpart. This subpart sets forth uniform contract clauses for use in cost-reimbursement type research and development contracts as defined in § 7.401. [25 F.R. 14202, Dec. 31, 1960] § 7.401 Applicability. As used throughout this subpart, the term "cost-reimbursement type research and development contract" shall mean 427 any contract (other than a letter contract, notice of award, or modification not effecting new procurement) which (i) is entered into on a cost, cost-sharing, or cost-plus-a-fee basis as covered in § 3.405, and (ii) is for experimental, developmental, or research work. [25 F.R. 14202, Dec. 31, 1960 as amended at 27 F.R. 4015, Apr. 27, 1962] § 7.402 Required clauses. The following clauses shall be inserted as required, in all cost-reimbursement type research and development contracts. [25 F.R. 14202, Dec. 31, 1960] Insert the contract clause set forth in § 7.103-1. Additional definitions may be included in such clause: Provided, They are not inconsistent with such clause or the provisions of this subchapter. [25 F.R. 14202, Dec. 31, 1960] § 7.402-2 Limitation of cost. (a) The following clause shall be used in cost-reimbursement type research and development contracts which do not provide for cost-sharing. LIMITATION OF COST (FEB. 1959) (a) It is estimated that the total cost to the Government, exclusive of any fixed fee, for the performance of this contract will not exceed the estimated cost set forth in the Schedule, and the Contractor agrees to use his best efforts to perform the work specified in the Schedule, and all obligations under this contract within such estimated cost. If at any time the Contractor has reason to believe that the cost which he expects to incur in the performance of this contract in the next succeeding sixty (60) days, when added to all costs previously incurred, will exceed seventy-five percent (75%) of the estimated cost then set forth in the Schedule, or if at any time, the Contractor has reason to believe that the total cost to the Government, exclusive of any fixed fee, for the performance of this contract will be substantially greater or less than the then estimated cost thereof, the Contractor shall notify the Contracting Officer in writing to that effect, giving the revised estimate of such total cost for the performance of this contract. (b) The Government shall not be obligated to reimburse the Contractor for costs incurred in excess of the estimated cost set forth in the Schedule, and the Contractor shall not be obligated to continue performance under the contract or to incur costs in excess of the estimated cost set forth in the Schedule, unless and until the Contracting Officer shall have notified the Contractor in writing that such estimated cost has been increased and shall have specified in such notice a revised estimated cost which shall thereupon constitute the estimated cost of performance of this contract. When and to the extent that the estimated cost set forth in the Schedule has been increased, any costs incurred by the Contractor in excess of such estimated cost prior to the increase in estimated cost shall be allowable to the same extent as if such costs had been incurred after such increase in estimated cost The words "exclusive of any fixed fee", occurring twice in paragraph (a) of the foregoing clause, may be deleted in any contract not providing for the payment of a fixed fee. (b) The following clause shall be used in cost-reimbursement type research and development contracts which provide for cost-sharing. The contract schedule shall embody a cost-sharing formula agreed upon by the parties prior to execution of the contract. This formula shall provide for the ratio of cost-sharing with regard to both the originally established total estimated cost and any increases thereto, pursuant to (b) of the clause. LIMITATION of Cost (CosT-SHARING) (a) It is estimated that the cost to the Government for the performance of this contract will not exceed the estimated cost to the Government set forth in the Schedule, and the Contractor agrees to use his best efforts to perform the work specified in the Schedule and all obligations under this contract within such estimated cost to the Government plus the share of the cost of performance agreed to be borne by the Contractor, as set forth in the Schedule. If at any time the Contractor has reason to believe that the costs which he expects to be incurred in the performance of this contract in the next succeeding sixty (60) days, when added to all costs previously incurred, will exceed seventy-five percent (75%) of the estimated total cost to the Government and to the Contractor then set forth in the Schedule, or if at any time the Contractor has reason to believe that the total cost for the performance of this contract will be substantially greater or less than the then estimated total cost thereof, the Contractor shall notify the Contracting Officer in writing to that effect, giving the revised estimate of such total cost for the performance of this contract. (b) The Government shall not be obligated to reimburse the Contractor for costs incurred in excess of the estimated cost to the Government set forth in the Schedule. and the Contractor shall not be obligated to continue performance under the contract or to incur costs in excess of the estimated total cost set forth in the Schedule, unless and until the Contracting Officer shall have not!fied the Contractor in writing that such |