CLAUSES FOR COST-TYPE SUPPLY CONTRACTS

provisions of paragraphs (b), (c), and (d) of this clause shall apply in like manner to such additional allotted funds and substituted date pertaining thereto, and the contract shall be amended accordingly.

(1) The Government may at any time prior to termination allot additional funds for this contract, and, with the consent of the Contractor, after notice of termination, may rescind such termination in whole or in part, and allot additional funds for this contract.

(g) In the event that sufficient amounts are not allotted to this contract to allow completion of the work contemplated by this contract, the Contractor shall be entitled, subject to the limitations of paragraph (c) of this clause, to a percentage of the fixed fee set forth in the Schedule equivalent to the percentage of completion of the work contemplated by this

contract.

(h) Nothing in this clause shall affect the right of the Government to terminate this contract pursuant to the clause of this contract entitled "Termination."

(i) For the purpose of this clause, the allotment or allotments specified in the Schedule shall not be decreased without the consent of the Contractor.

(j) This clause shall be applicable and the clause of this contract entitled “Limitation of Cost" inapplicable until such time as an amount equal to the total estimated cost and fee set forth in the Schedule is allotted to this contract, and thereafter the clause of this contract entitled "Limitation of Cost" shall be applicable and this clause inapplicable.

7.204–54 Financial Reporting of Government-Owned/Contractor-Held Property. In accordance with the instructions in 7.104–54, insert the clause set forth therein.

7.204-55 Special Test Equipment In accordance with the requirements of 13.705, insert the clause set forth therein.

7.204-56 NASA Financial Management Reporting. Insert the appropriate clause set forth in 7.104-53 in accordance with the instructions set forth therein.

7.204-57 Cost Accounting Standards. In accordance with 3.1204, insert the clause set forth in 7.104-55.

7.204-58 Safety and Health. In accordance with the requirements of Part 1, Subpart 52, insert the clause set forth in 1.5204.

7.204-59 Reserved]

7.204-60 Report on NASA Subcontracts. In accordance with the requirements of 21.500, insert the clause set forth therein.

7.204-61 Rights in Data for Potentially Hazardous Items. In accordance with the requirements of 9.203-6, insert the clause specified therein.

7.204-62 Potentially Hazardous Items. In accordance with the requirements of 1.351, insert the clause set forth therein.

7.204-63 Order of Precedence. In accordance with 7.104-56, insert the clause set forth therein. 7.204-64 Preference for United States Flag Air Carriers. In accordance with 1.336–1(b), insert the clause in 7.104-95.

86.

7.204-65 through 7.204-85 [Reserved]

7.204-86 Notification of Changes. In accordance with 26.802, insert the clause set forth in 7.104

7.204-87 and 7.204-88 [Reserved]

7.204-89 Engineering Change Proposals (ECP's). In accordance with 26-205, the clause under 7.104-89 is a sample clause.

7.204-90 Change Order Accounting. In accordance with 26-205, the clause under 7.104–90 is a sample clause.

7.205 Additional Clauses. The following clauses shall be inserted if it is desired to cover the subject matter thereof.

7.205-1 Alterations in Contract. The clause set forth in 7.105-1 may be inserted.

7.205-2 [Reserved]

7.205-3 [Reserved]

7.205-4 Bill of Materials. Under the circumstances stated in 7.105-6, the clause set forth therein may be inserted.

7.205-5 [Reserved]

7.205-6 Stop Work Orders. The clause set forth in 7.105-8 is authorized for use under the criteria and in accordance with the instructions in 7.105-8, if modified by changing

(i) the words "the 'Termination for Convenience' clause of this contract" to "the 'Termination' clause of this contract," and

NASA PROCUREMENT REGULATION

7.205-6

CONTRACT CLAUSES

(ii) the words "an equitable adjustment shall be made in the delivery schedule or contract price, or both" to “an equitable adjustment shall be made in the delivery schedule, the estimated cost, the fee, or a combination thereof, and in any other provisions of the contract that may be affected."

7.205-50 Notice of Delay. The clause set forth below is authorized for use in situations where it is desirable to provide for notice by the contractor of anticipated delays in performance.

NOTICE OF DELAY (SEPTEMBER 1962)

If the Contractor becomes unable to complete the contract work at the time specified because of technical difficulties, notwithstanding the exercise of good faith and diligent efforts in the performance of the work called for hereunder, the Contractor shall give the Contracting Officer written notice of the anticipated delay and the reasons therefor. Such notice and reasons shall be delivered promptly after the condition creating the anticipated delay becomes known to the Contractor but in no event less than forty-five (45) days before the completion date specified in this contract, unless otherwise directed by the Contracting Officer. 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.

7.205-51 [Reserved]

7.205-52 Date of Incurrence of Costs. The clause set forth below is authorized for use when specific coverage of precontract costs is authorized in accordance with 15.205-30.

DATE OF INCURRENCE OF COSTS (OCTOBER 1963)

The Contractor shall be entitled to reimbursement for costs incurred in an amount not to exceed $..... on or after which, if incurred after this contract had been entered into, would have been reimbursable under the provisions of this

contract.

7.205-53 Contractor's Independent Research Program. When the New Technology clause is included in the contract (see 9.107-4) and it is determined that the contractor maintains an independent research program, the clause set forth in 9.107-8 may be included in the Schedule at the contractor's request.

7.205-54 Reports of Work. A Reports of Work clause is not prescribed for cost-reimbursement type supply contracts. When it is desired to include such a clause, however, the clause set forth in 7.302-54 may be used or it may serve as a model in drafting the desired clause.

7.205-50

CFR TITLE 41 CHAPTER 18

7.300

Subpart 3-Clauses for Fixed-Price R&D Contracts

Scope of Subpart. This Subpart sets forth uniform clauses for use in fixed-price research and development contracts as defined in 7.301.

7.301 Applicability. As used throughout this Subpart, the term "fixed-price research and development contract" means any contract, including letter contracts (except notices of award, · contracts placed under Small Purchases Procedures, and amendments or supplemental agreements which do not effect new procurement) which (i) is entered into on a fixed-price basis, (ii) is in an amount exceeding $2,500, and (iii) is for experimental, developmental, or research work.

required,

in

7.302 Required Clauses. The following clauses shall be inserted, as all fixed-price research and development contracts except as otherwise indicated in this Subpart. See 7.350 for short form clauses.

7.302-1 Definitions. Insert the clause set forth in 7.103-1. Additional definitions may be included, provided they are not inconsistent with such clause or the provisions of this Regulation.

7.302-2 Payments. Insert the following clause except that in letter contracts insert clause 4 of NASA Form 551-3 set forth in 16.859-4(d).

PAYMENTS (DECEMBER 1982)

The Contractor shall be paid, within thirty (30) days after receipt of proper invoices or vouchers, the prices stipulated herein for work delivered or rendered and accepted, less deductions, if any, as herein provided. Unless otherwise specified, payment will be made upon acceptance of any portion of the work delivered or rendered for which a price is separately stated in the contract.

(End of clause)

7.302-3 Standards of Work.

STANDARDS OF WORK (SEPTEMBER 1962)

The Contractor agrees that the performance of work and services pursuant to the requirements of this contract shall conform to high professional standards.

7.302-4 Inspection.

(End of clause)

following

Ta) Short Form Clause. The

inserted in all contracts subject to this clause in (b) below is not used.

INSPECTION

(SEPTEMBER 1962)

NASA PROCUREMENT REGULATION

7.302-4

CONTRACT CLAUSES

The Government, through any authorized representatives, has the right, at all reasonable times, to inspect, or otherwise evaluate the work performed or being performed hereunder and the premises in which it is being performed. If any inspection or evaluation is made by the Government on the premises of the Contractor or a subcontractor, the Contractor shall provide and shall require subcontractors to provide all reasonable facilities and assistance for the safety and convenience of the Government representatives in the performance of their duties. All inspections and evaluations shall be performed in such a manner as will not unduly delay the work.

(End of clause)

contract

(b) Long Form Clause. Where a more detailed provision covering inspection is desired, as where the primary objective is delivery of end items other than designs; drawings, or reports, the clause set forth below shall be used unless the contracting officer determines that use of the longer clause is impracticable.

INSPECTION (SEPTEMBER 1962)

(a) All work under this contract shall be subject to inspection and test by the Government, to the extent practicable, at all times (including the period of performance) and places, and in any event prior to acceptance. The Government through any authorized representative may inspect the premises of the Contractor or any subcontractor engaged in the performance of this contract.

་་

(b) The Government may reject any work that is defective or otherwise not in conformity with the requirements of this contract. If the Contractor fails or is unable to correct or to replace such work, the Contracting Officer may accept such work at a reduction in price which is equitable under the circumstances. Failure to agree on the reduction in price shall be a dispute concerning a question of fact within the meaning of the clause of this contract entitled "Disputes. (c) If any inspection or test is made by the Government on the premises of the Contractor or a subcontractor, the Contractor shall provide, without additional charge, all reasonable facilities and assistance for the safety and convenience of the Government inspectors in the performance of their duties. If the Government inspection or test is made a point other than the premises of the Contractor or subcontractor, it shall be at the expense of the Government. All inspections and tests by the Government shall be performed in such a manner as not unduly to delay the work. Final inspection and acceptance or rejection of the work shall be made as promptly as practicable after delivery except as otherwise provided in this contract; but failure to inspect and accept, or reject the work shall neither relieve the Contractor from responsibility for such of the work as is not

7.302-4

at

CFR TITLE 41 CHAPTER 18

CLAUSES FOR FIXED-PRICE R&D CONTRACTS

in accordance with the contract requirements liability on the Government therefor.

nor impose

(d) The inspection and test by the Government of any work shall not relieve the Contractor from any responsibility regarding defects or other failures to meet the contract requirements which may be discovered prior to acceptance. Except as otherwise provided in this contract, acceptance shall be conclusive except as regards latent defects, fraud, or such gross mistakes as amount to fraud.

(e) The Contractor shall provide and maintain an inspection system acceptable to the Government covering the work hereunder. Records of all inspection work by the Contractor shall be kept complete and available to the Government during the performance of this contract and for such longer period as may be specified elsewhere in this contract.

(End of clause)

7.302-5 Assignment of Claims. In accordance with the instructions in 7.103-8, insert the clause set forth therein. 7.302-6 Examination of Records by Comptroller General. In accordance with 7.104-15, insert the clause set forth therein. 7.302-7 Federal, State, and Local Taxes. Insert the clause set forth in 11.401-1 or 11.401-2 accordance with the requirements of 11.401.

in

7.302-8 Utilization of Small Disadvantaged Business Concerns. In requirements of 1.707-3, insert

forth therein.

Business and Small accordance with the

the appropriate clause set

7.302-9 Default. In accordance with the requirements of 8.710, insert the clause set forth therein.

7.302-10 Termination for the Convenience of the Government. In accordance with the requirements of 8.701(a), insert the clause set forth therein.

7.302-11 Disputes. Insert the clause set forth in 7.103-12. 7.302-12 [Reserved]

7.302-13 Buy American Act and Trade Agreements Act. In accordance with the requirements of Part 6, Subpart 1, insert the clause set forth in 6.104-5.

7.302-14 Convict Labor. In accordance with Part 12, Subpart 2, insert the clause set forth in 7.104-17. 7.302-15 Walsh-Healey Public Contracts clause set forth in 12.605.

Act. Insert the

7.302-16 Contract Work Hours Standards Act Overtime Compensation. Insert the clause set forth in 12.303-1. Note the introductory language required by 12.303-2 for inclusion in contracts with a State or political subdivision thereof. 7.302-17 Equal Opportunity. In accordance with provisions of 12.804, insert the appropriate clause set forth therein.

the

7.302-18 Officials Not То Benefit. Insert the clause set forth in 7.103-19.

NASA PROCUREMENT REGULATION

7.302-18