CLAUSES FOR COST-TYPE R&D CONTRACTS

death, bodily injury, or damage to property resulting in any way from the performance of this contract or any subcontract hereunder; and (ii) the Contractor need not procure or maintain insurance coverage as provided in paragraph (a) of this clause; provided, the Contractor may obtain any insurance coverage he deems necessary subject to approval by the Contracting Officer as to form, amount, and duration, in which event the Contractor shall be reimbursed (A) for the cost of such insurance and (B) to the extent provided in paragraph (c) above, for liabilities to third persons for which the Contractor has obtained insurance coverage as provided in this paragraph, but for which such coverage is insufficient in amount. (SEPTEMBER 1962)

In

7.402-27 Utilization of Labor Surplus Area Concerns. accordance with the requirements of 1.805-3 (a), insert the clause set forth therein.

7.402-28 Payment for Overtime Premiums. In accordance with the requirements of 12.102, insert the clause set forth in

12.102-6.

7.402-29 Competition in Subcontracting. Insert the clause set forth in 7.104-40.

Aeronautics

and Space with 7.104-42 (a) insert the

7.402-30 Audit by National Administration. In accordance clause set forth therein.

7.402-31 Notice of Intent to Disallow or Not Recognize Costs. Insert the clause in 7.203-30.

7.402-50 Payment of Royalities. In accordance with the instructions in 7.203-50, insert the clause set forth in

9.110.

7.402-51 Estimated Cost and Fixed Fee. In accordance with the requirements of 7.203-51, insert the clause set forth therein.

7.402-52 Payment of Fixed Fee. In accordance with the requirements of 7.203-52, insert the clause set forth therein. 7.402-53 Interest. Insert the clause set forth in 7.103-53. 7.402-54 Reports of Work. See 7.302-54 for guidance and a clause approved for use.

7.402-55

Scientific and Technical Information Service. 7.302-55.

Insert the clause set forth in

7.402-56 Clean Air and Water. Insert the clause set forth in 1.2302-2.

7.403 Clauses Required То Be Used When Applicable. The following clauses shall be inserted, when applicable, in all cost-reimbursement type research and development contracts providing for the payment of a fee.

7.403-1 Clauses for Contracts Involving Construction Work. (a) In accordance with the requirements of Part 12, Subpart 4, insert in cost-reimbursement type research and development contracts which involve construction work the clauses listed

below, which are set forth in 12.403-1:

NASA PROCUREMENT REGULATION

7.403-1

CONTRACT CLAUSES

Davis-Bacon Act

Contract Work Hours and Safety Standards Act-Overtime Compensation

Apprentices and Trainees

Payrolls and Basic Records

Compliance with Copeland Regulations

Withholding of Funds

Subcontracts

Contract Termination-Debarment

་

(b) In accordance with the requirements of 6.207, insert in all contracts for construction, except those executed on Standard Form 19 and NASA Form 1379, the clause entitled "Buy American," as set forth in 6.207 (c).

7.403-2 Filing of Patent Applications. In accordance with requirements of 9.106, insert the clause set forth

the

therein. 7.403-3 Special Test Equipment.___In accordance with the requirements of 13.705, insert the clause set forth therein. 7.403-4 Reserved7 7.403-5 Excusable

8.708.

7.403-6 Reserved

7.403-7

Delays.

Insert the clause set forth in

In

Priorities, Allocations,

and Allotments.

accordance with the requirements of 1.307-2, insert the clause set forth therein.

7.403-8 Communist Areas. In accordance with the requirements of 6.403, insert the clause set forth therein.

3.

7.403-9 Negotiated Overhead Rates. When negotiated overhead rates are to be used pursuant to Part Subpart 7, the appropriate clause set forth in 3.704 shall be included in the contract.

7.403-10 Notice to the Government of Labor Disputes. Whenever work is to be performed and a work stoppage would result in delay in an urgent NASA program, insert the clause set forth in 7.104-4.

7.403-11 Subcontractor Cost or Pricing Data. In accordance with the requirements of 3.807-4, insert the appropriate clause set forth in 7.104-43.

7.403-12 Limitation

on Withholding of Payments. In accordance with the requirements of 7.104-21 (a), insert the clause set forth therein.

7.403-13 Price Reduction for Defective Cost or Pricing Data. Insert the clause set forth in 7.104-28.

7.403-14 Changes to Make-or-Buy Program. In accordance with the requirements of 3.901, insert the clause set forth in

3.901-4(b).

7.403-15 Frequency Authorization. In accordance with 7.10426, insert the clause set forth therein.

7.403-2

CFR TITLE 41 CHAPTER 18

CLAUSES FOR COST-TYPE R&D CONTRACTS

7.403-16 Flight Risks. In contracts for the development, production, modification, maintenance, or overhaul of aircraft, or otherwise involving the furnishing of aircraft to the contractor by the Government, insert the clause set forth in 10.504.

7.403-17

Required Source for Jewel Bearings and Related Items. In accordance with the requirements of 1.315, insert the clause set forth therein.

7.403-18 through 7.403-22 Reserved

7.403-23 General Services Administration Supply Sources. The clause set forth in 5.907 shall be included in contracts in accordance with instructions contained therein. 7.403-24 Labor Surplus Area Subcontracting Program.__In accordance with the requirements of 1.805-3(b), insert the clause set forth therein.

7.403-25 Through 7.403-42 Reserved 7.403-43 Waiver of Facilities Capital Cost of Money. In accordance with 3.808-7, insert the clause set forth therein. 7.403-44 Limitation of Liability. In accordance with 1.330, insert the appropriate clause in 7.104-45 (a) or 7.204-33.

7.403-50 Optional Data Requirements. In accordance with the requirements of 9.203-2, insert the clause set forth therein. 7.403-51 Approval of Contract. The clause set forth in 7.104-51 shall be included in contracts which require approval by the Assistant Administrator for Procurement.

7.403-52 Preference for United States-Flag Vessels. Under the circumstances described in Part 1, Subpart 14, insert the clause set forth in 1.1402-3.

Obligation. Where

7.403-53 Limitation of Government's funding to complete the entire contract is not available at the time it is entered into, the clause set forth in 7.204-53 shall be included in the contract, with an implementing Schedule provision.

7.403-54 Financial Reporting of Government-Owned/ContractorHeld Property. In accordance with the instructions in 7.10454, insert the clause set forth therein.

7.403-55 Cost Accounting Standards. In accordance with 3.1204, insert the clause set forth in 7.104-55.

7.403-56 NASA Financial Management Reporting. Insert the appropriate clause set forth in 7.104-53 in accordance with the instructions set forth therein.

7.403-57 Key Personnel and Facilities In accordance with the requirements of 1.352, insert the clause set forth therein.

set

7.403-58 Safety and Health. In accordance with the requirements of Part 1, Subpart insert the clause forth in 1.5204.

7.403-59 Reserved7

52.

7.403-60 Report on NASA Subcontracts. In accordance with the requirements of 21.500, insert the clause set forth therein.

NASA PROCUREMENT REGULATION

7.403-60

CONTRACT CLAUSES

7.403-61 Rights in Data For Potentially Hazardous Items. In accordance with requirements of 9.203-6, insert the clause specified therein.

7.403-62 Potentially Hazardous Items. In accordance with the requirements of 1.351, insert the clause set forth therein.

7.403-63 Order of Precedence. In accordance with 7.104-56, insert the clause set forth therein.

7.403-64 Preference for United States Air Carriers. In accordance with 1.336-1(b), insert the clause in 7.104-95.

7.403-65 Geographic Participation in the Aerospace Program. In accordance with the requirements of 1.302-51, insert the clause se: forth therein.

7.403-65 through 7.403-85 Reserved7

7.403-86 Notification of Changes. In accordance with 26.802, insert the clause set forth in 7.104-86. 7.403-87 and 7.403-88 Reserved7

7.403-89 Engineering Change Proposals (ECP's) In accordance with 26.205, the clause under 7.104-89 is a sample clause. 7.403-90 Change Order Accounting. In accordance with 26.205, the clause under 7.104-90 is a sample clause.

7.404 Additional Clauses. The following clauses shall be inserted in cost-reimbursement type research and development contracts providing for the payment of a fee, when it is desired to cover the subject matter.

7.404-1 Changes.

CHANGES (SEPTEMBER 1962)

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: (i) drawings, designs, or specifications; (11) method of shipment or packing; (iii) place of inspection, delivery, or acceptance; and (iv) the amount of Governmentfurnished property. If any such change causes an increase or decrease in the estimated cost of, or the time required for, performance of this contract, or otherwise affects any other provision of this contract, whether changed or not changed by any such order, an equitable adjustment shall be made (1) in the estimated cost or delivery schedule, or both, (ii) in the amount of any fee to be paid to the Contractor, and (iii) in such other provisions of the contract as may be so affected, and the contract shall be modified in writing accordingly. Any claim by the Contractor for adjustment under this clause must be asserted. within sixty (60) 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

7.403-61

CFR TITLE 41 CHAPTER 18

CLAUSES FOR COST-TYPE R&D CONTRACTS

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 "sixty (60) days" within which any claim for adjustment must be asserted may be reduced to a period of not less than "thirty (30) days." In accordance with 10 U.S.C. 2306(f), prior to the pricing of any contract change or modification that is expected to exceed $500,000, except where the price is based 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

on

of Current Cost or Pricing Data (see 3.807-6) and shall assure that the contract includes or is modified to include Defective Pricing Data clause (see 7.104-28).

7.404-2 Alterations in Contract. The clause set forth in 7.105-1 may be inserted.

7.404-3 Reserved

7.404-4

Bill of Materials. The clause set forth in 7.105-6 may be inserted pursuant to the provisions thereof.

7.404-5 Stop Work Orders. The clause set forth in 7.105-8, if modified as prescribed in 7.205-6, is authorized for use under the criteria, and in accordance with the instructions set forth in 7.105-8.

7.404-50 Notice

of Delay. In accordance with the instructions in 7.205-50, the clause set forth therein is authorized for use.

7.404-51 Reserved

7.404-52 Date of Incurrence of Costs. The clause set forth in 7.205-52 may be inserted when authorized in accordance with 15.205-30.

7.404-53 Inventions Made Under Contractor's Independent Research and Development Programs. When the New Technology clause is included in the contract (see 9.107-5) 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. 7.404-54 through 7.404-56 Reserved

7.404-57 Federal, State, and Local Taxes. At the discretion of the contracting officer and when requested by the contractor, the clause set forth in 11.402(e) may be inserted in cost-reimbursement type contracts.

Development Contracts With Nonprofit Institutions (Including Educational Institutions).

cost

7.450-1 Applicability. Paragraphs 7.451, 7.452, and 7.453, including their subparagraphs, are applicable to reimbursement type research and development contracts with

33-141 0-84--12

NASA PROCUREMENT REGULATION

7.450-1