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CONTRACT CLAUSES

(e) Include the substance of this clause in all negotiated subcontracts containing either the clause entitled "Cost Accounting Standards," or the clause entitled "Disclosure and Consistency of Cost Accounting Practices."

In addition, within thirty (30) days after award of such a subcontract, submit the following information to the contract administration office cognizant of the Contractor's facility for transmittal to the contract administration office cognizant of the subcontractor's facility.

(1) Subcontractor's name and subcontract number.

(2) Dollar amount and date of award.

(3) Name of Contractor making the award.

(4) A statement as to whether the subcontractor has made or proposes to make any changes to accounting practices that affect prime contracts or subcontracts containing the "Cost Accounting Standards” clause or “Disclosure and Consistency of Cost Accounting Practices" clause because of the award of this subcontract unless such changes have already been reported. If award of the subcontract results in making a Cost Accounting Standard(s) effective for the first time, this shall also be reported.

(1)For negotiated subcontracts containing the clause entitled "Cost Accounting Standards," require the subcontractor to comply with all Standards in effect on the date of final agreement on price as shown on the subcontractor's signed certificate of current cost or pricing data or date of award whichever is earlier.

(g) In the event an adjustment is required to be made to any subcontract hereunder, notify the Contracting Officer in writing of such adjustment and agree to an adjustment in the price or estimated cost and fee of this contract, as appropriate, based upon the adjustment established under the subcontract. Such notice shall be given within thirty (30) days after receipt of the proposed subcontract adjustment, or such other date as may be mutually agreed to, and shall include a proposal for adjustment to such higher tier subcontract or prime contract as appropriate.

(h) When either the Cost Accounting Standards clause or the Disclosure and Consistency of Cost Accounting Practices clause and this clause are included in subcontracts, the term “Contracting Officer" shall be suitably altered to identify the purchaser.

7.104-56 Order of Precedence. The following clause, which may be modified to change the order or to add or delete items to meet the needs of a particular procurement, shall be included in all contracts which are not preceded by a written solicitation (see 2.201-1 Section C (6) and 3.501(b) Section C (44)).

ORDER OF PRECEDENCE (NOVEMBER 1965)

In the event of an inconsistency in this contract, unless otherwise provided herein, the inconsistency shall be resolved by giving precedence in the following order: (a) the Schedule; (b) General Provisions; (c) the other provisions of the contract whether incorporated by reference or otherwise; and (d) the Specifications.

7.104-57 Liability for Government Property Furnished for Repair or Other Services. In accordance with the requirements of 13.702(c), insert the clause set forth therein.

7.104-58 Safety and Health. In accordance with the requirements of Part 1, Subpart 52, insert the clause set forth in 1.5204.

7.104-59 [Reserved]

7.104-60 Report on NASA Subcontracts. In accordance with the requirements of 21.500, insert the clause set forth therein.

7.104-61 Rights in Data for Potentially Hazardous Items. In accordance with the requirements of 9.203-6 insert the clause therein.

7.104-62 Potentially Hazardous Items. In accordance with the requirements of 1.351, insert the clause set forth therein.

7.104-63 Required Source for Jewel Bearings and Related Items. In accordance with the requirements of of 1.315, insert the clause set forth therein.

7.104-64 Contractor-Furnished Returnable Gas Cylinders and Other Containers. Insert the following clause in contracts involving the purchase of gas in contractor-furnished returnable cylinders where the contractor retains title to the cylinders. The clause may be used, with appropriate modification, in contracts for other supplies involving reels, spools, drums, carboys, liquid petroleum gas containers, or other reusable containers, where the contractor is to retain title to the containers.

RETURNABLE GAS CYLINDERS (MARCH 1980)

(a) Cylinders shall remain the property of the Contractor but will be loaned without charge to the Government for a period of thirty (30) days after the date of delivery of the cylinders to the f.o.b. point specified in the contract. Beginning with the first day after the expiration of the thirty (30) day loan period to and including the day the cylinders are delivered to the Contractor where the original delivery was f.o.b. origin, or to and including the date the cylinders are delivered or are made available for delivery to the Contractor's designated carrier in the case where the original

7.104-56

CFR TITLE 41 CHAPTER 18

CLAUSES FOR FIXED-PRICE SUPPLY CONTRACTS

delivery was f.o.b. destination, the Government shall pay the Contractor a rental of dollars ($.... ..) per

cylinder per day, regardless of type or capacity.

The time period may be modified to comply with the customary commercial practice for the particular type of container being rented.

(b) This rental charge will be computed separately for cylinders of differing types, sizes, and capacities, and for each point of delivery named in the contract. A credit of thirty (30) cylinder days will accrue to the Government for each cylinder, regardless of type or capacity, delivered by the Contractor. A debit of one (1) cylinder day will accrue to the Government for each cylinder for each day after delivery to the f.o.b. point specified in the contract. At the end of the contract, if the total number of debits exceeds the total number of credits, rental shall be charged for the difference. If the total number of credits equals or exceeds the total number of debits, no rental charges Will be made for the cylinders. No rental shall accrue to the Contractor in excess of the replacement value per cylinder specified in (c) below.

(c) For each cylinder lost or damaged beyond repair while in the Government's possession, the Government shall pay to the Contractor the replacement value as follows, less the allocable rental paid therefor:

(1) oxygen cylinders of 100-110 cubic foot capacity (11) oxygen cylinders of 200-220 cubic foot capacity

(iii) acetylene

..; and

cylinders of 100-150 cubic foot capacity

(iv) acetylene cylinders of 230-300 cubic foot capacity

(a) Cylinders lost, or damaged beyond repair, and paid for by the Government shall become the property of the Government, subject to the following: If any lost cylinder is located within ... ..... (insert period of time) after payment by the Government, it may be returned to the Government, and the Contractor shall pay to amount equal to the replacement value, less accordance with (a) above, beginning at the thirty (30) day loan period specified continuing to the date on which the cylinder was delivered to the Contractor.

Contractor by the the Government an rental computed in expiration of the in (a) above, and

7.104-65 through 7.104-83 Reserved 7.104-84 Fast Payment Procedure. In requirements of

accordance with the

3.606-3(b), insert the clause set forth

therein.

NASA PROCUREMENT REGULATION

7.804-84

CONTRACT CLAUSES

7.104-85 Reserved7

7.104-86 Notification of Changes. The following clause is prescribed for use in accordance with 26.802:

NOTIFICATION OF CHANGES (AUGUST 1977)

(a) Definitions. As used in this clause, (i) the term "Contracting Officer" does not include any representative of the Contracting Officer whether or not such representative is acting within the scope of his authority, and (ii) the term "specifically authorized representative" means any person the Contracting Officer has so designated by written notice which shall refer to this subparagraph and shall be issued to the designated representative prior to his invocation of such authority (and a copy of which shall be provided to the Contractor.)

(b) Notice. The primary purpose of this clause is to obtain prompt reporting of Government conduct which the Contractor considers to constitute a change to this contract. Except for changes identified as such in writing and signed by the Contracting Officer, the Contractor shall notify the Contracting Officer in writing promptly, and in any event within .....* (*to be negotiated) calendar days from the date that the Contractor identifies Government conduct (including actions, inactions, written oral communications) which the Contractor regards as a change to the contract terms and conditions. The Notice shall state, оп the basis of the most accurate information available to the Contractor:

any
and

or

(i) the date, nature, and circumstances of the conduct regarded as a change;

(ii) the name, function, and activity of each Government individual and contractor official or employee involved in or knowledgeable about such conduct;

(iii) the identification of any documents and the substance of any oral communication involved in such conduct; (iv) in the instance of alleged acceleration of scheduled performance or delivery, the basis upon which it arose; (v) the particular elements of contract performance for which the Contractor may seek an equitable adjustment under this clause, including:

(1) what contract line affected by the alleged change;

(2)

item(s) have been or may be

what labor or materials or both have been or may be added, deleted, or wasted by the alleged change;

(3) to the extent practicable, what delay and disruption in the manner and sequence of performance and effect on continued performance have been or may be caused by the alleged change;

7.104-85

CFR TITLE 41 CHAPTER 18

CLAUSES FOR FIXED-PRICE SUPPLY CONTRACTS

(4) what adjustments to contract price, schedule, and other provisions affected by the alleged are estimated; and

delivery change

(vi) the Contractor's estimate of the time by which the Government must respond to the Contractor's notice to minimize cost, delay or disruption of performance.

(c)__ Continued Performance. Following submission of the notice required by (b) above, the Contractor shall diligently continue performance of this contract to the maximum extent possible in accordance with its terms and conditions as construed by the Contractor, unless such notice reports a direction of the Contracting Officer or a communication from a specifically authorized representative of the Contracting Officer, in either of which events the Contractor shall continue performance in compliance therewith, provided, however, that if the Contractor regards the direction or communication as a change as described in (b) above, notice shall be given as therein provided. A11 directions, communications, interpretations, orders and similar actions of such specifically authorized representative shall be reduced to writing promptly and copies thereof furnished to the Contractor and to the Contracting Officer. The Contracting Officer shall promptly countermand any action which exceeds the authority of the specifically authorized representative. (d) Government Response. The promptly, and in any event within calendar days after receipt of writing. In such response the either;

** .....

Contracting Officer shall
(**to be negotiated)
NOTICE, respond thereto in
Contracting Officer shall

(1) confirm that the conduct of which the Contractor gave notice constitutes a change and when necessary direct the mode of further performance,

(ii) countermand any communication regarded as a change, (iii) deny that the conduct of which the Contractor gave notice constitutes a change and when necessary direct the mode of further performance; or

(iv) in the event the Contractor's notice information is inadequate to make a decision under (i), (ii), or (iii) above, advise the Contractor what additional information is required, and establish the date by which it should be furnished and the date thereafter by which the Government will respond.

Officer

(e) Equitable Adjustments. If the Contracting confirms that Government conduct effected a change as alleged by the Contractor, and such conduct causes an increase or decrease in the Contractor's cost of, or the time required for, performance of any part of the work under this contract, whether changed or not changed by such conduct, an equitable adjustment shall be made:

and

(1) in the contract price or delivery schedule or both;

NASA PROCUREMENT REGULATION

7.104-85

CONTRACT CLAUSES

(ii) in such other provisions of the contract as may be affected;

and the contract shall be modified in writing accordingly. In the case of drawings, designs or specifications which are defective and for which the Government is responsible, the equitable, adjustment shall include the cost and time extension for delay reasonably incurred by the Contractor in attempting to comply With such defective drawings, designs or specifications before the Contractor identified, or reasonably should have identified, such defect. When the cost of property made obsolete or excess as a result of a change confirmed by the Contracting Officer pursuant to this clause is included in the equitable adjustment, the Contracting Officer shall have the right to prescribe the manner of disposition of such property. The equitable adjustment shall not include increased costs or time extensions for delay resulting from the Contractor's to provide notice or to continue performance as provided, respectively, in (b) and (c) above.

failure

NOTE: The phrases "contract price" and "cost" wherever they appear in the foregoing clause, may be appropriately modified to apply to cost-reimbursement or incentive type contracts, or to combinations thereof.

7.104-87 through 7.104-88 Reserved7

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7.104-89 Engineering Change Proposals (ECP's) In accordance with 26.205 the following is a sample clause:

ENGINEERING CHANGE PROPOSALS

(a) The Contracting Officer may at any time; in writing, request the Contractor to prepare and submit an Engineering Change Proposal (ECP), within the scope of this contract, as hereafter set forth. Upon receipt of such request, the Contractor shall submit to the Contracting

information specified by, and in the format paragraph 4, of MIL.-STD-480.****

Officer the required by

(b) Any Contractor ECP shall set forth a "not to exceed" price and delivery adjustment or a "not less than" price* and delivery adjustment, acceptable to the Contractor if the Government subsequently orders such ECP. If ordered, the equitable increase shall not exceed, nor shall the equitable decrease be less than, such "not to exceed" or "not less than" amounts. This paragraph does not preclude any revision(s) or correction (s) of an ECP in accordance with paragraph 4.10 and 4.11 of MIL.-STD-480. Concurrently with the submission of any ECP under this contract in which the proposed aggregate cost | is $500,000 or greater, the Contractor shall submit to the Contracting Officer a completed DD Form 633 (NASA Edition). At the time of agreement upon the price of the ECP, the

7.104-87

CFR TITLE 41 CHAPTER 18

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