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CLAUSES FOR FIXED-PRICE SUPPLY CONTRACTS

Contractor shall submit a signed Certificate of Current Cost or Pricing Data.

The contracting officer may include, in the circumstances in 26.205(b), the following paragraph.

(c) If the price adjustment proposed for any Contractor originated ECP (excluding any Government requested ECP or Value Engineering Change Proposal) is*** (percent of contract price®) (or $ ***) or less, such change shall be made at по adjustment of the contract price*.

Use term suitable to type of contract.

In cost reimbursement type contracts replace this sentence with the following sentence: Change orders issued pursuant to the Change clause of this contract shall not be considered an authorization to the Contractor to exceed the estimated cost set forth in the Schedule in the absence of a statement in the change order, or other contract modification, increasing the estimated cost. *** To be negotiated.

Delete references

enter local format, if any.

to MIL.-STD-480 when desirable and

7.104-90 Change Order Accounting. In accordance with 26.205, the following is a sample clause:

CHANGE ORDER ACCOUNTING

When the Contracting Officer estimates that the cost of a change or series of related changes will exceed $100,000, he may require change order accounting. The Contractor, for each such change or series of related changes, shall maintain separate accounts, by job order or other suitable accounting procedure, of all incurred segregable, direct costs (less allocable credits), of work, both changed and not changed, allocable to the change. Such accounts shall be maintained until the parties agree to an equitable adjustment for the change order.

7.104-91 through 7.104-94 Reserved

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

PREFERENCE FOR UNITED STATES FLAG AIR CARRIERS
(APRIL 1976)

(a) Public Law 93-623 requires that all Federal agencies and Government Contractors and subcontractors will use U.S. flag air carriers for international air transportation of personnel (and their personal effects) or property to the extent service by such carriers is available. It further provides that the

33-141 0-84-8

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7.104-95

CONTRACT CLAUSES

any

Comptroller General of the United States shall disallow expenditure from appropriated funds for international air transportation on other than a U.S. flag air carrier in the absence of satisfactory proof of the necessity therefor.

(b) The Contractor agrees to utilize U.S. flag air carriers for international air transportation of personnel (and their personal effects) or property to the extent service by such carriers is available.

for

(c) In the event that the Contractor selects a carrier other than a U.S. flag air carrier international air transportation, he Will include a certification on vouchers involving such transportation which is essentially as follows:

CERTIFICATION OF UNAVAILABILITY OF U.S. FLAG
AIR CARRIERS

I hereby certify that transportation service for personnel (and their personal effects) or property by certificated air carrier was unavailable for the following reasons:

(state reasons)

(a) The terms used in this clause have the following meanings:

"International

air

means

(i) transportation" transportation of persons (and their personal effects) or property by air between a place in the United States and a place outside thereof or between two places both of which are outside the United States.

(ii) "U.S. flag air carrier" means one of a class of air carriers holding a certificate of public convenience and necessity issued by the Civil Aeronautics Board, approved by the President, authorizing operations between the United States and/or its territories and one or more foreign countries.

(iii) The term "United States" includes the fifty states, Commonwealth of Puerto Rico, possessions of the United States and the District of Columbia.

(e) The Contractor shall include the substance of this clause, including this paragraph (e) in each subcontract or purchase hereunder which may involve international air

transportation.

Costs.

7.104-96 Notice of Intent to DisalloW or Not Recognize Insert the clause in 7.203-30 in all fixedprice incentive contracts and contracts providing for price

redetermination.

7.104-97 through 7.104-102 Reserved]

7.104-103 Delivery of Excess Quantities of $100 or Less. The following clause may be inserted in contracts for supplies:

DELIVERY OF EXCESS QUANTITIES OF $100 OR LESS (MARCH 1982)

7.104-96

CFR TITLE 41 CHAPTER 18

CLAUSES FOR FIXED-PRICE SUPPLY CONTRACTS

The Contractor is responsible for the delivery of each item quantity within allowable variations, if any. If the Contractor delivers and the Government receives quantities of any item in excess of the quantity called for (after considering any allowable variation in quantity), such excess quantities will be treated as being delivered for the convenience of the Contractor. The Government may retain such excess quantities up to $100 in value without compensating the Contractor therefor, and the Contractor waives all right, title, or interests therein. Quantities in excess of $100 Will, at the option of the Government, either be returned at the Contractor's expense or retained and paid for by the Government at the contract unit price.

7.105 Additional Clauses. The following clauses shall be inserted in fixed-price supply contracts if it is desired to cover the subject matter thereof.

7.105-1 Alterations in Contract. Alterations in contract provisions may be made only in accordance with the provisions of 1.109. When alterations are necessary, they shall be set forth either in the Schedule or on an Attachment Sheet, preceded by the following clause:

ALTERATIONS IN CONTRACT (SEPTEMBER 1962)

The following alterations have been made in the provisions of this contract.

7.105-2 through 7.105-4 Reserved

7.105-5 Liquidated Damages. In accordance with 1.310, where a liquidated damages provision is to be used, the following provision shall be inserted as paragraph (f) of the "Default" clause (see 8.707) and the present paragraphs (f) and (g) of that clause redesignated (g) and (n).

(f) If the Contractor fails to deliver the supplies or perform the services within the time specified in this contract, or any extension thereof, the actual damage to the Government for the delay will be difficult or impossible to determine. Therefore in lieu of actual damages the Contractor shall pay to the Government as fixed, agreed, and liquidated damages for each calendar day of delay, the amount set forth elsewhere in this contract. Alternatively, the Government may terminate this contract in whole or in part as provided in paragraph (a) of this clause, and in that event the Contractor shall be liable, in addition to the excess costs provided in paragraph (b) above, for such liquidated damages accruing until such time as the Government may reasonably obtain delivery or performance of similar supplies or services. The Contractor shall not be charged with liquidated damages when

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7.105-5

CONTRACT CLAUSES

the delay arises out of causes beyond the control and without the fault or negligence of the Contractor, as defined in paragraph (c) above, and in such event, subject to the "Disputes" clause, the Contracting Officer shall ascertain the facts and extent of the delay and shall extend the time for performance of the contract when in his judgment the findings of fact justify an extension.

7.105-6 Bill of Materials.

A bill of materials consists of a report by a supplier which specifies the quantities of various materials required to produce a designated quantity of supplies of a particular kind. A bill of materials, with respect to all or part of the supplies to be furnished pursuant to a contract, will be required only if the contracting officer determines that such bill is necessary to develop materials or components requirements for production and maintenance programs, or for other specified purposes. In such event, the contract shall specify, with respect to such bill, the following:

(1) the supplies or parts thereof to be covered by the bill of materials;

(ii) the type of bill or bills (detailed, modified, expanded summary, or abbreviated summary) to be furnished, with applicable instructions;

(111) the compensation to be paid the contractor for furnishing such bill and any revisions thereto, or a statement that the price of the item to which the bill relates includes compensation for the furnishing of such bill; (iv) the number and kind of

furnished; and

(v) delivery dates.

copies of such bill to be

In such event, the contract shall also include the following

clause:

BILL OF MATERIALS (SEPTEMBER 1962)

(a) With respect to the supplies to be delivered pursuant to the contract, for which a Bill of Materials is required, the Contractor shall furnish a Bill of Materials in the required number of copies on Department of Defense Forms 346 and 347, if applicable, or authorized reproductions thereof, in accordance with the instructions specified in the Schedule.

(b) The Contractor shall furnish to the Government, at such intervals as designated in the Schedule, revised pages of the Bill of Materials incorporating the effect of any changes, pursuant to the clause hereof entitled "Changes," in the quantity of any material or part, or any other information contained in the Bill of Materials, or a statement that no revision is necessary. A final revision, or statement that no revision is necessary, shall be furnished upon completion of performance of the contract.

7.105-6

CFR TITLE 41 CHAPTER 18

CLAUSES FOR FIXED-PRICE SUPPLY CONTRACTS

(c) The Bill of Materials and all revisions or statements subsequent thereto shall be subject to inspection and acceptance by the Government.

of

Where a bill of materials is procured by contract separate from the supplies to which such bill of materials relates, such contract shall include such of the terms mentioned above as may be appropriate and shall specify that the bill materials shall be furnished on DD Forms 346 and 347, if applicable, The contractor shall not be required to obtain data for the bill of materials in greater detail from a subcontractor than he is to furnish under the terms of the above clause.

or authorized reproductions thereof.

7.105-7 Supply Warranty. In accordance with 1.324, an appropriate Supply Warranty clause may be inserted.

7.105-8 Stop Work Orders.

(a) Use of Clause. The clause set forth in (c) below is authorized for use in any negotiated fixed-price type contract under which work stoppage may be required for reasons such as advancements in the state of the art, performance or engineering break-throughs, or realignment of programs. This clause is not authorized for use in research contracts with educational or other nonprofit institutions.

(b) Use of Orders.

(1) Inasmuch as stop work orders may result in increased costs to the Government by reason of standby costs, such orders will be issued only with prior approval of the Procurement Officer. Generally, use of a stop work order be limited to those situations where it is advisable to

will

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