actor has possession of property to hich the Government has title on the ax assessment date, pursuant to progess payment clauses or otherwise:

All property taxes assessed on the Con-actor's possession of, interest in, or use of roperty, title to which is in the Governent, are excluded from the contract price. SEPTEMBER 1962)

(6) Where Government property is urnished under a facilities contract, the ontracting officer shall review the facilies contract when negotiating a subseuent supply contract to assure that the ontractor is not reimbursed twice for he same taxes. (b) Clause.

FEDERAL, STATE, AND LOCAL TAXES
(SEPTEMBER 1962)

(a) As used throughout this clause, the erm "contract date" means the date of this ontract. As to additional supplies or serves procured by modification to this conact, the term "contract date" means the ate of such modification.

(b) Except as may be otherwise provided à this contract, the contract price includes, o the extent allocable to this contract, all ederal, State, and local taxes which, on the ontract date:

(1) By Constitution, statute, or ordinance, re applicable to this contract, or to the ransactions covered by this contract, or to roperty or interests in property; or

(ii) Pursuant to written ruling or regulaon, the authority charged with administerg any such tax is assessing or applying to, nd is not granting or honoring an exemption or, a contractor under this kind of contract, r the transactions covered by this contract, r property or interests in property.

(c) Except as may be otherwise provided in his contract, duties in effect on the contract ate are included in the contract price, to he extent allocable to this contract.

(d) (1) If the Contractor is required to ay or bear the burden:

(1) of any tax or duty which either was ot to be included in the contract price ursuant to the requirements of paragraphs b) and (c), or of a tax or duty specifically xcluded from the contract price by a proision of this contract; or

(11) Of an increase in rate of any tax or uty, whether or not such tax or duty was kcluded from the contract price; or

(iii) of any interest or penalty on any tax r duty referred to in (1) or (ii) above; the ontract price shall be increased by the mount of such tax, duty, interest, or penalty llocable to this contract: Provided, That the ontractor warrants in writing that no mount of such tax, duty, or rate increase

was included in the contract price as a contingency reserve or otherwise: And provided further, That liability for such tax, duty, rate increase, interest, or penalty was not incurred through the fault or negligence of the Contractor or his failure to follow instructions of the Contracting Officer.

(2) If the Contractor is not required to pay or bear the burden, or obtains a refund or drawback, in whole or in part, of any tax, duty, interest, or penalty which:

(1) Was to be included in the contract price pursuant to the requirements of paragraphs (b) and (c);

(ii) Was included in the contract price; or (iii) Was the basis of an increase in the contract price; the contract price shall be decreased by the amount of such relief, refund, or drawback allocable to this contract, or the allocable amount of such relief, refund, or drawback shall be paid to the Government as directed by the Contracting Officer. The contract price also shall be similarly decreased if the Contractor, through his fault or negligence or his failure to follow instructions of the Contracting Officer, is required to pay or bear the burden, or does not obtain a refund or drawback of, any such tax, duty, interest, or penalty. Interest paid or credited to the Contractor incident to a refund of taxes shall inure to the benefit of the Government to the extent that such interest was earned after the Contractor was paid or reimbursed by the Government for such taxes.

(3) Invoices or vouchers covering any adjustment of the contract price pursuant to this paragraph (d) shall set forth the amount thereof as a separate item and shall identify the particular tax or duty involved.

(4) This paragraph (d) shall not be applicable to social security taxes; income and franchise taxes, other than those levied on or measured by (1) sales or receipts from sales, or (ii) the Contractor's possession of, interest in, or use of property, title to which is in the Government; excess profits taxes; capital stock taxes; unemployment compensation taxes; or property taxes, other than such property taxes, allocable to this contract, as are assessed either on completed supplies covered by this contract, or on the Contractor's possession of, interest in, or use of property, title to which is in the Government.

(5) No adjustment of less than one hundred dollars ($100) is required to be made in the contract price pursuant to this paragraph (d).

(e) Unless there does not exist any reasonable basis to sustain an exemption, the Government, upon request of the Contractor, without further liability, agrees, except as otherwise provided in this contract, to furnish evidence appropriate to establish exemption from any tax which the Contractor warrants in writing was excluded from

the contract price. In addition, the Contracting Officer may furnish evidence appropriate to establish exemption from any tax that may, pursuant to this clause, give rise to either an increase or decrease in the contract price. Except as otherwise provided in this contract, evidence appropriate to establish exemption from duties will be furnished only at the discretion of the Contracting Officer.

(f) (1) The Contractor shall promptly notify the Contracting Officer of all matters pertaining to Federal, State, and local taxes, and duties, that reasonably may be expected to result in either an increase or decrease in the contract price.

(2) Whenever an increase or decrease in the contract price may be required under this clause, the Contractor shall take action as directed by the Contracting Officer, and the contract price shall be equitably adjusted to cover the costs of such action, including any interest, penalty, and reasonable attorneys' fees. § 18-11.402

contracts.

Cost-reimbursement type

No specific tax clause is required in cost-reimbursement type contracts since the problem of Federal, State, and local taxes presents solely a question of allowability of costs which is covered by the "Contract Cost Principles and Procedures" set forth in Part 18-15. However, if, during the course of negotiations, the contractor requests inclusion of a contract provision for Federal, State, and local taxes, the following clause is authorized for use.

FEDERAL, STATE, AND LOCAL TAXES (SEPTEMBER

1962)

Except as otherwise provided in this contract, Federal, State, and local taxes (other than (1) Federal taxes on income and excess

profits, (ii) taxes in connection with financing, refinancing, or refunding operations, and (iii) Federal excise taxes from which exemption is obtainable under Sections 42214223 of the Internal Revenue Code of 1954 or for which a credit is obtainable under Section 6416(c) thereof) paid by the Contractor or any cost or cost-plus-a-fixed-fee subcontractor hereunder (provided that there was no fixed-price subcontractor intervening between such subcontractor and the Contractor) and incident to the performance of this contract, shall constitute items of allowable cost under this contract or such cost or cost-plus-a-fixed-fee subcontract if (i) the Contractor has requested NASA to furnish tax exemption certificates or other similar evidence of exemption for use by the Contractor and such cost or cost-plus-afixed-fee subcontractor in obtaining exemption from such Federal, State, or local taxes, and (ii) NASA has notified the Contractor that it will not furnish such evidence of exemption. Payments of taxes for which evidence of exemption has been furnished hereunder shall constitute items of Allowable Cost under this contract (1) if the Federal taxing authorities have refused to recognize such evidence of exemption, or (ii) if the State or local taxing authorities have refused to recognize such evidence of exemption and the Contractor has notified the Contracting Officer of such refusal and has taken such steps as may have been requested by the Government to cause such taxes to be paid in such manner as to preserve all rights to refund thereof, to preserve and to cause to be assigned to the Government any and all rights to any refund of such taxes, to permit the Government to prosecute any claim, litigation, or proceeding in the name of the Contractor, and to furnish to the Government all reasonable assistance and cooperation requested by the Government in the prosecution of any such claim, litigation, or proceeding for the recovery of such taxes.

All

Is is NASA policy to maintain and encourage the best possible relations with industry and labor in order that the Government may procure needed supplies and services without delay. problems arising out of labor relations of private contractors and all communications with labor organizations or Federal agencies relative thereto will be handled in accordance with procedures which are consistent with the following general policy.

(a) NASA contracting officers, in taking any of the actions prescribed or authorized in this Part 18-12, will consult with and secure advice from the labor relations advisor or other NASA official assigned such function at the installation concerned.

(b) NASA officials will remain impartial in, and will refrain from taking a position on the merits of, a dispute between labor and private management and will not undertake the conciliation, mediation, or arbitration of a labor dispute. NASA must, however, take any action that may be open to it under the circumstances to protect the Government's interest and to prevent, where possible, interruptions, in NASA schedules.

(c) NASA will, insofar as is practicable, exchange information concerning labor matters with other affected Government agencies in order to maintain a uniform Government labor policy in a particular plant or labor-management dispute.

(d) NASA officials will not take any independent action with respect to labor matters which involve major policy determinations which have a substantial impact on the activities of NASA or other Government agencies without the prior approval of the NASA Office of Labor

Relations. A full report concerning any labor relations problem, particularly where a labor dispute significantly threatens to affect important NASA procurement, should be furnished to the NASA Office of Labor Relations, in accordance with § 18-12.101-2.

(e) The NASA Office of Labor Relations will take action in connection with labor relations problems consistent with its responsibilities, for example:

(1) Giving notice of the existence of a labor dispute, which affects or threatens to affect procurement of supplies or services, to the Government agency which has responsibility for conciliation, mediation, arbitration, or other action with respect thereto;

(2) Advising the Government agency responsible for action with respect to labor disputes, or the parties to a labor dispute, of factual information pertaining to procurement of the supplies or services involved to the extent consistent with security regulations; or

(3) Seeking to obtain such voluntary agreement between management and labor as will permit, notwithstanding the general continuance of the dispute, uninterrupted procurement of supplies and services, provided such activity does not involve NASA in the merits of a labor difference or dispute. § 18-12.101-1

Communications regard.

ing labor matters.

Direct communication is not authorized with the national headquarters or national offices of any labor organization or Federal agency except with the specific prior approval of the NASA Office of Labor Relations. Contracting officers are authorized to communicate directly with local labor organizations and local offices of Federal agencies as required to carry out their responsibilities set forth in § 18-12.101-2 below.

§ 18–12.101–2 Labor-management disputes.

(a) Reports. Reports of actual or incipient labor-management disputes af fecting NASA procurement, operations, or services shall be submitted as specified by the Director, Office of Labor Relations, NASA. These reports shall describe, but need not be limited to:

(1) The nature of the actual or incipient dispute, including whether a strike, lockout, slow-down, shut-down,

r picketing is involved, and the degree f emergency presented;

(2) The character, quantity, and imortance of the supplies, operations, or ervices involved, including scheduled erformance and delivery dates and the elation of the production involved to the otal procurement program;

(3) The identity and location of the arties to the dispute and their repreentatives, including the approximate umber of employees involved;

(4) The need for and availability of lternative facilities to furnish the items nvolved within the time required;

(5) The critical items, if any, which hould be removed from the plant or work site or should be continued to be processed there with the consent of the parties to the dispute; and

(6) Recommended action to be taken by NASA.

Reports shall be made as early as posible and shall include immediately available information. Supplemental reports shall be made, as appropriate, to provide full information and cover new developments. Reports shall be sent by the most expeditious means required in view of the seriousness of the situation. When an immediate critical effect on NASA procurement is probable, the initial report shall be made by telephone and followed by an electrically transmitted message or a confirming letter.

(b) Other action by the contracting officer. When a strike which may have an adverse effect on NASA programs is imminent or in progress at a prime or subcontractor's plant, contracting officers shall:

(1) Advise both the prime contractor and the head of the union local in writing of the expected impact of the strike on NASA programs and, where appropriate, of the actions which NASA is considering to protect the Government's interest and prevent delay in the accomplishment of NASA's mission; however, if the strike is in a subcontractor's plant, the subcontractor will only be approached through the prime contractor;

(2) Explore the possibility of locating other sources for the supplies and services to have been provided by the struck or strike-threatened plant;

(3) Consider removing finished items from the plant and seeking resumption

of work by the contractor on those items to be furnished which are critical to NASA programs;

(4) Where it appears likely that the work stoppage cannot be prevented, consider removing from the plant work in process, components, and materials which are critical to the NASA program, with a view to continuing the work elsewhere.

(c) NASA Headquarters approval required for removal of items from affected plants or facilities. When the contracting officer determines that it would be in the best interest of the Government to remove items or to press for resumption of work as provided in paragraph (b) of this section, he shall first request approval from the NASA Office of Labor Relations and then take such action as shall be approved.

(d) Inspection of material during labor disputes. Despite the existence of a labor dispute, inspection functions at contract plants or sites shall be performed as normally required during contract performance except where the safety of the inspector may be endangered.

§ 18-12.101-3

Admission of labor representatives to contract sites.

NASA activities shall not prevent the access of labor union representatives to contract sites for the conduct of union business if their activities are compatible with performance of the contract work involved and applicable safety and security regulations.

§ 18-12.102 Overtime, extra-pay shifts, and multi-shift work.

§ 18-12.102-1 Definitions.

As used throughout this § 18-12.102, the following terms shall have the meanings set forth in this section:

(a) "Normal workweek and normal workday" mean, generally, a workweek of 40 hours and a workday of 8 hours, In any area outside the United States, its possessions, and Puerto

respectively.

Rico, a workweek longer than 40 hours or a workday longer than 8 hours will be considered normal (1) if such workweek or workday does not exceed that which is normal for such area as determined by local custom, tradition, or law, and (2) if hours worked in excess of 40 hours in such workweek or 8 hours in such