(a) In connection with the operation f aircraft in performance of this conract or the flight checking of trainees ereunder by employees or representaives of the Government, the contractor r any subcontractor engaged to provide he Flight Training shall procure and naintain at all times during the perormance of services under this contract Aircraft Public Liability Insurance, inluding coverage of liability to passengers, against bodily injury and property lamage. Such insurance shall be proured and maintained in limits of not ess than $100,000 with respect to any one person injured or killed and, subject to hat limit per person, an aggregate limit of $500,000 with respect to any number of persons injured or killed as the result of any one accident; and $100,000 per accident with respect to property damage. The liability limit with respect to passenger liability shall be not less than $100,000 per aircraft seat. This required insurance coverage shall be carried under terms and conditions which will protect the contractor, the subcontractor, and the student trainee.

(b) Each insurance policy evidencing this required insurance shall bear appropriate endorsements whereby the insurance carrier waives any rights of subrogation acquired against the United States

of America by reason of any payment under such policy, and such policy shall further provide that the contracting offcer will be given 30 days prior notice before cancellation of such policy or reduction of coverage thereunder can be effective.

(c) The contractor shall, prior to initiation of flight instruction under this contract, submit to the contracting officer or his duly authorized representative either (1) a certified copy of the insurance policy actually procured and maintained, or (2) an insurance certificate issued by the insurance carrier writing the insurance certifying to the existence of the required insurance coverage in conformity with this clause.

§ 1007.4803-14 Renegotiation.

Insert the clause set forth in § 7.103-13 of this title.

§ 1007.4804 Clauses to be used when applicable.

§ 1007.4804-2 Approval of contract.

Whenever the contract, prior to becoming effective, requires manual approval other than by the contracting officer, insert the clause set forth in § 7.105-2 of this title.

§ 1007.4804-3 Alterations in contract. Insert the clause set forth in § 7.105-1 of this title.

[29 F.R. 15259, Nov. 13, 1964]

§ 1007.4805 Additional clauses.

Any other clause authorized by Subchapter A, Chapter I of this title, this subchapter, according to instructions for its use, may be used when it is necessary to cover the subject matter of such clause.

[28 F.R. 5575, June 6, 1963]

§ 1007.4806 Schedule provisions.

The following provisions will be included in the Schedule and will be completed with appropriate information prior to execution of the contract.

PART I-SERVICES TO BE PERFORMED
(SEPT. 1958)

(a) The Contractor shall provide flight instruction to students, designated by the Contracting Officer as pilot students. Such instruction shall be in accordance with the Syllabus of Instruction attached hereto as Exhibit "A".

(b) The Contractor shall furnish transportation of students to and from the place

of flight instruction as may be approved by the Contracting Officer.

(c) The Contractor shall keep such technical, operational and administrative type records as may be required by the Contracting Officer.

(d) Additional hours of training per stu dent above those prescribed in the Syllabus of Instruction shall be given only as authorized by the Contracting Officer. Such authorization shall be in the form of a Supplemental Agreement amending the contract.

(e) If, at any time, the Contractor is of the opinion that any student should be eliminated from further instruction under this contract, it shall notify the Contracting Officer and the appropriate CAA official thereof, stating its reasons therefor. However, the Contractor shall continue to provide to any such student the instruction called for by this contract unless the Contracting Officer directs the Contractor to eliminate such student from further instruction. The Contracting Officer may make such direction either (1) upon the recommendation of the CAA flight examiner or (2) upon the joint recommendations of the Contractor and the Professor of Air Science at the Contractor's institution. If the Contracting Officer directs elimination of any student from further instruction, whether or not under the circumstances described above in this paragraph (e), the Contractor shall eliminate the student from any further instruction under this contract promptly upon receipt of such direction.

(f) It is understood ground school instruction of students will be the responsibility of the Air Force, separate from flight instruction, thirty (30) hours of which will be accomplished during the students' regularly scheduled Air Force ROTC class periods and five hours of which will be at the discretion of the Detachment Commander.

(Designate airplane model(s) and
horsepower)

(with a separate and independent threecontrol system, i. e., rudder, elevator and aileron controls), as approved by the Civil Aeronautics Administration and the Contracting Officer, will be provided and properly maintained at all times, for each fifteen (15) students or fraction thereof receiving instruction under this contract. Such aircraft need not be used exclusively for service under this contract.

(b) Unless otherwise directed by the Contracting Officer, one flight instructor holding a currently valid Commercial Pilot Certificate and appropriate instructor's rating issued by the CAA, will be provided for each fifteen (15) students or fraction thereof receiving

instruction under this contract. Such instructors need not be employed exclusively for services under this contract.

(c) The Contractor shall assign each stu dent to an instructor who, where practicable, will be responsible for the instruction of students assigned to him during the entire course. The Contractor shall furnish the Contracting Officer with the names of the students assigned to each flight instructor.

(d) The Contractor, or its subcontractor, if flight instructions are furnished through a subcontractor, shall possess and keep currently in effect at all times during the performance of services under this contract, & Flying School Certificate with an appropriate flying school rating issued under provisions of Part 50 of the Civil Air Regulations.

(e) All operations under this contract shall be in accordance with all applicable provisions of the Civil Air Regulations, except as otherwise provided by the Air Force and the CAA under the terms of this contract.

PART III-PERIOD OF PERFORMANCE
(SEPT. 1958)

The Contractor shall begin flight instructions within the time designated by the Contracting Officer and shall continue until the course of instruction for the designated students is completed or until whichever occurs earlier.

PART IV-CONSIDERATION AND PAYMENT
(SEPT. 1958)

(a) To perform the services called for in Part I of this contract, the Contractor will have provided solo hours and

dual hours of flight instruction. For full payment of such services the Government will pay the Contractor the sum of $. for each hour of solo instruction and $. for each hour of dual instruction actually provided. Any check flight administered by CAA personnel will be paid for at the solo rate.

(b) Where a student is eliminated for any reason whatsoever prior to completion of the course of flight instruction, the Government shall be obligated to pay for only the instruction services which have been performed with respect to such student prior to the date of elimination. Elimination of any student prior to completion of the course of flight instruction shall not be considered a termination within the meaning of the clause of this contract entitled "Termination for Convenience of the Government.”

PART V-LOCATION AND SUBCONTRACTING (a) The location where flight instructions will be performed is

(b) The items of services the Contractor presently estimates will be performed by subcontract are

[26 F.R. 12461, Dec. 27, 1961, as amended at 27 F.R. 3389, Apr. 10, 1962]

This subpart sets forth clauses for use basic agreements with telephone comanies other than the American Telehone & Telegraph Company and the ssociated Bell System Companies under hich communications services and falities will be ordered. The clauses set orth in § 1007.4902 will be used in basic greements when the services and facilies to be ordered are not expected to inolve special construction for which a harge will be made by the company to he Government in the form of a contruction charge to be paid prior to the nitiation of services or over a period of ears, or as a result of a contingent ternination liability to be imposed upon the Government in the event that services are ancelled prior to the expiration of a pecified period. If any such special contruction charges or the assumption of contingent liabilities are expected, the lauses set forth in § 1007.4903 will also De included in the basic agreement either at the time of its execution or by supplenental agreement if the necessity of payng such charges or of assuming contingent liabilities arises subsequent to the execution of the basic agreement.

1007.4901 Limitation on use of basic agreements.

(a) Basic agreements for telephone services will not be entered into with any telephone company with respect to servces for which the General Services Administration has an indefinite delivery Eype area contract in effect, available for Air Force use, if such GSA area contract is adequate to meet the requirements of Department of Defense activities for communication services. See § 5.803 of this title.

(b) Any basic agreement entered into according to this subpart, and any Communications Service Authorization issued under such basic agreement, will be according to the directions and limitations contained in AFM 100-22 (Commercial Communications Services).

33-611-65- -19

§ 1007.4902 Clauses for basic agreements when no special construction charges are expected.

The following clauses will be inserted in all basic agreements for communications services and facilities.

§ 1007.4902-1 Introductory recital. (APR. 1958)

This contract, entered into this day of by the United States of America, acting through the Department of the Air Force, hereinafter called the "Department," represented by the Contracting Officer executing this contract, and

corporation organized and existing under the laws of the State of hereinafter called the "Contractor," witnesseth:

11)

Insert the clause set forth in § 7.103-1 of this title and add as paragraph (d) thereof the following:

(d) The term "the Contractor's established regulations" means (1) the rates, terms, and conditions in regularly established tariffs, or, in the absence of established tariffs applicable to the services or facilities being furnished, the same rates, terms and conditions applicable to others for similar services or facilities, or (ii) special charges, terms and conditions agreed upon by the Department and the Contractor and specifically enumerated in the written order covering such services and facilities.

§ 1007.4902-3 Scope of services and facilities.

SCOPE OF SERVICE AND FACILITIES (APR. 1958)

The Contractor shall furnish to the Government upon request any services, equipment, and facilities normally offered to its customers. Requests will be made by serially numbered "communication Service Authorizations" (DD Form 428), which make reference to this contract and specify the services, equipment, and facilities desired. The services, equipment, and facilities ordered shall be subject to and in accordance with the Contractor's established regulations. [26 F.R. 12462, Dec. 27, 1961, as amended at 27 F.R. 3389, Apr. 10, 1962]

§ 1007.4902-4 Payment.

PAYMENT (APR. 1958)

The Government shall pay for services, equipment, and facilities ordered under this contract and furnished by the Contractor upon receipt of monthly bills thereafter by the office designated in the Communication

Service Authorization ordering such services, equipment, and facilities. The finance officer designated in the ordering document will make payment. No payment will be made in advance of the Contractor's furnishing the services, equipment, and facilities for which payment is requested.

[26 F.R. 12462, Dec. 27, 1961, as amended at 27 F.R. 3389, Apr. 10, 1962]

§ 1007.4902-5 Period of contract and termination.

PERIOD OF CONTRACT AND TERMINATION
(APR. 1958)

This contract shall take effect on the date it is entered into and shall continue in effect until the following June 30th and thereafter until terminated. Either party may terminate this contract at any time upon thirty days written notice to the other party. The Government may, after such notice in writing to the Contractor, discontinue the use of any service, equipment, or facility furnished hereunder at any time, and the recurring charges pertaining thereto shall be adjusted to the date of discontinuance, subject to the Contractor's established regulation pertaining to the minimum period of service. The payments subsequent to the end of the Government's fiscal year on June 30th are contingent upon the availability of appropriations therefor.

[26 F.R. 12462, Dec. 27, 1961, as amended at 27 F.R. 3389, Apr. 10, 1962]

Insert the clause set forth in § 7.104-16 of this title.

§ 1007.4902-9 Disputes.

Insert the clause set forth in § 7.103-12 of this title as paragraph (a) and add the following:

(d) The provisions of paragraph (a) above shall not apply to disputes which are subject to the jurisdiction of a governmental regulatory agency and such provisions shall be subject to the requirements of the law with respect to the rendition of communications services and the collection of tariff charges. § 1007.4902-10 Convict labor.

Insert the clause set forth in § 12.203 of this title.

Insert the clause set forth in § 7.104-10 of this title.

§ 1007.4902-13 Reporting of royalties. Insert the clause set forth in § 9.110 d. this title, substituting the following sen tence for the introductory sentenc· thereof:

The provisions of this clause shall be ap plicable to orders for services placed unde this contract only if (1) the Contracting Off cer determines that billings during the Go ernment's fiscal year are expected to exceed $50,000.00 in amount and (ii) the CSA or dering such services provides that this clause will be applicable.

§ 1007.4902-14 Authorization and con

sent.

Insert the clause set forth in § 9.102of this title, substituting the following phrases for the first nine lines of that clause:

The Government hereby gives authoriza tion and consent (without prejudice to its rights of indemnification, if such rights are provided for in this contract) for all use and manufacture, in the performance of any or der placed under this contract for commu nication services and facilities for which rates, charges, and tariffs are not established by a governmental regulatory body, or any part thereof or any amendments thereto or any subcontract thereunder (including any lower-tier subcontract), of any patented invention.

§ 1007.4902-15 Notice and assistance.

Insert the clause set forth in § 9.104 of this title substituting the following sentence for the introductory sentence contained in that clause:

The provisions of this clause shall be ap plicable only to orders placed under this contract for communications services and facilities for which rates, charges, and tariffs are not established by a governmental regulatory body.

§ 1007.4902-16 Patent indemnity.

Insert the clause set forth in § 9.103-2 of this title substituting the following for the first two lines thereof:

As to all orders placed under this contract for communications services and facilities for which rates, charges, and tariffs are not established by a governmental regulatory

ly, the Contractor shall indemnify the vernment and its offices, agents, and emyees against. 007.4902-17

Approval of contract.

Whenever a basic agreement requires inual approval, other than by the ntracting Officer, prior to becoming ective, insert the clause set forth in .105-2 of this title.

1007.4902-18 Access to facilities.

ACCESS TO FACILITIES (APR. 1958)

The Department shall permit the Conactor access at all reasonable times to the cilities and equipment furnished by the ntractor for the purpose of inspecting and aintaining them provided that, if by reason military necessity the Department is unle to permit such access, the Department all at its own risk and expense maintain ch facilities and equipment, and the Conactor shall not be held responsible during e period of such nonaccess for the serve involving any of such facilities and [uipment.

26 F.R. 12462, Dec. 27, 1961, as amended at F.R. 3389, Apr. 10, 1962]

1007.4903

Clauses to be used when special construction charges are expected.

The following clauses will be included 1 basic agreements with telephone comanies whenever it is expected that in rder to secure the services and facilities esired it will be necessary for the Govrnment to reimburse the company for, r to assume a contingent termination ability with respect to all or part of the osts of special construction of facilities r provision of special equipment. 1007.4903-1 Direct charges for special construction.

DIRECT CHARGES FOR SPECIAL CONSTRUCTION (APR. 1958)

(a) Except to the extent provided in the lause of this contract entitled Cancellation r Termination, the Government shall not diectly reimburse the Contractor for charges ased on the cost of constructing any facililes or providing any equipment unless such lirect reimbursement is specifically authorzed by the Contracting Officer in a Comnunication Service Authorization issued hereunder. If at any time the service requiring the use under this contract of failities or equipment for which the Government has, in whole or in part, directly reimbursed the Contractor is discontinued, the Contractor shall allow the Government such credit as may be appropriate for the value of the facilities and equipment, if any, which is attributable to the Government's contribution. The value of the facilities and

equipment shall be determined on the basis of the foreseeable use of the facilities and equipment by the Contractor at the time their use is discontinued or on net salvage value, whichever is greater. The Contractor shall promptly pay the Government the amount of any such credit.

(b) The amount of any direct special construction charge shall not exceed the actual costs to the Contractor, properly allocable to the services to be provided to the Government, of specially constructing or providing the facilities and equipment involved. In no event shall the amount of any direct special construction charge include costs incurred by the Contractor for which a cancellation or termination charge applies or any costs which the Contractor shall recover by means of its recurring charges. The Contractor represents that in establishing its recurring charges for the services, facilities and equipment involved, it has not included in its rate base any costs for which it has been reimbursed by the Government and that depreciation charges are based only on the cost of facilities and equipment paid by the Contractor and not reimbursed by the Government.

(c) The amount of any direct special construction charge authorized to be paid to the Contractor by the Contracting Officer shall be paid to the Contractor after the special construction or installation involved has been completed either in a single payment or in monthly payments over a period not exceeding ten years, as may be agreed to by the parties. If payment is to be made in the latter manner, the Contractor shall include in its monthly bill for the services utilizing the facilities for which the direct special construction charge applies the pro rated portion of such charge separately itemized. In the event the Government discontinues the services using the specially constructed facilities or specially provided equipment before a direct special construction charge therefor is fully paid to the Contractor, the Government shall pay to the Contractor the balance due thereon; and the final bill for the services using such facilities or equipment shall include the unpaid balance of any direct special construction charge applicable to those facilities. If the Contractor discontinues furnishing services using facilities or equipment with respect to which some portion of a direct special construction remains unpaid, the Government will not be liable for payment of such unpaid balance, unless the Government elects to take title to the facilities under the clause of this contract entitled "Title to Communications Facilities."

[26 F.R. 12462, Dec. 27, 1961, as amended at 27 F.R. 3389, Apr. 10, 1962; 27 F.R. 11418, Nov. 20, 1962]