CLAUSES FOR FIXED-PRICE R&D CONTRACTS

7.302-54 Reports of Work. A clause requiring the contractor to furnish reports of work shall be included in the Schedule of the contract. An approved clause is set forth below. Changes in this clause may be made to meet the particular requirements of a procurement. Consideration should be given in each case to the desirability of providing for reports on the completion of significant units or phases of the work, in addition to periodic reports and reports on the completion of the entire contract.

REPORTS OF WORK (SEPTEMBER 1962)

(a) Monthly Progress Reports. The Contractor shall submit separate monthly progress reports of all work accomplished during each month of contract performance. Reports shall be in narrative form, and brief and informal in content. Monthly reports shall include:

(i) a quantitative description of overall progress;

(ii) an indication of any current problems which may impede performance, and proposed corrective action; and (iii) a discussion of the work to be performed during the next monthly reporting period.

Monthly reports shall be submitted in..... copies, plus a reproducible copy.

(b) Quarterly Progress Reports. The Contractor shall submit separate quarterly reports of all work accomplished during each three-month period of contract performance. In addition to factual data, these reports shall include a separate analysis section which interprets the results obtained, recommends further action, and relates occurrences to the ultimate objectives of the contract work. Sufficient diagrams, sketches, curves, photographs, and drawings shall be included to convey the intended meaning. Quarterly reports shall be submitted in ..... copies, plus a reproducible copy.

(c) Final Report. The Contractor shall submit a final report which documents and summarizes the results of the entire contract work, including recommendations and conclusions based on the experience and results obtained. The final report shall include tables, graphs, diagrams, curves, sketches, photographs, and drawings in sufficient detail to comprehensively explain the results achieved under the contract. The final report shall be submitted in copies, plus a reproducible copy.

7.302-55 Scientific and Technical Information Service. In conformance with Section 203(a) of the National Aeronautics and Space Act of 1958 (42 U.S.C. 2473), and in the interest of conserving time and funds, and to avoid unnecessary duplication of effort, it is NASA policy to encourage contractors to use scientific and technical information in the possession of NASA in direct support of all NASA contracts involving research and development work. This information, which is available to contractors free of charge, includes past and current reports on research, development, test and evaluation. In order that such scientific and technical information may be provided in a timely manner, it is necessary for the contractor to furnish NASA the information specified in the clause set forth below. Accordingly, the following clause shall be inserted in all research and development contracts.

SCIENTIFIC AND TECHNICAL INFORMATION SERVICE (MARCH 1980)

(a) In order that NASA may provide the Contractor scientific and technical information in accordance with the procedures set forth in the introduction section of Scientific and Technical Aerospace Reports (STAR) distributed by NASA, the Contractor shall, within 10 days after receipt of this contract, furnish in writing to the Scientific and Technical Information Branch (Code NST-40), NASA Headquarters, Washington, DC. 20546, (i)name of contractor, (11) contract number, (iii) date of contract completion, (iv) security classification of contract and (v) name and address of the individual responsible for technical performance of the contract.

(b) NASA reserves the right, in the event of the unavailability of any scientific and technical information requested, to notify the Contractor of such unavailability. Failure of NASA to furnish any information requested shall not entitle the Contractor to any adjustment in the price, cost (estimated or target), fee, time required for performance or delivery schedule of the contract.

7.303 Clauses Required To Be Used When Applicable. The following clauses shall be inserted when applicable in all fixed-price research and development contracts except as indicated in this Subpart. See 7.350 for short form clauses.

7.303-1 Clauses for Contracts Involving Construction Work.

(a) In accordance with the requirements of Part 12, Subpart 4, insert in fixed-price research and development contracts which involve construction work the clauses listed below, which are set forth in 12.403-1:

Davis-Bacon Act

Contract Work Hours and Safety Standards Act – Overtime Compensation

Apprentices and Trainees

Payrolls and Basic Records

NASA PROCUREMENT REGULATION

7.303-1

(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).

7.303-2 Filing of Patent Applications. In accordance with the requirements of 9.106, insert the clause set forth therein.

7.303-3 through 7.303–5 [Reserved]

7.303-6 Priorities, Allocations, and Allotments. In accordance with the requirements of 1.307-2, insert the clause set forth therein.

7.303-7 Government Property. In accordance with the requirements set forth in 13.702 or 13.706, insert the appropriate contract clause.

7.303-8 Communist Areas. In accordance with the requirements of 6.403, insert the clause set forth therein.

7.303-9 Notice to the Government of Labor Disputes. In accordance with the requirements of 7.104-4, insert the clause set forth therein.

7.303-10 Limitation on Withholding of Payments. In accordance with the requirements of 7.10421, insert the clause set forth therein.

7.303-11 [Reserved]

7.303-12 Subcontracts. In accordance with the requirements of 23.201-1, insert the appropriate Subcontracts clause.

7.303-13 through 7.303–16 [Reserved]

7.303-17 Ground and Flight Risk. In all negotiated fixed-price type contracts for the production, modification, maintenance, or overhaul of aircraft, insert the clause set forth in 10.404. 7.303-18 through 7.303–22 [Reserved]

7.303-23 Progress Payments. In accordance with the requirements of 7.104-35, insert the appropriate clause as set forth therein.

7.303-24 Required Source for Jewel Bearings and Related Items. In accordance with the requirements of 1.315, insert the clause set forth therein.

7.303-25 Labor Surplus Area Subcontracting Program. In accordance with the requirements of 1.805-3(b), insert the clause set forth therein.

7.303-26 Frequency Authorization. In accordance with 7.104-26, insert the clause therein. 7.303-27 Competition in Subcontracting. In accordance with the requirements of 7.104-40, insert the clause set forth therein.

7.303-28 Subcontractor Cost or Pricing Data. In accordance with the requirements of 3.807-4, insert the appropriate clause set forth in 7.104-43.

7.303-29 Audit By National Aeronautics and Space Administration. In accordance with 7.10442(a), insert the clause set forth therein.

7.303-30 Special Test Equipment. In accordance with the requirements of 13.705, insert the clause set forth therein.

28.

7.303-31 Price Reduction for Defective Cost or Pricing Data. Insert the clause set forth in 7.104

7.303-32 Through 7.303–34 [Reserved]

7.303-35 Limitation of Liability. In accordance with 1.330(b), insert the appropriate clause in 7.104-45.

7.303-50 Optional Data Requirements. In accordance with the requirements of 9.203-2, insert the clause set forth therein.

7.303-51 Approval of Contract. In accordance with the requirements of 7.104-51, insert the clause set forth therein.

7.303-52 Preference for United States

Flag Vessels. Under the circumstances described in Part

1, Subpart 14, insert the clause set forth in 1.1402-3.

7.303-53 Geographic Participation in the Aerospace Program. In accordance with the requirements of 1.302-51, insert the clause set forth therein.

7.303-2

CFR TITLE 41 CHAPTER 18

CLAUSES FOR FIXED-PRICE R&D CONTRACTS

7.303-54 Financial Reporting of Government-Owned/Contractor-Held Property. In accordance with the instructions in 7.104-54, insert the clause set forth therein.

7.303-55 Cost Accounting Standards. In accordance with 3.1204, insert the clause set forth in 7.104-55.

7.303-56 NASA Financial Management Reporting. Insert the appropriate clause set forth in 7.104-53 in accordance with the instructions set forth therein.

7.303-57 Key Personnel and Facilities. In accordance with the requirements of 1.352, insert the clause set forth therein.

7.303-58 Safety and Health. In accordance with the requirements of Part 1, Subpart 52, Insert the clause set forth in 1.5204.

7.303-59 [Reserved]

7.303-60 Report on NASA Subcontracts. In accordance with the requirements of 21.500, insert the clause set forth therein.

7.303-61 Rights in Data for Potentially Hazardous Items. In accordance with the requirements of 9.203-6, insert the clause specified therein.

7.303-62 Potentially Hazardous Items. In accordance with the requirements of 1.351, insert the clause set forth therein.

7.303-63 Pricing of Adjustments. In accordance with the requirements of 7.103-54, insert the clause set forth therein.

7.303-64 Order of Precedence. In accordance with 7.104-56, insert the clause set forth therein. 7.303-65 Preference for United States Flag Air Carriers. In accordance with 1.336-1(b), insert the clause in 7.104-95.

86.

7.303-66 through 7.303–85 [Reserved]

7.303-86 Notification of Changes. In accordance with 26.802 insert the clause set forth in 7.104

7.303-87 and 7.303-88 [Reserved]

7.303-89 Engineering Change Proposals (ECP's). In accordance with 26.205, the clause under 7.104-89 is a sample clause.

7.303-90 Change Order Accounting. In accordance with 26.205, the clause under 7.104-90 is a sample clause.

7.303-91 Notice of Intent to Disallow or Not Recognize Costs. Insert the clause in 7.203-30 in all fixed-price incentive contracts and contracts providing for price redetermination.

7.304 Additional Clauses. Insert the following clauses if it is desired to cover the subject matter. 7.304-1 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, (ii) 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 cost of, or the time required for performance of, this contract, or otherwise affects any other provisions of this contract, whether changed or not changed by any such order, an equitable adjustment shall be made (i) in the contract price or time of performance, or both, and (ii) 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 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 on 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 NASA PROCUREMENT REGULATION

7.304-1

CONTRACT CLAUSES

contractor to furnish a Certificate of Current Cost or Pricing Data (see 3.807-6) and shall assure the contract includes or is modified to include a Defective Pricing Data clause (see 7.104-28). 7.304-2 Alterations in Contract. The clause set forth in 7.105-1 may be inserted.

7.304-3 [Reserved]

7.304-4 Bill of Materials. In accordance with the instructions in 7.105-6, the clause set forth therein may be used.

7.304-5 Stop Work Orders. The clause set forth in 7.105-8 is authorized for use under the criteria, and in accordance with the instructions, set forth in 7.105-8.

7.304-6 [Reserved]

7.304-7 [Reserved]

7.304-8 Warranty. In accordance with 1.324, an appropriate warranty clause may be inserted. 7.304-50 Notice of Delay. In accordance with the instructions in 7.205-50, the clause set forth therein is authorized for use.

7.304-51 Limitation of Government's Obligation. The clause set forth below is authorized for use when all of the following conditions are present:

(i) the total fixed price of the contract (including options as defined in Part 1, Subpart 15) is $1,000,000 or more;

(ii) the period of performance under the contract is in excess of twelve months or the period of performance overlaps the succeeding fiscal year;

(iii) funds are not available to fund the total fixed-price of the contract at the time of entering into the contract; and

(iv) initial funding of the contract is not less than fifty percent of the total fixed-price. Notwithstanding the grant of authority to use the clause under the foregoing circumstances, it is emphasized that fixed-price contracts shall be fully funded whereverpossible and that, accordingly, incremental funding of such contracts should be kept to the absolute minimum. Contracting officers are authorized, in appropriate cases, to revise paragraphs (a), (b), and (g) of the clause to specify the work required under the contract in lieu of contract item numbers.

LIMITATION OF GOVERNMENT'S OBLIGATION (SEPTEMBER 1974)

(a) Of the total price of items ..... through....., the sum of $..... is presently available for payment and allotted to this contract. It is anticipated that from time to time additional funds will be allotted to this contract in accordance with the following schedule until the total price of said items is allotted.

(b) The Contractor agrees to perform or have performed work on said items up to the point at which, in the event of termination of this contract pursuant to the clause hereof entitled "Termination for Convenience of the Government," the total amount payable by the Government, (including amounts payable in respect of subcontracts and settlement costs) pursuant to paragraph (e) thereof, would in the exercise of reasonable judgment by the Contractor approximate the total amount at the time allotted to the contract. The Contractor shall not be obligated to continue performance of the work beyond such point. The Government shall not be obligated in any event to pay or reimburse the Contractor in excess of the amount from time to time allotted to the contract, anything to the contrary in the clause hereof entitled "Termination for Convenience of the Government" notwithstanding.

(c) It is contemplated that funds presently allotted to this contract will cover the work to be performed until ..... In the event funds allotted are considered by the Contractor to be inadequate to cover the work to be performed until the above date, or an agreed date in substitution thereof, the Contractor shall notify the Contracting Officer in writing when within the next thirty (30) days the work will reach a point at which, in the event of termination of this contract pursuant to the clause hereof entitled "Termination for Convenience of the Government," the total amount payable by the Government (including amounts payable in respect of subcontracts and settlement costs) pursuant to paragraph (e) thereof, will approximate eighty-five percent (85%) of the total amount then allotted to the contract. The notice shall state the estimated date when such point will be reached and the estimated amount of additional funds required to continue performance to the above or an agreed substituted date. The Contractor shall, thirty (30) days prior to the date above written or agreed substituted date, advise the Contracting Officer in writing as to the estimated amount of additional funds which will be required for the timely performance of the contract for a further period as may be specified in the contract or otherwise agreed to by the parties If after such latter notification, additional funds are not allotted by the date above written or by an agreed date in substitution thereof, the Contracting Officer will, upon written request of the Contractor, terminate this contract on such date or the date set forth in the request, whichever is later, pursuant to the provisions of the clause of this contract entitled "Termination for Convenience of the Government."

7.304-2

CFR TITLE 41 CHAPTER 18

CLAUSES FOR FIXED-PRICE R&D CONTRACTS

(d) When additional funds are allotted from time to time for continued perfomance of the work under this contract, the parties shall agree on the applicable period of contract performance which shall be covered by such funds. The provisions of paragraphs (b) and (c) above shall apply to such additional allotted funds and substituted date pertaining thereto and the contract amended accordingly.

(e) If the Contractor incurs additional costs, or is delayed in the performance of the work under this contract, solely by reason of the failure of the Government to allot additional funds in amounts sufficient for the timely performance of this contract, and if additional funds are allotted, an equitable adjustment shall be made in the price or prices (including appropriate target, billing and ceiling prices where applicable) of said items or in the time of delivery or both. Failure to agree to any such equitable adjustment hereunder shall be a dispute concerning a question of fact within the meaning of the clause of this contract entitled "Disputes."

(f) The Government may at any time prior to termination, and, with the consent of the Contractor, after notice of termination, allot additional funds for this contract.

(g) The provisions of this clause with respect to termination shall in no way be deemed to limit the rights of the Government under the clause hereof entitled "Default." The provisions of this clause are limited to the work on and allotment of funds for the items set forth in (a) above. This clause shall become inoperative upon the allotment of funds for the total price of said work except for rights and obligations then existing under this clause.

(h) Nothing in this clause shall affect the right of the Government to terminate this contract pursuant to the clause of this contract entitled "Termination for Convenience of the Government."

7.304-52 through 7.304-58 [Reserved]

7.304-59 Price Escalation. The clauses set forth in 7.106 and 7.107 are authorized for use in accordance with the instructions set forth therein.

7.304-60 Incentive Price Revision. The clause set forth in 7.108 is authorized for use in accordance with the instructions set forth therein.

7.304-61 Special Tooling. Where special tooling is to be acquired by the contractor, the clause set forth in 13.704 is authorized for use in accordance with instructions contained therein. 7.350 Short Form Clauses for Fixed-Price Research Contracts With Nonprofit Institutions. Notwithstanding the provisions of 7.302 and 7.303, the short form clauses set forth or referred to in this paragraph 7.350 shall be used in fixed-price contracts for basic or applied research with nonprofit institutions of higher education, or with nonprofit institutions whose primary purpose is the conduct of scientific research, when a short form contract is desired. 7.350-1 Definitions. Insert the clause set forth in 7.103-1.

7.350-2 Payment.

PAYMENT (MARCH 1969)

(a) Payment will be made to the Contractor as set forth in the Schedule upon submission of status reports indicating the portion of the work which has been performed and after acceptance by the Contracting Officer. The status reports shall also contain a concise statement of the work which has been performed.

(b) A prerequisite to final payment is the submission by the Contractor of a statement of the amount of funds expended in the performance of this contract and the furnishing to the Contracting Officer, and his acceptance, of the technical reports and patent reports required by this contract.

(c) Status reports, statements of funds expended, and technical reports required by this contract shall be submitted by the Contractor directly to the Contracting Officer for the purpose of determining the acceptability of such reports and

statements.

7.350-3 Rights in Data. Insert the appropriate clause as prescribed by 9.203.

7.350-4 Government-Furnished Property. In accordance with the requirements of 13.710, insert the clause set forth therein.

7.350-5 Release of Information.

RELEASE OF INFORMATION (SEPTEMBER 1962)

It is the intent of NASA that the useful research information obtained under this contract be published either by NASA or in technical journals. Reports to be published by NASA should be prepared insofar as practicable in accordance with NASA editorial form. Three (3) copies of the manuscript containing research information obtained under this contract shall be furnished to NASA prior to release of the information by formal oral presentation or for publication in a technical journal. Appropriate credits to NASA will be included in any formal oral presentation or published article. Twenty (20) reprints of articles published in journals shall be furnished to NASA.

7.350-6 Security.

NASA PROCUREMENT REGULATION

7.350-6