CONTRACT CLAUSES AND SOLICITATION PROVISIONS

(e) If insurance coverage or other financial protection program approved by the Secretary is reduced, the liability of the Government under this clause shall not be increased by reason of such reduction.

(f) In addition to the Contractor's responsibilities under the "Insurance - Liability to Third Persons" clause of this contract, which are hereby made applicable to claims under this clause, the Contractor shall (i) promptly notify the Contracting Officer of any claim or action against, or of any loss by, the Contractor or any subcontractor which reasonably may be expected to involve indemnification under this clause, (ii) furnish evidence or proof of any claim, loss or damage covered by this clause in the manner and form required by the Government, and (iii) to the extent required by the Government, permit and authorize the Government to direct, control or assist in the settlement or defense of any such claim or action. The cost of insurance (including self insurance), covering a risk defined in this contract as unusually hazardous or nuclear in nature shall not be reimbursed either as a direct or indirect cost except to the extent that such insurance has been required or approved under the "Insurance-Liability to Third Persons" clause hereof.

(g) "Limitation of Cost” / “Limitation of Funds" clauses of this contract do not apply to the Government's obligations under this clause. Such obligations shall be excepted from the release required under the "Allowable Cost" clause of this contract.

(End of clause)

7-403.58 Preference for United States Flag Air Carriers. In accordance with 1-336.1(b), insert the clause in 7-104.95.

7-403.59 Submission of Commercial Freight Bills to the General Services Ad- | ministration for Audit. In accordance with 19-403.2(c), insert the clause in 7-204.61.

7-403.60 Privacy Act. In accordance with 1-327.1, insert the clause in 7-104.96.

7-403.61 Preference for Domestic Specialty Metals. In accordance with 7-104.93, insert the applicable clause therein.

7-404 Additional Clauses. The following clauses shall be inserted in accordance with Departmental procedures when it is desired to cover the subject matter thereof in such contracts.

7-404.1 Changes.

CHANGES (1967 APR)

(a) 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; and

(iii) place of inspection, delivery, or acceptance.

(b) If any such change causes an increase or decrease in the estimated cost of, or the time required for the performance of any part of the work under this contract, whether changed or not changed by any such order, or otherwise affects any other provision of this contract, an equitable adjustment shall be made:

(i) in the estimated cost or delivery schedule, or both;

(ii) in the amount of any fixed fee to be paid to the Contractor; and

(iii) in such other provisions of the contract as may be affected, contract shall be modified in writing accordingly.

Any claim by the Contractor for adjustment under this clause must be asserted within thirty (30) 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

7-404.1

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CONTRACT CLAUSES AND SOLICITATION PROVISIONS

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, except as provided in paragraph (c) below, nothing in this clause shall excuse the Contractor from proceeding with the contract as changed. (c) Notwithstanding the provisions of paragraphs (a) and (b) above, the estimated cost of this contract and, if this contract is incrementally funded, the funds allotted for the performance thereof, shall not be increased or deemed to be increased except by specific written modification of the contract indicating the new contract estimated cost and, if this contract is incrementally funded, the new amount allotted to the contract. Until such modification is made, the Contractor shall not be obligated to continue performance or incur costs beyond the point established in the clause of this contract entitled “Limitation of Cost” or “Limitation of Funds."

(End of clause)

In the foregoing clause, the period of “thirty (30) days” within which any claim for adjustment must be asserted, may be varied in accordance with Departmental procedures. In accordance with 10 U.S.C. 2306(f), prior to the pricing of any change order that is expected to exceed $100,000, 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 contractor to furnish a Certificate of Current Cost or Pricing Data (see 3-807.4) and shall assure that the contract includes or is modified to include a defective pricing data clause (see 7-104.29).

7-404.2 Alterations in Contract. In accordance with 7-105.1(a), insert the clause therein.

7-404.3 Approval of Contract. In accordance with 7-105.2, insert the clause

therein.

7-404.4 Bill of Materials. In accordance with 7-105.6, insert the clause

therein.

7-404.5 Stop Work Orders. The clause in 7-105.3, if modified as prescribed in 7-205.6, is authorized for use under the criteria and in accordance with the instructions in 7-105.3.

7-404.6 Reports of Work.

REPORTS OF WORK (1960 JUL)

(a) The Contractor shall submit reports making full disclosure of all work done and the results thereof, in the manner, at the times, and to the extent set forth in the Schedule; provided that, unless otherwise specified in the Schedule, the Contractor shall submit such reports in triplicate from time to time as requested and upon completion (or earlier termination) of the work. Except as may be otherwise specified in the Schedule, or unless the Contractor is otherwise instructed, the Contractor shall, upon completion (or earlier termination) of the work, deliver any working drawings and specifications of any prototypes as may have been developed.

(b) If the Contractor becomes unable to complete the contract work and to deliver at the time specified in the Schedule because of technical difficulties, notwithstanding the exercise of good faith and diligent efforts in performance of the work, he shall give the Contracting Officer written notice of the anticipated delays with reasons therefor not less than forty-five (45) days before the completion date specified in the Schedule or within such time as the Contracting Officer deems sufficient. When notice is so required, the Contracting Officer may, in his discretion, extend the time specified in the Schedule for such period as he deems advisable.

(End of clause)

7-404.6

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In the above clause, the words "Task Order" or other appropriate designation may be substituted for the word “Schedule," as appropriate. Subparagraph (a) may be used without subparagraph (b). The last sentence of subparagraph (b) may be omitted.

7-404.7 Title and Risk of Loss. In accordance with 7-103.6, insert the clause

therein.

7-404.8 Term of Performance or Delivery Date. Insert a clause in accordance with 1-305.5. Clauses in 7-104.92 shall be used as a guide.

7-404.9 Warranty of Technical Data. In accordance with 1-324.6, insert the clause in 7-104.9(o).

7-404.9

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CONTRACT CLAUSES AND SOLICITATION PROVISIONS

Part 5-Personal Services Contracts

7-500 Scope of Part. This Part sets forth uniform contract clauses for use in personal services contracts referred to in 7-502.

7-501 Reserved.

7-502 Applicability. As used throughout this Part, the term "personal services contract" applies only to a contract entered into with an individual, other than an alien scientist, for personal services to be performed by that individual under Government supervision and paid for on a time basis. It does not apply to contracts with firms or organizations.

7-503 Required Clauses. The following clauses shall be inserted in all personal services contracts, except as indicated:

7-503.1 Definitions. Insert the contract clause in 7-103.1, omitting subparagraph (c).

7-503.2 Payments.

PAYMENTS (1958 JAN)

Payment for the services performed by the Contractor, as set forth in the Schedule of this contract, shall be made at the rates prescribed, upon the submission by the Contractor of proper invoices or time statements to the office or officer designated herein and at the time provided for herein. In addition to the foregoing the Contractor shall be paid (i) a per diem rate in lieu of subsistence for each day the Contractor is in a travel status away from his home or regular place of employment in accordance with Standardized Government Travel Regulations as authorized in appropriate Travel Orders; and (ii) such other transportation expenses as may be provided for in the Schedule.

7-503.3 Assignment of Claims.

ASSIGNMENT OF CLAIMS (1953 JAN)

(End of clause)

No claim arising under this contract shall be transferred or assigned by the Contractor.

(End of clause)

7-503.4 Disputes. In accordance with 7-103.12, insert the clause therein. 7-503.5 Officials Not To Benefit. Insert the contract clause in 7-103.19, omitting the final phrase which begins, “but this provision ***.”

7-503.6 Covenant Against Contingent Fees. Insert the contract clause in 7-103.20.

7-503.7 Termination.

TERMINATION (1953 JAN)

This contract may be terminated by the Government at any time within the period of its duration upon not less than 15 days' written notice by the Contracting Officer to the Contractor. The Contractor, with the written consent of the Contracting Officer, may terminate this contract upon not less than 15 days' written notice to the Contracting Officer, and the consent of the Contracting Officer shall not unreasonably be withheld.

(End of clause)

7-503.7

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7-503.8 Approval of Contract.

APPROVAL OF CONTRACT (1953 JAN)

This contract shall be subject to the written approval of the Secretary or his duly authorized representative and shall not be binding until so approved.

(End of clause)

7-503.9 Patents. In accordance with 9–108, insert the following clause.

PATENT RIGHTS (1975 AUG)

(a) For the purpose of determining the rights of the Government and the Contractor in and to inventions, the Contractor agrees to be bound by all provisions of Executive Order 10096, dated 23 January 1950, and any orders, rules, regulations, or the like issued thereunder.

(b) The Contractor shall: (i) make written disclosure promptly to the Contracting Officer of all inventions of the Contractor which are conceived or first actually reduced to practice during the term of this contract, and sign and execute all papers necessary for conveying to the Government the right to which the Government is entitled in accordance with the determination made under the provisions of Executive Order 10096, or (ii) certify to the Contracting Officer that, to the best of the Contractor's knowledge and belief, no inventions have been conceived or first actually reduced to practice during the term of this contract.

(End of clause)

7-503.10 Pricing of Adjustments. Insert the clause in 7-103.26. 7-504 Clauses To Be Used When Applicable.

7-504.1 Military Security Requirements.

(a) Except as provided in (b) below, insert the Military Security Requirements clause in accordance with 7-104.12.

(b) In any cost reimbursement type contract, insert the Military Security Requirements clause in accordance with 7-204.12.

7-504.2 Rights in Data. In accordance with 7-104.9, insert the appropriate clause, or clauses, therein.

7-504.3 Interest. In accordance with E-620, insert the clause in 7-104.39. 7-504.4 Government Property.

(a) Fixed Price Contracts. Insert the appropriate clause or clauses in 7-104.24.

(b) Cost Reimbursement Contracts. Insert the clause in 7–203.21.

7-504.5 Order of Precedence. In accordance with 3–501(b)Sec.C(xxxi), insert the clause in 7-2003.41.

7-504.6 United States Products and Services (Balance of Payments Program). In accordance with Section VI, Part 8, insert the clause in 7-2003.53.

7-504.7 Identification of Expenditures in the United States. In accordance with 6-807, insert the clause in 7-104.58.

7-504.8 Use of Excess and Near Excess Currency. In accordance with 6–1110, insert the clause in 7-104.66.

7-504.9 Production Progress Report. In accordance with 25-202, insert the clause in 7-104.51.

7-504.10 Examination of Records by Comptroller General. In accordance with 7-104.15, insert the clause therein.

7-504.11 Management Systems Requirements. In accordance with 16–827.1, insert the clause in 7-104.50.

7-504.12 Payment of Interest on Contractors' Claims. In accordance with 1-333, insert the clause in 7-104.82.

7-504.12

ARMED SERVICES PROCUREMENT REGULATION