not less than one and one-half times the basic rate of pay. For each violation of requirement of this article a penalty of $5.00 shall be imposed upon the contractor for each laborer or mechanic for every calendar day which such employee is required or permitted to labor more than eight hours upon said work without receiving compensation computed in accordance with this article, and all penalties thus imposed shall be withheld for the use and benefit of the Government; provided, that this stipulation shall be subject in all respects to the exceptions and provisions of the United States Code Title 40, sections 321, 324, 325, 325 (a), and 326, relating to hours of labor and compensation for overtime.

(b) In the performance of this contract the contractor shall not employ any person undergoing sentence of imprisonment at hard labor.

SPECIAL TERMS, CONDITIONS AND SPECIFICATIONS

1. Deletion of general conditions.-Articles 2, 5, 7, 9, 10, 12, 15, and 16 of the General Conditions appearing on GSA Form 58a hereof are deleted in their entirety prior to the execution of this contract.

2. Source of materials.—The refined copper to be furnished pursuant to this contract shall be all electrolytic copper returnable to Contractor from smelting and refining the entire production of copper concentrates at its mill at Allanby, British Columbia, beginning April 1, 1953, and to be completed by December 31, 1954, estimated minimum 19,950 tons and maximum 24,000 tons. Copper concentrates shall be refined to comply with the required specifications at the refinery of the American Smelting and Refining Company, Tacoma, Washington.

3. Definitions.-A. The term "Government" as used herein shall mean the United States of America.

B. The term "Contracting Officer" as used herein shall mean the official of the Emergency Procurement Service executing this contract in behalf of the United States of America and shall include his duly appointed successor or his authorized representative.

C. The term "ton" wherever used herein shall mean 2,000 pounds avoirdupois. D. The term "refinery" as used herein shall mean the refinery of American Smelting & Refining Company located at Tacoma, Washington.

E. The term "A. S. T. M." as used herein shall mean the American Society for Testing Materials.

4. Chemical and physical requirements.—The copper to be furnished under this contract shall conform to the following chemical and physical requirements of National Stockpile Specification P-16-R, dated May 28, 1952.

Chemical and Physical Requirements: The electrolytic wire bar copper shall conform to the requirements of Specification B-5 of the American Society for Testing Materials, latest revision as of the date of execution of this contract by the Government. All wire bars shall weigh approximately 250 pounds each.

The electrolytic cathode copper shall conform to the requirements of Specification B-115 of the American Society for Testing Materials, latest revision as of the date of execution of this contract by the Government, and contain a minimum of 99.90% copper, silver being counted as copper. Cathodes shall be of any size usual with the refinery, but not less than 30 by 30 inches, and all cathodes supplied shall be of the same nominal size.

5. Packaging and marking.-A. The electrolytic copper shall be loaded loose in clean sound railroad cars in accordance with prevailing commercial practice. B. Electrolytic copper wire bars shall be secured in railroad box cars in accordance with "Methods for Loading, Bracing, and Blocking Carload Shipments of Pig Lead, Copper Bars and Similar Commodities in Closed Cars," Pamphlet No. 37, Association of American Railroads, except that steel strapping shall not be required.

An appropriate identifying document shall accompany each shipment and shall include the Government contract number, name of product, brand, type, number of pieces, weight and name of supplier.

6. Price. The unit prices to be paid for the copper pursuant to this contract for delivery as set forth in Article 12 of these Special Terms and Conditions shall be $0.30 per pound for electrolytic copper wire bars, less an allowance of $0.00125 per pound for electrolytic copper cathodes. See Article 7 hereof pertaining to Duty.

7. Duty. All United States import taxes or duty, if any, on the refined copper or on the copper concentrates from which the refined copper is returned, shall be for the account of the Government, but the Contractor will be responsible for any taxes and/or duty imposed on materials reclaimed from the copper concen

trates (other than the copper sold to the Government) or concentrates other than the concentrates required in the refinement of the material purchased hereunder. The Contractor shall arrange to make such United States custom entries and to maintain such records as may be required by the United States Bureau of Customs and by this Service which will enable this Service to certify the free entries of the refined copper metal purchased for the National Stockpile.

8. Inspection.-The Contractor shall notify the Chief, Inspection Division General Services Administration Regional Office for the area (of which the Contractor will be subsequently informed) at least ten (10) days prior to the anticipated availability of each delivery, and a Government Inspector or other Government designated representative shall inspect each such delivery at the refinery at any reasonable time between the date of notification and date of delivery.

9. Sampling and analyzing.-A. Any claims, investigation of claims, and settlement of claims with respect to metal content and resistivity of the material shall be made in accordance with A. S. T. M. Specifications B-115 and B-5 as published in A. S. T. M. Standards publication dated September 1946, covering cathodes and wirebars respectively.

B. With respect to wirebars, sampling and examining for physical defects shall be performed at the refinery by a sampler to be designated by the Government, who shall be accorded the Contractor's full cooperation.

C. For the purpose of sampling and analysis, the size of a lot shall be agreed between the Government's representative and the Works Manager of the refinery, but shall not be greater than a furnace charge (approximately 360 tons) and not less than fifty tons.

D. Whenever possible, the Government representative shall be present during the pouring of a furnace charge from which deliveries are to be made hereunder. There he shall witness the selection of three wirebars taken at intervals during the pour from which samples for chemical analysis will subsequently be taken. He shall also witness the taking of a sample from the furnace ladle and pouring of the test billet from which a standard wire will ultimately be drawn from resistivity test.

E. In the event that the Government representative is unable to be present during any pour from which a lot is to be delivered hereunder, then he shall be entitled to select three wirebars from each lot of fifty tons or more which shall provide the metal necessary for chemical analysis and resistivity testing.

F. Samples for chemical analysis shall be secured from the three bars obtained from each lot as described above by drilling five holes 1⁄2 inch in diameter at points equally spaced between the ends of the bars. The drillings so obtained shall be thoroughly mixed to make up the sample. The sample bars shall revert to the contractor and will not be accepted for shipment against this contract or paid for by the Government.

G. The billet prepared from each lot as provided for above shall be swedged out into a rod which shall be drawn into a sample wire for resistivity testing. H. Each sample shall be divided into three equal parts, one to be retained by the Contractor and two parts accepted for the Government, one of which shall be forwarded for Government analysis or testing and the other sealed and held by the Government as an umpire sample for use if necesary.

I. Analysis and testing of samples shall be in accordance with A. S. T. M. Specification B-5 (1946 publication as above).

J. One cathode shall be selected from each ten thousand pounds or fraction thereof for sampling, analysing and testing in accordance with the provisions of A. S. T. M. Specification B-115 (1946 publication as above).

K. The Government shall reject all material which does not comply with the contract requirements, and it shall be reimbursed by the Contractor for all costs incurred by the Government in connection with rejected material. The Contractor shall replace, within sixty (60) days thereafter, all material rejected with material meeting the contract requirements.

10. Weighing.-Refiner's certified weight certificates shall be accepted as to quantity when the Government Inspector or other Government designated repre sentative attests to the accuracy of such weights. All cost of weighing, if any, shall be for the Contractor's account.

11. Shipment and expediting.-The Contractor, on forms to be furnished by the Government, shall notify the Director, Storage and Transportation Division, Emergency Procurement Service, not less than ten (10) days prior to anticipated availability of material for shipment, stating the point at which such material is available for shipment, and he shall act as forwarding agent, effecting shipment and the distribution of documents in accordance with shipping instructions issued

by the said Storage and Transportation Division. The Government representative shall be accorded full cooperation of the Contractor in connection with the expediting and shipping activities under this contract.

12. Delivery.-A. Delivery shall be "F. O. B. Point of Origin", Point of Origin shall be Common Carrier's Conveyance, at refinery, Tacoma, Washington.

B. Terms of Delivery "F. O. B. Point of Origin", to which this contract is subject means:

(a) On board the indicated type of conveyance of carrier (or of Government where the contract so indicates), free of expense to the Government, in the city specified, in which the contractor's plant, store, warehouse, or other facility from which the shipment wil be made is located, and at which the principal transportation service (as distinguished from switching, local drayage, or other terminal service at the point of origin) begins. If the contractor's plant, store, warehouse, or other facility is not located within the "limits of a city" as herein defined, the principal transportation service shall be understood to begin at the carrier's station or depot at which bills of lading are receipted by the carrier's agent. "Limits of a City" shall be understood to mean the free switching limits or free pickup limits of the city or municipality of origin as defined in the applicable freight tariff, or, if there is no applicable freight tariff with such definition, the comercial zone area as prescribed by the Interstate Commerce Commission pursuant to Sections 202 (c) and 203 (b) (8) of the Interstate Commerce Act, as amended (49 U. S. C. 302 (c) and 303 (b) (8)), or, in the absence of such prescribed zone areas, the corporate limits or geographic limits of the local Government entity, as determined by law or local custom;

(b) That it shall be the responsibility of the contractor to do the following: (1) Pack and mark in such manner as to afford adequate protection against normal transportation hazards and secure prompt delivery to the consignee, and comply with all packing and marking specifications of the contract;

(2) Where carload rail shipments are involved, order cars not in excess of the length, capacity, and number necessary to accommodate shipments, and to do everything possible to see that cars are furnished;

(3) Properly load, stow, block, and brace goods on, or in, conveyance of carrier, in the case of carload or truckload shipments, or deliver shipments of less than carload or less than truckload in good order to carriers for loading;

(4) Fill in blank spaces on Government bills of lading which are supplied by ordering agencies, or, when Government bills of lading are not supplied, prepare commercial collect bills of lading or other transportation receipts (endorsed "To be converted to Government bill of lading at destination") to show

(i) description of shipment in freight classification nomenclature (not trade or popular name, if these are different from freight classification description) under which lowest freight rates are applicable,

(ii) length and capacity of cars ordered and furnished in the case of carload shipments,

(iii) other information not inserted by the ordering agency, which is required to effect prompt delivery to consignee at minimum cost, such as name and postal address of consignee, destination, routing, etc., (iv) signature thereon of carrier's agent, receipting for shipment in good order;

(5) Distribute the several parts of bill of lading, or other transportation receipts, as directed by the ordering agency;

(6) Pay and bear all charges for switching or local drayage service performed at point of origin, which are not borne by the common carrier receipting for the shipment;

(7) Be responsible for any loss or damage to property being shipped occurring before such property is loaded, or delivered to carrier, i. e., before carrier's receipt is obtained, as the case may be, as provided in (b) (3) above, and carrier's receipt is obtained as provided in (b) (4) (iv) above; (8) Be responsible for all damages (including accessorial charges) resulting from negligence or error in packing, marking, and delivering shipment to carrier, and, when loaded by contractor, in loading, stowing, blocking or bracing of shipment on or in carrier's conveyance, or resulting from negligence or error in the completion or distribution of Government bills of lading or other transportation receipts of documents.

13. Payment.-Payment at the prices herein provided for all deliveries accepted under the contract shall be made in terms of United States currency within ten (10) days after receipt by the Government from the Contractor's properly certified invoices, showing marks, pieces and weights, accompanied by the certified weight certificate of the Contractor.

14. Taxes and charges.-All Canadian taxes, general or local, now or hereafter imposed, in respect to the material sold hereunder or the production, traction, processing, sale, exportation, proceeds or value thereof, shall be for the account of the Contractor.

15. Warranty.-The Contractor warrants that the material sold hereunder shall be free and clean of all claims of third parties. The Contractor shall indemnify, hold harmless and defend the Government against all claims and lemands with respect to such material.

16. Assignment of claims.-(a) Pursuant to the provisions of the Assignment of Claims Act of 1940, as amended (31 U. S. Code 203) (41 U. S. Code 15), if this contract provides for payment aggregating $1,000 or more, claims for moneys due or to become due the Contractor from the Government under this contract may be assigned to a bank, trust company, or other financing institu tion, including any Federal lending agency, and may thereafter be further assigned and reassigned to any such institution. Any such assignment or reassignment shall cover all amounts payable under this contract and not already paid, and shall not be made to more than one party, except that any such assignment or reassignment, may be made to one party as agent or trustee for two or more parties participating in such financing. Notwithstanding any other provisions of this contract, payment to an assignee or any moneys due or to become due under this contract shall not, to the extent provided in said Act, as amended, be subject to reduction or set-off.

(b) In no event shall copies of this contract or any plans, specifications, or other similar documents relating to work under this contract, if marked "Top Secret", "Secret", "Confidential", or "Restricted", be furnished to any assignee of any claim arising under this contract or to any other person not entitled to receive the same: Provided, that a copy of any part or all of this contract so marked may be furnished, or any information contained therein may be disclosed, to such assignee upon the prior written authorization of the Contracting Officer.

17. Force majeure.-A. Except as hereinafter provided in sub-paragraph "b" of this Article, in the event the Contractor refuses or fails to make deliveries of the material conforming to the specifications within the time specified or any extension thereof, or to perform faithfully any conditions of the contract, the contracting officer may serve notice to the Contractor in writing of the default and if the Contractor does not rectify the default within sixty (60) days, the contracting officer, without prejudice to other rights resulting from breach of contract conditions, may, by written notice, terminate the right of the Contractor to proceed with any or all remaining deliveries under the contract.

B. In the event of any strike, lock-out, difference of workmen, accidents, fire, explosion, floods, mobilization, war (whether declared or undeclared), act of any belligerent in any such war, riot, rebellion, revolution, blockade; requirements, regulations, restriction or other act of any government, whether legal or otherwise; the elements, power shortages, transportation failures. shortage of railway cars, or any other cause beyond the reasonable control of the Contractor, whether or not of the nature or character hereinbefore specifically enumerated, which delays or interferes with the performance of the contract, performance under the contract shall be suspended in whole or in part until such cause ceases to exist. Upon the suspension or rectification of cause or causes delaying performance hereunder, each date, subsequent to the happening or happenings of such cause or causes specified in this contract for the performance of any of the terms or conditions hereof shall be extended by the number of days during which performance was so delayed and, except as so entended, this contract shall be performed in the same manner and to the same extent as if performance hereunder had not been suspended; provided, however, that nothing in this paragraph 17h shall extend beyond June 30, 1955, the periods provided for in paragraph 12 "Delivery" within which the Contractor is obligated to complete delivery.

C. Unless the Contractor shall furnish the Government with written notice of the nature and extent of any force majeure condition referred to in paragraph “b” hereof, which is claimed to exist, within a reasonable time, after the hap

pening thereof, the terms and conditions of said paragraph "b" shall not become operative with respect thereto.

18. Disputes.-Except as otherwise specifically provided in this contract, all questions of fact involved in disputes arising under the contract shall be decided by the Contracting officer, subject to written appeal by the Contractor within thirty (30) days, to the Administrator of General Services Administration or his duly authorized representative. In the meantime, the Contractor shall diligently proceed with performance. Nothing in this clause, however, shall be deemed to preclude the Contractor from any and all rights that it may have at law in the event that it cannot agree with the decision of the Administrator of General Services Administration or his duly authorized representative upon any question of law or fact.

19. Examination of records.-A. The Contractor agrees that the Comptroller General of the United States or any of his duly authorized representatives shall. until the expiration of three years after final payment under this contract, have access to and the right to examine any directly pertinent books, documents, papers, and records of the Contractor involving transactions related to this contract. B. The Contractor further agrees to include the following provisions, with appropriate insertions, in all his subcontracts hereunder.

"(Name of Subcontractor) agrees that the Comptroller General of the United States or any of his duly authorized representatives shall, until the expiration of three years after final payment under prime contract GSOOP-3906 (SCM) between the United States of America and the Granby Consolidated Mining, Smelting and Power Company, Limited, have access to and the right to examine any directly pertinent books, documents, papers and records of (Name of Subcontractor) involving transactions related to this contract."

20. Notices. All notices and communications required in connection with the contract shall either be in writing or by telegraph, and if intended for the Government shall be sent to it at 7th and D Streets, SW., Washington, D. C., and if intended for the Contractor shall be sent to it at Vancouver, British Columbia, Canada, or to such other address as either party may hereafter specify to the other in writing.

21. Certification of invoices. Each invoice shall have printed, stamped or typed thereon the following certification, to be signed by the Contractor's duly authorized representative, with his title indicated:

"I certify that the above bill is correct and just; that payment therefor has not been received."

22. Distribution of documents.-Documents shall be distributed in accordance with the attached form headed "Distribution of Documents" which is made a part hereof.

DISTRIBUTION OF DOCUMENTS ON MATERIALS

(Other than of Mexican and Canadian origin)

The Contractor shall furnish documents in the quantities specified, and make distribution as follows: A. To be mailed to Examination Branch, Accounts and Reports Division, General Services Administration, Seventh and D Streets SW., Washington 25, D. C.

1. Original and two (2) copies of properly certified invoice.

2. Two (2) certified copies of weight certificates when required by this contract. In the event weighing is done by another contractor at the expense of the U. S. Government, furnish two (2) additional certified copies. 3. Other documents as required by this contract or otherwise requested by specific shipping instructions.

B. To be mailed to Director, Storage and Transportation Division, Emergency Procurement Service, General Services Administration, 7th and D Streets SW., Washington 25, D. C.

1. Application for shipping instructions on forms to be supplied by the Government.

2. One (1) certified copy of weight certificates.

3. When delivery terms are F. O. B. Vessel, or F. A. S. a foreign port: C. I. F., F. O. B. dock or cars, a United States Port, two (2) Ocean Bills.