delivery of such list to the Contractor by the Department, the Department shall furnish to the Contractor a written order, signed by the Department's authorized representative, covering the items and quantities set forth on such list, which shall obligate the Department for the procurement from the Contractor of the items and quantities so selected. Upon receipt of such order, the Contractor shall be obligated to furnish the items and quantities of spare parts listed thereon under the provisions of the contract relating to spare parts, and the Contractor shall proceed as necessary to fabricate or procure the items selected, provided that such order may be revised or superseded as hereinafter provided in this document.

"The Contractor shall maintain a production list by revisions until the provisioning meeting is held and the provisioning parts breakdown is established." (3) By inserting the words "for parts peculiar to GM Production" immediately after the words "production lists for vendor items" appearing in the first line of paragraph 3 (b) (1), Part II.

(4) By inserting the words "if and as directed by the Department" immediately after the words "spare parts list" in line 1 of paragraph 3 (b) (2), Part II.

(5) By inserting the words "which either the Contractor or Republic Aviation Corporation are required to furnish and" immediately after the word "lists" in line 2 of paragraph 3 (b) (3), Part II.

(6) By deleting Sections (a), (b), (c) and (d), paragraph (1), Part III, and inserting the following:

"Republic Aviation Corporation shall be responsible for the preparation and submittal of all preprovisioning technical data except as provided by Part II, paragraph 3 (b) (1) and shall prepare and maintain in an up-to-date status throughout the life of the contract provisioning parts breakdown for use by the Contractor and Headquarters AMC. The Provisioning parts breakdown shall be completed and received by the Contractor twenty-one (21) days prior to the time the provisioning meeting convenes which shall be six (6) months prior to delivery of the first F-84F aircraft under this contract; and the provisioning parts breakdown at that time, shall be representative on the detailed design releases for the model F-84F aircraft."

(7) By inserting the words "which can be furnished and delivered prior to the scheduled delivery of the last F-84F type aircraft to be delivered under its Air Force contracts" after the words "Spare parts" in the 4th line of paragraph 2 (a) of Part V.

(8) Part V, paragraph 4, is amended by adding after the words "planned support program" in line 4 and "under the contract" in line 11 the following words: "provided, however, that such spare parts can be furnished prior to the scheduled delivery of the last F-84F type aircraft to be delivered under its Air Force contracts."

(9) By adding the words "provided, however, that such spare parts can be furnished prior to the scheduled delivery of the last F-84F type aircraft to be delivered under its Air Force contracts." after the words "such additional spare parts" in line 5 of paragraph 5, Part V.

(10) By amending paragraph (1) of Part VIII to read as follows:

"1. Preservation, packaging, packing and marking shall be in accordance with AMC Form 163 provided, however, that Republic Aviation Corporation shall furnish duplicates of their presently established detailed packaging requirements process cards to the Contractor to cover common detailed packaging requirements for spares and shall also furnish general procedure and administrative details of the packaging program."

(c) Quality Control System.-The Contractor's Quality Control System shall conform to the provisioning of Mil-Q-5923A dated September 14, 1951, unless otherwise specified herein.

(d) Specification.-The Government specifications listed herein or in any document incorporated herein are incorporated by reference and shall apply to this contract and shall be deemed to include all specifications supplementary to or superseding specifications so referred to, to the extent that such supplementary or superseding specifications are in effect on March 1, 1951, if the Contractor was furnished or otherwise notified of the existence of such supplementary or superseding specifications.

(e) Late Delivery of Data.-It is understood that the efficient use by the Government of the supplies called for hereunder requires that the data called for hereunder be delivered not later than the time or respective times herein

specified. If such data is not delivered at said time or times, the Government may at its election, so long as such data remains undelivered, unless the delay in delivery thereof is an excusable delay as such term is defined in Clause hereof entitled "Default", withhold payment to the Contractor for any of the supplies theretofore delivered to the Government, refuse approval of the Contractor's vouchers and refuse to accept further deliveries hereunder from the Contractor or take any other action authorized by law or regulation now or hereinafter in effect including termination of this contract for default to the extent and in the manner authorized by the Clause hereof entitled "Default" and may take any or all of the foregoing actions separately or in combination.

(f) Facilities.-It is recognized that the commitments of the Contractor hereunder are contingent upon the use of facilities, in the amount of $20,380,000.00, authorized under special Facilities Contract AF 33 (038)-18504 on a no-charge basis. In the event that rental is required for the use of such facilities or rental for Government-owned facilities used in production of the aircraft called for herein not covered by said facilities contract, is increased or decreased, the airplane prices shall be adjusted accordingly to eliminate or compensate such rental increase or decrease.

(g) Engineering Services.-Engineering services and assistance required by the Contractor through December 1952 or such further time as the Government may determine from time to time shall be procured from Republic Aviation Corporation by the Government under a separate Supplies Contract with Republic and shall be delivered by the Government to the Contractor to the extent deemed necessary for the Contractor to deliver to the Government F-84F aircraft and spare parts in accordance with delivery schedules established herein. (h) Government Loaned Property.-The Government may loan to the Contractor for use in the performance of this contract, in accordance with the provisions of a Blanket Bailment Agreement, such Government-owned Property as in the opinion of the Contracting Officer will facilitate the expeditious completion of this contract. However, this shall not be construed as effecting the bailment of such property nor as a commitment that such loan will be made, except as to one (1) F-84F airplane which shall be loaned to the Contractor five (5) months prior to the delivery date of the first airplane called for in Item 1. (i) The Contractor's ability to meet the delivery schedule will depend upon the right to use the Fairfax Municipal Airport as required to test the airplanes. The Contractor will not be responsible for compliance with the delivery schedule during any periods in which the airport proves inadequate or unavailable for the purpose.

(j) Production Acceleration Insurance Program.-In the performance of this contract the Contractor shall fabricate and/or acquire tooling (dies, jigs, fixtures, etc.) to accomplish a production rate of 50 airplanes per month, however, such tooling shall be of the design and durability to accomodate a production rate of 236 airplanes per month for a minium period of two (2) years. But rates referred to herein contemplate production on a two-shift, 8-hour, 5-day work-week. It is recognized that the Item prices set forth in paragraph (a) above contain a factor to cover the cost of said tooling. Such tooling shall be subject to the provisions of Clause 44 hereof entitled "Special Tooling".

PART II. DELIVERY

(a) The Contractor shall deliver to the Government the articles and supplies in Part I in accordance with the following schedule:

PART III. PRESERVATION, PACKING, PACKAGING, AND MARKING Preservation, packing, packaging and marking shall be in accordance with

Exhibit "2" attached hereto.

Clause 8 is hereby deleted and the following clause substituted in lieu thereof: "8. Assignment of claims-(a) Pursuant to the provisions of the Assignment of Claims Act of 1940 (31 U. S. Code 203, 41 U. S. Code 15), if this contract provides for payments aggregatin $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 institution, 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, payments to an assignee of any moneys due or to become due under this contract shall not, to the extent provided in the said Act, as amended, be subject to reduction or set-off. (The preceding sentence applies only if this contract is with the military department.)

(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.

As used throughout this contract, the following terms shall have the meanings set forth below:

(a) The term "Secretary" means the Secretary, the Under Secretary, or any Assistant Secretary of the Department, and the head of any assistant head of the executive agency; and the term "his duly authorized representative" means any person or persons or board (other than the Contracting Officer) authorized to act for the Secretary.

(b) The term "Contracting Officer" means the person executing this contract on behalf of the Government, and any other officer or civilian employee who is a properly designated Contracting Officer; and the term includes, except as otherwise provided in this contract, the authorized representative of a Contracting Officer acting within the limits of his authority.

(c) Except as otherwise provided in this contract, the term "subcontracts" includes purchase orders under this contract.

2. Changes

The Contracting Officer may at any time, by a written order, and without notice to the sureties, make changes, within the general scope of this contract, in any one or more of the following: (i) drawings, designs, or specifications, where the supplies to be furnished are to be specially manufactured for the Government in accordance therewith; (ii) method of shipment or packing; and (iii) place of delivery. If any such change causes an increase or decrease in the cost of, or the time required for, performance of this contract, an equitable adjustment shall be made in the contract price or delivery schedule, or both, and the contract shall be modified in writing accordingly. Any claim by the Contractor for adjustment under this clause must be asserted within 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 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.

3. Extras

Except as otherwise provided in this contract, no payment for extras shall be made unless such extras and the price therefor have been authorized in writing by the Contracting Officer.

4. Variation in quantity

No variation in the quantity of any item called for by this contract will be accepted unless such variation has been caused by conditions of loading, shipping, or packing, or allowances in manufacturing processes, and then only to the extent, if any, specified elsewhere in this contract.

5. Inspection

(a) All supplies (which term throughout this clause includes without limitation raw materials, components, intermediate assemblies, and end products) shall be subject to inspection and test by the Government, to the extent practicable at all times and places including the period of manufacture, and in any event prior to final acceptance.

(b) In case any supplies or lots of supplies are defective in material or workmanship or otherwise not in conformity with the requirements of this contract, the Government shall have the right either to reject them (with or without instructions as to their disposition) or to require their correction. Supplies or lots of supplies which have been rejected or required to be corrected shall be removed or corrected in place, as requested by the Contracting Officer, by and at the expense of the Contractor promptly after notice, and shall not again be tendered for acceptance unless the former tender and either the rejection or requirement of correction is disclosed. If the Contractor fails promptly to remove such supplies or lots of supplies, when requested by the Contracting Officer, and to proceed promptly with the replacement or correction thereof, the Government either (i) may by contract or otherwise replace or correct such supplies and charge to the Contractor the cost occasioned the Government thereby, or (ii) may terminate this contract for default as provided in the clause of this contract entitled "Default." Unless the Contractor elects to correct or replace the supplies which the Government has a right to reject and is able to make such correction or replacement within the required delivery schedule, the Contracting Officer may require the delivery of such supplies at a reduction in price which is equitable under the circumstances. Failure to agree to such reduction of price shall be a dispute concerning a question of fact within the meaning of the clause of this contract entitled "Disputes."

(c) If any inspection or test is made by the Government on the premises of the Contractor or a subcontractor, the Contractor without additional charge shall provide all reasonable facilities and assistance for the safety and convenience of the Government inspectors in the performance of their duties. If Government inspection or test is made at a point other than the premises of the Contractor or a subcontractor, it shall be at the expense of the Government: Provided, That in case of rejection the Government shall not be liable for any reduction in value of samples used in connection with such inspection or test. All inspections and tests by the Government shall be performed in such a manner as not to unduly delay the work. The Government reserves the right to charge to the Contractor any additional cost of Government inspection and test when supplies are not ready at the time such inspection and test is requesed by the Contractor. Final acceptance or rejection of the supplies shall be made as promptly as practicable after delivery, except as otherwise provided in this contract; but failure to inspect and accept or reject supplies shall neither relieve the Contractor from responsibility for such supplies as are not in accordance with the contract requirements nor impose liability on the Government therefor. (d) The inspection and test by the Government of any supplies or lots thereof does not relieve the Contractor from any responsibility regarding defects or other failures to meet the contract requirements which may be discovered prior to final acceptance. Except as otherwise provided in this contract, final acceptance shall be conclusive except as regards latent defects, fraud, or such gross mistakes as amount to fraud.

(e) The Contractor shall provide and maintain an inspection system acceptable to the Government covering the supplies hereunder. Records of all inspection work by the Contractor shall be kept complete and available to the Government during the performance of this contract and for such longer period as may be specified elsewhere in this contract.

6. Responsibility for supplies

Except as otherwise provided in this contract, (i) the Contractor shall be responsible for the supplies covered by this contract until they are delivered at the designated delivery point, regardless of the point of inspection; and (ii) the Contractor shall bear all risks as to rejected supplies after notice of rejection.

7. Payments

The contractor shall be paid, upon the submission of properly certified invoices or vouchers, the prices stipulated herein for supplies delivered and accepted or services rendered and accepted, less deductions, if any, as herein provided. Unless otherwise specified, payment will be made on partial deliveries accepted by the Government when the amount due on such deliveries so warrants; or, when requested by the Contractor, payment for accepted partial deliveries shall be made whenever such payment would equal or exceed either $1,000 or 50 percent of the total amount of this contract.

8. Assignment of claims

(a) Pursuant to the provisions of the Assignment of Claims Act of 1940 (31 U. S. Code 208, 41 U. S. Code 15), if this contract provides for payments 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 institution, 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 provision of this contract, payment to an assignee of any claim under this contract shall not be subject to reduction or set-off for any indebtedness of the Contractor to the Government arising independently of this contract. (The preceding sentence applies only if this contract is with a military department.)

(b) In no event shall copies of this contract or of 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. 9. Additional bond security

If any surety upon any bond furnished in connection with this contract becomes unacceptable to the Government, or if any such surety fails to furnish reports as to his financial condition from time to time as requested by the Government, the Contractor shall promptly furnish such additional security as may be required from time to time to protect the interests of the Government and of persons supplying labor or materials in the prosecution of the work contemplated by this contract.

10 Federal, State, and local taxes

(a) Definitions.-As used throughout this clause, the following terms shall have the meanings set forth below:

(i) The term "direct tax” means any tax or duty directly applicable to the completed supplies or services covered by this contract, or any other tax or duty from which the Contractor of this transaction is exempt. It includes any tax or duty directly applicable to the importation, production, processing, manufacture, construction, sale, or use of such supplies or services; it also includes any tax levied on, with respect to, or measured by sales, receipts from sales, or use of the supplies or services covered by this contract. The term does not include transportation taxes, unemployment compensation taxes, social security taxes, income taxes, excess-profits taxes, capital stock taxes, property taxes, and such other taxes as are not within the definition of the term "direct tax" as set forth above in this paragraph.

(ii) The term "contract date" means the effective date of this contract if it is a negotiated contract or the date set for the opening of bids if it is a contract entered into as a result of formal advertising.

(b) Federal Taxes.-Except as may be otherwise provided in this contract, the contract price includes all applicable Federal taxes in effect on the contract date.