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CONTRACT CLAUSES AND SOLICITATION PROVISIONS

United States. Identification shall consist of stating the full amount of the payment requested, subdivided into the following categories:

1. United States end products-Expenditures for material and equipment manufactured

or produced in the United States, excluding transportation; 2. United States services-Expenditures for services performed in the United States, in

cluding charges for overhead, other indirect costs, and profit; 3. Transportation on United States carriers-Expenditures for transportation furnished

by United States flag, ocean, surface, and air carriers; and

4. Expenditures not identified under 1, 2, and 3 above. (b) If this contract is principally for supplies or if the Contractor is not an incorporated concern incorporated in the United States, or an unincorporated concem having its principal place of business in the United States, the amounts identified under (a)1, (a)2, and (a)3 above will be limited to payments made pursuant to the requirements either of the “United States Products and Services" clause, if any, or of any other specific provision of this contract that obligates the Contractor to procure certain materials, equipment, transportation, or services from United States sources.

(c) The identification of expenditures required under (a) above may be expressed either as dollar amounts or as percentages applicable to the total amount of the request for payment.

(d) The identification will be based on reasonable estimates by the Contractor. Nothing in this clause requires the establishment or maintenance of detailed accounting records or gives the United States Government any right to audit the Contractor's books or records.

(End of clause)

(b) In lieu of the clause specified in (a) above,, the following statement may be placed prominently on the face of each contract, purchase or delivery order involving procurement of U.S. end products or U.S. services where the contracting officer considers that greater accuracy will be achieved or that inclusion of the contract clause is impracticable:

U.S. Expenditures for:

U.S. end products – ........% of each invoice.
U.S. services – .......% of each invoice.
Transportation on U.S. carriers —......% of each invoice.

(c) To provide appropriate reporting of the balance of payments consequences of Defense procurement for contracts of less than $10,000, the following statement will be placed prominently on the face of each contract, purchase or delivery order or other procurement document:

U.S. Expenditures for:

U.S. end products - ........% of each invoice.
U.S. services - ........% of each invoice.
Transportation on U.S. carriers -- ........% of each invoice.

7-104.59 Reserved.

7-104.60 Contractor-Furnished Returnable Gas Cylinders and Other Containers. Insert the following clause in contracts involving the purchase of gas in contractor-furnished returnable cylinders where the contractor retains title to the cylinders. The clause may be used, with appropriate modification, in contracts for other supplies involving reels, spools, drums, carboys, liquid petroleum gas con

7-104.60

ARMED SERVICES PROCUREMENT REGULATION

CONTRACT CLAUSES AND SOLICITATION PROVISIONS tainers, or other reusable containers, where the contractor is to retain title to the containers.

RETURNABLE GAS CYLINDERS (1966 OCT)

(a) Cylinders shall remain the property of the Contractor but will be loaned without charge to the Government for a period of thirty (30) days after the date of delivery of the cylinders to the f.o.b. point specified in the contract. Beginning with the first day after the expiration of the thirty (30) day loan period to and including the day the cylinders are delivered to the Contractor where the original delivery was f.o.b. origin, or to and including the date the cylinders are delivered or are made available for delivery to the Contractor's designated carrier in the case where the original delivery was f.o.b. destination, the Government shall pay the Contractor a rental of

...... dollars ($............) per cylinder per day, regardless of type or capacity.

• The time period may be modified to comply with the customary commercial practice for the particular type of container being rented.

(b) This rental charge will be computed separately for cylinders of differing types, sizes, and capacities, and for each point of delivery named in the contract. A credit of thirty (30) cylinder days will accrue to the Government for each cylinder, regardless of type or capacity, delivered by the Contractor. A debit of one (1) cylinder day will accrue to the Government for each cylinder for each day after delivery to the f.o.b. point specified in this contract. At the end of the contract, if the total number of debits exceeds the total number of credits, rental shall be charged for the difference. If the total number of credits equals or exceeds the total number of debits, no rental charges will be made for the cylinders. No rental shall accrue to the Contractor in excess of the replacement value per cylinder specified in (c) below.

(c) For each cylinder lost or damaged beyond repair while in the Government's possession, the Government shall pay to the Contractor the replacement value as follows, less the allocable rental paid therefor:

(i) oxygen cylinders of 100-110 cubic foot capacity S.............;
(ii) oxygen cylinders of 200-220 cubic foot capacity $..........;
(iii) acetylene cylinders of 100–150 cubic foot capacity S...........; and

(iv) acetylene cylinders of 230–300 cubic foot capacity S............. (d) Cylinders lost, or damaged beyond repair, and paid for by the Government shall become the property of the Government, subject to the following: If any lost cylinder is located within .............. (insert period of time) after payment by the Government, it may be returned to the Contractor by the Government, and the Contractor shall pay to the Government an amount equal to the replacement value, less rental computed in accordance with (a) above, beginning at the expiration of the thirty (30) day loan period specified in (a) above, and continuing to the date on which the cylinder was delivered to the Contractor.

(End of clause)

7-104.61 Frequency Authorization. Any contract which calls for developing, producing, constructing, testing, or operating a device for which a radio frequency authorization is required shall contain the following provision:

FREQUENCY AUTHORIZATION (1966 OCT)

(a) Authorization of radio frequencies required in support of this contract shall be obtained through the Contracting Officer by the Contractor or subcontractor in need thereof. Frequency management procedures prescribed in the Schedule of this contract shall be followed in obtaining radio frequency authorization.

(b) For any experimental, developmental or operational equipment for which the appropriate frcqucncy allocation has not been made, thc Contractor or subcontractor shall provide the

7-104.61

ARMED SERVICES PROCUREMENT REGULATION

CONTRACT CLAUSES AND SOLICITATION PROVISIONS

technical operating characteristics of the proposed electromagnetic radiating device to the Contracting Officer during the initial planning, experimental, or developmental phases of contractual performance. DD Form 1494, “Application for Frequency Allocation," shall be used for this purpose and shall be prepared in accordance with instructions contained on the form.

(c) This clause including this paragraph (c), shall be included in all subcontracts which call for developing, producing, testing, or operating a device for which a radio frequency authorization is required.

(End of clause)

7–104.62 Material Inspection and Receiving Report. Insert the following clause in all contracts which anticipate delivery of a separate and distinct object or entity whether separately priced or not.

MATERIAL INSPECTION AND RECEIVING REPORT (1969 DEC)

At the time of each delivery of supplies or services under this contract, the Contractor shall prepare and furnish to the Government a Material Inspection and Receiving Report in the manner and to the extent required by ASPR Appendix I, “Material Inspection and Receiving Re

port."

(End of clause)

However, when contract administration is retained by the purchasing office, the clause is not required in the following situations unless the use of a MIRR is desired by the contracting officer:

(i) procurements effected under Section III, Part 6-Small Purchase and

Other Simplified Purchase Procedures; (ii) negotiated subsistence procurements; (iii) procurements of fresh milk and related fresh dairy products; (iv) contracts for which the end item is a scientific or technical report; (v) research and development procurements not requiring the delivery

of separately priced end items; (vi) base, post, camp or station procurements; (vii) in overseas areas when the contracting officer determines that the

preparation and distribution of DD Form 250 by the contractor would be impracticable, the contracting officer shall arrange for the contractor to provide the information necessary for the preparation

of the DD Form 250 by the contract administration personnel; and (viii) procurements for services where hardware is not acquired as an item

in the contract, e.g., level of effort type contracts; field service type

contracts, etc. A MIRR is not required when indefinite delivery type contracts are placed by central procurement offices which authorize only base, post, camp or station activities to issue orders, provided that such contract and orders are not assigned for administration.

7-104.63 Protection of Government Buildings, Equipment and Vegetation. Insert the following clause in all contracts which involve the performance of services on a Government installation.

7-104.63

ARMED SERVICES PROCUREMENT REGULATION

CONTRACT CLAUSES AND SOLICITATION PROVISIONS PROTECTION OF GOVERNMENT BUILDINGS, EQUIPMENT AND VEGETATION (1968 FEB)

The Contractor shall use reasonable care to avoid damaging existing buildings, equipment, and vegetation (such as trees, shrubs, and grass) on the Government installation. If the Contractor fails to do so and damages any such buildings, equipment, or vegetation, he shall replace or repair the damage at no expense to the Government as directed by the Contracting Officer. If he fails or refuses to make such repair or replacement, the Contractor shall be liable for the cost thereof which may be deducted from the contract price.

(End of clause)

7-104.64 Recovery of Nonrecurring Costs on non-US Government Sales of Defense Equipment. In accordance with 4-109 insert the following clause as appropriate.

(a) Recovery of Nonrecurring Costs on Foreign Commercial Sales.

RECOVERY OF NONRECURRING COSTS ON FOREIGN COMMERCIAL SALES (1969 NOV)

(a) In the event the Contractor intends to enter into foreign sales or license agreements for the items in this contract or essentially similar items, he shall promptly notify the Contracting Officer. The Contractor agrees that he will adjust this contract by an amount or amounts calculated to reimburse the Government for a pro rata share of its expenditures for nonrecurring costs applicable to the items. In the event that this contract has been finally settled, adjustment shall be accomplished by payment to the Government.

(1) Nonrecurring costs include such costs as research development, test, evaluation, preproduction, facilities, special tooling, special test equipment, production engineering, product improvement, destructive testing, and pilot model production, testing and evaluation.

(2) For each foreign sale or license agreement the amount to be reimbursed to the DoD for the DoD nonrecurring costs shall be determined by dividing the total DoD nonrecurring costs, incurred and projected to be incurred, by the total production quantity of the item, past and projected, including the production quantity for the DoD and multiplying the results by the quantity involved in each such sale or license agreement.

(3) The phrase "foreign sales or license agreements" includes all sales to or license agreements with foreign buyers, including foreign governments and international organizations, directly by U.S. domestic firms.

(b) Notwithstanding the provisions of the clauses of this contract entitled “Patents Rights(Licenses)" and "Rights in Technical Data," the Contractor agrees that his rights to enter into production for foreign sales of the items or essentially similar items are expressly contingent upon compliance with the provisions of this clause provided that the Secretary of Defense or his designee may waive the Government's rights under this clause, in whole or in part, whenever he determines that such action would be in the best interests of the Government.

(End of clause)

(b) Recovery of Nonrecurring Costs on Domestic Commercial Sales.

RECOVERY OF NONRECURRING COSTS ON DOMESTIC COMMERCIAL SALES (1968 SEP)

(a) In the event the Contractor intends to enter into domestic commercial sales or license agreements for the items in this contract or essentially similar items, he shall promptly notify the Contracting Officer. The Contractor agrees that he will adjust this contract by an amount or amounts calculated to reimburse the Government for a pro rata share of its expenditures for nonrecurring costs applicable to the items. In the event that this contract has been finally settled, adjustment shall be accomplished by payment to the Government.

(1) Nonrccurring costs include such costs as rescarch, development, test, evaluation, preproduction, facilities, special tooling, special test equipment, production engincering, product improvement, destructive testing, and pilot model production, testing and evaluation.

7-104.64

ARMED SERVICES PROCUREMENT REGULATION

7:117

CONTRACT CLAUSES AND SOLICITATION PROVISIONS

(2) For each domestic commercial sale or license agreement the amount to be reimbursed to the DoD for the DoD nonrecurring costs shall be determined by dividing the total DoD nonrecurring costs, incurred and projected to be incurred, by the total production quantity of the item, past and projected, including the production quantity for the DoD and multiplying the results by the quantity involved in each such sale or license agreement.

(3) The phrase "domestic commercial sales or license agreements" includes all domestic, non-U.S. Government sales or license agreements.

(b) Notwithstanding the provisions of the clauses of this contract entitled “Patents Rights(Licenses)" and "Rights in Technical Data," the Contractor agrees that his rights to enter into production for domestic commercial sales of the items or essentially similar items are expressly contingent upon compliance with the provisions of this clause provided that the Secretary of Defense or his designee may waive the Government's rights under this clause, in whole or in part, whenever he determines that such action would be in the best interests of the Government.

(End of clause)

7-104.65 Insurance. In accordance with 10-405, insert the following clause.

INSURANCE (1977 JAN)

(a) The Contractor shall, at his own expense, procure and maintain during the entire performance period of this contract insurance of at least the kinds and minimum amounts set forth in the Schedule.

(b) Prior to the commencement of work hereunder, the Contractor shall furnish to the Contracting Officer a certificate or written statement of the above-required insurance. The policies evidencing required insurance shall contain an endorsement to the effect that cancellation or any material change in the policies adversely affecting the interests of the Government in such insurance shall not be effective for such period as may be prescribed by the laws of the State in which this contract is to be performed and in no event less than thirty (30) days after written notice thereof to the Contracting Officer.

(c) The Contractor shall also require all first-tier subcontractors who will perform work on a Government installation to procure and maintain the insurance required by the Schedule during the entire period of their performance. The Contractor shall furnish (or assure that there has been furnished) to the Contracting Officer a current Certificate of Insurance meeting the requirements of (b) above for each such first-tier subcontractor, at least five (5) days prior to entry of each such subcontractor's personnel on the Government installation.

(End of clause)

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

ACQUISITION AND USE OF EXCESS AND NEAR-EXCESS CURRENCY (1967 DEC)

The Contractor shall not expend United States dollars for the performance of this contract in any of the countries set forth in the Schedule of this contract for the purchase of currency of such countries or for the purchase of goods or services needed for performance under this contract. The Contractor shall purchase all such currencies from United States disbursing officers in such countries at the rates of exchange used by such officers at the times of purchase.

(End of clause)

7-104.67 Reserved.

7-104.67

ARMED SERVICES PROCUREMENT REGULATION

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