CONTRACT CLAUSES AND SOLICITATION PROVISIONS mit the required data within the time specified, no further payment may be made by the Contracting Officer until the data are furnished and if it is later determined that the Government has overpaid the Contractor, the excess shall be repaid to the Government immediately. Unless repaid within thirty (30) days after the end of the data submittal period, the amount of such excess shall bear interest at the rate established in accordance with the Interest clause in ASPR 7-104.39. Interest shall be computed for the period from the date the data was due to the date of repayment. (d) Price Revision. Upon submission of the data required by paragraph (c) above, the Contractor and the Contracting Officer shall promptly establish the total adjusted price in accordance with the following: (1) On the basis of the information required by paragraph (c) above, the Contractor and the Contracting Officer shall establish by negotiation the total adjusted cost incurred or to be incurred for the work and services performed under this contract and accepted by the Government. (2) The total adjusted price of the work and services performed under this contract shall be established by adding to the total adjusted cost, as negotiated under (1) above, less the proceeds of any disposition of Contractor inventory in accordance with (h) below, an allowance for profit determined in accordance with (3) below, provided, however, that in no event shall the total adjusted price exceed the amount computed in accordance with paragraph (a) above. (3) The allowance for profit with respect to this contract shall be determined as follows, subject to the provisions and limitations set forth in subparagraph (2) above: WHEN THE TOTAL ADJUSTED COST IS: Equal to the total target cost, WHEN THE TOTAL ADJUSTED COST IS: Greater than the total target cost, THe alLOWANCE FOR PROFIT IS: Total target profit less percent (%) of the amount by which the total adjusted cost exceeds the total target cost. WHEN THE TOTAL ADJUSTED COST IS: Less than the total target cost, THE ALLOWANCE FOR PROFIT IS: Total target profit plus........... percent (%) of the amount by which the total adjusted cost is less than the total target cost. (e) Records. (1) The Contractor shall maintain books, records, documents, and other evidence, sufficient to reflect properly all direct and indirect costs of whatever nature claimed to have been incurred for the performance of this contract. However, no material change will be required to be made in the Contractor's accounting procedures and practices if they conform to generally accepted accounting practices and if the cost data required to be furnished under (c) above are readily ascertainable. Each subcontract placed by the Contractor hereunder on other than a firm fixed-price basis (i) shall provide that the subcontractor shall maintain books, records, documents, and other evidence, sufficient to reflect properly all direct and indirect costs of whatever nature claimed to have been incurred in the performance of such subcontract and (ii) shall require each such subcontractor to insert the entire substance of this subparagraph, including this (ii), in all his subcontracts which are on other than a firm fixed-price basis. (2) The Government may at all reasonable times make such examination or audit as the Contracting Officer may require of the Contractor's books, records, documents, and other evidence pertinent to the performance of this contract. (f) Certification. An authorized responsible official of the Contractor shall certify on each statement of costs submitted to the Contracting Officer pursuant to (c) above that the incurred costs are based upon the records of the Contractor, that such records reflect generally accepted accounting principles and practices normally followed by the Contractor, and that such costs are correct to the best of his knowledge and belief. (g) Subcontracts. (1) No subcontract placed under this contract shall provide for payment on a cost-plus-a-percentage-of-cost basis; and the Contractor shall not, without the prior written consent of the Contracting Officer, place any subcontract which is on a cost-plus-a-fee basis and which would involve a total price in excess of $10,000, including the fee. The Contracting Officer 7-603.23 ARMED SERVICES PROCUREMENT REGULATION CONTRACT CLAUSES AND SOLICITATION PROVISIONS may, in his discretion, ratify in writing any such cost-plus-a-fee subcontract and such action shall constitute the consent of the Contracting Officer as required by this subparagraph (1). (2) Each subcontract placed by the Contractor hereunder (i) shall provide that the Government may at all reasonable times make such examination or audit as the Contracting Officer may require of the subcontractor's books, records, documents, and other evidence, pertinent to the performance of the subcontract and (ii) shall require each such subcontractor whose subcontract is on other than a firm fixed-price basis to insert the entire substance of this subparagraph, including this (ii), in all his subcontracts. The term "subcontract," as used in this subparagraph (2) only, excludes firm fixed-price subcontracts not in excess of $2,500 and subcontracts for utility services at rates established for uniform application to the general public. (h) Contractor Inventory. Any materials, supplies and property the cost of which is allocable to the contract and included in the total adjusted cost which are on hand upon the completion of the contract, shall be disposed of in accordance with the applicable Government regulations covering the disposition of Contractor inventory and any proceeds of such disposition shall be used to reduce the total adjusted cost established pursuant to paragraph (d) above. Any materials, supplies and property which are on hand upon the completion of the contract, which are not allocable to the contract and as to which no costs have been included in the total adjusted cost, shall be and remain the property of the Contractor. (i) Contract Modification. The total adjusted price, as determined in accordance with paragraph (d) above, shall be evidenced by a modification to this contract signed by the Contractor and the Contracting Officer. Such final contract price shall apply to all work and services performed under this contract. (j) Adjustment of Payment Estimates. If at any time it appears that the final contract price will be substantially greater or less than (i) the aggregate of the prices of the lump sum items, plus (ii) the unit prices of the estimated quantity items times the actual quantity of such items completed, the Contracting Officer may adjust each payment estimate thereafter to be made under the contract by increasing or decreasing the net amount of such payment estimate by the indicated percentage of variation, provided, however, that in no event shall the percentage of increase exceed that indicated in paragraph (a)(iii) above. Any adjustment of payment estimates under this paragraph shall in no way limit or affect the price revision to be computed in accordance with the provisions of this clause. (k) Quarterly Limitation on Payments Statement. Notwithstanding any provisions of this contract authorizing greater payment, the total of all amounts paid or payable under this contract, until price revision has been made to the full extent permitted by this contract, shall not exceed the sum of the following items as reported by the Contractor from time to time as hereinafter provided: (i) the total amount of costs and (ii) the total amount of target profit used in establishing the total target price and allocable by direct proportion to the work or services performed. Within forty-five (45) days after the end of each quarter of the Contractor's fiscal year, beginning for the quarter in which work or services are first performed under this contract and as of the end of each quarter thereafter, the Contractor shall submit to the Contract Administration Office with a copy to the purchasing activity and the cognizant contract auditor, a statement setting forth the respective amounts of each of the two numbered items next above, together with the total of all amounts paid or payable under this contract as of the end of each such quarter. If on any quarterly statement the total of the amounts paid exceeds the sum of the two numbered items above, this gross excess shall be paid immediately by the Contractor to the Government or credited against existing unpaid billings. When the Contractor fails to submit the quarterly statement within forty-five (45) days after the end of each quarter and it is later determined that the Government has overpaid the Contractor, the excess shall be repaid to the Government immediately. Unless repaid within thirty (30) days after the end of the statement submittal period, the amount of such excess shall bear interest at the rate established in accordance with the Interest clause in ASPR 7-104.39. Interest shall be computed for the period from the date the quarterly statement was due to the date of repayment. (1) Disagreement. If the Contractor and the Contracting Officer are unable to agree upon the final contract price within sixty (60) days after the date on which the data required by (c) above are to be submitted or within such further time as specified by the Contracting Officer, the Contracting Officer shall resolve the disagreement by issuing a decision pursuant to the clause of this contract entitled "Disputes." 7-603.23 ARMED SERVICES PROCUREMENT REGULATION CONTRACT CLAUSES AND SOLICITATION PROVISIONS (m) Termination. (i) In the event of a complete termination, the amount payable to the Contractor shall (ii) In the event of a partial termination, the amount payable to the Contractor as to the 7-603.24 Special Tooling. In accordance with 13-305.2(d)(3), insert the clause in 7-104.25 in negotiated construction contracts. 7-603.25 Physical Data. (a) All the information concerning local conditions pertaining to the performance of the contract work, which has been made available to the contractor should be referenced into the contract by completing the clause set forth in (b) below. Wherever test borings, analyses, or hydrographic data are to be made available to the contractor, the wording of this special clause should be such as only to inform the contractor as to the source of the data and where it may be examined. 7-603.25 ARMED SERVICES PROCUREMENT REGULATION 7:304 CONTRACT CLAUSES AND SOLICITATION PROVISIONS (b) Contract Clause. PHYSICAL DATA (1965 JAN) Information and data furnished or referred to below are furnished for the Contractor's information. However, it is expressly understood that the Government will not be responsible for any interpretation or conclusion drawn therefrom by the Contractor. (a) The physical conditions indicated on the drawings and in the specifications are the result of site investigations by (insert investigational methods used, such as surveys, auger borings, core borings, test pits, probings, test tunnels, etc.) (b) Weather Conditions. (Insert summary of weather records and warnings.) (c) Transportation facilities. (Insert the summary of transportation facilities accessible to project, availability, and limitations.) (d). (Insert other pertinent information.) (End of clause) 7-603.26 Reserved. 7-603.27 Variations in Estimated Quantities. Insert the following clause in contracts containing estimated quantity items (not required for indefinite delivery type contracts). VARIATIONS IN ESTIMATED QUANTITIES (1968 APR) Where the quantity of a pay item in this contract is an estimated quantity and where the actual quantity of such pay item varies more than fifteen percent (15%) above or below the estimated quantity stated in this contract, an equitable adjustment in the contract price shall be made upon demand of either party. The equitable adjustment shall be based upon any increase or decrease in costs due solely to the variation above one hundred fifteen percent (115%) or below eighty-five percent (85%) of the estimated quantity. If the quantity variation is such as to cause an increase in the time necessary for completion, the Contracting Officer shall, upon receipt of a written request for an extension of time within ten (10) days from the beginning of such delay, or within such further period of time which may be granted by the Contracting Officer prior to the date of final settlement of the contract, ascertain the facts and make such adjustment for extending the completion date as in his judgment the findings justify. (End of clause) 7-603.28 Identification of Government Furnished Property. Insert the following clause when required. The point at which the Government-furnished property will be delivered to the contractor should be specifically stated as a part of the information furnished under the special clause on physical data (see 7-603.25). Special provisions may be required in addition to the clause herein to cover Government or another contractor's installation, preparation for operation, or testing of equipment. 7-603.28 ARMED SERVICES PROCUREMENT REGULATION CONTRACT CLAUSES AND SOLICITATION PROVISIONS IDENTIFICATION OF GOVERNMENT FURNISHED PROPERTY (1968 SEP) The Government will furnish to the Contractor the following property to be incorporated or installed in the work or used in its performance. Such property will be furnished f.o.b. railroad cars at the place specified in paragraph or f.o.b. truck at the project site and the Contractor will be required to accept delivery when made, paying any demurrage or detention charges incurred, and unloading and transporting the property to the job site at his own expense. All such property will be installed or incorporated into the work at the expense of the Contractor, unless otherwise indicated herein. The Contractor shall verify the quantity and condition of such Governmentfurnished property when delivered to him, acknowledge receipt thereof in writing to the Contracting Officer, and in case of damage to or shortage of such property, he shall within 24 hours report in writing such damage or shortage to the Contracting Officer. Quantity (End of clause) 7-603.29 Salvage Materials and Equipment. Insert the following clause in contracts which involve Government-furnished property which is to be salvaged and reused: SALVAGE MATERIALS AND EQUIPMENT (1965 JAN) The Contractor shall maintain adequate property control records for all materials or equipment specified to be salvaged. These records may be in accordance with the Contractor's system of property control, if approved by the property administrator. The Contractor shall be responsible for the adequate storage and protection of all salvaged materials and equipment and shall replace, at no cost to the Government, all salvage materials and equipment which are broken or damaged during salvage operations as the result of his negligence, or while in his care. (End of clause) 7-603.30 Availability and Use of Utility Services. Insert the following clause in contracts for performance at Government installations when it is determined that one or more utility systems and supplies are adequate for the needs and use of both the Government and the contractor and it is advantageous to the Government to furnish such utility services. AVAILABILITY AND USE OF UTILITY SERVICES (1967 APR) (a) The Government will make available to the Contractor, from existing outlets and supplies, all reasonably required amounts of utilities as specified in the Schedule or specifications. Except as otherwise provided in the Schedule or specifications, each utility shall be charged to or paid for by the Contractor at prevailing rates charged to the Government or, where the utility is produced by the Government, at reasonable rates as determined by the Contracting Officer. (b) The Contractor shall carefully conserve utilities furnished without charge. The Contractor, at his own expense and in a workmanlike manner satisfactory to the Contracting Officer, shall install and maintain all necessary temporary connections and distribution lines and, if necessary to determine charges, all meters required to measure the amount of each utility used; and he shall remove the same prior to final acceptance of the construction. (End of clause) 7-603.31 Management Systems Requirements. In accordance with 16-827.1, insert the clause in 7-104.50. 7-603.32 Misplaced Material. Insert the following clause in all contracts involving work near or on navigable waterways. 7-603.32 ARMED SERVICES PROCUREMENT REGULATION |