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(3) Summary Network. If the project is of such size that the entire network cannot be readily shown on a single sheet, a summary network diagram shall be provided. The summary network diagram shall consist of a minimum of fifty activities and a maximum of one hundred and fifty activities, and shall be based on and supported by detailed diagrams. Related activities shall be grouped on the network. The critical path shall be plotted generally along the center of the sheet with channels with increasing float placed towards the top or bottom. The summary network shall be time scaled using units of approximately one-half inch equals one week or other suitable scale approved by the Contracting Officer. Weekends and holidays shall be indicated. Where slack exists, the activities shall be shown at the time when they are scheduled to be accomplished.

(4) The mathematical analysis of the network diagram shall include a tabulation of each activity shown on the detailed network diagrams. The following information will be furnished as a minimum for each activity:

(i) preceding and following event numbers (numbers shall be selected and assigned so as

to permit identification of the activities with bid items);
(ii) activity description;
(iii) estimated duration of activities (the best estimate available at time of computation);
(iv) earliest start date (by calendar date);
(v) earliest finish date (by calendar date);
(vi) scheduled or actual start date (by calendar date);
(vii) scheduled or actual finish date (by calendar date);
(viii) latest start date (by calendar date);
(ix) latest finish date (by calendar date);
(x) slack or float;
(xi) monetary value of activity;
(xii) responsibility for activity (Prime contractor, subcontractors, suppliers, Government,

(xiii) manpower required;
(xiv) percentage of activity completed;
(xv) contractor's earnings based on portion of activity completed; and
(xvi) bid item of which activity is a part.

(5) The program or means used in making the mathematical computation shall be capable of compiling the total value of completed and partially completed activities and subtotals from separate buildings or feature listed in paragraph (b)(2). (6) In addition to the tabulation of activities, the computation will include the following data: (i) identification of activities which are planned to be expedited by use of overtime or

double shifts to be worked including Saturdays, Sundays and holidays; (ii) on-site manpower loading schedule; (iii) a description of the major items of construction equipment planned for operations of

the project. (The description shall include the type, number of units and unit capacities. A schedule showing proposed time equipment will be on the job keyed to activi

ties on which equipment will be used shall be provided); and (iv) where portions of the work are to be paid by unit costs, the estimated number of

units in an activity which was used in developing the total activity cost. (7) The analysis shall list the activities in sorts or groups as follows: (i) by the preceding event number from lowest to highest and then in the order of the

following event number; (ii) by the amount of slack, then in order of preceding event number; (iii) by responsibility in order of earliest allowable start dates; and (iv) in order of latest allowable start dates, then in order of preceding event numbers, and

then in order of succeeding event numbers. (c) Submission and approval of the system shall be as follows:

(1) A preliminary network defining the Contractor's planned operations during the first sixty (60) calendar days after notice to proceed will be submitted within ten (10) days. The Contractor's general approach for the balance of the project shall be indicated. Cost of activities expected to be completed or partially completed before submission and approval of the whole schedule should be included.

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(2) The complete network analysis consisting of the detailed network mathematical analysis (on-site manpower loading schedule, equipment schedule) and network diagrams shall be submitted within forty (40) calendar days after receipt of notice to proceed.

(d) The Contractor shall participate in a review and evaluation of the proposed network diagrams and analysis by the Contracting Officer. Any revisions necessary as a result of this review shall be resubmitted for approval of the Contracting Officer within ten (10) calendar days after the conference. The approved schedule shall then be the schedule to be used by the Contractor for planning, organizing and directing the work and for reporting progress. If the Contractor thereafter desires to make changes in his method of operating and scheduling he shall notify the Contracting Officer in writing stating the reasons for the change. If the Contracting Officer considers these changes to be of a major nature he may require the Contractor to revise and submit for approval, without additional cost to the Government, all or the affected portion of the detailed diagrams and mathematical analysis and the summary diagram to show the effect on the entire project. A change may be considered of a major nature if the time estimated to be required or actually used for an activity or the logic of sequence of activities is varied from the original plan to a degree that there is a reasonable doubt as to the effect on the contract completion date or dates. Changes which affect activities with adequate slack time shall be considered as minor changes, except that an accumulation of minor changes may be considered a major change when their cumulative effect might affect the contract completion date.

(e) The Contractor shall submit at intervals of fifteen (15) calendar days a report of the actual construction progress by updating the mathematical analyses. Revisions causing changes in the detailed network shall be noted on the summary network, or a revised issue of affected portions of the detailed network furnished. The summary network shall be revised as necessary for the sake of clarity. However, only the initial submission or complete revisions need be time scaled. Subsequent minor revisions need not be time scaled.

(f) The report shall show the activities or portions of activities completed during the reporting period and their total value as basis for the Contractor's periodic request for payment. Payment made pursuant to the General Provision entitled “Payments to Contractor" will be based on the total value of such activities completed or partially completed after verification by the Contracting Officer. The report will state the percentage of the work actually completed and scheduled as of the report date and the progress along the critical path in terms of days ahead or behind the allowable dates. If the project is behind schedule, progress along other paths with negative slack shall also be reported. The Contractor shall also submit a narrative report with the updated analysis which shall include but not be limited to a description of the problem areas, current and anticipated, delaying factors and their impact, and an explanation of corrective actions taken or proposed.

(8) Sheet size of diagrams shall be 30 by 42 inches. Each updated copy shall show a date of the latest revision.

(h) Initial submittal and complete revisions shall be submitted in six (6) copies.
(i) Periodic reports shall be submitted in four (4) copies.

(End of clause)

7–604.8 Government-Prepared Network Analysis System.

(a) The clause in (b) below is authorized for use in accordance with the following instructions:

(1) Paragraph (a). This paragraph shall be used when the project is of long duration and a schedule of the first two months' operation is necessary for controlling the project until the “Construction Progress Schedule" is submitted. The blank will be filled in with the number of days desired. This paragraph will be deleted when the construction project is of short duration.

(2) Paragraph (b). Proper number of days for submittals shall be inserted by the contracting officer.

(3) Paragraph (c)(1) and (c)(2) shall be modified to agree with detail and type of network analysis system the Government proposes to prepare.

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(d) Subject to the provisions of paragraph (c), the Contractor and the Contracting Officer may agree upon the whole or any part of the amount or amounts to be paid (including an allowance for the fee) to the Contractor by reason of the total or partial termination of work pursuant to this clause. The contract shall be amended accordingly, and the Contractor shall be paid the agreed amount.

(e) In the event of the failure of the Contractor and the Contracting Officer to agree in whole or in part, as provided in paragraph (d), as to the amounts with respect to costs and fee, or as to the amount of the fee, to be paid to the Contractor in connection with the termination of work pursuant to this clause, the Contracting Officer shall determine, on the basis of information available to him, the amount, if any, due to the Contractor by reason of the termination and shall pay to the Contractor the amount determined as follows:

() if the settlement includes cost and fee-
(A) there shall be included therein all costs and expenses reimbursable in ac-

cordance with this contract, not previously paid to the Contractor for the per-
formance of this contract prior to the effective date of the Notice of Termina-
tion, and such of these costs as may continue for a reasonable time thereafter
with the approval of or as directed by the Contracting Officer; provided, how-
ever, that the Contractor shall proceed as rapidly as practicable to discontinue

such costs; (B) there shall be included therein so far as not included under (A) above, the cost

of settling and paying claims arising out of the termination of work under subcontracts or orders, as provided in paragraph (b)(v) above, which are properly

chargeable to the terminated portion of the contract; (C) there shall be included therein the reasonable costs of settlement, including ac

counting, legal, clerical, and other expenses reasonably necessary for the preparation of settlement claims and supporting data with respect to the terminated portion of the contract and for the termination and settlement of subcontracts, thereunder, together with reasonable storage, transportation, and other costs incurred in connection with the protection or disposition of termination inventory; provided, however, that if the termination is for default of the Contractor there shall not be included any amounts for the preparation of the

Contractor's settlement proposal; and
(D) there shall be included therein a portion of the fee payable under the contract

determined as follows-
(I) in the event of the termination of this contract for the convenience of the

Government and not for the default of the Contractor, there shall be paid a
percentage of the fee equivalent to the percentage of the completion of
work contemplated by the contract, but exclusive of subcontract effort in-
cluded in subcontractors' termination claims, less fee payments previously

made hereunder; or (II) in the event of the termination of this contract for the default of the Con

tractor, the total fee payable shall be such proportionate part of the fee as the actual work in place bears to the total work in place required by the

contract; if the amount determined under this subparagraph (i) is less than the total payment theretofore made to the Contractor, the Contractor shall repay to the

Government the excess amount; or (ii) if the settlement includes only the fee, the amount thereof will be determined in ac

cordance with the subparagraph (i)(D) above. (f) Costs claimed, agreed to, or determined pursuant to (c), (d), and (e) hereof shall be in accordance with the Section XV Contract Cost Principles and Procedures of the Armed Services Procurement Regulation as in effect on the date of this contract.

(g) The Contractor shall have the right of appeal, under the clause of this contract entitled "Disputes", from any determination made by the Contracting Officer under paragraphs (c) or (e) above, except that if the Contractor has failed to submit his claim within the time provided in paragraph (c) above and has failed to request extension of such time, he shall have no such right of appeal. In any case where the Contracting Officer has made a determination of the amount due

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under paragraph (c) or (e) above, the Government shall pay to the Contractor the following: (i) if there is no right of appeal hereunder or if no timely appeal has been taken, the amount so determined by the Contracting Officer, or (ii) if an appeal has been taken, the amount finally determined on such appeal.

(h) In arriving at the amount due the Contractor under this clause, there shall be deducted (i) all unliquidated advance or other payments theretofore made to the Contractor, applicable to the terminated portion of this contract; (ii) any claim which the Government may have against the Contractor in connection with this contract; and (iii) the agreed price for, or the proceeds of sale of, any materials, supplies, or other things acquired by the Contractor or sold pursuant to the provisions of the clause and not otherwise recovered by or credited to the Government.

(i) In the event of a partial termination, the portion of the fee which is payable with respect to the work under the continued portion of the contract shall be equitably adjusted by agreement between the Contractor and the Contracting Officer, and such adjustment shall be evidenced by an amendment to this contract.

(j) The Goverment may from time to time, under such terms and conditions as it may prescribe, make partial payments and payments on account against costs incurred by the Contractor in connection with the terminated portion of the contract whenever in the opinion of the Contracting Officer the aggregate of such payments shall be within the amount to which the Contractor will be entitled hereunder. If the total of such payments is in excess of the amount finally determined to be due under this clause, such excess shall be payable by the Contractor to the Government upon demand, together with interest computed at the rate established by the Secretary of the Treasury pursuant to Public Law 92-41; 85 STAT 97 for the Renegotiation Board, for the period from the date such excess payment is received by the Contractor to the date on which such excess is repaid to the Government; provided, however, that no interest shall be charged with respect to any such excess payment attributable to a reduction in the Contractor's claim by reason of retention or other disposition of termination inventory until 10 days after the date of such retention or disposition, or such later date as determined by the Contracting Officer by reason of the circumstances.

(k) The provisions of this clause relating to the fee shall be inapplicable if this contract does not provide for payment of a fee.

(End of clause)

7-605.27 Convict Labor. In accordance with 12–203, insert the clause in 7-104.17.

7-605.28 Officials Not To Benefit. In accordance with 7-602.19, insert the clause therein.

7-605.29 Covenant Against Contingent Fees. In accordance with 7-103.20, insert the clause therein.

7-605.30 Gratuities. In accordance with 7-104,16, insert the clause therein.

7-605.31 Assignment of Claims. If the contract is negotiated in contemplation that the contractor may make an assignment, insert the clause in 7-602.8.

7-605.32 Renegotiation. In accordance with 7-103.13, insert the clause therein.

7-605.33 Authorization and Consent. In accordance with 9-102.1 and 18-902, insert the appropriate clause in 7-103.22 or 7-302.21.

7-605.34 Notice and Assistance Regarding Patent and Copyright Infringement. In accordance with 9-104 and 18-904, insert the clause in 7-103.23.

7-605.35 Patent Indemnity. In accordance with 18-903.3, insert the clause in 7-602.16.

7-605.36 Utilization of Small Business Concerns. In accordance with 1-707.3(a) and (c), insert one or both of the clauses in 7-104.14(a) and 7-602.26(b).

7-605.37 Competition in Subcontracting. Insert the clause in 7-104.40.

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7-605.38 Definitions. In accordance with 7-602.1, insert the clause therein.

7-605.39 Excusable Delays. In accordance with 8–708(a), insert the clause in 7–203.11 deleting the words “delivery schedule" in the last sentence and substituting the words “completion time.”

7-605.40 Rights in Shop Drawings. In accordance with 18–910.1(b), insert the clause in 7-602.47.

7-605.41 Management Systems Requirements. In accordance with 16–827.1, insert the clause in 7-104.50.

7-605.42 Bills of Lading Covering Shipments To or From Contractor's Plant. In accordance with the requirements of 19-217.1(b), insert the clause in 7-203.14.

7-605.43 Equal Opportunity Pre-Award Clearance of Subcontracts. In accordance with 23–201.4, insert the clause in 7-104.22.

7-605.44 Minority Business Enterprises. In accordance with 1-332, insert the appropriate clause or clauses in 7-104.36.

7-605.45 Affirmative Action for Disabled Veterans and Veterans of the Vietnam Era. Insert the clause in 7-103.27.

7-605.46 Affirmative Action for Handicapped Workers. Insert the clause in 7-103.28.

7-605.47 Clean Air and Water. In accordance with 1-2302.2, insert the clause in 7-103.29.

7-605.48 Notice of Intent to Disallow or Not Recognize Costs. Insert the clause in 7–203.35.

7-606 Clauses To Be Used When Applicable for Cost-Reimbursement Type Construction Contracts.

7-606.1 Incentive Fee Clause for Cost-Type Construction Contracts. Cost type construction contracts may provide for incentive fee adjustment in accordance with 3-405.4. Incentive fee cost reimbursement construction contracts will be prepared by using the cost-plus-a-fixed-fee construction contract format set forth in 16–402.3, including the clauses in 7-605 and 7-606, modified in the following particulars:

(i) change the title of the format to read “Cost-Plus-Incentive-Fee Con

struction Contract;"
(ii) delete the clause entitled “Allowable Cost, Fixed Fee and Payment;"
(iii) insert the clause in 7-203.4(b) entitled “Allowable Cost, Incentive

Fee and Payment" with the following changes:
(A) Delete paragraph (a)(1) and substitute:

For the performance of this contract, the Government shall pay to the Contractor

(i) The cost thereof (hereinafter referred to as "allowable cost") determined by the

Contracting Officer to be allowable in accordance with-
(A) Section XV, Part 4, of the Armed Services Procurement Regulation as in effect

on the date of this contract; and
(B) The terms of this contract; and
(ii) A fee in the amount of ................ dollars (S................) adjusted as provided in (i)


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