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SECTION VII

CONTRACT CLAUSES AND SOLICITATION PROVISIONS

7-000 Scope of Section. This Section sets forth uniform contract clauses for use in connection with the procurement of supplies and services.

7-001 Incorporation by Reference.

(a) Except as may be otherwise indicated with respect to individual clauses, provisions, or groups thereof, all clauses and provisions of Section VII are susceptible to incorporation by reference in solicitations and contracts in accordance with the following criteria.

(1) A provision substantially as follows shall be employed to effect incorporation by reference:

The following Armed Services Procurement Regulation clauses and provisions, the full text of which will be made available upon request, are incorporated herein by reference with the same force and effect as if set forth in full text: (each clause and provision to be incorporated by reference shall then be identified by specific ASPR paragraph, clause or provision title, and date).

(2) The Chief of a Purchasing Office may further restrict incorporation by reference for specified contracts or classes of contracts.

(3) So long as the verbatim text satisfies all solicitation or contract requirements, incorporation by reference is authorized, notwithstanding that the clause or provision (i) is identified for alternate or optional use or as a sample, or (ii) requires insertion of an appropriate schedule provision by the Government for its completion.

(4) A clause or provision shall not be incorporated by reference if it (i) is not susceptible to precise identification as required by (1) above, (ii) requires completion by the offeror or contractor, or (iii) is otherwise impracticable for application of the technique.

(b) Clauses and provisions published in Departmental procurement instructions and Departmental ASPR implementations shall not be incorporated by reference.

7-001

ARMED SERVICES PROCUREMENT REGULATION

CONTRACT CLAUSES AND SOLICITATION PROVISIONS

Part 1-Fixed-Price Supply Contracts

7-100 Scope of Part. This part sets forth uniform contract clauses for use in fixed-price supply contracts as defined in 7-101.

7-101 Applicability. As used throughout this Part, the term “fixed-price supply contract" shall mean any contract (i) entered into either by formal advertising or by negotiation other than (A) purchase orders (but see 3-608.2(b)), (B) letter contracts, (C) notices of award, (D) general contracts for communication services and facilities and (E) supplemental agreements to contracts or purchase orders, which do not effect new procurement; (ii) at a fixed price (with or without provision for price redetermination, economic price adjustment, or other form of price revision as covered in 3-404; and (iii) for supplies other than (A) the construction, alteration, or repair of buildings, bridges, roads, or other kinds of real property, (B) experimental, developmental, or research work, or (C) facilities to be provided by the Government under a facilities contract as defined in Section XIII. However, there are supply contracts in which performance involves cost-reimbursement, construction, research and development, or other special factors. In such cases, see the particular Parts containing additional applicable clauses.

7-102 Contracts Subject in Part to Incentive Price Revision. When a contract is partly a firm fixed-price contract and partly a fixed-price incentive contract, the clauses required for both types of contracts shall be included. When any provision is applicable only to firm fixed-price items, or only to items subject to incentive price revision, such provision shall be so labeled.

7-103 Required Clauses. The following clauses shall be inserted in all fixedprice supply contracts.

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As used throughout this contract, the following terms shall have the meanings set forth below. (a) The term "Head of the Agency" or "Secretary" means the Secretary, the Under Secretary, any Assistant Secretary, or any other head or assistant head of the executive or military depart. ment or other Federal 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 Head of the Agency or 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 "subcontract" includes but is not limited to purchase orders, changes and/or modifications thereto.

(End of Clause)

Additional definitions may be included provided they are not inconsistent with the foregoing clause or the provisions of this Regulation.

7-103.1

ARMED SERVICES PROCUREMENT REGULATION

CONTRACT CLAUSES AND SOLICITATION PROVISIONS

7-103.2 Changes.

CHANGES (1958 JAN)

7:3

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 the performance of any part of the work under this contract, whether changed or not changed by any such order, 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. Where the cost of property made obsolete or excess as result of a change is included in the Contractor's claim for adjustment, the Contracting Officer shall have the right to prescribe the manner of disposition of such property. 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.

(End of clause)

In the foregoing clause, the period of “30 days" within which any claim for adjustment must be asserted may be varied in accordance with Departmental procedures. In accordance with 10 U.S.C. 2306(f), prior to the pricing of any change order that is expected to exceed $100,000, except where the price is based on adequate price competition, established catalog or market prices of commercial items sold in substantial quantities to the general public, or prices set by law or regulation, the contracting officer shall require the contractor to furnish a Certificate of Current Cost or Pricing Data (see 3-807.6) and shall assure that the contract includes or is modified to include a defective pricing data clause (see 7-104.29) and the audit clause required by 7-104.41.

7-103.3 Extras.

EXTRAS (1949 JUL)

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.

7-103.4 Variation in Quantity. (a) Insert the following clause.

(End of clause)

VARIATION IN QUANTITY (1949 JUL)

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.

(End of clause)

(b) In accordance with 1-325, insert the following clause.

EXTENT OF QUANTITY VARIATION (1965 APR)

The permissible variation under the clause of the General Provisions entitled "Variation in Quantity" shall be limited to:

Increase (Insert:..

% or None)

7-103.4

ARMED SERVICES PROCUREMENT REGULATION

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