CONTRACT CLAUSES AND SOLICITATION PROVISIONS

7-702.28 Disputes. Insert the clause in 7-103.12.

7-702.29 Military Security Requirements. In accordance with 7-104.12, insert the clause therein, deleting paragraphs (c) and (d), and substituting the following paragraphs (c) and (d).

(c) If, subsequent to the date of this contract, the security classifications or security requirements under this contract are changed by the Government as provided in this clause, and if such change causes an increase or decrease in the estimated cost of performance of this contract, the estimated cost, to the extent appropriate, shall be subject to an equitable adjustment. Any such equitable adjustment shall be accomplished in the manner set forth in the "Changes" clause in this contract.

(d) The Contractor agrees to insert, in all subcontracts hereunder which involve access to classified information, provisions which shall conform substantially to the language of this clause, including this paragraph (d) but excluding (c) of this clause. The Contractor may insert in any such subcontract, and any such subcontract entered into may contain, in lieu of paragraph (c) of this clause, provisions which permit equitable adjustments to be made in the subcontract price or in the estimated cost and fixed fee of the subcontract (as appropriate to the type of subcontract involved) on account of changes in security classifications or requirements made under the provisions of this clause subsequent to the date of the subcontract involved. (1973 APR)

7-702.30 Authorizaton and Consent. In accordance with 9-102, insert the clause in 7-103.22 or 7-302.21.

7-702.31 Notice and Assistance Regarding Patent and Copyright Infringement. In accordance with 9-104, insert the clause in 7-103.23.

7-702.32 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.

7-702.33 Subcontracts. Insert the clause in 7-203.8 except that paragraph (a) shall be appropriately modified to delete references to facilities and special tooling.

7-702.34 Utilization of Small Business Concerns. In accordance with 1-707.3(a), insert the clause in 7-104.14(a).

7-702.35 Utilization of Labor Surplus Area Concerns. In accordance with 1-805.3(a), insert the clause in 7-104.20(a).

7-702.36 Buy American Act. In accordance with 7-104.3, insert the clause therein. When the contract involves construction work, in accordance with 7-602.20 and 7-602.24 also insert the clauses therein.

7-702.37 Assignment of Claims. In accordance with 7-103.8, insert the clause therein.

7-702.38 Renegotiation. In accordance with 7-103.13, insert the appropriate clause therein.

7-702.39 Officials Not To Benefit. Insert the clause in 7-103.19. 7-702.40 Gratuities. In accordance with 7-104.16, insert the clause therein. 7-702.41 Covenant Against Contingent Fees. Insert the clause in 7-103.20. 7-702.42 Payment for Overtime Premiums. In accordance with 12-102.4, insert the clause in 7-203.27.

7-702.43 Convict Labor. In accordance with 12-202 and 12-203, insert the clause in 7-104.17.

7-702.44 Equal Opportunity. In accordance with 12-807.1, insert the applicable clause in 7-103.18.

7-702.44

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7:361

7-702.45 Walsh-Healey Public Contracts Act. In accordance with Section XII, Part 6, insert the clause in 7-103.17.

7-702.46 Contract Work Hours and Safety Standards Act-Overtime Compensation. In accordance with 12-301, 12-302, and 12-306, insert the clauses in 7-103.16.

7-702.47 Price Reduction for Defective Cost or Pricing Data. In accordance with 7-104.29, insert the appropriate clause therein.

7-702.48 Audit by Department of Defense. In accordance with 7-104.41(a), insert the clause therein as amended by 7-104.41(b).

7-702.49 Subcontractor Cost and Pricing Data. In accordance with 7-104.42, insert the appropriate clause therein.

7-702.50 Competition in Subcontracting. In accordance with 7-104.40, insert the clause therein.

7-702.51 Equal Opportunity Pre-Award Clearance of Subcontracts. In accordance with 23-201.4, insert the clause in 7-104.22.

7-702.52 Minority Business Enterprises. In accordance with 1-332, insert the appropriate clause or clauses in 7-104.36.

7-702.53 Affirmative Action for Disabled Veterans and Veterans of the Vietnam Era. Insert the clause in 7-103.27.

7-702.54 Affirmative Action for Handicapped Workers. Insert the clause in

7-103.28.

7-702.55 Clean Air and Water. In accordance with 1-2302.2, insert the clause in 7-103.29.

7-702.56 Notice of Intent to Disallow or Not Recognize Costs. Insert the clause in 7-203.35.

7-703 Required Clauses for Facilities Acquisition Contracts. The following contract clauses shall be inserted in all facilities acquisition contracts.

7-703.1 Definitions. Insert the clause required by 7-702.1. Additional definitions may be included in such clause provided they are not inconsistent with such clause or the provisions of this Regulation.

7-703.2 Facilities To Be Provided. Insert the clause in 7-702.2.

7-703.3 Late Delivery, Diversion, and Substitution. Insert the clause in

7-702.3.

7-703.4 Changes. Insert the clause in 7-702.4.

7-703.5 Representations and Warranties. Insert the clause in 7-702.5. 7-703.6 Inspection. In accordance with 8-708, insert the clause in 7-702.6. 7-703.7 Excusable Delays. Insert the clause in 7-203.11, changing

"Termination" in the last sentence to "Termination of Work."

7-703.8 Government Bills of Lading. Insert the clause in 7-702.9.

7-703.9 Allowable Cost and Payment.

(a) In accordance with 7-702.10, insert the clause therein.

(b) If desired, the following additional provision may be added after the first sentence of paragraph (j) of this clause.

After payment of an amount equal to eighty percent (80%) of the total estimated cost of performance of this contract set forth in the Schedule, further payment on account of allowable cost shall be withheld until a reserve of either one percent (1%) of such total estimated cost, or one hundred thousand dollars ($100,000) whichever is less, shall have been set aside.

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CONTRACT CLAUSES AND SOLICITATION PROVISIONS

(c) If desired, the following additional paragraph may be added to this clause as paragraph (L), in which case paragraphs (L), and (m) of the clause in 7-702.10 shall be redesignated paragraphs (m) and (n).

(L) On receipt and approval of the invoice or voucher designated by the Contractor as the "completion invoice" or "completion voucher" and upon compliance by the Contractor with all relevant provisions of this contract (including, without limitation, the provisions relating to patents and the provisions of (m) below) the Government shall promptly pay to the Contractor any balance of allowable cost. The completion invoice or voucher shall be submitted by the Contractor promptly following completion of (i) all work under this contract, or (ii) such work involving acquisition, construction, or installation of the Facilities as may then be specified in the Schedule, but in no event later than one (1) year (or such longer period as the Contracting Officer may in his discretion approve in writing) from the date of such completion.

7-703.10 Limitation of Cost. Insert the clause in 7-702.11.

7-703.11 Examination of Records by Comptroller General. In accordance with 7-104.15, insert the clause therein.

7-703.12 Title. Insert the clause in 7-702.15, except that the third sentence of paragraph (a) shall be deleted.

7-703.13 Access. Insert the clause in 7-702.16.

7-703.14 Liability for the Facilities. Insert the clause in 7-702.18, except that the phrase "in accordance with the clause of the contract entitled 'Maintenance'," in paragraph (a)(ii) shall be deleted, and the phrase "in accordance with sound industrial practice” inserted in lieu thereof.

7-703.15 Insurance-Liability to Third Persons. In accordance with 7-702.19, insert the clause in 7-203.22, except as otherwise provided in 7-402.26 when the contractor claims partial or total immunity from tort liability as a state agency or as a charitable institution.

7-703.16 Indemnification of the Government. Insert the clause in 7-702.20. 7-703.17 Stop Work Orders. Insert the clause in 7-702.21.

7-703.18 Termination of Work. In accordance with 7-702.22, insert the contract clause therein.

7-703.19 Failure To Perform. Insert the clause in 7-702.27. 7-703.20 Disputes. Insert the appropriate clause in 7-103.12.

7-703.21 Military Security Requirements. In accordance with 7-702.29, insert the clause called for therein.

7-703.22 Authorization and Consent. In accordance with 9-102, insert the clause in 7-103.22 or 7-302.21.

7-703.23 Notice and Assistance Regarding Patent and Copyright Infringement. In accordance with 9-104, insert the clause in 7-103.23.

7-703.24 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.

7-703.25 Subcontracts. Insert the clause in 7-203.8, except that paragraph (a) shall be appropriately modified to delete references to facilities and special tooling.

7-703.26 Utilization of Small Business Concerns. In accordance with 1-707.3(a), insert the clause in 7-104.14(a).

7-703.27 Utilization of Labor Surplus Area Concerns. In accordance with 1-805.3(a), insert the clause in 7-104.20(a).

7-703.27

ARMED SERVICES PROCUREMENT REGULATION

CONTRACT CLAUSES AND SOLICITATION PROVISIONS

7-703.28 Buy American Act. In accordance with 7-104.3, insert the clause therein. When the contract involves construction work, in accordance with 7-602.20 and 7-602.24 also insert the clauses therein.

7-703.29 Assignment of Claims. In accordance with 7-103.8, insert the clause therein.

7-703.30 Renegotiation. In accordance with 7-103.13, insert the appropriate clause therein.

7-703.31 Officials Not To Benefit. Insert the clause in 7-103.19.

7-703.32 Gratuities. In accordance with 7-104.16, insert the clause therein. 7-703.33 Covenant Against Contingent Fees. Insert the clause in 7-103.20. 7-703.34 Payment for Overtime Premiums. In accordance with 12-102.4, insert the clause in 7-203.27.

7-703.35 Convict Labor. In accordance with 12-202, insert the clause in

7-104.17.

7-703.36 Equal Opportunity. In accordance with 12-807.1, insert plicable clause in 7-103.18.

the ap

7-703.37 Walsh-Healey Public Contracts Act. In accordance with Section XII, Part 6, insert the clause in 7-103.17.

7-703.38 Contract Work Hours and Safety Standards Act Overtime Compensation. In accordance with 12-301, 12-302, and 12-306, insert the clauses in 7-103.16.

7-703.39 Supersedure.

SUPERSEDURE (1964 SEP)

When the acquisition, construction, or installation of the Facilities called for by this contract, or any useable increment thereof, is completed and accepted by the Government, such facilities shall thereafter be subject to the provisions of the related facilities contract by which the use of such items by the Contractor is authorized.

(End of clause)

7-703.40 Price Reduction for Defective Cost or Pricing Data. In accordance with 7-104.29, insert the appropriate clause therein.

7-703.41 Audit by Department of Defense. In accordance with 7-104.41(a), insert the clause therein as amended by 7-104.41(b).

7-703.42 Subcontractor Cost and Pricing Data. In accordance with 7-104.42, insert the appropriate clause therein.

7-703.43 Competition in Subcontracting. In accordance with 7-104.40, insert the clause therein.

7-703.44 Inspection System. When it is desired to require contractors to maintain an inspection system in accordance with Military Specification MILI-45208 (see 14-303), insert the following clause.

INSPECTION SYSTEM (1967 AUG)

The inspection system which the Contractor is required to maintain, as provided in paragraph (e) of the "Inspection" clause of this contract, shall be in accordance with the edition of Military Specification MIL-I-45208 in effect on the date of this contract.

(End of clause)

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7-703.45 Equal Opportunity Pre-Award Clearance of Subcontracts. In accordance with 23-201.4, insert the clause in 7-104.22.

7-703.46 Minority Business Enterprises. In accordance with 1-332, insert the appropriate clause or clauses in 7-104.36.

7-703.47 Affirmative Action for Disabled Veterans and Veterans of the Vietnam Era. Insert the clause in 7-103.27.

7-703.48 Property Control. Insert the clause in 7-702.17.

7-703.49 Affirmative Action for Handicapped Workers. Insert the clause in

7-103.28.

7-703.50 Clean Air and Water. In accordance with 1-2302.2, insert the clause in 7-103.29.

7-703.51 Notice of Intent to Disallow or Not Recognize Costs. Insert the clause in 7-203.35.

7-704 Required Clauses for Facilities Use Contracts. The following clauses shall be inserted in all facilities use contracts except that the clauses in 7-706 may be used in facilities use contracts with nonprofit educational institutions.

7-704.1 Definitions. Insert the clause required by 7–702.1. Additional definitions may be included in such clause provided they are not inconsistent with such clause or the provisions of this Regulation.

7-704.2 Use and Charges. Insert the clause in 7-702.12. 7-704.3 Allowable Cost and Payment.

ALLOWABLE COST AND PAYMENT (1965 JUL)

(a) For the performance of any work, duty, or obligation by the Contractor under this contract, which is provided herein to be at Government expense, the Government shall pay the Contractor the cost thereof, determined by the Contracting Officer to be allowable in accordance with (i) Section XV, Part 5, of the Armed Services Procurement Regulation as in effect on the date of this contract; and (ii) the terms of this contract.

(b) Except as otherwise specifically provided in this contract, the failure of this contract to provide for reimbursement shall not preclude the Contractor from including, as part of the price or cost under any other Government contract or subcontract, an allocable portion of the costs incurred in the performance of any work, duty, or obligation under this contract which are not reimbursable hereunder.

(End of clause)

7-704.4 Limitation of Cost. Insert the clause in 7-702.11.

7-704.5 Examination of Records by Comptroller General. In accordance with 7-104.15, insert the clause therein.

7-704.6 Location of the Facilities. Insert the clause in 7-702.8.

7-704.7 Maintenance. Insert the clause in 7-702.14.

7-704.8 Inspection. Insert the clause in 7–702.6.

7-704.9 Title. Insert the clause in 7-702.15, except that the following paragraph (a) shall be substituted for the corresponding paragraph in that clause:

(a) Title to the Facilities shall remain in the Government. Title to parts replaced by the Contractor in carrying out its normal maintenance obligations pursuant to the clause of this contract entitled "Maintenance" shall pass to and vest in the Government upon completion of their installation in the Facilities.

7-704.10 Access. Insert the clause in 7-702.16.

7-704.11 Property Control. Insert the clause in 7-702.17.

7-704.12 Representations and Warranties. Insert the clause in 7-702.5.

7-704.12

ARMED SERVICES PROCUREMENT REGULATION