Code of Federal Regulations: Containing a Codification of Documents of ...

CONTRACT CLAUSES AND SOLICITATION PROVISIONS

7-704.13 Government Bills of Lading. Insert the clause in 7-702.9. 7-704.14 Liability for the Facilities. Insert the clause in 7-702.18.

7-704.15 Indemnification of the Government. Insert the clause in 7-702.20, deleting the phrase "Except as provided in the 'Insurance Liability to Third Persons' clause" in the first sentence.

7-704.16 Notice of Use of the Facilities. Insert the clause in 7-702.23. 7-704.17 Termination of the Use of the Facilities. Insert the clause in

7-702.24.

7-704.18 Period of This Contract. Insert the clause in 7-702.25.

7-704.19 Disposition of the Facilities. Insert the clause in 7-702.26.

7-704.20 Failure To Perform. Insert the clause in 7-702.27, except that the phrase "Subject to the provisions of the clause hereof entitled 'Excusable Delays'," shall be deleted in paragraph (a).

7-704.21 Disputes. Insert the clause in 7–103.12.

7-704.22 Military Security Requirements. In accordance with 7-702.29, insert the clause called for therein except that “ASPR 7-702.4" shall be substituted for "this contract" in the second sentence of paragraph (c).

7-704.23 Assignment of Claims. In accordance with 7-103.8, insert the clause therein.

7-704.24 Officials Not To Benefit. Insert the clause in 7-103.19. 7-704.25 Gratuities. In accordance with 7-104.16, insert the clause therein. 7-704.26 Covenant Against Contingent Fees. Insert the clause in 7-103.20. 7-704.27 Payment for Overtime Premiums. In accordance with 12-102.4, insert the clause in 7-203.27.

7-704.28 Convict Labor. In accordance with 12-202 and 12-203, insert the clause in 7-104.17.

7-704.29 Equal Opportunity. In accordance with 12-807.1, insert the applicable clause in 7-103.18.

7-704.30 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.

7-704.31 Supersedure.

SUPERSEDURE (1964 SEP)

(a) Facilities heretofore provided to the Contractor pursuant to the contracts specified in the Schedule shall become subject to the terms of this contract upon its effective date. The terms of the contracts by which such Facilities may have been provided to the Contractor are hereby superseded with respect to such Facilities, except for rights and obligations which may have accrued under such other contract prior to the effective date hereof.

(b) Each item of Facilities hereafter provided to the Contractor under any contract which so specifies shall become subject to the terms of this contract upon the completion of its construction, acquisition, and installation, or upon its availability for use, whichever first occurs, except as otherwise provided in the contract or other document by which such Facilities are provided to the Contractor.

(End of clause)

7-704.32 Price Reduction for Defective Cost or Pricing Data. In accordance with 7-104.29, insert the appropriate clause therein.

7-704.33 Audit by Department of Defense. In accordance with 7-104.41(a), insert the clause therein as amended by 7-104.41(b).

7-704.33

ARMED SERVICES PROCUREMENT REGULATION

CONTRACT CLAUSES AND SOLICITATION PROVISIONS

7-704.34 Subcontractor Cost and Pricing Data. In accordance with 7–104.42, insert the appropriate clause therein.

7-704.35 Competition in Subcontracting. In accordance with 7-104.40, insert the clause therein.

7-704.36 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.

7-704.37 Affirmative Action for Disabled Veterans and Veterans of the Vietnam Era. Insert the clause in 7-103.27.

7-704.38 Affirmative Action for Handicapped Workers. Insert the clause in

7-103.28.

7-704.39 Clean Air and Water. In accordance with 1-2302.2, insert the clause in 7-103.29.

7-704.40 Utilization of Small Business Concerns. In accordance with 1-707.3(a), insert the clause in 7-104.14(a).

7-704.41 Notice of Intent to Disallow or Not Recognize Costs. Insert the clause in 7-203.35.

7-705 Clauses To Be Used When Applicable.

7-705.1 Rights in Data. In accordance with 7-104.9, insert the appropriate clause, or clauses, therein. Particular attention shall be given to obtaining data when data are necessary to the use or disposal of facilities.

7-705.2 Filing of Patent Applications. In accordance with 9–106, insert the clause in 7-104.6.

7-705.3 Priorities, Allocations, and Allotments. In accordance with 1-307.2, insert the clause in 7-104.18.

7-705.4 Transfer of Title to the Facilities. In accordance with 4-116.4, the following clause may be inserted in facilities contracts.

TRANSFER OF TITLE TO THE FACILITIES (1964 SEP)

Notwithstanding the provisions of the clause of this contract entitled “Title", the Contracting Officer may at any time during the term of this contract, or upon completion or termination, transfer title to equipment to the Contractor upon such terms and conditions as may be agreed upon; provided, that the Contractor shall not under any Government contract, or subcontract thereunder, charge for any depreciation, amortization, or use of such equipment as is donated under this clause. Upon the transfer of title to equipment under this clause, such equipment shall cease to be Government property.

(End of clause)

7-705.5 Labor Standards for Construction Work. Except as provided in 18-703.2 and 18-703.3, insert the clauses in 7-602.23(a) if the contract involves construction as described in 12-106.1 and 18-701. If such construction work may be required but it is not certain, insert the following clause. (See 18-704.2(1) with regard to the Contracting Officer's responsibility for obtaining wage determinations.)

LABOR STANDARDS FOR CONSTRUCTION WORK (1977 DEC)

(a) In the event that construction, alteration, or repair (including painting and decorating) of public buildings or public works is to be performed hereunder, the Contractor shall comply with the following listed clauses:

(i) "Davis-Bacon Act (40 U.S.C. 276a to a7)," 7-602.23(a)(i);

(ii) "Contract Work Hours and Safety Standards Act-Overtime Compensation (40 U.S.C. 327-333)," 7-602.23(a)(ii);

7-705.5

ARMED SERVICES PROCUREMENT REGULATION

CONTRACT CLAUSES AND SOLICITATION PROVISIONS

(i) credits to, or adjustment of the prices of, the related contracts, subcontracts, or purchase orders benefiting from the use of the modernized or replacement equipment; or

(ii) payment to the Government through the Contracting Officer having cognizance of the Government production and research property; or

(iii) such other means as may be mutually agreed to.

(End of clause)

7-705.23 Aircraft, Missile, and Space Vehicle Accident Reporting and Investigation. In accordance with 7-104.81, insert the clause therein.

7-705.24 Safety Precautions for Ammunition and Explosives. In accordance with 7-104.79, insert the clause therein.

7-705.25 Notice of Radioactive Materials. In accordance with 7-104.80, insert the clause therein.

7-705.26 Procurement of Miniature and Instrument Ball Bearings. In accordance with 1-2207.3, insert the clause in 7-104.38.

7-705.27 Payment of Interest on Contractors' Claims. In accordance with 1-333, insert the clause in 7-104.82.

7-705.28 Cost Accounting Standards. In accordance with 3-1204, insert the clauses in 7-104.83.

7-705.29 Term of Performance or Delivery Date. When applicable, a clause in accordance with 7-104.92 may be used.

7-705.30 Preference for United States Flag Air Carriers. In accordance with 1-336.1(b), insert the clause in 7-104.95.

7-705.31 Privacy Act. In accordance with 1-327.1, insert the clause in

7-104.96.

7-705.32 Preference for Domestic Specialty Metals. In accordance with 7-104.93, insert the applicable clause therein.

7-705.33 Use of Small Business Concerns as Subcontractors. In accordance with the provisions of 13-601.1(f), insert the following clause.

USE OF SMALL BUSINESS CONCERNS AS SUBCONTRACTORS (1977 JAN)

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Items of work which have been identified by the Contracting Officer as being capable of formance by small business concerns are listed in the schedule. The Contractor, in addition to his commitment under the clause, “Utilization of Small Business Concerns", agrees that, to the extent such items of work are to be performed by subcontract, he shall place such subcontracts with responsible small business concerns. In the event that responsible small business concerns are not available or are not able to perform the work within the time required or at a fair and reasonable price, the Contractor, with the prior written concurrence of the Contracting Officer, may place such subcontracts with other than small business concerns.

(End of clause)

7-705.34 Geographic Distribution of Defense Subcontract Dollars. cordance with 1-340, insert the clause in 7-104.78.

7-705.34

ARMED SERVICES PROCUREMENT REGULATION

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CONTRACT CLAUSES AND SOLICITATION PROVISIONS

7-705.13 Advance Payments. In accordance with Appendix E, Part 4, insert the clause in 7-104.34 but substitute paragraphs (3) and (5) from the clause in 7-204.25 for paragraph (3) and (5) of the clause in 7–104.34.

7-705.14 General Services Administration Supply Sources. In accordance with 7-204.28, insert the clause therein, deleting the last sentence.

7-705.15 Order of Precedence. In accordance with 3-501(b)Sec.C(xxxi), insert the clause in 7-2003.41.

7-705.16 Duty-Free Entry. In accordance with 6-603.2 and 6-603.3, insert either or both of the clauses in 7-104.31.

7-705.17 United States Products and Services (Balance of Payments Program). In accordance with 6-806.4, insert the clause in 7-2003.53.

7-705.18 Identification of Expenditures in the United States. In accordance with 6-807, insert the clause in 7-104.58.

7-705.19 Reserved.

7-705.20 Insurance. In accordance with 10-405 and 10-501, insert the clause in 7-104.65.

7-705.21 Use of Excess and Near-Excess Currency. In accordance with 6-1110, insert the clause in 7-104.66.

7-705.22 Facilities Equipment Modernization. Insert the following clause in any bilateral modification of an existing facilities contract, and in any new facilities contract, under which the Government provides modernized or replacement facilities.

FACILITIES EQUIPMENT MODERNIZATION (1976 JUL)

(a) In consideration of the Government providing, as set forth in this contract, for modernization or replacement of Government-owned equipment being used or to be used by the Contractor in the performance of Government firm-fixed-price contracts or subcontracts, or fixed-price contracts or subcontracts with economic price adjustment provisions, the Contractor agrees to return to the Government the net cost savings actually realized from the use of the modernized or replacement equipment on all such contracts or subcontracts entered into prior to the expiration of the three-year period following the date such equipment is placed in production, except (i) formally advertised contracts entered into subsequent to the date such equipment is placed in production, and (ii) contracts or subcontracts which specifically provide that they have been priced on the basis of anticipated use of such equipment.

(b)(1) The Contractor shall maintain adequate records for the implementation of this clause. The Contractor shall make such records available at its office for inspection, audit or reproduction by any authorized representative of the Contracting Officer. Within fourteen (14) months after the modernized or replacement equipment has been placed in production, the Contractor shall file with the Administrative Contracting Officer cognizant of the Government production and research property four (4) completed copies of DD Form 1651 (Industrial Equipment Modernization Program-Post Analysis Report).

(2) When the Contractor authorizes a subcontractor to use the modernized or replacement equipment, he shall require the subcontractor to maintain records, to make them and additional information available to the Contracting Officer, and to file four (4) copies of DD Form 1651, in the manner prescribed in (1) above.

(c) Records shall generally be acceptable if they are maintained for the equipment under established accounting practices and permit a fair estimation of the net cost savings realized. Net cost savings realized shall be determined by a comparison of the Contractor's cost experience in the operation of the equipment before and after modernization.

(d) Amounts due the Government under this clause shall be returned by the Contractor, as directed by the Administrative Contracting Officer by:

7-705.22