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CONTRACT CLAUSES AND SOLICITATION PROVISIONS
Part 17-Communication Service Contracts

7-1700 Scope of Part. This part prescribes clauses for “General Contracts" with common carriers and with noncommon carriers under which communication services and facilities will be ordered pursuant to Section XXII, Part 10 (see 22-1001).

7-1701 Required Clauses. The following clauses shall be inserted in all "General Contracts" for communication services and facilities. With the exception of the clauses prescribed by 7-1701.1 through 7-1701.15, the clauses prescribed by this paragraph may be varied to meet specific requirements of an appropriate governmental regulatory body or when the basic intent is not changed.

7-1701.1 Definitions. Insert the clause in 7-103.1 with the following additional paragraphs:

(d) The term "Communication Service Authorization" (CSA) means an order for services or facilities under this contract.

(e) The term "Appropriate Governmental Regulatory Body" means the Federal Communications Commission, any state-wide regulatory body, or any body with less than state-wide jurisdiction when operating pursuant to state authority. Regulatory bodies whose decisions are not subject to judicial appeal and regulatory bodies which regulate a company owned by the same entity which creates the regulatory body are not “appropriate governmental regulatory bodies" for the purposes of this contract. (1971 APR)

7-1701.2 Assignment of Claims. Insert the clause in 7-103.8.

7-1701.3 Disputes. Insert the appropriate clause in 7-103.12, with the following additional paragraph in contracts with common carriers.

(c) The provisions of (a) above shall not apply to disputes which are subject to the jurisdiction of an appropriate governmental regulatory body. The provisions of (a) above also shall be subject to the requirements of the law with respect to the rendering of communication services and the collection of tariff charges. (1971 APR)

7-1701.4 Officials Not To Benefit. Insert the clause in 7-103.19.
7-1701.5 Covenant Against Contingent Fees. Insert the clause in 7-103.20.
7-1701.6 Notice to the Government of Labor Disputes. Insert the clause in

7-104.4.

7–1701.7 Military Security Requirements. Insert the clause in 7–104.12. 7-1701.8 Examination of Records by Comptroller General. Insert the clause in

7-104.15.

7-1701.9 Gratuities. Insert the clause in 7-104.16.

7-1701.10 Patent Indemnity. Insert the clause in 7-104.5, designating the text thereof as paragraph (a) and adding the following as (b):

(b) This clause shall apply only to individual CSAs over $5,000 issued under this contract and covering those communications services and facilities which normally are or have been sold or offered for sale by the Contractor to the public, or which can be provided over commercially available equipment, or which involve relatively minor modifications thereto. (1971 APR)

7-1701.11 Notice and Assistance Regarding Patent Infringement. Insert the clause in 7-103.23

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7-1701.11

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7-1701.12 Reporting of Royalties. In accordance with the requirements of 9-110, insert the clause in 7-104.8(a). In contracts with common carriers, revise the clause by deleting the date of the clause and by substituting the following for the first three lines of the clause:

When the response to a solicitation for special construction or special assembly under this contract contains costs or charges for royalties totaling more than $250, the following information shall be furnished with the offer, proposal, or quotation on each separate item of royalty or license fee:

7-1701.13 Convict Labor. Insert the clause in 7-104.17.

7-1701.14 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.

7-1701.15 Equal Opportunity. In accordance with 12-807.1, insert the applicable clause in 7-103.18.

7-1701.16 Access.

ACCESS (1971 APR)

(a) Subject to military security regulations, the Government shall permit the Contractor access at all reasonable times to contractor furnished facilities, provided that if by reason of military necessity the Government is unable to permit access, the Government at its own risk and expense shall maintain these facilities and the Contractor shall not be responsible for the service involving any of these facilities during the period of nonaccess, unless the service failure results from the Contractor's fault or negligence.

(b) During periods when Contractor access is not permitted, cost attributable to loss of or damage to the equipment due to the fault or negligence of the Government shall be reimbursed to the Contractor at mutually acceptable rates. Failure to agree shall be a dispute concerning a question of fact within the meaning of the "Disputes" clause of this contract.

(End of clause)

7-1701.17 Amendment of Contract.

AMENDMENT OF CONTRACT (1971 APR)

Upon thirty (30) days written notice, either party may request reconsideration of this contract for the purpose of revision to conform with requirements of law or to provide for mutually acceptable changes.

(End of clause)

7-1701.18 Obligation of the Government.

OBLIGATION OF THE GOVERNMENT (1971 APR)

The Government incurs no monetary liability under this instrument. The Government's liability shall arise, if appropriate, upon the issuance of a CSA pursuant to the terms of this instrument.

(End of clause)

7-1701.19 Affirmative Action for Disabled Veterans and Veterans of the Vietnam Era. Insert the clause in 7-103.27.

7-1701.20 Affirmative Action for Handicapped Workers. Insert the clause in

7-103.28.

7-1701.21 Clean Air and Water. In accordance with 1-2302.2, insert the clause in 7-103.29.

7-1701.21

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7-1702 Clauses to be Used When Applicable. With the exception of the clauses prescribed by 7-1702.1 through 7-1702.5, 7-1702.14(b), and 7-1702.15(b), the clauses prescribed by this paragraph may be varied to meet specific requirements of an appropriate governmental regulatory body or when the basic intent is not changed.

7-1702.1 Utilization of Small Business Concerns. In accordance with the requirements of 1-707.3(a), insert the clause therein.

7-1702.2 Buy American Act. In accordance with the requirements of 7-104.3, insert the clause therein.

7-1702.3 Approval of Contract. When the contract requires manual approval prior to becoming effective, insert the clause in 7-105.2.

7-1702.4 Patent Rights (License). In accordance with 9-107, insert the appropriate clause as set forth in 7-302.23.

7-1702.5 Authorization and Consent.

(a) Insert the following clause in contracts with common carriers.

AUTHORIZATION AND CONSENT (COMMON CARRIERS) (1971 APR)

The Government hereby gives authorization and consent (without prejudice to its rights of indemnification, if these rights are provided for in this contract) for all use and manufacture, in the performance of any order placed under this contract for communication services and facilities for which rates, charges, and tariffs are not established by a governmental regulatory body, or any part thereof or any amendments thereto or any subcontract thereunder (including any lower-tier subcontract), of any United States patented invention (i) embodied in the structure or composition of any article the delivery of which is accepted by the Government under this contract; or (ii) utilized in the machinery, tools, or methods the use of which necessarily results from compliance by the Contractor or the using subcontractor with (A) specifications or written provisions now or hereafter forming a part of this contract, or (B) specific written instructions given by the Contracting Officer directing the manner of performance. The entire liability to the Government for infringement of a patent of the United States shall be determined solely by the provisions of the indemnity clauses, if any, included in this contract or any subcontract hereunder (including any lower-tier subcontract), and the Government assumes liability for all other infringement to the extent of the authorization and consent herein above granted.

(End of clause)

(b) Insert the clause in 7-103.22 in contracts with noncommon carriers. 7-1702.6 Continuation of Orders. When a communication services contract supersedes another and it is desired to transfer outstanding orders to the new contract, insert the following clause:

CONTINUATION OF ORDERS (1971 APR)

All orders heretofore issued by

under Contract Number

dated

are transferred to this contract and shall continue in full force and effect as though placed under this contract. Orders currently in effect which were heretofore issued by the above Department under other contracts of that Department with the Contractor may likewise be transferred to this contract.

(End of clause)

7-1702.7 Facilities and Services To Be Furnished. Insert the following clause in contracts with common carriers:

7-1702.7

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FACILITIES AND SERVICES TO BE FURNISHED-COMMON CARRIERS (1971 APR) (a) The Contractor shall furnish any classes of services or facilities that he offers or furnishes under published tariffs.

(b) When it is mutually agreed that the Contractor shall furnish nontariffed services, such services may be ordered in the manner provided in the clause entitled "Ordering of Facilities and Services." These may include the engineering, installation, alteration or maintenance of facilities owned either by the Contractor or by the Government, and may be located on or off Government premises or at any of its establishments.

(c) The Contractor agrees to interconnect his facilities with any Government-owned or furnished communications equipment, facilities or transmission media, in accordance with established technical criteria for assuring continuity of service and/or traffic without damage to or degradation of commercial facilities, upon request of the Contracting Officer.

(End of clause)

7-1702.8 Ordering of Facilities and Services. Insert the following clause in contracts with common carriers:

ORDERING OF FACILITIES AND SERVICES-COMMON CARRIERS (1971 APR)

All services and facilities furnished, as provided in the clause entitled "Facilities and Services To Be Furnished-Common Carriers" shall be ordered by the Contracting Officer on numbered CSAS referring to this contract and specifying the services and facilities desired, the premises involved, the address where bills for service shall be sent, the Disbursing Officer, and any other pertinent details. Acceptance of orders by the Contractor shall be acknowledged by (i) commencing performance or (ii) written acceptance by a duly authorized representative. The Contractor shall sign and promptly return the order to the Government when required by the Contracting Officer. Orders pursuant to this clause which are unacceptable to the Contractor shall be returned to the Contracting Officer within days of receipt stating the reasons therefor. (End of clause)

7-1702.9 Rates, Charges, and Services-Common Carriers. Insert the following clause in contracts with common carriers:

RATES, CHARGES, AND SERVICES-COMMON CARRIERS (1971 APR)

(a) The services and facilities furnished hereunder shall be in accordance with all applicable tariffs, rates, charges, rules, regulations or requirements (i) lawfully established by an appropriate governmental regulatory body; and (ii) applicable to service and facilities furnished or offered by the Contractor to the general public or his subscribers; or at rates, terms and conditions of service and facilities furnished or offered by the Contractor to the general public or his subscribers; or at rates, terms and conditions of service as may be agreed upon, subject, when appropriate, to jurisdiction of an appropriate governmental regulatory body. For nontariffed services which are furnished, the Government shall be charged at the lowest rate and under the most favorable terms and conditions for similar service and facilities offered to any other customer.

(b) Recurring charges for services and facilities furnished under this contract shall, in each case, commence with satisfactory establishment of service or provision of facilities or equipments and are payable monthly in arrears.

(c) Subject to the "Cancellation or Termination of Orders-Common Carriers" clause, the Government may discontinue the use of any service or facilities furnished hereunder at any time. Upon discontinuance, the Government shall pay to the Contractor all charges for services and facilities adjusted to the effective date of discontinuance.

(d) Expediting charges are expenditures necessary to secure services earlier than those services normally would be provided, such as costs of overtime pay, or special shipment. Expediting charges shall be paid only when (i) payment thereof is provided for in the tariff established by an appropriate regulatory authority or (ii) such charges are specially authorized in an expediting CSA. When authorized, expediting charges shall be the additional costs incurred by the Contractor and the subcontractor.

7-1702.9

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CONTRACT CLAUSES AND SOLICITATION PROVISIONS

(e) When the services normally provided are technically unacceptable and the requirement necessitates the development, fabrication or manufacture of special equipment, the Government may provide such equipment or may direct the Contractor to procure the equipment or facilities upon a competitive basis to the extent practicable.

(f) If at any time the Government defers or changes its orders for any of the services hereunder but does not cancel or terminate them, the amount paid or payable to the Contractor for providing the services deferred or modified shall be equitably adjusted in accordance with applicable tariffs filed by the Contractor with the regulatory commission and in effect at the time of the deferral or change or, if no tariffs are in effect, by written agreement between the Government and the Contractor. Failure to agree on any adjustment shall be a dispute concerning a question of fact within the meaning of the "Disputes" clause.

(End of clause)

7-1702.10 Payment.

(a) Insert the following clause in each contract with common carriers.

PAYMENT-COMMON CARRIER (1971 APR)

The Government shall pay the Contractor, in arrears, upon submission of invoices for services and facilities furnished in accordance with the provisions of CSAs issued under this contract, the rates and charges for such services and facilities as set forth in the clause entitled "Rates, Charges and Services."

(End of clause)

(b) Insert the clause in 7-103.7 in contracts with noncommon carriers. 7-1702.11 Tariff Information. Insert the following clause in contracts with common carriers.

TARIFF INFORMATION (1971 APR)

(a) A copy of the Contractor's current existing tariffs (including changes) shall be furnished promptly to the Contracting Officer upon request. As early as possible prior to the filing of any application to a Federal, state or any other regulatory agency seeking the establishment of, or changes in, rates, charges, services, or any other regulations relating to any tariff or any of the facilities or services to be furnished solely or primarily to the Government, the Contractor shall notify the Contracting Officer thereof and shall furnish a copy of the application. Upon request therefor, the Contractor shall furnish a copy of all information, material and data developed or prepared in support of or in connection with such application.

(b) The Contractor also shall notify the Contracting Officer of any such application which may be filed with an appropriate governmental regulatory body by anyone other than the Contractor which affects or will affect the rate or conditions of services rendered or to be rendered promptly after the Contractor himself learns of that application. The foregoing requirements shall apply also to all such applications pending on the effective date of this contract.

(End of clause)

7-1702.12 Cancellation or Termination of Orders-Common Carriers. Insert the following clause in all contracts with common carriers.

CANCELLATION OR TERMINATION OF ORDERS-COMMON CARRIERS (1971 APR)

(a) In the event the Government cancels, in whole or in part, any of the services which the Contractor is requested to provide under this contract, prior to the time such services are made available to the Government, or in the event that the Government terminates any of these services, in whole or in part, after they are made available to the Government, the Government shall reimburse the Contractor for the actual nonrecoverable costs which the Contractor has

7-1702.12

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