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CONTRACT CLAUSES AND SOLICITATION PROVISIONS 7-1909.29 Clean Air and Water. In accordance with 1-2302.2, insert the clause in 7-103.29.

7-1909.30 Notice of Intent to Disallow or Not Recognize Costs. Insert the clause in 7-203.35.

7-1910 Clauses To Be Used When Applicable in Cost Reimbursement Service Contracts.

7-1910.1 Clauses for Cost Reimbursement Service Contracts Involving Construction Work.

(a) In accordance with 12-106 and 18–703, insert the clauses in 7-602.23.

(b) In accordance with 7-602.20 and 7-602.24, insert the clauses therein in addition to the clause in 7-104.3.

7-1910.2 Workmen's Compensation and War Hazard Insurance Overseas. In accordance with 10-403, insert the clauses in 7-104.2(a) and/or 7-104.2(b) depending on whether all contract employees are subject to the Defense Base Act or whether the Act has been waived as to all or part of the contract employees. Also insert the clause Reimbursement for War Hazard Losses in 7-104.2(c) and the language at 10-502(b) and (c) according to the instructions stated in those paragraphs.

7-1910.3 Continuity of Services. When difficulties are anticipated on either the part of the Government or contractors during the transition period from one service contractor to its successor, a clause substantially as follows may be included.

CONTINUITY OF SERVICES

The Contractor recognizes that the services provided by this contract are vital to the Government's overall effort, that continuity thereof must be maintained at a consistently high level without interruption, that upon expiration of this contract a successor-either the Government or another Contractor-may continue these services, that the successor, be it the Government or another Contractor, will need phase-in training, and that the Contractor must give his best efforts and cooperation in order to effect an orderly and efficient transition to a successor."

or agrees, upon written notification by the Contracting Officer, to provide phase-in, phase-out (PIPO) services for up to sixty (60)* days after this contract expires. After notification, the Contractor agrees to negotiate in good faith with a successor in determining the nature and extent of the PIPO services, including a mutually acceptable detailed plan for PIPO operations. The plan shall design a training program and specify a date for shifting the responsibility to the successor for each division of work set forth in the plan, and shall be subject to the approval of the Contracting Officer. The Contractor shall provide sufficient experienced personnel during the PIPO period to insure that the services called for by this contract are maintained at a high level of proficiency

The Contractor shall be reimbursed for all reasonable PIPO costs-those costs accruing within the agreed period after contract expiration which result from PIPO operations—and will receive a fee (profit) not to exceed a pro rata portion of the fee (profit) under this contract.

The Contractor agrees to cooperate with the successor, whether it be the Government or another Contractor, in allowing as many personnel as practicable to remain on the job in order to enhance the continuity and consistency of the services called for by this contract. Toward that end the Contractor agrees to disclose necessary personnel records and to allow its successor to conduct on-site interviews with its employees. If said employees are agreeable to the change and are accepted by the successor, then the Contractor shall release them at a mutually acceptable date and shall negotiate the transfer of their earned fringe benefits to the successor.

(End of clause)
*This limitation may be varied from 30 to 90 days.

7-1910.3

ARMED SERVICES PROCUREMENT REGULATION

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CONTRACT CLAUSES AND SOLICITATION PROVISIONS

7-1910.4 Notice to the Government of Labor Disputes. In accordance with 7-104.4, insert the clause therein.

7-1910.5 Reserved.

7–1910.6 Filing of Patent Applications. In accordance with 9-106, insert the clause in 7-104.6.

7-1910.7 Patent Rights. When experimental, developmental or research work may be performed under the contract, insert the appropriate clause in 7-302.23.

7-1910.8 Communist Areas. In accordance with 6-403, insert the clause in 7-103.15.

7-1910.9 Reporting of Royalties. In accordance with 9-110, insert the clause in 7-104.8(a).

7-1910.10 Rights in Data. In accordance with 7-104.9, insert the appropriate clause, or clauses, therein.

7-1910,11 Quality Program. In accordance with 14-304, insert the clause in 7-104.28.

7.-1910.12 Military Security Requirements. In accordance with 7-104.12(a), insert the clause therein with the modification specified in 7-204.12.

7-1910.13 Gratuities. Insert the clause in 7-104.16, except in contracts and purchase orders with foreign governments obligating solely funds other than those contained in Department of Defense Appropriation Acts.

7-1910.14 Reserved.

7-1910.15 Ocean Transport of Government Owned Supplies. In accordance with 1-1404(a), insert the clause in 7-104.19(a).

7-1910.16 Limitation on Withholding of Payments. In accordance with 7-104.21, insert the clause therein.

7-1910.17 Flighi Risks. In accordance with 10-504, insert the clause in 7-204.21.

7-1910,18 Taxes. In accordance with 11-403.2, insert the appropriate clause in 7-204.24.

7-1910.19 Advance Payments. When advance payments are to be made in accordance with Appendix E, Part 4, insert the appropriate clauses in 7-104.34.

7-1910.20 Frequency Authorization. In accordance with 7-104.61, insert the clause therein.

7-1910.21 Interest. In accordance with E-620, insert the clause in 7-104.39.

7-1910.22 Value Engineering. In accordance with 1-1702, insert the appropriate clauses in 7-104.44, substituting the clause paragraph (e)(1)(ii) in 7–204.32(b) or (c) for paragraph (e)(1)(ii) of the clause in 7-104.44 and as modified by clause paragraph (k) in 7-1903.51.

7-1910.23 Price Reduction for Defective Cost or Pricing Data. In accordance with 7-104.29, insert the appropriate clause therein.

7-1910.24 Subcontractor Cost and Pricing Data. In accordance with 7-104.42, insert the appropriate clause therein.

7-1910.25 Examination of Records by Comptroller General. In accordance with 7-104.15, insert the clause therein.

7-1910.26 Special Test Equipment. Insert the clause in 7-104.26 in negotiated contracts which provide that the contractor will acquire special test equipment for the Government but do not specify the items to be acquired (see 13-306.3).

7-1910.26

ARMED SERVICES PROCUREMENT REGULATION

40-0800 - 80 - 36

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7-1910.27 Order of Precedence. In accordance with 3-501(b)Sec.C(xxxi), insert the clause in 7-2003.41.

7-1910.28 United States Products and Services (Balance of Payments). In accordance with 6-806.4, insert the clause in 7-2003.53.

7-1910.29 Identification of Expenditures in the United States. In accordance with 6-807, insert the clause in 7-104.58.

7-1910.30 Use of Excess and Near Excess Currency. In accordance with 6-1110, insert the clause in 7-104.66.

7–1910.31 Service Contract Act of 1965. In accordance with 7-1903.41, insert the appropriate clause therein.

7-1910.32 Convict Labor. In accordance with Section XII, Part 2, insert the clause in 7-104.17.

7-1910.33 Safety Precautions for Ammunition and Explosives. In accordance with 7-104.79, insert the clause therein.

7-1910.34 Management Systems Requirements. In accordance with 16-827.1, insert the clause in 7-104.50.

7-1910.35 Payment of Interest on Contractors' Claims. In accordance with 1-333, insert the clause in 7-104.82

7-1910.36 Cost Accounting Standards. In accordance with 3-1204, insert the clauses in 7-104.83.

7-1910.37 Capture and Detention. In accordance with 10-406, insert the clause in 7-104.94.

7-1910.38 Buy American Act. In accordance with 7-104.3, insert the clause therein.

7-1910.39 Preference for United States Flag Air Carriers. In accordance with 1-336.1(b), insert the clause in 7-104.95.

7-1910.40 Exclusionary Policies and Practices of Foreign Governments. In accordance with 6-1312, insert the clause in 7-104.97.

7-1910.41 Hazardous Material Identification and Material Safety Data. In accordance with 1-323.2(b), insert the clause in 7-104.98.

7-1911 Additional Clauses for Use in Cost Reimbursement Service Contracts. The following clauses may be included in cost reimbursement service contracts in accordance with Departmental procedures when it is appropriate to do so.

7-1911.1 Alterations in Contract. The clause in 7-105.1(a) may be inserted. 7-1911.2 Approval of Contract. The clause in 7-105.2 may be inserted.

7-1911.3 Options. Examples of option clauses appear in 7-104.27 and 7-1903.22. See Section I, Part 15, for specific instructions, prohibitions and procedures.

7-1911.4 Stop Work Orders. In accordance with 7-205.6, the clause prescribed therein may be inserted.

7-1911.5 Clauses for Contracts Involving Furnishing of Supplies. In cost reimbursement service contracts which involve the furnishing of supplies, the following clauses shall be included in addition to those prescribed by 7-1909.

Changes clause in 7-203.2;
Inspection of Supplies and Correction of Defects clause in 7-203.5; and

Walsh-Healey Public Contracts Act clause in 7-103.17. In addition, applicable clauses in 7-1910 shall be included. Any clause applicable only to supplies or only to services shall be so labeled.

7-1911.5

ARMED SERVICES PROCUREMENT REGULATION

CONTRACT CLAUSES AND SOLICITATION PROVISIONS

7-1912 Limitation of Liability - Service Contract. In accordance with 1-330, insert the following clause.

LIMITATION OF LIABILITY - SERVICE CONTRACT (1974 APR)

(a) Except to the extent that the Contractor is responsible under this contract for deficiencies in the services required to be performed under this contract, including any materials furnished in conjunction therewith, the contractor shall not be liable, by reason of Contractor's performance of services or delivery of materials under this contract, for loss of or damage to property of the Government occurring after Government acceptance of such services.

(b) The foregoing limitations shall not apply as to loss of or damage to property of the Government caused by willful misconduct or lack of good faith on the part of the Contractor's directors or officers, or on the part of any of his managers, superintendents, or other equivalent representatives, who have supervision or direction of:

(i) all or substantially all of the Contractor's business; or
(ii) all or substantially all of the Contractor's operations at any one plant or separate

location, in which this contract is being performed; or
(iii) a separate and complete major industrial operation in connection with the pet-

formance of this contract. (c) Notwithstanding paragraph (a) above, if the Contractor carries insurance or has established a reserve for self-insurance covering liability for damages or losses to property of the Government through performance of the services or furnishing of materials under this contract, then the Contractor shall be liable to the Government for such damages or losses to property of the Government to the extent of such insurance or reserve for self-insurance.

(d) The substance of this clause, suitably altered to reflect the relationship of the contracting parties, shall be included in any subcontracts hereunder.

(End of clause)

7-1912

ARMED SERVICES PROCUREMENT REGULATION

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7-2000 Scope of Part. This part sets forth uniform clauses, provisions, notices, statements, etc., for use in solicitations.

7-2001 Reserved.
7-2002 Required Clauses.

7-2002.1 Contingent Fee. In accordance with 1-506.1, insert the following clause.

CONTINGENT FEE (1974 APR) The Offeror/Quoter represents and certifies as part of his proposal/quotation that: (Check all ap plicable boxes or blocks).

(a) He () has. ( has not, employed or retained any company or person (other than a full-time, bona fide employee working solely for the offeror/quoter) to solicit or secure this contract, and (b) he () has, ( has not, paid or agreed to pay any company or person (other than a full-time bona fide employee working solely for the offeror/quoter) any fee, commission, percentage, or brokerage fee contingent upon or resulting from the award of this contract; and agrees to furnish information relating to (a) and (b) above, as requested by the Contracting Officer. (For interpretation of the representation, including the term “bona fide employee", see Code of Federal Regulations. Title 41, Subpart I-LS.)

If the offeror/quoter, by checking the appropriate box provided therefor, has represented that he has employed or retained a company or person (other than a full-time bona fide employee working solely for the offeror/quoter) to solicit or secure this contract, or that he has paid or agreed to pay any fee, commission. percentage, or brokerage fee to any company or person contingent upon or resulting from the award of this contract, he shall furnish, in duplicate, a complete Standard Form 119. Contractor's Statement of Contingent or Other Fees. If of. feror/quoter has previously furnished a completed Standard Form 119 to the office issuing this solicitation, he may accompany his proposal/quotation with a signed statement (a) indicating when such completed form was previously furnished, (b) identifying by number the previous solicitation or contract, if any, in connection with which such form was submitted, and (c) representing that the statement in such form is applicable to this proposal/quotation.

(End of clause)

7-2002.2 Lale Bids, Modifications of Bids or Withdrawal of Bids. The following provision shall be included in all advertised procurements (this replaces paragraphs 7 and 8 of Standard Forms 22 and 33A).

LATE BIDS, MODIFICATIONS OF BIDS OR WITHDRAWAL OF BIDS (1979 MAR)

(a) Any bid received at the office designated in the solicitation after the exact time specified for receipt will not be considered unless it is received before award is made and either:

(i) it was sent by registered or certified mail not later than the fifth calendar day prior to

the date specified for the receipt of bids (e.g., a bid submitted in response to a solicitation requiring receipt of bids by the 20th of the month must have been mailed by

the 15th or earlier); or, (ii) it was sent by mail (or telegram if authorized) and it is determined by the Govern.

ment that the late receipt was due solely to mishandling by the Government after

receipt at the Government installation. (b) Any modification or withdrawal of bid is subject to the same conditions as in (a) above except that withdrawal of bids by telegram is authorized. A bid may also be withdrawn in person by a bidder or his authorized representative, provided his identity is made known and he signs a receipt for the bid, but only if the withdrawal is made prior to the exact time set for receipt of bids.

(c) The only acceptable evidence to establish:

7-2002.2

ARMED SERVICES PROCUREMENT REGULATION

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