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CONTRACT CLAUSES AND SOLICITATION PROVISIONS

7-2003.15 Patents - Government Licensee. In accordance with 2-201(a)Sec.B(ix), 2-201(b)(xxviii), 3-501(b)Sec.B(xix), or 3–501(c)(xliv) as appropriate, insert the following provision.

PATENTS - GOVERNMENT LICENSEE (1974 APR)

The Government is obligated to pay a royalty applicable to the proposed procurement because of a license agreement between the Government and the patent owner. The patent number is ............ and the royalty rate is

............. If the offeror is the owner of, or a licensee under, the patent, he shall indicate below:

( Owner

(Licensee If an offeror does not indicate that he is the owner or a licensee of the patent, his offer will be evaluated by adding thereto an amount equal to the royalty.

(End of provision)

7-2003.15

ARMED SERVICES PROCUREMENT REGULATION

CONTRACT CLAUSES AND SOLICITATION PROVISIONS

7-2003.16 Guaranteed Maximum Shipping Weights and Dimensions. In accordance with 2-201(a)Sec.B(x), insert the following provision.

GUARANTEED MAXIMUM SHIPPING WEIGHTS AND DIMENSIONS.

Each bid (or proposal) will be evaluated to the destination specified by adding to the f.o.b. origin price all transportation costs to said destination. The guaranteed maximum shipping weights and dimensions of the supplies are required for determination of transportation costs. The bidder (or offeror) is requested to state as part of his offer the weights and dimensions. If separate containers are to be banded and/or skidded into a single shipping unit, details must be described. If delivered supplies exceed the guaranteed maximum shipping weights or dimensions, the contract price shall be reduced by an amount equal to the difference between the transportation costs computed for evaluation purposes based on bidder's (or offeror's) guaranteed maximum shipping weights or dimensions and the transportation costs that should have been used for bid (or proposal) evaluation purposes based on correct shipping data.

OMITTED from page 7:502

If the bidder (or offeror) fails to state his guaranteed maximum shipping weight and dimensions for the supplies as requested, the Government will use the estimated weights and dimensions below for evaluation; and the Contractor agrees this will be the basis for any reduction in contract prices as provided in this clause. The Government's estimated weights (and dimensions, if applicable) are as follows: ........

(End of provision)

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7-2003.17 Freight Classification Description. 2-201(a)Sec.B(xi), insert the following provision.

FREIGHT CLASSIFICATION DESCRIPTION (1968 JUN)

Bidders (or offerors) are requested to indicate, below, the full Uniform Freight Classification (rail) description, or the National Motor Freight Classification description applicable to the supplies, the same as bidder (offeror) uses for commercial shipment. This description should include the packing of the commodity (box, crate, bundle, loose, setup, knocked down, compressed, unwrapped, etc.) the container material (fiberboard, wooden, etc.), unusual shipping dimensions, and other conditions affecting traffic descriptions. The Government will use these descriptions as well as other information available to it to determine the classification description most appropriate and advantageous to the Government. Bidder (offeror) understands that shipments on any f.o.b. origin contract awarded, as a result of this solicitation, will be made in conformity with the shipping classification description specified by the Government, which may be different from the classification description furnished below. FOR FREIGHT CLASSIFICATION PURPOSES, BIDDER (OR OFFEROR) DESCRIBES THIS COMMODITY AS ......

(End of provision)

7-2003.18 Transportation Transit Privilege Credits. In accordance with 2-201(a)Sec.B(xii), insert the following provision.

7-2003.18

ARMED SERVICES PROCUREMENT REGULATION

CONTRACT CLAUSES AND SOLICITATION PROVISIONS

TRANSPORTATION TRANSIT PRIVILEGE CREDITS (1968 JUN)

If the bidder (offeror) has established with regulated common carriers transit privileges which can be applied to the supplies when shipped from the original source, bidder (offeror) is invited to offer to utilize such credits to ship the supplies to the designated Government destinations under commercial bills of lading, paying all remaining transportation charges connected therewith, subject to reimbursement by the Government in an amount equal to the remaining charges but not exceeding the amount quoted by the bidder (offeror) below. Such shipments under paid commercial bills of lading will move for the account of and at the risk of the Government, after loading on carrier's equipment and acceptance by the carrier (unless, pursuant to the “Changes" clause, the office administering the contract directs use of Government bills of lading). The amount quoted below by the bidder (offeror) represents the transportation costs, in cents per 100 lb. (freight rate) for full carload/truckload shipments of the supplies from bidder's (offeror's) original source via his transit plant or point to the Government destination(s) listed below by the bidder (offeror), including the carrier's transit privilege, charge, less the applicable transit credit (i.e., the amount (rate) initially paid to the carrier for shipment from original source to bidder's transit plant or point). The rate per CWT quoted will be used by the Government to evaluate the offered f.o.b. origin price unless a lower rate is applicable on the date of bid opening (or closing date specified for receipt of proposals). To have his bid (offer) evaluated on this basis, bidder (offeror) must insert below the remaining transportation charges which he agrees to pay, including any transit charges, and which are subject to reimbursement by the Government, as explained in this provision, to destinations listed in the Schedule as follows:

RATE PER CWT IN CENTS ..
TO DESTINATION

(End of provision)

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7-2003.19 FOB Origin (With Differentials). 2-201(a)Sec.B(xiii), insert the following provision.

F.O.B. ORIGIN (WITH DIFFERENTIALS)

Notwithstanding the f.o.b. origin delivery terms set forth in the "F.O.B. Origin" clause of the contract, it may be advantageous to the bidder (or offeror) to submit f.o.b. origin prices in the Schedule which include only the lowest cost to the Contractor of loading for shipment at his plant or most favorable shipping point. The cost beyond such plant or point of bringing to the place of delivery and loading, blocking, and bracing on the type vehicle specified by the Government at the time of shipment may exceed the bidder's (offeror's) lowest cost when he ships for his own account. Accordingly, bidders (or offerors) may indicate below a differential which, as explained below, may be added to the offered price, such differential to be expressed as a rate in cents for each 100 pounds (CWT) of the supplies for one or more of the options, under the clause entitled "F.O.B. Origin," which the Government may specify at the time of shipment. Such differential(s), if specified below, will be considered in the evaluation of bids (or proposals) to determine the lowest overall cost to the Government. If, at the time of shipment, the Government specifies (normally on a Government bill of lading) a mode of transportation, type of vehicle, or place of delivery for which the bidder (or offeror) has set forth a differential, the Contractor shall include the total of such differential costs (the applicable differential multiplied by the actual weight on the Government bill of lading), as a separate reimbursable item on his invoice for the supplies. Under this clause (F.O.B. Origin (With Differentials)), the Government shall have the option of performing or arranging at its own expense any transportation from Contractor's shipping plant or point to carrier's facility at the time of shipment and, whenever this option is exercised, no reimbursement shall be made by the Government based on a quoted differential. Bidder's (or offeror's) differential(s), if any, in cents for each 100 pounds for optional mode of transportation, types of vehicle, transportation within a mode, or place of delivery, specified by the Government at the time of shipment, and not included in the f.o.b. origin price indicated in the Schedule by the bidder (or offeror), is (are) as follows:

(carload, truckload, less-load.
wharf, flatcar, driveway, etc.)

(End of provision)

7-2003.19

ARMED SERVICES PROCUREMENT REGULATION

CONTRACT CLAUSES AND SOLICITATION PROVISIONS

7-2003.20 Evaluation of Export Bids (Or Proposals). In accordance with 2-201(a)Sec.B(xiv), insert the following provision.

EVALUATION OF EXPORT BIDS (OR PROPOSALS) (1968 JUN)

A. Port Handling and Ocean Charges. In evaluating bids (or proposals), port handling

and ocean charges on file and published by the Military Traffic Management and
Terminal Service as of the date of bid opening (or the closing date specified for
receipt of proposals) and effective for the date of the expected initial shipment will

be used.
B. F.O.B. Origin, Transportation Under Government Bill of Lading.

(1) Bids (or proposals) will be evaluated and awards made on the basis of the lowest
laid down cost to the Government at the overseas port of discharge, via methods and
ports compatible with required delivery dates and conditions affecting transportation
known at the time of evaluation. Included in this evaluation, in addition to the f.o.b.
origin price of the item, will be the inland transportation costs from the point of
origin in the United States to the port of loading, port handling charges at the port of
loading, and the ocean shipping costs from the United States port of loading to the
overseas port of discharge (see D below). The Government may designate the mode
of routing of shipment and may load from other than those ports specified for evalua-
tion purposes.
(2) Bids (or proposals) will be evaluated on the basis of shipment through one of the
ports set forth in paragraph D below, to the overseas port of discharge. Evaluation
will be made on the basis of shipment through the port that will result in the lowest

cost to the Government. Ports of loading will be considered as destinations within the meaning of the term “f.o.b. destination" as that term is used in the “F.O.B. Origin" clause of this contract.

C. F.O.B. Port of Loading With Inspection and Acceptance at Origin.

(1) Bids (or proposals) will be evaluated on the basis of the lowest laid down cost to
the Government at the overseas port of discharge via methods compatible with
required delivery dates and conditions affecting transportation known at the time of
evaluation. Included in this evaluation, in addition to the price to the United States
port of loading (see (2) below), will be the port handling charges at the port of load-
ing and the ocean shipping cost from the port of loading to the overseas port of
discharge (see D below).
(2) Unless bids (or offers) are applicable only to f.o.b. origin delivery under Gover-
ment bills of lading (see B above), bidders (or offerors) must designate, below, at
least one of the ports of loading listed in paragraph D below, as their place of
delivery. Failure to designate at least one of the ports as the point to which delivery
will be made by the Contractor may render the bid (or offer) nonresponsive.

PLACE OF DELIVERY: ................
(Insert at least one of the ports listed in paragraph D below.)
D. Ports of Loading for Bid (or Proposal) Evaluation. Ports to be used by the Govern-
ment in evaluating bids (or proposals) are as follows:

... (Ports) E. Ports of Loading Nominated by Bidder (Offeror). The above named ports of loading

listed in D above are considered by the Government to be appropriate for this solicitation due to their compatibility with methods and facilities required to handle the cargo and types of vessels and to meet the required overseas delivery dates. Notwithstanding the foregoing, bidders (or offerors) may nominate additional ports of loading which the bidder (offeror) considers to be more favorable to the Government. The Government may disregard such nominated port(s) if, after considering the quantity and nature of the supplies concerned, the requisite cargo handling capability, the available sailings on U.S. Flag vessels, and other pertinent transportation factors, it determines that use of the nominated port(s) is not compatible with the

7-2003.20

ARMED SERVICES PROCUREMENT REGULATION

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CONTRACT CLAUSES AND SOLICITATION PROVISIONS

required overseas delivery date. United States Great Lakes ports of loading may be
considered in the evaluation of bids (or offers) only for those items scheduled herein
for delivery during the ice-free or navigable period as proclaimed by the authorities
of the St. Lawrence Seaway (normal period is between 15 April and 30 November
annually). All ports named, including those nominated by bidders (or offerors), and
determined to be eligible as provided herein, will be considered in evaluating all bids
(or proposals) received in order to establish the lowest laid down cost to the Govern-
ment at the overseas port of discharge. All determinations will be based on availabili-
ty of ocean services by United States Flag vessels only. Additional U.S. port(s) of
loading nominated by bidder (or offeror), if any: .................

Bidder (or offeror) will indicate whether price(s) is (are) based on:
( ) Paragraph B, f.o.b. origin, transportation by GBL to port listed in Di
( ) Paragraph C, f.o.b. destination (i.e., a port listed in D);
( ) Paragraph E, f.o.b. origin, transportation by GBL to port

nominated in E; and/or
( ) Paragraph E, f.o.b. destination (i.e., a port nominated in E).

(Ead al provtalon)

7-2003.21 Eligibility for Preference as a Labor Surplus Concern. In accordance with 2-201(a)Sec.B(xv) or 3-501(b)Sec.B(xx), insert the following clause.

ELIGIBILITY FOR PREFERENCE AS A LABOR SURPLUS CONCERN (1978 JUN)

Each offeror desiring to be considered for award as a labor surplus arca (LSA)
concern on the set-aside portion of this procurement, specified elsewhere in the
schedule, shall indicate below the address(es) where costs
incurred on account of manufacturing
or production (by offeror or first tier subcontractor) will amount to more than
fifty percent (50%) of the contract price

Name of Company:
Street Address:
City/County:

State: (If more than one location is to be used, list each location and the costs to be incurred at cach, stated as a percentage of the contract price.)

CAUTION: Failure to list the location of manufacture or production and the percentage, if required, of cost to be incurred at each location will preclude consideration of the offeror as a LSA concern.

(Lad ol claore)

7-2003.21

ARMED SERVICES PROCUREMENT REGULATION

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