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(i) with respect to all contract work performed prior to the effective date of the Notice of Termination, the total (without duplication of any items) of—

(A) the cost of such work;

(B) the cost of settling and paying claims arising out of the termination of work
under subcontracts or orders as provided in paragraph (b)(v) above, exclusive
of the amounts paid or payable on account of supplies or materials delivered or
services furnished by the subcontractor prior to the effective date of the Notice
of Termination of Work under this contract, which amounts shall be included in
the cost on account of which payment is made under (A) above; and
(C) a sum, as profit on (A) above, determined by the Contracting Officer pursuant
to 8-303 of the Armed Services Procurement Regulation, in effect as of the date
of execution of this contract, to be fair and reasonable; provided, however, that if
it appears that the Contractor would have sustained a loss on the entire contract
had it been completed, no profit shall be included or allowed under this subdivi-
sion (C) and an appropriate adjustment shall be made reducing the amount of
the settlement to reflect the indicated rate of loss; and

(ii) the reasonable cost of the preservation and protection of property incurred pursuant to paragraph (b)(ix); and any other reasonable cost incidental to termination of work under this contract, including expense incidental to the determination of the amount due to the Contractor as the result of the termination of work under this contract. The total sum to be paid to the Contractor under (i) above shall not exceed the total contract price as reduced by the amount of payments otherwise made and as further reduced by the contract price of work not terminated. Except for normal spoilage, and except to the extent that the Government shall have otherwise expressly assumed the risk of loss, there shall be excluded from the amounts payable to the Contractor under (i) above, the fair value, as determined by the Contracting Officer, of property which is destroyed, lost, stolen, or damaged so as to become undeliverable to the Government, or to a buyer pursuant to paragraph (b)(vii).

(f) Costs claimed, agreed to, or determined pursuant to (c), (d), (e), and (i) hereof shall be in accordance with Section XV of the Armed Services Procurement Regulation as in effect on the date of this contract.

(g) The Contractor shall have the right of appeal, under the clause of this contract entitled "Disputes", from any determination made by the Contracting Officer under paragraph (c), (e), or (i) hereof, except that if the Contractor has failed to submit his claim within the time provided in paragraph (c) or (i) hereof, and has failed to request extension of such time, he shall have no such right of appeal. In any case where the Contracting Officer has made a determination of the amount due under paragraph (c), (e) or (i) hereof, the Government shall pay to the Contractor the following: (i) if there is no right of appeal hereunder or if no timely appeal has been taken, the amount so determined by the Contracting Officer, or (ii) if an appeal has been taken, the amount finally determined on such appeal.

(h) In arriving at the amount due the Contractor under this clause there shall be deducted (i) all unliquidated advance or other payments on account theretofore made to the Contractor, applicable to the terminated portion of this contract, (ii) any claim which the Government may have against the Contractor in connection with this contract, and (iii) the agreed price for, or the proceeds of sale of, any materials, supplies, or other things acquired by the Contractor or sold, pursuant to the provisions of this clause, and not otherwise recovered by or credited to the Government.

(i) If the termination hereunder be partial, the Contractor may file with the Contracting Officer a claim for an equitable adjustment of the price or prices specified in the contract relating to the continued portion of the contract (the portion not terminated by the Notice of Termination), and such equitable adjustment as may be agreed upon shall be made in such price or prices. Any claim by the Contractor for an equitable adjustment under this clause must be asserted within ninety (90) days from the effective date of the termination notice, unless an extension is granted in writing by the Contracting Officer.

7-2101.8

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(j) The Government may from time to time, under such terms and conditions as it may prescribe, make partial payments and payments on account against costs incurred by the Contractor in connection with the terminated portion of this contract whenever in the opinion of the Contracting Officer the aggregate of such payments shall be within the amount to which the Contractor will be entitled hereunder. If the total of such payments is in excess of the amount finally agreed or determined to be due under this clause, such excess shall be payable by the Contractor to the Government upon demand, together with interest computed at the rate established by the Secretary of the Treasury pursuant to Public Law 92-41, 85 STAT 97 for the Renegotiation Board, for the period from the date such excess payment is received by the Contractor to the date on which such excess is repaid to the Government; provided, however, that no interest shall be charged with respect to any such excess payment attributable to a reduction in the Contractor's claim by reason of retention or other disposition of termination inventory until ten (10) days after the date of such retention or disposition, or such later date as determined by the Contracting Officer by reason of the circumstances.

(k) Unless otherwise provided for in this contract, or by applicable statute, the Contractor shall-from the effective date of termination until the expiration of three (3) years after final settlement under this contract-preserve and make available to the Government at all reasonable times at the office of the Contractor but without direct charge to the Government, all his books, records, documents and other evidence bearing on the costs and expenses of the Contractor under this contract and relating to the work terminated hereunder, or, to the extent approved by the Contracting Officer, photographs, microphotographs, or other authentic reproductions thereof.

(End of clause)

(b) Insert the following clause in contracts not exceeding $10,000.

TERMINATION FOR CONVENIENCE OF THE GOVERNMENT (1976 OCT)

The Contracting Officer, by written notice, may terminate this contract, in whole or in part, when it is in the interest of the Government. If this contract is so terminated, the rights, duties and obligations of the parties hereto shall be in accordance with the applicable Sections of the Armed Services Procurement Regulation in effect on the date of this contract. In addition, upon receipt by the Contractor of the Notice of Termination, if title to property is vested in the Contractor under this contract, it shall revest in the Government notwithstanding any other provision of this contract, except as to such property as the Contractor has disposed of by bona fide sale or property which has been removed from the site by the Contractor.

(End of clause)

7-2101.9 Disputes. Insert the appropriate clause in 7-602.6. 7-2101.10 Assignment of Claims. Insert the clause in 7-602.8.

7-2101.11 Conditions Affecting the Work. Insert the clause in 7-602.14. 7-2101.12 Site Investigation. Insert the clause in 7-602.33.

7-2101.13 Protection of Existing Vegetation, Structures, Utilities, and Improvements.

PROTECTION OF EXISTING VEGETATION, STRUCTURES, UTILITIES, AND IMPROVEMENTS (1976 OCT)

(a) The Contractor will preserve and protect all existing vegetation such as trees, shrubs, and grass on or adjacent to the site of work which is not to be removed and which does not unreasonably interfere with the dismantling or demolition work. Care will be taken in removing trees authorized for removal to avoid damage to vegetation to remain in place. Any limbs or branches of trees broken during such operations or by the careless operation of equipment, or by workmen, shall be trimmed with a clean cut and painted with an approved tree pruning compound as directed by the Contracting Officer.

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(b) The Contractor will protect from damage all existing improvements or utilities at or near the site of the work, including adjacent property of a third party, the location of which is made known to him, and will repair or restore any damage to such facilities resulting from failure to comply with the requirements of this contract or the failure to exercise reasonable care in the performance of the work. If the Contractor fails or refuses to repair any such damage promptly, the Contracting Officer may have the necessary work performed and charge the cost thereof to the Contractor.

(End of clause)

7-2101.14 Permits and Responsibilities.

PERMITS AND RESPONSIBILITIES (1976 OCT)

The Contractor shall, without additional expense to the Government, be responsible for obtaining any necessary licenses and permits, and for complying with any applicable Federal, State, and municipal laws, codes, and regulations, in connection with the prosecution of the work. He shall be similarly responsible for all damages to persons or property that occur as a result of his fault or negligence. He shall take proper safety and health precautions to protect the work, the workers, the public, and the property of others.

(End of clause)

7-2101.15 Other Contracts. Insert the clause in 7-602.15.

7-2101.16 Liability for Government Property.

LIABILITY FOR GOVERNMENT PROPERTY (1976 OCT)

As to:

(i) items of property, title to which remains in the Government and which are to be
delivered to the Government by the Contractor in the performance of the work; and
(ii) items of property, title to which is vested in the Contractor but which under the ter-
mination clauses of this contract is revested in the Government upon notice of ter-
mination;

the Contractor assumes the risk of and shall be responsible for any loss thereof or damage thereto except for reasonable wear and tear incident to removal and delivery to the Government.

7-2101.17 Workmanship.

(End of clause)

WORKMANSHIP (1976 OCT)

All work under this contract shall be performed in a skillful and workmanlike manner. The Contracting Officer may, in writing, require the Contractor to remove from the work any employee the Contracting Officer deems incompetent, careless or otherwise objectionable.

(End of clause)

7-2101.18 Superintendence by Contractor. Insert the clause in 7-602.12.

7-2101.18

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7-2101.19 Inspection.

INSPECTION (1976 OCT)

(a) All workmanship (if not otherwise designated by the specifications) shall be subject to inspection and examination by Government inspectors at any and all times during dismantling or demolition and at any and all places where such dismantling or demolition are carried on. The Contractor shall be responsible for any damage to property caused by unworkmanlike performance or by defective workmanship. Any unsatisfactory facilities, materials, and equipment, used by the Contractor, shall be replaced with satisfactory facilities, materials, and equipment, and the Contractor shall promptly segregate and remove such unsatisfactory items from the premises. If the Contractor fails to proceed at once in a workmanlike manner with the performance of the work or with the correction of defective workmanship, the Government may by contract or otherwise, replace such facilities, materials, and equipment or correct such workmanship and charge the cost thereof to the Contractor, and may terminate the right of the Contractor to proceed as provided in the “Termination for Default Damages for Delay Time Extensions" clause of this contract, the Contractor and surety being liable for any damage to the same extent as provided in said clause for terminations thereunder.

(b) The Contractor shall furnish promptly without additional charge, all reasonable facilities, labor, and materials necessary for the safe and convenient inspection by Government inspectors. All inspection by the Government shall be performed in such manner as to not unnecessarily delay the work.

(End of clause)

7-2101.20 Operations and Storage Areas. Insert the clause in 7-602.35. 7-2101.21 Cleaning Up.

CLEANING UP (1976 OCT)

The Contractor shall at all times keep the dismantling or demolition area, including storage areas used by him, free from accumulations of waste material or rubbish and prior to completion of the work remove from the premises any rubbish and all tools, scaffolding, equipment, and materials not the property of the Government. Upon completion of the dismantling or demolition, the Contractor shall leave the premises in a clean, neat and workmanlike condition satisfactory to the Contracting Officer.

(End of clause)

7-2101.22 Accident Prevention. Insert the clause in 7-602.42(a). In contracts involving work of long duration or of hazardous character, add the paragraph (e) in 7-602.42(b).

7-2101.23 Composition of Contractor. Insert the clause in 7-602.32.

7-2101.24 Renegotiation. In accordance with 7-103.13, insert the appropriate clause therein.

7-2101.25 Liquidated Damages. Insert the clause in 7-603.39. The rate of liquidated damages will be determined in accordance with 18-113.

7-2101.26 Pricing of Adjustments. Insert the clause in 7-103.26. 7-2101.27 Federal, State and Local Taxes. Insert the clause in 7-103.10(a). 7-2101.28 Equal Opportunity. In accordance with 7-103.18(a), insert the clause therein.

7-2101.29 Affirmative Action for Disabled Veterans and Veterans of the Vietnam Era. Insert the clause in 7-103.27.

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7-2101.30 Affirmative Action for Handicapped Workers. In accordance with 12-1302(a), insert the clause in 7-103.28.

7-2101.31 Covenant Against Contingent Fees. Insert the clause in 7-103.20. 7-2101.32 Officials Not to Benefit. Insert the clause in 7-103.19. 7-2101.33 Value Engineering Incentive. Insert the clause in 7-602.50. 7-2102 Clauses to be Used When Applicable in Contracts for Dismantling, Demolition, or Removal of Improvements.

7-2102.1 Service Contract Act of 1965. In accordance with 4-502, and Section XII, Part 10, insert the appropriate clause in 7-1903.41(a) or (b).

7-2102.2 Contract Work Hours and Safety Standards Act Overtime Compensation. In accordance with 12-301 and 12-302, insert the clause in 7-103.16(a).

7-2102.3 Additional Bond or Other Security. If the contract will require the contractor to furnish a performance bond or other security (see 4-503 and 7-2101.2), insert the following clause:

ADDITIONAL BOND OR OTHER SECURITY (1976 OCT)

If any surety upon any bond furnished in connection with this contract becomes unacceptable to the Government, or if any such surety fails to furnish reports as to his financial condition from time to time as requested by the Government, or if the contract price is increased to such an extent that the penal sum of any bond becomes inadequate in the opinion of the Contracting Officer, the Contractor shall promptly furnish such additional security as may be required from time to time to protect the interests of the Government.

(End of clause)

7-2102.4 Availability of Utility Services. Insert the following clause in contracts for performance at Government installations when it is determined that one or more utility systems and supplies are adequate for the needs and use of both the Government and the contractor and it is advantageous to the Government to furnish such utility services.

AVAILABILITY AND USE OF UTILITY SERVICES (1976 OCT)

(a) The Government will make available to the Contractor, from existing outlets and supplies. all reasonably required amounts of utilities as specified in the Schedule or specifications. Except as otherwise provided in the Schedule or specifications, each utility shall be charged to or paid for by the Contractor at prevailing rates charged to the Government or, where the utility is produced by the Government, at reasonable rates as determined by the Contracting Officer.

(b) The Contractor shall carefully conserve utilities furnished without charge. The Contractor. at his own expense and in a workmanlike manner satisfactory to the Contracting Officer, shall install and maintain all necessary temporary connections and distribution lines and, if necessary to determine charges, all meters required to measure the amount of each utility used; and he shall remove the same prior to final acceptance of the dismantling or demolition.

(End of clause)

7-2102.4

ARMED SERVICES PROCUREMENT REGULATION