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CONTRACT CLAUSES

directions, communications, interpretations, orders and Similar actions of such specifically authorized representative shall be reduced to writing promptly and copies thereof furnished to the Contractor and to the Contracting Officer. The Contracting Officer shall promptly countermand any action which exceeds the authority of the specifically authorized representative.

Contracting Officer shall

(d) Government Response.___The promptly, and in any event within (**to be negotiated) calendar days after receipt of NOTICE, respond thereto in writing. In such response the Contracting Officer shall either: (1) confirm that the conduct of which the Contractor gave notice constitutes a change and when necessary direct the mode of further performance,

(ii) countermand any communication regarded as a change. (iii) deny that the conduct of which the Contractor gave notice constitutes a change and when necessary direct the mode of further performance; or

(iv) in the event the Contractor's notice information is inadequate to make a decision under (i), (ii), or (iii) above. advise the Contractor what additional information is required. and establish the date by which it should be furnished and the date thereafter by which the Government will respond.

(e) Equitable Adjustments. If the Contracting Officer confirms that Government conduct effected a change as alleged by the Contractor, and such conduct causes an increase or decrease in the Contractor's cost of, or the time required for. performance of any part of the work under this contract, whether changed or not changed by such conduct, an equitable adjustment shall be made:

(i) in the contract price or delivery schedule or both; and (ii) in such other provisions of the contract as may be affected; and the contract shall be modified in writing accordingly. In the case of drawings. designs or specifications which are defective and for which the Government is responsible, the equitable adjustment shall include the cost and time extension for delay reasonably incurred by the Contractor in attempting to comply with such defective drawings, designs or specifications before the Contractor identified, or reasonably should have identified, such defect. When the cost of property made obsolete or excess as a result of a change confirmed by the Contracting Officer pursuant to this clause is included in the equitable adjustment, the Contracting Officer shall have the right to prescribe the manner of disposition of such property. The equitable adjustment shall not include increased costs or time extensions for delay resulting from the Contractor's failure to provide notice or to continue performance as provided. respectively, in (b) and (c) above. NOTE: The phrases "contract price" and "cost" wherever they appear in the foregoing clause, may be appropriately modified to

CFR TITLE 41 CHAPTER 18

CLAUSES FOR FIXED-PRICE SUPPLY CONTRACTS

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apply to cost-reimbursement or incentive type contracts, or combinations thereof.

7.104-87 through 7. 104-88 [Reserved]

to

7.104-89 Engineering Change Proposals (ECP's). In accordance with 26.205 the following is a sample clause:

ENGINEERING CHANGE PROPOSALS

(a) The Contracting Officer may at any time; in writing. request the Contractor to prepare and submit an Engineering Change Proposal (ECP). within the scope of this contract, as hereafter set forth. Upon receipt of such request. the Contractor shall submit to the Contracting Officer the required by

information specified by. and in the format paragraph 4. of MIL-STD-480.****

(b) Any Contractor ECP shall set forth a "not to exceed" price and delivery adjustment or a "not less than" price* and delivery adjustment, acceptable to the Contractor if the Government subsequently orders such ECP. If ordered. the equitable increase shall not exceed, nor shall the equitable decrease be less than, such "not to exceed" or "not less than" amounts. ** This paragraph does not preclude any revision(s) or correction(s) of an ECP in accordance with paragraph 4.10 and 4.11 of MIL-STD-480. Concurrently with the submission of any ECP under this contract in which the proposed aggregate cost is $100.000 or greater, the Contractor shall submit to the Contracting Officer a completed DD Form 633 (NASA Edition). At the time of agreement upon the price of the ECP, the Contractor shall submit a signed Certificate of Current Cost or Pricing Data.

The

contracting officer may include. in the circumstances in 26.205(b), the following paragraph.

(c) If the price* adjustment proposed for any Contractor originated ECP (excluding any Government requested ECP or Value Engineering Change Proposal) is*** (percent of contract price*) (or $ ***) or less, such change shall be made at no adjustment of the contract price*.

Use term suitable to type of contract.
In cost

reimbursement type contracts replace this

sentence with the following sentence:

Change orders issued pursuant to the Change clause of this contract shall not be considered an authorization to the Contractor to exceed the estimated cost set for th in the Schedule in the absence of a statement in the change order. other contract modification, increasing the estimated cost.

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or

to MIL-STD-480 when desirable and

80-138 0-81- -9

NASA PROCUREMENT REGULATION

CONTRACT CLAUSES

7.104-90 Change Order Accounting. In accordance with 26.205, the following is a sample clause:

CHANGE ORDER ACCOUNTING

When the Contracting Officer estimates that the cost of a change or series of related changes will exceed $100,000. he may require change order accounting. The Contractor, for each such change or series of related changes, shall maintain separate accounts, by job order or other suitable accounting procedure. of all incurred segregable, direct costs (less allocable credits), of work. both changed and not changed, allocable to the change. Such accounts shall be maintained until the parties agree to an equitable adjustment for the change order. 7.104-91 through 7.104-94 (Reserved)

7.104-95 Preference for United States Flag Air Carriers. In accordance with 1.336-1(b), insert the following clause.

PREFERENCE FOR UNITED STATES FLAG AIR CARRIERS
(APRIL 1976)

the

(a) Public Law 93-623 requires that all Federal agencies and Government Contractors and subcontractors will use U.S. flag air carriers for international air transportation of personnel (and their personal effects) or property to the extent service by such carriers is available. It further provides that Comptroller General of the United States shall disallow expenditure from appropriated funds for international transportation on other than a U.S. flag air carrier in the absence of satisfactory proof of the necessity therefor.

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(b) The Contractor agrees to utilize U.S. flag air carriers for international air transportation of personnel (and their personal effects) or property to the extent service by such carriers is available.

(c) In the event that the Contractor selects a carrier other than a U.S. flag air carrier for international air transportation. he will include a certification on vouchers involving such transportation which is essentially as follows:

CERTIFICATION OF

UNAVAILABILITY OF U.S. FLAG AIR CARRIERS

I hereby certify that transportation service for personnel (and their personal effects) or property by certificated air carrier was unavailable for the following reasons:

(state reasons)

(d) The terms used in this clause have the following meanings: (i) "International air transportation" means transportation of persons (and their personal effects) or property by air between a place in the United States and a place outside thereof or between two places both of which are outside the United States.

CFR TITLE 41 CHAPTER 18

CLAUSES FOR FIXED-PRICE SUPPLY CONTRACTS

(ii) "U.S. flag air carrier" means one of a class of air carriers holding a certificate of public convenience and necessity issued by the Civil Aeronautics Board, approved by the President, authorizing operations between the United States and/or its territories and one or more foreign countries.

(iii) The term "United States" includes the fifty states. Commonwealth of Puerto Rico, possessions of the United States and the District of Columbia.

(e) The Contractor shall include the substance of this clause, including this paragraph (e) in each subcontract or purchase hereunder which may involve international air transportation.

7.104-96 Notice of Intent to Disallow or Not Recognize Costs. Insert the clause in 7.203-30 in all fixed-price incentive contracts and contracts providing for price redetermination. 7.105 Additional Clauses. The following clauses shall be inserted in fixed-price supply contracts if it is desired to cover the subject matter thereof.

7.105-1 Alterations in Contract. Alterations in contract provisions may be made only in accordance with the provisions of 1.109. When alterations are necessary, they shall be set forth either in the Schedule or on an Attachment Sheet. preceded by the following clause:

The

ALTERATIONS IN CONTRACT (SEPTEMBER 1962)

following alterations have been made in the provisions of this contract.

7.105-2 through 7.105-4 (Reserved)

7.105-5 Liquidated Damages. In accordance with 1.310. where a liquidated damages provision is to be used, the following provision shall be inserted as paragraph (f) of the "Default" clause (see 8.707) and the present paragraphs (f) and (g) of that clause redesignated (g) and (h).

(f) If the Contractor fails to deliver the supplies or perform the services within the time specified in this contract, or any extension thereof, the actual damage to the Government for the delay will be difficult or impossible to determine. Therefore in lieu of actual damages the Contractor shall pay to the Government as fixed, agreed, and liquidated damages for each calendar day of delay, the amount set forth elsewhere in this contract. Alternatively. the Government may terminate this contract in whole or in part as provided in paragraph (a) of this clause, and in that event the Contractor shall be liable, in addition to the excess costs provided in paragraph (b) above, for such liquidated damages accruing until such time as the Government may reasonably obtain delivery or performance of similar supplies or services. The Contractor shall not be charged with liquidated damages when the delay arises out of

NASA PROCUREMENT REGULATION

CONTRACT CLAUSES

causes beyond the control and without the fault or negligence of the Contractor, as defined in paragraph (c) above, and in such event. subject to the "Disputes" clause. the Contracting Officer shall ascertain the facts and extent of the delay and shall extend the time for performance of the contract when in his judgment the findings of fact justify an extension.

7.105-6 Bill of Materials. A bill of materials consists of a report by a supplier which specifies the quantities of various materials required to produce a designated quantity of supplies of a particular kind. A bill of materials, with respect to all or part of the supplies to be furnished pursuant to a contract, will be required only if the contracting officer determines that such bill is necessary to develop materials or components requirements for production and maintenance programs, or for other specified purposes. In such event, the contract shall specify, with respect to such bill, the following:

(i) the supplies or parts thereof to be covered by the bill of materials;

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