INSPECTION TRIPS BY CONTRACTOR'S OFFICERS AND EXECUTIVES (JUNE 1973) Provided it is approved by the Mission Director, the contractor may send the campus coordinator, a professional member of his staff as an alternate to the campus coordinator, or such of his senior officials (e.g., president, vice presidents, deans, or department heads) to the cooperating country as may be required to review the progress of the work under this contract. Except for the campus coordinator or his alternate, no direct salary charges will be paid hereunder with respect to any such officials. § 7-7.5502-12 Notice of changes in regulations. NOTICE OF CHANGES IN REGULATIONS (JUNE 1973) Changes in travel, differential, and allowance regulations shall be effective on either the beginning of the contractor's next pay period following receipt of the notice or the effective date of such notice, whichever is later. Notice of changes shall be sent by the Contracting Officer or Mission Director pursuant to the clause of the general provisions of this contract entitled "Notices". § 7-7.5502-13 Use of pouch facilities. Insert the clause set forth in AIDPR 7-7.5002-17. [46 FR 10915, Feb. 5, 1981] § 7-7.5502-14 Conversion of U.S. dollars to local currency. Insert the clause set forth in AIDPR 7-7.5002-8. § 7-7.5502-15 Facilities and services to be arranged by AID. FACILITIES AND SERVICES TO BE ARRANGED BY AID (JUNE 1973) (a) In order to assure full local benefits from the work as well as its expeditious conduct, AID agrees to arrange with appropriate authorities in the cooperating country for a clear assignment of responsibility to the appropriate officials for the development of this undertaking and a clear assignment of responsibilities to the contractor. (b) AID will arrange with the officials of the cooperating country to develop, to the extent permitted by their available resources, their own personnel, facilities, programs, and activities to permit the early and effective accomplishment of the objectives of the contract. ADVANCE OF FUNDS (JUNE 1973) (a) AID will, upon request from the contractor, in accordance with paragraph (b) of this section, make an initial advance to the contractor in the amount stated in the contract schedule pursuant to the provisions of FPR 1-30.4 as it applies to educational institutions for research and development work. AID will thereafter reimburse the contractor an amount equal to reported expenditures in order to replenish the advance fund on an imprest basis. AID will replenish the fund on a quarterly basis (or other agreed interval) upon submission of documents prescribed in the general provisions clause entitled "Allowable Cost and Payment" until such time as the total amount of reimbursements together with the initial advance equals the amount of the AID commitment stated in the schedule. Thereafter, vouchers for expenditures submitted by the contractor will not be reimbursed but will be applied to liquidate the remaining outstanding advance. In the event the total amount of subsequent vouchers are insufficient to liquidate the amount of the outstanding advance, the contractor will refund the difference to AID in accordance with FPR 130.414-2(d). (b) The contractor will submit to the paying office indicated on the cover page voucher form SF 1034 (original) and SF 1034(a) in three copies, properly executed, requesting advance of funds in the agreed amount required to establish a working fund. (c) The contractor shall make a repayment to AID of all unexpended portions of the advanced dollar funds not obligated under the contract for a legally binding transaction. If appropriate, the contractor shall also make a repayment to the mission of all unexpended portions of the advanced local currency funds not otherwise obligated under the contract for a legally binding transaction. In the event there are any outstanding obligations at the time of filing the final voucher required by the "Allowable Cost and Payment" clause, a subsequent accounting pertaining thereto will be made in the same manner as required by said provisions. (d) Refund of excess funds. (1) If all costs have been settled under the contract and the contractor fails to comply with the Contracting Officer's request for repayment of excess advance funds, the Government shall have the right, on other agreements, grants, or contracts held with the contractor, to withhold payment of advances and/or reimbursements due the contractor in the amount of the excess being held by the contractor. (2) If the contractor is still holding excess advance funds under the contract and the work has been completed or terminated but all costs have not been settled, the contractor agrees to: (i) Provide within 30 days after requested to do so by the contracting officer, a breakdown of the dollar amounts which have not been settled between the Government and the contractor. (The Contracting Officer will assume no costs are in dispute if the contractor fails to reply within 30 days); (ii) Upon written request of the Contracting Officer, return to the Government the sum of dollars, if any, which represents the difference between: (A) The contractor's maximum position on claimed costs which have not been reimbursed and (B) the total amount of unexpended funds which have been advanced under the contract; and (iii) If the contractor fails to comply with the Contracting Officer's request for repayment of excess advance funds, the Government shall have the right on other agreements, grants, or contracts held with the contractor, to withhold payment of advances and/or withhold reimbursement due the contractor in the amount of the excess being held by the contractor. (e) The contractor agrees that all interest earned on funds advanced will be promptly repaid to the Government. At no time may any such interest be retained by the contractor or used for any purpose. definition of services and tasks to be performed, and the time (i.e., hours of the day, days of the week, etc.) and place of performance thereof. (b) If any such changes cause an increase or decrease in the estimated cost of, or the time required for, the performance of any part of the work under this contract, whether changed or not changed by any such order, or otherwise affects any other provision of this contract, an equitable adjustment shall be made: (1) In the estimated cost or delivery schedule, or both; and (2) In such other provisions of the contract as may be so affected, and the contract shall be modified in writing accordingly. Any claim by the contractor for adjustment under this clause must be asserted within 30 days from the date of receipt by the contractor of the notification of change; provided, however, that the Contracting Officer, if he decides that the facts justify such action, may receive and act upon any such claim asserted at any time prior to final payment under this contract. Failure to agree to any adjustment shall be a dispute concerning a question of fact within the meaning of the clause of this contract entitled "Disputes". However, except as provided in paragraph (c) of this section, nothing in this clause shall excuse the contractor from proceeding with the contract as changed. (c) Notwithstanding the provisions of paragraphs (a) and (b) of this section, the estimated cost of this contract and, if this contract is incrementally funded, the funds allotted for the performance thereof, shall not be increased or deemed to be increased except by specific written modification of the contract indicating the new contract estimated cost and, if this contract is incrementally funded, the new amount allotted to the contract. Until such modification is made, the contractor shall not be obligated to continue performance or incur costs beyond the point established in the clause of this contract entitled "Limitation of Cost" or "Limitation of Funds." § 7-7.5503-7 Security requirements. If the contractor or any of his personnel will have access to classified or administratively designated information, insert the following clause: SECURITY REQUIREMENTS (JUNE 1973) (a) Whenever the Contracting Officer or his authorized representative has assigned a security classification (confidential, secret, or top secret) or administrative designation (limited official use) to the Contract or any of the items handled under the Contract, the Contracting Officer or his authorized representative shall notify the contractor (1) in writing of administrative designations, or (2) by use of "Security requirements check list" (Form DD 254) for classified information and any subsequent revisions in such classification. (b) The contractor shall safeguard all classified and administratively designated items handled under this contract and shall provide and maintain a system of security controls within his own organization. For classified information the system of security controls shall be in accordance with Department of Defense security agreement (DD Form 441), including the DOD industrial security manual for safeguarding classified information (DOD 5520.22-M). Instructions for safeguarding of administratively designated information are provided in Uniform State/AID/USIA regulations (volume 5, Foreign Affairs Manual, chapter 900), a copy of which will be furnished by the Contracting Officer or Mission Director. (c) Representatives of the Department of Defense and/or AID having security cognizance over the facility shall have the right to inspect at reasonable intervals the procedures, methods, and facilities utilized by the contractor in complying with the security requirements under this contract. Should the Government, through these representatives, determine that the contractor is not complying with the security requirements of this contract, the contractor shall be informed in writing by the cognizant security office of the Department of Defense and/or AID of the proper action to be taken in order to effect compliance with such requirements. (d) The contractor agrees to notify the Contracting Officer in writing after completion of the work under this contract that: (1) All classified or administratively designated information which was in his possession during the performance of the contract has been disposed of in accordance with existing DOD and/or AID security requirements, or (2) no classified or administratively designated information came into his possession or any of his employee's possession during the performance of the contract. (e) Notwithstanding the above, no material shall be published which would violate the security regulations or be in conflict with the national security of the United States and/or the cooperating government. [38 FR 15602, June 14, 1973, as amended at 38 FR 28676, Oct. 16, 1973] § 7-7.5503-8 Patent rights. Insert the appropriate clause set forth in FPR 1-9.107-5 or 1-9.107-6, under its conditions stated in FPR 19.107-4. [41 FR 4924, Feb. 3, 1976] The Foreign Aid and Related Agencies Appropriation Act, 1963, and subsequent appropriation Acts, have imposed the following requirement: None of the funds appropriated or made available pursuant to this Act for carrying out the Foreign Assistance Act of 1961, as amended, may be used for making payments on any contract for procurement to which the United States is a party entered into after the date of enactment of this Act which does not contain a provision authorizing the termination of such contract for the convenience of the United States. See, for example, section 110 of the Foreign Assistance and Related Agencies Appropriation Act, 1965. [30 FR 12978, Oct. 12, 1965] § 7-8.211 Review and approval of proposed settlements. [36 FR 23556, Dec. 10, 1971] § 7-8.211-1 Settlement Review Boards. (a) The AID Settlement Review Board shall operate in accordance with the standards set forth in FPR 18.211 and shall be composed of the following members or their delegates (except as provided under § 7-8.2112(b) of this section: Associate Assistant to the Administrator for Management (M/AAA/SER) Controller General Counsel (b) The Associate Assistant to the Administrator for Management (M/ AAA/SER) or his delegate shall be designated as Chairman of the Board. Delegate members of the Board shall have broad business and contracting experience and shall be senior AID officials. Each member or his delegate must be in attendance in order to con duct business and the Board shall act by majority vote. No individual shall serve as a member of a Board for the review of a proposed settlement if he has theretofore reviewed, approved or disapproved or recommended approval, disapproval or other action with respect to any substantive element of such settlement proposal. (c) The Chairman of the Board shall appoint a nonvoting recorder who shall be responsible for receiving cases, scheduling and recording the proceedings at meetings, maintaining a log of all cases received by him for the Board, and other duties as assigned by the Board. [36 FR 23556, Dec. 10, 1971, as amended at 38 FR 28676, Oct. 16, 1973; 48 FR 25189, June 6, 1983] § 7-8.211-2 Required review and approval. (a) When required. The AID Settlement Review Board shall receive and approve all AID/W and Mission proposed settlements or determinations described under FPR 1-8.211-2(a). (b) Level of review. Proposed settlements in excess of $1 million described in FPR 1-8.211-2(b) shall be reviewed and approved by a Board consisting of the Associate Assistant to the Administrator for Management (M/AAA/ SER), the General Counsel, and the Controller, without power of redelegation. (c) Submission of information. The Contracting Officer shall submit the information required under FPR 18.211-2 (c) in triplicate to the Office of Contract Management, Attention: Recorder, AID Settlement Review Board. [36 FR 23556, Dec. 10, 1971, as amended at 38 FR 28676, Oct. 16, 1973; 48 FR 25189, June 6, 1983] § 7-8.211-4 Action by Board. For purposes of this section, the phrase "within 30 days after submission to the board" found in FPR 18.211-4 shall mean within 30 days after receipt by the Board Recorder of all information required pursuant to FPR 1-8.211-2(c). [36 FR 23557, Dec. 10, 1971] PART 7-10-BONDS AND INSURANCE Subpart 7-10.1-Bonds Sec. 7-10.106 Advance payment bonds. Subpart 7-10.3—Insurance—General 7-10.302 Notice of cancellation or change. 7-10.305 Procedures to be followed in the event of loss or damage to Government property. Subpart 7-10.4—Insurance Under Fixed-Price Contracts 7-10.402 Workmen's compensation insur ance overseas. Subpart 7-10.5-Insurance Under Cost- 7-10.502 Types of insurance. AUTHORITY: Sec. 621, 75 Stat. 445, as amended; 22 U.S.C. 2381, unless otherwise noted. SOURCE: 30 FR 12979, Oct. 12, 1965, unless otherwise noted. Subpart 7-10.1-Bonds § 7-10.106 Advance payment bonds. (a) Generally, advance payment bonds will not be required in connection with AID contracts containing an advance payment provision. In lieu thereof, Contracting Officers will follow procedures set forth in Federal Procurement Regulations § 1-30.413. (b) Whenever a Contracting Officer considers that an advance payment bond is necessary, the Contracting Officer will: (1) Establish a bond penalty that will adequately protect interests of the Government, (2) use the AID Advance Payment Bond format, (3) place bond with a surety currently approved by the U.S. Treasury Department according to the latest Treasury Department Circular 570, (4) stipulate that the cost of the bond shall not exceed a rate of $7.50 per $1,000 per annum based on the penalty of the bond, without the prior written ap |