CLAUSES FOR FIXED PRICE SUPPLY CONTRACTS

(3) to the extent practicable, what delay and disruption in the manner and sequence of performance and effect on continued performance have been or may be caused by the alleged change;

(4) what adjustments to contract price, delivery schedule, and other provisions affected by the alleged change are estimated; and

(vi) the Contractor's estimate of the time by which the Government must respond to the Contractor's notice tc minimize cost, delay or disruption of performance.

(c)___Continued Performance Following submission of the notice required by (b) above, the Contractor shall diligently continue performance of this contract to the maximum extent possible in accordance with its terms and conditions as construed by the Contractor, unless such notice reports a direction of the Contracting Officer or a communication from a specifically authorized representative of the Contracting officer, in either of which events the Contractor shall continue performance in compliance therewith, provided, however, that if the Contractor regards the direction or communication as a change as described in (b) above, nctice shall be given as therein provided. All 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 Fromptly countermand any action which exceeds the authority of specifically representative.

the

authorized

(d) Government Response The Contracting officer shall promptly, and in any event within .... **to be negotiated) calendar days after receipt of NOTICE, respond there to in writing. In such response the Contracting Officer shall either;

(i) 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), (iii) above, advise the Contractor additional information is required, and establish

or

what

NASA PROCUREMENT REGULATION

CONTRACT CLAUSES

ċate by which it should be furnished and the date thereafter by which the Government will respond.

as

(e) Equitable Adjustments. If the Contracting Officer ccnfirms that Government conduct effected a change alleged by the Contractor, and such conduct causes an increase or decrease in the Contractor's cost of, or the time required for, perfcrmance 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 bcth; and

(ii) in such other provisions of the contract as

may be affected;

to

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 comply with such defective drawings, designs or specifications before the Contractor identified, ΟΙ 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 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.

such

NOTE: The phrases "contract price" and "cost" wherever they appear in the foregoing clause, may be appropriately modified to apply to cost-reimbursement or incentive type contracts, to combinations

thereof.

or

7.104-87 through 7, 104-88 (Reserved).

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

CFR TITLE 41 CHAPTER 18

CLAUSES FOR FIXED-PRICE SUPPLY CONTRACTS

of such request, the Contractor shall submit to the Contracting Officer the information specified by, and in the format required by paragraph 4, of MIL.-STD480.****

(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 Froposed aggregate cost is $100,000 or greater, the Contractor shall submit to the Contracting Officer a ccrpleted 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 Fricing Data.

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

any

(c) If the price* adjustment proposed for Contractor originated ECP (excluding any Government requested ECP ΟΙ 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 forth in the Schedule in the absence of a statement in the change order, or other contract modification, increasing the estimated cost.

*** To be negotiated.

**** Delete references to MIL.-STD-480 when desirable and enter local format, if any.

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

NASA PROCUREMENT REGULATION

CONTRACT CLAUSES

CHANGE ORDER ACCOUNTING

When the Contracting Officer estimates that the cost cf 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 cr 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), following clause.

insert

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 the Comptroller General of the United States shall disallow any expenditure from appropriated funds for international air transportation on other than a U.S. flag air carrier in the absence of satisfactory proof of the necessity therefor.

(b) The Contractor agrees to utilize U.S. flag air carriers for international air transportation of Fersonnel (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 fcllowing reasons:

(state reasons)

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CLAUSES FOR FIXED-PRICE SUPPLY CONTRACTS

(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.

(ii) "US, 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 Ог 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 ΟΙ on an Attachment Sheet, preceded by the following clause:

ALTERATIONS IN CONTRACT (SEPTEMBER 1962)

The following alterations have been na de provisions of this contract.

7.105-2 through 7.105-4 (Reserved)

in the

NASA PROCUREMENT REGULATION