entitled "Excusable Delays", if such clause is applicable.

If not,

the period of performance may be extended pursuant to this clause if approved by the contracting officer.

This section prescribes modifications to certain clauses in FPR 1-7.303 and provides ERDA clauses which shall be used when applicable, in addition to the clauses in FPR 1-7.303.

Modify FPR 1-7.303-12, paragraph (v), to read as set forth in

$9-7.103-28.

$9-7.303-50 Patent indemnity.

Insert the clause set forth in §9-9.103-(b) under the conditions contained in §9-9.103.

$9-7.303-51 Security.

(a) Insert the clause in §9-7.103-53 under the conditions set forth therein.

(b) See Note A of $9-50.704-5.

$9-7.303-52 Limitation of Government's obligations.

The clause set forth below is authorized for use when funds are not available to fund the total fixed price of the contract at the time of entering into the contract and the initial funding of the contract is not less than 50 percent of the total fixed-price. The foregoing circumstances may occur when less than full funding is provided from Headquarters to a field office via a Headquarters financial plan.

Notwithstanding the grant of authority to use the clause under the foregoing circumstances, it is emphasized that fixed-price contracts shall be fully funded wherever possible and that, accordingly, incremental funding of such contracts should be kept to the absolute minimum. Contracting officers are authorized, in appropriate cases, to revise paragraphs (a) and (b) of

the clause to specify the work required under the contract in lieu of contract item numbers.

LIMITATION OF GOVERNMENT'S OBLIGATION

(a) Of the total price of items

....

through ...、、 the sum of $.... is presently available for payment and allotted to this

contract. It is anticipated that from time to time additional funds will be allotted to this contract in accordance with the following schedule until the total price of said items is allotted.

(b) The contractor agrees to perform or have performed work on said items up to the point at which, in the event of termination of this contract pursuant to the clause hereof entitled "Termination for Convenience of the Government," the total amount payable by the Government, (including amounts payable in respect of subcontracts and settlement costs) pursuant to paragraph (e) thereof, would in the exercise of reasonable judgment by the contractor approximate the total amount at the time allotted to the contract. The Government shall not be obligated in any event to pay or reimburse the contractor in excess of the amount from time to time allotted to the contract, anything to the contrary in the clause hereof entitled "Termination for Convenience of the Government" notwithstanding.

(c) It is contemplated that funds presently allotted to this contract will cover the work to be performed until .... In the event funds allotted are considered by the contractor to be inadequate to cover the work to be performed until the above date, or an agreed date in substitution thereof, the contractor shall notify the contracting officer in writing when within the next thirty days the work will reach a point at which, in the event of termination of this contract pursuant to the clause hereof entitled "Termination for Convenience of the Government," the total amount payable by the Government (including amounts payable in respect of subcontracts and settlement costs) pursuant to paragraph (e) thereof, will approximate 85 percent of the total amount then allotted to the contract. The notice shall state the estimated date when such point will be reached and the estimated amount of additional funds required to continue performance to the above or an agreed substituted date. The contractor shall, thirty days prior to the date above the written or agreed substituted date, advise the contracting officer in writing as to the estimated amount of additional funds which will be required for the timely performance of the contract for a further period as may be specified in the contract or otherwise agreed to by the parties. If after such latter notification additional funds are not allotted by the date above written or by an agreed date in substitution thereof, the contracting officer will, upon written request of the contractor, terminate this contract on such date

or the date set forth in the request, whichever is later, pursuant to the provisions of the clause of this contract entitled "Termination for Convenience of the Government."

(d) When additional funds are alloted from time to time for continued performance of the work under this contract, the parties shall agree on the applicable period of contract performance which shall be covered by such funds. The provisions of paragraphs (b) and (c) above shall apply to such additional allotted funds and substituted date pertaining thereto and the contract amended accordingly.

(e) If the contractor incurs additional costs, or is delayed in the performance of the work under this contract, solely by reason of the failure of the Government to allot additional funds in amounts sufficient for the timely performance of this contract, and if additional funds are allotted, an equitable adjustment shall be made in the price or prices (including appropriate target, billing and ceiling prices where applicable) of said items or in the time of delivery or both. Failure to agree to any such equitable adjustment hereunder shall be a dispute concerning a question of fact within the meaning of the clause in this contract entitled "Disputes."

(f) The Government may at any time prior to termination, and with the consent of the contractor, after notice of termination, allot additional funds for this contract.

(g) Nothing in this clause shall affect the right of the Government to terminate this contract pursuant to the clause of this contract entitle "Termination for Convenience of the Government."

$9-7.303-53 Organizational conflicts of interest.

The clause in §9-7.103-54 shall be used under the conditions set forth therein.

$9-7.303-54 Safety and health.

Insert the clause set forth in $9-50.704-2 where appropriate. $9-7.304 ERDA additional clauses.

This section provides ERDA clauses for use as needed.

$9-7.304-50 Priorities, allocations, and allotments.

The clause in $9-7.104-50 may be used under the conditions set forth therein.

$9-7.304-51 Permits and licenses.

The clause in §9-7.104-51 may be used under the conditions set forth therein.

The following clause may be used only in those unclassified research contracts with educational institutions which may involve making unclassified information about atomic energy available to certain foreign nations. The attachment referred to in the clause should set forth the applicable requirements of IAD 3300-1 and Chapter 3204, "Dissemination of Unclassified Published and Unpublished Technical Information to Foreign Nations." This clause should not be used routinely in all research contracts with educational institutions which do not involve unclassified information about atomic energy.

In

Soviet-Bloc controls

connection with the contract activites, the contractor agrees to comply with the requirements set forth in Attachment of this contract relating to the countries listed therein. From time to time, by written notice to the contractor ERDA shall have the right to change the listings of countries in Attachment upon a determination by ERDA that such change is in conformance with national policy. The contractor shall have the right to terminate its performance under this contract upon at least 60 days' prior written notice to ERDA if the contractor determines that it is unable, without substantially interfering with its policies as an educational institution or without adversely affecting its performance, to continue performance of the work under this contract as a result of a change in Attachment made by ERDA pursuant to the preceding sentence. If the contractor elects to terminate performance, the provisions of this contract respecting termination for the convenience of the Government shall apply.

$9-7.304-53 Avoidance of conflicts of interest.

The following clause may be used only in contracts with educational institutions where ERDA has major investments in facilities but does not own or lease the land. This clause shall not be used routinely in all contracts with educational institutions.

Avoidance of conflicts of interest

The parties agree that the university has adopted policies and procedures, designed to avoid conflict of interest situations,

which are in substantial conformance with the Joint Statment of the Council of American Association of University Professors and the American Council on Education of December 1964, entitled "On Preventing Conflicts of Interest in Government-Sponsored Research at Universities," which policies and procedures will be applied in connection with this contract.

Insert the clauses set forth in §§9-50.704-6, 9-50.704-7 and 9-50.704-8 where appropriate.

Subpart 9-7.4

$9-7.400 Scope.

Cost-Reimbursement Type Research
and Development Contracts.

This subpart supplements FPR 1-7.4.

$9-7.402 Required clauses.

FPR 1-7.402 sets forth rquired clauses. This section prescribes modifications to certain of these FPR required clauses, and establishes additional ERDA required classes.

(c) Modify paragraph (a)(1)(i) of FPR 1-7.202-4 as set forth in $9-7.202-4.

59-7.402-7 Examination of records by Comptroller General.

Insert the clause prescribed by FPR 1-7.103-3, modified as set forth in §9-7.103-3.

Modify FPR 1-7.402-8, paragraph (b)(5), to read as set forth in $9-7.103-28.