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rities on exchanges; taxes which are paid contrary to the clause entitled "State and local taxes"; Federal taxes on net income and excess profits; special assessments on land which represent capital improvement; and taxes on accumulated funding deficiencies of, or prohibited transactions involving, employee deferred compensation plans pursuant to Section 4971 or Section 4975 of the Internal Revenue Code of 1954, as amended, respectively.

(22) Salary or other compensation (and expenses related thereto) of any individual employed under this contract as a consultant or in another comparable employment capacity who is an employee of another organization and concurrently performing work on a full-time annual basis for that organization under a cost-type contract with ERDA, except to the extent that cash payment therefor is required pursuant to the provisions of this contract or procedures of ERDA applicable to the borrowing of such an individual from another cost-type contractor.

(23) First-class air travel in excess of the cost of less than first-class air accommodations, except when less than first-class accommodations are not reasonably available to meet necessary mission requirements, such as, where less than first-class accommodations

would:

(i) Require circuitous routing,

(ii) Require travel during unreasonable hours,

(iii) Greatly increase the duration of the flight,

(iv) Result in additional costs which would offset the transportation savings,

(v) Offer accommodations which are not reasonably adequate

for the medical needs of the traveler.

(24) Late premium payment charges related to employee deferred compensation plan insurance, in accordance with $9-15.205-16.

NOTE: The following additional examples of items of unallowable costs are to be used in on-site architect-engineer contracts:

(25)

(26)

Costs of preparing proposals.

Central and branch office expenses of the contractor,

except as specifically set forth in the contract.

(27) Travel expenses of officers, partners, proprietors, executives, administrative heads, and other employees of the

contractor's central office or branch office organization concerned with the general management, supervision, and conduct of the contractor's business as a whole, except to the extent that particular travel is in connection with the contract and approved by the Contracting Officer.

$9-50.704-17 Obligation of funds (operating contracts).

(a) Obligation of funds. The amount presently obligated by the Government with respect to this contract is dollars

($ ). Such amount may be increased unilaterally by ERDA by written notice to the contractor and may be increased or decreased by written agreement of the parties (whether or not by formal modification of this contract). Estimated revenues and receipts from others for work and services to be performed under this contract are not included in the amount obligated with respect to this contract. Such revenues and receipts, to the extent actually received by the contractor, shall be available and used for the payment of allowable costs as provided in the article entitled "Payments and advances." Nothing in this paragraph (a) is to be construed as authorizing the contractor to exceed limitations stated in financial plans established by ERDA and furnished to the contractor from time to time under this

contract.

(b) Limitation on payment by the Government. Except as otherwise provided in this contract and except for costs which may be incurred by the contractor pursuant to the article entitled "Termination" or costs of claims allowable under the contract accruing after completion or termination and not released by the contractor at the time of financial settlement of the contract in accordance with the article entitled "Payments and advances," payment by the Government under this contract on account of allowable costs shall not in the aggregate exceed the amount obligated with respect to this contract, less the contractor's fixed fee. Unless expressly negated in this contract, payment on account of those costs excepted in the preceding sentence which are in excess of the amount obligated with respect to this contract shall be subject to the availability of (1) revenues and receipts deposited to the Government's account as provided in the article entitled "Payments and advances," and (2) other funds which ERDA may legally use for such purpose: Provided, ERDA will use its best efforts to obtain the appropriation of funds for this purpose if not otherwise available.

The

(c) Notices--Contractor excused form further performance. contractor shall notify ERDA in writing whenever the unexpected balance of funds (including revenues and receipts) available under paragraph (a) above, plus the contractor's best estimate of revenues and receipts to be received during the ___day period hereinafter

2

specified, is in the contractor's best judgment sufficient to continue contract operations at the programed rate for only days and to cover the contractor's unpaid fixed fee, and outstanding commitments and liabilities on account of costs allowable under the contract at the end of such period. Whenever the unexpected balance of funds (including revenues and receipts) available under paragraph (a) above, less the amount of the contractor's fixed fee then earned but not paid, is in the contractor's best judgment either sufficient only to liquidate outstanding commitments and liabilities on account of costs allowable under this contract or is equal to zero, the contractor shall immediately notify ERDA and shall make no further commitments or expenditures (except to liquidate existing commitments and liabilities), and, unless the parties otherwise agree, the contractor shall be excused from further performance (except such performance as may become necessary in connection with termination by the Government) and the performance of all work hereunder will be deemed to have been terminated for the convenience of the Government in accordance with the provisions of the article entitled "Termination."

(d) Financial plans; cost and commitment limitations. In addition to the limitations provided for elsewhere in this contract ERDA through financial plans or other directives issued to the contractor, establish controls on the costs to be incurred and commitments to be made in the performance of the contract work. Such plans and instruction may be amended or supplemented from time to time by The contractor hereby agrees to comply with the specific limitations (ceilings) on costs and commitments set forth in such plans and directives, to use its best efforts to comply with the other requirements of such plans and directives, and to promptly notify ERDA in writing whenever it has reason to believe the authorized financial levels of costs and commitments will be exceeded or substantially underrun.

ERDA.

NOTE: This paragraph (d) may be omitted in contracts which expressly or otherwise provided a contractual basis for equivalent controls in a separate article.

of any

(e) Government's right to terminate not affected. The giving notice under this article shall not be construed to waive or impair any right of the Government to terminate the contract under 曼 the provisions of the article entitled "Termination."

$9-50.704-18 Payments and advances

(a) Installments of fixed fee. Ninety percent (90%) of the fixed fee shall become due and payable in periodic installments in amounts based on the proportion of the work then completed, as determined by the Contracting Officer, and the balance upon completion and acceptance of all work under this contract.

NOTE A:

For operating contracts use: "The fixed fee proshall be paid in equal monthly installments

vided for in Clause

as it accrues."

NOTE B: Where a separate fixed fee is provided for a separate item of work, this subparagraph should be modified to permit payment of the entire fixed fee upon completion of that item.

(b) Payments on Account of Allowable Costs. The Contracting Pfficer and the contractor shall agree as to the extent to which payment for allowable costs or payments for other items specifically approved in writing by the Contracting Officer shall be made from advances of Government funds.

as

an

(c) Special Bank Account--Use. All advances of Government funds shall be withdrawn pursuant to a letter of credit in favor of the contractor or, in the option of the Government, shall be made by check payable to the contractor, and shall be deposited only in the Special Bank Account referred to in the Agreement for Special Bank Account, which is attached hereto and incorporated into this contract appendix. The contractor shall likewise deposit in the Special Bank Account any other revenues received by the contractor in connection with the work under this contract. No part of the funds in the Special Bank Account shall be (1) mingled with any funds of the contractor or (2) used for a purpose other than that of making payments for costs allowable under this contract or payments for other items specifically approved in writing by the Contracting Officer. If the Contracting Officer shall at any time determine that the balance on such bank account exceeds the contractor's current needs, the contractor shall promptly make such disposition of the excess as the Contracting Officer may direct.

NOTE: For Special Bank Account Agreement, see $9-50.704-19.

(d) Title to funds advanced. Title to the unexpended balance of any funds advanced and of any bank account established pursuant to this clause shall remain in the Government and be superior to any claim or lien of the bank of deposit or others. It is understood that an advance to the contractor hereunder is not a loan to the contractor, and will not require the payment of interest by the contractor, and that the contractor acquires no right, title or interest in or to such advance other than the right to make expenditures there from as provided in this clause.

(e) Review and approval of costs incurred. The contractor shall prepare and submit annually as of June 30 a voucher, for the total of net expenditures accrued (i.e., net costs incurred) for the period covered by the voucher, and ERDA, after audit and appropriate adjustment, will approve such voucher. This approval by ERDA will constitute an acknowledgment by ERDA that the net costs incurred are allowable under the contract and that they have been recorded in the accounts maintained by the contractor in accordance with ERDA accounting policies, but will not relieve the contractor of responsibility for ERDA's assets in its care, for apropriate subsequent adjustments, or for errors later becoming known to ERDA.

NOTE: This paragraph (e) should be omitted in contracts with nonintegrated contractors.

(f) Financial settlement. The Government shall promptly pay to the contractor the unpaid balance of allowable costs and fixed fee upon termination of the work, expiration of the term of the contract, or completion of the work and its acceptance by the Government after (1) compliance by the contractor with ERDA's patent clearance requirements, and (2) the furnishing by the contractor of:

(1) An assignment of the contractor's rights to any refunds, rebates, allowances, accounts receivable, or other credits applicable to allowable costs under the contract;

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(3) The accounting for Government-owned property required by the clause entitled "Property."

(4) A release discharging the Government, its officers, agents, and employees from all liabilities, obligations, and claims arising out of or under this contract, subject only to the following exceptions:

(i) Specified claims in stated amounts or in estimated where the amounts are not susceptible of exact statement by the contractor;

amounts

(ii) Claims, together with reasonable expenses incidental thereto, based upon liabilities of the contractor to third parties arising out of the performance of this contract; provided that such claims are not known to the contractor on the date of the execution of the release; and provided further that the contractor gives notice of such claims in writing to the Contracting Officer not more than six (6) years after the date of the release or the date of any notice to the contractor that the Government is prepared to make final payment, whichever is earlier; and

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