§ 1-7.303-29 Subcontractor cost and pricing data.

Insert the appropriate clause set forth in § 1-3.814-3 under the conditions prescribed therein.

§§ 1-7.303-30-1-7.303-40 [Reserved]

§ 1-7.303-41 United States products and services (Balance of Payments Program).

Insert the clause set forth in § 16.806-4 under the conditions prescribed in Subpart 1-6.8.

§ 1-7.303-42 [Reserved]

§ 1-7.303-43 [Reserved]

§ 1-7.303-44 Care of laboratory animals. Insert the following clause in all contracts involving the use of experimental or laboratory animals:

CARE OF LABORATORY ANIMALS

(a) Before undertaking performance of any contract involving the use of laboratory animals, the Contractor shall register with the Secretary of Agriculture of the United States in accordance with Section 6, P.L. 89544, Laboratory Animal Welfare Act, August 24, 1966, as amended by P.L. 91-579, Animal Welfare Act of 1970, December 24, 1970. The Contractor shall furnish evidence of such registration to the Contracting Offi

cer.

(b) The Contractor shall acquire animals used in research and development programs from a dealer licensed by the Secretary of Agriculture, or from exempted sources in accordance with the Public Laws enumerated in (a), above, of this provision.

(c) In the care of any live animals used or intended for use in the performance of this contract, the Contractor shall adhere to the principles enunciated in the Guide for Care and Use of Laboratory Animals prepared by the Institute of Laboratory Animal Resources, National Academy of Sciences (NAS)-National Research Council (NRC), and in the United States Department of Agriculture's (USDA) regulations and standards issued under the Public Laws enumerated in (a) above. In case of conflict between standards, the higher standard shall be used. Contractor reports on portions of the contract in which animals were used shall contain a certificate stating that the animals were cared for in accordance with the principles enunciated in the Guide for Care and Use of Laboratory Animals prepared by the Institute of Laboratory Animal Resources, NAS-NRC, and/or in the regula

tions and standards as promulgated by the Agricultural Research Service, USDA, pursuant to the Laboratory Animal Welfare Act of August 24, 1966, as amended (P.L. 89544 and P.L. 91-579).

NOTE: The Contractor may request registration of his facility and a current listing of licensed dealers from the Regional Office of the Animal and Plant Health Inspection Service (APHIS), USDA, for the region in which his research facility is located. The location of the appropriate APHIS Regional Office as well as information concerning this program may be obtained by contacting the Senior Staff Officer, Animal Care Staff, USDA/APHIS, Federal Center Building, Hyattsville, MD 20782.

§ 1-7.303-45 [Reserved]

§ 1-7.303-46 Insurance.

Insert the following clause in all contracts requiring work on a Government installation. The clause is not required for contracts (a) of $10,000 or less, (b) when only a small amount of work is required to be performed on the Government installation such as occasional visits, and (c) where all the work on a Government installation is to be performed outside the United States, its possessions, and the Commonwealth of Puerto Rico.

INSURANCE

(a) The Contractor shall, at his own expense, procure and maintain during the entire performance period of this contract insurance of at least the kinds and minimum amounts set forth in the Schedule of this contract.

(b) At all times during performance, the Contractor shall maintain with the Contracting Officer a current Certificate of Insurance showing at least the insurance required by the Schedule, and providing for 30 days written notice to the Contracting Officer by the insurance company prior to cancellation or material change in policy coverage.

(c) The Contractor shall also require all first-tier subcontractors who will perform work on a Government installation to procure and maintain the insurance required by the Schedule during the entire period of their performance. The Contractor shall furnish (or assure that there has been furnished) to the Contracting Officer a current Certificate of Insurance meeting the requirements of (b), above, for each such firsttier subcontractor, at least 5 days prior to entry of each such subcontractor's personnel on the Government installation.

§§ 1-7.303-47-1-7.303-50 [Reserved]

§ 1-7.303-51 Minority business enterprises subcontracting program.

Insert the clause set forth in § 11.1310-2(b) under the conditions and in manner prescribed therein.

§§ 1-7.303-52-1-7.303-54 [Reserved]

§1-7.303-55 Cost accounting standards.,

(a) National defense procurements. Insert the notices set forth in § 13.1203-3(a) in solicitations of proposals and the appropriate contract clauses set forth in § 1.3.1204-1 in negotiated contracts in accordance with the provisions of Subpart 1-3.12.

(b) Nondefense procurements. Insert the notice set forth in § 1-3.1203-3(b) in solicitations of proposals and the appropriate contract clause set forth in § 1-3.1204-2 in negotiated contracts in accordance with the provisions of Subpart 1-3.12.

[43 FR 14121, Apr. 4, 1978]

(b) Insert the clause set forth in § 11.713-3(e) in subcontracts which will be executed by the Small Business Administration and its subcontractors.

§ 1-7.303-65 Privacy Act.

Insert the clause prescribed by § 11.327-5 under the conditions set forth therein.

[40 FR 44504, Sept. 26, 1975]

§ 1-7.303-66 Use of U.S. flag commercial vessels.

Insert the clause prescribed by § 119.108-2 under the conditions set forth therein.

[41 FR 52457, Nov. 30, 1976]

§ 1-7.304 Additional clauses.

The following clauses may be inserted in fixed-price research and development contracts when it is desired to cover the subject matter thereof. § 1-7.304-1 Changes.

CHANGES

The Contracting Officer may at any time, by a written order, and without notice to the sureties, if any, make changes, within the general scope of this contract, in any one or more of the following: (i) Drawings, designs, or specifications; (ii) method of shipment or packing; and (iii) place of inspection, delivery, or acceptance. If any such change causes an increase or decrease in the cost of, or the time required for performance of, this contract, or otherwise affects any other provisions of this contract, whether changed or not changed by any such order, an equitable adjustment shall be made (i) in the contract price or time of performance, or both, and (ii) 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 thirty (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, nothing in this clause shall excuse the Contractor from proceeding with the contract as changed.

The period of "30 days" within which a claim must be asserted may be varied in accordance with agency procedures.

§ 1-7.304-2 Alterations in contract.

Insert the clause set forth in § 17.204-1.

§ 1-7.304-3 Approval of contract.

Insert the clause set forth in § 17.204-2.

§ 1-7.304-4 [Reserved]

§ 1-7.304-5 Notice regarding late delivery. Insert the clause set forth in § 17.204-4.

§ 1-7.304-6 Key personnel.

KEY PERSONNEL

The personnel specified in an attachment to this contract are considered to be essential to the work being performed hereunder. Prior to diverting any of the specified individuals to other programs, the Contractor shall notify the Contracting Officer reasonably in advance and shall submit justification (including proposed substitutions) in sufficient detail to permit evaluation of the impact on the program. No diversion shall be made by the Contractor without the written consent of the Contracting Officer: Provided, That the Contracting Officer may ratify in writing such diversion and such ratification shall constitute the consent of the Contracting Officer required by this clause. The attachment to this contract may be amended from time to time during the course of the contract to either add or delete personnel, as appropriate.

§ 1-7.304-7 Liquidated damages.

Insert the provision set forth in § 11.315-3 under the conditions and in the manner prescribed in § 1-1.315. Where Standard Form 32 is not included in the contract, the provision set forth in § 1-1.315-3 shall be modified by replacing the first paragraph with appropriate references to the Default clause contained in the contract.

§ 1-7.304-8 Disposition of material.

DISPOSITION OF MATERIAL

Upon termination or completion of all work under this contract, the Contractor shall prepare for shipment, deliver f.o.b. destination, or dispose of all materials re

ceived from the Government and all residual materials produced in connection with the performance of this contract as may be directed by the Contracting Officer, or as specified in other provisions of this contract. All materials produced or required to be delivered under this contract become and remain the property of the Government.

§ 1-7.304-9 Reports of work.

REPORTS OF WORK

(a) The Contractor shall submit separate monthly progress reports of all work accomplished during each month of contract performance. Reports shall be in narrative form, and brief and informal in content. Monthly reports shall include:

(i) A quantitative description of overall progress;

(ii) An indication of any current problems which may impede performance, and proposed corrective action; and

(iii) A discussion of the work to be performed during the next monthly reporting period.

Monthly reports shall be submitted in a reproducible copy plus the number of copies specified in the Schedule.

(b) The Contractor shall submit separate quarterly reports of all work accomplished during each 3 month period of contract performance. In addition to factual data, these reports shall include a separate analysis section which interprets the results obtained, recommends further action, and relates occurrences to the ultimate objectives of the contract work. Sufficient diagrams, sketches, curves, photographs, and drawings shall be included to convey the intended meaning. Quarterly reports shall be submitted in a reproducible copy plus the number of copies specified in the Schedule.

(c) The Contractor shall submit a final report which documents and summarizes the results of the entire contract work, including recommendations and conclusions based on the experience and results obtained. The final report shall include tables, graphs, diagrams, curves, sketches, photographs, and drawings in sufficient detail to comprehensively explain the results achieved under the contract. The final report shall be submitted in a reproducible copy plus the number of copies specified in the Schedule.

§ 1-7.400 Scope of subpart.

This subpart sets forth contract clauses for use in cost-reimbursement type research and development contracts.

§1-7.401 Applicability.

As used throughout this subpart, the term "cost-reimbursement type research and

development contract" means any contract (other than a letter contract, notice of award, or modification not effecting new procurement) which is (a) entered into on a cost, cost-sharing, or cost-plus-a-fee basis, and (b) is for experimental, developmental, or research work. Unless clearly inappropriate, these clauses may also be used in other types of nonpersonal services contracts; e.g., studies, surveys, and demonstrations in socio-economic areas, except for (a) construction, (b) architect-engineer services, and (c) those subject to the Service Contract Act of 1965, as amended.

§1-7.402 Required clauses.

The clauses set forth in this §17.402 shall be inserted, as required, in all cost-reimbursement type research and development contracts.

§1-7.402-1 Definitions.

Insert the clause set forth in § 17.102-1. Additional definitions may be included provided they are not inconsistent with the clause or the provisions of these regulations.

§1-7.402-2 Limitation of cost or funds.

(a) Insert the clause set forth in § 17.202-3(a) in all fully funded cost-reimbursement type research and development contracts which do not provide for cost sharing. The clause is equally applicable to contracts not providing for the payment of a fee, and, if desired, may be altered to delete the words "exclusive of fee" wherever they appear.

(b) Insert the following clause in fully funded cost-reimbursement type research and development contracts which provide for cost sharing. The contract schedule shall include a costsharing formula agreed upon by the

contracting officer and the contractor. The formula shall provide for the ratio of cost-sharing for both the originally established estimated cost and any increase pursuant to paragraph (b) of the clause.

LIMITATION Of Cost (Cost-Sharing)

(a) It is estimated that the cost to the Government for the performance of this contract (exclusive of any fee) will not exceed the estimated cost to the Government set forth in the Schedule, and the Contractor agrees to use his best efforts to perform the work specified in the Schedule and all obligations under this contract within such estimated cost to the Government plus the share of the cost of performance agreed to be borne by the Contractor, as set forth in the Schedule. If, at any time, the Contractor has reason to believe that the costs which he expects to be incurred in the performance of this contract in the next succeeding 60 days, when added to all costs previously incurred, will exceed 75 percent of the estimated total cost to the Government and to the Contractor then set forth in the Schedule, or if, at any time, the Contractor has reason to believe that the total cost for the performance of this contract (exclusive of any fee) will be greater or substantially less than the then estimated total cost thereof, the Contractor shall notify the Contracting Officer in writing to that effect, giving his revised estimate of such total cost for the performance of this contract.

(b) Except as required by other provisions of this contract, specifically citing and stated to be an exception from this clause, the Government shall not be obligated to reimburse the Contractor for costs incurred in excess of the estimated cost to the Government set forth in the Schedule, and the Contractor shall not be obligated to continue performance under the contract (including actions under the Termination clause) or otherwise to incur costs in excess of the estimated total cost set forth in the Schedule, unless and until the Contracting Officer shall have notified the Contractor in writing that such estimated total cost has been increased and shall have specified in such notice a revised estimated total cost which shall thereupon constitute the estimated total cost of performance of this contract. The increase in such estimated total cost shall be allocated in accordance with the formula set forth in the Schedule governing such increases. No notice, communication, or representation in any other form or from any person other than the Contracting Officer shall affect the estimated cost to the Government of this contract. In the absence of the specified notice, the Government

shall not be obligated to reimburse the Contractor for any costs in excess of the estimated cost to the Government set forth in the Schedule, whether those excess costs were incurred during the course of the contract or as a result of termination. When and to the extent that the estimated total cost set forth in the Schedule has been increased, any costs incurred by the Contractor in excess of the estimated total cost prior to such increase shall be allowable to the same extent and in the same percentage as if such costs had been incurred after the increase; unless the Contracting Officer issues a termination or other notice and directs that the increase is solely for the purpose of covering termination or other specified expenses.

(c) Change orders issued pursuant to the Changes clause of this Contract shall not be considered an authorization to the Contractor to exceed the estimated cost to the Government set forth in the Schedule in the absence of a statement in the change order, or other contract modification, increasing the estimated cost.

(d) In the event this contract is terminated or the estimated cost not increased, the Government and the Contractor shall negotiate an equitable distribution of all property produced or purchased under the contract based upon the share of costs incurred by each.

(c) Insert the clause set forth in § 17.202-3(b) in cost-reimbursement type research and development contracts which are to be incrementally funded and which do not provide for costsharing.

(d) Insert the following clause in cost-reimbursement type research and development contracts which are to be incrementally funded and which provide for cost-sharing. The contract schedule shall include a cost sharing formula agreed upon by the contracting officer and the contractor. The formula shall provide for the ratio of cost-sharing for both the originally established estimated cost and any increase pursuant to paragraph (b) of the clause.

LIMITATION of Funds (Cost-SHARING)

(a) It is estimated that the cost to the Government for the performance of this contract will not exceed the estimated cost to the Government set forth in the Schedule, and the Contractor agrees to use his best efforts to perform the work specified in the Schedule and all obligations under this contract within such estimated cost to the Government plus the share of the cost of

performance agreed to be borne by the Contractor, as set forth in the Schedule.

(b) The amount presently available for payment by the Government and allotted to this contract, the items covered thereby, the Government's share of the cost thereof, and the period of performance which it is estimated the allotted amount will cover, are specified in the Schedule. It is contemplated that from time to time additional funds will be allotted to this contract up to the full estimated cost to the Government set forth in the Schedule, exclusive of any fixed fee. The Contractor agrees to perform or have performed work on this contract up to the point at which the total amount paid and payable by the Government pursuant to the terms of this contract approximates but does not exceed the total amount actually allotted by the Government to the contract. (c) If at any time the Contractor has reason to believe that the costs which he expects to incur in the performance of this contract in the next succeeding 60 days, when added to all costs previously incurred, will exceed 75 percent of the total of the amount then allotted to the contract by the Government plus the Contractor's corresponding share, the Contractor shall notify the Contracting Officer in writing to that effect. The notice shall state the estimated amount of additional funds required to continue performance for the period set forth in the Schedule. Sixty days prior to the end of the period specified in the Schedule the Contractor will advise the Contracting Officer in writing as to the estimated amount of additional funds, if any, that will be required for the timely performance of the work under the contract or for such further period as may be specified in the Schedule or otherwise agreed to by the parties. If, after such notification, additional funds are not allotted by the end of the period set forth in the Schedule or an agreed date substituted therefor, the Contracting Officer will, upon written request by the Contractor, terminate this contract pursuant to the provisions of the Termination clause on such date. If the Contractor, in the exercise of his reasonable judgment, estimates that the funds available will allow him to continue to discharge his obligations hereunder for a period extending beyond such date, he shall specify the later date in his request, and the Contracting Officer, in his discretion, may terminate on that later date.

(d) Except as required by other provisions of this contract specifically citing and stated to be an exception from this clause, the Government shall not be obligated to reimburse the Contractor for costs incurred in excess of the amount from time to time allotted by the Government to the contract, and the Contractor shall not be obligated to continue performance under the contract