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Subpart 10—Exemption of Certain Contracts With Foreign Contractors From

the Requirement for an Examination of Records Clause 6.1000 Scope of Subpart. This Subpart sets forth policies and procedures for exempting the requirement for the "Examination of Records” clause in contracts with foreign contractors and foreign subcontractors.

6.1001 Statutory Requirements.

(a) In accordance with 10 U.S.C. 2313(c), the "Examination of Records” cause may be excluded from negotiated contracts and subcontracts with foreign contractors and foreign subcontractors where:

(i) the Administrator determines, with the concurrence of the Comp

troller General or his designee, that inclusion of the clause would

not be in the public interest; or (ü) where (A) the contractor or subcontractor is a foreign government or

agency thereof or is precluded by the laws of the country involved from making its books, documents, papers, or records

available for examination, and (B) The Administrator determines, after taking into account the

price and availability of the property or services from United States sources, that the public interest would be best served

by exclusion of the clause. (b) A determination of the Administrator under (ü) above does not require the concurrence of the Comptroller General or his designee. However, where a determination of the Administrator under (ü) is the basis for exclusion of the "Examination of Records" clause, the statute requires that a written report be furnished to the Congress. This report, which shall explain the reasons for the determination, shall be prepared in triplicate, signed by the head of the installation concerned, and forwarded to the Director of Procurement (Code KDP-2 for processing to the Administrator.

6.1002 Policy. The "Examination of Records" clause shall be included wherever possible. Exclusion of the clause should be allowed only after the contracting officer has made all reasonable efforts to include the clause and has considered such factors as alternate sources of supply, additional cost, and time of delivery. "Foreign Contractor" for purposes of this Subpart is defined as "one that is organized or existing under the laws of a country other than the United States, its territories or possessions."

6.1003 Requests for Determinations and Findings. Request for determinations and findings for exclusion ordinarily will be initiated by the contracting officer. The request shall consist of a letter submitted through normal procurement channels, addressed to the Administrator setting forth all the facts necessary to arrive at an appropriate determination and findings.

a

FOREIGN PURCHASES

6.1004 Determination and Findings. The determination and findings made by the Administrator to authorize exclusion of the "Examination of Records" clause from a contract with a foreign contractor or foreign subcontractor under 10 U.S.C. 2313(c) shall:

(i) identify the contract and its purpose, and state, that it is a contract

or subcontract with a foreign contractor or foreign subcontractor, or that the contractor or subcontractor is a foreign government or

agency thereof; (ii) describe the efforts that have been made to include the clause in

the contract or subcontract; (iii) state the reasons for the contractor's or subcontractor's refusal to

include the clause; (iv) describe the price and availability of the property or services from

United States and other sources; and (v) determine that it is in the public interest to exclude the clause

pursuant to the provisions of 10 U.S.C. 2313(c).

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701 701 701 701 701 701 702 702 702 703 703 704 704 705 705 705 705 705 705

PART 7–CONTRACT CLAUSES

Table of Contents Paragraph 7.000 Scope of Part.....

Subpart 1-Clauses for Fixed-Price Supply Contracts
7.100 Scope of Subpart---
7.101 [Reserved).
7.102 Applicability---
7.103 Required Clauses.-

7.103-1 Definitions
7.103–2 Changes.
7.103-3 Extras.
7.103-4 Variation in Quantity--
7.103-5 Inspection...
7.103-6 Responsibility for Supplies -
7.103–7 Payments...
7.103-8 Assignment of Claims...
7.103-9 Additional Bond Security
7.103–10 Federal, State, and Local Taxes...
7.103-11 Default.
7.103–12 Disputes.-
7.103-13 Renegotiation. ...
7.103-14 [Reserved).

---
7.103–15 (Reserved] - -
7.103-16 Contract Work Hours Standards Act-Overtime

Compensation
7.103–17 Walsh-Healey Public Contracts Act
7.103-18 Equal Opportunity. ..
7.103-19 Officials Not To Benefit..
7.103–20 Covenant Against Contingent Fees .---
7.103-21 Termination for Convenience of the Government-
7.103-22 Authorization and Consent..
7.103–23 Notice and Assistance Regarding Patent and

Copyright Infringement.--
7.103-53 Interest.
7.104 Clauses Required To Be Used When Applicable..
7.104-1 Clauses for Contracts Involving Construction

Work..---
7.104–2 Soviet-Controlled Areas.
7.104-3 Buy American Act-----
7.104-4 Notice to the Government of Labor Disputes.--
7.104-5 Patent Indemnity.
7.104-6 Filing of Patent Applications.
7.104-7 New Technology
7.104-8 [Reserved] -
7.104-9 Rights in Data.
7.104-10 Ground and Flight Risk.

..
7.104-11 (Reserved] -

)
7.104–12 Security Requirements..
7.104-13 [Reserved]---

NASA PROCUREMENT REGULATION

705 705 705 706 706 706 706

706 706 706

706 707 707 707 707 707 707 707 707 707 707 707 708

Subpart 1-Clauses for Fixed-Price Supply Contracts—Continued

Page

Paragraph
7.104 Clauses Required To Be Used When Applicablo-Continued
7.104-14 Utilization of Small Business Concerns..

708 7.104-15 Examination of Records....

708 7.104-16 (Reserved)..

708 7.104-17 Convict Labor.---

709 7.104–18 Priorities, Allocations, and Allotments.

709 7.104–19 [Reserved)---

709 7.104–20 Utilization of Concerns in Labor Surplus Areas.. 709 7.104,21 Limitation on Withholding of Payments...

709 7.104-22 Small Business Subcontracting Program.

709 7.104-23 Subcontracts.

709 7.104–24 Government Property

709 7.104–25 Special Tooling --

709 7.104-26 through 7.104-34 (Reserved]

709 7.104-35 Progress Payments

709 7.104–36 Preference for United States-Flag Vessels.---- 712 7.104–37 (Reserved]--

712 7.104-38 Labor Surplus Area Subcontracting Program. 712 7.104-39 [Reserved)..

712 7.104-40 Competition in Subcontracting..

712 7.104-41 Contractor and Subcontractor Certified Cost or Pricing Data...

712 7.104-42 Audit and Records...

712 7.104_43 through 7.104–49 (Reserved)--

713 7.104–50 Data Requirements.---

713 7.104–51 Approval of Contract.

713 7.104-52 through 7.104–55 (Reserved]--

713 7.104–56 Order of Precedence..

713 7.104–57 Liability for Government Property Furnished for Repair or Other Services.

713 7.104-58 Safety and Health...

713 7.104-59 Non-Use of Foreign-Flag Vessels Engaged in Cuban and North Vietnam Trade...

713 7.104-60 Report on NASA Subcontracts...

713 7.104-61 Rights in Data for Potentially Hazardous Items.. 713 7.104-62 Potentially Hazardous Items...

713 7.104-63 Disclosure of Unsolicited Proposals Outside Government.

713 7.105 Additional Clauses...

713 7.105-1 Alterations in Contractor.

713 7.105–2 through 7.105-4 (Reserved]

714 7.105-5 Liquidated Damages.--

714 7.105-6 Bill of Materials.

714 7.105-7 Supply Warranty-

714, 1 7.105-8 Stop Work Orders...

714,1

Page

Subpart 1-Clauses for Fixed-Price Supply Contracts Continued Paragraph 7.106 Price Escalation Clauses (Established Prices)---

716 7.106-1 Escalation Clause for Basic Steel, Aluminum,

Brass, Bronze, or Copper Mill Products ---- 716 7.106-2 Escalation Clause for Nonstandard Steel Items.. 717 7.106-3 Escalation Clause for Standard Supplies..

720 7.106-4 Escalation Clause for Semistandard Supplies. 721 7.107 Price Escalation Clause (Labor and Material)---

723 7.108 Incentive Price Revision Clause.

724. 1 7.109 Price Redetermination..-

724.4 7.109–1 General..

724. 4 7.109-2 Prospective Periodic Price Redetermination at Stated Intervals..--

724. 4 7.109-3 [Reserved)--

724, 7 7.109–4 Retroactive Price Redetermination After Completion.--

724. 7 Subpart 2—Clauses for Cost-Reimbursement Type Supply Contracts 7.200 Scope of Subpart.-

725 7.201 (Reserved)

725 7.202 Applicability.

725 7.203 Required Clauses.-

725 7.203-1 Definitions

725 7.203–2 Changes.

725 7.203-3 Limitation of Cost --

725 7.203-4 Allowable Cost, Fixed-Fee and Payment.

726 7.203–5 Inspection of Supplies and Correction of Defects. 728. 3 7.203-6 Assignment of Claims...

729 7.203-7 Examination of Records..

729 7.203–8 Subcontracts.

730 7.203-9 Utilization of Small Business Concerns.

732 7.203-10 Termination..

732 7.203-11 Excusable Delays.

732 7.203-12 Disputes.

732 7.203–13 Renegotiation..

732 7.203–14 (Reserved)-

732 7.203-15 Convict Labor..

732 7.203-16 Contract Work Hours Standards Act-Overtime Compensation.

732 7.203–17 Walsh-Healey Public Contracts Act. -.

732 7.203-18 Equal Opportunity-

732 7.203–19 Officials Not To Benefit....

732 7.203–20 Covenant Against Contingent Fees.

732 7.203-21 Government Property-

732 7.203-22 Insurance Liability to Third Persons.

732 7.203-23 Authorization and Consent...

733 7.203–24 Notice and Assistance Regarding Patent and Copyright Infringement

733 7.203-25 [Reserved). ----

733

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