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vide explicitly against an attempted transfer of performance responsibility: ASSIGNMENT OF CLAIMS AND DELEGATIONS OF RESPONSIBILITY

The Contractor shall not assign, transfer, pledge, nor make other disposition of this contract, or any part thereof, or of any rights, claims, or obligations of the Contractor arising from this contract, nor shall the Contractor transfer or otherwise delegate the performance of any functions hereunder except with the prior written approval of the Contracting Officer.

§ 6-7.101-10 Examination of Records.

The clause set forth in § 1-7.101-10 of this title may be excluded from negotiated contracts only in accordance with procedures provided in Subpart 1-6.10 of this title and Subpart 6-6.10 of this chapter.

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(a) Except as otherwise provided in this contract, any dispute concerning a question of fact arising under this contract which is not disposed of by agreement shall be decided by the Contracting Officer, who shall reduce his decision to writing and mail or otherwise furnish a copy thereof to the Contractor. The decision of the Contracting Officer shall be final and conclusive unless, within 30 days from the date of receipt of such copy, the Contractor mails or otherwise furnishes to the Contracting Officer a written appeal addressed to the Secretary. The decision of the Secretary or his duly authorized representative for the determination of such appeals shall be final and conclusive to the extent permitted by U.S. law. In connection with any appeal proceeding under this clause, the Contractor shall be afforded an opportunity to be heard and to offer evidence in support of his appeal. Pending final decision of a dispute hereunder, the Contractor shall proceed diligently with the performance of the contract and in accordance with the Contracting Officer's decision.

(b) This "Disputes" clause does not preclude consideration of law questions in connection with decisions provided for in paragraph (a) above: Provided, That nothing in this contract shall be construed as making final the decision of any administrative official, representative, or board on a question of law.

§ 6-7.101-20 Covenant against contingent fees.

The clause set forth in § 1-1.503 of this title shall not be excluded from any contract.

§ 6–7.101-22 Federal, State, and local

taxes.

The following clause is applicable in lieu of the clauses referred to in § 17.101-22 of this title. The contracting officer shall obtain and make a part of the contract file detailed information concerning the specific taxes, normally applicable to the transaction, for which there is an exemption.

TAXES, DUTIES, AND CHARGES FOR DOING BUSINESS

(a) As used throughout this clause, the words and terms defined in this paragraph shall have the meanings set forth herein.

(1) The term "country concerned" means any country in which expenditures under this contract are made.

(ii) The words "tax" and "taxes" include fees and charges for doing business that are levied by the government of the country concerned or by political subdivisions

thereof.

(iii) The term "contract date" means the date of this contract or, if this is a formally advertised contract, the date set for bid opening; as to additional supplies or services procured by modification to this contract, the term means the date of the modification.

(b) Except as may be otherwise provided in this contract, the contract price includes all taxes and duties in effect and applicable to this contract on the contract date, except taxes and duties (1) from which the Government of the United States, the Contractor, any subcontractor, or the transactions or property covered by this contract are exempt under the laws of the country concerned or political subdivision thereof, or (ii) which the Government of the United States and the government of the country concerned have agreed shall not be applicable to expenditures in such country by or on behalf of the United States.

(c) (1) If the Contractor is required to pay or bear the burden

(1) Of any tax or duty which either was not to be included in the contract price pursuant to the requirements of paragraph (b) hereof, or was specifically excluded from the contract price by a provision of this contract;

or

(11) Of an increase in rate of any tax or duty, whether or not such tax or duty was excluded from the contract price; or

(iii) of any interest or penalty on any tax or duty referred to in (1) or (11) above, the contract price shall be correspondingly increased; provided that the Contractor warrants in writing that no amount of such tax, duty, or increase therein was included in the contract price as a contingency reserve or otherwise: And provided further, That liability for such tax, duty, increase therein, interest or penalty was not incurred through the fault or negligence of the Con

tractor or his failure to follow instructions of the Contracting Officer or to comply with the provisions of paragraph (d)(1) below.

(2) If the Contractor is not required to pay or bear the burden, or obtains a refund or drawback, in whole or in part, of any tax, duty, increase therein, interest or penalty which (1) was to be included in the contract price pursuant to the requirements of paragraph (b), (11) was included in the contract price, or (ii) was the basis of an increase in the contract price, the contract price shall be correspondingly decreased or the amount of such relief, refund, or drawback shall be paid to the Government of the United States, as directed by the Contracting Officer. The contract price also shall be correspondingly decreased if the Contractor, through his fault or negligence or his failure to follow instructions of the Contracting Officer or to comply with the provisions of subparagraph (d) (1) below, is required to pay or bear the burden, or does not obtain a refund or drawback of any such tax, duty, increase therein, interest or penalty. Interest paid or credited to the Contractor incident to a refund of taxes or duties shall inure to the benefit of the Government of the United States to the extent that such interest was earned after the Contractor was paid or reimbursed by the Government of the United States for such taxes or duties.

(3) If the Contractor obtains a reduction in his tax liability under the U.S. Internal Revenue Code of 1954, as amended (title 26, United States Code), on account of the payment of any tax or duty which either (1) was to be included in the contract price pursuant to the requirement of paragraph (b) of this clause, (ii) was included in the contract price, or (iii) was the basis of an increase in the contract price, the amount of the reduction shall be paid or credited to the Government of the United States as the Contracting Officer directs.

(4) Invoices or vouchers covering any adjustment of the contract price pursuant to this paragraph (c) shall set forth the amount thereof as a separate item and shall identify the particular tax or duty involved.

(5) No adjustment in the contract price or payment or credit to the United States is required pursuant to this paragraph (c) if the total amount thereof for the contract period will be less than one hundred dollars ($100).

(6) Subparagraphs (1) and (2) of this paragraph (c) shall not be applicable to social security taxes; income and franchise taxes, other than those levied on or measured by (1) sales or receipts from sales, or (11) the Contractor's possession of, interest in, or use of property, title to which is in the Government; excess profits taxes; capital stock taxes; transportation taxes; unemployment compensation taxes; or property taxes, other than such property taxes, allocable to this contract, as are assessed either on completed supplies covered by this contract, or on the Contractor's possession of, interest in,

or use of property, title to which is in the Government.

(d) (1) The Contractor shall take all reasonable action to obtain exemption from or refund of any taxes or duties, including interest or penalty, from which the U.S. Government, the Contractor, any subcontractor, or the transactions or property covered by this contract are exempt under the laws of the country concerned or political subdivisions thereof, or which the Government of the United States and the government of the country concerned have agreed shall not be applicable to expenditures in such country by or on behalf of the United States.

(2) The Contractor shall promptly notify the Contracting Officer of all matters pertaining to taxes or duties which reasonably may be expected to result in either an increase or a decrease in the contract price.

(3) Whenever an increase or decrease in the contract price may be required under this clause, the Contractor shall take action as directed by the Contracting Officer, and the contract price shall be equitably adjusted to cover the cost of such action, including any interest, penalty, and reasonable attorneys' fees.

§ 6-7.101-23 Liquidated damages.

The clause set forth in § 1-1.315-3 of this title shall be inserted under the conditions and in the manner prescribed in § 1-1.315 of this title. The clause shall be altered to refer to FS-565 rather than Standard Form 32.

§ 6-7.101-28 Termination for convenience of the Government.

The following clause shall be inserted in lieu of that referred to in § 1-7.101-28 of this title for all contracts for "commercial items" as defined in § 1-3.807–1 (b) (2) (B) of this title:

TERMINATION FOR CONVENIENCE OF THE
GOVERNMENT

The Government shall have the right to terminate this contract at any time by giving written notice to the Contractor not less than 10 days prior to the effective date of termination. Should this contract be terminated pursuant to this clause prior to the date it would otherwise expire, the following shall apply:

(a) The Government shall complete all payments which shall then be due;

(b) The Contractor shall deliver to the Government all work in process under this contract requested by the Government;

(c) The Government shall pay to the Contractor any sum which is determined by the Contracting Officer as equitable for any work in process, which sum shall include any costs incurred by the Contractor in terminating any subcontract.

(d) Should the Contractor be unwilling to accept the sum so determined by the Con

tracting Officer the matter shall be treated as a dispute concerning a question of fact within the meaning of the clause entitled "Disputes" in the General Provisions of this contract.

§ 6-7.150 Additional required clauses. § 6-7.150-1 Prohibition against items from certain areas.

PROHIBITION AGAINST ITEMS FROM CERTAIN AREAS

(a) No supplies, however, processed, which are or were located in or transported from or through China Mainland (including Singkiang, Manchuria, and Tibet), North Viet-Nam, North Korea, or Cuba may be used in the performance of this contract.

(b) The Contractor agrees to insert the provisions of this clause, including this paragraph (b) in all subcontracts hereunder. § 6-7.150-2 U.S. products and services (Balance of Payments Program).

The clause set forth in § 1-6.806-4 of this title shall be inserted unless the procurement qualifies as an exception as provided by § 1-6.805 of this title and § 6-6.805 of this chapter.

§ 6-7.151 Optional clauses.

The clauses set forth in this section may be used when applicable to specific procurements, and may be modified when required.

§ 6-7.151-1 Security requirements.

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(a) The Government may, by written notice to the Contractor, terminate the right of the Contractor, to proceed under this contract if it is found, after notice and hearing, by the Secretary or his duly authorized representative, that gratuities (in the form of entertainment, gifts, or otherwise) were offered or given by the Contractor, or any agent or representative of the Contractor, to any officer or employee of the Government with a view toward securing a contract or securing favorable treatment with respect to the awarding, amending, or the making of any determinations with respect to this contract.

(b) In the event that this contract is terminated as provided in paragraph (a) above, the Government shall have the same rights and remedies provided in the clause entitled "Default" in the General Provisions with respect to defaults of the Contractor, and any other rights and remedies provided by law or under this contract. § 6-7.151-5 Language version.

LANGUAGE VERSION

The English language version of this contract shall be the official version and binding on both parties.

§ 6-7.151-6 Authorization to perform. AUTHORIZATION TO PERFORM

The contractor warrants that he has been duly authorized to operate and do business in the country or countries in which this contract is to be performed; that he has obtained, at no cost to the U.S. Government, all necessary licenses and permits required in connection with the contract; and that he will fully comply with all laws, decrees, labor standards, and regulations of such country or countries during the performance of this contract.

§ 6-7.151-7 Seller's invoices.

The following clause is applicable only to negotiated contracts.

SELLER'S INVOICES

Invoices shall be prepared and submitted in quadruplicate unless otherwise specified. Invoices shall contain the following information: Contract and order number (if any), item numbers, description of supplies or services, sizes, quantities, unit prices, and extended totals. Bill of lading number and weight of shipment will be shown for shipments made on Government bills of lading.

§ 6-7.151-8 Discounts.

The following clause is applicable only to negotiated contracts.

DISCOUNTS

In connection with any discount provided for, time will be computed from date of delivery of the supplies to carrier when delivery and acceptance are at point of origin or from date of delivery at destination or port of embarkation when delivery and acceptance are at either of those points, or from date correct invoice or voucher is received in the office specified by the Government if the latter date is later than the date of delivery. Payment is deemed to be made, for the purpose of earning the discount, on the date of mailing of the Government check.

§ 6-7.151-9 Requirements clause.

The following clause is applicable only to requirements contracts prepared in accordance with § 1-3.409 (b) of this title.

REQUIREMENTS CLAUSE

(a) The Government agrees to purchase all of its requirements of (specific property or services) for use at (designated activities) during the period from

to

from the Contractor. The Government shall not, however, be obligated to make any purchases in excess of its actual requirements.

(b) The Contractor agrees to furnish up to (maximum delivery obligation) of (specific property or services) while this contract remains in effect. The Contractor shall not, however, be obligated to deliver in excess of (quantity) during any (time) period, nor less than (quantity) in any delivery.

(c) Subject to paragraph (b) above, and upon the placing of orders by the Government at least ---- days before the date of requested delivery, the Contractor agrees to make deliveries under this contract at any of the following designated point(s):

(d) The Government shall use a purchase order (Foreign Service Form 455) in making purchases against this contract.

§ 6-7.151-10 Indefinite quantity clause.

The following clause is applicable only to indefinite quantity contracts prepared in accordance with § 1-3.409 (c) of this title.

INDEFINITE QUANTITY CLAUSE

(a) The Contractor agrees to furnish up to (max. delivery obligation) of (specific property or services) during the period from

to

to

the Government. The Contractor shall not, however, be obligated to deliver in excess of (quantity) during any (time) period, nor less than (quantity) in any delivery.

(b) Subject to paragraph (a) above, and upon the placing of orders by the Govern

ment at least day(s) before the date of requested delivery, the Contractor agrees to make deliveries under this contract at any of the following designated points:

(c) The Government agrees to purchase a minimum of (minimum order obligation) of (specific property or services) while this contract is in effect.

(d) The Government shall use a purchase order (Foreign Service Form 455) in placing orders against this contract up to the Government's minimum purchase obligation, and in making purchases against this contract over the Government's minimum purchase obligation.

§ 6-7.151-11 Contracting officer's representative.

The following clause may be used in designating an authorized representative of the contracting officer (such a designee may not make any commitments or changes which will affect the price, quality, quantity or delivery terms):

REPRESENTATIVES OF THE CONTRACTING
OFFICER

The Contracting Officer reserves the right to designate representatives to act for him in furnishing technical guidance and advice or, generally supervise the work to be performed under this contract. Such designation will be in writing and will define the scope and limitations of authority. (Such a designee may not make any commitments or changes which will affect the price, quality, quantity, or delivery terms.) A copy of the designation shall be furnished to the Contractor.

§ 6-7.151-12 Labor,

equipment.

supplies and

LABOR, SUPPLIES AND EQUIPMENT

The Contractor shall furnish all labor, supplies, and equipment necessary for the performance of this contract. Necessary storage space for supplies and equipment will be furnished by the Government.

§ 6-7.151-13 Protection of Government buildings, equipment, and vegetation. PROTECTION OF GOVERNMENT BUILDINGS, EQUIPMENT, AND VEGETATION

The Contractor shall use reasonable care to avoid damaging existing buildings, equipment, and vegetation (such as trees, shrubs, and grass) on the Government installation. If the Contractor fails to do so and damages any such buildings, equipment, or vegetation, he shall replace or repair the damage at no expense to the Government as directed by the Contracting Officer. If he fails or refuses to make such repair or replacement, the Contractor shall be liable for the cost thereof which may be deducted from the contract price.

AVAILABILITY OF FUNDS

Funds are not presently available for performance under this contract beyond June 30, 19. The Government's obligation for performance of this contract beyond this date is contingent upon the availability of appropriated funds from which payment for the contract purposes can be made. No legal liability on the part of the Government for payment of any money for performance under this contract beyond June 30, 19--, shall arise unless and until funds are made available to the Contracting Officer for such performance and notice of such availability, to be confirmed in writing by the Contracting Officer, is given to the Contractor.

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(a) With respect to motor vehicles purchased by the Department of State or the U.S. Information Agency for use by such agencies in foreign countries, the Secretary of the Treasury has granted an exemption from the federal excise tax imposed by 26 U.S.C. 4061(a) provided such vehicles are exported from the United States by such Agencies within a period of 6 months from the date of delivery of such vehicles to the agencies, notwithstanding any use made by such agencies of the vehicles within the United States during the 6-month period. The contract for sale of such vehicles must include a statement to the effect that the sale of the vehicles is made for the exclusive use of the United States and qualifies for the exemption under order of the Secretary of the Treasury dated May 6, 1964 (29 F.R. 6254). The manufacturers must be furnished proof of export within 6 months after the sale.

(b) Taxable articles purchased for presentation abroad as gifts to foreign dignitaries and taxable articles purchased for presentation as gifts to foreign

dignitaries visiting in the United States but which are almost immediately taken out of the United States may be exempt from any retailers or manufacturers excise taxes in accordance with letter of October 18, 1963 from Chief, Excise Tax Branch, Internal Revenue Service on file in Supply and Transportation Services Division.

(c) With respect to purchases from vendors in the United States for export to a Foreign Service Post, the following statement will be included in purchase orders for items subject to excise taxes:

This is to certify that the item(s) covered by this purchase order is/are for export solely for the use of the American Foreign Service post shown above. It is, therefore, requested that the extra signed copy of the purchase order furnished herewith be accepted as evidence of intent to export. Final proof of exportation may be obtained from the U.S. Despatch Agent, handling the shipment; such proof to be accepted in lieu of payment of excise tax.

[31 F.R. 6624, May 4, 1966]

Subpart 6-11.3-State and Local
Taxes

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