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ment. The sales proceeds will accrue to the credit of the Government and will be applied initially to the Government's obligation for cost reimbursement to the contractors. To provide incentive to the contractors a formula will be developed whereby the contractor will be permitted to participate in the excess of sales proceeds over allowable costs. The contractor cost reimbursement will be made annually on the basis of cost audit determinations of the Government.

The time allowed for processing the sealskins and the development of improvement thereof is anticipated to be 1 year from the date of award of a contract. Periodic progress reports will be required from contracts awarded and as a result of this proposal.

The Government currently has available 13,000 raw sealskins for the purposes of this invitation, and will have approximately one-eighth or about 5,000 of each annual harvest for the next several years.

The Government reserves the right, as the interest of the Government may require, to reject any or all proposals and to negotiate further with any qualified proposer. Only those proposals which provide services for the full program described herein will be considered as responsive.

Each proposal submitted pursuant to this invitation shall include cost estimates with supporting data itemized so as to reflect categories of cost. Sufficient detail as to all costs shall be presented so as to enable accurate evaluation of the proposal. Such submission shall be certified by use of a "certificate of current cost data." The form of such certificate shall be as follows:

CERTIFICATE OF CURRENT COST DATA

This is to certify that, to the best of my knowledge and belief:

(i) complete cost data current as of

(Date)

has been considered in preparing this proposal and submitted to the contracting officer or his representative;

(ii) all of the data submitted are accurate.

(Date of execution)

Name_
Title
Firm.

Note that 18 U.S.C. 1001 prescribes criminal penalties for making false representations to the Government.

The proposer is further required to obtain and submit cost data certified by subcontractors if any of the work to be performed is to be subcontracted.

In addition to the supporting cost data required above, the proposer is encouraged to propose any incentive factors which might be considered to make the proposals more attractive to the Government and the proposer. For illustration only, such an incentive offer might consist of a percentage share of those proceeds frm sales of the finished skins in excess of the costs.

Separate price proposals should be submitted for the experimental processing of the following quantities of sealskins: 1,000, 2,000, 3,000, 4,000, and 5,000. The actual number of skins to be delivered to the proposer will be dependent upon the number of proposals received, the price proposals, the demonstrated potential of the proposer, and such other factors as determined to be in the interest of the Government. This will be subject to further negotiation with the firms selected for award of contracts.

In evaluating proposals, the Government will consider the individual cost quotations together with the benefits accruing under the incentive proposal. More detailed information on this evaluation program will be provided in negotiations.

Proposals submitted hereunder will be evaluated to determine whether the proposers qualify as responsible prospective contractors. In order to qualify as responsible, a proposer must, in the opinion of the contracting officer, meet the following standards of the Federal Procurement Regulations as they relate to this particular procurement:

(1) The proposer must be a business entity who can demonstrate technical and business experience by the proposer or by key personnel in the processing of luxury furs and must, additionally, (a) own, operate, or maintain a place of business, regularly engaged in whole or in part in the processing of luxury

furs, or (b) if a new business entity, must present acceptable evidence of firm business associations and arrangements whereby personnel of requisite skill in processing luxury furs, essential equipment, and license, if needed, are available. (2) He must demonstrate adequate financial resources for performance and adequate credit resources to insure financial stability in an undertaking of the magnitude contemplated by the contract. To demonstrate financial capability the proposer must furnish an up-to-date statement of financial condition, identified sources of capital borrowing, and credit.

(3) He must, in support of his claims of necessary experience, organization, technical qualifications and skills, plant facilities and equipment, provide schedules of (a) key personnel with details of training and experience, and (b) plant facilities and equipment inventories; provided, however, that as to new business entities otherwise qualified by available organization and technically qualified staff, evidence of availability of plant facilities and equipment may be presented in form susceptible to verification. As a minimum in this regard, the proposer must submit confirmed data, by correspondence or otherwise, identifying by location and name the sources relied upon.

(4) He must be able to comply with the proposed or required time of delivery or performance schedule.

(5) He must have a satisfactory record of integrity and judgment.

(6) He must not have indicated an unwillingness or inability to conform to the requirements of the standard nondiscrimination clauses as prescribed in Executive Order 10925 of March 6, 1961, as amended.

(7) The proposer will be required to perform not less than 30 percent of the work with his own facilities and personnel. If the proposer must rely for performance upon subcontracting arrangements, he must provide, in addition to evidence of subcontractor commitments, a demonstration of the subcontractors' capacities in the manner and to the extent provided in the foregoing paragraphs.

(8) Each proposer will be required to submit at the time of negotiation, an affidavit containing the following information :

(a) Whether the proposer has any affiliates;

(b) The names and addresses of all affiliates of the proposer, and

(c) The names and addresses of all persons and concerns exercising control or ownership of the proposer and any or all of his affiliates, and whether as common officers, directors, stockholders holding controlling interest, or otherwise.

(9) He must be otherwise qualified and eligible to receive an award under applicable laws and regulations.

At the discretion of the contracting officer, a preaward inspection of the proposer's facilities and equipment or firm sources thereof and interviews with proposer's personnel and business references may be performed.

OTHER CONSIDERATIONS

The Government will deliver the brine-cured sealskins, in barrels, to the contractor. The skins must be stored in cold fireproof warehouses designated by the contractor and approved by the Government, the costs of which will be paid by the contractor.

Notice is given of the issuance of U.S. Patent No. 3,001,391 for a method of treating a fur seal pelt, involving the shearing of the fur and the fur product produced thereby. In addition, the following patents relating to fur sealskins are noted: 2,574,452 and 2,937,068. No representation is made that these are the only patents relating to fur sealskins currently in effect. (Note the authorization and consent and the patent indemnity clauses in the attached standard provisions-subparagraphs (b) and (c) in the patent article.)

INSURANCE

Insurance coverage of the sealskins in amounts determined to be satisfactory to the Government must be provided for by the contractor (s) during the period of his possession.

BOND

The successful proposer (s) will be required to furnish a performance bond (s) with such surety or sureties as shall be satisfactory to the Government conditioned upon the faithful performance of the obligations under the contract.

56-124-66-9

Proposals may be submitted until May 1, 1965, to the U.S. Department of the Interior, Bureau of Commercial Fisheries, Division of Resource Development, room 3348, Interior Building, Washington, D.C., 20240. Envelopes containing proposals should be marked "Proposal-Invitation CF-8-35, Fur Sealskin Processing." All proposals will be treated as tentative and confidential and may be withdrawn at any time prior to contract execution.

The contract to be negotiated will contain the provisions attached as schedule A.

Bond requirement

SCHEDULE A

The contractor shall furnish a bond with such surety or sureties as shall be satisfactory to the director in the sum of (sum to be negotiated), conditioned upon the faithful performance of each and every covenant and agreement to be performed by the contractor under the provisions of this agreement. If any surety upon any bond furnished in connection with this agreement becomes unacceptable to the Government, or if any such surety fails to furnish reports as to his financial condition from time to time as requested by the Government, the contractor shall promptly furnish such additional security as may be required from time to time to protect the interests of the Government and of persons supplying labor or materials in the prosecution of the work contemplated by this agreement. Failure to furnish such additional security shall be deemed a default.

Patents

(a) As used in this patent section, the following terms have the definitions given herein.

(1) The terms "subcontract" and "subcontractor" mean any subcontract or subcontractor of the contractor, and any lower tier subcontract or subcontractor under this agreement. Except as otherwise provided in this agreement, the term "subcontracts" includes purchase orders under this agreement.

(2) The term "subject invention" means any invention, discovery, improvement, or development (whether or not patentable) conceived or first actually reduced to practice, in the performance of the work called for or required under this agreement.

(3) The term "scientific and technical personnel" means any personnel employed by or working under contract with the contractor (other than a subcontractor whose responsibilities with respect to rights occurring to the Government in inventions arising under subcontracts are set forth in subparagraph (b) of this section) who by reason of the nature of his duties in connection with the performance of his contract might reasonably make inventions.

(b) The contractor agrees that it will promptly disclose to the Government all subject inventions relating to the processing of sealskins and that it will assign and transfer to the Government, as represented for this purpose by the Secretary of the Interior, full and entire right, title, and interest in and to such subject inventions. The contractor warrants that it has or will have full authority to make such assignments by reason of agreements with all of its scientific and technical personnel who will be engaged in work under this contract to assign to the contractor all discoveries and inventions made within the scope of their employment. The contractor shall require the inclusion of a patent rights section containing paragraphs (a), (b), and (f) of this patent rights section in the employment agreement and in any other subcontract hereunder, except subcontracts for the purchase of supplies.

(c) The Government hereby gives its authorization and consent (without prejudice to its rights of indemnification) for all use and manufacture, in the performance of this agreement or any part thereof or any amendment hereto or any subcontract hereunder (including any lower tier subcontract), of any invention described in and covered by a patent of the United States (i) embodied in the structure or composition of any article the delivery of which is accepted by the Government under this agreement, or (ii) utilized in the machinery, tools, or methods the use of which necessarily results from compliance by the contractor or the using subcontractor with (a) specifications or written provisions now or hereafter forming a part of this agreement, or (b) specific written instructions given by the director directing the manner or performance. The contractor's entire liability to the Government for infringement of a patent

of the United States shall be determined solely by the provisions of the indemnity clause included in this agreement and the Government assumes liability for all other infringement to the extent of the authorization and consent hereinabove granted.

(d) The contractor shall indemnify the Government and its officers, agents, and employees against liability, including costs, for infringement of any U.S. letters patent (except letters patent issued upon an application which is now or may hereafter be kept secret or otherwise withheld from issue by order of the Government) arising out of or in the course of the performance of this agreement. The foregoing indemnity shall not apply unless the contractor shall have been informed as soon as practicably by the Government of the suit or action alleging such infringement, and shall have been given such opportunity as is afforded by applicable laws, rules, or regulations to participate in the defense thereof; and further, such indemnity shall not apply if: (i) The infringement results from compliance with specific written instructions of the director directing a specific change in the supplies to be delivered or in the materials or equipment to be used, or directing a specific manner of performance of this agremeent not normally used by the contractor; or (ii) the infringement results from addition to, or change in, such supplies or components furnished or construction work performed which addition or change was made subsequent to delivery of performance by the contractor; or (iii) the claimed infringement is settled without the consent of the contractor, unless required by final decree of a court of competent jurisdiction.

(e) The contractor shall report to the director, promptly and in reasonable written detail, each notice or claim of patent infringement based on the performance of this agreement of which the contractor has knowledge. In the event of litigation against the Government on account of any claim of patent infringement arising out of the performance of this agreement or out of the use of any supplies furnished or work or service performed hereunder, the contractor shall furnish to the Government, upon request, all evidence and information in possession of the contractor pertaining to such litigation. Such evidence and information shall be furnished at the expense of the Government except in those cases in which the contractor has agreed to indemnify the Government against the claim being asserted.

(f) The contractor shall annually submit to the Government a report listing all subject inventions. If to the best of the contractor's knowledge and belief no subject inventions have resulted from work performed during the reporting period, the contractor shall so certify.

Disputes

(a) Except as otherwise provided in this agreement, any dispute concerning a question of fact arising under this agreement which is not disposed of by agreement shall be decided by the director, who shall reduce his decision to writing and mail or otherwise furnish a copy thereof to the contractor. The decision of the director 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 director 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 unless determined by a court of competent jurisdiction to have been fraudulent, or capricious, or arbitrary, or so grossly erroneous as necessarily to imply bad faith, or not supported by substantial evidence. 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 its appeal. Pending final decision of a dispute hereunder, the contractor shall proceed diligently with the performance of the agreement and in accordance with the director's decision.

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

(a) The contractor agrees to maintain books and records in such detail as will properly reflect all items of costs and will retain directly pertinent books, documents, papers, and records in support thereof and otherwise related to this contract and subcontracts hereunder, and further agrees to preserve such books, records, and documents during the life of this contract and until 3 years after final

payment, and to permit the contracting officer and the Comptroller General of the United States, or any of their authorized representatives, to examine and audit the same at all reasonable times during the said period. In addition, the contractor shall permit the contracting officer, or any of his authorized representatives, at all reasonable times to inspect the facilities, activities, and work pertinent to the contract, and to interview personnel of the contractor engaged in performance of the contract to the extent the contracting officer may deem

necessary.

(b) (1) The provisions of paragraph (a) above shall be applicable to and included by the contractor, and by subcontractors of whatever tier, in each subcontract hereunder that is not on a firm fixed-price basis.

(2) The contractor shall include in each of his subcontracts, placed on a firm fixed-price basis, a provision to the effect that the subcontractor agrees that the Comptroller General of the United States or any of his duly authorized representatives shall, until the expiration of 3 years after final payment under the subcontract, have access to and the right to examine any directly pertinent books, documents, papers, and records of such subcontractor involving transactions related to the subcontract. The term "subcontract" as used in this subparagraph (2) excludes (i) purchase orders not exceeding $2,500, and (ii) subcontracts or purchase orders for public utility services at rates established for uniform applicability to the general public.

Excusable delays

In respect to those obligations of the contractor which are to be performed within a stipulated period of time, the contractor shall not be charged with noncompliance with any of such provisions due to unforeseeable causes beyond the control and without the fault or negligence of the contractor including, but not restricted to, act of God or of the public enemy, acts of the Government, fires, flood, epidemics, quarantine restrictions, strikes, freight embargoes, and unusually severe weather, and delays of another contractor due to such causes, if the contractor shall, within 10 days from the beginning of any such delay. notify the director in writing of the causes of delay, who shall ascertain the facts of the extent of the delay and extend the time for compliance, with the particular obligation affected by such cause of delay.

Work Hours Act of 1962-Overtime compensation

This agreement, to the extent that it is of a character specified in the Work Hours Act of 1962 (Public Law 87-581, 76 Stat. 357-360) and is not covered by the Walsh-Healey Public Contracts Act (41 U.S.C. 35-45), is subject to the following provisions and to all other provisions and exceptions of said Work Hours Act of 1962.

(a) No contractor or subcontractor contracting for any part of the contract work shall require or permit any laborer or mechanic to be employed on such work in excess of 8 hours in any calendar day or in excess of 40 hours in any workweek unless such laborer or mechanic receives compensation at a rate not less than 11⁄2 times his basic rate of pay for all hours worked in excess of 8 hours in any calendar day or in excess of 40 hours in such workweek, whichever is the greater number of overtime hours.

(b) In the event of any violation of the provisions of subparagraph (a), the contractor and any subcontractor responsible for such violation shall be liable to any affected employee for his unpaid wages. In addition, such contractor or subcontractor shall be liable to the United States for liquidated damages. Such liquidated damages shall be computed, with respect to each individual laborer or mechanic employed in violation of the provisions of subparagraph (a), in the sum of $10 for each calendar day on which such employee was required or permitted to work in excess of 8 hours or in excess of 40 hours in a workweek without payment of the required overtime wages.

(c) The Director may withhold, or cause to be withheld, from any moneys payable on account of work performed by the contractor or subcontractor, the full amount of wages required by this agreement and such sums as may administratively be determined to be necessary to satisfy any liabilities of such con tractor or subcontractor for liquidated damages as provided in subparagraph (b).

Convict labor

In connection with the performance of work under this agreement, the contractor agrees not to employ any person undergoing sentence of imprisonment at hard labor.

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