ceive at least a royalty-free, nonexclusive, and irrevocable license with respect to such material first produced or composed under the contract. Except in those instances where it is desirable that copyrightable material produced under contract for the Government shall either be placed in the public domain or a copyright established in the name of the author and assigned to the Government, and except in connection with contracts for motion pictures or the production of motion pictures and affiliated activities (e.g., preparation of scripts, translations, adaptations, etc.), it shall be the policy to acquire only such license right in any copyrightable material leaving the contractor free to take out a copyright in his own name, if he so desires. In the event the contractor should incorporate copyrighted or copyrightable material already owned by the contractor or others, in the material furnished to the Government, the license should contain a provision whereby the Government is also granted a royalty-free license with respect to the material if the contractor may grant such a license without becomming liable to pay compensation because of the grant. The foregoing generally applies whether the material subject to copyright is the main item of a contract or is only incidental. Sec. Subpart 5A-10.3—Insurance-General 5A-10.301 General. 5A-10.350 Responsibility of contractor and indemnification agreement. AUTHORITY: Sec. 205(c), 63 Stat. 390; 40 U.S.C. 486(c). SOURCE: 39 FR 6609, Feb. 21, 1974, unless otherwise noted. Subpart 5A-10.1-Bonds 85A-10.103 Bid guarantees. Bid guarantees, other than bid bonds, shall be placed in the custody of a collection officer after the opening of bids. The contracting officer shall arrange for the return of guarantees, or their equivalent, to unsuccessful bidders as soon as the contract is awarded. The bid guarantee of the successful bidder shall be returned upon execution of any further documents required by the contract; e.g., performance bonds. [39 FR 34541, Sept. 26, 1974] Subpart 5A-10.2-Sureties on Bonds § 5A-10.202 Corporate sureties. The current edition of Treasury Department Circular 570 shall be prominently displayed in bid opening rooms, in GSA Business Service Centers, and in all places where bid forms and information are regularly available. Copies should be made available to officials having a need therefor. § 5A-10.204 Options in lieu of sureties. Security deposited in lieu of corporate of individual sureties on bonds shall be placed in the custody of a bonded collection officer immediately after receipt, except that United States bonds or notes received in the District of Columbia shall be deposited with the Treasurer of the United States as provided in § 1-10.204-1 of this title. The contracting officer shall arrange for the return of such security, or its equivalent, to the contractor when he has fulfilled all of the obligations secured by the bond in connection with which the security was deposited. § 5A-10.250 Determination of surety's acceptability. (a) Upon receipt of a required bond, the contracting officer shall determine whether the bond and the surety are acceptable (see § 1-10.103-4 of this title regarding failure to submit proper bid guarantee). If the acceptability of a bond involves a question as to its validity, the contracting officer shall refer the matter to appropriate legal counsel. For any question other than validity, the contracting officer shall refer the bond and such questions to the appropriate financial management office for necessary action. The office to which the bond is referred shall take such action as is necessary and promptly return the bond to the contracting officer with advice as to its acceptability. (b) When a contracting officer has verified the acceptability of the surety on a bond, he shall so certify by placing the words "Acceptability of Bond (a) The policy stated in § 1-10.301 is based on the theory that the quantity of the Government's transactions, together with the magnitude of its resources, makes it more advantageous to the Government to carry its own risks than to have them assumed by private insurers whose rates are based on recovery of possible losses, estimated operating expenses, and anticipated profit. Exceptions to this principle exist where Government property is not under the direct control and custody of the Government, or when other special circumstances are present as indicated in § 1-10.301. However, where a contractor is responsible for Government property, there is no objection to requiring or permitting the contractor to carry insurance against loss of, or damage to the property, provided the Government's interests in any payments under the policy are protected and the contractor does not pass on the cost of the insurance to the Government, except as provided in FPR 1-10.301; i.e., where it is required by law or where it is in the best interest of the Government, and the Government's interests in any payments under the policy are protected. The need for this coverage and the extent of protection required shall be based on the circumstances in each case. (b) Insurance requirements should be adequate, but at the same time just and reasonable. Generally, such requirements will be predicated on potential loss or damage and not necessarily on the value of the contract. When it is determined that insurance coverage should be required, the invitation and resultant contract shall contain a suitable provision requiring the contractor to carry insurance of a type, and in an amount necessary to provide adequate protection to the Government. Determination as to type of insurance, amount, and any related insurance requirements for inclusion in invitations and resultant contracts shall be made jointly by the contracting officer and the appropriate financial management office, after clearance with the appropriate legal counsel. All premiums or costs incident to compliance with an insurance requirement shall be paid by the contractor. (c) Insurance policies, or endorsements thereto, submitted by successful bidders shall be referred to the appropriate financial management office for examination, approval, and servicing. [39 FR 6609, Feb. 21, 1974, as amended at 39 FR 34541, Sept. 26, 1974] § 5A-10.350 Responsibility of contractor RESPONSIBILITY OF CONTRACTOR AND (a) The Contractor assumes full responsibility for any and all loss or damage to the rented motor vehicle and relieves the United States of America, any of its agencies, or any of its officers, employees, or rentees of all responsibility for any and all loss or damage to the Contractor's motor vehicle furnished under the terms of this contract. (b) The Contractor shall save, and keep harmless, and agrees to indemnify the United States of America, any of its agencies, or any of its officers, employees, or rentees furnished a motor vehicle by the Contractor from any or all liability and all cost for injury to or death of any person or persons and for loss or damage to any property arising directly or indirectly, or attributable in any way to a Government rentee's use or operation of a motor vehicle furnished under the terms of this contract; Provided, however, That the provisions of this subpar. (b) shall not apply to any liability directly attributable to the willful tortious act of any rentee. (c) The responsibility of the Contractor and the indemnification agreement as stated above shall be sole and controlling, notwithstanding any other agreements required by the Contractor to be signed by a Government rentee prior to obtaining a motor vehicle under the terms of this contract. (d) It is further understood and agreed that the minimum and mileage charges as specified in the schedule include all charges allowable under this contract, including any charge for full collision coverage on the Contractor's vehicle. (e) Notwithstanding the provisions of (a) through (d) above, the Government requires the Contractor to maintain automobile liability insurance coverage in amounts not less than: (1) $100,000 bodily injury, one person;. (2) $300,000 bodily in 'ury, more than one person; and (3) $25,000 property damage, per accident. (f) Failure on the part of the Contractor to maintain the insurance set forth in (e) above, shall constitute grounds for default within the meaning of Article 11(a)(ii) of the General Provisions. [43 FR 23576, May 31, 1978] PART 5A-11—FEDERAL, STATE, AND LOCAL TAXES Subpart 5A-11.2—Exemptions From Federal Excise Taxes Sec. 5A-11.270 Federal excise taxes. Subpart 5A-11.4-Contract Clauses 5A-11.401 Fixed-price type contracts. 5A-11.401-70 Federal, State, and local taxes-small purchases. 5A-11.401-71 Federal, State, and local taxes-Federal Supply Schedules. 5A-11.401-72 Federal excise taxes-D.C. Government. Subpart 5A-11.5-Tax Exemption Forms 5A-11.501-1 Certificate of export to a possession or to Puerto Rico. AUTHORITY: Sec. 205(c), 63 Stat. 390, 40 U.S.C. 486(c); and 41 CFR 5-1.101(c). SOURCE: 32 FR 9437, June 30, 1967, unless otherwise noted. Subpart 5A-11.2-Exemptions From Federal Excise Taxes § 5A-11.270 Federal excise taxes. (a) Federal excise taxes are not imposed on purchases by the Government (see §§ 1-11.201(b) and 111.202(b)) of supplies for export, or for shipment to a possession of the United States, including Puerto Rico, where: (1) The purchase is substantial; (2) Exportation or shipment to a possession is intended to follow not more than 6 months after the title to the supplies passes to the United States; and (3) The supplies are in fact exported or shipped to a possession in due course. (b) The term "substantial” in (a)(1) above, is defined as any transaction where the estimated Federal excise tax exceeds $200. (1) Definite quantity contracts for nonstock items. When the estimated Federal excise tax exceeds $200, the clause set forth in § 1-11.401-3(b) shall be included in the solicitation, appropriately amended, as prescribed in the referenced Federal Procurement Regulations section. (2) Requirements contracts. (i) When the requirements contract expressly sets forth the Federal excise taxes; e.g., in contracts for tires and tubes, the export delivery orders issued under these contracts shall exclude the excise tax and the following statement shall be clearly set forth on the order: FOR EXPORT OR SHIPMENT TO A POSSESSION. (ii) When the requirements contract does not expressly set forth the Federal excise tax, the delivery orders issued under these contracts may include the Federal excise taxes, except when it is known or estimated that the Federal excise tax will exceed $200. In the latter instance, the contracting officer or ordering office, as appropriate, shall determine the amount of the tax. The order shall exclude this tax, and be marked FOR EXPORT OR SHIPMENT TO A POSSESSION. (iii) In compliance with paragraph (a)(2) of this section, delivery orders for shipment to a geographical location within the United States for export or reshipment to a United States possession (including Puerto Rico) within 6 months from the date the title to supplies passes to the United States Government, shall be processed in the same manner as set forth in paragraph (b)(2)(i) or (ii) of this section. The requisitioning documents on which the procurement action is based, will bear an appropriate statement that the items are destined for export or shipment to a United States possession (including Puerto Rico) within 6 months from the date the title to the supplies to be ordered passes to the Government. (c) The above provisions do not apply to contracts made on behalf of the Agency for International Developmental (AID). GSA Form 1246, GSA Supplemental Provisions (AID Procurement), is a part of these contracts. (See § 5A-2.201-70(f)). [40 FR 22255, May 22, 1975] Subpart 5A-11.4—Contract Clauses § 5A-11.401 Fixed-price type contracts. § 5A-11.401-70 Federal, State, and local taxes-small purchases. The following clause shall be used in consummating small purchases negotiated pursuant to 41 U.S.C. 252(c)(3). FEDERAL, STATE, AND LOCAL TAXES The contract price includes all applicable Federal, State, and local taxes. No adjustment will be made to cover taxes which may subsequently be imposed on this transaction or changes in the rates of currently applicable taxes. However, the Government will, upon the request of the Contractor, furnish evidence appropriate to establish exemption from any tax from which the Government is exempt and which was not included in the contract price. [41 FR 27046, July 1, 1976] § 5A-11.401-71 Federal, State, and local taxes-Federal Supply Schedules. The following clause shall be included in all multiple award Federal Supply Schedule (including New Item Introductory Schedules) solicitations and resultant schedules: STATE AND LOCAL TAXES Notwithstanding the provisions of Clause 27 of GSA Form 1424, GSA Supplemental Provisions, the contract price excludes all State and local taxes levied on or measured by the contract or sales price of the services or completed supplies furnished under this contract. Taxes excluded from the contract price pursuant to the preceding sentence shall be separately stated on the Contractor's invoices and the Government agrees either to pay to the Contractor amounts covering such taxes or to provide evidence necessary to sustain an exemption therefrom. [42 FR 43839, Aug. 31, 1977] § 5A-11.401-72 Federal excise taxes-D.C. Government. The clause prescribed below shall be inserted in all formally advertised and negotiated contracts: FEDERAL EXCISE TAXES-D.C. GOVERNMENT The District of Columbia Government is exempt from and will not pay Federal excise taxes. Contractors will bill shipments to the District of Columbia at prices exclusive of such excise tax and show the amount of such tax on the invoice. The Internal Revenue Tax Exemption Certificate Number will be shown on all District of Columbia Government purchase orders. Subpart 5A-11.5-Tax Exemption Forms § 5A-11.501-1 Certificate of export to a possession or to Puerto Rico. Purchase orders for export or shipment to a possession or Puerto Rico are not subject to manufacturers excise taxes (see § 1-11.202) and, in certain cases, retailers excise taxes. (See § 1-11.201.) When requested by the contractor, proof of export or shipment to a possession or Puerto Rico shall be furnished in the form of a certificate similar to that in § 111.501-1. Certificates shall be signed by officials designated in the Delegations of Authority Manual, ADM P 5450.39A. [40 FR 22255, May 22, 1975] 5A-12.807-2 Informal hearings. 5A-12.807-3 Formal hearings. 5A-12.810 Affirmative action compliance programs. 5A-12.812 Rulings and interpretations. 5A-12.850 Validation of employment tests. 5A-12.850-1 General. 5A-12.850-2 Evidence of validity. 5A-12.850-4 Employment agencies and AUTHORITY: Sec. 205(c), 63 Stat. 390; 40 U.S.C. 486(c); 41 CFR 5-1.101(c). SOURCE: 39 FR 1029, Jan. 4, 1974, unless otherwise noted. Subpart 5A-12.6—Walsh-Healey Public Contracts Act § 5A-12.604 Responsibilities of contracting officers. (a) Notification to contractors. Contracting officers shall furnish contractors with copies of Department of Labor W H Publication 1313, Notice to Employees Working on Government Contracts (illustrated at § 5A-16.9541313) when awarding a contract subject to the Walsh-Healey Public Contracts Act. In addition, Form PC-16, Minimum Wage Determinations under the Walsh-Healey Public Contracts Act (copies available from Department of Labor) has been prepared by the Department of Labor to enable a contractor to ascertain the minimum |