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81-8.804–2 Format 804–2. Application for Partial Payment.

(a) Page 1 of Format 804-2.

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(b) Page 2 of Format 804–2.



(1) RIPATMENT OF Excess. If any partial payment inack to the contractor is in excess of the amount finally determined to be Jue on his termination claim, the excess shall be repaid to the Government upon demand, with interest at the rate established by the Sec retary of the Treasury pursuant to Public Law 92-41 (50 U.S.C. App. 1213(b)(2)) for the Renegotiation Bourd. Interest shall be computed for the period from the date the excess payment was received by the con. tractor to the date of repayment, except that (i) no in. terest shall be charged for any such excess payment attributable to a relation in the contract termination claim hy reason of retention or other disposition of termination inventory, until 10 days after the date of such retention or disposition, or such later date as determined by the contracting officer hy reason of the cir. cumstances, and (ii) no interest shall be charged for

overpayment under cost-reimbursement type research and development cuntracts (wirbom prope or fee to the rowerucior) if the overpayments are repaid to the Gov. emment within 30 days after demand. (2) PRONT SETTLEMENT OF CLAIM.—The applicant will make every reasonable effort to expedite hnal set. cement of the termination claim and the claims of his sukontras turs, if any. (3) DISPOSAL AND RETENTION OF INVENTORY.Whenever the amount of any proceeds hereafter received by the applicant in the disposal of termination inventory, plus the cost or agreed value, as the case may he, of any termination inventory which the applicant hereafter elects to retain, exceeds the amount stated by the applicant in this application as the amount of his charges (Section II, Line 9) and the amount of such credits has not been included on Section II, Line b (Disposal and Oiber Credits), the applicant within 10 days will notify the contracting agency of the amount of credits on account of such inventory disposal or retenti



The undersigned certifies that the amount of his own charges (exclusive of subcontractors' charges) due as of the date of this application and alloxable co the terminarcu porcion of its cuntrace Number -- Jarod - -, with

, is nuxe less than Sitire so. ll. com vi that, to the best of applicant's knowledge, the amounts received are as set forth above; and that the applicant has nur assigned any moneys payable under this contract, excepe as set forth above.

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13-131 0–83-40

(c) Page 3 of Format 804–2.


The undersigned states that he has examined this application and has considered the applicant's gencral reputation. He has no reason to doubt the accuracy of the information concained in this application or that the amount certified by the applicant as due will constitute a proper charge to be inciuced in the undersigned's termination claim against recommends that the requesid parcial payment be made.


The undersigned agrees that he will promptly pay over to the applicant or credit against amounts owing from the applicant any amount received for the benefit of the applicant under this application, and that he'wi!l repay to the Government on demand any amount not so paid or credited.

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SECTION VI. — RECOMMENDATIONS OF OTHER REVIETUIG VORTRACTORS Each of the undersigned states that he has no reason to do that the amount of the partial payment requested, and recommended above jodete the toplanand will constitute a proper charge in the termination claim of the undersignia DA

Each of the undersigned agroalimbe pani yoddyptly pay over to his immediate subcontractor or credit against amounts owing Suat ske beantractor any amount received for the benefit of the applicant under this application, and that he will repay to the Government on demand any amount not so paid or credited.

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81-8.805 Scrap warranty.

A warranty in the general format set forth below shall be executed by a purchaser of material as scrap (on direct purchase from the Government or on subsequent resale) in accordance with the requirements of $ 1-8.504.

SCRAP WARRANTY In consideration of the transfer to the undersigned of the property covered by this Agreement at a value based upon its being used as scrap, the undersigned represents and warrants to the United States of America as follows:

(a) The property covered by this Agreement will be used only as scrap, either in its existing condition or after further preparation, unless and until the undersigned is released from this warranty

(b) In the event the undersigned is released from this warranty, or any payment agreed on as consideration for such release shall be made to the United States, regard. less of whether this warranty shall have been executed at the request of the United States.

(c) In the event the undersigned sells the property covered by this Agreement prior to release of this warranty, the undersigned will obtain from the purchaser and tender to the United States a warranty identical to this executed by the purchaser, and upon receipt of such other warranty, this warranty will be released by the United States.

tract provides that the performance of work under the contract may at the convenience of the Government be terminated by the Government in whole, or from time to time in part, whenever the Contracting Officer shall determine that such termination is in the best interest of the Government, and that the Contractor and the Contracting Officer may agree upon the whole or any part of the amount to be paid to the Contractor by reason of such termination; and

WHEREAS, by notice of termination dated ----, the Government advised the Contractor of the complete termination of the contract for the convenience of the Government; and

WHEREAS, as used herein, the following terms shall have the meanings hereinafter set forth:

(a) The term "termination inventory" means any items of physical property purchased, supplied, manufactured, furnished, or otherwise acquired for performance of the contract and properly allocable to the terminated portion of the contract. The term does not include any facilities, materi. al, production or other equipment, or special tooling, which are subject to a separate contract or a special contract provision governing the use or disposition thereof. Termi. nation inventory may include contractor-acquired property and Government-furnished property as defined below.

(1) “Contractor-acquired property" means property procured or otherwise provided by the Contractor for the performance of a contract, whether or not the Government has title by the terms of the contract or exercises its contractual right to take title.

(2) "Government-furnished property" means property in the possession of or acquired directly by the Government, and subsequently delivered or otherwise made available to the Contractor.

(b) The term "subcontract" means any contract, as defined in § 1-1.208 of the Federal Procurement Regulations (41 CFR 11.208), other than a prime contract, entered into by a prime contractor or a subcontractor, calling for supplies or services required for the performance of any one or more prime contracts.

(c) The term "scrap" means property which has no reasonable prospect of being sold except for the recovery value of its basic material content.

Now, THEREFORE, the parties hereto do mutually agree as follows:

ARTICLE 1. The Contractor certifies that all contract termination inventory (including scrap) has been retained or otherwise acquired by him, sold to third parties, returned to suppliers, stored for the Govern. ment, delivered to the Government, or otherwise properly accounted for, and all proceeds or retention prices thereof, if any,

81-8.806 Formats of settlement agree


81-8.806-1 Settlement agreement for use

in settling fixed-price prime contracts

after complete termination. THIS SUPPLEMENTAL AGREEMENT OF SETTLEMENT, entered into this --- day of ----, 19—, between the UNITED STATES OF AMERICA (hereinafter called “The Government") represented by the Contracting Officer executing this contract, and ---

(a) A corporation organized and existing under the laws of the State of ---;

(b) A partnership consisting of ---; (c) An individual doing business as (hereinafter called “the Contractor"). WITNESSETH THAT:

WHEREAS, the Contractor and the Govern ment have entered into Contract No. under date of ----, 19— which, together with any and all amendments, changes, modifications, and supplements thereto, is hereinafter referred to as “the contract"; and

WHEREAS, the Termination for Convenience of the Government clause of the con

have been taken into account in arriving at "ject to the provisions of Article 6 hereof, to this agreement.

retain such sum heretofore paid and agrees ARTICLE 2. (a) The Contractor certifies that such sum constitutes a portion of the that, prior to the execution of this agree. total amount to which the Contractor is enment, each of the Contractor's immediate titled in settlement of the Contract. subcontractors whose claim is included in (b) In addition, upon execution of this the claim settled by this agreement has fur

agreement the Government agrees to pay to nished to the Contractor a certificate stat.

the Contractor or his assignee, upon presening (1) that all of his subcontract termina

tation of proper invoices or vouchers, the tion inventory (including scrap) has been re

sum of $--- [insert net amount of settletained or otherwise acquired by him, sold to

ment], arrived at by deducting from the third parties, returned to suppliers, stored

sum of $-- (for claim submitted on infor the Government, delivered to the Gov

ventory basis, insert gross amount of settleernment, or otherwise properly accounted

ment; for claim submitted on total cost for, and all proceeds or retention prices

basis, insert gross amount of settlement less thereof, if any, were taken into account in arriving at the settlement of the subcon

amount set forth in 5a above), (1) the

amount of $--- representing all unliquitract or subcontracts, and (2) that the sub

dated partial or progress payments previcontractor has received from each of the immediate subcontractors whose claim was in

ously made on account to the Contractor or cluded in his claim a substantially similar

his assignee and all unliquidated advance certificate.

payments (with interest, if any, thereon), (b) The Contractor hereby transfers and

and (2) the amount of $--- representing conveys to the Government all the right,

all applicable property disposal credits (and title, and interest, if any, which the Con

(3) the amount of $--- representing all tractor has received, or is entitled to receive,

other amounts due the Government under in and to subcontract termination inven

this contract except as hereinafter provided tory, if any, not otherwise properly account

in Article 6'). Said sum of $--- [insert net ed for, and hereby assigns to the Govern

amount of settlement), together with all ment any and all of his rights relating other sums heretofore paid, constitutes pay. thereto.

ment in full and complete settlement of the ARTICLE 3. The Contractor certifies that, amount due the Contractor by reason of the with respect to all items of termination in complete termination of work under the ventory the costs of which were taken into contract and of all other claims and liabil. account in arriving at the amount of this ities of the Contractor and the Government settlement, or in the settlement of any sub- under the contract, except as hereinafter contract claim included in this settlement: provided in Article 6. (a) all such items are properly allocable to ARTICLE 6. Notwithstanding any other prothe terminated portion of the contract; (b) vision of this agreement, the following such items are not in excess of the reason. rights and liabilities of the parties under able quantitative requirements of the termi- the contract are hereby reserved: nated portion of the contract; (c) such items [The following list of reserved or excepted do not include any items reasonably usable

rights and liabilities is intended to cover without loss to the Contractor, on his other

those which should most frequently be rework; and (d) the Contractor has informed

served, and which should in any event be the Contracting Officer of any substantial

scrutinized at the time å settlement is change in the status of such items between

signed (see § 1-8.209-2). The suggested lan. the dates of his termination inventory

guage of the enumerated excepted items on schedules and the date of this agreement. ARTICLE 4. In all cases where the Contrac

the list may be varied in the discretion of

the Contracting Officer to cover more accu. tor has not previously made such payments,

rately the exceptions needed in a particular the Contractor shall, within ten (10) days

case. Where greater accuracy or completeafter receipt of the payment provided for

ness may be achieved by a reference to the hereunder, pay to each of his immediate subcontractors (or to their respective assign

number of the contract clause or provision

covering the matter in question, this ees) the respective amounts to which they are entitled, after deducting, if the Contrac

method of enumerating reserved rights and

liabilities may be followed. Omit any of the tor so elects, any amounts then due and

following which are not applicable and add payable to the Contractor by such subcon

any additional exceptions or reservations retractors. ARTICLE 5. (a) The Contractor has received

quired.) the sum of $--- on account of work and

(a) All rights and liabilities, if any, of the services performed, or articles delivered,

parties under the Renegotiation Act of 19– under the completed portion of the con

(insert reference to applicable Renegoti. tract. The Government as part of this nego

ation Act). tiated settlement hereby confirms and acknowledges the right of the Contractor, sub To be inserted where appropriate.

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