CLAUSES FOR COST-TYPE SUPPLY CONTRACTS

labor-hour, or (ii) is fixed-price type and exceeds in dollar amount either $25,000 or five percent (5%) of the total estimated cost of this contract, or (iii) provides for the fabrication, purchase, rental, installation, or other acquisition of special test equipment having a value in excess of $1,000 or of any items of industrial facilities.

(b) In the case of a proposed subcontract which (i) is cost-reimbursement type, time and materials, or labor-hour, and would involve an estimated amount in excess of $10,000, including any fee, or (ii) is proposed to exceed $100,000, or (iii) is one of a number of subcontracts under this contract with a single subcontractor for the same or related supplies or services which, in the aggregate, are expected to exceed $100,000; the advance notification required by (a) above shall include:

(1) a description of the supplies or services to be called for by the subcontract;

(2) identification of the proposed subcontractor and an explanation of why and how the proposed subcontractor was selected, including the degree of competition obtained;

(3) the proposed subcontract price, together with the Contractor's cost or price analysis thereof;

(4) the subcontractor's current, complete, and accurate cost or pricing data and Certificate of Current Cost or Pricing Data, when such data and certificate are required, by other provisions of this contract, to be obtained from the subcontractor; and

(5) identification of the type of subcontract to be used.

(c) The Contractor shall obtain the written consent of the Contracting Officer prior to placing any subcontract for which advance notification is required under (a) above. The Contracting Officer may, in his discretion, ratify in writing any such subcontract; such action shall constitute the consent of the Contracting Officer as required by this paragraph (c).

(d) The Contractor agrees that no subcontract placed under this contract shall provide for payment on a cost-plus-a-percentage-of-cost basis.

(e) The Contracting Officer may, in his discretion, specifically approve in writing any of the provisions of a subcontract. However, such approval or the consent of the Contracting Officer obtained as required by this clause shall not be construed to constitute a determination of the allowability of any cost under this contract, unless such approval specifically provides that it constitutes a determination of the allowability of such cost.

(f) The Contractor shall give the Contracting Officer immediate notice in writing of any action or suit filed, and prompt notice of any claim made against the Contractor by any subcontractor or vendor which, in the opinion of the Contractor, may result in litigation, related in any way to this contract with respect to which the Contractor may be entitled to reimbursement from the Government.

(g) Notwithstanding (c) above, the Contractor may enter into subcontracts within (i) and (ii) of (a) above without the consent of the Contracting Officer if the Contracting Officer has approved in writing the Contractor's procurement system and the subcontract is within the scope of the approval.

(h) The Contractor shall (i) insert in each price redetermination or incentive price revision subcontract hereunder the substance of the "Limitation on Payments" paragraph set forth in the appropriate clause prescribed by paragraph 7.108 of the NASA Procurement Regulation, including subparagraph (4) thereof, modified to omit mention of the Government and reflect the position of the Contractor as purchaser and of the subcontractor as vendor, and to omit the portion of subparagraph (3) thereof relating to tax credits, and (ii) include in each cost-reimbursement type subcontract hereunder a requirement that each price redetermination and incentive price revision subcontract thereunder will contain the substance of the "Limitation on Payments" provision, including subparagraph (4) thereof, modified as outlined in (i) of this paragraph.

(i) To facilitate small business participation in subcontracting under this contract, the Contractor agrees to provide progress payments on the fixed-price subcontracts of those subcontractors which are small business concerns, in conformity with the standards for customary progress payments stated in paragraphs 503 and 514 of Appendix E of the NASA Procurement Regulation, as in effect on the date of this contract. The Contractor further agrees that the need for such progress payments will not be considered as a handicap or adverse factor in the award of subcontracts.

NASA PROCUREMENT REGULATION

7.203-8

CONTRACT CLAUSES

(b) In contracts of the types listed in 23.201-2(b), insert the following paragraph (g) in lieu of paragraph (g) of the clause set forth in (a) above:

(g) Notwithstanding (c) above, the Contractor may enter into subcontracts without the prior written consent of the Contracting Officer if the Contracting Officer has, in writing, approved the Contractor's procurement system and the subcontract is within the scope of such approval.(AUGUST 1969)

(c) In accordance with 12.804(c), insert the "Equal Opportunity Preaward Clearance of Subcontracts" clause set forth therein.

7.203-9 Utilization of Small Business Concerns. In accordance with the requirements set forth in 1.707-3(a), insert the clause contained therein. 7.203-10 Termination. Insert the clause set forth in 8.702. 7.203-11 Excusable Delays. Insert the clause set forth in 8.708. 7.203-12 Disputes. Insert the clause set forth in 7.103-12. 7.203-13 Renegotiation. Insert the clause set forth in 7.103-13.

7.203-14 Clean Air and Water. Insert the clause set forth in 1.2302-2. 7.203-15 Convict Labor. In accordance with Part 12, Subpart 2, insert the clause set forth in 7.104-17.

7.203-16 Contract Work Hours Standards Act-Overtime Compensation. Insert the clause set forth in 12.303-1. Note the introductory language required by 12.303-2 for use in contracts with a State or political subdivision thereof.

7.203-17 Walsh-Healey Public Contracts Act. Insert the clause set forth in 12.605.

7.203-18 Equal Opportunity. In accordance with the provisions of 12.804, insert the appropriate clause set forth therein.

7.203-19 Officials Not To Benefit. Insert the clause set forth in 7.103-19. 7.203-20 Covenant Against Contingent Fees. Insert the clause set forth in 1.503.

7.203-21 Government Property. In accordance with the requirements of 13.703 insert the clause set forth therein.

7.203-22 Insurance-Liability to Third Persons.

INSURANCE-LIABILITY TO THIRD PERSONS (SEPTEMBER 1962)

(a) The Contractor shall procure and thereafter maintain workmen's compensation employer's liability, comprehensive general liability (bodily injury) and comprehensive automobile liability (bodily injury and property damage) insurance, with respect to performance under this contract, and such other insurance as the Contracting Officer may from time to time require with respect to performance under this contract; provided, that the Contractor may with the approval of the Contracting Officer maintain a self-insurance program; and provided further that with respect to workmen's compensation the Contractor is qualified pursuant to statutory authority. All insurance required pursuant to the provisions of this paragraph shall be in such form, in such amounts, and for such periods of time as the Contracting Officer may from time to time require or approve, and with insurers approved by the Contracting Officer.

(b) The Contractor agrees, to the extent and in the manner required by the Contracting Officer, to submit for the approval of the Contracting Officer any other insurance maintained by the Contractor in connection with the performance of this contract and for which the Contractor seeks reimbursement hereunder.

(c) The Contractor shall be reimbursed: (i) for the portion allocable to this contract of the reasonable cost of insurance as required or approved pursuant to the provisions of this clause, and (ii) for liabilities to third persons for loss of or damage to property (other than

7.203-9

CFR TITLE 41 CHAPTER 18

CLAUSES FOR COST-TYPE SUPPLY CCNTRACTS

Froperty (A) owned, occupied, or used by the Contractor or rented to the Contractcr, or (B) in the care, custody, or control of the Contractor), or for death or bodily injury, not compensated by insurance or otherwise, arising out of the performance of this contract, whether or not caused by the negligence of the Contractor, his agents, servants, or employees; provided, such liabilities are represented by final judgments or by settlements approved in writing by the Government, and expenses incidental to such liabilities, except liabilities (I) for which the Contractor is otherwise responsible under the express terms cf the clause or clauses, if any, specified in the Schedule, or (II) with respect to which the Contractor has failed to insure as required or maintain insurance as approved by the Contracting Officer, cr (III) which results from willful nisconduct or lack of good faith on the part of any of the Contractor's directors or officers, cr on the part of any of his managers, superintendents, or other equivalent representatives, who has supervision or direction of (1) all cr substantially all of the Contractor's business, ΟΙ (2) all or substantially all of the Contractor's operations at any one plant or separate location in which this contract is teing performed, or (3) a separate and complete major industrial operation in connection with the performance of this contract. The foregoing shall not restrict the right of the Contractor to be reimbursed for the cost of insurance maintained by the Contractor in connection with the performance of this contract, other than insurance required to be submitted for approval or required to be procured and maintained Fursuant to the provisions of this clause; [rovided, such cost would constitute allowable ccst under the clause of this contract entitled "Allowable Cost, FixedFee, and Payment."

(d) The Contractor shall give the Government or its representatives immediate notice of any suit or action filed, ΟΙ prompt notice of any clain made, against the Contractor arising out of the performance of this contract, the cost and expense of which may be reimbursable to the Contractor under the provisions of this contract, and the risk of which is then uninsured or in which the amount claimed exceeds the amount of coverage. The Contractor shall furnish immediately to the Government copies of all Fertinent papers received by the Contractor. If the amount cf the liability claimed exceeds the amount of coverage, the Contractor shall authorize representatives of the Government

NASA PROCUREMENT REGULATION

CONTRACT CLAUSES

tc

any

collaborate with ccunsel for the insurance carrier, if any, in settling or defending such claim. If the liability is not insured or covered by bcnd, the Contractor shall, if required by the Government, authorize representatives of the Government to settle or defend such claim and to represent the Contractor in or take charge of any litigation in connection therewith; provided, however, that the Contractor may, at his cwn expense, be associated with the representatives of the Government in the settlement or defense of any such claim or litigation.

7.203-23 Authorization and Consent. forth in 9.102 (a).

Insert the clause set

Regarding Patent and

Insert the clause set forth in

7.203-24 Notice and Assistance

Copyright Infrigement. 9.104.

7.203-25 (Reserved)

7.203-26 Utilization cf Labor Surplus Area Concerns. In accordance with the requirements of 1.805-3 (a), insert the clause set forth therein.

7.203-27 Payment for Overtime Premiums. In accordance with the requirements of 12.102, insert the clause set forth in 12.102-6.

7.203-28

Competition in Subcontracting. Insert the clause set forth in 7.104-40.

7.203-29 Audit By National Aeronautics and Space Administration. In accordance with 7.104-42 (a), clause set forth therein.

insert the

7.203-50 Payment of Royalties. Insert the clause set forth in 9.110.

7.203-51 Estimated Cost and Fixed Fee. Normally, the clause set forth below will be used as the Schedule Frovision covering the estimated ccst and fixed fee. However, the clause may be modified at the discretion of the contracting officer.

ESTIMATED COST AND FIXED FEE (SEPTEMBER 1962) The estimated cost of this contract is ..... exclusive of the fixed fee of . The total of estimated cost and fixed fee is ....

7.203-52 Payment of Fixed Fee. Normally, the clause set forth below will be used as the Schedule provision covering the payment of fixed fees. However, at the discretion of the contracting officer, the clause may be modified.

CFR TITLE 41 CHAPTER 18

CLAUSES FOR COST-TYPE SUPPLY CONTRACTS

PAYMENT OF FIXED FEE (SEPTEMBER 1962)

The fixed fee shall be paid in monthly installments based upon the percentage of completion of work as determined by the Contracting Officer.

$3.

7.203-53

Interest. Insert the clause set forth in 7.103

7.204 Clauses Required To Be Used When Applicable.

7.204-1 Clauses for Contracts Involving Construction Work. (a) In accordance with the requirements of Part 12, Subpart insert in cost-reimbursement type supply contracts which involve construction work the clauses listed below which are set forth in 12.403-1:

ས.

Davis-Bacon Act

Contract work Hours and Safety Standards Act-Overtime Compensation

Apprentices

Payrolls and Payroll Records

Compliance With Copeland Regulations

withholding of Funds

Subcontracts

Contract Termination-Debarment

In accordance with the

(b) In accordance with the requirements of 6.207, insert in all contracts for construction, except those executed on Standard Form 19 and NASA Form 1379, the clause entitled "Buy American" set forth in 6.207 (c). 7.204-2 Communist Areas. requirements of 6.403, insert the clause set forth therein. 7.204-3 Buy American Act. In accordance with the requirements of Part 6, Subpart 1, insert the clause set forth in 6.104-5.

7.204-4 Notice to the Government of Labor Disputes. In accordance with the requirements of 7.104-4, insert the clause set forth therein.

7.204-5 (Reserved)

7.204-6 Filing of Patent Applications. In accordance with the requirements of 9.106, insert the clause set forth therein. In accordance with the forth in

7.204-7 New Technology.

requirements of 9.107-4, insert the clause set

9.107-5 or 9.107-6.

7.204-8 (Reserved)

NASA PROCUREMENT REGULATION