Subpart 3-Clauses for Fixed-Price R&D Contracts

7.300 Scope of Subpart. This Subpart sets forth uniform clauses for use in fixed-price research and development contracts as defined in 7.301. 7.301 Applicability. As used throughout this Subpart, the term "fixedprice research and development contract" means any contract, including letter contracts (except notices of award, contracts placed under Small Purchases Procedures, and amendments or supplemental agreements which do not effect new procurement) which (i) is entered into on a fixedprice basis, (ii) is in an amount exceeding $2,500, and (iii) is for experimental, developmental, or research work.

7.302 Required Clauses. The following clauses shall be inserted, as required, in all fixed-price research and development contracts except as otherwise indicated in this Subpart. See 7.350 for short form clauses.

7.302-1 Definitions. Insert the clause set forth in 7.103-1. Additional definitions may be included, provided they are not inconsistent with such clause or the provisions of this Regulation.

7.302-2 Payments. Insert the following clause except that in letter contracts insert clause 4 of NASA Form 551-3 set forth in 16.859-4(d).

PAYMENTS (SEPTEMBER 1962)

The Contractor shall be paid, upon submission of proper invoices or vouchers, the prices stipulated herein for work delivered or rendered and accepted, less deductions, if any, as herein provided. Unless otherwise specified, payment will be made upon acceptance of any portion of the work delivered or rendered for which a price is separately stated in the contract.

7.302-3 Standards of Work.

STANDARDS OF WORK (SEPTEMBER 1962)

The Contractor agrees that the performance of work and services pursuant to the requirements of this contract shall conform to high professional standards.

7.302-4 Inspection.

INSPECTION (SEPTEMBER 1962)

The Government, through any authorized representatives, has the right, at all reasonable times, to inspect, or otherwise evaluate the work performed or being performed hereunder and the premises in which it is being performed. If any inspection or evaluation is made by the Government on the premises of the Contractor or a subcontractor, the Contractor shall provide and shall require subcontractors to provide all reasonable facilities and assistance for the safety and convenience of the Government representatives in the performance of their duties. All inspections and evaluations shall be performed in such a manner as will not unduly delay the work.

Where a more detailed provision covering inspection is desired, as where the primary contract objective is delivery of end items other than designs, drawings, or reports, the clause set forth below shall be substituted for this clause, unless the contracting officer determines that use of the longer clause is impracticable.

NASA PROCUREMENT REGULATION

7.302-4

CONTRACT CLAUSES

INSPECTION (SEPTEMBER 1962)

(a) All work under this contract shall be subject to inspection and test by the Government, to the extent practicable, at all times (including the period of performance) and places, and in any event prior to acceptance. The Government through any authorized representative may inspect the premises of the Contractor or any subcontractor engaged in the performance of this contract.

(b) The Government may reject any work that is defective or otherwise not in conformity with the requirements of this contract. If the Contractor fails or is unable to correct or to replace such work, the Contracting Officer may accept such work at a reduction in price which is equitable under the circumstances. Failure to agree on the reduction in price shall be a dispute concerning a question of fact within the meaning ofthe clause of this contract entitled "Disputes."

(c) If any inspection or test is made by the Government on the premises of the Contractor or a subcontractor, the Contractor shall provide, without additional charge, all reasonable facilities and assistance for the safety and convenience of the Government inspectors in the performance of their duties. If the Government inspection or test is made at a point other than the premises of the Contractor or subcontractor, it shall be at the expense of the Government. All inspections and tests by the Government shall be performed in such a manner as not unduly to delay the work. Final inspection and acceptance or rejection of the work shall be made as promptly as practicable after delivery except as otherwise provided in this contract; but failure to inspect and accept, or reject the work shall neither relieve the Contractor from responsibility for such of the work as is not in accordance with the contract requirements nor impose liability on the Government therefor.

(d) The inspection and test by the Government of any work shall not relieve the Contractor from any responsibility regarding defects or other failures to meet the contract requirements which may be discovered prior to acceptance. Except as otherwise provided in this contract, acceptance shall be conclusive except as regards latent defects, fraud, or such gross mistakes as amount to fraud.

(e) The Contractor shall provide and maintain an inspection system acceptable to the Government covering the work hereunder. Records of all inspection work by the Contractor shall be kept complete and available to the Government during the performance of this contract and for such longer period as may be specified elsewhere in this contract.

7.302-5 Assignment of Claims. In accordance with the instructions in 7.103-8, insert the clause set forth therein.

7.302-6 Examination of Records by Comptroller General. In accordance with 7.104-15, insert the clause set forth therein.

7.302-7 Federal, State, and Local Taxes. Insert the clause set forth in 11.401-1 or 11.401-2 in accordance with the requirements of 11.401. 7.302-8 Utilization of Small Business Concerns. In accordance with the requirements of 1.707-3(a), insert the clause set forth therein.

7.302-9 Default. In accordance with the requirements of 8.710, insert

the clause set forth therein.

7.302-10 Termination for the Convenience of the Government. In accordance with the requirements of 8.701(a), insert the clause set forth therein.

7.302-11 Disputes. Insert the clause set forth in 7.103-12. 7.302-12 Renegotiation. Insert the clause set forth in 7.103-13.

7.302-13 Buy American Act. In accordance with the requirements of Part 6, Subpart 1, insert the clause set forth in 6.104-5.

7.302-14 Convict Labor. In accordance with Part 12, Subpart 2, insert the clause set forth in 7.104-17.

7.302-15 Walsh-Healey Public Contracts Act. Insert the clause set forth in 12.605.

7.302-5

CFR TITLE 41 CHAPTER 18

CLAUSES FOR FIXED-PRICE R&D CONTRACTS

7.302-16 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 inclusion in contracts with a State or political subdivision thereof.

7.302-17 Equal Opportunity. In accordance with the provisions of 12.804, insert the appropriate clause set forth therein.

7.302-18 Officials Not To Benefit. Insert the clause set forth in 7.103-19. 7.302-19 Covenant Against Contingent Fees. Insert the clause set forth in 1.503.

7.302-20 Clean Air and Water. Insert the clause set forth in 1.2302-2. 7.302-21 Authorization and Consent. In accordance with the requirements in 9.102, insert the clause set forth in 9.102(b).

7.302-22 Notice and Assistance Regarding Patent and Copyright Infringement. Insert the clause set forth in 9.104.

7.302-23 New Technology or Property Rights in Inventions. In accordance with the requirements of 9.107-4, insert the "New Technology" clause of 9.107-5 or 9.107-6, as appropriate.

7.302-24 Rights in Data. If data is to be delivered under the contract, insert the appropriate clause in accordance with the instructions in 9.203. 7.302-25 Security Requirements. Insert the clause set forth in 7.104-12, except that if the contract is with an educational institution and is awarded on the basis of no profit, insert the clause set forth in 7.451-24. 7.302-26 Utilization of Labor Surplus Area Concerns. In accordance with the requirements of 1.805-3(a), insert the clause set forth therein. 7.302-53 Interest. Insert the clause set forth in 7.103-53.

7.302-54 Reports of Work. A clause requiring the contractor to furnish reports of work shall be included in the Schedule of the contract. An approved clause is set forth below. Changes in this clause may be made to meet the particular requirements of a procurement. Consideration should be given in each case to the desirability of providing for reports on the completion of significant units or phases of the work, in addition to periodic reports and reports on the completion of the entire contract.

REPORTS OF WORK (SEPTEMBER 1962)

(a) Monthly Progress Reports. The Contractor shall submit separate monthly progress reports of all work accomplished during each month of contract performance. Reports shall be in narrative form, and brief and informal in content. Monthly reports shall include: (i) a quantitative description of overall progress;

(ii) an indication of any current problems which may impede performance, and proposed corrective action; and

(iii) a discussion of the work to be performed during the next monthly reporting period. Monthly reports shall be submitted in ..... copies, plus a reproducible copy.

(b) Quarterly Progress Reports. The Contractor shall submit separate quarterly reports of all work accomplished during each three-month period of contract performance. In addition to factual data, these reports shall include a separate analysis section which interprets the results obtained, recommends further action, and relates occurrences to the ultimate objectives of the contract work. Sufficient diagrams, sketches, curves, photographs, and drawings shall be included to convey the intended meaning. Quarterly reports shall be submitted in... copies, plus a reproducible copy.

(c) Final Report. The Contractor shall submit a final report which documents and summarizes the results of the entire contract work, including recommendations and conclusions based on the experience and results obtained. The final report shall include tables, graphs, diagrams, curves, sketches, photographs, and drawings in sufficient detail to comprehensively explain the results achieved under the contract. The final report shall be submitted in .... copies, plus a reproducible copy.

NASA PROCUREMENT REGULATION

7.302-54

CONTRACT CLAUSES

7.302-55 Scientific and Technical Information Service. In conformance with Section 203(a) of the National Aeronautics and Space Act of 1958 (42 U.S.C. 2473), and in the interest of conserving time and funds, and to avoid unnecessary duplication of effort, it is NASA policy to encourage contractors to use scientific and technical information in the possession of NASA in direct support of all NASA contracts involving research and development work. This information, which is available to contractors free of charge, includes past and current reports on research, development, test and evaluation. In order that such scientific and technical information may be provided in a timely manner, it is necessary for the contractor to furnish NASA the information specified in the clause set forth below. Accordingly, the following clause shall be inserted in all research and development contracts.

SCIENTIFIC AND TECHNICAL INFORMATION SERVICE (JUNE 1972)

(a) In order that NASA may provide the Contractor scientific and technical information in accordance with the procedures set forth in the introduction section of Scientific and Technical Aerospace Reports (STAR) distributed by NASA, the Contractor shall, within 10 days after receipt of this contract, furnish in writing to the Scientific and Technical Information Office (Code KS), NASA Headquarters, Washington, D.C. 20546, (i) name of contractor, (ii) contract number, (iii) date of contract completion, (iv) security classification of contract and (v) name and address of the individual responsible for technical performance of the contract.

(b) NASA reserves the right, in the event of the unavailability of any scientific and technical information requested, to notify the Contractor of such unavailability. Failure of NASA to furnish any information requested shall not entitle the Contractor to any adjustment in the price, cost (estimated or target), fee, time required for performance or delivery schedule of the contract.

7.303 Clauses Required To Be Used When Applicable. The following clauses shall be inserted when applicable in all fixed-price research and development contracts except as indicated in this Subpart. See 7.350 for short form clauses.

7.303-1 Clauses for Contracts Involving Construction Work.

(a) In accordance with the requirements of Part 12, Subpart 4, insert in fixed-price research and development contracts which involve construction work the clauses listed below, which are set forth in 12.403-1:

Davis-Bacon Act

Contract Work Hours and Safety Standards Act-Overtime Compensa

tion

Apprentices and Trainees

Payrolls and Basic Records

Compliance with Copeland Regulations

Withholding of Funds

Subcontracts

Contract Termination-Debarment

(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," as set forth in 6.207(c). 7.303-2 Filing of Patent Applications. In accordance with the requirements of 9.106, insert the clause set forth therein. 7.303-3 through 7.303-5 [Reserved]

7.302-55

CFR TITLE 41 CHAPTER 18

CLAUSES FOR FIXED-PRICE R&D CONTRACTS

7.303-6 Priorities, Allocations, and Allotments. In accordance with the requirements of 1.307-2, insert the clause set forth the rein.

7.303-7 Government Property. In accordance with the requirements set forth in 13.702 or 13.706, insert the appropriate contract clause.

7.303-8 Communist Areas. In accordance with the requirements of 6.403, insert the clause set forth therein.

7.303-9 Notice to the Government of Labor Disputes. In accordance with the requirements of 7.104-4, insert the clause set forth therein.

7.303-10 Limitation on Withholding of Payments. In accordance with the requirements of 7.104-21, insert the clause set forth therein.

7.303-11 Small Business Subcontracting Program. In accordance with the provisions of 1.707, insert the clause set forth in 1.707-3 (b).

7.303-12 Subcontracts. In accordance with the requirements of 23.201-1, insert the appropriate Subcontracts clause.

7.303-13 through 7.303-16 [Reserved]

7.303-17 Ground and Flight Risk. In all negotiated fixed-price type contracts for the production, Modification, maintenance, or overhaul of aircraft, insert the clause set forth in 10.404.

7.303-18 through 7.30 3-22 [Reserved]

7.303-23 Progress Payments. In accordance with the requirements of 7.104-35, insert the appropriate clause as set forth therein.

7.303-24 Required Source for Jewel Bearings and Related Items. In accordance with the requirements of 1.315, insert the clause set forth therein.

7.303-25 Labor Surplus Area Subcontracting Program. In accordance with the requirements of 1.805-3(b), insert the clause set forth therein.

7.303-26 Frequency Authorization. In accordance with 7.104-26, insert the clause therein.

7.303-27 Competition in Subcontracting. In accordance with the requirements of 7.104-40, insert the clause set forth therein.

7.303-28 Contractor and Subcontractor Certified Cost cr Pricing Data. In accordance with the requirements of 3.807-3, insert the clause set forth in 3.807-4.

7.303-29 Audit By National Aeronautics and Space Administration. In accordance with7. 104-42 (a), the clause set forth therein.

insert

NASA PROCUREMENT REGULATION