CONTRACT CLAUSES

7.303-30 Special Test Equipment. In accordance with the requirements of 13.705, insert the clause set forth therein.

7.303-50 Optional Data Requirements. In accordance with the requirements of 9.203-2, insert the clause set forth therein.

7.303-51 Approval of Contract. In accordance with the requirements of 7.104-51, insert the clause set forth therein.

7.303-52 Preference for United States-Flag Vessels. Under the circumstances described in Part 1, Subpart 14, insert the clause set forth in 1.1402-3.

7.303-53 Geographic Participation in the Aerospace Program. In accordance with the requirements of 1.30251, insert the clause set forth therein.

7.303-54

Financial Reporting of GovernmentOwned/Contractor-Held Property. In accordance with the instructions in 7.104-54, insert the clause set forth therein.

in

7.303-55 Cost Accounting Standards. In accordance with 3.1204, insert the clause set forth in 7.104-55. 7.303-56 NASA Financial Management Reporting. Insert the appropriate clause set forth in 7.104-53 accordance with the instructions set forth therein. 7.303-57 Key Personnel and Facilities. In accordance with the requirements of 1.352, insert the clause set forth therein.

7.303-58 Safety and Health. In accordance with the requirements of Part 1, Subpart 52, Insert the clause set forth in 1.5204.

7.303-59 Non-Use of Foreign-Flag Vessels Engaged in Cuban or North Vietnam Trade. In accordance with the requirements of 1.1410, insert the clause set forth

therein.

7. 303-6C Report on NASA Subcontracts. In accordance with the requirements of 16.902, insert the clause set forth therein.

7.303-61 Rights in Data for Potentially Hazardous Items. In accordance with the requirements of 9.203-6, insert the clause specified therein.

7.303-62 Potentially Hazardous Items. In accordance with the requirements of 1.351, insert the clause set forth therein.

7.303-63 Pricing of Adjustments. In accordance with the requirements of 7.103-54, insert the clause set forth therein.

7.303-64 Order of Precedence. In accordance with 7.104-56, insert the clause set forth therein. 7.304-51

CFR TITLE 41 CHAPTER 18

CLAUSES FOR FIXED-PRICE R&D CONTRACTS

7.303-65 Preference for United States Flag Air Carriers. In accordance with clause in 7.104-95.

1.336-1 (b). insert

the

7.303-66 through 7.303-85 (Reserved). 7.303-86 Notification of Changes. In accordance with 26.802 insert the clause set forth in 7.104.86. 7.304 Additional Clauses. Insert the clauses if it is desired to cover the subject matter. 7.304-1 Changes.

CHANGES (SEPTEMBER 1962)

following

The Contracting Officer may at any time, by a written crder, and without notice to the sureties, if any, make changes, within the general scope of this contract, in any one or more of the following: (i) drawings, designs, or specifications, (ii) method of shipment or packing, (iii) place of inspection, delivery, or acceptance, and (iv) the amount of Government-furnished property. If any such change causes an increase or decrease in the cost of, or the time required for performance of, this contract, or otherwise affects any cther provisions of this contract, whether changed or not changed by any such order, an equitable adjustment shall be made (i) in the contract price or time of performance, or both, and (ii) in such other provisions of the contract as may be so affected, and the contract shall be modified in writing accordingly. Any claim by the Contractor for adjustment under this clause must be asserted within sixty (60) days from the date of receipt by the Contractor of the notification of change; Provided, however, that the Contracting cfficer, if he decides that the facts justify such action, may receive and act upon any such claim asserted at any time prior to final payment under this contract. Failure to agree to any adjustment shall be a ċispute concerning a question of fact within the reaning of the clause of this contract entitled "Disputes." However, nothing in this clause shall excuse the Contractor from proceeding with the contract as changed.

the period of "sixty (60) for adjustment must be

In the foregoing clause, days" within which any claim asserted may be reduced to a period of not less than "thirty (30) days."

7.304-2 Alterations in Contract. The clause set forth in 7.105-1 may be inserted.

7.304-3 [Reserved]

NASA PROCUREMENT REGULATION

CONTRACT CLAUSES

7.304-4 Bill of Materials. In accordance with the instructions in 7.105-6, the clause set forth therein may be used.

7.304-5 Stop Work Orders. The clause set forth in 7.105-8 is authorized for use under the criteria, and in accordance with the instructions, set forth in 7.105-8.

Next page is 7-3:77

CFR TITLE 41 CHAPTER 18

CLAUSES FOR FIXED-PRICE R&D CONTRACTS

7.304-6 [Reserved]

7.304-7 [Reserved]

7.304-8 Warranty. In accordance with 1.324, an appropriate warranty clause may be inserted.

7.304-50 Notice of Delay. In accordance with the instructions in 7.20550, the clause set forth therein is authorized for use.

7.304-51 Limitation of Government's Obligation. The clause set forth below is authorized for use when all of the following conditions are present:

(i) the total fixed-price of the contract is $1,000,000 or more;

(ii) the period of performance under the contract is in excess of twelve months or the period of performance overlaps the succeeding fiscal year; (iii) funds are not available to fund the total fixed-price of the contract at the time of entering into the contract; and

(iv) initial funding of the contract is not less than fifty percent of the total fixed-price.

Notwithstanding the grant of authority to use the clause under the foregoing circumstances, it is emphasized that fixed-price contracts shall be fully funded whereverpossible and that, accordingly, incremental funding of such contracts should be kept to the absolute minimum. Contracting officers are authorized, in appropriate cases, to revise paragraphs (a), (b), and (g) of the clause to specify the work required under the contract in lieu of contract item numbers.

LIMITATION OF GOVERNMENT'S OBLIGATION(SEPTEMBER 1974)

(a) Of the total price of items ..... through ....., the sum of $..... is presently available for payment and allotted to this contract. It is anticipated that from time to time additional funds will be allotted to this contract in accordance with the following schedule until the total price of said items is allotted.

(b) The Contractor agrees to perform or have performed work on said items up to the point at which, in the event of termination of this contract pursuant to the clause hereof entitled "Termination for Convenience of the Government," the total amount payable by the Government, (including amounts payable in respect of subcontracts and settlement costs) pursuant to paragraph (e) thereof, would in the exercise of reasonable judgment by the Contractor approximate the total amount at the time allotted to the contract. The Contractor shall not be obligated to continue performance of the work beyond such point. The Government shall not be obligated in any event to pay or reimburse the Contractor in excess of the amount from time to time allotted to the contract, anything to the contrary in the clause hereof entitled "Termination for Convenience of the Government" notwithstanding.

(c) It is contemplated that funds presently allotted to this contract will cover the work to be performed until..... In the event funds allotted are considered by the Contractor to be inadequate to cover the work to be performed until the above date, or an agreed date in substitution thereof, the Contractor shall notify the Contracting Officer in writing when within the next thirty (30) days the work will reach a point at which, in the event of termination of this contract pursuant to the clause hereof entitled "Termination for Convenience of the Government," the total amount payable by the Government (including amounts payable in respect of subcontracts and settlement costs) pursuant to paragraph (e) thereof, will approx

NASA PROCUREMENT REGULATION

7.304-51

30-156 0-79——12

CONTRACT CLAUSES

imate eighty-five percent (85%) of the total amount then allotted to the contract. The notice shall state the estimated date when such point will be reached and the estimated amount of additional funds required to continue performance to the above or an agreed substituted date. The Contractor shall, thirty (30) days prior to the date above written or agreed substituted date, advise the Contracting Officer in writing as to the estimated amount of additional funds which will be required for the timely performance of the contract for a further period as may be specified in the contract or otherwise agreed to by the parties. If after such latter notification, additional funds are not allotted by the date above written or by an agreed date in substitution thereof, the Contracting Officer will, upon written request of the Contractor, terminate this contract on such date or the date set forth in the request, whichever is later, pursuant to the provisions of the clause of this contract entitled "Termination for Convenience of the Government."

(d) When additional funds are allotted from time to time for continued perfomance of the work under this contract, the parties shall agree on the applicable period of contract performance which shall be covered by such funds. The provisions of paragraphs (b) and (c) above shall apply to such additional allotted funds and substituted date pertaining thereto and the contract amended accordingly.

(e) If the Contractor incurs additional costs, or is delayed in the performance of the work under this contract, solely by reason of the failure of the Government to allot additional funds in amounts sufficient for the timely performance of this contract, and if additional funds are allotted, an equitable adjustment shall be made in the price or prices (including appropriate target, billing and ceiling prices where applicable) of said items or in the time of delivery or both. Failure to agree to any such equitable adjustment hereunder shall be a dispute concerning a question of fact within the meaning of the clause of this contract entitled "Disputes."

(f) The Government may at any time prior to termination, and, with the consent of the Contractor, after notice of termination, allot additional funds for this contract.

(g) The provisions of this clause with respect to termination shall in no way be deemed to limit the rights of the Government under the clause hereof entitled "Default." The provisions of this clause are limited to the work on and allotment of funds for the items set forth in (a) above. This clause shall become inoperative upon the allotment of funds for the total price of said work except for rights and obligations then existing under this clause.

(h) Nothing in this clause shall affect the right of the Government to terminate this contract pursuant to the clause of this contract entitled "Termination for Convenience of the Government."

7.304-52 through 7.304-58 [Reserved]

7.304-59 Price Escalation. The clauses set forth in 7.106 and 7.107 are authorized for use in accordance with the instructions set forth therein. 7.304-60 Incentive Price Revision. The clause set forth in 7.108 is authorized for use in accordance with the instructions set forth therein. 7.304-61 Special Tooling. Where special tooling is to be acquired by the contractor, the clause set forth in 13.704 is authorized for use in accordance with instructions contained therein.

7.350 Short Form Clauses for Fixed-Price Research Contracts With Nonprofit Institutions. Notwithstanding the provisions of 7.302 and 7.303, the short form clauses set forth or referred to in this paragraph 7.350 shall be used in fixed-price contracts for basic or applied research with nonprofit institutions of higher education, or with nonprofit institutions whose primary purpose is the conduct of scientific research, when a short form contract is desired.

7.350-1 Definitions. Insert the clause set forth in 7.103-1. 7.350-2 Payment.

7.304-52

CFR TITLE 41 CHAPTER 18