Subpart 7-Contract Clauses

13.701 Applicability.

(a) As used throughout this Subpart, the term "fixedFrice contract" shall include any advertised or negotiated fixed-price type contract (see 3.404) and any letter contract which will be ccnverted into a fixed-price type definitive contract, but shall exclude small purchases made under Part 3, Subpart 6.

(b) As used throughout this Subpart, the term "costreimbursement contract" shall include any costreimbursement type contract (see 3.405) and any letter contract which will1 be converted to costreimbursement type definitive contract, but shall exclude facilities contracts (see 13.111).

a

13.702 Government Property Clauses for Fixed-Price Contracts. The appropriate clause of those set forth in Faragraphs (a) and (c) below and in 13.710 shall be used, in accordance with the instructions therein, in fixed-price contracts (except for experimental, developmental, or research work with educational or ronprofit institutions, where no profit to the contract is contemplated).

(a) Government Property Clause for Fixed-Price Contracts. Except as provided in paragraphs (b) and (c) below, the following clause shall be used in all fixedFrice contracts under which the Government is to furnish to the contractor, or the contractor is to acquire, Government property;

GOVERNMENT PROPERTY (FIXED-PRICE) (OCTOBER 1977)

(a) Government-Furnished Property. The Government shall deliver to the Contractor, for use in connection with and under the terms of this contract, the property described as Government-furnished property in the Schedule or specifications, together with such related data and information as the Contractor may request and as may reasonably be required for the intended use of such property (hereinafter referred to as "Governmentfurnished property"). The delivery or performance dates for the supplies or services to te furnished by the Contractor under this contract are based upon the expectation that Government-furnished property suitable for use (except for such property furnished "as is") will be delivered to the Contractor at the times stated in the Schedule or, if not so stated, in sufficient time to enable the Contractor to meet such delivery or performance dates. In the event that Governmentfurnished property is not delivered to the Contractor ty such time or times, the Contracting Officer shall,

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upon timely written request made by the Contractor, make a determination of the delay, if any, occasioned the Contractor thereby, and shall equitably adjust delivery or performance dates or the contract price, or toth, and any other contractual provision affected by any such delay, in accordance with the procedures provided for in the clause of this contract entitled "Changes." Except for Government-furnished property furnished "as is", in the event the Governmentfurnished property is received by the Contractor in a condition not suitable for the intended use the Contractor shall, upon receipt thereof, notify the Contracting Officer of such fact and, as directed by the Contracting Officer, either (i) return such property at the Government's expense or otherwise dispose of the property, or (ii) effect repairs or modifications. Upon the completion of (i) or (ii) above, the Contracting Officer upon written request of the Contractor shall equitably adjust the delivery or performance dates or the contract price, or both, and any other contractual provision affected by the rejection or disposition, or the repair or modification, in accordance with the procedures provided for in the clause of this contract entitled "Changes." The foregoing provisions for adjustment exclusive and the Government shall not be liable to suit for breach of contract by reason of any delay in delivery of Government-furnished property or delivery cf such property in a condition not suitable for its intended use.

(b) Changes in Government-furnished Property.

(1) By notice in writing, the Contracting Officer may (i) decrease the property provided or to be provided by the Government under this contract, or (ii) substitute other Government-owned property for property to be Frovided by the Government, or to be acquired by the Contractor for the Government, under this contract. The Contractor shall promptly take such action as the Contracting Officer may direct with respect to the removal and shipping of property covered by such notice. (2) In the event of any decrease in or substitution cf property pursuant to subparagraph (1) above, or any withdrawal of authority to use property provided under any other contract or lease, which property the Government had agreed in the Schedule to make available for the performance of this contract, the Contracting officer, upon the written request of the Contractor

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(or, if the substitution of property causes a decrease in the cost of performance, on his own initiative), shall equitably adjust such contractual provisions as may be affected by the decrease, substitution, or withdrawal, in accordance with the procedures provided for in the "Changes" clause of this contract.

(c) Title. Title to all property furnished by the Government shall remain in the Government. In order to define the obligations of the parties under this clause, title to each item of facilities, special test equipment, and special tooling (other than that subject to a "Special Tooling" clause) acquired by the Contractor for the Government pursuant to this contract shall pass to and vest in the Government when its use in the performance of this contract commences, or upon payment there for by the Government, whichever is earlier, whether or not title previously vested. All Government-furnished property, together with all Froperty acquired by the Contractor title to which vests in the Government under this paragraph, is subject to the provisions of this clause and is hereinafter collectively referred to as "Government property." Title to Government property shall not be affected by the incorporation or attachment thereof to any property not owned by the Government, nor shall such Government property, or any part thereof, be or recome a fixture or lose its identity as personalty by reason of affixation to any realty.

(d) Property Administration. The Contractor shall comply with the provisions of the "Control of Government Property in Possession of Contractors" (Appendix B, NASA Procurement Regulation) as in effect cn the date of the contract, which is hereby incorporated by reference and made a part of this

contract.

(e) Use of Government Property. The Government property shall, unless otherwise provided herein or approved by the Contracting Officer, be used only for the performance of this contract.

(f) Utilization, Maintenance and Repair of Government Froperty. The Contractor shall maintain and administer, in accordance with sound industrial practice, and in accordance with applicable provisions of Appendix B of the NASA Procurement Regulation, a program for the utilization, maintenance, protection and preservation cf Government property, until disposed of by the Contractor in accordance with this clause. In the event that any damage occurs to Government property the risk

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of which has been assumed by the Government under this contract, the Government shall replace such items or the Contractor shall make such repair of the property as the Government directs; provided, however, that if the Contractor cannot effect such repair within the time required, the Contractor shall dispose of such property in the manner directed by the Contracting Officer. The contract price includes no compensation to the Contractor for the performance of any repair or replacement for which the Government is responsible, and an equitable adjustment will be made in any contractual provisions affected by such repair or replacement of Government property made at the direction of the Government, in accordance with the procedures provided for in the "Changes" clause of this contract. Any repair or replacement for which the Contractor is responsible under the provisions of this contract shall be accomplished by the Contractor at his cwn expense.

(g) Risk of Loss. Unless otherwise provided in this contract, the Contractor assumes the risk of, and shall be responsible for, any loss cf or damage to Government property provided under this contract upon its delivery to him or upon passage of title there to to the Government as provided in paragraph (c) hereof, except for reasonable wear and tear and except to the extent that such property is consumed in the performance of this contract.

(h) Access. The Government, and any persons ċesignated by it, shall at all reasonable times have access to the premises where in any Government property is located, for the purpose of inspecting the Government Property.

(i) Final Accounting and Disposition of Government Froperty. Upon the completion of this contract, or at such earlier dates as may be fixed by the Contracting Officer, the Contractor shall submit, in a form acceptable to the Contracting officer, inventory schedules covering all items of Government property not consumed in the performance of this contract (including any resulting scrap) or not theretofore delivered to the Government, and shall prepare for shipment, deliver f.o.b. origin, or dispose of the Government property, as may be directed or authorized by the Contracting Cfficer. The net proceeds of any such disposal shall be credited to the contract price or shall be paid in such cther manner as the Contracting Officer may direct.

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(j) Restoration

of Contractor's Premises. Unless

otherwise provided herein the Government:

(i) may abandon any Government property in place, and thereupon all obligations of the Government regarding such abandoned property shall cease; and

(ii) has no obligation to the Contractor with regard to restoration or rehabilitation of the Contractor's premises, neither in case of abandonment (paragraph (j) (i) above), disposition on completion of need or the contract (paragraph (i) above), nor otherwise, Except for restoration or rehabilitation costs which are properly included in an equitable adjustment under Faragraph (b) above.

(k) Communications.

All communications

pursuant to this clause shall be in writing.

issued

(b) Contracts Requiring the Furnishing of Cost and Fricing Data. In negotiated fixed-price contracts for which the price is not based on (i) adequate price competition, (ii) established catalcg cr market prices of commercial items sold in substantial quantities to the general public (see 3.807-1 (b)), or (iii) prices se t by law or regulation, substitute the following for paragraph (9) of the clause in (a) above:

(g) Risk of Loss.

or

(1) Except as provided in (2) below, the Contractor shall not be liable for loss or destruction of damage to the Government property provided under this contract:

(i) caused by any peril while the property is in transit off the Contractor's premises; or

(ii) caused by any of the following perils while the property is on the contractor's or subcontractor's premises, or on any other premises where such property may properly be located, or by removal therefrom because of any of the following perils

(A) fire; lightning, windstorm, cyclone, tornado, hail; explosion; riot, riot attending a strike, civil commotion; vandalism and malicious mischief; sabotage; aircraft or objects falling therefrom; vehicles running on land or tracks; excluding vehicles owned or operated by the Contractor or any agent or employee of the Contractor; smoke; sprinkler leakage; earthquake or volcanic eruption; flood, meaning thereby rising of a tody of water; nuclear reaction, nuclear radiation or radioactive contamination; hostile or warlike action, including action in hindering, combating, or defending

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