CLAUSES FOR FIXED-PRICE SUPPLY CONTRACTS

where award is on the basis of effective price competition, or where prices are established by law or regulation.

COMPETITION IN SUBCONTRACTING (SEPTEMBER 1962)

The Contractor shall select subcontractors (including suppliers) on a competitive basis to the maximum practical extent consistent with the objectives and requirements of the con

tract.

7.104-41 Contractor and Subcontractor Certified Cost or Pricing Data. In accordance with the requirements of 3.807-3, insert the clause set forth in 3.807-4.

7.104-42 Audit by National Aeronautics and Space Administration. (a) Insert the following clause in any negotiated contract which is not firm fixed-price or fixed-price with escalation.

AUDIT BY NATIONAL AERONAUTICS AND SPACE ADMINISTRATION (JANUARY 1973)

(a) General. The Contracting Officer or his representative shall have the audit and in spection rights described in paragraph (b) below.

(b) Examination of Costs. The Contractor shall maintain, and the Contracting Officer or his representatives shall have the right to examine books, records, documents, and other evidence and accounting procedures and practices, sufficient to reflect properly all direct and indirect costs of whatever nature claimed to have been incurred and anticipated to be incurred for the performance of this contract. Such right of examination shall include in spection at all reasonable times of the Contractor's plants, or such parta thereof, as may be engaged in the performance of this contract.

(c) Availability. The materials described in (b) above shall be made available at the office of the Contractor, at all reasonable times, for inspection, audit, or reproduction, until the ex piration of three years from the date of final payment under this contract or auch lesser time specified in Appendix M of the NASA Procurement Regulation, and for auch longer period, if any, as is required by applicable statute, or by other clauses of this contract, or by (1) and (2) below:

(1) If this contract is completely or partially terminated, the records relating to the work terminated shall be made available for a period of three years from the date of any result ing final settlement.

(2) Records which relate to appeals under the "Disputes" clause of this contract, or litiga tion or the settlement of claims arising out of the performance of this contract, shall be made available until such appeals, litigation, or claims have been disposed of

(d) The Contractor shall insert a clause containing all of the provisions of this clause in cluding this paragraph (d), in each subcontract hereunder, that is run fem fraud prus * fixed-price with escalation, except altered as necessary for proper identification of the sim tracting parties and the Contracting Officer under the Greyernment, pršina kondenat

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(b) Examination of Costs Contra

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CLAUSES FOR FIXED-PRICE SUPPLY CONTRACTS

the

Contractor's plants, or such parts thereof, as may be engaged in the performance of this contract.

7.104-43 through 7, 104-44 (Reserved) 7.104-45 Limitation of Liability.

(a) In accordance with 1.330, insert the following clause.

LIMITATION OF LIABILITY (JUNE 1978)

(a) Except for remedies expressly provided elsewhere in this contract, the Contractor shall not be liable for loss of or damage to property of the Government (excluding the supplies delivered under this contract) occurring after acceptance of the supplies delivered under this contract and resulting from any defects deficiencies in such supplies.

or

(b) The foregoing limitations shall not apply when the defects or deficiencies in such supplies or the Government acceptance of such supplies resulted from willful misconduct or lack of good faith on the part of any of the Contractor's directors or officers, or on the part of any of his managers, superintendents, or other equivalent representatives, who have supervision cr direction of:

(i) all or substantially all of the Contractor's business; or

(ii) all or substantially all of the Contractor's operations at any one plant or separate location, in which this contract is being performed; or

(iii) a separate and complete major industrial operation in connection with the performance of this

contract.

(c) Notwithstanding paragraph (a) above, if the Contractor carries insurance or has established a reserve for self-insurance covering liability for damages or losses suffered by the Government through purchase or use of the contract supplies required to be delivered to the Government under this contract, the Contractor shall be liable to the Government to the extent of such insurance or reserve for self-insurance for damages or losses to property of the Government occuring after acceptance of the supplies delivered to the Government under this contract and resulting from any defects or deficiencies in such supplies.

(d) The substance of this clause, including this paragraph (d) suitably altered to reflect the relationship of the contracting parties, shall be included in all subcontracts hereunder.

CFR TITLE 41 CHAPTER 18

CLAUSES FOR FIXED-PRICE SUPPLY CONTRACTS

(b) In accordance with 1.330, in the procurement of rajor items, insert the following clause.

LIMITATION OF LIABILITY-MAJOR ITEMS (JUNE 1978) (a) Except as provided below, and notwithstanding any other provision of this contract, the Contractor shall not be liable for loss of or damage to property of the Government (including the supplies delivered under this contract) occurring after acceptance of the supplies delivered under this contract and resulting from any defects or deficiencies in such supplies.

(b) The foregoing limitations shall not apply when the defects or deficiencies in such supplies or the Government acceptance of such supplies resulted from willful misconduct or lack of good faith on the part of any of the Contractor's directors or officers, or on the part of any of his managers, superintendents, or other equivalent representatives, who have supervision or direction of: (i) all or substantially all of the Contractor's business; or

(ii) all or substantially all of the Contractor's operations at any one plant or separate location, in which this contract is being performed; or

(iii) a separate and complete major industrial operation in connection with performance of this contract.

(c) Notwithstanding paragraph (a) above, if the Contractor carries insurance or has established a reserve for self-insurance covering liability for ċamages or losses suffered by the Government through Furchase or use of the contract supplies required to be delivered to the Government under this contract, the Contractor shall be liable to the Government for damages or losses to property of the Government cccurring after acceptance of the supplies delivered to the Government under this contract and resulting from any defects or deficiencies in such supplies to the extent of such insurance or reserve for self-insurance.

(d) This clause does not diminish the Contractor's obligation, to the extent otherwise arising under this contract, relating to correction, repair, replacement cr other relief for any defect or deficiency in supplies delivered under this contract. If loss or damage has occurred and correction, repair, or replacement is no longer feasible or desired by the

NASA PROCUREMENT REGULATION

CONTRACT CLAUSES

Government, the Contractor shall, as determine by the Contracting officer:

(i) pay to the Government the amount which it would have cost the Contractor to make such correction, repair or replacement before the loss or damage occurred, or

(ii) provide other equitable relief.

(e) The provisions of this clause shall not limit or ctherwise affect the Government's rights pursuant to the following listed clauses, if included in this contract:

GROUND AND FLIGHT RISKS,
GOVERNMENT PROPERTY, and

WARRANTY OF TECHNICAL DATA.

(f) In all subcontracts hereunder, except those covered by (g) below, the Contractor shall either:

(i) ́ insert, with the advance written consent of the Contracting Officer, the substance of this clause including this paragraph (f) suitably altered to reflect the relationship of the contracting parties; or (ii) insert the substance of the clause in 7.10 445 (a), suitably altered to reflect the relationship the contracting parties.

(g) In subcontracts for both major items for which this clause is appropriate, and other end items for which the clause in 7.104-45 (a) is appropriate, the substance of both clauses shall be included, with the advance written consent of the Contracting Officer, with the following preamble to this clause:

LIMITATION OF LIABILITY-MAJOR ITEMS (JUNE 1978) (The provisions of this clause shall apply only to those items identified in this contract as being subject to this clause.)

The Contractor shall identify high unit cost items by line item.

(c) In contracts for the purchase of both major items (see 1.330) for which the clause in (b) above is appropriate, and other contract end items for which the clause in (a) above is appropriate, the clauses in both (a) and (b) above shall be included, with following preamble to the "LIMITATION OF LIABILITY MAJOR ITEMS" clause.

CFR TITLE 41 CHAPTER 18

CLAUSES FOR FIXED-PRICE SUPPLY CONTRACTS

LIMITATION OF LIABILITY-MAJOR ITEMS (JUNE 1978)

The provisions of this clause shall apply only to those items identified in this contract as being subject to this clause.)

The Contracting Officer shall identify high unit cost items by line item.

7.104-46 through 7.104-49 (Reserved) 7.104-50 Optional

Data Requirements. In accordance

with the requirements of 9.203-2, insert the clause set forth therein.

7,104-51 Approval of Contract, Insert the clause set forth below in the contract when approval there of by the Director of Procurement is required. (The clause is | not to be incorporated by reference.)

APPROVAL OF CONTRACT (JUNE 1978)

This contract (modification) shall be subject to the written approval of the Director of Procurement, NASA | Beadquarters, or his duly authorized representative, and shall not be binding until so approved.

7.104-52 (Reserved)

7.104-53 NASA Financial Management Reporting. When financial management reporting on NASA Form 533 series of reports is required (see NASA Management Instruction 9501.1B, "Contractor Financial Management Reporting System" and NASA Handbook 9501.2B "Procedures for Contractor Reporting of Correlated Cost and Performance Data") such requirement will be set forth in the Frocurement Request, and the appropriate clauses set forth in (a) and (b) below shall be set forth in the contract.

(a) The clause set forth below shall be used when the NASA Form 533 series of reports, excluding the optional Monthly Contractor Financial Management Performance Analysis Report (NASA Form 533P), is required from contractor:

NASA FINANCIAL MANAGEMENT REPORTING
(OCTOBER 1974)

(a) Financial Management Reports shall be submitted by the Contractor on NASA Form 533 series of reports in accordance with the instructions set forth in NA SA Handbook "Procedures for Contractor Reporting of

NASA PROCUREMENT REGULATION