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has surety upon any bond furnished in
revety falls to furnish reports as to his

al condition from time to time as
tasted by the Government, the Contractor
u may be required from time to time

at the Interests of the Government
Wrong supplying labor or materials

the prosecution of the work contemplated

this contract shall be construed as making

§ 1-7.10343 Exami inal the decision of any administrative of.

11.1.002-21 Employment of the hand

Comptroller Gen icial, representative, or board on a question icapped. of law.

The following clay Insert the clause set forth in $ 1-12.

in fixed-price negot 81-7.102-13 [Reserved]

1941 under the conditions contained

may be included in of

n the section § 1-7.102–14 Buy American Act.

negotiated contract B F# 28642, July 22, 1074)

§ 1-3.814-2(c). Whe Insert the clause set forth in fl6.104–5 under the conditions contained (1-1102–22 Payment of interest on

the use of Standard therein.

walractors' claims.

the clause may be an

the use of the term 81-7.102-15 Contract Work Hours and sert the clause set forth in § 1-1.322

term "contractor." Safety Standards Act-overtime com mier the conditions prescribed therein.

EXAMINATION OF RECO pensation. IB 11580, Mar. 3, 1976)

GEN Insert the clause set forth in $ 1-12.303

(11.102-23 Clean air and water.

(a) This clause is ap under the conditions contained in fl

of this contract exceec 12.302.

lasert the clause prescribed by § 1 tered into by means of

2-2 under the conditions set forth small business restrict § 1-7.102–16 Equal opportunity.

not applicable if this Insert the clause set forth in fl

R$441, Aug. 20, 1975)

into by means of fori 12.803—2 under the conditions contained

(b) The Contractor in § 1-12.803–1.

14103 Clauses to be used when appli.

troller General of the able.

of his duly authorized 31-7.102–17 Officials not to benefit.

until the expiration OFFICIALS NOT TO BENEFIT

payment under this c

time specified in elthe No member of or delegato to Congress, or

Armed Services Procu resident commissioner, shall be admitted to

tho Federal Procurem any share or part of this contract, or to any

1-20, as appropriate, b benefit that may arise therefrom; but this

right to examine any di provision shall not be construed to extend to

documents, papers, an his contract if made with a corporation for

tractor involving trans ts general benefit.

contract. 51-7.102–18 Covenant against contin

(c) Tho Contractor

clude in all his subc gent fees.

provision to the effect Insert the clause set forth in § 1-1.503

tor agrees that the C under the conditions contained in fl

the United States or a. .501.

ized representatives sh

tion of 3 years after fir 1–7.102-19 Termination for conven.

subcontract or such le ience of the Government.

elther Appendix M of Insert the clause set forth in § 1-8.701

Procurement Regulati

curement Regulations fixed-price supply contracts in excess

priate, have access t f $10,000 except as permitted by $ 1-8.

examine any directly 00-2(a) (2) for contracts not in excess

ments, papers, and rec $100,000.

tractor, involving tran =O FR 44140, Sept. 25, 1975)

subcontract. The term

in this clause exclude 1-7.102-20 Pricing of adjustments.

not exceeding $2,500 a The following clause shall be included

or purchase orders for all formally advertised or negotiated

at rates established for ntracts other than cost-type contracts:

to the general public.

(d) The periods of a PRICING OF ADJUSTMENTS

described in (b) and When costs are a factor in any determina

which relate to (1) ar n of a contract price adjustment pursuant

putes" clause of this the "Changes" cause or any other provi

or the settlement of cls n of this contract, such costs shall be do

performance of this ordance with the contract cost principles

and expenses of this co procedures in Part 1-16 of the Federal

ception has been take ocurement Regulations (41 CFR 1-16) of

General or any of his tion XV of the Arpied Services Procure

sentatives, shall contir nt Regulation in effoct on the date of this

litigation, claims, or Itract.

dlsposed of. (29 FR 10192, July 24 40 FR 44140, Sept. 25, 1

1.103_1 Clauses for fixed-price sup

ply contracts involving construction. o insert the clauses set forth in | 1:12402_1 In fixed-price supply con

ats under the conditions contained in 4-12402-2. The clauses set forth in

-12403-1 are:

baris-Bacon Act.

Catract Work Hours and Safety
Standards Act-Overtime Compen-

aprentices.
Payrolls and Basic Records.
implance with Copeland Regula-

Puhholding of Funds. boontracts.

Gretract Termination — Debarment.
Insert the clause set forth in
-1.605 in fixed-price supply contracts
Se the conditions contained in Sub-

1-18.6.

14-1903–2 Additional bond security,

ADDITIONAL BOND SECURITY

setion with this contract becomes un.
table to the Government, or 1 ang

S promptly furnish such additional 88

livery or performance dates for the supplies (c) Title to all property furnished by the or services to be furnished by the Contractor Government shall remain in the Government. under this contract are based upon the ex In order to define the obligations of the pectation that Government-furnished prop parties under this clause, title to each item erty suitable for use (except for such property of facilities, special test equipment, and spefurnished "as is") will be delivered to the cial tooling (other than that subject to a Contractor at the times stated in the Sched. "Special Tooling" clause) acquired by the ule or, if not so stated, in sufficient time to Contractor for the Government pursuant to enable the Contractor to meet such delivery this contract shall pass to and vest in the or performance dates. In the event that Government when its use in the performance Government-furnished property is not de of this contract commences, or upon payment livered to the Contractor by such time or therefor by the Government, whichever is times, the Contracting Officer shall, upon earlier, whether or not title previously vested. timely written request made by the Con All Government-furn'shed property, together tractor, make a determination of the delay. with all property acquired by the Contractor 11 any, occasioned the Contractor thereby, title to which vests in the Government under and shall equitably adjust the delivery or this paragraph, is subject to the provisions performance dates or the contract price, or of this clause and is hereinafter collectively both, and any other contractual provision referred to as "Government property." Title affected by any such delay, in accordance with to Government property shall not be affected the procedures provided for in the clause of by the incorporation or attachment thereof this contract entitled "Changes." Except for to any property not owned by the GovernGovernment-furnished property furnished ment, nor shall such Government property, or "as is," in the event the Government-fur any part thereof, be or become a fixture or nished property is received by the Contractor lose its identity as personalty by reason of in a condition not suitable for the intended

affixation to any realty. use the Contractor shall, upon receipt

(d) The Contractor shall be responsible thereof, notify the Contracting Officer of such

for and accountable for all Government propfact and, as directed by the Contracting Of

erty provided under this contract. The conficer, either (1) return such property at the tractor shall establish and maintain a system Government's expense or otherwise dispose of

to control, protect, preserve, and maintain the property, or (2) effect repair or modifica all Government property. This system shall, tion, in accordance with the procedures pro

upon request by the Contracting Officer, be vided for in the clause of this contract

submitted for review and, if satisfactory, apentitled "Changes." The foregoing provisions

proved in writing by the Contracting Officer. for adjustment are exclusive and the Gov

The Contractor shall maintain and make ernment shall not be liable to suit for breach

available such records as are required by the of contract by reason of any delay in delivery

approved system and must account for all of Government-furnished property or delivery

property until relieved of responsibility of such property in a condition not suitable

therefor in accordance with written instrucfor its intended use.

tions of the Contracting Officer. (b) (1) By notice in writing, the Contract (e) The Government property shall, unless Ing Officer may (1) decrease the property pro

otherwise provided herein or approved by the vided or to be provided by the Government

Contracting Officer, be used only for the perunder this contract, or (11) substitute other

formance of this contract. Government-owned property for property to

(1) The Contractor shall maintain and adbe provided by the Government, or to be minister, in accordance with sound industrial acquired by the Contractor for the Govern

practice, a program for the utilization, ment, under this contract. The Contractor

maintenance, repair, protection, and presershall promptly take such action as the Con

vation of Government property until disposed tracting Officer may direct with respect to

of by the Contractor in accordance with this the removal and shipping of property

clause. In the event that any damage occurs covered by such notice.

to Government property the risk of which has (2) In the event of any decrease in or sub

been assumed by the Government under this stitution of property pursuant to subpara

contract, the Government shall replace such

Items or the Contractor shall make such regraph (1), above, or any withdrawal of authority to use property provided under any

pair of the property as the Government

directs: Provided, however, That if the Conother contract or lease, which property the

tractor cannot effect such repair within the Government had agreed in the Schedule to

time required, the Contractor shall dispose of make avallable for the performance of this

such property in the manner directed by the contract, the Contracting Officer, upon the

Contracting Officer. The contract price inwritten request of the Contractor (or, if the

cludes no compensation to the Contractor substitution of property causes a decrease for the performance of any repair or replaceIn the cost of performance, on his own Inl ment for which the Government is respontlative), shall equitably adjust such con sible, and an equitable adjustment will be tractual provisions as may be affected by the made in any contractual provisions affected decrease, substitution, or withdrawal, in ac by such repair or replacement of Governcordance with the procedures provided for ment property made at the direction of the In the "Changes" clause of this contract. Government, in accordance with the pro

§ 1-7.303-7

Title 41-Public Contracts, Property Management

cedures provided for in the “Changes" clause of this contract. Any repau or replacement for which the Contractor is responsible under the provisions of this contract shall be accomplished by the Contractor at his own expense.

(8) Unless otherwise provided in this contract, the Contractor assumes the risk of, and shall be responsible for, any loss of or damage to Government property provided under this contract upon its delivery to him or upon passage of title thereto 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) The Government, and any persons designated by it, shall at all reasonable times have access to the premises wherein any Government property is located, for the purpose of inspecting the Government property.

(1) 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, delivery 1.o.b. origin, or dispose of the Government property, as may be directed or authorized by the Contracting Officer. The net proceeds of any such disposal shall be credited to the contract price or shall be paid in such other manner as the Contracting Officer may direct.

(1) Unless otherwise provided herein, the Government:

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

(2) Has no obligation to the Contractor with regard to restoration or rehabilitation of the Contractor's premises, neither In case of abandonment (paragraph (1) (1), above), disposition on completion of nced or of the contract (paragraph (1), above), nor otherwise, except for restoration or rehabilitation costs which are properly included in an equitable adjustment under paragraph (b), above.

(k) All communications issued pursuant to this clause shall be in writing.

(b) In negotiated fixed-price contracts for which the price is not based on (1) adequate price competition, (2) established catalog or market prices of commercial items sold in substantial quantities to the general public, or (3) prices set by law or regulations and (4) the price does not include any charges or reserve for insurance (including self insurance) covering damage to Government property, substitute the following paragraph (g) for paragraph (g) of the clause in § 1-7.303–7(a), above.

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

(1) Caused by any perll while the property is in transit off the Contractor's premises; or

(11) 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, hall; explosion; riot, rlot attending & 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 & body of water; nuclear reaction, nuclear radiation

or

radioactive contamination; hostile or warlike action, including action in hindering, combating, or defending against an actual, impending, or expected attack by any government or sovereign power (de jure or de facto), or by any authority using milltary, naval, or air forces; or by an agent of any such government, power, authority, or forces; or

(B) Other peril, of a type not listed above, if such other peril is customarily covered by Insurance (or by a reserve for self-insurance) in accordance with the normal practice of the Contractor, or the prevailing practice in the industry in which the Contractor is engaged with respect to similar property in the same general locale.

The perils as set forth in (1) and (11), above, are hereinafter called "excepted perils."

If the Contractor transfers Government property to the possession and control of a subcontractor, the transfer shall not affect the liability of the Contractor for loss or destruction of or damage to the property as set forth above. However, the Contractor shall require the subcontractor to assume the risk of, and be responsible for, any loss or destruction of or damage to the property while in the latter's possession or control, except to the extent that the subcontract, with the prior approval of the Contracting Officer, provides for the relief of the subcontractor from such liability. In the absence of such approval, the subcontract shall contain appropriate provisions requiring the return of all Government property in as good condition as when received, except for reasonable wear and tear or for the utilization of the property in accordance with the provisions of the prime contract.

(2) Notwithstanding (1), above, the Contractor shall be responsible for any loss or damage (a) to the extent specifically provided in the clause or clauses of this contract designated in the schedule, or (b) which results from:

360

(1) willful misconduct or lack of good ment property from further damage, sepfaith of any of the Contractor's managerial arate the damaged and undamaged Governpersonnel; or

ment property, put all the Government prop(11) A failure on the part of the Contrac erty in the best possible order, and furnish tor, due to willful misconduct or lack of good to the Contracting Officer a statement of: faith of the Contractor's managerial person (1) The lost, destroyed, and damaged Govnel, (aa) to maintain and administer the ernment property; program for maintenance, repair, protection, (11) The time and origin of the loss, deand preservation of the Government property struction, or damage; as required by paragraph (f) hereof, or (bb) (111) All known interests in commingled to establish, maintain, and administer a sys property of which the Government property tem for control of Government property as Is a part; and required by paragraph (d) of this clause.

(iv) The Insurance, if any, covering any Any fallure of the Contractor to act, as part of or interest in such commingled propprovided in this (B), shall be conclusively erty. presumed to be a failure resulting from will The Contractor shall be entitled to an ful misconduct, or lack of good faith on the equitable adjustment in the contract price part of one of the Contractor's managerial for the expenditures made by him in perpersonnel 1f the Contractor is notified by the forming his obligations under this subparaContracting Officer by registered or certified graph (4) (including charges made to the mail addressed to one of the Contractor's Contractor by the loss and salvage organimanagerial personnel, of the Government's zation, except any of such charges the paydisapproval, withdrawal of approval, or non ment of which the Government has, at its acceptance of the Contractor's program or option, assumed directly), in accordance with system. In such event, it shall be presumed the procedures provided for in the "Changes" that any loss of or damage to Government clause of this contract. property resulted from such fallure. The (5) with the approval of the Contracting Contractor shall be liable for such loss or Officer after loss or destruction of or damage damage unless he can establish by clear and to Government property, and subject to such convincing evidence that such loss or dam conditions and limitations as may be image did not result from his failure to main posed by the Contracting Officer, the Contain an approved program or system, or oc tractor may, in order to minimize the loss curred during such time as an approved to the Government or in order to permit reprogram or system for control of Government sumption of business or the like, sell for the property was maintained.

account of the Government any item of GovThe term "Contractor's managerial per ernment property which has been damaged sonnel" as used herein means the Contrac beyond practicable repair, or which is so tor's directors, officers, and any of his man commingled or combined with property of agers, superintendents, or other equivalent others, including the Contractor, that seprepresentatives who have supervision or di aration is impracticable. rection of:

(6) Except to the extent of any loss or (A) All or substantially all of the Con destruction of or damage to Government tractor's business;

property for which the Contractor is re(B) All or substantially all of the Contrac lieved of liability under the foregoing protor's operation at any one plant or separate visions of this clause, and except for realocation at which the contract is being per sonable wear and tear or depreciation, or formed; or

the utilization of the Government property (C) A separate and complete major indus in accordance with the provisions of this trial operation in connection with the per contract, the Contractor assumes the risk formance of this contract.

of, and shall be responsible for, any loss or (3) The Contractor represents that he is destruction of or damage to the Government not including in the price hereunder, and property, and such property (other than agrees that he will not hereafter include in that which is permitted to be sold) shall be any price to the Government, any charge or returned to the Government in as good conreserve for Insurance (including any sell dition as when received by the Contractor Insurance funds or reserve) covering loss in connection with this contract, or as reor destruction of or damage to the Govern paired under paragraph (1), above. ment property caused by any excepted peril. (7) In the event the contractor is re

(4) Upon the happening of loss or destruc imbursed or compensated for any loss or detion of or damage to any Government prop struction of or damage to the Government erty caused by an excepted peril, the Con property, caused by an excepted peril, he tractor shall notify the Contracting Officer shall equitably reimburse the Government. thereof, and shall communicate with the loss The Contractor shall do nothing to prejand salvage organization, if any, now or udice the Government's rights to recover hereafter designated by the Contracting Off against third parties for any such loss, decer, and with the assistance of the loss and struction, or damage, and, upon the request salvage organization so designated (unless of the Contracting Officer, shall at the Govthe Contracting Officer has directed that no ernment's expense furnish to the Government such organization be employed), shall take all reasonable assistance and cooperation all reasonable steps to protect the Govern (including the prosecution of suit and the

$ 1-7.303-7

Title 41-Public Contracts, Property Management

execution of instruments of assignment in erty described as Government-furnished favor of the Government) in obtaining re property in the Schedule or specifications, covery. In addition, where a subcontractor together with such related data and inforhas not been relieved from llability for any mation as the Contractor may request and loss or destruction of or damage to the Gov as may reasonably be required for the inernment property, the Contractor shall en tended use of such property (hereinafter reforce the liability of the subcontractor for ferred to as “Government-furnished propersuch loss or destruction of or damage to the ty"). The delivery or performance dates for Government property for the benefit of the the supplies or services to be furnished by Government.

the Contractor under this contract are based (c) The following short form clause

upon the expectation that Government-furmay be used when the Government is to

nished property suitable for use (except for

such property furnished "as is") will be defurnish to the contractor Government

livered to the Contractor at the times stated property having an acquisition cost of In the Schedule, or, if not so stated, in suf$25,000 or less :

cient time to enable the Contractor to meet GOVERNMENT-FURNISHED PROPERTY (SHORT

such delivery or performance dates. In the FORM)

event that Government-furnished property

is not delivered to the Contractor by such (a) The Government shall deliver to the time or times, the Contracting Officer shall, Contractor, for use only in connection with upon timely written request made by the this contract, the property described in the Contractor, make a determination of the schedule or specifications (hereinafter re delay, if any, occasioned by the Contractor ferred to as "Government-furnished prop thereby, and shall equitably adjust the deerty"), at the times and locations stated livery or performance dates or the contract therein. If the Government-furnished prop price, or both, and any other contractual proerty, suitable for its intended use, is not so vision affected by any such delay. Except for delivered to the Contractor, the Contracting Government-furnished property furnished Officer shall, upon timely written request "as is,” in the event that Government-furmade by the Contractor, and if the facts war nished property is received by the Contracrant such action, equitably adjust any al tor in & condition not suitable for its fected provision of this contract pursuant to

Intended use, the Contractor shall, upon rethe procedures of the "Changes" clause ceipt thereof, notify the Contracting Officer hereof.

of such fact and, as directed by the Con(b) Title to Government-furnished prop

tracting Officer, either (1) return such property shall remain in the Government. The

erty at the Government's expense or otherContractor shall maintain adequate prop

wise dispose of such property, or (2) effect erty control records of Government-fur

repairs or modifications. Upon completion of nished property in accordance with sound

(1) or (2), above, the Contracting Officer Industrial practice.

upon timely written request of the Con(c) Unless otherwise provided in this con

tractor shall equitably adjust the delivery tract, the Contractor, upon delivery to him

or performance dates or the contract price, of any Government-furnished property, as

or both, and any other contractual provisumes the risk of, and shall be responsible

sion affected by the return, disposition, refor, any loss thereof or damage thereto ex

patr, or modification. The foregoing provicept for reasonable wear and tear, and ex

sions for adjustment are exclusive and the cept to the extent that such property is con

Government shall not be llable to suit for sumed in the performance of this contract.

breach of contract by reason of any delay (d) The Contractor shall, upon comple

in delivery of Government-furnished proption of this contract, prepare for shipment,

erty or delivery of such property in a condellver 1.o.b, origin, or dispose of all Govern

dition not suitable for its intended use. ment-furnished property not consumed in

(b) (1) By notice in writing, the Conthe performance of this contract or not

tracting Officer (1) may decrease the proptheretofore delivered to the Government, as

erty furnished or to be furnished by the may be directed or authorized by the Con

Government under this contract, or (11) tracting Officer. The net proceeds of any

substitute other Government-owned propsuch disposal shall be credited to the con

erty for property to be furnished by the tract price or paid in such other manner as

Government, or to be acquired by the Conthe Contracting Officer may direct.

tractor for the Government, under this con

tract. The Contractor shall promptly take (d) Insert the following clause when such action as the Contracting Officer may the contract is without profit or fee and direct with respect to the removal, shipis with an educational or nonprofit ping, and disposal of property covered by Institution:

such notice. GOVERNMENT PROPERTY (FIXED-PRICE,

(2) In the event of any decrease in or

substitution of property pursuant to parNONPROFIT)

agraph (1), above, or any withdrawal of (a) The Government shall deliver to the authority to use property provided under Contractor, for use in connection with and any other contract or lease, which property under the terms of this contract, the prop the Government had agreed in the Schedule

362

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