nated (unless the Contracting Officer has designated that no such organization be employed), shall take all reasonable steps to protect the Government property from further damage, separate the damaged and undamaged Government property, put all the Government property in the best possible order, and furnish to the Contracting Officer a statement of:

(1) The lost, destroyed, and damaged Government property;

(11) The time and origin of the loss, destruction, or damage;

(111) All known interests in commingled property of which the Government property is a part; and

(iv) The insurance, if any, covering any part of or interest in such commingled property. The Contractor shall make repairs and renovations of the damaged Government property or take such other action as the Contracting Officer directs.

(4) In the event the Contractor is indemnified, reimbursed, or otherwise compensated for any loss or destruction of or damage to the Government property, he shall use the proceeds to repair, renovate or replace the Government property involved, or shali credit such proceeds against the cost of the work covered by the contract, or shall otherwise reimburse the Government, as directed by the Contracting Officer. The Contractor shall do nothing to prejudice the Government's right to recover against third parties for any such loss, destruction, or damage, and upon the request of the Contracting Officer, shall, at the Government's expense, furnish to the Government all reasonable assistance and cooperation (including assistance in the prosecution of suit and the execution of instruments of assignment in favor of the Government) in obtaining recovery.

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

(1) Upon completion or expiration of this contract, or at such earlier dates as may be fixed by the Contracting Officer, any Government property which has not been consumed in the performance of this contract, or which has not been disposed of as provided for elsewhere in this clause, or for which the Contractor has not otherwise been relieved of responsibility, shall be disposed of in the same manner, and subject to the same procedures, as is provided in paragraph (g) of the clause of this contract entitled "Termination for the Convenience of the Government" Inventory.

with respect to termination

The proceeds of any such disposition shall be applied in reduction of any payments to

be made by the Government to the Contractor under this contract, or shall otherwise be credited to the cost of the work covered by this contract, or shall be paid In such other manner as the Contracting Officer may direct. Pending final disposition of such property, the Contractor agrees to take such action as may be necessary, or as the Contracting Officer may direct, for the protection and preservation thereof.

(1) If the Contractor determines any Government property to be in excess of his needs under this contract, such Government property shall be disposed of in the same manner as provided by paragraph (1) above, except that the Government may abandon any Government property in place and thereupon all obligations of the Government regarding such abandoned property shall cease. Unless otherwise provided herein, the Government has no obligation to the Contractor with regard to restoration or rehabilitation of the Contractor's premises, neither in case of abandonment, disposition pursuant to paragraph (1) above, nor otherwise, except for restoration or rehabilitation costs caused by removal of Government property pursuant to paragraph (b) above.

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

(c) Paragraph (d) of the clause set forth in § 1-7.402-25 (b) may be modified to provide that the Government will maintain the property records of Government property furnished to the contractor.

provided that they give the contracting agency, as a minimum, substantially the same rights as provided by the clause set forth in § 1-3.814-2(a).

§ 1-7.402-31

Price reduction for defective cost or pricing data. Insert the clause set forth in § 1-3.8141(a) under the conditions prescribed therein.

§ 1-7.402-32 Subcontractor cost and pricing data.

Insert the appropriate clause set forth in § 1-3.814-3 under the conditions prescribed therein.

§ 1-7.402-33 Utilization of minority business enterprises.

Insert the clause set forth in § 1-1.1310-2(a) under the conditions prescribed therein.

§ 1-7.402-34 Listing of employment openings.

Insert the clause set forth in § 112.1102-2 under the conditions prescribed therein.

§ 1-7.402-35 Payment of interest on contractors' claims.

Insert the clause set forth in § 1-1.322 (b) under the conditions prescribed therein.

§ 1-7.402-36 Employment of the handicapped.

Insert the clause set forth in § 112.1304-1 under the conditions contained in the section.

Insert the clause prescribed by § 11.2302-2 under the conditions set forth therein.

[40 FR 36341, Aug. 20, 1975]

§ 1-7.403 Clauses to be used when ap plicable.

§ 1-7.403-1 Clauses for cost-reimbursement type research and development contracts involving construction.

(a) Insert the clauses set forth in § 118.703-1 in cost-reimbursement type research and development contracts under the conditions prescribed in § 1-18.701-1. The clauses set forth in § 1-18.703-1 are listed for convenience as follows: Davis-Bacon Act (40 U.S.C. 276a-276a-7). Contract Work Hours and Safety Standards Act-Overtime Compensation (40 U.S.C. 327-333).

Insert the clause set forth in § 1-7.30344 under the conditions prescribed therein.

§§ 1-7.403-40-1-7.403-49 [Reserved] § 1-7.403-50 Cost accounting standards. (a) Insert the three notices for solicitations set forth in § 1-3.1203 (a) (3), (h) (2), and (i) (2) in negotiated solicitations under the conditions contained in Subpart 1-3.12.

(b) Insert the two clauses set forth in §§ 1-3.1204-1 and 1-3.1204-2 in negotiated contracts under the conditions contained in Subpart 1-3.12.

[40 FR 60030, Dec. 31, 1975]

Insert the clause

§ 1-19.108-2 under the conditions set forth therein.

[41 FR 52457, Nov. 30, 1976] § 1-7.404

Additional clauses.

Date of incurrence of costs.

Insert the clause set forth in § 1-7.204-3.

§ 1-7.404-4 Notice regarding late delivery.

Insert the clause set forth in § 1-7.204-4.

(a) The Contracting Officer may at any time, by a written order, 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:

(1) Drawings, designs, or specifications; (11) Method of shipment or packing; and of (111) Place inspection, delivery, or acceptance.

(b) If any such change causes an increase or decrease in the estimated cost of, or the time required for the performance of any part of the work under this contract, whether changed or not changed by any such order, or otherwise affects any other provision of

this contract, an equitable adjustment shall be made:

(1) In the estimated cost or delivery schedule, or both;

(11) In the amount of any fixed fee to be paid to the Contractor; and

(111) In such other provisions of the contract as may be affected, and the contract shall be modified in writing accordingly. Any claim by the Contractor for adjustment under this clause must be asserted within thirty (30) days from the date of receipt by the Contractor of the notification of change; Provided, however, That the Contracting Officer, 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 dispute concerning a question of fact within the meaning of the clause of this contract entitled "Disputes." However, except as provided in paragraph (c) below, nothing in this clause shall excuse the Contractor from proceeding with the contract as changed.

(c) Notwithstanding the provisions of paragraphs (a) and (b) above, the estimated cost of this contract and, if this contract is incrementally funded, the funds allotted for the performance thereof, shall not be increased or deemed to be increased except by specific written modification of the contract indicating the new contract estimated cost and, if this contract is incrementally funded, the new amount allotted to the contract. Until such modification is made, the Contractor shall not be obligated to continue performance or incur costs beyond the point established in the clause of this contract entitled "Limitation of Cost" or "Limitation of Funds."

In the foregoing clause, the period of "thirty (30) days" within which any claim for adjustment must be asserted, may be varied in accordance with agency procedures. § 1-7.404-6 Key personnel.

Insert the clause set forth in § 1-7.304-6.

§ 1-7.404-7 Disposition of material. Insert the clause set forth in § 1-7.304-8.

under the contract in a place or under conditions where the contractor is not immune from tort liability), the following may be added to the clause set forth in § 1-7.204-5:

(e) Notwithstanding paragraphs (a) and (c) of this clause, (1) the Government does not assume any liability to third persons, nor will the Government reimburse the Contractor for his liability to third persons, with respect to loss due to death, bodily injury, or damage to property resulting in any way from the performance of this contract or any subcontract hereunder, and (2) the Contractor need not procure or maintain insurance coverage as provided in paragraph (a) of this clause; Provided, the Contractor may obtain any insurance coverage he deems necessary subject to approval by the Contracting Officer as to form, amount, and duration, in which event the Contractor shall be reimbursed (1) for the cost of such insurance and (ii) to the extent provided in paragraph (c) above, for liabilities to third persons for which the Contractor has obtained insurance coverage as provided in this paragraph, but for which such coverage is insufficient in amount.

(b) If the contractor claims total immunity from tort liability as a State agency or as a charitable institution, the following clause may be used in lieu of the clause in § 1-7.204-5.

LIABILITY TO THIRD PERSONS

(a) The Government does not assume any liability to third persons, nor will the Government reimburse the Contractor for his liability to third persons, with respect to loss due to death, bodily injury, or damage to property resulting in any way from the performance of this contract or any subcontract hereunder.

(b) The Contractor shall give the Government or its representatives immediate notice of any suit or action filed, or prompt notice of any claim made, against the Contractor arising out of the performance of this contract, the cost and expense of which may be reimbursable to the Contractor under the provisions of this contract. The Contractor shall furnish immediately to the Government copies of all pertinent papers received by the Contractor. The Contractor shall, if required by the Government, authorize representatives of the Government to settle or defend any such claim and to represent the Contractor in or take charge of any litigation in connection therewith. The Contractor may, at his own expense, be associated with the representatives of the Government in the settlement or defense of any such claim or litigation.

[40 FR 17566, Apr. 21, 1975. Redesignated and amended at 41 FR 22817, June 7, 1976]

Subpart 1-7.5 [Reserved]
Subpart 1-7.6-Fixed-Price

Construction Contracts

SOURCE: 41 FR 19313, May 12, 1976, unless otherwise noted.

§ 1-7.600 Scope of subpart.

This subpart sets forth contract clauses and notices for solicitations for use in fixed-price construction contracts.

§ 1-7.601 General.

The clauses and notices prescribed in this Subpart 1-7.6 shall be used in all advertised or negotiated fixed-price construction contracts, in accordance with the provisions of this subpart, except for contracts:

(a) Entered into on Standard Form 19, Invitation, Bid, and Award (Construction, Alteration or Repair) (see § 1-16.402);

(b) For construction, alteration, or repair of vessels; and

(c) For construction, alteration or repair work in foreign countries.

§ 1-7.602 Required clauses.

Subject to the exceptions in § 1-7.601, the following clauses shall be inserted in all advertised and negotiated fixed-price construction contracts. For convenience many of the required clauses have been included on standard forms which are prescribed for use in construction contracts by Subpart 1-16.4 of this chapter. § 1-7.602-1 Definitions.

DEFINITIONS

(a) The term "head of the agency" or "Secretary" as used herein means the Secretary, the Under Secretary, any Assistant Secretary, or any other head or assistant head of the executive or military department or other Federal agency; and the term "his duly authorized representative" means any person or persons or board (other than the Contracting Officer) authorized to act for the head of the agency or the Secretary.

(b) The term "Contracting Officer" as used herein means the person executing this contract on behalf of the Government and includes a duly appointed successor or authorized representative.

Additional definitions may be included provided they are not inconsistent with the clause or provisions of these regulations.

§ 1-7.602-2 Specifications and drawings. SPECIFICATIONS AND DRAWINGS

The Contractor shall keep on the work a copy of the drawings and specifications and shall at all times give the Contracting Officer access thereto. Anything mentioned in the specifications and not shown on the drawings, or shown on the drawings and not mentioned in the specifications, shall be of like effect as if shown or mentioned in both. In case of difference between drawings and specifications, the specifications shall govern. In case of discrepancy either in the figures, in the drawings, or in the specifications, the matter shall be promptly submitted to the Contracting Officer, who shall promptly make a determination in writing. Any adjustment by the Contractor without such a determination shall be at his own risk and expense. The Contracting Officer shall furnish from time to time such detail drawings and other information as he may consider necessary, unless otherwise provided.

(a) The Contracting Officer may, at any time, without notice to the sureties, by written order designated or indicated to be a change order, make any change in the work within the general scope of the contract, including but not limited to, changes:

(1) In the specifications (including drawings and designs);

(2) In the method or manner of performance of the work;

(3) In the Government-furnished facilities, equipment, materials, services, or site;

or

(4) Directing acceleration in the performance of the work.

(b) Any other written order or an oral order (which terms as used in this paragraph (b) shall include direction, instruction, interpretation, or determination) from the Contracting Officer, which causes any such change, shall be treated as a change order under this clause, provided that the Contractor gives the Contracting Officer written notice stating the date, circumstances, and source of the order and that the Contractor regards the order as a change order.

(c) Except as herein provided, no order, statement, or conduct of the Contracting Officer shall be treated as a change under this cause or entitle the Contractor to an equitable adjustment hereunder.

(d) If any change under this clause causes an increase or decrease in the Contractor's cost of, or the time required for, the performance of any part of the work under this contract, whether or not changed by any order, an equitable adjustment shall be made and the contract modified in writing accordingly: Provided, however, That except for claims based on defective specifica