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

[41 FR 52457, Nov. 30, 1976]

§ 1-7.603-20 Audit and records.

Insert the clause set forth in § 1-3.8142 under the conditions described therein. § 1-7.603-21 Subcontractor cost and pricing data.

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

§ 1-7.603-22 Contracts with the Small Business Administration (Special 8 (a) Contract).

(a) Insert the clause set forth in § 1-1.713-4(g) (1) in contracts with the Small Business Administration awarded pursuant to section 8(a) of the Small Business Act (15 U.S.C. 637 (a)).

(b) Insert the clause set forth in § 11.713-4 (h) in subcontracts which will be executed by the Small Business Administration with its subcontractors.

§ 1-7.603-24 Minority business enterprises subcontracting program.

Insert the clause set forth in § 11.1310-2(b) under the conditions described therein.

§ 1-7.603-25 Late bids and modifications or withdrawals.

(a) Insert the provision set forth in § 1-2.201 (a) (31) in all formally advertised solicitations.

(b) The provision set forth in § 13.802-1(a) shall be used in all negotiated solicitations except as provided by § 13.802-2(a). (See also § 1-18.306.)

(c) The provision set forth in § 13.802-2(b) may be used in negotiated solicitations under the conditions prescribed in § 1-3.802-2(a). (See also § 118.306.)

§ 1-7.603-26 Preference for U.S. Flag Air Carriers.

Insert the clause set forth in § 1-1.3232 under the conditions described therein. § 1-7.603-27 Cost accounting stand

ards.

coastal). This subpart does not apply to the procurement of transportation services by domestic or international air carriers or by international ocean carriers, and it does not apply to the procurement of transportation services which are contracted for by bill of lading or when negotiating for reduced rates under the authority of sections 22, 217(b), 306(c), and 405(c) of the Interstate Commerce Act, 49 U.S.C. 22, 317(b), 906(c), and 1005(c).

§ 1-7.701 Solicitation of offers for transportation services.

§ 1-7.701-1 Preparation of solicitations.

(a) When procurement of transportation services is by formal advertising, the solicitation shall be prepared in accordance with the requirements of Part 1-2 to the extent applicable and not otherwise inconsistent with the requirements set forth in this Subpart 1-7.7.

(b) When procurement of transportation services is by negotiation, the solicitation shall be prepared in accordance with Part 1-3 to the extent applicable and not otherwise inconsistent with the requirements set forth in this Subpart 1-7.7. In addition, the solicitation shall include the requirements of § 1-2.201 to the extent applicable and not otherwise inconsistent with Part 1-3 and this Subpart 1-7.7.

other authorities issued by State and local agencies in such instances shall be secured and maintained at his expense.

§ 1-7.702 Solicitation instructions and conditions for transportation con

tracts.

The solicitation instructions and conditions set forth in Standard Form 33A shall be modified as follows:

(a) When the solicitation for transportation services is limited to local storage, drayage, and/or hauling services, the following paragraph, completed by the contracting officer, shall be substituted for paragraph 13, Contractor's Invoices:

CONTRACTOR'S INVOICES

The Contractor shall submit itemized and certified invoices (Contracting Officer to insert time period) direct to the Government agency ordering services under this contract or as otherwise instructed by that agency. Each invoice shall be annotated with the contract number.

(b) When the solicitation for transportation services is for line-haul services and may or may not include local storage, drayage, and/or hauling services in connection with such line-haul services, the following paragraph, completed by the contracting officer, shall be substituted for paragraph 13, Contractor's Invoices:

CONTRACTOR'S INVOICES

The Contractor shall submit invoices, Standard Form 1118, Public Voucher for Transportation Charges, in accordance with Instruction 7 on the reverse of the original Government bill of lading. Invoices should be submitted to the "Charges to be billed to" address shown on the face of the Government bill of lading.

(c) The following paragraphs shall be included as additional solicitation instructions and conditions: (1) Financial statement.

FINANCIAL STATEMENT

The offeror shall, upon request, promptly furnish the Government with a current certified statement of its financial condition and such data as the Government may request with respect to its operations, in order to determine its ability to perform under the contract and its financial responsibility. Failure to comply with such request will be a factor in considering possible rejection of the offer on responsibility grounds.

(2) Familiarization with conditions.

FAMILIARIZATION WITH CONDITIONS

The offeror shall acquaint itself with all available information regarding difficulties

which may be encountered and the conditions, including safety precautions, under which the work must be accomplished under the contract. The offeror will not be relieved from assuming all responsibility for properly estimating the difficulties and the cost of performing the services required herein because of its failure to investigate the conditions or to become acquainted with all information concerning the services to be performed.

(3) Cost accounting standards. 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.

[38 FR 991, Jan. 8. 1973, as amended at 39 FR 43074, Dec. 10, 1974; 40 FR 60030, Dec. 31, 1975]

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 the contract in any one or more of the following: (a) Specifications, (b) work or services, (c) the place of origin, (d) the place of delivery, (e) tonnage to be shipped, or (f) amount of Governmentfurnished propery. If any such change causes an increase or decrease in the cost of, or in the time required for, performance of any part of the work or services under this contract, whether changed or not changed by any such order, an equitable adjustment shall be made in the contract price, or time of performance, or both, and the contract shall be modified in writing accordingly. Any claim by the Contractor for adjustment under this clause must be asserted within 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, nothing in this clause shall excuse the Contractor from pro'eeding with the contract as changed.

The Contractor shall be paid, upon the submission of proper invoices or vouchers, the amount due for services rendered and accepted, less deductions, if any, as herein provided. Submission of invoices should be in accordance with the requirements set forth in paragraph 13, Standard Form 33A, as modified herein.

§ 1-7.703-6 Assignment of claims.

Insert the clause set forth in § 1-30.703 under the conditions contained therein. § 1-7.703-7 Examination of records by Comptroller General.

Insert the clause set forth in § 1-7.103-3 under the conditions contained therein.

[40 FR 44140, Sept. 25, 1975]

(a) The Government may, subject to the provisions of paragraph (c), below, by written notice of default to the Contractor, terminate the whole or any part of this contract in any one of the following circumstances:

(1) If the Contractor fails to pick up the commodities or to perform the services, including delivery services, within the time specified herein or any extension thereof; or

(2) If the Contractor fails to perform any of the other provisions of this contract, or so fails to make progress as to endanger performance of this contract in accordance with its terms, and in either of these two circumstances does not cure such failure within a period of (time to be inserted), or such longer period as the Contracting Officer may authorize in writing, after receipt of notice from the Contracting Officer specifying such failure.

(b) In the event the Government terminates this contract in whole or in part as provided in paragraph (a) of this clause, the Government may procure, upon such

terms and in such manner as the Contracting Officer may deem appropriate, services similar to those so terminated, and the Contractor shall be liable to the Government for any excess costs of such similar services: Provided, however, That the Contractor shall continue the performance of this contract to the extent not terminated under the provisions of this clause.

(c) Except with respect to defaults of subcontractors, the Contractor shall not be liable for any excess costs if the failure to perform the contract arises out of causes beyond the control and without the fault or negligence of the Contractor. Such causes may include, but are not restricted to, acts of God or of the public enemy, acts of the Government in either its sovereign or contractual capacity, fires, floods, epidemics, quarantine restrictions, strikes, freight embargoes, and unusually severe weather; but in every case the failure to perform must be beyond the control and without the fault or negligence of the Contractor. If the failure to perform is caused by the default of a subcontractor, and if such default arises out of causes beyond the control of both the Contractor and subcontractor, and without the fault or negligence of either of them, the Contractor shall not be liable for any excess costs for failure to perform, unless the services to be furnished by the subcontractor were obtainable from other sources in sufficient time to permit the Contractor to meet the required delivery schedule.

(d) If, after notice of termination of this contract under the provisions of this clause, it is determined for any reason that the Contractor was not in default under the provisions of this clause, or that the default was excusable under the provisions of this clause, the rights and obligations of the parties shall, if the contract contains a clause providing for termination for convenience of the Government, be the same as if the notice of termination had been issued pursuant to such clause. If, after notice of termination of this contract under the provisions of this clause, it is determined for any reason that the Contractor was not in default under the provisions of this clause, and if this contract does not contain a clause providing for termination for convenience of the Government, the contract shall be equitably adjusted to compensate for such termination and the contract modified accordingly; failure to agree to any such adjustment shall be a dispute concerning a question of fact within the meaning of the clause of this contract entitled "Disputes."

(e) In case of termination while the Contractor has the Government goods covered by this contract in its possession, the Contractor shall surrender the goods to the Government or its agent on demand.

(f) The rights and remedies of the Government provided in this clause shall not be exclusive and are in addition to any other rights and remedies provided by law or under this contract.

in accordance with the conditions contained in those sections.

§ 1-7.703-19

Termination for convenience of the Government. Insert either the clause set forth in § 1-8.705-1 under the conditions prescribed in § 1-8.700-2(a) (2).

§ 1-7.703-20 Moving contracts for the relocation of a Federal office.

To insure that a prospective contractor is properly authorized and competent to perform a moving contract involving the relocation of a Federal office, whether a move of this type takes place between States including the District of Columbia (1.e., an interstate move), or wholly within the borders of one State or the District of Columbia (1.e., an intrastate move), the following provisions shall be included in each such invitation and in the resulting contract:

PERFORMANCE CAPABILITY

(a) If the move specified herein is to be performed by the Contractor as a carrier within the borders of more than one State, including the District of Columbia (1.e., an interstate move), the Contractor shall have obtained and hold appropriate and current operating authority from the Interstate Commerce Commission.

(b) If the move specified herein is to be performed by the Contractor as a carrier wholly within the borders of one State or the District of Columbia (1.e., an intrastate move), the Contractor shall, when required by the State or the District of Columbia in which the move is to take place, have obtained and hold appropriate and current operating authority from such jurisdiction, In the form of a certificate, permit, or equivalent license to operate, or if no such authority to operate is required by the State or the District of Columbia in which the move is to take place, then the Contractor as carrier shall maintain facilities, equipment, and a business address within the jurisdiction in which the move is to take place: Provided, That if the move is to originate and/or terminate within an area of one State, or the District of Columbia, which comprises a part of a recognized Commercial Zone (see 49 CFR Part 1048), whose boundaries encompass portions of more than one State or the District of Columbia, it shall be sufficient if the Contractor as carrier maintains facilities, equipment, and a business address within the Commercial Zone and holds appropriate operating authority, if required, from the Jurisdiction within which he maintains such facilities, equipment, and business address.

(c) If the move specified herein will not be performed by the Contractor as carrier it must be performed for the Contractor by a carrier operating under a subcontract with the Contractor. In such instance, the Con

tractor shall not be subject to the requirements of paragraphs (a) and (b), above, but it shall be the responsibility of the Contractor to require and insure that the subcontractor carrier complies with such requirements in every respect.

(d) There shall be compliance with the applicable requirements of this clause at least 14 days before the date on which performance of the contract shall commence under the terms and conditions herein specified: Except that, if the period from the date of award of the contract to the date that performance shall commence is less than 28 days, the Contractor need only comply with the applicable requirements of this clause midway between the time of award and the time of commencement of performance.