1007.5305-9 1007.5306 Approval of contract. Walsh-Healey Act. Utilization of small business concerns. Utilization of concerns in labor surplus areas. Additional clauses. AUTHORITY: The provisions of this Part 1007 issued under sec. 8012, 70A Stat. 488; 10 U.S.C. 8012. Interpret or apply secs. 23012314, 70A Stat. 127-133; 10 U.S.C. 2301-2314. Subpart A-Clauses for Fixed-Price Supply Contracts SOURCE: The provisions of this Subpart A appear at 26 F.R. 12391, Dec. 27, 1961, except as otherwise noted. § 1007.103 Required clauses. [26 F.R. 12391, Dec. 27, 1961, as amended at F.R. 11592, Aug. 13, 1964] § 1007.103-2 Changes. If considered desirable by the contracting officer, the period of 30 days within which any claim for adjustment must be asserted may be increased to 60 days. MILITARY SECURITY REQUIREMENTS The Contractor agrees that to the extent this contract involves access to information classified "Confidential" including "Confidential-Modified Handling Authorized," or higher, he will apply the principles of his Security agreement (DD Form 441) for the purpose of safeguarding such classified information during his performance of this contract. NOTE: Existing contracts which do not contain security requirements, substantially according to the foregoing clause, will be amended to include the clause. § 1007.104-28 Quality control system. The clause in § 7.104-28 of this title is supplemented by § 1007.4013. The latter clause will be used according to the instructions pertaining thereto. § 1007.105 Additional clauses. See § 7.105 of this title. The following instructions pertain to the use of such clauses. § 1007.105-2 Approval of contract. Whenever the contract requires manual approval, other than by the contracting officer, prior to becoming effective, insert the clause set forth in § 7.105-2 of this title supplying the word "Secretary" in the blank space in that clause. § 1007.105-5 Liquidated damages. According to § 1.310 of this title and § 1001.310 of this chapter insert the provision prescribed by § 7.105-5 of this title. § 1007.105-7 Material inspection and receiving report. The clause in § 7.105-7 of this title will be included in all central procurement contracts which call for furnishing supplies to the Government. Service type contracts are exempt. See 1007.4061 for additional instructions. Price redetermination upon happening of specified contingency (Type X)-(1) Basic assumption: The Contractor represents the prices under this contract are on a fixed price basis compiled on the shooting schedule set forth in the approved cost estimated breakdown upon which this contract is awarded and further based on the following assumption (hereinafter called the basic assumption): (1) That no standby time will be required, which is beyond the control and without the fault or negligence of the Contractor, due to adverse weather conditions while on shooting location. (ii) That no standby time will be required by the Contractor due to the unavailability of Government personnel and equipment or other act by the Government which is beyond the control and without the fault or negligence of the Contractor. (2) In the event of the non-realization of the basic assumption, in whole or in part, and as a result the Contractor's shooting schedule is exceeded and there is an increased cost to the Contractor, the parties agree that an equitable adjustment shall be made in the contract price from the non-realization. It is expressly understood between the parties that the Government shall not pay for the cost of standby time incurred hereunder until the combined actual shooting time plus standby time incurred has exceeded the Contractor's shooting schedule; and that an adjustment shall be made for only that portion of increased time cost which (1) Exceeds the Contractor's approved shooting schedule, and (ii) was incurred as standby time hereunder. (3) Immediately upon the occurrence of standby time or upon completion of the location photography phase, whichever is later, the Contractor shall submit a claim in writing for standby time occasioned by the nonrealization of the basic assumption to the contracting officer through the Air Force Project Officer, consisting of three copies of an interim report as to the cause of delay, the number of personnel involved, the type of personnel involved and the time involved. The Air Force Project Officer shall attach a letter of transmittal to the Contractor's claim setting forth comments, recommendations and/or justification of the Contractor's claim. Then, within sixty (60) days after completion of the contract (or within such further period as the contracting officer may in writing allow before the date of final settlement of the contract), the Contractor shall submit to the Contracting Officer, through the Air Force Project Officer, three detailed copies compiling all claims which the contractor may then have for adjustment under this clause, setting forth the fact and extent of such nonrealization of the basic assumption together with three copies of a detailed cost breakdown consistent with the breakdown of estimated cost furnished by the Contractor in his Request for Proposal upon which this contract is based. The Air Force Project Officer shall attach a letter of transmission to the Contractor's final detailed claim setting forth comments and recommendations to the Contracting Officer. (4) In the event of the non-realization of the basic assumption resulting in standby time while on location, in determining an equitable adjustment of the contract price, the Government shall allow only the additional direct costs incurred plus a fair and reasonable allowance for General and Administrative Costs. (5) In the event of the non-realization of the basic assumption resulting in standby time in the Producer's Studio, in determining an equitable adjustment of the contract price, the Government shall allow only the additional direct costs incurred plus a fair and reasonable allowance for overhead. (6) The parties agree to negotiate in good faith concerning any claims under this article as to the amount and terms of any equitable adjustment which should be made. If the parties fail to agree whether an equitable adjustment is required under this clause, or upon the terms or amount of such adjustment, the dispute shall be disposed of as a question of fact in accordance with Clause hereof entitled "Disputes." (7) Nothing provided in this clause shall excuse the Contractor from proceeding with the contract in accordance with its terms and conditions. (8) Nothing provided in this clause is intended to alter, restrict or limit the terms of Clause 2-Changes-of the General Provisions or the authority of the Contracting Officer thereunder. (9) Warranty-The Contractor represents and warrants that there is not included in the fixed price hereunder any charge, allowance, or reserve for the possible non-realization, in whole or in part, of the basic assumption. (10) Any adjustment hereunder shall be evidenced by a Supplemental Agreement to this contract, between the parties. (11) The Contractor agrees not to incur any costs under this Clause which when added to all cost previously incurred under this contract will exceed the total allotted to the contract as set forth in Part I of the Schedule, as amended from time to time, except with the prior approval of the Contracting Officer. [26 F.R. 12391, Dec. 27, 1961, as amended at 27 F.R. 10213, Oct. 18, 1962] Subpart B-Clauses for Cost-Reimbursement Type Supply Contracts SOURCE: The provisions of this Subpart B appear at 28 F.R. 5571, June 6, 1963, except as otherwise noted. § 1007.200 Scope of subpart. This subpart sets forth clauses for use in cost-reimbursement supply contracts. § 1007.203 Required clauses. DD Form 748, General Provisions (Department of Defense Cost-Reimbursement Supply Contract), will be used as prescribed in § 16.204 of this title instead of printing or reproducing the clauses contained therein. Any directed or authorized changes in DD Form 748 will be set forth in the Alterations in Contract clause. Clauses used in any contract in addition to those contained in DD Forms 748 will be entitled "Additional General Provisions" and numbered consecutively. The following additional instructions pertain to specific sections of Subpart B, Part 7 of this title. [29 F.R. 5791, May 1, 1964] § 1007.203-2 Changes. If considered desirable by the contracting officer, the period of 30 days within which any claim for adjustment must be asserted may be increased to 60 days. § 1007.203-8 Subcontracts. See paragraph (e) of the clause in § 3.903-1 of this title, § 3.903-3(c) of this title and §§ 1003.903-1(e) and 1003.9033(c) of this subchapter. § 1007.203-23 Authorization and con sent. Insert the clause in § 9.102-1 of this title, except that if the contract calls for both supplies and experimental, developmental, or research work the clause in § 9.102-2 of this title may be inserted in lieu of the clause in § 9.102-1 of this title. § 1007.204 Clauses to be used when applicable. Clauses included in DD Form 748 which are inapplicable to a contract may be deleted according to § 1.705-1 of this title. [28 F.R. 5571, June 6, 1963, as amended at 29 F.R. 15258, Nov. 13, 1964] § 1007.204-10 Quality control system. See § 1007.104-28. § 1007.204-12 Military security require (a) On or before the thirtieth day of the month following the end of each calendar quarter until such time as the uninvoiced dollar amount of this contract is less than $100,000, the Contractor shall submit to the Contracting Officer, on DD Form 1097, dated November 1, 1959, or other authorized form calling for substantially the same information, furnished by the Contracting Officer, a report of the financial status of the contract, as of the end of such quarter. The Contracting Officer may extend the time for filing said report for a period not to exceed ten working days. (b) Notwithstanding the provisions of paragraph (a) hereof, if the contractor has reason to believe that the actual costs of performance of this contract may exceed the estimated costs contained herein, the contractor shall submit items one (1) through fourteen (14) of the report set forth in paragraph (a) above once each month, within ten (10) days following the close of the month being reported. The contractor shall |