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f this article. The wages of ontractor or any subcontractor 11 be computed on a basic day of eight hours per day is perlaborer and mechanic shall be of eight hours per day at not of pay. For each violation of shall be imposed upon the con

calendar day which such emhan eight hours upon said work cordance with this article, and for the use and benefit of the all be subject in all respects to es Code Title 40, sections 321, of labor and compensation for

contractor shall not employ any t hard labor.

D SPECIFICATIONS

lusive, as printed on the back of eleted and superseded by the fol

as used herein shall mean the

1 shall mean the United States of ederal Supply, Strategic and Critica

as uesd herein shall include any ry of the United States of America itive" shall mean any person author✓ other than the Contracting Officer. sed herein shall mean the official ing this contract in behalf of the de his duly appointed successor or

herein means the average price for e calendar week in which said lead at point of delivery as such price is gineering and Mining Journal, Metal ion by McGraw-Hill Publishing Comly supplement thereof, or as quoted y there should be during the time of successor should cease to carry such et by reason of discontinuing publicaice" shall be determined from the best n shall mean 2,000 pounds, each pound erein shall mean the American Society al Conditions of this contract has been ution of the contract and the following

vided in this contract, all questions of or the contract shall be decided by the hall be in the form of written findings grieved by such decision, he may, at his

m the date of mailing or otherwise furthe contractor,, appeal in writing to the uly authorized representative, whose decion the parties hereto : or

may have against the United States at law. r shall diligently proceed with performance

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15. Disputes.-Except as otherwise specifically provided in this contract all questions of fact involved in disputes arising under the contract shall be decided by the contracting officer, subject to written appeal by the contractor within thirty (30) days to the Secretary of the Treasury or his duly authorized representative, whose decision shall be final and conclusive upon the parties hereto. In the meantime the contractor shall diligently proceed with performance.

16. Domestic origin.—Unless otherwise specified by the offeror, it is understood and agreed that only such unmanufactured articles, materials, and supplies as have been mined or produced in the United States, and only such manufactured articles, materials, and supplies as have been manufactured in the United States substantially all from articles, materials, or supplies mined, produced or manufacturer, as the case may be, in the United States, shall be delivered pursuant to the contract.

17. Definitions.-(a) The term "Government" as used herein shall mean the United States of America. (b) The term "Secretary of the Treasury" as used herein shall include any Under or Assistant Secretary of the Treasury, and the term "his duly authorized representative" shall mean any person authorized to act for him other than the contracting officer. (c) The term "contracting officer" as used herein shall mean the official of the Bureau of Federal Supply executing this contract in behalf of the United States of America and shall include his duly appointed successor or his authorized representative.

(The following Conditions 18 through 22 shall not apply to any work or services performed under the contract outside the United States or in connection with the mining, producing, processing, manufacturing, or acquisition outside of the United States of any materials or supplies to be delivered under this contract.)

18. Offers of former Government property.-There is no law against selling back to the Government former Government surplus property, but the Bureau of Federal Supply wants to know if it is buying such surplus. Accordingly, in submission of the offer herein, the offeror warrants, to the best of his knowledge, information, and belief, that except as otherwise expressly stated in the offer, none of the items or their components covered by the offer have been or will be acquired either directly or indirectly from any activity or agency of the United States Government or from any Government-owned corporation. Branch of this warranty shall give the Government the right to terminate the right of the contractor to proceed with any or all further deliveries under the contract.

19. Patents.-The contractor shall hold and save the Government, its officers, agents, and employees harmless from liability of any kind, including costs and expenses on account of any patented or unpatented invention, article, device, or appliance manufactured or used in the performance of the contract, including use by the Government.

20. Antidiscrimination.-The contractor, in performing the work required by this contract, shall not discriminate against any employee or applicant for employment because of race, creed, color, or national origin. The contractor shall include in all subcontracts a provision imposing a like obligation on subcontractors.

21. Walsh-Healey Public Contracts Act.-The representations and stipulations pursuant to the Walsh-Healey Public Contracts Act (49 Stat. 2036, as amended, 41 U. S. C. 35-45) as set forth in Regulation No. 504, as amended, of the Secre tary of Labor under that Act, are hereby made a part of this contract unless the contract is for a definite amount not in excess of $10,000 or is not one for the manufacture or furnishing of materials, supplies, articles or equipment. (Note: The contractor's attention is directed to the possibility that wage determinations may have been made under the Walsh-Healy Public Contracts Act providing minimum wages for employees engaged in the manufacture for sale to the Government of the materials or supplies covered by this contract. Information in this connection as well as general requirements of the Act concerning overtime payment, child labor, safety and health provisions, etc. may be obtained from the Wage and Hour Public Contracts Division, Department of Labor, Washington 25, D. C.)

22. Eight-hour law; convict labor.-If the contract is for services, the following conditions apply; (a) No labor or mechanic doing any part of the work contemplated by this contract, in the employ of the contractor or any subcontractor contracting for any part of said work, shall be required or permitted to work more than eight hours in any one calendar day upon such work at the site thereof, except upon the condition that compensation is paid to such laborer or

mechanic in accordance with the provisions of this article. The wages of every laborer and mechanic employed by the contractor or any subcontractor engaged in the performance of this contract shall be computed on a basic day rate of eight hours per day and work in excess of eight hours per day is permitted only upon the condition that every such laborer and mechanic shall be compensated for all hours worked in excess of eight hours per day at not less than one and one-half times the basic rate of pay. For each violation of requirements of this article a penalty of $5.00 shall be imposed upon the contractor for each laborer or mechanic for every calendar day which such employee is required or permitted to labor more than eight hours upon said work without receiving compensation computed in accordance with this article, and all penalties thus imposed shall be withheld for the use and benefit of the Government: provided, that this stipulation shall be subject in all respects to the exceptions and provisions of United States Code Title 40, sections 321, 324, 325, 325 (a) and 326, relating to hours of labor and compensation for overtime.

(b) In the performance of this contract the contractor shall not employ any person undergoing sentence of imprisonment at hard labor.

SPECIAL TERMS, CONDITIONS AND SPECIFICATIONS

Clauses 2, 3, 7, 9, 12 and 15 through 22 inclusive, as printed on the back of Form TS-SCM 1-May 10, 1948, are hereby deleted and superseded by the following clauses:

1. Definitions.-a. The term "Contractor" as used herein shall mean the Compania Minera de Huehuetenango, S. A.

b. The term "Government" as used herein shall mean the United States of America, Treasury Department, Bureau of Federal Supply, Strategic and Critica Materials Branch.

c. The term "Secretary of the Treasury" as uesd herein shall include any Under or Assistant Secretary of the Treasury of the United States of America and the term "his duly authorized representative” shall mean any person authorized to act for the Secretary of the Treasury other than the Contracting Officer. d. The term "Contracting Officer" as used herein shall mean the official of the Bureau of Federal Supply executing this contract in behalf of the United States of America and shall include his duly appointed successor or his authorized representative.

e. The term "New York price" as used herein means the average price for lead at New York, N. Y., U. S. A., for the calendar week in which said lead (or lead bullion) is loaded (or shipped) at point of delivery as such price is reflected by quotations appearing in the Engineering and Mining Journal, Metal and Minerals Markets, a monthly publication by McGraw-Hill Publishing Company, Inc., New York, N. Y., or the weekly supplement thereof, or as quoted in the successor to such publication if any there should be during the time of this contract. If the said E & M J or its successor should cease to carry such quotations during the term of this contract by reason of discontinuing publication or otherwise, then said "New York price" shall be determined from the best information available in the industry.

f. The term "ton" wherever used herin shall mean 2,000 pounds, each pound of 16 ounces, avoirdupois.

g. The term "A. S. T. M." as used herein shall mean the American Society for Testing Materials.

2. Disputes.-Article 15 of the General Conditions of this contract has been deleted in its entirety prior to the execution of the contract and the following clause is substituted therefor:

Except as otherwise specifically provided in this contract, all questions of fact involved in disputes arising under the contract shall be decided by the Contracting Officer, whose decision shall be in the form of written findings of fact. Whenever a contractor is aggrieved by such decision, he may, at his election:

(1) Within thirty (30) days from the date of mailing or otherwise furnishing a copy of such Findings to the contractor,, appeal in writing to the Secretary of the Treasury, or his duly authorized representative, whose decision shall be final and conclusive upon the parties hereto : or

(2) Pursue any rights that he may have against the United States at law. In the meantime, the contractor shall diligently proceed with performance of the contract.

3. Source of supply of material.-a. Until such time as the contractor shall have his own smelter in operation in Guatemala the contractor shall have the right to deliver refined lead meeting the specifications of Common Desilverized Lead, Grade A, and conforming to the chemincal requirements of Sepcification B-29, of the A. S. T. M., latest revision which lead is to be refined in, and shipped from Tampico, Mexico.

b. When the contractor has his smelter in operation in Guatemala he shall furnish lead bullion which shall contain not less than 98 percent lead and not more than 2 percent silver and impurities, of which components bismuth shall not be present in excess of 0.15 percent, which lead shall be refined by The American Metal Company, Limited, to conform to the requirements of the above mentioned Specification, in accordance with complementary contract SCM-TS12798 entered into between the said The American Metal Company, Limited, and the Government.

c. Notwithstanding thet stipulations of the two preceding paragraphs of this special condition 3, the contractor may, at his option, deliver to the Government at New York, N. Y., common desilverized lead, Grade A, conforming to the chemical requirements of Specifications B-29 of the American Society for Testing Materials, latest revision, which lead shall also be subject to the same terms and conditions regarding pricing, sampling and analyzing as other lead shipped from Tampico, Mexico, and credited to the total obligation of the contractor under this contract.

4. Quantity.-a. The quantity of lead to be furnished shall be a minimum and a maximum of 19,500,000 pounds (9,750 tons).

b. However, the Government shall have the election to buy and the contractor shall have the election to sell to the Government up to 36,000 tons of lead upon the same terms and conditions as are herein set forth, it being understood that the Government is not bound to buy such lead except at its option and the contractor is not bound to sell such lead except at his option, provided that such options shall be acted upon by July 31, 1949.

5. Quality. In addition to the chemical requirements referred to above, the physical requirements of the lead to be furnished under this contract shall conform to the following: All material shall be in pig form. Pigs may be of any size and shape usual with the producer, but all pigs in any given lot shall be of the same nominal size and shape. Pigs shall have clean surfaces, free from dirt, slag, or foreign material.

6. Price.-a. The unit price of the lead shipped from Tampico, Mexico, shall be the New York price as of the date of delivery at the point of delivery herein provided, less $0.00435 a pound, subject to escalation with $0.17565 a pound as the "floor" and $0.20565 a pound as the “ceiling”.

b. The unit price of the lead refined by The American Metal Company, Limited, shall be the New York price as of the date of delivery at the point of delivery herein provided, less $0.00658 a pound, and also less the actual costs of assay of the lead bullion, lighterage, stevedoring, weighing, refining and penalties incurred by the Government in connection with the refining, subject to escalation with $0.17342 a pound as the "floor" and $0.20342 a pound as the "ceiling". There shall also be deducted from the price to be paid, the transportation costs of the silver content in the lead bullion when same has been determined.

c. In the event such unit price shall fall below $0.17565 or $0.17342 or exceed $0.20565 or $0.20342 per pound, delivery shall nevertheless continue under the contract, but payment shall be at said floor or ceiling price, as the case may be. 7. Delivery.-a. The lead shipped from Tampico, Mexico, by the contractor hereunder shall be consigned to the contractor or contractor's order at New York, N. Y. Immediately upon departure of the vessel from Mexican territorial waters the bill of lading shall be endorsed and transferred to the Government. All costs of handling, transportation and delivery f. o. b. cargo vessel shall be borne by the contractor.

b. Delivery of the lead to be refined by The American Metal Company, Limited, shall be made f. o. b. cargo vessels at Puerto Barrios, Guatemala. All costs of handling, transportation and delivering f. o. b. vessel at the foreign port shall be for the contractor's account. The contractor shall without expense to the Government obtain clean on-board ocean bills of lading designating the Government as consignee, together with any other documents and clearance papers necessary to transport said lead and shall deliver such documents to the Government or its agent in accordance with Government instructions. The ocean bills of lading shall be signed by the Captain or Master of the vessel or his duly authorized representative.

c. In the event of an emergency, or if for any reason the Government deems it inadvisable to ship by cargo vessel the contractor shall deliver the lead f. o. b. railway cars at San Felipe, Guatemala, C. A., on the specific instructions of the Government, in which event such delivery shall constitute full compliance with contractor's obligation for delivery. Costs of handling, transportation, and delivery f. o. b. railway cars shall be for contractor's account. The railway cars used shall be clean and sound.

8. Insurance.-By direction of the Government, no insurance is desired or required beyond loading into ships or on rail cars at point of delivery.

9. Schedule of deliveries.-a. During the five-year term of the contract, the contractor shall deliver not less than the minimum nor more than the maximum tonnage (averaged over each annual period) indicated below:

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b. However, in the event of the exercise of the option referred to in Article 4 “Quantity” hereof, the schedule of deliveries shall be revised as follows:

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10. Permissible deliveries.—a. As to lead bullion if, during any annual period the contractor shall fail to deliver the maximum tons above provided for such annual period, the contractor shall be permitted to make up such deficiency at any time during the next succeeding annual period, but in no event after the expiration of the 5 year term of this contract. It is further agreed that the contractor may deliver at delivery point above specified at any time and from time to time during the term hereof any quantity in excess of the maximum tonnage for the particular annual period, which excess deliveries shall be credited first against deficiency, if any, in maximum tonnage deliveries for preceding annual period, and second against total maximum deliveries for the next succeeding annual periods in order; provided, however, that in no event shall the contractor be permitted to deliver a total of more than the maximum quantity, as described above, under the contract except by amendment to the contract.

b. In the event the Contractor shall fail to deliver the maximum tonnage provided for during any annual period and shall fail to make up any such deficiency within the next annual period, then, at the expiration of said next annual period the Government, at its option, may reduce the total maximum tonnage which the Contractor may deliver under the terms of the contract by the amount of such deficiency not made up during the said next annual period. 11. Transfer of title.-a. Title to the Common Desilverized Lead, Grade A, shall pass to the Government f. o. b. cargo vessels immediately after clearing Mexican territorial waters outside the harbor of Tampico, Mexico, and prior to entry into the United States of America.

b. Title to the lead bullion delivered in pig form shall pass to the Government f. o. b. cargo vessel or railway cars, as the case may be, at point of delivery above specified.

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