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CONTRACT CLAUSES

all of such meters in the presence of Government representatives. The cost of such additional tests shall be borne by the Government if the percentage of errors is found to be not more than two (2) percent slow or fast. No meter shall be placed in service or allowed to remain in service which has an error in registration in excess of two (2) percent under normal operating conditions.

(c) Change in Volume or Character. Reasonable notice shall, so far as possible, be given by the Contracting Officer to the Contractor respecting any material changes proposed in the volume or characteristics of the utility service required at each location. (d) Continuity of Service and Consumption.

(i) The Contractor shall use reasonable diligence to provide a regular and un

interrupted supply of service at the service location, but shall not be liable for damages, breach of contract or otherwise to the Government for failure, suspension, diminution, or other variations of service occasioned by or in consequence of any cause beyond the control of the Contractor, including but not limited to acts of God or of the public enemy, fires, floods, earthquakes or other catastrophes, strikes, or failure or breakdown of transmission or other facilities; provided, that when any such failure, suspension, diminution, or variation of service shall aggregate more than ten (10) hours during any billing period hereunder, an equitable adjustment shall be made in the monthly rates specified in this contract (including the minimum monthly

charge). (ii) In the event the Government is unable to operate the service location in

whole or in part for any cause beyond its control, including but not limited to acts of God or of the public enemy, fires, floods, earthquakes, or other catastrophes, or strikes, an equitable adjustment shall be made in the monthly rates specified in this contract (including the minimum monthly charge) if the period during which the Government is unable to operate such service location in whole or in part shall exceed fifteen (15) days during any billing

period hereunder. Minor changes may be made in the above clause when insisted upon by the contractor to conform with established procedure or with procedures contained in the contractor's published rates filed with a regulatory agency. The following types of changes, when made for this purpose, are not considered within the intent of 4.5006(d) relating to contracts requiring NASA Headquarters approval.

(a) Measurement of Service.

(1) The words "billed conjunctively" in the second sentence of paragraph (a) (i) refer to the combination of similar quantities measured by two or more meters into a single quantity for the purpose of billing as if the bill were prepared for a single meter. This sentence may be deleted, or the word "separately" may be inserted in lieu of the word “conjunctively,” to conform to the contractor's regulated practice and/or when the schedule under which bills are computed is such that billing separately will be more economical than billing conjunctively.

(2) In paragraph (a) (ii), the periodic intervals prescribed between meter readings may be changed to conform to the contractor's regulated practice. (b) Meter Test.

(1) The first sentence of paragraph (b), requiring testing at intervals not exceeding one year, may be changed to provide for meter tests in accordance with the Contractor's regulated practice.

(2) In the third sentence of paragraph (b), the percentage error (shown as 2 percent) may be changed to comply with the contractor's regulated practice. (c) Continuity of Service and Consumption.

(1) In paragraph (d) (i), he adjustment proviso may be deleted or changed, if necessary, to conform with the provisions of the contractor's field rate schedules. This

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CLAUSES FOR NEGOTIATED UTILITY SERVICE CONTRACTS paragraph may be ended after the word "facilities” and before the word "provided," or the period “ten hours” may be changed.

(2) Paragraph (d) (ii) may be deleted or changed, if the contractor's filed rates contain a provision requiring a continuation of demand, or similar charges, on a readyto-serve basis during a period that the Government is unable to operate the service location for any cause beyond its control. 7.5002 Clauses Required To Be Used When Applicable.

7.5002-1 Federal, State, and Local Taxes. In accordance with the requirements of 11.401-2, insert the clause set forth therein.

7.5002–2 Contract Work Hours Standards Act-Overtime Compensation. Insert the clause set forth in 12.303-1. Note the prefatory language required by 12.303–2 for use in contracts with a State or political subdivision thereof.

7.5002-3 Examination of Records. Insert the clause in 7.104-15, except where the public utility services are to be furnished at rates not in excess of those established for uniform applicability to the general public or at such rates plus reasonable service or connection charges incident to such utility services.

7.5002–4 Approval of Contract. When contractual approval by NASA Headquarters is required by 4.5006, insert the clause set forth in 7.104–51.

7.5003 Additional Clauses. The clauses set forth in this paragraph 7.5003 will be inserted in negotiated utility service contracts referred to in 7.5001 when it is desired to cover the subject matter thereof. In addition, any other clause authorized by this Regulation, in accordance with the instructions pertaining thereto, may be inserted in such contracts when it is necessary or desirable to cover the subject matter contained in such clauses.

7.5003–1 Renewal of Contract. It is permissible to provide that a contract may be renewed annually for a number of years upon the execution by the Government of a renewal notice, provided that the number of successive years for which the contract is in effect does not exceed five. In any contract in which it is desirable that the service be provided under the same terms and conditions for a number of years, insert the following clause:

RENEWAL OF CONTRACT (JULY 1963)

This contract is renewable on an annual basis at the option of the Government, by the Contracting Officer giving written notice of renewal to the Contractor at least days before this contract is to expire. If the Government exercises this option for renewal, the contract as renewed shall be deemed to include this option provision. However, the total duration of this contract, including the exercise of any options

under this clause, shall not exceed In selecting the expiration date to be stated on NASA Form 550, consideration should be given to the selection of a date sufficiently past the end of the fiscal year to assure that appropriations will be available for the renewal period of the contract at the time the renewal notice is issued. The exercise of the option is a new procurement and the contract file shall be documented accordingly. (See Part 1, Subpart 15.)

7.5003–2 Public Regulation and Change of Rates. If the rates applicable to the service furnished under the contract are negotiated between the contractor and the Government without recourse to the approval of any Federal, State, or local regulatory agency, or if the service to be furnished under the contract is otherwise not subject to regulation by any Federal, State, or local

years.

CONTRACT CLAUSES

regulatory agency, or if the contractor also acts as the local public regulatory agency and his decisions are not subject to review by a higher regulatory agency, the following clause will be used in lieu of the clause set forth in 7.5001-11.

CHANGE IN RATES (JULY 1963)

(a) If at any time during the term of this contract either of the parties hereto considers it appropriate that all or part of the rates applicable to the service furnished under this contract be changed, the parties agree to promptly negotiate such rates upon receipt by one party of a written request from the other (i) specifying the rates as to which a change is considered appropriate, (ii) setting forth the proposed change in rates, and (iii) stating in detail the reasons for the proposed change. Any rate changes agreed to by the parties as the result of such negotiations shall be made a part of this contract by the issuance of a supplemental agreement hereto and shall become effective as of the date of the request for a change in rates, unless otherwise agreed to by the parties. Failure of the parties to agree upon the appropriate adjustment of rates, if any, shall be a dispute concerning a question of fact within the meaning of the clause of this contract entitled “Disputes.”

(b) The Contractor agrees that a duly authorized representative of NASA shall have access to and the right to examine any directly pertinent books, documents, papers and records of the Contractor relating to costs which form the basis for the rates.

7.5003–3 Connection Charge. When (i) a connection charge is to be paid by the Government and (ii) the conditions permitting the incorporation of a nonrecurring, nonrefundable fee in Appendix A do not exist (16.501-52(a)), attach Appendix C (16.501-52(c)) to the contract, and insert the following clause in the contract:

CONNECTION CHARGE (JULY 1963)

(a) Charge. The Government, in consideration of the furnishing and installation by the Contractor at his expense of the New Facilities described in Appendix C, attached hereto and made a part hereof, shall pay the Contractor, as a connection charge, after receipt of satisfactory evidence of completion of the facilities, the sum of $---

----, representing the sum of $------, less the agreed salvage value in the amount of $.as shown in Appendix C; provided that, as a condition precedent to final payment, the Contractor shall, if required by the Contracting Officer, execute & release in terms acceptable to the Contracting Officer, of claims against the Government arising under or by virtue of such installation.

(b) Ownership, Operation, and Maintenance of New Facilities to Be Provided Hereunder. The facilities to be supplied by the Contractor under this clause, notwithstanding the payment by the Government of a connection charge, shall be and remain the property of the Contractor and shall, at all times during the life of this contract or any renewals thereof, be operated and maintained by the Contractor at his expense, and all taxes and other charges in connection therewith, together with all liability arising out of the construction, operation, or maintenance of scuh facilities, shall be the obligation of the Contractor. (c) Credits.

(1) The Contractor agrees to allow the Government on each monthly bill for service furnished under this contract to the Service Location, a credit of

-- percent of the amount of each such bill as rendered until the accumulation of credits shall equal the amount of such connection charge, provided that the Contractor may at any time so allow a credit up to 100 percent of the amount of each such bill.

(2) In the event the Contractor, prior to any termination of this contraot but subsequent to completion of the facilities provided for in this clause, serves any customer

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CLAUSES FOR NEGOTIATED UTILITY SERVICE CONTRACTS other than the Government (regardless of whether the Government is being served simultaneously, intermittently, or at all) by means of such facilities, the corresponding benefit to the Contractor is hereby recognized. It is, therefore, agreed that upon initiation of such service, the Contractor shall promptly pay in full to the Government the uncredited balance of the connection charge, or accelerate the credits provided for under paragraph (c) (1) of this clause to 100 percent of each monthly bill until there is fully credited a sum equitably representing the same proportion of the uncredited balance of the connection charge as of the date of initiation of such service, as agreed upon by the parties hereto, as the portion of the facilities utilized in serving such customer bears to complete facilities descrbied in Appendix C.

(d) Termination Prior to Completion of Facilities. The Government reserves the right to terminate this contract at any time prior to completion of the facilities provided for herein with respect to which the Government is to pay a connection charge. In the event the Government exercises this right, the Contractor shall be paid fair compensation, exclusive of profit, with respect to such facilities. (e) Termination Subsequent to Completion of Pacilities.

(1) Termination by the Government. In the event the Government terminates this contract subsequent to completion of the facilities provided for herein with respect to which the Government is to pay a connection charge, but prior to the crediting in full by the Contractor of any connection charge in accordance with the terms of this contraot, the possible continued usefulness of such facilities is hereby recognized. It is, therefore, agreed that upon such termination the Contractor shall have the following options:

(A) To retain in place for twelve months or more after the notice of termination by the Government such facilities on condition that (i) if, during such twelve-month period, the Contractor serves any other customer by means of such facilities, the Contractor shall, in lieu of allowing credits, pay the Government during such period installments in like amount, manner, and extent as the credits provided for under paragraph (c) of this clause prior to such termination; (ii) immediately after such twelve-month period the Contractor shall promptly pay in full to the Government the uncredited balance of the connection charge.

(B) To remove such facilities at his own expense within twelve months after the effective date of the termination by the Government; provided, that if the Contractor elects to so remove such facilities, the Government shall then have the option of purchasing such facilities at the agreed salvage value set forth in Appendix C hereto; and provided further, that the Contractor will, at the request of the Government, leave in place such facilities located on Government property which the Contractor elects to so remove and which the Government elects to purchase at the agreed salvage value.

(2) Termination by the Contractor. In the event the Contractor terminates service under, or otherwise defaults in performance of, this contract prior to the crediting in full, in accordance with the terms of this contract, of any connection charge paid by the Government, the Contractor shall pay to the Government an amount equal to the uncredited balance of the connection charge as of the date of such termination.

7.5003–4 Termination Charge. When a payment is to be made to the contractor upon termination of service in lieu of a connection charge upon completion of the facilities, attach Appendix C (16.501-52(c)) to the contract, and insert the following clause in the contract:

TERMINATION CHARGE (JULY 1963)

In consideration of the furnishing and installation by the Contractor at his expense of the New Facilities described in Appendix C, attached hereto and made a part hereof the Government shall, in the event of termination of this contract by the Government prior to

months from the date on which service commences, pay the Contractor as a termination charge

less

multipüed by the number of months service has been received prior to the date of such termination.

CONTRACT CLAUSES

The length of time, not in excess of 60 months, as negotiated with the contractor will be entered in the first blank. In the second blank enter the amount of the maximum termination charge as negotiated with the contractor, but not in excess of cost of facilities furnished and installed by the contractor less the agreed salvage value as shown in Appendix C. Enter in the third blank the figure obtained by dividing the figure in the second blank by the figure in the first blank. The use of this clause does not affect the term of the contract; however, its use is subject to Headquarters approval in accordance with 4.5006(b).

7.5003–5 Multiple Service Locations. When it is desired to provide for possible alternative service locations, insert the following clause:

MULTIPLE SERVICE LOCATIONS (JULY 1963)

(a) The Contracting Officer may at any time, by written order, designate any service location within the service area of the Contractor at which service shall be furnished or discontinued thereunder, and the contract shall be modified in writing accordingly by adding to or deleting from the Service Specifications the name and location of the appropriate service location, by specifying a different rate if applicable, the appropriate point of delivery, different service specification if applicable, and any other appropriate terms and conditions.

(b) The minimum monthly charge specified in this contract shall be equitable pro rated for the billing period in which commencement or discontinuance of service at any service location designated under the Service Specifications shall become effective.

7.5004 Required ClausesContracts for $2,500 or Less Annually. The following clauses shall be inserted in all negotiated utility service contracts of $2,500 or less annually whenever the negotiated utility service contract form prescribed by 16.501-51 is to be used.

7.5004-1 Definitions. Insert the clause set forth in 7.103-1.
7.5004-2 Payments. Insert the clause set forth in 7.5001–2.
7.5004-3 Assignment of Claims. Insert the clause set forth in 7.5001-3.
7.5004–4 Disputes. Insert the clause set forth in 7.103–12.

7.5004–5 Equal Opportunity. Insert one or the other of the following clauses, as required by and in accordance with the instructions in 12.802: (i) the Equal Opportunity clause set forth in 12.802-1, or (ii) the Equal Opportunity in Federally Assisted Construction Contracts clause set forth in 12.802–2.

7.5004–6 Officials Not To Benefit. Insert the clause set forth in 7.103–19.

7.5004–7 Covenant Against Contingent Fees. Insert the clause set forth in 1.503.

7.5004–8 Termination. Insert the clause set forth in 7.5001-8. 7.5004–9 Convict Labor. Insert the clause set forth in 12.203. 7.5004–10 Rates. Insert subclause (b) of the clause set forth in 7.5001-10.

7.5004-11 Public Regulation and Change of Rates. Insert the clause set forth in 7.5001-11.

7.5004-12 Contractor's Facilities. CONTRACTOR'S FACILITIES (JULY 1963)

The Contractor, at his expense, shall furnish, install, operate, maintain, retain title. to, and be responsible for all loss of or damage to all facilities required to furnish the service provided for herein. The Contractor will be allowed access to his facilities on Government premises at suitable times and he shall, at his expense, remove them and restore the premises to original condition within a reasonable time after termination of this contract.

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