NEGOTIATED CONTRACT

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP61-00763A000200010102-9
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 39
• Document Creation Date: December 22, 2016
• Document Release Date: June 30, 2010
• Sequence Number: 102
• Publication Date: June 30, 1959
• Content Type: CONT

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Bycon fg Y
Pasadena, California
Contract fir: See Schedule
D-339'5
Contract No. BC-550
Perforsaace Period:
See Schedule
is contras Is enter into y of Amer ca,
hereinafter called the Government represented by the Contracting Officer
executing this contract, and the above-mod Contractor Nddeh is a Ourpo+ration
incorporated in the State of Delaware, heraixafter called the Contractor.
The parties hereto agree that the Contractor shall furnish the facilities and
deliver all supplies and perform all the services set forth in the attached
schedule issued hereunder, for the consideration stated herein.
The rights and obli&Ltions of the parties to this contract shall be subject to
and governed by the attached Schedule, Appendix I and General Provisions,
which together with this signature page and the accompanying certificate coswprise
this Contract No. BC-55. In the event of any inconsistency betwrom the schedule
and the General Provisions, the Schedule shall control.
IN WITNESS WMEQF, the parties hereto have executed this contract as of
JUN 3 0 1959 1959.
Sigoaturroes:
s Y
THE U"MD STATES OF AMERICA
1GNED
SECREI
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low.
Contrast No.
CERTIFICATE
r-e- ~ C- , certify t bat
as Contractor herein;
that v /. )' . 7' ~, -e- p
signed this contract on behalf of the Contractor was them/'
of said Corporation; that said eon-
tract was duly sigrisd for and in behalf of said Corporation by
authority of its governing body, and is within the scope of its Cor-
porate priers.
PUP
Corporate seal)
r.WET
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140W %NW "W MWO,
omtruct NO
INDEX TO WE SCHEDME
SERVICE AND SUPPLIES TO BE FURNISHED BT ' CONTRACTOR------
PART I
-
'ART II
- PERPORRANCE OF SERVICES------------------------------------
PART III
- RELATED WORK AND SERVICES-- - -------------
PARS' IV
- CONSIDERATION AND PAYMMS---------------------------------
PART V
- RE1ICIRG-____--___________________________________________
PART VI'
- PERIOD OF PERFORMANCE__________________________________
PART VII
- ANTICIPATORY COSTS-----------------------------------------
4
PART VIII - SPECIAL SECURI'T'Y RESTRICTIONS------------------------------- 8
PART IR - WAIVER OF RE$UIRMMTS OF GAL PROVISIONS --------------- 9
PART X - GOVR'Rr IfT FUR ISHEU PROPE?TY------------------------------ 9
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SJRET pct io. BC-550
PART I - SERVICES AND SUPPLIES TO BE PURNISKED BY '3+B'E CO A R
The Contractor shall provide all necessary equipment, tools,
and minor its of material and 9WI furnish the services of all
necessary qualified personnel required to efficiently and
expeditiously operate and malaw in a plant Ikci lity fbr performing
modifieaatio>ns, repairs and overhauls of todpwat of the types and
kinds produced end delivered under a separate * tract between
the
Contractor and the Oovernmant. T t ontr~r tbs. also provide
liaison with other suppliers of related e%uipaa t and shall furnish
routine in-plant entering to analyse epsent returned for
modification, repair and overhaul to 8 e'mins caus of all i hnical
difficulties or mal.fun stIon s . The furni,~r? g of engttnemring data
thereon such as service bulletins, modification data, and technical
solutions to problems wbi,eh will itciittate and s gWrt successful
field operations shall be h; ed, in acme with the letter to
all 3upg liers dated 7 April 1939 (DPti-2284..59) . Said letter is
incorporated herein by reference having the she force and effect
as if Cully met forth herein. The Contractor "I 11 furnish qualified
personnel to the Governments test site fr periods of time as %y
be authorized by the Cmtracting Officer or his authorized repro-
sentativea. The Contractor shall train er ptoyees, who are aeeotratle
to the Go ernmesnt, for use as technicians overseas. The ant
will issue fora l authorizations, i.e. Tit Work Orders, Test Site,
Headquarters or Customer No. 2 Contract Ayiravala, numbered serially,
setting forth the plant vork, test site or training servic the
Governasut desires to be perftrmed, hereunder, together with desired
delivery schedules and preservation, pacing, }peeking and marking
requirements therefor. All major items of materials requires for
modification, repair, or overhaul of the eguipsment will be available
to the Contractor as Goven t tarnished material from the apare
puts inventory to be provided and maintained by the Contractor under
a separate contract between the Contractor and the Gwt. Work
and services such as special leas repair processing, ,plating, engraving,
refinishing, raw materials to jrodiaee parts and the purchase of parts
rant available Crean the spare parts inventory vil. be obtained by the
Contractor under subcontract.
:FRET
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PART II - P FORt4ANCE OF SERVICES
(a) The extent and character of the work to be done by the Contractor
under this contract shall be subject to the general supervision, direction,
eontrol and approval of the Contracting Officer or his authorized
representative, to whom the Contra r shall report and be rwynro s.
In the event then should be any dispute with re rd to the extent and
character of the murk to be perforsd, the setter shall be determined
as provided in General Provisions 7 Disputes.
(b) The Contractor agrees to furnish sufficient pe'rsocnel of
the labor categories specified in Appendix I hereof, as well.: as supervisory
and administrative personnel to assure successful ymsecution of the work.
(c) All operations under the terra of this contract will be done
in an effecient and workcauIihe miner and by q*lif`isd personnel of
the Contractor's or nizaticsn who are thoroughly familiar with the
t,,of work being performed.
(d) Services required by the Contractor and performed by
the Contractor's personnel of the labor c ate0ories specified. in Appe x
I will be eosidered Direct Labor under this eomtraet.
In addition to the services and supplies to be provided above, the
Contractor will perform such other wort and services as say be requested
by the Contracting. Officer or his authorized representative and agreed
to by the Contractor, which are necessary to ensure ti el perf'ox nce
of the contract work.
PMT IV - CO NS IDT tAT ION 4ND PAYMENTS
(a) There has been allotted. for this contrast the following
amounts
Period Customer
I July 1959 - 30 June 1960 No . 1 -36, Sao. 00
No. 2 135,000,OO
*Coatia t upon the availability of funds for this
purpose for each Customer during the Governments
Fiscal Year 1960. Rapresoits an estimated six (6)
lath funding only.
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Unexpended funds at the end of a period for either Customer are not
authorized for use in a subsequent period. The contractor s& ____
notify the contracting Officer the amount of unespenided funds for
each Customer at the end of each period. If, at any time, the
Contractor is of the opinion that the cost of the work authorised
will smead the aaeQUnts allotted by Cult rs for a articular period,
he shall notify the Contracting Officer of the additional amount
required.
(b) In accordance with the clause of this contrast entitled
"PAM S", the Contractor sh i 1 be jaid as follows:
(1) For work and services performed by the Contractor's
personnel of the labor categories met forth in Anendix I, the Contractor
Shall be paid the s acable hourly rates stated in the colum entitled
"Contract Hourly Bate", in Appwadix i, as may bar 1
time to time, for each Direct Tabor hour of work or services act
performed hereunder by such pars el. The tiros of non- odxwtirre
personnel will not be m lined in direct labor, sad the Contractor
agrees that only direct labor of its personnel of the labor categories
designated in Appendix I, eupged in the waft called for by this
contract will be included in its billis hereunder.
(2) For materials and s rliess: wed by the contractor or
subcontractors under this contract, other than minor items of materials
and supplies to be provided. without direct cost to the Get,
the Contractor slal7. be reimbursed at actual cost. )htsriala and
supplies, other than minor items of materiels and supplies withdrawn
from the Contractor's stock for use on this contract, my be charged
at prices determined by the Contractor's eas~tablissshesd method of pricing
for its other business. No aucust representing pr fit shall be added
to the cost or price of supplies or materials furnished under this
contract.
(3) For related work and services performed hereunder by the
Contractor, payment shall be made in accordance with hssragraph. (d) of
Ctause k, Payments, of the General Provisionsa.
(c) It is hereby agreed that the "Contract Hourly ates" as
specified in Appendix I are based on straight time wages of Contractor's
employees directly en ged in the perforusace of work under this contract
and include all applicable overhead, General and Administrative Rwrense
and Profit. In the event overtime work is determined to be necessary
for the? ~ perform a of the work and is specifically authorised
in writing by the Contracting Officer or his authorized representative,
it is understood, and agreed that the preaeduna portion of any such
authorized overtime pay shall be billed as a direct cost in accordance
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SECRET r..
with the Contractor' a established. accounting practices.
(d) In the event the Contractor's total billiaw as dstermtned
under this PART IV and the PAD MM clause in the General Provisions
of this contract for any quarterly period eonsisting of three (3)
successive regular monthly billing periods hereunder are less than
$15,000, the Contractor way present a minim= billing of $5,000 for
such period in lieu of the Coutractor?s total actual charges for
the three (3) aonths within said, quarterly period. r the purpose
of defining quarterly periods hereunder, the first quarterly period
shall consist of the first three successive regular monthly billing
periods (i. e. July, August and September), the next quarterrly period
win consist of the second, three successive regular monthly billing
periods (i.e., October, lavmb+err and December), etc NO MinIMM
charge will be paid: for a period casprising less than three successive
regular =mthly billing periods; harvevsr, the Contractor will be
paid actual charges for each south or part thereof for such Lesser
period. The Contractor's bill-Ingo shall be lade nrorathly and shell
be for actual cost. In the event the billing for the third south of
a quarter when added to the two preceding month's billings of the
same quarter total less than $5,OW, the Contractor's billing for
the third math say show an amount added thereto pursuant to this
clause and in addition to the total actual cost which will result in
a total . bi ll.ing of 45,00D for the quarterly period.
(e) Billings aubuitted by the Contractor ahall indicate (1)
the Custmer, (2) the period involved, and (3) total funds allotted
for said period less total of all previous billings thereby shoving
the bake available for expenditure in that period. Udder this
as imt set forth the amount of the claim for the current mouth
reflecting the Work. Orders or other work or services as authorized
by the Contracting Officer. The billing, submitted for the final
claim for a period should have indi+erctsd thereon the words ' f ni1l
Claim" and show thereon the unexpeaded balance for each Cuitanwr.
(f) The cost of performing work authorized ender this contract
shall be *barged to the funds allotted for the period in which the
work was actually performed regardless of when the authorization
was received by the Contractor.
(g) In the event the provisions of subparagraph (d) above
rssarding s i n+a billings are utilized the Contractor shat I
charge the two Customers on a fifty -fifty basis.
SECRET
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up, VWV
SECRET
PART V RPYRICB C
(a) Ring establish t of firwa Contract $ourl.y Rtes for
any period, the Contractor shall be reimbursed at the provisional
Hourly Rates set forth in the attached Apia I subject to
apyrorpriate adJust t when final rates are established. To prevent
substantial over or under payment; the provisional xatees nay, at
the request of either party, be revised by mutusa1 agreamkk t, either
retroactively or prospectively.
(b) The Contractor shall submit proposed ili> Contract Hourly
Rates on or about 1 April. 1960 for the period 1 July 1959 thrau h 30
June 1960. 1pon coupletion of uegetiatione by the parties hereto
the fired Contraot Hourly Rates will be incorporated by an t
(c) Any fa lure on the part of the parties hereto to agree
to any such revisions shall be considered a dispute concerning a
question of fact within the waning of the article of this contract
entitled " Disputeea " Pending nettle nt of such disputer the Coontractor
shall diligently proceed with the performance of the subjlwt work
hereunder.
PART VI - P1IOD OF 3 )1 P, NCE
This contract shall be emotive for the period 1 July 1959
through 30 June 196. The contract ray be extended by n utual
a, reeent between the parties hereto.
PART VII -- PJ TICIFATORY C0
All costs which have been incurred by the Contractor? on or after
I July 1959, in anticipation of a3td gfior to the signing of this
contract, and which, if inaurred after the signing of this tract,
would have been considered as a3lambl a charges hereunder, will be
accepted by the Contracting Officer under this contract.
PART VIII SPECIAL SECURITY F ICTIOHS
The Contractor sbo.11 not reveal (1) the specific rture or any
details of the work being performed hereLmder or (ii) any iubrmation
wi tsoevez with respect to the dep meat of the Oavernma nt Wiring
this cc tenet and the work thereunder except as the Contractor is
directed to reveal such intbrration by the Contracting Officer or by
his auly authorised representative for security sett , and., notwith-
standing any clause or section of this contract to the contrary,
the Contractor shall not interpret any clause or section of this
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SMET
contract as requiring or permitting diverse of lueh intonation
to any person, public or private, or to any offleer or dejartment of
the C nrernme t without the express consent of the Contracting Officer
or his duly authorized representative for security matters.
PART IX WAIVER OF RE f f8 OF COAL P1N)VISIONS
Notwithstanding the requirements of any of the General Provisions
of this contract to the contrary, os er the Contract er, In
pertorsanee of the work under this contract, Wall find that
reoiuire to of any of the clauses of the General Prow slons &"
in conflict with security Instructions issued to the Contractor by
the Contracting Officer or by his duly authorized 184Mtative
for security setters, the Contractor shall call the attention of
the Contracting ? ffi er to such conflict and the Contracting Officer
or his *ay authorized representative for security matters shall (i)
modify or rescind such security requir is or (ii) the Contracting
Officer shall issue to the Contract= a waiver of sa^pLiance with the
requiresants of the General Provisions aoofli+otIng with such security
quiramts. Any waiver of ranee with the General Pr vi sions
of this contract issued by the Co utr&cting Officer shall be in
writing, excerpt that the a l by the C ntract#ag Officer of any
subcontract issued hereunder by the Contractor sail be deemed to
constitute approval of waiver of any clauses of the Gemusl Previsions
in conflict with the stipulations of such subcontract.
PART X - GOVEHNNM FURNIi PROPERTY
The Governne t Property presently in the possession of the
Contractor which was furnished under Contract No. DC-450 is
authorised for use under this Contract No. AC-550. Contract No.
BC-550 ;sill be ascended at a later date to incorporate the listing
of GFP an hand. as of Y July 1959. Said property will be subject
to the provisions of the clause entitled "fit-Furnished
may" (I ragraph 21 of the General Provisions) .
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Jo
Grade Code
074
075
064
165
168.
065
100
146
166
169
170
070
4 066
200
220
225
250
255
260
270
Z75
047
Job Classification ,l.Z411.1 G & A
Basic Rate 'L 155% @ 15%
$5 15
Project Engineer `P' ?'O 401". 13 $1, 97
Research Epgieer
Engineer, Senior. 4.21 b. 53
Tech. Writer, Sr. 10.74 1.61
Publications Specialist, Sr,
Engineer, Intermediate 3, 89 6.03
Chief Inspector 9. 9Z 1.49
Photographer, Senior
Technical Writer
Publication Specialist
Spares Coordinator
Administrative Asst. , Sr. #
Engineer, Junior 3.06 474
7
8
,
0 1
1?
R
s
h
Total
Cost
Profit
10%
Total
Price
$15.10
$1:.51
$16.61
U. 35
1.24
13.5.
11.41
1.14
12. 55
.
e
earc
8.97
& Dev. Aide
Draftsman, Design
Industrial Artist
Electronic Tech.* Sr.
Photographer Tech. , Sr.
Engineering Aide, Sr.
Technical Illus t rato r
Draftsman, Layout
Administrative Asst.
Publication Specialist, Jr.
Electronic Technician
Photograph Technician
Photographer 2.35 3.64
Technical Writer, Jr. 5. 99 .90 6. 89 .69 7.58
Engineerirg Aide
Technical Tllust rator, Jr. SECRET
Draftsman. Detail
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 Job
Code
-"C,#
400
405
.460
470
520
410
415
450
5115 General Clerk
600 Clerk Typist
610 Tracer
615 Dup. Mach. Opr.- Jr.
535 Dup. Mach. Opr.
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Job Classification
Elect. Tech., Jr.
Photo Tech.-, Jr.
Engineerift. Aide3,s`,Jr.
Draftsman, junior
Clerk, Technical
Dup. Mach: 4pr. , Sr.
Reproduction Copy Typist .
Departr nt Clerk*
515 Typist, Technical
700
705
710
715
720
725
10 750
754
758
760
11 764
768
774
778
784
Machinist, Experimental
Research Mechanic
Auto. Mach. Technician
Tool & Die Maker
Sheet Metal Fabricator
Inspector, Tool & Gage
Machinist, Precision
Grinder, Precision
Plater
Welder
Inspector, Precision
Inspector, Elect. Systems
Mechanic, Maintenance
Sheet Metal Man, Maint.
Carpenter, Maintenance
Hourly Bu rden
Basic Rate @ 155% Cost
Page 2
G & A Total Profit Total
15% Cost @ 10%. Price
1.58
2.45
4.03
.6o
4.63
.46
5.09
3.21
4.98
8.19
1,23
9.42
.94
2.93
4.54
7.47
1. 12
8.59
.86
9.45
2.93
4.54
7.47
1. 12
8.59
.86
9.45
SECRET
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f-.
Job
Hourly
Burden
G & A
Total
Grade
Code
Job Classification
Basic Rate
@ 155%
Cost
@ 15%
C
ost
800.
Machinist, Specialist
$2.
53
$3.92
$6. 45
$ .97
42
7
805
Spray Painter, Specialist
.
810
Inspector, Senior
815.
Asaerabler, Precision
850
Machine Operator
2l
3. 43
5. 64
85
49
6
855
Tool Room Attendant
.
860
Inspector
870
Truck Driver
.885
Assembler SpeciallEst
900
Helper. Machine Shop
1, 98
3.07
5.05
. 76
5. 81
910.
.1itspector, Apprentice
915
Assembler, General
920
Silk Screen Processor
955
Aseearnbl.ex, Electro-Mech.
1.69
Z. 62
4.31
.65
4.96
Page 3
Profit Total
@ 10% Price
. ?4 $8.16
.65
7. 14 (
.58 6. 39
.50 5.46
Travel and subsistence 1 ditures by the Contractor for the to portation of the persons directly
engaged in the pero ,.ae of the work hereunder sod reuc. blle actual subsistence expenses incurred
during periods of travel excerpt for sabsigtnce t .ale at the Test Site in accordance with Contractor' s
established tray ve. practices will be allowable direct costs wider this contract to twitch a;-provisional
General and Awnistrtativee expense of 1 will be added as park of approved costs. When assigned in
excess of one day to the Governments Test Site the esgployee shall receive a separation allowance of
$9.00 per day and a s mall allowance of $5.00 per day. To this cost a prrrisional G&A of 1% will be
added.
Job classifications followed by an asterisk (*) are to be used for February 1959 only) after which these
Job classifications will be considered ota^eead..
Provisional Material. Burden rate of 1 of materials cost and a poroisi anal General and. Administrative
Expense rate of 1 of E aterial costs, inclusive of the Material Burden Rate shall be used in Ming
the total cost of all materials furnished by the Contractor.
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1 ? DEFINITIONS ? 4 ? a . . . . a . a
2. CHANGES . . . . . . . . . . . .. . . . . . a . . . . . ? . 1
3. INSPECTION. . ? . ? ? ? . ? . . ? . . . ? . ? ? . . a . . . 2
4. PAY11EiNiTS. .f n. ~.q . A. T`. . . , . . . a . . . . . . . . . . a . 2
5. P5,S81Ci1~1f'2N C CLxi. MIS. . ? ? ? ? e . ? . . . ? . ? b . ? o ? ? 4
6a EXCUSABLE DELAYS. . . ? . ? a ? /.
7. DISPUTES. 11 a o o a o w b a? e a 5
8. 'MICE AND ASSISTANCE REGARd DING PATENT Ii 'RIiNGEITINT ? ? ? a 5
9. B`-'.I AII,EBIC.iNN ACT.. . ? . . . . ? ? 6
10. CONVICT LABOR r . ,. . . b b a ? . 6
11,. ET THT-HOUR LAN OF 1912. : . 4 . .. , , n 6
12, l,JSH -HE .EY PUBLIC CONTRC
nTS ACT ?? w. i b l a a 0 0 7
13, L0ND1SCRINNNI11ATI0N IN EMPLOY11ENT . . . . 6 ti , ? : . ? . . . . 7
I4?. OFFICIALS NOT TO BENEFIT . . ? a ? b b e b S
15, COJTENANT AGAINST CONTINGENT FEES. . a ? , . ? . . . . . . . 3
_6? REPORT NG OF ROYALTIES. . . . o . . . . . . . . . . . . . . . F
117. TERIVE[iv.ATION FOR CO.NVEWIENCE OF .'HE GOVERNI'EN'i . . . . ? . ? . 10
18? jS1UDCON' TRACTS. .. . . . ? a ? a . . . . . . . . . . . w . . . 15
19, RECORDS . . . . . . ? o p a n ? e o ? ? o ? ? e w ? w o a . ? 15
20. GRATUITIES. ? . a . . . . ? . . . . . . . . . . ? . a ? ? 17
21. GOVERNI?NT FURNISHED PROPERTY e ? ? ? . . ? 17
22. E142LOYN.E'NT OF ALIENS. . . e ? . ? a . . a ? 22
23. }aLIT'ARY SECURITY REQUIREIIENTS. . . ? . . . . . ? . a . . . . 22
24. COPYRIGHT a a a . . . a . a a . . . . . . . . ? a ? a . ? . 23
25. FILING OF PATENT APPLICATIONS a a . . . r . . . . . a . . 24
26. NOTICE TO THE GOVERN1VENT OF LABOR DISPUTES. ? . . ? . . . 24
27, AUTHORIZATION AAD CONSENT a a . . . a . . ? . ? . V 25
23. ALTERATIOiiJS IN CONTRACT . a . . a . . . . , . . o a a ? . 25
T&ili 8/22/56
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As used throughout this contract, the following terms shall
have the meanings set forth below:
(a) The term "Secretary" means the Secretary, the Under
Secretary, or any assistant Secretary cf the Department and the hr,,ad
or any assistant head of the executive agency; and the term 11h.".S duly
authorized representative" means any person or persons or board
(other than the Contracting Officer) authorized to act for the Secretary;
and the term "Department" means that component of the Government having
cognizance of this contract and represented by the Contracting Officer
executing this contract.
(b) The term "Contracting Officer" means the person executing
this contract on behalf of the Government, and any other officer or
civilian employee who is a properly designated Contracting Officer;
and the term includes, except as otherwise provided in this contract,
the authorized representative of a Contracting Officer acting within
the limits of his authority.
(c) Except as otherwise provided in this contract, the term
"subcontracts" includes purdhase orders under this contract,
(d) The term "contract work" means all work to be performed
under this contract including any studies covering fundamental., theo-
retical, or experimental investigations; any extension of the inves-
tigative f'ind_i.ngs and theories of a scientific and technical nature
into practical application; any tangible terms, hereinafter referred
to as supplies, if called for herein, furnished to the Government;
and any reports, data,, computations, plans, drawings, and specifica-
tions with respect to the foregoing.
(e) The term "direct labor," as used in the Payments clause,
shall be defined in the schedule.
The Contracting Officer may at any time, by a written order, within
the general scope of this contract, and without notice to any sureties,
make changes in (i) drawings, desa_ ns, or specifications, (ii) direct
the addition of work or services; (i.ii) make changes in method of
shipping or packing; and (iv) make changes in place of delivery. If
such changes require a change in the time of performance of the work
called for hereunder, the contract shall be modified in writing
accordingly. The hourly rate set forth in the schedule shall not be
adjusted by reason of any change ordered under this clause.
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(a) ALl material and wcrkmanhip shall be subject to inspection
and test by representatives of theGovernmenty For this purpose, the
Contractor shall allow, at all reasonable times, inspectors and other
Government personnel free access to the plant and operations and shall
furnish such facilities as may be 'required for the work. The Contractor
shall inform the inspector when the work is ready for inspection. The
Government representative shall hhve the right to (i) require the
replacement of parts which are not in accordance with applicable sped--
fi.cations, and (ii) require the correction of defects.
(b) The Contractor shall provide and maintain an inspection
system acceptable to the Government covering the inspection of the
supplies and services furnished under this contract. Records of all
inspection work by the Contractor shall be kept complete and available
to tree Government during the perfo-Vmance of the contract.
(c) The Contractor agrees that it will employ only qualified
and competent employees in the performance of this contract and that
the services performed will conform to the highest professional
standards for the work involved.
(d) Prior to Final acceptance by the Government, any correction
of defects to supplies or services, or replacement of materials to
make the item conform to contract requirements, which correction or
replacement is made necessary by inferior workmanship or materials,
shall be at no cost to the Government.
(e) Final acceptance by the Government shall be conclusive
except as regards latent defects, fraud, or such gross mistakes as
amount to fraud., The Contractor shall, before or after final ac-
ceptance, remedy defects or failurop due to suc,'d causes at no cost
to the Government.
The Contractor shall be paid as follows upon the submission of
properly certified invoices or vouchers approved by the Contracting
Officer
(i) The amounts computed by app.lyin; the appr
timecar
vouchers by evi
be payable on a prorate
ministrative expense and profi
performed, which rates shall include
e time rate
direct labor hours
overhead, general and ad--
"ractional parts of an hour shall
sisr, The Contractor will substantiate
of actual payment and by individual daily job
referably signed by the workers performing the services
.
s will normally be-made at Contractor's payroll intervals,
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-hut, may hn 1,1r Jed by the Contracting Officer if conditions so warrant.
(ii) Nett withstanding the provisions of subparagraph (i) hereof,
the Contracting Officer, as provided in the schedule, shall withhold
payment of certain amounts due under this contract. Such amounts shall
become payable upon completion of this contract.
(iii) Unless provisions of the schedule hereof otherwise
specify, the hourly rate or rates set forth in the schedule shall
not be varied by virtue of the Contractor having performed work on an
overtime basis. If the schedule provides rates for overtime, the
premium portion of those rates will not be reimbursable unless the over-
time is approved in writing by the Contracting Officer.
(i) Allowable costs of direct materials shall be
Shot rv ned
y
by the Contracting Officer in accordance with Par-`Section XV, of
the Armed Services Procurement Regulation e Contractor shall
support all material costs claim. submitting paid invoices or
storeroom requisitions, D? materials as referenced by this clause
are defined as thos- erials which enter directly into the end
product, or are used or consumed directly in connection with
(ii) The cost of subcontracts which are authorized pursuant
to the clause hereof entitled "Subcontracts" shall be reimbursable
costs hereunder.
(iii) The Contractor shall,,, to the extent of its ability,
procure materials at the most advantageous prices available, with
due regard to securing prompt delivery of satisfactory materials,
take all cash and trade discounts, rebates, allowances, credits,
salvage, commissions, and bonifica ;ions, and when unable to take
advantage of such benefits it shall promptly notify the Contracting
Officer to that effect and the reason therefor. Credit shall be
given to the Government for cash and trade discounts, rebates,
allowances,, credits, salvage, the value of resulting scrap, when
the amount of such scrap is appreciable, commissions and boni-
f:tcations which have accrued to the benefit of the Contractor or
would have so accrued except for the fault or neglect of the Con-
tractor, Such benefits lost through no fault or neglect on the
part of the Contractor or lost through fault of the Government,
shall not be deducted from gross costs,
(c) As of the date of execution of this contract, there has
been allotted for it the total sum set forth in the schedule. This
sum may be increased from time to time by the Government solely at
its discretion, and the contract shall be amended accordingly. iNJot-
withstanding any other provisions of this contract, the Contractor shall
not be obligated to perform any services, pursuant hereto, the
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aggregate price of which wncn added to the aggregate price of all
services tneiotofore fuurnishod pvrsuan t hereto would exceed said
sun- If at any time the Contractor considers it likely that the
aggregate amount sci; forth in the schedule may be exceeded within
45 days, the Contra 1ctor will SO 'notify t:,.e Contracting Officer and
the parties may. thereupon enter into negotiations for. . an amendment
to or modificaton of this contract, as may be appropriate, Anything
in this contract to the contrazy,.no:twithstanding, the Government shall
not be obligated to pay to the Contractor any amount in excess of the
sum allotted for this contract.
5, ASSIGIUINT OF CLAIMS
(a) Pursuant to the provisions of the Assignment of Claims
Act of 1940 as amended (31 U. S. Code 203, 41 U. S. Code 15), if
this contract provides for payments aggregating w;1,O00 or moire,
claims for moneys due or to becoi:iQ due to the Contractor from the
Govei7nmont under this contract may be assigned to a bank, trust
company, or other financing institution, including any Federal
lending agency, and may thereafter be further assigned and re--
assigned to any such institution, Any such assignment or rc?..
assignment shall cover all amounts payable under this contract
and not already paid$