LETTER TO EASTMAN KODAK COMPANY FROM PHOTO MECHANISMS INC.

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP81B00878R000800120004-2
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 5
• Document Creation Date: December 12, 2016
• Document Release Date: May 14, 2002
• Sequence Number: 4
• Publication Date: December 13, 1955
• Content Type: LETTER

Approved For Release 2002/06/13 : CIA-RDP81 B00878R000800120004-2
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December 13, 1955
'E'astman Kouak Company
Camera .vorks
331 State Street
Rochester 4, New York
Deference: Purchase Order No. U-13763
Our Job No. 174
STATINTL Attention:
C. Gentlemen:
STATINTL
STATINTL
STATINTL ILLEGIB
In response to your request, we are listing
below our rates as applicable to such Time--and-:Material
,or:tr acts as tie ai:,'ove referenced order.
These rates are calculated from an average
n rineering salary of
salary 1
?,xxp eases it c. iud ng ?urc rases, subcontracts, and
ttr:avei are extra at cost.
Very truly yours,
PHOTO :0HANl5r`S , Inc.
Approved For Release 2002/06/13 : CIA
 E.I. 1955 Approved For Ref T N13- TI~bP%11?60878R000800120004-2
PART OR ALL OF THE ARTICLES COVERED BY THE ATTAHCED ORDER ARE TO BE USED IN THE PERFORMANCE OF CONTRACTS
FOR THE GOVERNMENT. THE FOLLOWING PROVISIONS ARE ESSENTIAL PARTS OF THIS ORDER, TO ALL OF WHICH
YOU AGREE IN ACCEPTING THIS ORDER
YOU WARRENT THAT THE WORK WILL BE DONE HEREUNDER IN COMPLIANCE WITH THE FAIR LABOR STANDARDS ACT OF 1938
AND WITH THE APPLICABLE PROVISIONS OF THE WALSH.JIEALY ACT AND THE EIGHT HOUR LAW. IF THIS IS AN'ORDER OR SUB-
CONTRACT FOR OTHER THAN STANDARD COMMERCIAL SUPPLIES OR RAW MATERIALS, YOU AGREE NOT TO DISCRIMINATE AGAINST
ANY EMPLOYEE OR APPLICANT FOR EMPLOYMENT BECAUSE OF RACE, RELIGION, COLOR, ON NATIONAL ORIGIN. THE AFORESAID
PROVISION SHALL INCLUDE, BUT NOT BE LIMITED TO, THE FOLLOWING: EMPLOYMENT, UPGRADING, DEMOTION, OR TRANSFER]
RECRUITMENT OR RECRUITMENT ADVERTISING; LAYOFF OR TERMINATION; RATES OF PAY OR OTHER FORMS OF COMPENSATION;
AND SELECTION FOR TRAINING, INCLUDING APPRENTICESHIP. YOU AGREE TO POST HEREAFTER IN CONSPICUOUS PLACES,
AVAILABLE FOR EMPLOYEES AND APPLICANTS FOR EMPLOYMENT, NOTICES TO BE PROVIDED BY THE CONTRACTING OFFICER
SETTING FORTH THE PROVISIONS OF THE NONDISCRIMINATION CLAUSE.
NOTICE TO OVERNMENF OF LABOR DISPUTES
WHENEVER AN ACTUAL OR POTENTIAL LABOR DISPUTE 18 DELAYING ON THREATENS TO DELAY THE TIMELY PERFORMANCE OF
THIS CONTRACT, YOU WILL IMMEDIATELY GIVE NOTICE THEREOF TO THE NEAREST REPRESENTATIVE OF THE GOVERNMENT DEPART-
MENT CONCERNED. SUCH NOTICE SHALL INCLUDE ALL RELEVANT INFORMATION WITH RESPECT TO SUCH DISPUTE; PROVIDED
SUCH NOTICE NEED NOT BE GIVEN IF THIS IS AN ORDER FOR THE FURNISHING OF STANDARD OR COMMERCIAL ARTICLES ON RAW
MATER I AL .
MILITARY SECURITY REQUIREMENTS
(A) THE PROVISIONS OF THE FOLLOWING PARAGRAPHS OF THIS CLAUSE SHALL APPLY ONLY IF AND TO THE EXTENT THAT
THIS ORDER INVOLVES ACCE88 TO CLASSIFIED MATTER, WHICH AS USED IN THIS CLAUSE SHALL MEAN INFORMATION ON MATERIAL
CLASSIFIED "TOP SECRET", SECRET", ON "CONFIDENTIAL".
(B) YOU (1I) SHALL BE RESPONSIBLE FOR SAFEGUARDING ALL CLASSIFIED MATTER AND SHALL NOT SUPPLY OR DISCLOSE
ASSIFIED MATTER TO ANY UNAUTHORIZED PERSON, (II) SHALL NOT MAKE ON PERMIT TO BE MADE ANY REPRODUCTIONS OF
1KTTER CLASSIFIED "Top SECRET" EXCEPT WITH THE PRIOR WRITTEN AUTHORIZATION OF THE CONTRACTING OFFICER, (111)
SHALL NOT MAKE OR PERMIT TO BE MADE ANY REPRODUCTIONS OF MATTER CLASSIFIED "SECRET", OR "CONFIDENTIAL", EXCEPT
AS MAY BE ESSENTIAL TO PERFORMANCE OF THE CONTRACT, (IV) SHALL SUBMIT TO THE CONTRACTING OFFICER, AT SUCH TIME
AS THE CONTRACTING OFFICER, MAY DIRECT, AN ACCOUNTING OF ALL REPRODUCTIONS OF MATTER CLASSIFIED "Top SECRET",
"SECRET", ON "CONFIDENTIAL", AND (V) SHALL NOT INCORPORATE IN ANY OTHER PROJECT ANY SPECIAL FEATURES OR DESIGN
ON CONSTRUCTION WHICH WILL DISCLOSE CLASSIFIED MATTER, EXCEPT WITH THE PRIOR WRITTEN AUTHORIZATION OF THE
CONTRACTING OFFICER.
(C) EXCEPT WITH THE PRIOR WRITTEN CONSENT OF THE SECRETARY OR HIS DULY AUTHORIZED REPRESENTATIVE, YOU
(1) SHALL NOT PERMIT ANY ALIEN TO HAVE ACCESS TO CLASSIFIED MATTER, AND (II) SHALL NOT PERMIT ANY INDIVIDUAL
TO HAVE ACCESS TO MATTER CLASSIFIED "TOP SECRET", OR "SECRET".
(O) YOU AGREE (1) TO SUBMIT IMMEDIATELY TO THE CONTRACTING OFFICER A COMPLETE CONFIDENTIAL REPORT OF ANY
INFORMATION WHICH YOU MAY HAVE CONCERNING IXTSTIRG ON THREATENING ESPIONAGE, SABOTAGE, OR SUBVERSIVE ACTIVITY,
(11) TO SUBMIT TO THE CONTRACTING OFFICER, UPON WRITTEN REQUEST, ANY AND ALL INFORMATION WHICH YOU MAY HAVE
CONCERNING ANY OF YOUR EMPLOYEES ENGAGED IN ANY WORK AT ANY PLANT, FACTORY, ON SITE AT WHICH WORK UNDER THIS
CONTRACT IS BEING PERFORMED, AND (III) TO EXCLUDE FROM YOUR PLANT, FACTORY, SITE OR PART THEREOF, AT WHICH
WORK UNDER THIS CONTRACT IS BEING PERFORMED, ANY PERSON ON PERSONS WHOM THE SECRETARY OR HIS DULY AUTHORIZED
REPRESENTATIVE, IN THE INTEREST OF SECURITY, MAY DESIGNATE IN WRITING.
(E) YOU ARE AUTHORIZED TO RELY ON ANY LETTER ON OTHER WRITTEN INSTRUMENT SIGNED BY THE CONTRACTING
OFFICER, CHANGING OR ENTIRELY REMOVING THE CLASSIFICATION OF THIS ORDER OR OF ANY CLASSIFIED MATTER.
(F) YOUR OBLIGATIONS UNDER THIS CLAUSE SHALL BE IN ADDITION TO ANY OBLIGATIONS TO COMPLY WITH ALL THE
5S AND PROVISIONS OF ANY APPLICABLE SECURITY OR SECRECY AGREEMENT HERETOFORE ON HEREAFTER ENTERED INTO
iNRWEER YOU AND THE GOVERNMENT.
(G) YOU AGREE TO INSERT, IN ALL SUBCONTRACTS HEREUNDER WHICH INVOLVE ACCESS TO CLASSIFIED MATTER,
PROVISIONS WHICH SMALL CONFORM SUBSTANTIALLY TO THE LANGUAGE OF THIS CLAUSE, INCLUDING THIS PARAGRAPH (G);
PROVIDED, THAT SUCH PROVISIONS NEED NOT BE INCLUDED IN ANY SUBCONTRACT AS TO WHICH THE CONTRACTING OFFICER
SHALL CONSENT TO THE OMISSION OF SUCH PROVISIONS.
INSPECTION; WARRENTIES
ALL MATERIAL AND WORKMANSHIP SHALL AT ALL TIMES AND PLACES AND WHEN PRACTICABLE DURING MANUFACTURE BE
SUBJECT TO LAgirowed FieraReieasea 20OR2/06/AF3RESGtAc-IRDP&1 BQO SROO&8QO1 ?1GO4.2
DEFECTIVE MATERIAL OR WORKMANSHIP AND PARTS OR ARTICLES NOT IN CONFORMITY WITH THE DRAWING
 Approved For Release 2002/06/'x32:'CIA-RDP81 B00878ROQ0800120064-2
AND SPECIFICATIONS, IF ANY, OR THE REQUIREMENTS Of THIS ORDER MAY BE REJECTED AND At OUR
PROMPTLY CORRECTED OR REPLACED AT YOUR EXPENSE.
YOU WARRANT THAT THE WORK DONE AND ITEMS FURNISHED UNDER THIS ORDER WILL COMPLY'WITH
DRAWINGS, SPECIFICATIONS OR DESCRIPTION AND WILL BE OF 8000 WORKMANSHIP AND MATERIAI AND
NOTWITHSTANDING INSPECTION, ACCEPTANCE OR PAYMENT BY US.
OPT ON SHALL BE
THE IVJAPP ICABLE
FR ELI OR M DEFECT.
LL I
YOU AGREE TO PERMIT ANY PERSON DESIGNATED BY THE HIAS OF ANY EXECUTIVE GOVERNMENT DEPARTMENT! CONCERNED TO INSPECT AND AUDIT YOUR PLANTS AND BOOKS I N CONNECTION HEREWITH AND TO CAUSE A SIMILAR I $ TO BE
INSERTED IN ALL SUBCONTRACTS HEREUNDER. IF THIS ORDER IS MADE ON A "COST -PLUS-A-FRED-FEE" BLAS1~, OR ON
A "TIME-AND-MATERIAL" BASIS, YOU SHALL KEEP AND PRESERVE RECORDS AND BOOKS OF ACCOU T PERTAINING TO THIS
ORDER; PROVIDED, HOWEVER, IF YOU, AT ANY TIME AFTER THE LAPSE OF SIX YEARS FOLLOWIN THE DATE U4N WHICH
THE FINAL PAYMENT HEREUNDER BECOMES DUE, DESIRE TO DISPOSE OF SAID RECORDS AVID BOOKS OF ACCO t, YOU
SHALL NOTIFY THE HEAD OF THE GOVERNMENT DEPARTMENT CONCERNED, WHO SHALL EITHER AUTH MIZE THEIR
OR NOTIFY YOU TO TURN THEM OVER TO THE GOVERNMENT FOR DISPOSITION, AND YOU SHALL PROMPTLY C MPLY
WITH SUCH NOTICE.
YOU AGREE, PURSUANT TO PUBLIC LAW 2115, 82ND CONGRESS, THAT THE COMPTROLLER GENERAL OF THE UN TED STATES
OR ANY OF HIS DULY AUTHORIZED REPRESENTATIVES SHALL, UNTIL THE EXPIRATION OF THREE YEARS AFTE ,F VAL PAY-
MENT OF PRIME CONTRACT, IF ANY, BETWEEN THE UNITED STATES OF AMERICA AND EASTMAN KODAK COMPAN , AYE
ACCESS TO AND THE RIGHT TO EXAMINE ANY DIRECTLY PERTINENT BOOKS, DOCUMENTS, PAPERS, !AND RECOR S F YOURS
INVOLVING TRANSACTIONS RELATED TO THIS ORDER. THE PROVISIONS OF THE PRECEDING SENTENCE ARE 1 A DITION
TO ANY OTHER PROVISIONS HEREOF RELATING TO ACCESS TO, RETEN71ON Of, AND INSPECTION OF RECORDS
BUY AMERICAN ACT
YOU AGREE THAT THERE WILL BE DELIVERED UNDER THIS CONTRACT ONLY SUCH UNMANUFACTURED ANTIC ES
MATERIALS, AND SUPPLIES (WHICH TERM "ARTICLES, MATERIALS AND SUPPLIES" IS HEREINAFTER REFERRE T IN THIS
CLAUSE AS "SUPPLIES"r AS HAVE BEEN MIMEO OR PRODUCED IN THE UNITED STATES, AND ONLY SUCH MANU AC URED
SUPPLIES AS HAVE BEEN MANUFACTURED IN THE UNITED STATES SUBSTANTIALLY ALL FROM SUPPLIES MINED'P ODUCED,
OR MANUFACTURED, AS THE CASE MAY BE, IN THE UNITED STATES. PURSUANT TO THE Buy AMERICAN ACT III U.S.
CODE IOA-D), THE FOREGOING PROVISION SHALL NOT APPLY (I) WITH RESPECT TO SUPPLIES EXCEPTED BY!'TH*
SECRETARY FROM THE APPLICATION OF THAT ACT, (1I) WITH RESPECT TO SUPPLIES FOR USE OUTSIDE THEiiUN TEE'
STATES, OR (111) WITH RESPECT TO THE SUPPLIES TO BE DELIVERED UNDER THIS CONTRACT WHICH ARE 0 A ' CLASS
OR KIND DETERMINED BY THE SECRETARY ON HIS DULY AUTHORIZED REPRESENTATIVE NOT TO BE MINED, PR DU4ED, OR
MANUFACTURED, AS THE CASE MAY SE, IN THE UNITED STATES IN SUFFICIENT AND REASONABLY 'AVAILABLE CO MEACIAL
QUANTITIES AND OF A SATISFACTORY QUALITY, OR (IV) WITH RESPECT TO SUCH SUPPLIES, FROM WHICH T E SUPPLIES
TO BE DELIVERED UNDER THIS CONTRACT ARE MANUFACTURED, AS ARE OF A CLASS OR KIND DETERMINED BY I;TH
SECRETARY OR HIS DULY AUTHORIZED REPRESENTATIVE NOT TO BE MINED, PRODUCED, ON MANUFACTURED, A TIIE CASE
MAY BE, IN THE UNITED STATES IN SUFFICIENT AND REASONABLY AVAILABLE COMMERCIAL QUANTITIES AMD OF A
SATISFACTORY QUALITY, PROVIDED THAT THIS EXCEPTION (IV) SHALL NOT PERMIT DELIVERY OF SUPPLIES MA NU-
FACTORED OUTSIDE THE UNITED STATES IF SUCH SUPPLIES ARE MANUFACTURED IN THE UNITED STATES IN U,FFICIENT
NO-MEMBER OF ON, DELEGATE TO CONGRESS OR RESIDENT COMMISSIONER SHALL BE ADMITTED TO ANY SH REIOR PART
OF THIS CONTRACT ON TO ANY BENEFIT THAT MAY ARISE THEREFROM, BUT THIS PROVISION SHAL. NOT BE ON TRUED TO
EXTEND TO THIS CONTRACT IF MADE WITH A CORPORATION FOR ITS GENERAL BENEFIT.
ASSIGNMENTS
NEITHER THIS ORDER NOR ANY INTEREST HEREIN NOR ANY CLAIM ARISING HEREUNDER SHALL BE TRANSIERRIED OR
ASSIGNED BY THE SELLER WITHOUT THE APPROVAL OF THE BUYER.
CHANGES
WE SHALL BE FREE TO REQUIRE CHANGES IN THE WORK TO BE PERFORMED BY YOU HEREUNDER. SUCH E UITIIABLE
ADJUSTMENTS SHALL BE MADE IN THE AMOUNT DUE HEREUNDER AND/OR IN THE TIME REQUIRED FOR THE PERIORMAMC[
HEREOF AS 18 APPROPRIATE. No CHANGES IN ANY OF THE PROVISIONS ON REQUIREMENTS OF THIS ORDER IiN-
STRUCTIONS SHALL BE EFFECTIVE UNLESS IN WRITING AND SIGNED BY OUR AUTHORIZED REPRESENTATIVE.
TAXES
UNLESS THIS ORDER SPECIFIES OTHERWISE, THE PRICES INCLUDE ALL EXISTING FEDERAL MANUFACTURE RS'' AND
RETAILERS' EXCISE TAXIS APPLICABLE TO THE ITEMS ORDERED. PRICES SHALL EXCLUDE EXISTING STATE AND LOCAL
SALES, USE OR OTHER TAX UPON THE UNOIRSTANDING THAT WE WILL FURNISH YOU WITH A CERTIFICATE, AFFIDAVIT
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OR OTHER DOCUMENT ADEQUATE TO OBTAIN EXEMPTION FROM ANY SUCH EXCLUDED TAX. IF AFTER THE DATE HEREOF ANY
FEDERAL, STATE OR LOCAL LAW SHALL IMPOSE OR INCREASE ANY TAX DIRECTLY APPLICABLE TO THE PRODUCTION OR
SALE OF ANY SUCH ITEMS FROM WHICH YOU CANNOT OBTAIN EXEMPTION OR DECREASE ANY TAX INCLUDED IN THE PRICE
OR PRICES, AN APPROPRIATE ADJUSTMENT WILL BE MADE TO REFLECT SUCH ADDED, INCREASED OR DECREASED TAX.
CANCELLATION
WITHOUT PREJUDICE TO ANY OTHER RIGHTS WHICH WE MAY HAVE HEREUNDER, AND IN ADDITION THERETO, WE
RESERVE THE RIGHT BY WRITTEN NOTICE TO YOU TO CANCEL THIS ORDER IN WHOLE OR IN PART, AS TO UNACCEPTED
ITEMS, AND HOLD YOU RESPONSIBLE, UPON BREACH HEREOF BY YOU, INCLUDING BUT WITHOUT LIMITATION, DEFECTS
IN MATERIAL EQUIPMENT, OR WORKMANSHIP, NON-COMPLIANCE WITH DRAWINGS, INSTRUCTIONS OR SPECIFICATION, OR
DELAY IN DELIVERY, NOT CAUSED BY CONDITIONS BEYOND YOUR CONTROL, OR IF YOU SHALL BE ADJUDICATED BANKRUPT
OR SMALL FILE A VOLUNTARY PETITION, OR CONSENT TO OR FAIL TO CONTEST A PETITION UNDER THE FEDERAL
BANKRUPTCY LAWS, OR IF A RECEIVER OR TRUSTEE OF A SUBSTANTIAL PART OF YOUR PROPERTY SHALL BE APPOINTED,
OR IF YOU SHALL FILE AN ASSIGNMENT UNDER ANY INSOLVENCY ACT, OR MAKE AN ASSIGNMENT FOR THE BENEFIT OF
CREDITORS.
TERMINATION
(A) THE BUYER MAY TERMINATE WORK UNDER THIS ORDER IN WHOLE OR IN PART AT ANY TIME BY WRITTEN OR TELE-
GRAPHIC NOTICE. SUCH NOTICE SHALL STATE THE EXTENT AND EFFECTIVE DATE OF SUCH TERMINATION; AND, UPON THE
RECEIPT HEREOF, THE SELLER WILL, AS AND TO THE EXTENT DIRECTED BY THE BUYER, STOP WORK UNDER THIS ORDER
AND THE PLACEMENT OF FURTHER ORDERS OR SUBCONTRACTS HEREUNDER, TERMINATE WORK UNDER ORDERS AND SUBCON-
TRACTS OUTSTANDING HEREUNDER AND TAKE ANY NECESSARY ACTION TO PROTECT PROPERTY IN THE SELLER'S POSSESSION
IN WHICH THE BUYER HAS OR MAY ACQUIRE AN INTEREST.
(B) IF THE PARTIES CANNOT AGREE WITHIN A REASONABLE TIME UPON THE AMOUNT OF FAIR COMPENSATION TO THE
SELLER FOR SUCH TERMINATION, THE BUYER IN ADDITION TO MAKING PROMPT PAYMENT OF AMOUNTS DUE FOR ARTICLES
DELIVERED OR SERVICES RENDERED PRIOR 70 THE EFFECTIVE DATE OF TERMINATION, WILL PAY TO THE SELLER, WITHOUT
DUPLICATION OF ANY ITEMS, THE FOLLOWING AMOUNTS:
(t) THE CONTRACT PRICE FOR ALL ARTICLES OR SERVICES WHICH HAVE BEEN COMPLETED IN ACCORDANCE WITH
THIS ORDER AND NOT PREVIOUSLY PAID FOR; OR, IF THIS ORDER IS MADE ON A "COST-PLUS-A-FIXED-FEE"
BASIS OR ON A "TIME-AND-MATERIAL" BASIS ALL COSTS AND EXPENSES REIMBURSABLE IN ACCORDANCE
WITH THIS ORDER, NOT PREVIOUSLY PAID TO THE SELLER FOR THE PERFORMANCE HEREOF PRIOR TO THE
EFFECTIVE DATE OF THE NOTICE OF TERMINATION AND SUCH OF THESE COSTS AS MAY CONTINUE FOR A
REASONABLE TIME THEREAFTER WITH BUYER'S APPROVAL, PROVIDED, HOWEVER, THAT THE SELLER SMALL
PROCEED AS RAPIDLY AS PRACTICABLE TO DISCONTINUE SUCH COSTS.
(2) ( I) THE ACTUAL COSTS INCURRED BY THE SELL EN WHICH ARE PROPERLY ALLOCABLE OR APPORTIONABLE TO
THE TERMINATED PORTION OF THIS ORDER, INCLUDING THE COST OF DISCHARGING LIABILITIES WHICH ARE
80 ALLOCABLE OR APPORTIONABLE (WHICH COST MAY INCLUDE A REASONABLE ALLOWANCE FOR PROFIT BUT
ONLY ON WORK DOME CONNECTION
ON PORTION OF ANY SUBCONTRACTS
ANY CHARGE FOR INTEREST TERMINATED
HEREUNDER), BUT
OS
~II) A A SUM EQUAL TO
2 PERCENT OF THE PART OF SUCH COSTS REPRESENTING THE COSTS OF ARTICLES OR MATERIALS NOT
PROCESSED BY THE SELLER, PLUS A SUM EQUAL TO 8 PERCENT OF THE REMAINDER OF SUCH COSTS, BUT
THE AGGREGATE OF SUCH SUMS SMALL NOT EXCEED 6 PERCENT OF THE WHOLE OF SUCH COSTS. FOR THE
PURPOSE OF SUBDIVISION (,I) SUCH COSTS SMALL EXCLUDE THE COSTS OF DISCHARGING LIABILITIES
FOR PARTS, MATERIALS AND SERVICES NOT RECEIVED BY THE SELLER BEFORE THE EFFECTIVE DATE OF
TERMINATION; OR IF THIS ORDER IS MADE ON A "COST-PLUS-A-FIXED-FEE" BASIS OR ON A "TIME-ANB-
MATERIAL" BASIS, THE COST NOT OTHERWISE INCLUDED OF SETTLING AND PAYING CLAIMS EITHER
ARISING OUT OF THE TERMINATION OF WORK UNDER SUB-CONTRACTS OR ORDERS HEREUNDER OR WITH RESPECT
TO ANY OTHER OBLIGATIONS, COMMITMENTS AND LIABILITIES THE C03T OF WHICH WOULD BE REIMBURSABLE
IN ACCORDANCE WITH THE PROVISIONS OF THIS ORDER OR ARISING IN CONNECTION WITH THE TERMINATION
OF THIS ORDER AND PROPERLY CHARGEABLE HERETO, PROVIDED ANY SUCH CLAIM HAS BEEN SETTLED WITH
BUYERS APPROVAL, PLUS SUCH PROPORTION OF THE FIXED FEE PAYABLE HEREUNDER AS 13 EQUAL TO THE
PERCENTAGE OF COMPLETION OF THIS ORDER AT THE DATE OF TERMINATION LESS ANY PAYMENTS ON ACCOUNT
OF FEE THERETOFORE MADE.
(3) THE REASONABLE COSTS OF THE SELLER IN MAKING SETTLEMENT HEREUNDER AND IN PROTECTING PROPERTY
IN WHICH THE BUYER HAS OR MAY ACQUIRE AN INTEREST. PAYMENTS MADE UNDER THIS PARAGRAPH (B),
EXCLUSIVE OF PAYMENTS UNDER SUB-PARAGRAPH (3), SHALL NOT EXCEED THE AGGREGATE PRICE SPECIFIED
IN THIS ORDER, LESS PAYMENTS OTHERWISE MADE OR TO BE MADE.
FOR TOE PURPOSES OF SUB-PARAGRAPHS (1), (2), AND (3) HEREOF, C03TS SMALL BL DETERMINED PURSUANT
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TO THE CONTRACT COST PRINCIPLES AS SET FORTH IN THE ARMED SERVICES PROCUREMENT RE{UL TIOMS
IF THE PRIME CONTRACT TO WHICH THIS ORDER RELATES CONTAINS A SIMILAR PROVISION, ONE WISE
PURSUANT TO THE STATEMENT OF PRINCIPLES FOR CONSIDERATION Of COSTS SET FORTH IN PRT II OF
SECTION VIII OF THE ARMED SERVICES PROCUREMENT REGULATIONS AS IN EFFECT OH THE DA E F THE
(C) WITH THE CONSENT OF THE BUYER, AND SUBJECT TO ANY RIGHT OR INTEREST WHICH THE U. S. CAVE LAMENT
MAY HAVE THEREIN, THE SELLER MAY KEEP AT AM AGREED PRICE OR SELL AT AN APPROVED PRICE ANY COM'LE CO
ARTICLES, ON APPORTIONABLE TO THIS ORDER UNDER PARAGRAPH (0) (2) ABOVE AND WILL CREDIT OR PAY THE! AMOUNTS SO GWHIOCH IS REE Oft
OR RECEIVED TO THE PRICE OR COST Of THE WORK COVERED BY THIS ORDER OR AS THE BUYER OTHERWISE 01R CTS.
AS DIRECTED BY THE BUYER, THE SELLER WILL TRANSFER TITLE TO, AND MAKE DELIVERY OF. MY SUCH A TI LES.
ADE FOR
MATERIALS. WORK IN PROCESS OR OTHER THINGS NOT EO KEPT OR SOLD. APPROPRIATE ADJUSTME NT WILL
4""By
DELIVERY COSTS OR SAVINGS THEREIN.
(0) THE PROVISIONS OF THIS SECTION SHALL NOT LIMIT OR AFFECT THE RIGHT OF THE BUYER TO TEJMI~ATE
(E) SINCE THE BUYER'S CLAIM, IF ANY, MAY IN TURN BE REQUIRED TO BE PRESENTED WITHIN A SPEIIF ED TIME
AFTER TERMINATION, SELLER'S SLAIN HEREUNDER SHALL BE SUBMITTED PROMPTLY BUT IN NO EV(MT LATER TH N
B MONTHS FROM THE EFFECTIVE DATE OF TERMINATION OR SUCH EARLIER TIME AS BUYER MAY $P CiFY, UN ES EX-
TENDED IN WRITING BY BUYER UPON REQUEST OF THE SELLER MADE IN WRITING WITHIN SUCH PERIOD. UP )N AILURE
OF THE SELLER TO SUBMIT SUCH CLAIM WITHIN THE TIME ALLOWED. THE BUYER SHALL DETERMINiE, ON THE"BA 15 OF
INFORMATION AVAILABLE TO IT, THE AMOUNT, IF ANY, DUE TO THE SELLER BY REASON OF THE 7ERMINATIN.
I A. TOOL a (.
S
PEC
UNLESS OTHERWISE AGREED IN WRITING, ALL SPECIAL DIES, MOLDS, PATTERNS, JIGS AND OIXTURES UR 1314111
TO THE SELLER BY THE PURCHASER OR SPECIFICALLY PAID FOR BY THE PURCHASER. SMALL BE TIE PROPERTY F THE
PURCHASER, SHALL BE SUBJECT TO REMOVAL UPON COMPLETION OF THE ORDER AT THE PURCHASER!'S REQUES . MALL BE
USED ONLY IN FILLING ORDERS FROM THE PURCHASER, SHALL BE HELD AT THE SELLER'S RISK AID SHALL E KEPT
INSURED BY THE SELLER WHILE IN ITS CUSTODY OR CONTROL IN AN AMOUNT EQUAL TO THE REPLACEMENT C ST THEREOF
WITH LOSS PAYABLE TO THE PURCHASER.
RENEGOTIATION
DEEMED TO CONTAIN ALL THE PROVISIONS REQUIRED BY SECTION 104 OF SAID ACT.
II :HALL BF
(8) THE CONTRACTOR (WHICH TERM AS USED IN THIS CLAUSE MEANS THE PARTY CONTRACTING TO FURNISH THE
MATERIALS OR PERFORM THE WORK REQUIRED BY THIS CONTRACT) LGREES TO INSERT THE PROVISIONS OF THIS CLAUSE,
INCLUDING THIS PARAGRAPH (B). IN ALL SUBCONTRACTS AS REQUIRED BY SECTION 104 OF THE IRENEGOTI TI H ACT
OF 1951; PROVIDED. THAT THE CONTRACTOR SHALL NOT BE REQUIRED TO INSERT THE PROVISIONS OF THIS CLAUSE IN
ANY SUBCONTRACT OF A CLASS OR TYPE DESCRIBED IN SECTION 106(A) OF THE RENEGOTIATION ACT OF 1911.
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