EXHIBIT ONE TO PURCHASE ORDER NO. 25-30904

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP81B00878R001400090054-3
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 4
• Document Creation Date: December 20, 2016
• Document Release Date: September 13, 2002
• Sequence Number: 54
• Content Type: MISC

Approved Fort-Release 2006/11/09: CIA-RDP81 B008~8 001400090054-3
F iIBlT GTE TO PURCtUSE ORDER DO. 25_-:302*
set forth on the face and printed o ti.e re- eree side of Purchase Order Tlo. v5-349Ol3
provided, however, that in the even ; of it c',t is i ~e:Fac r i t e conditions printed on. ? he
reverse side of subject purchase a CI : M. 25-330904, and the following c onditio ia,
the latter steal a. govern and p.: e'-vsi 1.
g ro~ndi-rdomle in a"a05,i?t-4on to othe b p; isianz
The parties hereto agree to the f o % l owis
A. Allowable Cost and P ' rr.ent
Purchase Order condition 2 "Facet;".
is onec'stion supersedes and replaces
(a) For the perforce of ti-xis muboontrs3ct, the Buyer shall pay to the
Seller the cost thereof deter. ect by the der to be allowable in accord-
ance with part 3 of section XV of the Arm Services Procurement gu ..tic
as in effect on the date of this subcontract (hereinafter referred to as
"Allowable Cost"). It being understood and agreed, vrithout uniting the
generality of the foregoing, the following shall be considered as allowable
items of cost hereunder when incurred or paid by the Seller a- ,A ?d n
necessary and required a rd used for the perform nce of the work be :'e E.er: '
(1) Salaries and Wages. Expenditures by the Seller for the splariess
and wages of its personnel and borrowed personnel directly engaged in the'
salaries and wages or vacation and sick leave pay of its perao e . pu u t.
to the established practice of the Seller, plus Federal and State social
security taxes paid by the Seller and properly allocable to such s .laries
and wages : Provided, however , that the premium portion of overti wage
payments shall be an allowable Item of cost hereunder only if and to the
extent that the overtime work for which such payments are made s.l have
been expressly authorized in writing by the i3uym . .
(2) Materials and Services. Expenditures by the Seller for such
materials,supplies, apparatus, tooling, equipment, and other articles
(including processing and testing thereof by others and rerttal of
apparatus and equipment from others), properly allocable to perfaAaanse or
the vork hereunder and for the services of others not reimbursed under
subparagraph (1), as are necessary for performance of its ties s
hereunder.
(3) Communication am Shipping. Expenditures by the Seller
necessary for performance of its undertaking hereunder for long-distance
telephone calls., tel egrar , calSegrams , red f ogr .s, postage, freight,
express, and drayage.
(4) Travel. Expendituress the Seller for transportation ofd the
persons directly engaged in the perfor m nce of the work hereunder as
approved by the Buz, er, plus, as provided herein, either reasonable actual
subsistence expenses or per diems: Provided, that the expense for trans-
nortsatiorn hereunder by motor vehicle. other than cowman carrier or renter.
au#, abi,.le, shall be re i stbursea on an actual, cost basiss , or at tb~ Seller # s .
option, an a mileage basis at a rate not exceeding Bevan (7) cents per mile
ensess of ss,. cl tx s rt .tIo .
per vehicle, in lieu of the actual a=
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P"e
EXHIBIT ONE TO PURCHASE 0BD V O. 25-30901'
(5) Subcontracts. Expenditures by the Seller r ^?eset t: r l Win,
to subcontractors peri oming any contract, work la ou dwr.
(6) flsnvernii~etat O or Rented Equipment. E peMi.tures by '41-e Seller
hexeu er for protection and me ince of Oox rrit tt-?oi ed or b f rented
equipment.
(7) Rearrangement or Relocation. l tviths ng para&;rvph. ;(a) of the
clause hereof entitled "Cove: nt Property, " e aendit zres by t 1V Se116r
for rearrangement or relocation of facilities o - plazxt sites or r restoring
such facilities or plant sites to ~ubstantia` .y the sme conchti i as pr .er
to such rearm nt or relocation: Provid ., homes that in the event
the Seller elects to retain the benefit "_' a2c a ..:I.o
reimbursement by the *Ba yer for its expenditure therefor Ie e u ~ by
negotiation between the Sell er? =A the Bt r to be f , aT--c ; X e_^.
() Overhead. Such sw,mts r r ;renting Se?-U.-or' over, ep eats as
are equal to the percentage, set forth herein, of the a tints w .ea. foz?
actual and direct s e Les and wa eO of personnel (b-at e_ l save !of' pre- .
paid for over lip hours worked by dire(.-t labor a . oxmLiM ' e of federal O d
State social se urity taxes) allc - ed as items of coat L. ' er thls .a e, ` It
having been deter:wined. by the Buyer that, for tLe pu?pose of -th su'rcc x t act,
the. foregoing conputation is reasonable and that swots so co d accMatel ;?
reflect the overhead costs properly allocable to vc p :r ormal ij. a3 r tht h
subcontract.
(b) Seller sba1.1 exercise dui: dil.ig ince to secure material a aid service
at the most advantageous prices available, hin-Lrig clue re .. to 4ii .ity.
(+ ) once eh month (or at more frent .intervals, if opprovby
the Buyer) the Seller may sub nit to em authorized repreoen tiv s ' of the B r,
in such foam and reasonable detail as such represert^ .i- e v c1,=. e, an
invoice suppoited by a ateterrat of c3at tncu reed by the Seller In the pe r--
fo. ee of this subcontract and. claimed to co tit to "Au a:amble' cost."
Each state nt of cost a hal_`i. be certified by an offs. or of her onciIb1
official of the Sel.l.er authorized by it t certify vucb o?i..
(d.) As promptly as may be practicabl.a- after receipt of each
and- statement of cost, the Buy r shall; except as here fter
subject to. the pro s R ~:,~ b of P&` 'a7 (e) be--low, make a? rya at. *nreoai
approved by the Buyer. M ter t of p i ty (80) peg-centt of the total
estimated cost of pea fo wrnce of this subcontz t, as frori ti o time
eamesded, further pair?ent on account of "Allowable Cosh vi wi .helc4
until a reserve of eit' er (i) one (1) parent of such toicl enti&ct __ ccist.
or (U) $100,000, :ahIche,rer aunt is shall have been set aside; such
-
reserve or the belwi tl creof to be retained. until the excacut-io
delivery of a 7.e e by the Seiler ris provided in p?^ h (.f)
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of cost shall be submi.tt .' thrugi Said A .itor. Each payment there fore:
male shall be
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EXHIBIT ONE TO. PURCHASE ORDER 140. 25-30904
Seller as the "Completion n v o [? := an J: cG ca s .l
be submitted by the Sell .. ,;y :c ct is ol1o ra
completion of the word wider LhU- l t-- In no event l .t r
than one (1) year (or such longer ; . = - . .u~ ier may, his
w
discretion, approve in we, Ung) V-~ of such con, iett : ,' and.
following compliance by the Sep le z pro,r:.aions of this
subcontract (inclul.ing, without provisions s el ating to
patents and the provisions of .pars. () of this clause), the
Buyer shall as promptly as may be pro . caUe pa - any balance of
on preceding inv ices. on rece tp r of I:b e le . e.r, r6 ' .natc d by the
subjecFi to reduction for c r- apayi cants or 1. 3 .i . Swce .or i.p}:ieipca~wm n
w
of such units not to constitute "1:':-'~ lso L
subject to reduction to the extent of amounts ineltzs3.ed in the :'e? ated
invoice and statement of cost which are fe.u i4 by the B ,er on -,,-he basis
condition precedent to final payment under this subcontract, a rely
discharging the Buyer, its officers, agents., and employees of and from
all liabilities, obligations, and claLmo arm ising out of or under this
subcontract, subject only to the follovix~g exceptions:
(1) Specified claims in s3 toted. amounts or in estimated amounts
where the amounts are not susceptible of enact statement by the Seller.
(2) Claims, together with reasonable eacpensc s incidental thereto,
based upon the liabilities of the Seller to third pies arising out of
the performance of the sun contract, which are not known to the $ ler on
the date of the execution of the release, and of which the seller . gives
notice in , .ting to the der not more than six (6) yep::?a after the
date of the release or the date of any notice to the Se l.er~ that the
Buyer is prepared to melee final pas t, 'whichever is eaa~rl ier.
(3) Claims for reimbureemnt of costs (other than expenses of the
Seller by reason of its indemnification of the .'Buyer :against patent
liability), including reasonable expenses incidental thereto, is c r
by the Seller under the provisions of the subcontract relating to
patents.
(g) The Seller agrees that any refunds, rebates, or. cats, 4=41-ding
any interest thereon) accruing to or received by the Seller which 'arise out
of the performance of this subcontract and on account of which thr Seller
has received reimbursement shall. be paid by the Seller to the Buyer. .'ha
Seller shall execute and deliver at the time of and' as a coa4;k.04 preeede2at
to final payment under this subcontract, an assignment to the Bar of
refunds, rebates, or credits (including any interest thereon) .>a oto: cut
of the performance of this subcontract, in form and substance 'sati s `actox7
to the fir. X easo .bl a expanses incurred by. the Seller for the-Purpose of
securing any such refunds, rebates or credits shall constitute " lovable
(r) The Seller shall execute and deliver at the time of an as a
"Allowable Cost. "
Cost" when approved by the Buyer.-
be a~ll, inelua ed in determining the aamunt payable under 'this su'peontratet
which would constitute "Allowable Cost" under the provisions of V4is clause
B P
(h) ,Any cost incurred by the S 7.ler under the ter of.this subcr ntract
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 Approved FolRRelease 2006/11/09: CIA-RDP81 B00 7; 8001400090054-3
9
EXHIBIT ONE TO PU C 'siSE ORDER VIO. 25-30904
notwithsta i.ing any provisions contained. in. the s pecif'icatio: t or
other documents incorpo.rate 1 -1 t ;;. by refere tee} desig-
nating servicee to be b by the
a' =r Gtr e:+tene! ,
Ase1ff
,E2n Prohibit:..
Neither this purchase order, nr s
hereunder, shall be transferred
:?}Ipiaees
he.eth, nor any claim w-isis
Seller to any other person.
The following clauses, (1) thro:zz;h (15 , mferri g to the Armed. Se-vices
Procurement Regulation (ASPR) or Air Force Rroeurement I truetios s (AI'PT)
as expressed on the date of this subcontract evre incorporated herein by
reference and mutually agreed by the parties hereto to be ;art of this
purchase order as fully as if set out in couple>te test. T16-- terms shall be
construed to. show the proper relationship between y'er and seise
(1) Tee %ation - .ASPR B-704 (This condition supersedes and ie .lacers
P u r c h a s e Order Condition 9, ' ort ~sation".-)
(2) Government Property - AS'.~ -1?' AF'z 13-506
(3) Records - ASPR 7-203.7
(4) Excusable Delays - APR 7-203.11 and. AFFI 7--303.1.0
(5) Convict Labor - ASPR 12-203
(6) Limitat i. of Cost - AS 'R 7-203.3
(7) Reporting of Royalties - ASPR 9-110
(8) Copyrights - ASPR 9-202
(9) Officials Not to 'Benefit - ASPIC 7-103.19
(10) Covenant Against Continent Fees - APR 7-103.20
(ii) insuranc Liability to Third Persons -? t s 7-20-3.22 and. Al l 7-40.25,2,q-
(12) Reproduction and Use of Technical. Data - ASPR 9-112
(13) Patent Rights -- ASPR 9-107.1
(14) Authorization and Consent Re rc ismg Patents - AP; 9.102.2
(15) Military Security Requir lits - ArTPI 7-40.7 (This condition super ed.
v.nd replaces Purchase Off. r Ce ndi ,ion
3.3. (b) `Military Security Requirrox-enta"
D. Seller shall not, without the prior written consent of Buyer, d.is e
inroi, ation relative to this other, except as may be required to ipsux
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