INDEX TO GENERAL PROVISIONS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP81B00879R000100010074-3
• Release Decision: RIFPUB
• Original Classification: S
• Document Page Count: 35
• Document Creation Date: December 12, 2016
• Document Release Date: October 1, 2001
• Sequence Number: 74
• Content Type: REPORT

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INDEX TQ GENERAL PROVISIONS
Article No, Page No.
lv
DEFINITIONS-------- ----------------------------
2 ,
CHANGES----------------------------------------
3.
EXTRAS-----------------------------------------
4.
6
VARIATION IN QUANTITY--------------------------
----------- m -------------------------
,
EES?ONSIBILITY FOR SUPPLIES---------------------
7.
PAYiMENTS---------------------------------------
8,
A?"SIGNN?lENT 'OF CLA.IRIS---------------------------
9.
.ADDITIONAL B~ND SECURITY---------------- ------
10.
FEDERAL, STATE, AND LOCAL TAXES------------ ---
11.
DEFAULT ---- .:.-- ----------------------
12.
DISPUTi S-ia.--_ cY..r----------_--------_-----4 -.-L
13.
SOVIET CONTROLLED ARE.S-------------- .~..!..------
14.
EIGHT-HOUR LAW OF 1912------------------------
15.
WALSH-HEALEY PUBLIC CONTRACTS ACT--------------
16.
NONCISCRII\II:!:TATION IN EMPLOYMENT----------------
17.
OFFICIALS NOT TO BENEFIT- ----------------------
18.
COVENANT AGAINST CONTINGENT FEES---------------
19"
T.ERININATION FOR CONVENIENCE BF THE GOVERNMENT--
20,
AUTHORIZATION AND CONSENT ----------------------
21.
NOTICE AND ASSISTANCE 'REGARDING PATENT
INFRINGF1MENT--------------------------------
22.
BUY AMERICAN ACT-------------------------------
23.
FILING OF PATENT APPLICATIONS------------------
2).,
PATENT RIGHTS----------------------------------
2,,
REPORTING OF ROYALTIES-------------------------
26.
RIGHTS IN DATA - UNLIMITED---------------------
27.
MILITARY SECURITY REQUIREPNTS-----------------
28.
UTILIZATION OF SHALL BUSINESS CONCERNS---------
29.
EXAMINATION OF RECORDS-------------------------
A.
GRATUITIES--------------------------------------
31.
CONVICT LABOR----------------------------------
32.
NOTICE TO THE GOVERNMENT OF LABOR DISPUTES-----
33.
MATERIEL INSPECTION AND RECEIVING REPORT-------
34.
SUBCONTRACTS-----------------------------------
35.
SUBCONTRACTS-------------- ------------
36.
AIRCRAFT IN THE OPEN---------------------------
37.
INSPECTION AND AUDIT-------------
38.
GOVERNMENT"FURNISHED PROPERTY------------------
1
1
2
2
2
3
3
4
4
4
6
8
8
9
9
9
10
10
10
15
15
15
16
17
21
23
- 24
25
25
26
26
26
26
27
2
27
28
28 In J
T g n
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GENERAL PPOVISTONS
1. DEFINITIONS (ASPR 7-10361)
As used throughout this contract, the following terms shall have
the meanings set forth below:
(a) The term "Secretary" means the Secretary, or any Assistant
Secretary of the Department, and the head or any assistant head of the
Federal agency; and the term "his duly authorized representative" means
any person or parsons or board (other than the Contracting Officer)
authorized to act for the Secretary.
(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 at otherwise provided in this contract,
the quthorized representative of a contracting Officer acting within
the limits of his authority.
(c) Except as otherwise provided in this contract, the term
"subcontracts" includes purchase orders Under this contract.
2. CHANGES (ASPR 7-10M)
2 )
The Contracting Officer may at a.y time, by a written order, and
without notice to the sureties, make changes, within the general scope
of this contract, in any one or more of the following; (i) Drawings,
designs, or specifications, where the supplies to be furnished are to
be specially manufactured for the Government in accordance therewith;
(ii) method of shipment or packing; and (iii) place of delivery. If
any such change causes an increase or decrease in the cost of, or the
time required for the performance of any aprt of the work under this
contract whether change? or not changed by any such order an equitable
adjustment shall be made in the contract price or delivery schedule, or
both, and the contract shallI o modified in writing accordingly. Any
claim by the Contractor for adjustment under this clause must be asserted
within 60 clays from the date of receipt by the Contractor of the noti-
fication of chage; PROVIDED, however, That the Contracting Officer, if
he decides that the facts justify such action, may receive and act
upon any such claim assorted at any time prior to final payment under
this contract. Where the cost of property made obsolete or excess
as result of a change is included in the Contractor's claim for
adjustment, the Contracting Officer shall have the right to prescribe
the manner of disposition of such property, Failure to agree to any
adjustment shall be a dispute concerning a question of fact within the
meaning of the clause of this contract entitled "Dispute,," However,
nothing in this clause shall excuse the Contractor from proceeding with
the contract as changed.
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3. EXTRAS (ASPR 7-1033)
Except as otherwise provided in this contract, no payment for extras
shall be made unless such extras and the price therefor have been
authorized in writing by the Contracting Officer.
4. V RIATION IN QUANTITY
No variation in the quantity of any item called for by this contract
will be accepted unless such variation has been caused by conditions of
loading, shipping, or packing, or allowances in manufacturing processes,
and then only to the extent, if any, specified elsewhere in this
contract.
5. LiSPECTION (ASPR 7-105.5)
(a) all supplies (which term throughout this clause includes without
limitation raw materials, components, intermediate assemblise, and end
products) shall be subject to the inspection and test by the Government,
to the extent practicable at all times and places including the period
of manufacture, and in any event prior to acceptance.
(b) In case any supplies or lots of supplies are defective in
material or workmanship or otherwise not in conformity with the rcquiremetits
of this contract, the Government shall have the right eith to reject
them (with or without instructions as to their (disposition) or to
require their correction. Sup,ilies or Tots of supplies which have been
rejected. or required to be corrected shall be removed or, if permitted
or required by the Contracting .Officer,.corrected in place by and at
the expense of the Contractor promptly after notice, and shall not
thereafter be tandereci for acceptance unless the former rejection or
requirement of correction is disclosed.: If the Contractor fails promptly
to remove such supplies or lots of supplies which are required to be
removed, or promptly to replace or correct such supplies or lots of
supplies, the Government either i,(i) may by contract or otherwise replace
or correct such supplies and charge to the Contractor the cost occasioned
the Government thereby, or (ii) may terminate this contract for default
as provided in the clause of this contract entitled "Default." Unless
the Contractor corrects or replaces such supplies within the delivery
schedule, the Contracting Officer may require the delivery of such supplies
at a reduction in price which is equitable under the circumstances. Fail-
ure to agree to such reduction of price shall be a dispute concerning a
question Hof fact within the meaning of the clause of this contract
entitled "Disputes,"
(c) If any inspection or test is made by the Government on the premises
of the Contractor or a subcontractor, the Contractor without additional
charge shall provide all reasonable facilities and assistance for the
safety and convenience of the Government inspectors in the performance of
their duties. If Government inspection or test is made at a point other
than the premises of the Contractor or a subcontractor, it shall be at
the expense of the Government except as otherwise provided in this
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contract: PROVIDED, That in case of rejection the Government shall not
be liable for any reduction in value of samples used in connection with
such inspection or test. All inspections and. tests by the Government
zhall be performed in such a manner as not to unduly delay the work.
The Government reserves the right to charge to the Contractor any additional
cost of Government inspection and test when supplies are not ready at the
time such inspection and test is requested by the Contractor or when rein-
spection or retest is necessitated by prior rejection. Acceptance or
rejection of the supplies shall be made as promptly as practicable after
delivery, except as otherwise provided in this contract; but failure to
inspect and accept or reject supplies shall neither relieve the Contractor
frcm responsibility for such supplies as are not in accordance with the
contract requirements nor impose liability on the Government therefor.
(d) The inspection and. test by the Government of any supplies or lots
thereof does not relieve the Contractor from any responsibility regarding
defects or other failures to:meet the contract requirements which may be
discovered prior to acceptance. Except as otherwise provided in this
contract, acceptance shall be conclusive except as regards latent defects,
fraud, or such gross mistakes as amount to fraud.
.(e) The Contractor shall provide and maintain an inspection system
acceptanel to the Government covering the supplies hereunder. Records of
all inspection work by the Contractor shall be kept complete and, available
to the Government during the performouice of this contract and for such
longer period as may be specified elsewhere in this contract.
6. RESPONSIBILITY FOR SUPPLIES (ASPR 7-1(,'~ .6 )
Except as otherwise provided in this contract, (i) the Contractor shall
be responsible for the supplies covered by this contract until they are
delivered at the designated delivery point, regardless of the point of
inspection; (ii) after delivery to the Government at the designated point
and prior to acceptance by the Government or rejection and giving notice
thereof by the Government, the Government shall be responsible for the loss
or destruction of or damage to the supplies only if such loss, destruction,
or damage results from the negligence of officers, agents, or employees of
the Government acting within the scope of their employment; and (iii) the
Contractor shall bear all risks as to rejected sup,lies after notice of
rejection, except that the Government shall be responsible for the loss, or
destruction of, or damage to the supplies only if such loss, destruction or
damage results from the gross negligence of officers, agents, or employees
of the Government acting within the scope of their employment.
7. PAYM114TS (ASPR 7-103.'()'
. The Contractor shall be paid, upon the submission of proper invoices or
vouchers, the prices stipulated herein for supplies delivered and accepted
or services rendered and. accepted, less deductions, if any, as herein
provided. Unless otherwise specifiedrt, payment will be made an partial
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deliveries accepted by the Government when the amount due on such de-
liveries sc; warrants; or, when requested by the Contractor, payment for
accepted partial deliveries shall be made whenever such payment would
equal or exceed either '1,000 or 50 percent of the total amount of
this contract.
8. ASSIGHI_ENT OF CLAIl4S (ASPR 7-103.8)
(a) Pursuant to the provisions of the Assignment of Claims Act of
1940, as amended (31 U. S. node 20~, 41 U. S. Code 15) if this contract
provides for payments aggregating x1,000 or more) claims for monies due
or to become due the Contractor frr;m the Government under this contract
'
may be assigned to a bank, trust cp
mpany, 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 cr
reassignment shall cover all amounts payable under this contract and not
already paid, and shall not be made to more than one party, except that
any such assignment or reassignment may be made to one party as agent or
trustee for two or more parties participating in such financing. Notwith-
standing any provisions of this contract, payments to an assignee of any
monies due or to become due under this contract shall not, to the extent
provided in said Act, as amended, be subject to reduction or set-off.
(b) In no event shall copies of this contract or of any plans,
specifications, or other similar documents relating to work under this
contract, if marked "Top Secret," "Secret," or "Confidential", be
furnished to any assignee of any claim arising under this contract or to
any other person not entitled to receive the same: PROVIDED, That a
copy of any part or all of this con-era.ct so marked may be furnished, or
any information contained therein may be disclosed, to such assignee upon
the prior written authorization of the Contracting Officer
(c) The Contractor shall obtain thcUritten authorization of the
Contracting Officer prior tip the assignment of any rights under this
contract.
9. ADDITIONAL BOND SECURITY (ASPR 7-103.9)
If any surety upon any bone: furnished in connection with this contract
becomes unacceptable to the Government, or if any such surety fails to
furnish reports as to his financial condition from time to time as
requested by the Government, the Contractor shall promptly furnish such
additional security as may be required from time to time to protect the
interests of the Government and of persons supplying labor or materials
in the prosecution of the work contemplated by this contract.
10. FEDERAL, STATE, AND LOCAL TA.YsS (ASPR 11-401.1)
(a) As used throughout this clause, the term "tax inclusive date" means
the date of negotiated contracts and the date set for the opening of bids
for contracts entered into through formal advertising. As to additional
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supplies or services procured by modification to this contract, the term
"tax inclusive date" means the date of such modification.
(b) Except as may be otherwise provided in this contract, the
contract price includes all Federal, State, and local taxes and duties
in effect and applicable to th(3 controet on the tax inclusive date, except
taxes ',(other than Federal transportation taxes) from which the Government,
the Contractor, or the transactions or property covered by this contract
are then exempt. Unless specifically excluded, duties are included in
the contract price., and, if fr6ight is included in the contract price,
Federal transportation taxes are likewise included.
(c) (1) If the Contractor is required to pay or bear the burden
(i) of any tax or duty, which either was not to be included in the
contract price pursuant to the requirements of paragraph (b) or was
specifically excluded from the contract price by a provision of this
contract; or
(ii) of an increase in rate of any tax or duty, whether or not such
tax or duty was excluded from the contract price; or of any interest or
penalty thereon, the contract price shall be correspondingly increased;
PROVE)ED, that the, Contractor warrants in.wr.ting that no amount for such
tax, duty, or rate increase was included in the contract price as a contin-
gency reserve or otherwise; and PROVIDED further that liability for such
tax, duty, rate increase, interest, or penalty tax,was not incurred through
the fault or negligence of the Contractor or' its failure to follow instruc-
tions of the Contracting Officer.
(2) If the Contractor is not required to pay or bear the burger, or
obtains a refund or drawback, in whole or in part, of any tax, duty,
interest, or penalty which (i) was to be included in the contract price
pursuant to the requirements of paragraph (b), (ii) was included in the
contract price., or (iii) was the basis of an increase in the contract
price, the contract price shall be correspondingly decreased or the amount
of such relief., .refund., or drawback shall' be paid to the Government, as
directed by the Contracting Officer. The contract price also shall be
correspondingly decreased. if the Contractor, through its fault or negli-
gence or its failure to follow instructions of the Contracting Officer,is
required to pay or bear the burden, or does not obtain a refund or draw-
back.of any such tax,, c'.uty, interest, or penalty. Interest paid or credited
to the Contractor incident to a refund of taxes shall inure to the benefit
of the Government to the extent that such interest was earned a.ft,.xT the
Contractor was paid or reimbursed by the Government for such taxes.
(3) Invoices or vouchers covering any adjustment of the contract price
pursuant to this paragraph (c) shall set forth the amount thereof as a
separate item and shall identify the particular tax involved.
(4) Nothing in this paragraph,(c) shall be applicable to social
security taxes; net income taxes; excess profit taxes; capital stock taxes;
Federal transportation taxes, except changes in the rate thereof., in-
cluding repeal; pertaining to shipments from the Contractor to the
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Government; unemployment compensation taxes; or any State and, local
taxes, except those levied on or measured by the contract or sales price
of the services or completed supplies furnished under this contract,
including ,cross income taxes,;grbss receipts taxes, sales and use taxes,
excise taxes, or franchise or occu~iation taxes measured by soles or
receipts from sales.
(5) No adjustment of less than $l?0 shall be made in the contract
price pursuant to this paragraph.
(d) Unless there does not exist any reasonable basis to sustain an
exemption, the Government agrees upon request of the Contractor, without
further liability except as otherwise provided in this contract to
furnish evidence appropriate to establish exemption from (i) any Federal
tax, which the Contractor warrants in writing was excluded from the
contract price, or (ii) any State or local tax; PROVIDED that evidence
appropriate to establish exemption from duties will be furnished, and
Government bills of lading will be issueCi only at the discretion of the
Contracting Officer. In addition, the Contracting Officer may furnish
evidence appropriate to establish exemption from any tax that may,
pursuant to this clause, give rise to either an increase or decrease in
the contract price.
(e)(1) The Contractor shall promptly notify the Contracting Officer
of all matters pertaining to Federal, State, and local taxes and duties
that reasonably may result in either an increase or decrease in the
contract Price.
(2) Whenever an increase or decrease in the contract price may be
required under this clause the Contractor shall take action as directed
by the Contracting Officer, and the contract price shall be equitably
adjusted to cover the costs of such action, including any interest, pen-
alty, and reasonable attorney's fees.
11. DEFYMT (ASPR 7:.103.11)
(a) The Government may, subject to the provisions of paragraph (c)
below, by written notice of default to the Contractor, terminate the
whole or any part of this contract in any one of the following circum-
stances:
i(i)If the Contractor fails to make delivery of the supplies or to
perform the services within the time specified herein or any extension
thereof; or
(ii) if the Contractor fails to perform any of the other provisions
of this contract, or so fails to make progress as to endanger performance
of this contract in accordance with its terms, and in either of these two
circumstances does not cure such failure within a period of 10 days (or
such longer period as the Contracting Officer may authorize in writinE)
after receipt of notice from the Contracting Officer specifying such
failure.
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N In the event the Government terminates this contract in whole or
in part as provided in paragraph (a) o' this clause, the Government may
procure, upon such terms and i4 suph manner as the Contracting Officer
may deem appropriates supplies or services similar to those so terminated,
and the Contractor shall be l~ai.bl0 to the Government for any excess
costs for such similar supplies or services: PROVIDED, That the Con-
tractor shall continue the performance of this contract to the extent
not terminated under the provisions of this clause.
(c)Except with respect to defaults of subcontractors, the Con-
tractor shall not be liable for any excess costs if the failure to
perform the contract arises out of causes beyond the control and without
the fault or negligence of the Contractor. Such causes may include, but
are not restricted to, acts of God or of the public enemy, acts of the
Government in either its sovereign or contractual capacity, fires, floods,
epidemics, quarantine restrictions, strikes, freight embargoes, and u
unusually severe weather; but in every case the failure to perform must
be beyond the control and. without the fault or negligence of the
Contractor. If the failure to perfqrm is caused by the default of a
subcontractor, and if such default arises out of causes beyond the control
of both the Contractor and su:bcontra.ctor, and without the fault or
negligence of either of them, the Contractor shall not be liable for any
excess costs for failure to perform,`tinioss the supplies or cervices to
be furnished by the subcontractor were obtainable from other sources in
sufficient time to permit the Contractor to meet the required delivery
schedule.
(d) If this paragraph (a) of this clause, the Government, in addition
to any other rights provided in this clause, may require the Contractor to
transfer title and deliver to the Government, in the manner and to the
extent directed by the Contracting Officer, (i) any completed supplies, and
(ii) such partially completed supplies and materials, parts, tools, dies,
jigs, fixtures, plans, drawings, information and contract rights (herein-
after called 'tma.nufacturing materials") as the Contractor has specifi-
cally produced or specifically acquired for the performance of such part
of this contract as has been terminated.; and the Contractor shall, upon
direction of the Contracting Officer, protect and. preserve property in
possession of the Contractor in which the Government has an interest,
Payment for completed supplies delivered to and accepted by the Government
shall be at the contract price. Payment for manufacturinr? materials
delivered to and accepted by the Government and for the protection and
preservation of property shall be in an amount agreed upon by the Con-
tractor and Contracting Officer; failure to agree to such amount shall be
a dispute concerning a question of fact within the meaning; of the clause
of this contract entitled "Disputes."
(e) If, after notice of termination of this contract under the
provisions of paragraph (a) of this clause, it is determined that the
failure to perform this contract is due to causes beyond the control and
without the fault or negligence of the Contractor or subcontractor pur-
suant to to_the provisions of paragraph (c) of this clause, such notice of
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default shall be deemed to have been issued pursuant to the clause of
- this contract entitled "Termination. for Convenience of the Government,"
and the rights and obligations of the p