GENERAL PROVISIONS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP61-00763A000100080152-8
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 41
• Document Creation Date: December 9, 2016
• Document Release Date: August 18, 2001
• Sequence Number: 152
• Publication Date: July 14, 1958
• Content Type: REGULATION

Approver Release 2001/08/30 : CIA-RDP61-3A000100080152-8
INDEX TO GENERAL PROVISIONS
Article No..
Page No..
1.
DEFINITIONS-----------------------------------
1
4.
VARIATION IN QUANTITY--------------------------
2
r
5.
6.
DES:?O NSIBILITY FOR SUPPLIES-----------------------
3
-
----- 7 --------------
-3
8.
A:`>SIGN1IiENT;'oF CLA,IlUIS- .-.-________-__
4
9.
ADDITIONAL B-ND SECURITY-----------------------
4
10.
FEDERAL, STATE, AND LOCAL TAXES------------ ---
It
11.
DEFAULT-------------- --------------------------
6
1.2.
DISPUTES---------------------------------------
8
13.
SOVIET CONTROLLED AREAS------------------------
8
14.
EIGHT-HOUR LAM OF 1912-------------------------
9
15.
t-TALSH-HEALEY PUBLIC CQNTRACTS ACT--------------
9
16.
NONCISCRNLIiTATION IN 4IPLOYMENT________________
9
17.
OXEICIALS NOT TO BENEFIT-----------------------
10
18.
COVENANT AGAINST CONTINGENT FEES.---------------
10
19,
T"13R1MIINATION FOR CONVENIENCE OF THE GOVERNMENT--
10
20,
AUTHORIZATION AND CONSENT -----------------------
15
21.
NOTICE AND ASSISTANCE REGARDING PATENT-
22.
IUFRINGEMENT--------------------------------
BUY AMERICAN ACT-------------------------------
15
23
FILING OF PATENT 12PLICATIONS ------------------
16
24.
PATENT RIGHTS----------------------------------
17
25,
REPORTING OF ROYALTIES-------------------------
21
26,
RIGHTS IN DATA - UNLIMITED---------------------
23
27.
MILITARY SECURITY REQUIREMENTS------------------
24
28.
UTILIZATION OF SHALL BUSINESS CONCERNS---------
25
29.
EXAMINATION OF RECORDS -------------------------
25
30.
GRATUITIES --------------------------------------
26
31.
CONVICT LABOR ----------------------------------
26
32.
NOTICE TO THE GOVERNMENT OF LABOR DISPUTES-----
26
330
MATERIEL INSPECTION AND RECEIVING REPORT-- ----
26
34.
SUBCONTRACTS -----------------------------------
27
35.
SUBCONTRACTS -----------------------------------
27,
37.
--1N-- THE E1PEN _ :--..--
INSPECTION AND AUDIT---------------------------
28
38.
GOVERNT,4ENT FURNISHED PROPERTY------------------
28
39.
SUPERSEDING SPECIFICATIONS---------------------
35
4O.
DELAY IN DELIVERY OF DATA----- -----------------
35
41.
QUALITY CONTROL SPECIFICATION------------------
35
42.
ADDITIONAL TAX PROVISION-----------------------
35
43.
SHIPMENTS ------------------------ mm ------ m --- m-
36
44.
TIME FOR ISSUANCE OF PRODUCTION LISTS----------
37
45 -Appr rn"eIung 299t/0.8/S9--C&Fi -REf P@t- 08 52-8i
46. CERTIFICATE OF ACCEPTANCE------------- ----- 37 w
 Approve l.Fd Release 2001/08/30 : CIA-RDP61-OQ-WA000100080152-8
GENERAL PROVISIONS
1. DEFINITIONS (ASPR 7-103.1)
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 a?_ency; and the term "his duly authorized representative" means
any person or persons 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 i.s.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 pre ricled in this contract, the term
"subcontracts" includes purchase ordlers under this contract.
2. CHANGES (ASPR 7103.2)
The Contracting Officer may at any 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 changed or not changed by any auch order an equitable
adjustment shall be made in the contract price or delivery schedule, or
both, and the contract shall b e modified in writing accordingly. Any
claim by the Contractor for adjustment under this clause must be asserted
within 60 days 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 asserted 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 "Disputep," However,
nothing in this clause shall excuse the Contractor from proceeding with
the contract as changed.
FP or PR Approved For Release 20'01%08 30'? CIA-RDP61-00763A000100080152-8
lL July 5o ~~1..
 Approv t Release 2001/08/30 CI P614&R 3A000100080152-8
?-- -- TLI.!- SS ASPR 7--103 a3~
Except as otherwise provide an his-contra-et no payment for extras
shall be made unless such extras and the price there or avciagn--____
it-ing by the Contracting Officer -
4. VARIATION 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,, shijpirig, or packing, or allowances in manufacturing processes,,
and then only to the extent, if any, specified elsewhere in this
contract.
5. INSPECTION (ASPR 7-105.5)
(a) all supplies Nhich term throughout this clause includes without
limitation raw raatexials, components, intermediateassemblise, 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 requiremebts
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. Supplier or lots 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 tendered 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) 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 contr^ct 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
quest-Lon of 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 promises
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
FP or PIS roved For Release 2001/08/30" PA-RDP61-00763A000100080152-8
14 July S -2-
 ApproveUmFief Release 2001/08/F DP61-DQWMA000100080152-8
contract: PROVED, That in case of rejection the Government shall not
be liable for any reduct?ori in value of samples used in connection with
such inspection or test. All inspections and tests by the Government
shall be performed in such a mariner as not to unduly delay the work?
The Government reserves the rig:lt to charge to the Contractor any additional
cost of Government inspection Arad 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
from responsibility for such supplies as are not in accordance with the
contract requirements nor impope 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 el~cept as regards latent defects,
fraud, or such gross mistakes as amount to Baud.
(e) The Contractor shall provide and maintain an inspection system
acceptabel 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 performance of this contract and for such
longer period as may be specified elsewhere in this contract.
6e RESPONSIBILITY FOR SUPPLIES (ASPR 7-10.6)
Except as otherwise provided in this contract, (i) the Contractor shall
be responsible for the supplies covered by this contract until they are
deliverer? at the designated delivery point, regardless of the point of
inspection; (ii) after delivery to the Govdrnment 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.
TS--( PR 7-1O3 -Y )
The Contrac o be paid, upon the submission of proper invoices or
vouchers, the prices stipula ec for supplies delivered and accepted
or services rendered and accepted, less der tip if any, as herein
provided. Unless otherwise specified,j, payment will be m6 , prtial
FP or PR
lL July .8Approved For Release 2001/081 4-RDP61-00763A000100080152-8
 Approved Release 2001/08/30: CIA-RDP61-OWWA000100080152-8
2TRET
ecel lted- by the Government ten- the- amount due -un-sueh de-
accepted partial deliveries shall'Ue made whenever such payment would
equal or exceed either $1,000 or 50 percent of the total amount of
thiscontract.
8. ASSIGN. ENT OF CLA114S (ASPR 74U ,8)
(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 $1,000 or more,, claims for monies due
or to become due the Contractor- from the Government under this contract
may be assigned to a bank, trust company;, or other financing institution,
including any Federal lending agency, and may thereafter be further
assigned and re-assigned to any such institution. Any such assignment or
reassignment shall cover all amounts payable under this contract and not
already paid., and shall not be made to more than one party, except that
any such assignment or reassignment may be made to one party as agent or
trustee for two or more parties participating in such financing. Notwith-
standing any provisions of this contract., payments to an assignee of any
monies due or to become due under this contract shall not, to the extent
provided in said Act, as amended., be subject to reduction or set-.off.
(b) In no event shall copies of this contract or of any plans,
specifications, or other similar documents relating to work under this
contract, if marked "Top Secret," "$ecret," 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 contract 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 therritten authorization of the
Contracting Officer prier to the assignment of any rights under this
contract.
9. ADDITIONAL BOND SECURITY (ASPR 7-103.9)
If any surety upon any bond 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 TAXES (ASPR 11-101.1)
(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
FP or PRq proved For Release 2001/08/30 .!CIA-RDP61-00763A000100080152-8
14 July 56 r ;:L I
liveries so warrants,;--or-,.when requested by the Contractor., payment for
 ApprovedRelease 2000'CIA-RDP61-OWA000100080152-8
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 the contract on the tax inclusive date, except
taxes,(other than Federal transportation taxes) from which the Government,
the Contractor, or the transactions or_p?operty covered by this contract
are then exempts tfnless sliec#ifically excluded, duties are included in
the contract price, and, if freight' 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;
PROVIDED, that the Contractor warrants in writing 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 nQt 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 burder, or
obtains a refund or drawback, in whole or in part, of any tax, duty,
interest, or )enalty which (i) wasto be included in the contract price
pursuant to the requirements of paragraph (b), (ii) was includes? 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 araount
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-,
gency 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, duty, 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 aftc,r 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
FP or PR
14 July 5~pproved For Release 2001/08/30 IA-RDP61-00763A000100080152-8
 Approved hppkelease 2001/08/30 : &1Wft1-0000100080152-8
Government; unemployment compensation taxes; or any State and local
taxes, except those levied on or measured by the dontract or sales price
of the services or completed supplies- furnished under this c ontract$
including gross income taxes, gross receipts taxes, sales and use taxes,
excise taxes, or franchise or occupation taxes measured by sales or
receipts from sales.
(5) No adjustment of less than $$1Q0 shall be made in the contract
price pursuant to this ptrdgrapht
(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 tqestablish exemption from (i) any Federal
tax, which the Contractor warrants in waiting 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 issued only at the discretion of the
Contracting Officer, In addition, the Contracting Officer may furnish
evidence appropriate to establish exemption frcm 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 are increase or decrease in the
contract ..,rice.
(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., pori-
alty, and reasonable attorney's fees'.
11. DEFAULT (IASPR 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 loner period as the Contracting Officer may authorize in writing)
after receipt of notice from the Contracting Officer specifying such
failure.
FP or PR
14 July 58
Approved For Release 2001/08/3k-,ETA-RDP61-00763A000100080152-8
 Approves $ Release 2001 /08/3G _ f P61-( A0001.00080152-8
N In the event the Government terminates this contract in whole or
in part as provided in paragraph (a) of this clause, the Government may
procure, upon such terms and in such manner as the Contracting Officer
may deem appropriate) supplies or services similar to those so terminated,
and the Contractor shall be liable to the Government for any excess
costs for such similar supplies or services: PROVIDED, That the Con-
tractor shill 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 Waul.t 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 perform is caused by the default of a
subcontractor, and if such default arises out of causes beyond the control
of both the Contractor and subcontractor, and without the fault or
negligence of either of them, the Contractor shall not be liable for any
excess costs for failure to perform, unless the supplies or services to
be furnished by the subcontractor were obtainable from other sources in
sufficient time to permit the Contractor to meet the required delivery
schedule.
(Cl) if this paraf~?raph (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 suppli.l.s and materials, parts, tools, dies,
jigs, fixtures, plans, drawings, information and contract rights (herein-
after called "manufacturing 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 manufacturing; 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
FP or PR
Approved For Release 2001/0 RDP61-00763A000100080152-8
 Approvet6W Release 2001 -IA-RDP61-%?' A000100080152-8
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 oblig-ations of the;pn.rties hereto shall in such event
be governed by such clause. Except as otherwise provided in this contract,
this paragraph (e) applies only if this contract is with a military
department
(f) The rights and remedies of the Government provided in this
clause shall not be exclusive,and are in addition to any other rights
and remedies provided by law or under this contract.
12. DISPUTES (ASPR 7-103,12)
(a) Except as otherwise provided in this contra,.ct, any dispute
concerning a question of fact arising under this contract which is not
disposed of by agreement shall:be decided by the Contracting Officer,
who shall reduce his decision to w'iting and mail or othurwise furnish
a copy thereof to the Contractor. The decision of the Contracting Officer
shall' be final and conclusive Unless, within 30 days from the date of
receipt of such copy, the Contractor mails or otherwise furnishes to
the Contracting Officer a written appeal addressed to the Secretary. The
decision of the Secretary or his du.y authorized representative for the
determination of such appeals shall:be final and conclusive unless
determined by a court of competent jurisdiction to have been fraudulent,
or capricious, or arbitrary, or so grossly erroneous as necessarily to
imply bad fiath, or not supported by substantial evidence.. In connection
with any appeal proceeding under this clause, the Contractor shall be
afforded an opportunity to be heard and to offdr evidence in support of
its appeal, Pending final decision of a dispute hereunder, the Contractor
shall proceed diligently, with the performance of the contract and in
accordance with the Contracting Offigerts decision.
(b) This "Disputes'1 clause does not preclude consideration of law
questions in connection with decisions provided for in paragraph (a) above:
PROVIDID,"..That- nothing in this contract shall be construed as making final
the decision of any administrative official, rppresenta.tive, or board
on a question of law.
13. SOVIET CONTROLLED AREAS (ASPR 6-403)
(a) The Contractor shall not acquire for use in the performance
of this contract any supplies or services originating, from sources within
Soviet-controlled areas, as listed in the Schedule of this contract, or
from Hong Kong or Macao, without the written approval of the Contracting;
Officer.
(b) The Contractor agrees to insert the provisions of this clause,
including the Soviet-controlled areas listed in the Schedule and this
subparagraph (b), in all subcontracts hereunder.
FP or PR
14 July 5Approved For Release 2001/08/30.8CIA-RDP61-00763A000100080152-8
 Approve Release 2001/0> y-RDP61-d A000100080152-8
14. EIGHT-HOUR IT OF 1912 (i SPR 12-303.1)
This contract, to the extent that it is of a character specified in
the Eight-Hour Law of 1912 as ` amended (40 U. S. Co'e 32)4--326) and is not
covered by the Walsh-Healy Public Contracts Act (41 U. S. Code 3S-45),
is subject to the following; provisions and exceptions of said Eight-
Hour Law of 1912, as amended, and to all other provisions an( exceptions
of sJ3 -RDP61-00 A000100080152-8
I t warrantB-A-h rac przc not -nnd-w ll
9) WH n ran e
not include any charge or reserve for insurance (including self-insurance
or destruction of aircraft
l
oss
funds or reserves) covering damage to or
h (a) hereof.
r
Officer a tatement of:
c
put all aircraft in the best possible order, and furnish to the Contracting
en
In sop ,
h a' cr^ft from further damage separage damaged and undamaged aircraft,
su
e
the open caused by any of the perils set forth In parag
(e) In the event of damage to or loss or destruction of aircraft
the Contractor shall take all reasonable steps to protect
t
(i) the lost, destroyed, or damaged aircraft;
(ii) the t e and origin of the loss, destruction, or damage;
(iii) all know interests in commingled property of which aircraft
(iv) the insurance\if any, covering any part of the interest in
in the open are a par
The Contractor shall be reimb. by for expenditures made by it in
performing its obligations and this paragraph, to the extent approved
by the Contracting Officer and th's contract shall be modified in
such commingled property,
writing accordingly.
be modified in
elect to terminate
aircraft, and
in that event the rights of the parties shall be as provi
entitled Termination for Convenience of the Government.
this contract as to any such lost, destroyed, or damage
writing accordingly. Alternatively, the Government mad
an dquitable adjustment
and in the time
required for its performance, and this contract sha
shall be made in the emuunt due under this contrac
e Contractor to the condition
. If the Government
requires the aircraft to be replaced or restored;
in which it was immediately prior to such damag
be replaced by the Contractor or restored by
pr damaged due to any of the
he Government may, unless
require that such aircraft
otherwise provided in this contract, elect
perils set forth in paragraph (a) hereof,
delivery to the Government any
aircraft in the open is lost, destroyed,
(f) If prior to acceptance by an
ed in the clause
(g) In the event the Contractor is at any time reimburse or com-
pensated by any third person for any damage to or loss or destruct ion of
any aircraft in the open caused by any peril set forth in paragra (a)
hereof for which the Contractor has been compensated by the Governor t, it
shall equitably reimburse the Government.. The Contractor shall do no ing
to prejudice the GovernmentTs rights to recover against third parties r
any such loss, destruction or damage and, upon the request of the Contra ing
Officer, shall at the Governmentts expense, furnish to the Government all
reasonable assistance and cooperation (including the prosecution of suit and
the execution of instruments of assignement or subrogation in favor of the
r~ cover
GovTcrnment in obtaining
FP or PR
14 July 58 -29-
Approved For Release 200 f lA-RDP61-00763A000100080152-8
 Approved Fc elease 2001/08/30 Cl 0076 1400100080152-8
414ny -loss or- destruction of, or damage- t43--pr,
po ^ty- urr~ Iced-____
by the Governmen wt? -_:ev= ocl by the clause of this contract
entitled "Government-Furnished, Property t the ext
ant-that such ci2,use
r r zr ; _ +_
rm ~
3c
bl
_
~pp
a
y
(i) Any loss, or dostrugt cn of, or damage to, aircraft occurring
in connection with operations of.said aircraft will be governed by the
clause of this contract entitled."Flight Risk," to the extent that such
clause is, by its terms, applicable,
37. INSPECTION AND AUDIT (AFPI 7-4023)
(a) The Contractor agrees that its books and records and its plants,
or such part thereof as may be engaged in the performance of this contract,
shall at all reasonable times be subject to inspection and audit by
any authorized representative of the Department,
(b) The Contractor shall cause a like provision to be included
in all subcontracts hereunder.
38. GO JERMI1ENT:-FURNISHED PROPERTY (ASPR 13-502)
(a) The Government shall deliver to the Contractor, for use in
connection with and under the terms of this contract, the property described
in the Schedule or specifications, together with such related data and
information as the Contractor may request and as may reasonably be required
for the intended use of such property (hereinafter referred to as
"Government-furnished Property").'.; The delivery or performance dates for
the supplies or services to be furnished by the Contractor under'thi.s
contract are based upon the expectation that Government-furnished Property
suitable for use will be delivered to the Contractor at the times
stated in the Schedule or, if not so stated, in sufficient time to enable
the Contractor to mdet such delivery or performance dates. In the event
that Government-furnished Property is not delivered to the Contractor by
such time or Mmes, the Contracting Officer shall, upon timely writ-
requesl- made by the Contractor, make a determination of the delay occasioned
the Contractor thereby, and shall equitably adjust the delivery or
performance dates or the contract price, or both, and any other contractual
provisions affected by such delay, in accordance with the procedures
provided for in the clause of this contract entitled "Changes." In the
event the Government-furl shed Property is received by the Contractor in
a condition not suitable for the intended use the Contractor shall, upon
receipt thereof, notify the Contracting Officer of such fact and, as directed
by the Contracting OfyiCer, either (i) return such property at the Government's
expense or otherwise dispose of the property, or (ii) effect repairs or
modifications. Upon the completion of (i) or (ii) above, the Contracting
Officer upon written request of the Contractor shall equitably adjust the
delivery or performance dates or the contract price, or both, and any other
contractual provisions affected by the rejection or disposition, or the
repair or modification, in accordance with the procedures provided for
in the clause of this contract entitled "Changes." The foregoing provisions
FP or PR
14 July 5 ftpproved For Release 2001/08/301: (SIA-RDP61-00763A000100080152-8
-30-
 (b) By notice in writing the Contracting Officer may decrease the
property furnished or to be furnished by the Government under this
contract. In any such case, the Contracting Officer upon the written
of the Contractor shall equitably adjust the delivery or performance
crates or the contract price, or both, and any other contractual pro-
visions affected by the decrease, in accordance with the procedures
provided for in the clause of this contract entitled "Changes."
(c) Title to the Government-furnished property shall remain in the
Government? Title to Government-furnished property shall not be affected
by the incorporation or attachment thereof to any property not owned by
the Government, nor shall such Government-furnished property, or any part
thereof, be or become a fixture or lose its identity as personalty by
reason of affixation to any realty. The Contractor shall comply with
the provisions of the "Manual for the Control of Government Property in
the Possession of Contractors" (Appendix BY Armed Services Procurement
Regulation) as in effect on the date of the contract, which Manual is
hereby incorporated by reference and made a part of this contract
(Rev. No. 33, 5/11/58.)
(d) The Government-furnished property shall, nuless otherwise
provided herein, be used only for the performance of this contract.
(e) The Contractor shall maintain and ac?mnister, in accordance
with sound industrial practice, a program for the maintenance, repair,
protection and preservation of Government-furnished property, untrii_
disposed of by the Contractor in accordance with this clause. In the
event that any damage occurs to Government-furnished Property the risk
of which has been assumed by the Government under this contract, the
Government shall replace such items or the Contractor shall make such
repair of the property as the Government directs; provided, however, that
if the Contractor cannot effect such repair within the time required,
the Contractor shall dispose of such property in the manner directed by
the Contracting Officer, The contract price includes no compensation
to the Contractor for the performance of any repair or replacement for
which the Government is repponsible, and an equitable adjustment will be
made in the contract price for any such repair or replacement of Government-
furnished property made at the direction of the Government. Any repair
or replacement for which the Contractor is responsible under the provisions
of this contract shall be accomplished. by the Contractor at its own expense.
(f) (i) Except for loss, destruction,or damage resulting from a
failure of the Contractor, due to willful misconduct or lack of good faith
of any of the Contractorts managerial personnel as defined herein, to
maintain and acolinister the program for the maintenance, repair, protection
and preservation of the Government-furnished property as required by
Approved Felease 2001/08/314'61-007000100080152-8
for adjustment are exclusive and the Government shall not be liable to suit
for breach of contract by reason of any delay in delivery of Government-
furnished Property or delivery of such property in a condition not
suitable for its intended use.
FP or PR
14 July , 0proved For Release 2001/08/30-:3CtI -- P61-00763A000100080152-8
 Approved F2elease 2001/08/3f; t P61-00763A000100080152-8
hereof, and except as specifically provided in Muse (s)
p~.~. graph (e)
of this contract or in the clause or clauses of this
h 11 nof be liable
contract designated in the Schedule, the Contractor s a
for loss or destruction of or damage to the Government-furnished property
(A) caused by any peril while the property is in transit off the Contractors
premises, or (B) caused by any of the following perils while the property
is on the Contractor's or subcontractor's premises, or on any other
premises where such property may properly be located, or by removal there-
from because of any of the following perils:
(I) Fire; lightning, windstorm, cyclone, tornado, hail; explosion;
riot, riot attending a strike, civil commotion; vandalism and malicious
mischief; sabotage; aircraft or objects falling therefrom; vehicles running
on land or tracks oxclus ing vehicles owned or operated by the Contractor
Cr any agent or employee of the Contractor; smoke; sprinkler leakage;
earthquake or volcanic eruption; flood., meaning thereby rising of a body
of water; hostile or warlike action, including action in hindering, combating,
or defending against an .actual, impending or expectedaattack by any
government or sovereign power (de jure or de facto), or by any authority
using military, naval, or air forces, or by an agent of any such overnment,,
power;_ authority, or forces; or
(ii) Other peril, of a type not listed above, if such other peril is
customarily covered by insuraanct (or by a reserve for self-insurance) in
accordance with the normal practice of the Contractor, or the prevailing
practice in the industry in which the Contractor is engaged. with repsect
to similar property in the same general locale.
The perils as set forth in (A) and (B) above are hereinafter called
"excepted perils."
This clause shall not be construed as relieving a subcontractor from
liability for loss or destruction of or damage to the Government-Furnished
property while in its possession or control, except to the extent that
the subcontract, with the prier approval of the Contracting Officer, may
provide for the relief of the subcontractor from such liability. In the
absence of such approval,, the subcontract shall contain appropriate pro-
visions requiring the return of all Government-Furnished property in as
good condition as when received, except for reasonable wear and tear or
for the utilization of the property in accordance with the provisions
of the prime contract.
The term "Contractor's managerial personnel" as used herein means
the Contractor's directors, officers and any of its managers, superintendents,
or other equivalent representatives who have supervision or direction of
(I) all or substantially all of the Contractor's business; (h)all or
substantially all of the Contractor's operation at any one plant or
separate location at which the contract is being performed; (III) a
separate and complete major industrial operation in connection with the
performance of this contract.
FP or PR
S UUi~~~
14 JulApp roved For Release 2001/08/30 : CIA R ~~?00763A000100080152-8
 Approved riry Release 2001/08130 ~,,RDP61-00A000100080152-8
,ii) I -;-,, Contractor represents tt it is not including in the price
here iderf., a*~,' a ;roes that it will not hereafter include in any price to
the G 3vern,?.ie: t3 ny charge or reserve for insurance (including self-
insurance fur. d.s c r reserves) covering loss or destruction of or damage to
the Government-furnished property caused. by any excepted peril,
(iii) Upon the happening of loss or destruction of or damage to any
Government-furnished. property caused by an excepted peril, the Contractor
s'.iall notify the Contracting Officer thereof, and shall communicate with
the Loss and Salvage Organization, if any., now or hereafterAdesignateci
by the Contracting Officer, and with the assistance of the Loss and Sal-
vage Organization so designated. (unless the Contracting Officer has
directed that no such organization be employed)., shall take all reasonable
step: to protect the Government-furnished property from further damage,
separate the damaged and undamaged Government-furnished property, put all
the Government-faa.rnished property in the best possible order, and furnish
to the Contracting: Officer a statement of: (A) the lost, destroyed and
damaged Government-furnished property (B) the time and origin of the loss,
destruction or damages (C) all known interests in commingled property of
which the Government-furnished property is a part., and ID) the insurance,
if any, covering any part of or interest in such commingled property? The
Contrl-,cter shall be reimbursed for the expenditures made by it in performing
its obligations under this subparagraph (iii) (including charges made to
the Contractor by the Loss and. Salvage Organization, except any of such
the payment of which the Government has, at its option, assumed directly),
to the extent approved by the Contracting Officer and set forth in a
Supplemental Agreement.
(iv) With the approval of the Contracting Officer after loss of
destruction of or damage to Government-furnished property, and subject to
such conditions and limitations as may be imposed by the Contracting
Officer, the Contractor may,, in order to minimize the loss to the Gov-
ernnent dr in order to permit resumption of business or the like, sell
for the account of the Government any item of Government-furnished
property which has been damaged beyond practicathle repair, or which is
Esc commingled or combined with property of others, including the Contrac--
tcs., that separation is impracticable,
(v) Except to the extent of any loss or destruction of or damage to
Government.-furnished property for which the Contractor is relieved of
liability under the foregoing provisions of this clause, and except for
reasonable wear and ter or depreciation., or the utilization of the Gov-
ernment-furnished property in accordance with the provisions of this con-.
tract, the Government-furnished property (other than property permitted
to be solo:.) shall be returned to the Government in as good condition
as when received by the Con-tractor in connection with this co.>ntract, or
as repaired under paragraph (e) above,
FP or PR
7 July 58 -33- '.'
Approved For Release 2001/08/30 : CIA-RDP61-00763A000100080152-8
 Approved Felease 2001/08/ A-RDP61-007000100080152-8
(vi) In the event the Contra. or is reimbursed or compensated for
any loss or destruction of or damage to the Government-furnished prop pity,
caused by an excepted peril, it shall equ.tably reimburse the Government.
The Contractor shall do nothing to prejudi..ce the Governmcntrs rights to
recover against third parties for any such loss, destruction or damage and,
upon the request of the Contracting; Officer, shall at the Government's
expense., furnish to the Government all reasonable assistance and coopera-
tion (including the prosecution of suit and the execution of instruments
of assignment in favor of the Government)- in obtaining recovery. In
addition, where a subcontractor has not been relieved from liability for
any loss or destruction of or damage to the Government-Furnished property,
the Contractor shall enforce the liability of the subcontractor for such
loss or destruction of or damage to the Government-Furnished property for
the benefit of the Government.
(vii) (Whore applicable). In the event any aircraft are to be
furnished under this contract, any loss or destruction,of, or damage to,
such aircraft or other Government-furnished property occurring in connection
with operations of said aircraft will be governed by the clause of this
contract captioned ItPlight Risks;,, to the extent such clause is~ by its
terms,, applicablca
(g) The Government shall at all reasonable times have access to the
premises wherein any Government-furnished property is located;
(h) Upon the completion of this contract, or at such earlier date as
may be fixed by the Contracting Officer,, the Contractor shall submit, in
a form acceptable to the Ccontncct4ng Officer, inventory schedules covering
all items of Government-furnished property not consumed in the performance
of this contract (including any resulting scrap), or not theretofore
delivered to the Government, and shall deliver or make such other disposal
of such Government-furniohcd property, as may be directed or authorized
by the Contr. acting Officer. The net proceeds of any such disposal shall be
credited to the contract price or shall be paid in such other manner as the
Contracting Officer may direct.
(i) Directions of the Contracting Officer and communications of the
Contractor shall be in writing.
FP or PR
11 July 58 -34-
Approved For Release 2001/08/30 : CIA-RDP61-00763A000100080152-8
 Approved For Release 2001/08/30 : 61-00763AQ00100080152-8
(b)
ULCSI data, mwh as bm*ft*OkxO s
neses+ary for the =It
Approved For Release 2001/08/301.'-RDP61-00763A000100080152-8
 Approved For Release 2001/08/30 : CIA-_RDP61-00763A000100080152-8
(c) XOtVItbstssdtg other gravUime at thU cc t, shuts
XNAO uundier a uss t ccatrs a ci do not t)
pw=ft I t *U by rail, tan=k, or
PaAaft
shIned by
&
fi
1
t
arab&U be
r h
to rt tic s) said by is Ccntractor.
('aCar* I trt ios * Co.*t t to tr CU shsa be
s by the Autbariud axtati m t Ott r t.
If isototbe eort+ d
o.b sue. ? ur t *as, G*Vorm t
to the Camb r in tirttn by
a if the Cet rcutift
36
Approved For Release 2001/08/30., CIARDP61-00763A000100080152-8
 Approved For Release 2001/08/30 : CIA-RDP61-00763A000100080152-8
I Pit he+c~t3 caa~ L shau be tamed Uaftr this cautTwt after
the & set o th the SdhetaU =3 e" s h t is extendad by
r tt ree nt at the VW um bweto*
s .e of the for Pr c ti ; Lists sad
VBXUes bereto shell acatum JA the V" atie
At the cytim of the 1
services to be furnished he r my be d vttAcut Per
Ge rms a oe receipt of a ificatm of the C for
attseb" to a is raUe f c said supplies or services r d#ed substen-
tr$ ie';lease 2001 /08/30 : A-RDP61-00763A000100080152-8
 Approved For Release 2001/08/30 : CIA-RDP61-00763A000100080152-8
38
Approved For Release 2001/08/30,''..CtA':RDP61-00763A000100080152-8
 Approved For Release 2001/08/30 : CIA-RDP61-00763A000100080152-8
Promotion List 1O. TO c tenet NO.
-` Autharixed R p
-"~tantrac!
preservation, P+-WdzB, Packaging and Preserve-tion
Delivery: i pmant of above parts is desired in
Approved For Release 2001/08/30 : CIA-RDP61-00763A000100080152-8
 Approved For Release 2001/08/30 : CIA-RDP61-00763A000100080152-8
Exhibit No. To Contract
Toontractor)
Contracting officer)
Item part
No, No. Namenclature
1
Unit Price Total Price
Qty- -
25 10.00 $250.00
livery: Shipment of above parts to be made in March 1958
Prices are flair and reasonable and this
Exhibit is hereby approved.
Oamtractor warrants prices conform to the
price formula in effect on date of this
Exhibit.
tracting licer
SCR
L
Contractor
Approved For Release 2001/08/30 : CIA-RDP61-00763A000100080152-8