LETTER TO (Sanitized)

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP71B00697R001800120012-4
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 33
• Document Creation Date: November 16, 2016
• Document Release Date: April 13, 2000
• Sequence Number: 12
• Publication Date: October 28, 1968
• Content Type: LETTER

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IDEA-0732-68
Copy / of A.5,
Contract No. -5311 25X1A
Amendment No. 1
1. document constitutes Amendment No. 1 to Con-
tract No. 5311 entered into by and between the parties
as of 24 June 1968.
2. By this amendment, the following changes are made to
APPENDIX I:
A. Item 112. Ratest' is deleted in its entirety and
the following substituted in lieu thereof:
25X1A Sites Field Engineer Sr. Field Engineer
25X1A
a)
Domestic Locations -
Per man-month
Per man-day
b)
Overseas - Non-Hazardous, Non-Isolated -
25X1A
Per man-month
25X1A
Per man-day
c)
Overseas
Non
Hazard
I
l
t
d
25X1A
-
-
ous,
so
a
e
-
d)
Per man-month
Per man-day
Overseas - Hazardous -
Per man-month
Per man-day
The rates stated above are based on eight (8) hours per day,
forty (40) hours per week (Sunday through Saturday.) All of the
above rates include allowance to the Contractor for vacation,
sick leave, and holidays. All man-day rates are based on 21
working days per month."
OF.
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B. Delete Item 7 in its entirety and substitute the
following in lieu thereof:
"7. The rates proposed in item 2 above are effective
for the period 1 July 1968 through 30 December 1968 and
shall apply provisionally thereafter until new rates are
negotiated."
3. All other terms and conditions of this Amendment No.
1 to Contract No. EN-5311 remain unchanged.
4. Please indicate your acceptance of this Amendment No. 1
to Contract No. =5311 by executing the three enclosed copies.
The original and one copy are to be returned to the undersigned;
the remaining copy may be retained for your files.
Very truly yours,
THE UNITED STATES OF AMERICA
Contracting Officer
ACKNOWLEDGED AND ACCEPTED
DATE 14 November 1968
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CRFJ
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DATE OF...DOC,
TO
25X1A FRO
25X1A suss.
SEC. CL. /~ORIGIN ,
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IDEA-0732..68
CROSS REFERENCE-OR
MMMIJMW OF FILING
DATE
SENT
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 r- P
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OUI V 0 - ~>!T
IDEA-0347-68
Copy / of 4
NEGOTIATED CONTRACT Contract No. W5311
Contract For: See Schedule Amount: See Schedule
Mail Vouchers To: Performance Period:
See Schedule
Administrative Data:
This contract is entered into by and between the United States
of America, hereinafter called the Government, represented by
the Contracting Officer executing this contract, and the above-
named Corporation, incorporated in the State of Delaware, herein-
after called the Contractor.
The parties hereto agree that the Contractor shall furnish the
facilities and deliver all supplies and perform all the services
set forth in the attached Schedule issued hereunder, for the
consideration stated therein.
The rights and obligations of the parties to this contract shall
be subject to and governed by the attached Schedule and the General
Provisions, which, together with this signature page and the
accompanying certificate comprise this Contract No. SA-5311. In
the event of any inconsistency between the Schedule and the
General Provisions, the Schedule shall control.
IN WITNESS WHEREOF, the parties hereto have executed this con-
tract as of 24 JUN 1968
igna ures:
25X1A THE UNITED STATES OF AMERICA
25X1A
TITLE Manager, ECM Division Contracting Officer
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Contract No. ?5311 25X1A
, certify that I am the
Corporate Secretary of the Corporation named as Con-
tractor herein; that who signed
this contract on. behalf of the Contractor was then Manager,
ECM Division of said Corporation; that said Contract
was duly signed for and in behalf of said Corporation by
authority of its governing body, and is within the scope of
its Corporate Powers.
(Corporate Seal)
-2-
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Contract No. M5311 25X1A
PART I - SERVICES TO BE PERFORMED . . . . . . . . . . . . . 4
PART II - FUNDING AND PAYMENTS . . . . . . . . . . . . . . . 4
PART III - PERIOD OF PERFORMANCE . . . . . . . . . . . . . . 4
PART IV - SUPERVISION AND ADMINISTRATION . . . . . . . . . . 4
PART V - WAIVER OF REQUIREMENTS OF GENERAL PROVISIONS . . . 5
PART VI - SPECIAL SECURITY RESTRICTIONS ... . . . . . . . . 6
PART VII - FINANCIAL REPORTS . . . . . . . . . . . . . . . . 6
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Contract No. a 5311
PART I - SERVICES TO BE PERFORMED
The Contractor shall furnish the services of competent
engineering and technical personnel (as defined in Clause No.
1 of the General Provisions}as required by the Contracting
Officer to perform the necessary installations, maintenance,
repair, and overhaul of equipment of the kind furnished or
to be furnished by the Contractor under various contracts
between the parties hereto.
PART II - FUNDING AND PAYMENTS
A. In consideration of the Contractor's performance of
the services hereunder, the Contractor shall be paid at the
man-day rates set forth in the attached APPENDIX I in accordance
with the Clause No. 4 entitled "Payments" of the attached
General Provisions.
of This
amount is contingent upon availability of FY-69 funds. The
total amount payable to the Contractor under this contract
shall not exceed this amount without the prior written authori-
zation of the Contracting Officer.
There has been allocated the amount
PART III - PERIOD OF PERFORMANCE
The Contractor shall be required to perform the services
called for hereunder from 1 July 1968 through 30 June 1969.
The Government shall have the option of renewing this contract
for FY-70 and the rates herein shall be used provisionally for
the new year until new rates are negotiated for incorporation
into this contract.
PART IV - SUPERVISION AND ADMINISTRATION
The Contractor's personnel must be at all times be recog-
nized as employees of and, as such,
under its administrative control. However, such personnel in
k% - Dr
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the performance of their services shall be guided by and comply
with the directions and, requirements of the Contracting Officer
or his authorized representative under whose authority services
shall be performed in a manner satisfactory to the Contracting
Officer.
Each Contractor employee shall submit an Attendance and
Location Report Form to the Project Base Commander for verifi-
cation and approval. The Attendance and Location Report Form
shall be in accordance with the attached Exhibit "A". The
Contractor shall submit copies of this form together with each
invoice for verification of the hours billed.
Vacation leave will be granted at such time or times as
may be mutually satisfactory to the contract personnel and the
Project Base Commander. Vacation time will not be considered
as time spent in the performance of services hereunder and,
accordingly, the Government will not be billed directly for
services or transportation during leave periods.
Sick leave of five consecutive days or more will not be
considered as time spent in the performance of services here-
under and, accordingly, the Government will not be billed for
services during extended periods of five days or more.
Emergency leave may be granted by Project Base Commander.
All time used by a contract employee for emergency leave, in-
cluding travel time, will be at no expense to the Government.
PART V - WAIVER OF REQUIREMENTS OF GENERAL PROVISIONS
Notwithstanding the requirements of any of the General
Provisions of this contract to the contrary, whensoever the
Contractor, in performance of the work under this contract,
shall find that the requirements or any of the clauses of the
General Provisions are in conflict with security instructions
issued to the Contractor by the Contracting Officer or by his
duly authorized representative for security matters, the
Contractor shall call the attention of the Contracting Officer
to such conflict and the Contracting Officer or his duly
authorized representative for security matters shall (i)
modify or rescind such security requirements or (ii) the
Contracting Officer shall issue to the Contractor a waiver of
compliance with the requirements of the General Provisions
conflicting with such security requirements. Any waiver of
compliance with the General Provisions of this contract issued
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ABET
by the Contracting Officer shall be in writing, except that
the approval by the Contracting Officer or any subcontract
issued hereunder by the Contractor shall be deemed to constitute
approval of waiver of any clauses of the General Provisions
in conflict with the stipulations of such subcontract.
The Contractor shall not reveal (i) the specific nature
or any details of the work being performed hereunder or (ii)
any information whatsoever with respect to the department of
the Government sponsoring this contract and the work thereunder
except as the Contractor is directed or permitted to reveal
such information by the Contracting Officer or by his duly
authorized representative for security matters, and notwith-
standing any clause or section of this contract to the contrary,
the Contractor shall not interpret any clause or section of
this contract as requiring or permitting divulgence of such
information to any person, public or private, or to any
officer or department of the Government without the express
consent of the Contracting Officer or his duly authorized
representative for security matters.
The Contractor shall submit four copies of monthly financial
reports in accordance with OSA-2266-67 as amended by OSA-4006-67.
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E i
Furnish the services of Contractor Field Personnel,'
as requested, by the Contracting Officer or his Technical
Representative, to assist in the installation, ground operation,
maintenance, and repair of the types of equipments furnished by
the Contractor.
Field Senior Field
Sites Engineer Engineer
a) Domestic Locations
Per man-month
Per man-day
b) Overseas - ton-Hazardous, Non-Isolated
Per man-month
Per man--day M
c) Overseas - Non-Hazardous, Isolated
Per man-month
Per man-day
d) Overseas - Hazardous
Per man-month
Per man-day
The rates stated above are based on eight (8) hours
per day, forty (40) hours per week (Sunday through Saturday.)'
All of the above rates include allowance to the Contractor for
vac: tion, sick leave, and holidays. All man-day rates are
based on 21 working days per month.
Contractor personnel shall-perform such travel as
necessary to perform the services required by the Government.
Such travel will be by Government-furnished transportation,
SECRET
25X1A
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25X1A
when available, or by commercial transportation. The Con-
tractor shall be reimbursed for actual cost of transportation
plus G&A of
25X1A Travel by Contractor personnel via private motor
vehicle shall be reimbursed at $.10 per mile plus G&A.
When travel by Contractor personnel is accomplished in a
Co actor-leased vehicle, reimbursement will be at the rate
25X1A of r
4. Per Diem
The Contractor will be reimbursed for per diem allow-
ances paid its employees as follows:
(a) Domestic Locations
25X1A
$20.00 per day plus G&A when
quarters and messing are not provided by the
Government.
No per diem when quarters and messing
are provided by the Government.
Detachment G - $15.00 per day plus
(b) Overseas
1 - TDY
$20.00 per day plus G&A
$15.00 per day plus G&A when
quarters are furnished by the Government.
Detachment H - $10.00 per day paid
directly by the Base Finance Officer.
At other deployment sites - $6.00
per day paid directly by the Base Finance
Officer.
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In the event payment methods under
2a and b above are discontinued, the Con-
tractor may commence payment of said per
diem and the Government will reimburse the
Contractor for said per diem payments plus
M G&A.
Per Diem will be allowed Contractor's
employees while en route to and from permanent
overseas duty stations at $20.00 per day plus
~G&A.
5. Domestic Locations:
Domestic locations shall be locations within the con-
tinental United States, which is hereby defined as the forty-
eight contiguous states and the District of Columbia (excluding
Hawaii and Alaska.)
6. Travel by Contractor's employees to and between domestic
locations shall be coordinated with the Contracting Officer's
Technical Representative, prior approval of such travel is not
required from the Contracting Officer.
7. The rates proposed herein are considered provisional
rates and new rates shall be proposed and negotiated.
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CLAUSE NO.
PAGE NO.
1
Definitions
2
Changes
1
3
Inspection
1
4
Payments
2
5
2
Assignment of Claims
6
2
Federal, State, and Local Taxes
7
Default
2
8
Disputes
3
9
Convict Labor
4
10
Cont
t
W
5
11
rac
,
ork Hours Standards Act--Overtime Compensation
Equal Opportunity
5
12
Officials not to Benefit
5
13
C
7
ovenant Against Contingent Fees
14
T
i
7
erm
nation for Convenience of the Government
15
S
b
7
u
contracts for Work or Services
16
8
Audit and Records
17
8
Examinations and Records
18
Gratuities
9
19
Contractor Personnel
9
20
10
Period of Performance
21
11
Services Furnished by the Government
22
11
Military Security Requirements
23
G
12
overnment. Property (Fixed Price)
24
Noti
13
ce and Assistance Regarding Patent and Copyright
Infringement
25
Pri
R
d
17
26
ce
e
uction for Defective Cost or Pricing Data
18
Subcontractor Cost and Pricing Data
27
Technical Information
19
28
R
19
29
eporting of Royalties (Foreign)
Interest
20
30
Alterations
20
20
SECRET
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 25X1A'
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GENERAL PROVISIONS
(CONTRACTS FOR TECHNICAL SERVICES)
Revised Oct. 66
1. DEFINITIONS (Feb. 1962).--As used throughout this contract, the following terms
shall have the meanings set forth below:
(a) The term "head of the agency" or "Secretary" means the Secretary, the Under
Secretary, any Assistant Secretary, or any other head or assistant head of the executive
or military department or other Federal agency; and the term "his duly authorized
representative" means any person or persons or board (other than the Contracting
Officer) authorized to act for the head of the agency or 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 as otherwise provided
in this contract, the authorized representative of , Contracting Officer acting within
the limits of his authority. The Commander of the Air Force activity to which any
contractor personnel may be assigned hereunder is hereby designated an authorized
representative of the Contracting Officer with regard to contractor personnel so
assigned.
(c) Except as otherwise provided in this contract, the term "subcontracts" includes
purchase orders under this contract.
(d) The terms "contractor employee" and "contractor personnel" as used through-
out this contract shall be deemed to refer to all contract technical services per-
sonnel, including all of the specific types of technicians referred to in the
Schedule, and shall be defined as persons, such as advisers, instructors, or technical
specialists, obtained through the contractor to perform services pertaining to the
25X1A operation and maintenance engineering of equipment. The terms include both:
(i) "Technical representatives" who are employees of a manufacturing furni-
shing end items of equipment to the and furnishing services only in con-
nection with such end items; and 25X1A
(ii) "Contract technicians" who are employees of a commercial concern 25X1A
furnishing services to the at least a part of which are in'connection with
end items not manufactured by the Contractor.
(e) The term "man month" as used herein shall be deemed to be the time devoted to
the performance of services hereunder by one contractor employee during a period of
one calendar month.
(f) The term "continental limits of the United States" as used herein means any
place within the territorial limits of the 1+8 states (other than Alaska and Hawaii)
and the District of Columbia.
(g) The term "domestic services" as used herein means services within the conti-
nental limits of the United States.
(h) The term "overseas" as used herein means any place outside the continental
limits of the United States.
2. CHANGES (Jul. 1955).--The Contracting Officer may, at any time, by a written
order, and without notice to the sureties, if any, make changes in or additions to
drawings and specifications, issue additional instructions, require modified or
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additional work or services. wit;hin the general scope of the contract, change the
place of delivery or method of shipment, or the amount of Government furnished
property. If any such change causes an increase or decrease in the cost of or the
time required for, performance of this contract, an equitable adjustment shall be
made in the contract price, or time of performance, or both; and the contract shall
be modified in writing accordingly. Any claim by the Contractor for adjustment
under this clause must be asserted within sixty (60) days from the date of receipt
by the Contractor of the notification of change: provided, however, that the Con-
tracting Officer, if he decides that the facts justify such action may receive and
act upon any such claim asserted at any time ~rior to final payment under this contract.
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 "Disputes." However,
nothing in this clause shall excuse the Contractor from proceeding with the contract
as changed.
3. INSPECTION.--All services, material and workmanship, shall be subject to inspection
and test by representatives of the Government. For this purpose, the Contractor
shall allow at all reasonable times inspectors and other Government personnel free
access to the plant and operations and shall furnish such facilities, supplies, and
services as may be required for this work..
l+. PAYMENTS (Jul. 1955).
(a) The Contractor shall be paid in monthly installments upon submission of
properly certified invoices therefor for services rendered and accepted less deductions,
if any, as herein provided.
(b) Any payments in reimbursement of the cost of any transportation furnished by
the Contractor for which it is entitled to be reimbursed under paragraph (a) of the
Clause hereof entitled "Services Furnished by the Government" shall be made upon the
submission-of properly certified invoices and other evidence satisfactory to the
Contracting Officer covering the expenditures for which reimbursement is so sought.
(c) If this contract provides for overseas services, the domestic rates, if any,
specified in the Schedule are applicable to that portion of the time necessary for
travel between the Contractor's plant and the overseas site which is spent within the
continental limits of the United States.
5. ASSIGNMENT OF CLAIMS.--No assignment, of claims shall be made under this contract
without the prior written approval of the Contracting Officer.
6. FEDERAL, STATE, AND LOCAL TAXES (Aug. 1961). (The provisions of this clause
shall be applicable only if this Contract is a negotiated contract in excess of
$10,000.00)--
(a) Except as may be otherwise provided in this contract, the contract price
includes all applicable Federal, State, and local taxes and duties.
(b) Nevertheless, with refpect to any Federal excise tax or duty on the transactions
or property covered by this contract, if a statute, court decision, written ruling,
or regulation takes effect after the contract date, and--
(1) results in the Contractor being required to pay or bear the burden of
any such Federal excise tax or duty or increase in the rate thereof which would not
otherwise have been payable on such transactons or property the contract price shall
be increased by the amount of such tax or duty or rate increase, provided the Con-
tractor warrants in writing that no amount for such newly imposed Federal excise tax
or duty or rate increase was included in the contract price as a contingency reserve
or otherwise; or
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(2) results i.he Contractor not being requir`'to pay or bear the burden
of, or in his obtaining a refund or drawback of, any such Federal excise tax or
duty which would otherwise have been payable on such transactions or property or
which was the basis of an increase in the contract price, the contract price shall
be decreased by the amount of the relief, refund, or drawback, or that amount shall
be paid to the Government, as directed by the Contracting Officer. The contract
price shall be similarly decreased if the Contractor through his fault or negligence
or his failure to follow instruction., of the Contracting Officer, is required to
pay or bear the burden of, or does not obtain a refund or drawback of any such
Federal excise tax or duty.
(c) No adjustment of less than $100 shall be made in the contract price pursuant
to paragraph (b) above.
(d) As used in paragraph (b) above, the term "contract date" means the date set
for bid opening, or if this is a negotiated contract, the contract date. As to
additional supplies or services procured by modification to this contract, the term
"contract date" means the date of such modification.
(e) Unless there does not exist any reasonable basis to sustain an exemption, the
Government upon the request of the Contractor shall, without further liability, furnish
evidence appropriate to establish exemption from any Federal, State,or local tax;
provided that, evidence appropriate to establish exemption from any Federal excise
tax or duty which may give rise to either an increase or decrease in the contract
price will be furnished only at the discretion of the Government.
(f) The Contractor shall promptly notify the Contracting Officer of matters which
will result in either an increase or decrease in the contract price, and shall take
action with respect thereto as directed by the Contracting Officer.
7. DEFAULT (Jul. 1962).
(a) The Government may, subject to the provisions of paragraph (c) below, by
written notice or default to the Contractor, terminate the whole or any part of this
contract in any one of the following circumstances:
(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 writing) after receipt of notice from the Contracting
Officer specifying such failure.
(b) 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 Contractor 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 subcontractorp, the Contractor 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,
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acts cAplbhov -r s1 294 /0~ sC A or con
P
ractual capacity, fires, floods,
epidemics, quarantine restrictions, strikes, freight embargoes, and '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 sub-
contractor were obtainable from other sources in sufficient time to permit the Con-
tractor to meet the required delivery schedule.
(d) If this contract is terminated as provided in 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 (hereinafter called "manufacturing
materials") as the Contractor has specifically produced or specifically acquired for
the performance of such part of this contract as has been terminated; and the Con-
tractor 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 Contractor 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:"" The Government may withhold from
amounts otherwise due the Contractor for such completed supplies or manufacturing
materials such sum as the Contracting Officer determines to be necessary to protect
the Government against loss because of outstanding liens or claims of former lien
holders.
(e) If, after notice of termination of this contract under the provisions of this
clause, it is determined for any reason that the Contractor was not in default under
the provisions of this clause, or that the default was excusable under the provisions
of this clause, the rights and obligations of the parties shall, if the contract
contains a clause providing for termination for convenience of the Government, be
the same as if the notice of termination had been issued pursuant to such clause.
(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.
8. DISPUTES.(JT.~,n. 1958).--(a) Except as otherwise provided in this contract, 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 writing and mail or otherwise 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 duly 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 faith, or not supported by substantial evidence.
In connection with any appeal proceeding under this clause, the Contractor shall be
afforded by opportunity to be heard and to offer evidence in support of his 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 Officer's
decision.
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 (~~~ ~St ed ~e4esasn ~O s: Cb4.-F P(7JE0Wr gQV)W :0 41aw questions in
connecti with decisions provided for in paragraph (a) above: Provided, That
nothing in this contract shall be construed as making final the decision of any
administrative official, representative, or board on a question of law.
9. CONVICT LABOR (Mar. 1949).--In connection with the performance of work under
this contract, the Contractor agrees not to employ any person undergoing sentence
or imprisonment at hard labor.
10. CONTRA
'PT WORK HOURS STANDARDS ACT--OVERTIME COMPENSATION. (June 1964) This
contract, td the extent that it is of a character specified in the Contract Work
Hours Standards Act (4o U.S.C. 327-330), is subject to the following provisions
and to all other applicable provisions and exceptions of such Act and the regulations
of the Secretary of Labor thereunder.
(a) Overtime Requirements. No Contractor or subcontractor contracting for any
part of the contract work which may require or involve the employment of laborers
or mechanics shall require or permit any laborer or mechanic in any workweek in
which he is employed on such work to work in excess of eight hours in any calendar
day or in excess of forty hours in such workweek on work subject to the provisions
of the Contract Work Hours Standards Act unless such laborer or mechanic receives
compensation at a rate not less than one and one-half times his basic rate of pay
for all such hours worked in excess of eight hours in any calendar day or in excess
of forty hours in such workweek, whichever is the greater number of overtime hours.
(b) Violation; Liability for Unpaid Wages; Liquidated Damages. In the event of
any violation of the provisions of paragraph (a), the contractor and any subcontractor
responsible therefor shall be liable to any affected employee for his unpaid wages.
In addition, such Contractor and subcontractor shall be liable to the United States
for liquidated damages. Such liquidated damages shall be computed with respect_to
each individual laborer or mechanic employed in violation of the provisions of
paragraph (a) in the sum of $10 for each calendar day on which such employee was
required or permitted to be employed on such work in excess of eight hours or in
excess of his standard workweek of forty hours without payment of the overtime
wages required by paragraph (a).
(c) Withholding for Unpaid Wages and Liquidated Damages. The Contracting Officer
may withhold from the Government Prime Contractor, from any moneys payable on account
of work performed by the Contractor or subcontractor, such sums as may adminis-
tratively be determined to be necessary to satisfy any liabilities of such Contractor
or subcontractor for unpaid wages and liquidated dathages as provided in the pro-
visions of paragraph (b).
(d) Subcontracts. The Contractor shall insert paragraphs
clause in all subcontracts, and shall require their inclusion in (aallhsuubccontrdaacts of is
any tier.
(e) Records. The Contractor shall maintain payroll records containing the
information specified in 29 CFR 516.2(a). Such records shall be preserved for three
years from the completion of the contract.
11. EQUAL OPPORTUNITY. (Apr. 1964) (The following clause is applicable unless
this contract is exempt under the rules and regulations of the President's Committee
on Equal Employment Opportunity (41 C.F.R. Chapter 60). Exemptions include contracts
and subcontracts (i) not exceeding $10,000, (ii) not exceeding $100,000 for standard
commercial supplies or raw materials, and (iii) under which work is performed outside
the United States and no recruitment of workers within the United states is involved).
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 During tAhpprPo Fb eigetidM/9 6'aCIA-M3PZ1HOOr,9-7l3904~99440912411ows:
(a) The Contractor will not discriminate against any employee or applicant for
employment because of race, creed, color, or national origin. The Contractor will
take affirmative action to ensure that applicants are employed and that employees
are treated during employment, without regard to their race, creed, color, or national
origin.
Such action shall include but not be limited to, the following: employment, upgrading,
demotion, or transfer; recruitment or recruitment advertising; lay-off or termination;
rates of pay or other forms of compensation; and selection for training, including
apprenticesh.ap. The Contractor agrees to post in conspicuous places, available to
employees and applicants for employment, notices to be provided by the Contracting
Officer setting forth the provisions of this nondiscrimination clause.
(b) The Contractor will, in all solicitations or advertisements for employees
placed by or on behalf of the Contractor, state that all qualified applicants will
receive consideration for employmeft without regard to race, creed, color, or national
origin.
(c) The Contractor will send to each labor union or representative of workers with
which he has a collective bargaining agreement or other contract or understanding, a
notice, to be provided by the Agency Contractin g; Officer, adw-ising the said labor
union or workers' representative .of the Contractor's commitments under this nondiscrim-
ination clause, and shall post copies of the notice in conspicuous places available
to employees and applicants for employement.
(d) The Contractor will comply with all provisions of Executive Order No. 10925 of
March 6, 1961, as amended, and of the rules, regulations, and relevant orders of the
President's Committee on Equal Employment Opportunity created thereby.
(e) The Contractor will furnish all ir.:formation and reports required by Executive
Order No. 10925 of March 6, 1961, as amended, and by the rules, regulations, and
orders of the said Committee or pursuant thereto, and will permit access to his books,
records, and accounts by the contracting agency and the Committee for purposes of
investigation to ascertain compliance with such rules, regulations and orders.
(f) In the event of the Contractor's noncompliance with the nondiscrimination
clause of this contract or with any of the said rules, regulations, or orders, this
contract may be cancelled, terminated, or suspended in whole or in part and the
Contractor may be declared ineligible for further Government contracts in accordance
with procedures authorized in Executive Order No. 10925 of March 6, 1961, as amended,
and such other sanctions may be imposed and remedies invoked as provided in the said
Executive Order or by rule, regulation, or order of the President's Committee on
Equal Employment Opportunity, or as otherwise provided by law.
(g) The Contractor will include the provisions of paragraphs (a) through (g)
in every subcontract or purchase order unless exempted by rules, regulations, or orders
of the President's Committee on Equal Employment Opportunity issued pursuant to Section
303 of Executive Order No. 10925 of March 6, 1961, as amended, so that such :provisions
will be binding upon each subcontractor or vendor.* The Contractor will take such
action with respect to any subcontract or purchase order as the contracting agency may
direct as a means of enforcing such provisions, including sanctions for noncompliance:
Provided, however, that in the event the Contractor becomes involved in, or is threat-
ened with, litigation. with a subcontractor or vendor as a result of such direction by
ttze contracting agency, the Contractor may request the United States to enter into such
litigation to protect the interests of the United States.
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.*UnledS otherwise provi- , the Equal Opportunity c a xis not required to be
inserted in subcontracts below the second tier, except for subcontracts involving
the performance of "construction work" at the "site of construction" (as those
terms are defined in the Committee's rules and regulations) in which case the clause
must be inserted in all such subcontracts. Subcontracts may incorporate by reference
the "Equal Opportunity" clause.
12, OFFICIALS NOT TO BENEFIT (Jul. 1949).--No member of or delegate to Congress,
or resident commissioner, shall be admitted to any share or part of this contract, or
to any benefit that may arise therefrom; but this provision shall not be construed to
extend to this contract if made with a corporation for its general benefit.
13. COVENANT AGAINST CONTINGENT FEES (Jan. 1958).--The Contractor warrants that no
person or selling agency has been employed or retained to solicit or secure this
contract upon an. agreement or understanding for a commission, percentage, brokerage,
or contingent fee, excepting bonafide employees or bonafl'de~ established commercial
or selling agencies maintained by the Contractor for the purpose of securing business.
For breach or violation of this warranty the Government shall have the right to annul
this contract without liability or in its discretion to deduct from the contract
price or consideration, or otherwise recover, the full amount of such commission,
percentage, brokerage, or contingent fee.
1.4. TERMINATION FOR CONVENIENCE OF TILE GOVERNMENT (Oct. 1957).--(a) The performance
of work under this contract may be terminated by the Government in accordance with
this clause in whole, or from time to time in part, whenever the Contracting Officer
shall determine that such termination is in the best interests of the Government.
Any such termination shall be effected by delivery to the Contractor of a Notice of
Termination specifying the extent to which performance of work under the contract is
terminated, and the date upon which such termination becomes effective.
(b) After receipt of a Notice of Termination, and except as otherwise directed
by the Contracting Officer, the Contractor shall (1) discontinue all work to the
extent and on the dates specified in such Notice; (2) proceed promptly with the
return to its plant of such of its Contractor personnel as may be covered by said
Notice; and (3) transfer title and deliver to the Government, in the manner, and to
the extent and at the times directed by the Contracting Officer, the completed and
partially completed work, material, plans, drawings, data, information, reports, and
other property produced as a part of, or acquired in connection with the performance
of the work terminated in such Notice.
(c) Upon termination of work, as provided in this clause, the Contractor shall
in respect to such Contractor Personnel as may be covered by said Notice of Termination,
be paid that part of the fixed price set forth in the clause of this contract entitled
"Payments" which has accrued for services rendered hereunder up to the effective date
of such Notice, and for time necessary for such Contractor Personnel to return to the
plant of the Contractor after the effective date of said Notice and any other amaux1ts
properly owing to the Contractor under said "Payments" clause which are theretofore
unpaid. If, at the date of said Notice, certain costs have actually been incurred
by the Contractor in connection with the contract preliminary to the departure of
the Contractor Personnel covered by said Notice of Termination from the plant of the
Contractor which are allocable to the entire period of performance contemplated here-
under, the Government will pay to the Contractor such sum as the Contracting Officer
and the Contractor may agree is properly allocable to the terminated portion of the
contract. Settlement under the provisions of this paragraph (c) shall"be evidenced
by a Supplemental Agreement to the contract. In the event of the failure of the Con-
tractor and the Contracting Officer to agree upon the whole amount to be paid to the
Contractor by reason of the termination of work pursuant to this clause, the Con-
tracting Officer shall determine, on the basis of information available to him, the
amount, if any, due to the Contractor by reason of the termination and shall pay to
the Contractor the amount so determined.
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(d) Any dispute arising out of the termination of the contract under this
clause shall be decided in accordance with the procedure prescribed in the "Disputes"
clause hereof.
15. SUBCONTRACTS FOR WORK OR SERVICE.--No contract shall be made by the Contractor
with any other party for furnishing any of the work or services herein contracted
for without the written approval of the Contracting Officer, but this provision
will not be taken as requiring the approval of contracts of employment between the
Contractor and personnel assigned for services thereunder.
16. AUDIT AND RECORDS (Sep. 196+) (a) The Contractor shall maintain books, records,
documents, and other evidence and accounting procedures and practices, sufficient
to reflect properly all direct and indirect costs of whatever nature claimed to
have been incurred and anticipated to be incurred for the performance of this
contract. The foregoing constitute "records" for the purposes of this clause.
(b) The Contractor's plants, or such 'part thereof as may be engaged in the per-
formance of this contract, and his records shall be subject at all reasonable times
to'.inspection and audit by the Contracting Officer or his duly authorized representative.
(c) The Contractor shall preserve and make available his records (i) until the
expiration of three years from the date of final payment under this contract, and
(ii) for such longer period, if any, as is required by applicable statute, or by
other clauses of this contract, or by (A) or (B) below.
(A) If this contract is completely or partially terminated, the records relating
to the work terminated shall be preserved and made available for aperiod of three
years from the date of any resulting final settlement.
(B) Records which relate to (i) appeals under the "Disputes" clause of this con-
tract or (ii) litigation or settlement of such claims arising out of the performance
of this contract, shall be retained until such appeals, litigation, or claims have
been disposed of.
(d) (1) The Contractor shall insert the substance of this clause, including the
whole of this paragraph (d), in each subcontract hereunder that is not on a. firm
fixed-price basis.
(2) The Contractor shall insert the substance of the following clause in each
firm fixed-price subcontract hereunder in excess of $100,000, except those sub-
contracts covered by subparagraph (3) below.
(a) For purposes of verifying that, cost or pricing data submitted in con-
junction with negotiation of this contract or any contract change or other modifi-
cation involving an amount in excess of $100,000 are accurate, complete and current,
the Contracting Officer, or his authorized representatives, sha.ll--until the ex-
piration of three years from the date of final payment under this contract--have
the right to examine those books, records, documents, and other supporting data
which will permit adequate evaluation of the cost of pricing data submitted,
along with the computations and projections used therein, which were available
,to the Contractor as of the date of execution of the Contractor's Certificate of
Current Cost or Pricing Data.
(b) The Contractor agrees to insert the substance of this clause including
this paragraph (b) in all subcontracts hereunder in excess of $100,000 unless the
price is based on adequate price competition, established catalog or market prices
of commercial items sold in substantial quantities to the general public, or
prices set by law or regulation.
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(3).'fhe Contractor shy insert the substance of the f owing clause in each firm
fixed-price subcontract hereunder in excess of $100,000 where the price is based on
adequate price competition, established catalog or market prices of commercial
items sold in substantial quantities to the general public, or prices set by law or
regulation.
(a) This clause shall become operative only with respect to any change or
other modification made pursuant to one or more provisions of this contract
which involves a price adjustment in excess of $100,000 unless the price adjust-
ment is based on adequate price competition, established catalog or market
prices of commercial items sold in substantial quantities to the general.'pu.blic
or prices set by law or regulation and further provided that such change or
other modification to this contract must result from a change or other modifi-
cation to the Government prime contract.
(b) For purposes of verifying that any cost or pricing data submitted in
conjunction with a contract change or other modification involving an amount
in excess of $100,000 are accurate, complete, and current, the Contracting
Officer,or his authorized representatives, shall--until the expiration of
three years from the date of final payment under this contract--have the right
to examine those books, records, documents and other supporting data which
will permit adequate evaluation of the cost or pricing data submitted, along
with the computations and projections used therein, which were available to
Ch Contractor as of the date of execution of the Contractor's Certificate
of Current Cost or Pricing Data.
(c) The Contractor agrees to insert the substance of this clause including
this paragraph (c) in all subcontracts hereunder in excess of $100,000, so
as to apply until three years after final payment of the subcontract.
17. EXAMINATION OF RECORDS (Feb. 1962)--(The Provisions of this clause shall
be applicabl only if this contract is a negotiated contract in excess of $2500.)--
(a) The Contractor agrees that the Appropriate Audit representatives of the Govern-
ment shall, until the expiration of three (3) years after final payment under this
contract, have access to and the right to examine any directly pertinent books,
documents, papers, and records of the Contractor involving transactions related to
this contract.
(b) The contractor further agrees to include in all his subcontracts hereunder
a provision to the effect that the subcontractor agrees that the Appropriate Audit
representatives of the Government shall, until the expiration of three (3) years
after final payment under the subcontract have access to and the right to examine
any directly pertinent books, documents; papers, and records of such subcontractor
involving transactions related to the subcontract. The term "Subcontract" as.used
in this clause excludes (i) purchase orders not exceeding $2500 and (ii) sub-
contracts or purchase orders for public utility services at rates established for
uniform applicability to the general public.
18. GRATUITIES (Mar. 1952).--(a) The Government may, by written notice to the
Contractor, terminate the right of the Contractor to proceed under this contract if
it is found, after notice and hearing, by the Secretary or his duly authorized
representative that gratuities (in the form of entertainment, gifts or otherwise)
were offered or given by the Contractor, or any agent or representative of the Con-
tractor, to any officer or employee of the Government with a view toward securing a
contract or securing favorable treatment with respect to the awarding or amending,
or the making of any determinations with respect to the performing, of such contract;
provided that the existence of the facts upon which the Secretary or his duly authorized
representative makes such findings hall be in issue and may be reviewed in any com-
petent court.
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 duly ,~P~yrob~dddorr~ ~0 5 ~cIq- I~P'1B0697R'01800120012-4
in ings shall be in issue Any m- 7
revi
d i
ewe
n any competent court.
(b) In the event this contract is terminated as provided in paragraph (a)
hereof, the Government shall be entitled (i) to pursue the same remedies against
the Contractor as it could pursue in the event of a breach of the contract by the
Contractor, and (ii) as a penalty in addition to any other damages to which it may
be entitled by law, to exemplary damages in an amount (as determined by the Secretary
or his duly authorized representative) which shall be not less than three nor more
than ten times the cost incurred by the Contractor in providing any such gratuities
to any such officer or employee.
(c) 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.
19. CONTRACTOR PERSONNEL (Mar. 1960).--(a) Subject to the provisions of PART II
of the Schedule, the number of contractor personnel and the number of man-months
specified in the Schedule may be exceeded with the prior written approval of the
Contracting Officer, but only to the extent necessary to provide continuous service
in the event that a transfer, reassignment, or other cause would result in an inter-
ruption of service.
(b) Contractor personnel will normally be assigned to major air command head-
quarters. Such personnel shall perform services at such places within the command
as the Contracting Officer may direct.
(c) The Contractor shall be responsible for selecting personnel who are well
qualified to perform the required services, for supervising techniques used in
their work, and for keeping them informed of all improvements, changes and methods
of operations.
(d) Contractor personnel, upon assignment, either within the continental limits
of the United States or overseas, are subject to call 24 hours a day. Normally,
they will perform their assigned duties on the same daily and hourly basis as the
personnel of the organization to which they are assigned. Holidays will be observed
in accordance with the direction of the Commander of the air activity to which Con-
tractor personnel are assigned. In the event that a Contractor employee is required
to perform services hereunder on an observed holiday, reimbursement shall be made
as provided in the Schedule.
(e) The Contractor shall be required to furnish a replacement for any Contractor
personnel who may be returned to the Contractor's plant or become incapacitated or
die or otherwise be unable to complete performance hereunder prior to the expiration
of the period of performance, unless otherwise agreed upon by the parties hereto.
(f) The Contractor shall furnish all necessary equipment, salaries.and wages of
its personnel, all costs of subsistence and lodging, costs of
pass,
and any and all other costs in connection with the services tobesrrenderednhereunder
except as otherwise provided in the Clause hereof entitled "Services Furnished by
the Government."
(g) The Contractor, promptly after receipt of official notice from the Contracting
Officer that the services of Contractor personnel are required hereunder, shall
furnish in writing to the Contracting Officer the name of each person assigned by
the Contractor under this contract his
g
such other pertinent information as theContracting nOfficersmayrrequest. The,Con-
tractor shall have the right to replace or transfer its personnel and to substitute
other qualified personnel in lieu thereof; provided, however, that such transfers
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 or 'reass141wmhaW f 7R 26IOWOSMe ( 1 .RE)R?7-IBQ06i97P&PXWJ2 4ed and that
such replacements or transfers have been coordinated with the Contracting Officer.
Any transfers or reassignments for the convenience of the Contractor, including
travel and training cost of replacement personnel, shall be at the Contractor's
expense. Transfers and reassignments of personnel shall be construed as being for
the convenience of the Contractor unless directed or approved by the Contracting
Officer or his authorized representative. The selection of personnel by the Contractor
shall be subject to approval of the Contracting Officer.
(h) The Contracting Officer may, if he finds it to be in the best interest of
the Government, direct the Contractor to remove, and the Contractor shall remove,
any employee from an assignment to perform services under this contract.
(i) The Contractor shall furnish to and file with the Contracting Officer such
copies of the Employment Contracts, if any, entered into with Contractor personnel
engaged in performing the services to be rendered under this contract, as may be
required by the Contracting Offi..er.
(j) Personnel employed by the Contractor hereunder and sent overseas shall be
accredited to the United States Air Force with a recognized status under the Hague
Regulations and the Geneva Covenants, shall be given proper credentials and identif~,
fication cards, shall wear a uniform when prescribed by the theater commander,
shall be subject to appropriate recognition under the rules of war, and shall be
subject to such regulations as have been or may hereafter be issued by the United
States Air Force governing Contractor personnel serving with the United States Air
Force in foreign theaters of operation.
(k) Supervision: Notwithstanding the foregoing, contract technical services
personnel shall at all times be recognized as under the Contractor's administrative
and technical supervision. However, the Contractor and Contractor's personnel,
in the performance of the services hereunder, be guided by and comply with, the
direction and requirements of the Project Base Commander or his authorized representative,
under whose authority said services shall be performed in a satisfactory manner.
(1) The Longshoreman's and Harbor Workers Compensation Act of December 2, 19+2
as amended (1-2USC 1701-1717)provides compensation to employees of Contractors in
the event of capture, therefore a special "Capture and Detention" clause is not
incorporated into this contract.
20. PERIOD OF PERFORMANCE (Nov. 1958).--(a) The services shall be performed during
the period set forth in PART III of the Schedule, but the time of starting and
ending performance and the number of Contractor personnel furnished at any time shall
be as directed by the Contracting Officer.
(b) It is understood that time necessary for Contractor personnel to proceed
from the plant or plants of the Contractor to the site or sites for the performance
of services hereunder shall be considered as time spent in the performance of
services hereunder. It is also understood that time necessary for the transfer
of Contractor personnel between different sites for the performance of services
hereunder and time necessary for the return of such personnel to the plant of the
Contractor shall be considered as time spent in the performance of services hereunder.
21. SERVICES FURNISHED BY THE GOVERNMENT (Oct. 1962).--In connection with services
to be rendered hereunder, the Government shall furnish and supply to the Contractor
the #'ollowing facilities and services:
(a) Suitable transportation for Contractor personnel and their baggage and
for any equipment to be furnished by the Contractor hereunder from the Contractor's
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plant to the site or sites of work, at any site of work while on official business,
between sites of work, and return to the plant of the Contractor. In the event of
failure by the Government to furnish suitable transportation, the Contractor shall
furnish such transportation, and the Government will reimburse the Contractor for
the actual and reasonable cost of such transportation, provided the same has been
approved as provided in this paragraph. All travel of Contractor personnel will
require prior approval from the Commander of the major Air Command having operating
responsibility in connection with this contract, except that prior approval of
nonexpense travel in connection with the unit mission is not required.
(b) Use of Government communication facilities for the exchange of messages between
Contractor personnel and the Contractor, where and when available if the Contractor
is unable to procure commercial communication services,' but the use thereof shall
be subject to the regulations of the representatives of the Government in charge
thereof.
(c) Use of Government services and agencies in the transmittal of funds to
Contractor personnel and as a medium of commercial exchange for said personnel. when
adequate commercial services and facilities are not available.
(d) Contractor personnel assigned to Air Force activities,-will be accorded the
same privileges as military company grade officers with regard to bachelor officer
quarters, local transportation and messing, when available. Emergency medical
facilities may be furnished as prescribed by applicable regulations.
22. MILITARY SECURITY REQUIREMENTS (Jun. 1958).--This clause,,;an.d in particular
"c" and "d" thereunder shall be applicable only to the extent as authorized by the
security representative of the Contracting Officer. (a) The provisions of this clause
shall apply to the extent that this contract involves access to information clas-
sified "Confidential" including "Confidential--Modified Handling Authorized" or
higher.
(b) The Government shall notify the Contractor of the security classification
of this contract,rand the elements thereof, and of any subsequent revisions in such
security classification, by the use of a Security Requirements Check List (DD Form
25th), or other written notification.
(c) To the extent the Government has indicated as of the date of this contract
or thereafter indicates security classification under this contract as provided in
paragraph (b) above, the Contractor shall safeguard all classified elements of this
contract and shall provide and maintain a system of security controls within his own
organization in accordance with the requirements of:
I (i) the Security Agreement (DD Form 1-l), including the Department of
Defense Industrial Security Manual for Safeguarding Classified Information as in
effect on the date of this contract, and any modification to the Security Agreement
for the purpose of adapting the Manual to the Contractor's business; and
(ii) any amendments to said Manual made after the date of this contract,
notice of which has been furnished to the Contractor by the Security Office of the
Military Department having security cognizance over the facility.
(d) Representatives of the Military Department having security cognizance over
the facility and representatives of the Contracting Military Department shall have
the right to inspect at reasonable intervals the procedures, methods, and facilities
utilized by the Contractor in complying with the security requirements under this
contract. Should the Government, through these representatives, determine that the
Contractor is not complying with the security requirements of this contract, the
Contractor shall be informed in writing by the Security Office of the cognizant
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iii-litafy Department oft proper action to be taken in offer to effect compliance
with such requirements.
(e) If subsequent to the date of this contract, the security classifications or
security requirements under this contract are changed by the Government as provided
in this clause and the security costs under this contract are thereby increased
or decreased, the contract price shall be subject to an equitable adjustment by
reason of such increased or decreased costs. Any equitable adjustment shall be
accomplished in the same manner as if such changes were directed under the "Changes"
clause in. this contract.
(f) The Contractor agrees to insert, in all subcontracts hereunder which involve
access to classified information, provisions which shall conform substantially to
the language of this clause, including paragraph (f) but excluding the last sentence
(e) of this clause.
(g) The Contractor also agrees that he shall determine that any subcontractor
propo ed by him for the furnishing of supplies and services which will involve access
to classified information in the Contractor's custody has been granted an appropriate
facility security clearance, which is still in effect, prior to being accorded
access to such classified information.
23. GOVERNMENT PROPERTY (FIXED PRICE) (June 1965)--(a) Government-Furnished Property.
The Government shall deliver to the Contractor, for use in connection with and under
the terms of this contract, the property described as Government-furnished property
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 this contract are based upon the expectation that Government-
furnished property suitable for use (except for such property furnished "as is")
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 meet such delivery or
performance dates. In the event that Government-furnished property is not delivered
to the Contractor by such time or times, the Contracting Officer shall, upon timely
written request made by the Contractor, made a determination of the delay, if any,
occasioned the Contractor thereby, and shall equitably adjust the delivery or
performance dates or the contract price, or both, and any other contractual pro-
vision affected by any such delay, in accordance with the procedures provided for
in the clause of this contract entitled "Changes." Except for Government-furnished
.property furnished "as is," in the event the Government-furnished 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 Officer, 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 provision
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 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.
(b) Changes in Government-Furnished Property.
(1) By notice in writing, the Contracting Officer may (i) decrease the pro-
perty provided or to be provided by the Government under this contract, or (ii)
substitute other Government-owned property for property to be provided by the Government,
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 Approved For Release 2000/05/05 : CIA-RDP71 B00697RO01800120012-4
or to be acquired by the Contractor for the Government, under this contract.
The Contractor shall promptly take such action as the Contracting Officer may
direct with respect to the removal and shipping of property covered by such notice.
(2) In the event of any decrease in or substitution of property pursuant
to subparagraph (1) above, or any withdrawal of authority to use property provided
under any other contract or lease, which property the Government had agreed in
the Schedule to make available for the performance of this contract, the Contracting
Officer upon the written request of the Contractor (or, if the substitution of
property causes a decrease in the cost of performance on his own initiative), shall
equitably adjust such contractual provisions as may be affected by the decrease,
substitution, or withdrawl, in accordance with the procedures provided for in the
"Changes" clause of this contract.
(c) Title. Title to all property furnished by the Government shall remain in
the Government. In order to define the obligations of the parties under this clause,
title to each item of facilities, special test equipment, and special tooling (other
than that subject to a "Special Tooling" clause) acquired by the Contractor for the
Government pursuant to this contract shall pass to and vest in the Government when
its use in the performance of this contract commences, or upon payment therefor by
the Government whichever is earlier, whether or not title previously vested. All
Government-furnished property, together with all property acquired by the Contractor
title to which vests in the Government under this paragraph, is subject to the
provisions of this clause and is hereinafter collectively referred to as "Government
property," Title to Government property shall not be affected by the incorporation
or attachment thereof to any property not owned by the Government, nor shall such
Government property, or any part thereof, be or become a fixture or lose its identity
as personality by reason of affixation to any reality.
(d) Property Administration. The Contractor shall comply with the provisions
of the 'Manual for Control of Government Property in Possession of Contractors"
(Appendix B, 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. Material to be furnished by the Government shall be ordered or
returned by the Contractor, when required, in accordance with the "Manual for Military
Standard RequisitLoning and Issue Procedure (MILSTRIP) for Defense Contractors"
(Appendix II, Armed Services Procurement Regulation) as in effect on the date of this
contract,which Manual is hereby incorporated by reference and made a part of this
contract.
(e) Use of Government Property, The Government property shall, unless otherwise
provided herein or approved by the Contracting Officer, be used only for the per-
formance of this contract.
(f) Maintenance and Repair of Government Property. The Contractor shall maintain
and administer, in accordance with sound industrial practice, a program for the
maintenance, repair, protection, and preservation of Government property, until
disposed of by the Contractor in accordance with this clause. In the event that
any damage occurs to Government 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
4 performance of any repair or replacement for which the Government is responsible,
and an equitable adjustment will be made in any contractual provisions affected by
such repair or replacement of Government property made at the direction of the Govern-
ment, in accordance with the procedures provided for in the "Changes" clause of this
contract. Any repair or replacement for which the Contract r ible
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 under Sre0W4~ctCliaP1PTIBRP~Ri~pps'11OtRe4Contractor
*ai hit own expense.
(g) Risk of Loss. Unless provided in this contract, the Contractor assumes
the risk of, and shall be responsible for, any loss of or damage to Government
property provided under this contract upon its delivery to him or upon passage
of title thereto to the Government as provided in paragraph (c) hereof, except for
reasonable wear and tear and except to the extent that such property is consumed
in the performance of this contract.
(If the Contractor is required to submit cost or pricing data in accordance
with ASPR 3-807.3 this paragraph (g) shall be applicable in lieu of paragraph (g)
above.)
(g) Risk of loss.
(1) 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 Con-
tractor's managerial personnel as defined herein, to maintain and administer the
program for the maintenance, repair, protection and preservation of the Government
property as required by paragraph (f) hereof, and except as specifically,-provided
in the clause or clauses of this contract designated in the Schedule, the Contractor
shall not be liable for loss or destruct:. on of or damage to the Government property
provided under this contract:
(i) caused by any peril while the property is in transit off the
contractor's premises; or
(ii) 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 the removal therefrom because of any
of the following perils--
(A) 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, excluding vehicles owned or operated by the Contractor or any agent
or employee of the Contractor; smoke; sprinkler leakage; earthquake or vol-
canic eruption; flood, meaning thereby rising of a body of water; nuclear
reaction, nuclear radiation or radioactive contamination; hostile or warlike
action, including action in hindering, combating, or defending against an
actual, impending or expected attack by any government or soverign power
(de jure or de facto), or by any authority using military, naval, or air forces;
or by an agent of any such government, power, authority, or forces; or
(B) other peril, of a type not listed above, if such other peril
is customarily covered by insurance (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 respect to
similar property in the same general Locale.
The perils set forth in (i) and (ii) above are hereinafter called "excepted
perils."
If the Contractor transfers Government property to the possession and control of
a subcontract9r, the transfer shall not affect the liability of the Contractor for
loss or destruction of or damage to the property as set forth above. However, the
Contractor shall require the subcontractor to assume the risk of, and be responsible
for, any loss or destruction of or damage to the property while in the latter's
possession or control, except to the extent that the subcontract with the prior
approval of the Contracting Officer, provides for the relief of the subcontractor
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 from suc4PP 9'M!9ic R 5i; shall
contain appropriate provisions requiring the return of all Government 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 ppmme contract.
The term "Contractor's managerial personnel" as used herein means the Contractor's
directors, officers and any of his managers, superintendents, or other equivalent
representatives who have supervision or direction of:
(i all or substantially all of the Contractor's business;
(ii all or substantially all of the Contractor's operation at any one plant
or separate location at which the contract is being performed; or
(iii) a separate and complete major industrial operation in connection with
the performance of this contract.
(2) The Contractor represents that he is not including in the price hereunder,
and agrees that he will not hereafter include in any price to the Government, any
change or reserve for insurance (including any self-insurance funds or reserve)
covering loss or destruction of or damage to the Government property c.zsed by any
excepted peril.
(3) Upon the happening of loss or destruction of or damage to any Government
property caused by an excepted peril, the Contractor shall notify be Contracting
Officer thereof, and shall communicate with the Loss and Salvage Organization, if
any, now or hereafter designated by the Contracting Officer, and with the assistance
of the Loss and Salvage Organization so designated (unless the Contracting Officer
has directed that no such organization be employed), shall take all reasonable
steps to protect the Government property from further damage, separate the damaged
and undamaged Government property; put all the Government pro'perty in the best
possible order, and furnish to the Contracting Officer a statement of:
i) the lost, destroyed, and damaged Government property;
ii) the time and origin of the loss, destruction or damage;
iii) all known interests commingled property of which the Government
property is a part; and
(iv) the insurance, if any, covering any part of or interest in such com-
mingled property.
The Contractor shall be entitled to an equitable adjustment in the contract price for
the expenditures made by him in performing his obligations under this subparagraph
(3) (including charges made to the Contractor by the Loss and Salvage Organization,
except any of such charges the payment of which the Government has, at its option,
assumed directly), in accordance with the procedures provided for in the "Changes"
clause of this contract.
(4) With the approval of the Contracting Officer after loss or destruction of
or damage to Government-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 Government or in order to permit resumption of business or the like,
sell for the account of the Government any item of Government 'property which has been
damaged beyond practicable repair, or which is so commingled or combined with property
of others, including the Contractor, that separation is impracticable.
(5) Except to the extent of any loss or destruction of or damage to Government
property for which the Contractor is relieved of liability under the foregoing
provisions of this clause, and except for reasonable wear and tear of depreciation,
or the utilization of the Government property in accordance with the provisions of
this contract, the Contractor assumes the risk of, and shall be responsible for, any
loss or destruction of or damage to the Government property, and such property (other
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 than tttat which is erm ed to P614 6r 6 64266f2Qpvernment in
as good tpl~i9 perm
io "i. ~$ ~, J ontrac or in connection with this con-
tract, or as repaired under paragraph (f) above.
(6) In the event the Contractor is reimbursed or compensated for any loss or
destruction of or damage to the Government property, caused by an excepted peril,
he shall equitably reimburse the Government. The Contractor shall do nothing to
prejudice the Government's 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 cooperation (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 property, the Contractor shall enforce the liability of
the subcontractor for such loss or destruction of or damage-to the Government
property for the benefit of the Government.
(7) If this contract is for the development, production, modification, main-
tenance or overhaul of aircraft, or otherwise involves the furnishing of aircraft
by the Government, the "Ground and Flight Risk" clause of this contract shall con-
trol, to the extent it is applicable, in the case of loss or destruction of, or
damage to, aircraft.
(h) Access. The Government, and any persons designated by it, shall at all
reasonable times have access to the premises wherein any such Governd'ient property is
located, for the purpose of inspecting the Government property.
(i) Final Accounting and Disposition of Government Property. Upon the completion
of this contract, or at such earlier dates as may be fixed by the Contracting Officer,
the Contractor shall submit, in a form acceptable to the Contracting Officer,
inventory schedules covering all items of Government property not consumed in the
performance of this contract (including any resulting scrap) or not theretofore
delivered to the Government, and shall prepare for shipment, deliver f.o.b. origin,
or dispose of the Government property as may be directed or authorized by the Con-
tracting Officer. The net proceeds of any such disposal shall be credited to the con-
tract price or shall be paid in such other manner as the Contracting Officer may direct.
(j) Restoration of Contractor's Premises. Unless otherwise provided herein, the
Government,,
(i) may abandon any Government property in place, and thereupon all obligations
of the Government regarding such abandoned property shall cease; and
(ii) shall not be under any duty or obligation to restore or rehabilitate,
or to pay the costs of the restoration or rehabilitation of, the Con-
tractor's plant or any portion thereof which is affected by the
abandonment or removal of any Government property.
(k) Communications. Al l1.communications issued pursuant to this clause shall be in
writing or in accordance with the "Manual for Military Standard Requisitioning and
Issue Procedure (MILSTRIP) for Defense Contractor's" (Appendix II, Armed Services
Procurement Regulation.)
24. NOTICE AND ASSISTANCE REGARDING PATENT AND COPYRIGHT INFRINGEMENT (Jan. 1965)
The provisions of this clause shall be applicable only if the:,amount'of this con-
tract exceeds 10,000.
(a) The Contractor shall report to the Contracting Officer, promptly and in
reasonable written detail, each notice or claim of patent or copyright infringement
based on the performance of this contract of which the Contractor has knowledge.
-17-
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 (ba In rrle?afsea60d/O9gELNC?1k~~'I~O'12EN12a~4aim against the
Governme rma e be ore sui has been instituted, on account of any alleged patent
or copyright infringement arising out of the performance of this contract or out
of the use of any supplies furnished or work or services performed hereunder, the
Contractor shall furnish to the Government, upon request, all evidence and infor-
mation in possession of the Contractor pertaining to such suit or claim. Such
evidence and information shall be furnished at the expense of the Government except
in those cases in. which the Contractor has agreed to indemnify the Government
against the claim. being asserted.
(c) This clause shall be included in all subcontracts.
25, PRICE REDUCTION FOR DEFECTIVE COST OR PRICING DATA (Sep. 1964+) (a) If the Con-
tracting Officer determines that any price, including profit or fee, negotiated in
connection with this contract was increased by any significant sums because the
Contractor, or any subcontractor in connection with a subcontract covered by (c)
below, furnished incomplete or inaccurate cost or pricing data or data not current
as certified in the Contractor's Certificate of Current Cost or Pricing Data,
then such price shall be reduced accordingly and the contract shall be modified in
writing to reflect such adjustment.
(b) Failure to agree on a reduction shall be a dispute concerning a question
of fact within the meaning of the "Disputes" clause of this contract.
(c) The Contractor agrees to insert the substance of paragraphs (a) and (c)
of this clause in each of his cost-reimbursement type, price redeterminable, or
incentive subcontracts hereunder, and in any other subcontract hereunder in excess
of $100,000 unless the price is based on adequate price competition, quantities to
the general public, or prices set by law or regulation. Inceach such excepted
subcontract hereunder which exceeds $100,000, the Contractor shall insert the
substance of the following clause.
PRICE REDUCTION FOR DEFECTIVE COST OR PRICING DATA--'RICE ADJUSTMENTS
(a) This clause shall become operative only with respect to any change
or other modificatons made pursuant to one or more provisions of this contract
which involves a price adjustment in excess of $100,000, except where the price
is based on adequate price competition, established catalog or market prices
of commercial items sold in substantial quantities to the general public, or
prices set by law or regulation. The right to price reduction under this
clause shall be limited to such price adjustments.
(b) If the Contractor determines that any price, including profit or fee,
negotiated in connection with any price. adjustment within the purview of
paragraph (a) above was increased by any significant sum because the sub-
contractor or any of his subcontractors in connection with a subcontract
covered by paragraph (c) below, furnished incomplete or,inaccurate cost or
pricing data or data not current as of the date of execution of the sub-
contractor's certificate of current cost or pricing data, then such price
shall be reduced accordingly and the subcontract shall be modified in writing
to reflect suchuadjustment.
(c) The subcontractor agrees to insert the substance of this clause in
each subcontract hereunder which exceeds $100,000.
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owe NV
 pB Svc VoT-"Oe~eQ OrmtNGC '- 6~ IBO0 001 ~ O tractor shall
require con ra.ctors ereunder to submit cost or pricing data under the
following circumstances: (i) prior to award of any cost-reimbursement type,
incentive, or price redeterminable subcontract: (ii) prior to the award of any sub-
contract the price of which is expected to exceed $100,000; (iii) prior to the
pricing of any subcontract change or other modification for which the price adjust-
ment is expected to exceed $100,000; except in the case of (ii) or (iii) where the
price is based on adequate price competition, established catalog or market prices
of commercial items sold in substantial quantities to the general public, or prices
set by law or regulation.
(b) The Contractor shall require subcontractors to certify, in substantially
the same form as that used in the certificate by the Prime Contractor to the Govern-
ment, that to the best of their knowledge and belief, the cost and pricing data
submitted under (a) above is accurate, complete, and current as of the date of
execution, which date shall be as close as possible to the date of agreement on the
negotiated price of the subcontract.
(c) The Contractor shall insert the substance of this clause including this
paragraph (c) in each of his cost-reimbursement type, price redeterminable, or
incentive subcontract hereunder, and in any other subcontract hereunder which
exceeds $100,000 except where the price thereof is based on adequate price competition,
established catalog or market prices of commercial items sold in substantial quantities
to the general public, or prices set by law or regulation. In each such excepted
subcontract hereunder in excess of $100,000, the Contractor shall insert the sub-
stance of the following clause:
SUBCONTRACTOR COST AND PRICING DATA--PRICE ADJUSTMENTS
(a) Paragraphs (b) and (c) of this clause shall become operative only
with respect to any change or other modification made pursuant to one or more
provisions of this contract which involves a price adjustment in excess of
100,000. The requirements of this clause shall be limited to such price
adjustments.
(b) The Contractor shall require subcontractors hereunder to submit cost
or pricing data under the following circumstances: (i) prior to award of any
cost-reimbursement type, incentive or price redeterminable subcontract; (ii)
prior to award of any subcontract, the price of which is expected to exceed
$100,000; (iii) prior to the pricing of any subcontract change or other modifi-
cation for which the price adjustment is expected to exceed $100,000; except,
in the case of (ii) or (iii), where the price is based on adequate price
competition, established catalog or market prices of commercial items sold in
substantial quantities to the general public, or prices set by law or
regulation.
(c) The contractor shall require subcontractors to certify, in substantially
the same form as that used in the certificate by the Prime Contractor to the
Government, that to the best of their knowledge and belief the cost and
pricing data submitted under (b) above is accurate, complete, and current as
of the date of execution which date shall be as lose as possible to the
date of agreement on the negotiated price of the contract modification.
(d) The Contractor shall insert the substance of this clause including
this paragraph (d) in each subcontract; hereunder which exceeds $100,000.
27. TECHNICAL INFORMATION (Oct. 1958).--(The provisions of the following c1lause
entitled "Technical Information" shall be applicable only to work required by this
Contract which is to be performed outside the United States, its territories, its
possessions or PuertooRico.)
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 The Gover b driF eate.20.095
MBO~k~
govern-
mental purposes, including delivery to other governments for the furtherance of
mutual defense of the United States Government and such other governments, all
or any part of the technical information including reports, drawings, blueprints,
and other data specified to be delivered by the Contractor to the Government under
this contract.
28. REPORTING OF ROYALTIES (FOREIGN) (Jan. 1958).--(The provisions of the follow-
ing clause entitled "Reporting of Royalties (Foreign)" shall be applicable only
to work required by this contract which is to be performed outside the United
States, its tertitories, its possessions or Puerto Rico.)
If this contract is in an amount which exceeds $50,000, the Contractor shall report
in writing to the Contracting Officer during the performance of this contract
the amount of royalties paid or to be paid by the Contractor directly to others in
the performance of this contract. The Contractor shall also (i) furnish in
writing any additional information relating to such royalties as may be requested
by the Contracting Officer and (ii) insert aprovision similar to this clause
in any subcontract hereunder which involves an amount in excess of the equivalent
of fifty thousand United States dollars.
29. INTEREST (May 1963).--Notwithstanding any other provision of this contract,
unless paid within 30 days all amounts that become payable by the Contractor to
the Government under this contract (net of any applicable tax credit under the
Internal Revenue Code) shall bear interest at the rate of six percent per annum
from the date due ;until paid and shall be subject to adjustments as provided by
Part 6 of Appendix E bf the Armed Services Procurement Regulation, as in effect
on the date of this contract. Amounts shall be due upon the earliest one of
(i) the date fixed pursuant to this contract, (ii) the date of the first written
demand for payment, consistent with this contract, (iii) the date of transmittal
by the Government to the Contractor of a proposed supplemental agreement to con-
firm completed negotiations fixing the amount, or (iv) if this contract pro-
vides for revision of prices, the date of written notice to the Contractor stating
the amount of'refund payable in connection with a pricing proposal or in connection
with a negotiated pricing agreement not confirmed by contract supplement.
30. ALTERATIONS.
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