COMPLIANCE WITH TITLE VI, CIVIL RIGHTS ACT OF 1964

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP80-00473A000200110001-1
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 21
• Document Creation Date: December 12, 2016
• Document Release Date: November 16, 2001
• Sequence Number: 1
• Publication Date: September 19, 1977
• Content Type: MF

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10) SEP 1977
MEMORANDUM FOR: Executive Officer to the DDA
VIA:
STATINTL FROM:
SUBJECT:
REFERENCES:
Director of Logistics
Chief, Procurement Management Staff, OL
Compliance with Title VI, Civil Rights
Act of 1964
(a) Presidential Memorandum, dtd 20 Jul 77,
same subject
(b) Memo, dtd 12 Aug 77, fm D/Pers to A-DDA,
same subject (OL 7 3723)
1. Action Requested: Reference (a) memorandum provides
notification to CIA that the President intends to enforce the
provisions of Title VI, which is the Civil Rights Act of 1964.
It goes on to state that the Department of Justice will be
following up on this matter and will be contacting various
agencies. While no specific action is required by the Presi-
dential memorandum, this paper is written to advise the DDA
of actions taken to date in the procurement area toward com-
pliance. The action was initially assigned to Director of
Personnel and subsequently transferred by reference (b) through
the Executive Officer to the DDA to the Director of Logistics
(D/L).
2. Background:
STATINTL In the fall of 1975 the then D/L, Mr. Michael J.
Malanick, along with Messrs. McDonald and met at
with the DCI's panel on equal opportunity to discuss
Agency compliance with various laws and regulations. In
preparation for that meeting various actions taken by the
Agency in the procurement area toward compliance with Title VI
were reviewed in depth. These actions encompassed the
STATINTL
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SUBJECT: Compliance with Title VI, Civil Rights Act of 1964
inclusioa in our Agency contract general provisions of required
ASPR clauses in the area of equal opportunity. Section A of
our general provisions is attached hereto to substantiate the
fact that appropriate clauses have been included and are operating.
Applicable clauses are underlined in the index of said general
provisions to facilitate in your review.
In conjunction with the actions necessary for compliance,
Procurement Note No. 75 was issued to all of our contracting
components to establish a procedure for verifying that necessary
affirmative action is being taken by Agency contractors whose
contracts reach the applicable dollar threshold ($1 million).
Agency contracting officers are required to call the Procurement
Management Staff (PMS) prior to execution of any contract for
11 million or more to verify that the contractor is in compliance
with applicable laws and regulations. The PMS has established
cleared contacts in DoD and GSA who provide information on
contractor compliance. Contractor compliance includes the
filing of affirmative action plans and inspections by cognizant
Government agencies to ensure performance of said affirmative
action plans.
3. Staff Position: We believe that insofar as Agency
industrial contracts are concerned, the Agency is in compliance
with the letter and spirit of Title VI. As revisions to Title VI
or other applicable laws result in revised or new mandatory
ASPR clauses, said clauses will be incorporated into all con-
tracts and appropriate action will be taken.
4. Recommendation: I recommend that no reply be made
to the reierence a memorandum as none is specifically STATINTL
requested and that further requests for information or action
on this matter be referred to the Office of Logistics.
cc: D/Pers w/o att
ER w/o att
DDA w/o att
GC w/o att
D/EEO w/o att
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SECTION A
GENERAL PROVISIONS
Article
Page
No.
Alterations in Contract ................ . .......
49
18
Assignments of Claims ........................
12
4
Audit .......................................
43
16
Authority of Sponsor's Employees ..............
48
18
Buy American Act ...........................
5
3
Clean Air and Water .........................
45
16
Contract Work Hours and Safety Standards Act-
Overtime Compensation .....................
18
7
Convict Labor ...............................
17
7
Cost Accounting Standards .....................
41
14
Covenant Against Contingent Fees ..............
9
3
Definitions ..................................
6
3
Delivery-Late ..............................
27
10
Delivery-Personal ...........................
30
11
Disclosure of Foreign Interest in United States
Domestic Concern ..........................
36
12
Disputes ....................................
7
3
Employment of the Handica a ...............
46
17
Equal Opportunity
20
7
Equal Opportunity Preaward Clearance of Sub-
contracts ............ .....................
37
12
Filing of Patent Applications ...................
14
4
F.O.B. Destination
28
10
F.O.B. Destination-Evidence of Shipment .......
29
11
Government Surplus .... .....................
4
2
Gratuities ...................................
10
3
Identification and Marking of Shipments .........
35
11
Page
Article No.
Inspection ................................... 26 10
Interest ..................................... 22 10
Listing of Employment Openings ............... 40 13
Manuals for Production-Type Items ............. 32 11
Minority Business Enterprises .................. 38 12
New Material ................................ 3 2
Non-Publicity ................................ 24 10
Notice and Assistance Regarding Patent and Copy-
right Infringement .......................... 13 4
Notice to the Government of Labor Disputes ..... 47 18
Officials Not To Benefit ....................... 8 3
Packing and Packaging ......... .............. 31 11
Payment of Interest on Contractors' Claims ....... 39 13
Priorities, Allocations, and Allotments ............ 11 4
Protected Shipment ........................... 34 11
Refund of Royalties ........................... 15 4
Rhodesia and Certain Communist Areas ........... 42 15
Rights in Technical Data ...................... 16 5
Security Requirements ........................ 23 10
Service Contract Act of 1965 ................... 21 8
Shipping Instructions ......................... 33 11
Standard Price ............................... 25 10
Telephone Security ........................... 44 16
Utilization of Labor Surplus Area Concerns ....... 2 2
Utilization of Small Business Concerns ........... 1 1
Walsh-Healey Public Contracts Act ............. 19 7
7-104.14(a) UTILIZATION OF SMALL BUSINESS CONCERNS
(1958 JAN.)
(a) It is the policy of the Government as declared by the
Congress that a fair proportion of the purchases and contracts
for supplies and services for the Government be placed with small
business concerns.
(b) The Contractor agrees to accomplish the maximum amount
of subcontracting to small business concerns that the Contractor
finds to be consistent with the efficient performance of the contract.
7-104.14(b) SMALL BUSINESS SUBCONTRACTING PRO-
GRAM (1975 OCT.) (Modified)
(a) If this contract is $500,000 or greater the Contractor agrees
to establish and conduct a small business subcontracting program
which will enable small business concerns to be considered fairly
as subcontractors and suppliers under this contract. In this con-
nection, the Contractor shall-
(1) Designate a liaison officer who will (i) maintain liaison
with the Government on small business matters, (ii) super-
vise compliance with the "Utilization of Small Business Concerns"
clause, and (iii) administer the "Contractor's Small Business Sub-
contracting Program."
(2) Provide adequate and timely consideration of the po-
tentialities of small business concerns in all "make-or-buy" decisions.
(3) Assure that small business concerns will have an equi-
table opportunity to compete for subcontracts, particularly by ar-
ranging solicitation, time for the preparation of bids, quantities,
specifications, and delivery schedules so as to facilitate the par-
ticipation of small business concerns. Where the Contractor's
list of potential small business subcontractors are excessively long,
reasonable effort shall be made to give all such small business
concerns an opportunity to compete over a period of time.
(4) Maintain records showing (i) whether each prospective
subcontractor is a small business concern, (ii) procedures which
have been adopted to comply with the policies set forth in this
clause, and (iii) with respect to the letting of any subcontract (in-
cluding purchase orders) exceeding $10,000, information substan-
tially as follows:
(A) Whether the award went to large or small business.
(B) Whether less than three or more than two small
business concerns were solicited.
(C) The reason for non-solicitation of small business if
such was the case.
(D) The reason for small business failure to receive
the award if such was the case when small business was
solicited.
The records maintained in accordance with (iii) above may be
in such form as the individual Contractor may determine, and
the information shall be summarized quarterly and submitted by
the purchasing department of each individual plant or division to
the Contractor's cognizant small business liaison officer. Such
quarterly summaries will be considered to be management records
only and need not be submitted routinely to the Government;
however, records maintained pursuant to this clause will be kept
available for review.
(5) Notify the Contracting Officer before soliciting bids or
quotations on any subcontract (including purchase orders) in ex-
cess of $10,000 if (i) no small business concern is to be solicited,
and (ii) the Contracting Officer's consent to the subcontract (or
ratification) is required by a "Subcontracts" clause in this con-
tract. Such notice will state the Contractor's reasons for non-
solicitation of small business concerns, and will be given as early
in the procurement cycle as possible so that the Contracting Officer
may give the Small Business Administration timely notice to permit
SBA a reasonable period to suggest potentially qualified small
business concerns through the Contracting Officer. In no case
will the procurement action be held up when to do so would, in
the Contractor's judgment, delay performance under the contract.
(6) Include the "Utilization of Small Business Concerns"
clause in subcontracts which offer substantial small business sub-
contracting opportunities.
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(7) Cooperate with the Contracting Officer in any studies and
surveys of the Contractor's subcontracting procedures and practices
that the Contracting Officer may from time to time conduct.
(8) Submit DD Forrri 1140-1 each quarter in accordance with
instructions provided on the form, except that where the Con-
tractor elects to report on ,a corporate rather than a plant basis, he
may submit his reports to the sponsor on a consolidated basis.
The reporting requirements of this subparagraph (8) do not apply
to Small Business Contractors, Small Business Subcontractors, or
educational and nonprofit institutions.
(b) A "small business concern" is a concern that meets the per-
tinent criteria established by the SBA and set forth in paragraph
1-701 of the Armed Services Procurement Regulation.
(c) The Contractor agrees that, in the event he fails to comply
with his contractual obligations concerning the small business sub-
contracting program, this contract may be terminated, in whole or
in part, for default.
(d) The Contractor further agrees to insert, in any subcontract
hereunder which is in excess of $500,000 and which contains the
"Utilization of Small Business Concerns" clause, provisions which
shall conform substantially to the language of this clause, includ-
ing this paragraph (d), and to notify the Contracting Officer of
the names of such subcontractors; except that the subcontractor
will submit the DD Form 1140-1 reports to the prime Contractor,
who will forward the same to the sponsor.
7-104.20(a) UTILIZATION OF LABOR SURPLUS AREA
CONCERNS (1970 JUN.)
(a) It is the policy of the Government to award contracts to labor
surplus area concerns, that (1) have been certified by the Secretary
of Labor (hereafter referred to respectively as certified concerns
with a first or second preference) regarding the employment of
a proportionate number of disadvantaged individuals and have
agreed to perform substantially (i) in or near sections of concen-
trated unemployment or underemployment or in persistent or sub-
stantial labor surplus areas or (ii) in other areas of the United
States; or (2) are noncertified concerns which have agreed to
perform substantially in peristent or substantial labor surplus
areas, where this can be done consistent with the efficient per-
formance of the contract and at prices no higher than are ob-
tainable elsewhere. The Contractor agrees to use his best efforts
to place his subcontracts in accordance with this policy.
(b) In complying with paragraph (a) of this clause and with
paragraph (b) of the clause of this contract entitled "Utilization of
Small Business Concerns," the Contractor in placing his subcon-
tracts shall observe the following order of preference: (1) certified
concerns with a first preference which are also small business
concerns, (2) other certified concerns with a first preference, (3)
certified concerns with a second preference which are also small
business concerns, (4) other certified concerns with a second pref-
erence, (5) persistent or substantial labor surplus area concerns
which are also small business concerns, (6) other persistent or sub-
stantial labor surplus area concerns, and (7) small business con-
cerns which are not labor surplus area concerns.
(2) Provide adequate and timely consideration of the po-
tentialities of labor surplus area concerns in all "make-or-buy"
decisions;
(3) Assure that labor surplus area concerns will have an equi-
table opportunity to compete for. subcontracts, particularly by ar-
ranging solicitations, time for the preparation of bids, quantities,
specifications, and delivery schedules so as. to facilitate the par-
ticipation of labor surplus area concerns;
(4) Maintain records showing procedures which have been
adopted to comply with the policies set forth in this clause; and
(5) Include the "Utilization of Labor Surplus Area Concerns"
clause in subcontracts which offer substantial labor surplus area
subcontracting opportunities.
(b) For subcontracting ~')urposes, a "labor surplus area concern"
is a concern that (1) has been certified by the Secretary of Labor
(hereafter referred to as a certified concern) regarding the em-
ployment of a proportionate number of disadvantaged individuals
and has agreed to perform substantially in or near sections of
concentrated unemployment or underemployment, in persistent
or substantial labor surplus areas, or in other areas of the United
States; or (2) is not a certified concern but has agreed to perform
substantially in persistent or substantial labor surplus areas. A
certified concern shall be deemed to perform a substantial pro-
portion of a contract in or near sections of concentrated unem-
ployment or underemployment, in persistent or substantial labor
surplus areas, or in other areas of the United States if the costs
that the concern will incur on account of manufacturing or pro-
duction in or near such sections or in such areas amount to more
than 25% of the price of such contracts; a concern shall be deemed
to perform a substantial proportion of a contract in a persistent
or substantial labor surplus area if the costs that the concern will
incur on account of manufacturing or production in such areas
amount to more than 50% of the price of such contract.
(c) The Contractor further agrees, with respect to any sub-
contract hereunder which is in excess of $500,000 and which
contains the clause entitled "Utilization of Labor Surplus Area
Concerns" that he will insert provisions in the subcontract which
will conform substantially to the language of this clause, including
this paragraph (c), and that he will furnish the names of such
subcontractors to the Contracting Officer.
7-104.48 NEW MATERIAL (1965 JAN.)
Except as to any supplies and components which the Specifi-
cation or Schedule specifically provides need not be new, the
Contractor represents that the supplies and components includ-
ing any former Government property identified pursuant to the
"Government Surplus" clause of this contract to be provided
under this contract are new (not used or reconditioned, and not
of such age or so deteriorated as to impair their usefulness or
safety). If at any time during the performance of this contract,
the Contractor believes that the furnishing of supplies or compo-
nents which are not new is necessary or desirable, he shall notify
the Contracting Officer immediately, in writing, including the
reasons therefor and proposing any consideration which will flow
to the Government if authorization to use such supplies is granted.
7-104.20(b) LABOR SURPLUS AREA SUBCONTRACTING
PROGRAM 11970 JUN.)
(a) If this contract is $600,000 or greater the Contractor agrees
to establish and conduct a program which will encourage labor
surplus area concerns to compete for subcontracts within their
capabilities. In this connection, the Contractor shall-
(1) Designate a liaison officer who will (i) maintain liaison
with duly authorized representatives of the Government on labor
surplus area matters, (ii) supervise compliance with the "Utilization
of Labor Surplus Area Concerns" clause, and (iii) administer the
Contractor's Labor Surplus Area Subcontracting Program;
7-104.49 GOVERNMENT SURPLUS (1965 JAN.)
(a) In the event the bid or proposal is based on furnishing
items or components which are former Government surplus prop-
erty or residual inventory resulting from terminated Government
contracts, a complete description of the items or components, quan-
tity to be used, name of Government agency from which acquired,
and date of acquisition shall be set forth on a separate sheet to be
attached to bid or proposal. Notwithstanding any information
provided in accordance with this provision, items furnished by the
Contractor must comply in all respects with the specifications
contained herein.
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(b) Except as disclosed. by the Contractor in (a) above, no
property of the type described herein shall be furnished under this
contract unless approved in writing by the Contracting Officer.
7-104.3 BUY AMERICAN ACT (1964 MAY) (Modified)
(a) In acquiring end ;products, the Buy American Act (41
U.S.C. 10a-d) provides that the Government give preference to
domestic source end products. For the purpose of this clause:
(i) "components" means those articles, materials, and sup-
plies, which are directly incorporated in the end products;
(ii) "end products" means those articles, materials, and
supplies, which are to be acquired under this contract for
public use; and
(iii) a "domestic source end product" means (A) an
unmanufactured end product which has been mined or
produced in the Un:ted States and (B) an end product
manufactured in the United States if the cost of the compo-
nents thereof which are mined, produced, or manufactured
in the United States or Canada exceeds 50 percent of the
cost of all its components. For the purposes of this (a) (iii )
(B), components of foreign origin of the same type or kind
as the products referred to in (b) (ii) or (iii) of this clause
shall be treated as components mined, produced, or manu-
factured in the United States.
(b) The Contractor agrees that there will be delivered under
this contract only domestic source end products, except end
products:
(i) which are for use outside the United States;
(ii) which the government determines are not mined, pro-
duced, or manufactured in the United States in sufficient
and reasonably available commercial quantities and of a satis-
factory quality;
(iii) as to which the Secretary determines the domestic
preference to be inconsistent with the public interest; or
(iv) as to which the Secretary determines the cost to the
Government to be unreasonable.
7-103.1 DEFINITIONS (1962 FEB.) (Modified)
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 depart-
ment 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 a Contracting Officer
acting within the limits of his authority.
(c) Except as otherwise provided in this contract, the term
"subcontracts" includes purchase orders under this contract.
(d) "Contract" as used herein means this contract and/or any
Task Orders issued under and subject to the provisions of this
contract.
(e) "Schedule" means a Schedule attached to this contract or
to a Task Order under this contract.
7-103.12 DISPUTES (11158 JAN.)
(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 Con-
tracting 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 an 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 accord-
ance with the Contracting Officer's. decision.
(b) This "Disputes" clause does not preclude consideration of
law questions in connection with decisions provided for in para-
graph (a) above; provided, that nothing in this contract shall be
construed as making final the decision of any administrative offi-
cial, representative, or board on a question of law.
7-103.19 OFFICIALS NOT TO BENEFIT (1949 JUL.)
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.
7-103.20 COVENANT AGAINST CONTINGENT FEES (1958
JAN.)
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, except bona fide employees or
bona fide 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 discre-
tion, to deduct from the contract price or consideration, or other-
wise recover, the full amount of such commission, percentage,
brokerage, or contingent fee.
7-104.16 GRATUITIES (1952 MAR.)
(a) The Government may, by written notice to the Contractor,
terminate the right of the Contractor to proceed under this con-
tract 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 Contractor, 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 shall be in issue
and may be reviewed in 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 representa-
tive) which shall be not less than three nor more than ten times
the costs incurred by the Contractor in providing any such gratui-
ties to any such officer or employee.
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(c) The rights and remedies of the Government provided in tractor shall, citing the thirty (30) day provision below, transmit
this clause shall not be exclusive and are in addition to any other the proposed application to the Contracting Officer for determina-
rights and remedies provided by law or under this contract. tion whether for re f 1
son
7-104.18 PRIORITIES, ALLOCATIONS, AND ALLOTMENTS
(1975 OCT.)
The Contractor shall follow the provisions of DMS Reg. 1 or
DPS Reg. 1 and all other applicable regulations and orders of the
Bureau of Domestic Commerce in obtaining controlled materials
and other products and materials needed to fill this order.
7-103.8 ASSIGNMENT OF CLAIMS (1962 FEB.) (Modified)
(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 Fed-
eral lending agency, and may thereafter be further assigned and
reassigned to any such institution. Any such assignment or re-
assignment 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. Unless otherwise provided in this
contract, payments to an assignee of any monies due or to become
due under this contract shall not, to - the extent provided in said
Act, as amended, be subject to reduction or set-off.
(b) In no event shall copies of this contract or of any plans,
specifications, or other similar documents relating to work under
this contract, if marked "Top Secret," "Secret," or "Confidential,"
be furnished to any assignee of any claim arising under this con-
tract or to any other person not entitled to receive the same.
However, 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) Approval of the Contracting Officer must be obtained prior
to making any assignment of claim under this contract.
7-103.23 NOTICE AND ASSISTANCE REGARDING PATENT
AND COPYRIGHT INFRINGEMENT (1965 JAN.)
The provisions of this clause shall be applicable only if the
amount of this contract exceeds $10,000.
(a) The Contractor shai'l 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.
(b) In the event of any claim or suit against the Government
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, when requested by
the Contracting Officer, all evidence and information in possession
of the Contractor pertaining to such suit or claim. Such evidence
and information shall be furnished at the expense of the Govern-
ment except where the Contractor has agreed to indemnify the
Government.
(c) This clause shall be included in all subcontracts.
7-104.6 FILING OF PATENT APPLICATIONS (1969 DEC.)
(a) Before filing or causing to be filed a patent application in
the United States disclosing any subject matter of this contract,
which subject matter is classified "Secret" or higher, the Con-
s o nahona security, such application
shall be placed under an order of secrecy or sealed in accordance
with the provisions of 35 U.S.C. 181-188 or the issuance of a
patent should be otherwise delayed under pertinent United States
statutes or regulations; and the Contractor shall observe any instruc-
tions of the Contracting Officer with respect to the manner of
delivery of the patent application to the United States Patent
Office for filing, but the Contractor shall not be denied the right
to file such patent application. If the Contracting Officer shall
not have given any such instructions within thirty (30) days
from the date of mailing or other transmittal of the proposed ap-
plication, the Contractor may file the application.
(b) The Contractor shall furnish to the Contracting Officer, at
the time of or prior to the time when the Contractor files or causes
to be filed a patent application in the United States disclosing any
subject matter of this contract, which subject matter is classified
"Confidential," a copy of such application for determination
whether, for reasons of national security, such application should
be placed under an order of secrecy or the issuance of a patent
should be otherwise delayed under pertinent United States statutes
or regulations.
(c) Where the subject matter of this contract is classified for
reasons of security, the Contractor shall not file, or cause to be
filed in any country, other than in the United States as provided
in (a) and (b) of this clause, any application or registration for
a patent containing any of said subject matter without first obtain-
ing written approval of the Contracting Officer.
(d) When filing any patent application coming within the
scope of this clause, the Contractor shall observe all applicable
security regulations covering the transmission of classified subject
matter, and shall also promptly furnish to the Contracting 'Officer
the serial number, filing date, and name of country of any such
patent application. When transmitting for the application to the
United States Patent Office, the Contractor shall by separate letter
identify by agency and number the contract or contracts which re-
quire security classification markings to be placed on the appli-
cation.
(e) "The substance of this clause shall be included in all sub-
contracts which cover or are likely to cover classified subject
matter."
7-104.8(b) REFUND OF ROYALTIES (1968 FEB.)
(a) The contract price includes certain amounts for royalties
payable by the Contractor or subcontractors or both, which
amounts have been reported to the Contracting Officer.
(b) The term "royalties" as used in this clause refers to any
costs or charges in the nature of royalties, license fees, patent
or license amortization costs, or the like, for the use or for rights
in patents and patent applications in connection with the per-
formance of this contract or any subcontract hereunder.
(c) The Contractor shall furnish to the Contracting Officer,
before final payment under this contract, a statement of royalties
paid or required to be paid in connection with the performance
of this contract and subcontracts hereunder together with the
reasons therefor.
(d) The Contractor will be compensated for royalties reported
under (c) above only to the extent that such royalties were in-
cluded in the contract price and are determined by the Contracting
Officer to be properly chargeable to the Government and allocable
to the contract. Therefore, to the extent that any royalties which
are included in the contract price are not in fact paid by the
Contractor or are determined by the Contracting Officer not to be
properly chargeable to the Government and allocable to the con-
tract, the contract price shall be reduced. Repayment or credit
to the Government shall be made as the Contracting Officer
directs.
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(e) If, at any time within three (3) years subsequent to final
payment under this contract, the Contractor for any reason is
relieved in whole or in part from the payment of the royalties
included in the final contract price as adjusted pursuant to para-
graph (d) above, the Contractor shall promptly notify the Con-
tracting Officer of that fact and shall reimburse the Government
in a corresponding amount.
(f) The substance of this clause,. including this paragraph (f),
shall be included in any subcontract in wihch the amount of
royalties reported during negotiation of the subcontract exceeds
two hundred and fifty dollars ($250).
7-104.9 RIGHTS IN TECHNICAL DATA AND COMPUTER
SOFTWARE (1974 NOV.)
(a) Definitions
(1) Technical Data incans recorded information, regardless of
form or characteristic, of a scientific or technical nature. It may, for
example, mean document: research, experimental, developmental
or engineering work; or be usable or used to define a design or
process or to procure, prcduce, support, maintain, or operate ma-
teriel. The data may be graphic or pictorial delineations in media
such as drawings or photographs; text in specifications or related
performance or design type documents, or computer printouts. Ex-
amples of technical data include research and engineering data,
engineering drawings and associated lists, specifications, standards,
process sheets, manuals, technical reports, catalog item identifi-
cations and related information and computer software documenta-
tion. Technical Data does not include computer software or finan-
cial, administrative, cost and pricing, and management data or
other information incidental to contract administration.
(2) Computer-a data processing device capable of accepting
data, performing prescribed operations on the data, and supplying
the results of these operations; for example, a device that operates
on discrete data by performing arithmetic and logic processes on
these data, or a device that: operates on analog data by performing
physical processes on the data.
(3) Computer So f twore-computer programs and computer
data bases.
(4) Computer Program-a series of instructions or statements
in a form acceptable to a computer, designed to cause the com-
puter to execute an operation or operations. Computer programs
include operating systems, assemblers, compilers, interpreters,
data management systems, utility programs, sort-merge programs,
and ADPE maintenance/diagnostic programs, as well as applica-
tions programs such as payroll, inventory control, and engineering
analysis programs. Computer programs may be either machine-
dependent or machine-independent, and may be general-purpose
in nature or designed to satisfy the requirements of a particular
user.
(5) Computer Data Base-a collection of data in a form
capable of being processed and operated on by a computer.
(6) Computer Software Documentation-Technical data,
including computer listings and printouts, in human-readable form
which (i) documents the design or details of computer software,
(ii) explains the capabilities: of the software, or (iii) provides op-
erating instructions for using the software to obtain desired results
from a computer.
(7) Unlimited Rights means rights to use, duplicate, or dis-
close technical data or computer software in whole or in part, in
any manner and for any purpose whatsoever, and to have or
permit others to do so.
(8) Limited Rights means rights to use, duplicate, or disclose
technical data, in whole or in part, by or for the Government,
with the express limitation that such technical data shall not,
without the written permission of the party furnishing such tech-
nical data be (a) released or disclosed in whole or in part outside
the Government, (b) used in whole or in part by the Government
for manufacture, or in the case of computer software documenta-
tion, for preparing the same or similar computer software, or (c)
used by a party other than the Government, except for:
(i) emergency repair or overhaul work only, by or for the
Government, where the item or process concerned is not
otherwise reasonably available to enable timely performance
of the work, provided that the release or disclosure thereof
outside the Government shall be made subject to a prohibition
against further use, release or disclosure; or
(ii) release to a foreign government, as the interest of the
United States may require, only for information or evaluation
within such government or for emergency repair or overhaul
work by or for such government under the conditions of (i)
above.
(9) Restricted Rights apply only to computer software, and
include, as a minimum, the right to:
(i) use computer software with the computer for which or
with which it was acquired, including use at any Government
installation to which the computer may be transferred by the
Government;
(ii) use computer software with a backup computer if the
computer for which or with which it was acquired is in-
operative;
(iii) copy computer programs for safekeeping (archives) or
backup purposes;
(iv) modify computer software, or combine it with other
software, subject to the provision that those portions of the
derivative software incorporating restricted rights software
are subject to the same restricted rights; and
(v) treat computer software bearing a copyright notice as
a published copyrighted work;
and in addition, any other specific rights not inconsistent there-
with listed or described in this contract or described in a license
or agreement made a part of this contract.
(b) Government Rights.
(1) Unlimited Rights. The Government shall have unlimited
rights in:
(i) technical data and computer software resulting directly
from performance of experimental, developmental or research
work which was specified as an element of performance in
this or any other Government contract or subcontract;
(ii) computer software required to be originated or de-
veloped under a Government contract, or generated as a
necessary part of performing a contract;
(iii) computer data bases, prepared under a Government
contract, consisting of information supplied by the Govern-
ment, information in which the Government has unlimited
rights, or information which is in the public domain;
(iv) technical data necessary to enable manufacture of
end-items, components and modifications, or to enable the
performance of processes, when the end-items, components,
modifications or processes have been, or are being, developed
under this or any other Government contract or subcontract
in which experimental, developmental or research work is, or
was specified as an element of contract performance, except
technical data pertaining to items, components, processes, or
computer software developed at private expense (but see
(2) (ii) below);
(v) technical data or computer software prepared or re-
quired to be delivered under this or any other Government
contract or subcontract and constituting corrections or changes
to Government-furnished data or computer software;
(vi) technical data pertaining to end-items, components or
processes, prepared or required to be delivered under this
or any other Government contract or subcontract, for the
purpose of identifying sources, size, configuration, mating
and attachment characteristics, functional characteristics and
performance requirements ("form, fit and function" data,
e.g., specification control drawings, catalog sheets, envelope
drawings, etc.);
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(vii) manuals or instructional materials prepared or re-
quired to be delivered under this contract or any subcontract
hereunder for installation, operation, maintenance or training
purposes;
(viii) technical data or computer software which is in the
public domain, or has been or is normally furnished without
restriction by the Contractor or subcontractor; and
(ix) technical data or computer software listed or de-
scribed in an agreement incorporated into the schedule of
this contract which the parties have predetermined, on the
basis of subparagraphs (i) through (viii) above, and agreed
will be furnished with unlimited rights.
(2) Limited Rights. The Government shall have limited rights
(i) technical data, listed or described in an agreement
incorporated into the Schedule of this contract, which the
parties have agreed will be furnished with limited rights;
and
(ii) technical data pertaining to items, components or
processes developed at private expense, and computer soft-
ware documentation related to computer software that is
acquired with restricted rights, other than such data as may
be included in the data referred to in (b) (1) (i ), (v), (vi),
(vii), and (viii);
provided that only the po:rtion or portions of each piece of data
to which limited rights are to be asserted pursuant to (2) (i) and
(ii) above are identified (for example, by circling, underscoring,
or a note), and that the piece of data is marked with the legend
below in which is inserted:
A. the number of the prime contract under which the tech-
nical data is to be delivered,
B. the name of the Contractor and any subcontractor by
whom the technical data was generated, and
C. an explanation of the method used to identify limited
rights data.
LIMITED RIGHTS LEGEND
Contract No ........................
Contractor: ......... ..................
Explanation of Limited Rights Data Identification
Method Used
.......... .......... .......... ...........
Those portions of this technical data indicated as limited rights
data shall not, without the written permission of the above Con-
tractor, be either (a) used, released or disclosed in whole or in
part outside the Government, (b) used in whole or in part by the
Government for manufacture or, in the case of computer software
documentation, for preparing the same or similar computer soft-
ware, or (c) used by a party other than the Government, except
for: (i) emergency repair or overhaul work only, by or for the
Government, where the item or process concerned is not otherwise
reasonably available to enable timely performance of the work,
provided that the release or disclosure hereof outside the Govern-
ment shall be made subject: to a prohibition against further use,
release or disclosure; or (ii) release to a foreign government, as
the interest of the United States may require, only for informa-
tion or evaluation within such government or for emergency repair
or overhaul work by or for such government under the conditions
of (i) above. This legend, together with the indications of the
portions of this data which are subject to such limitations shall be
included on any reproduction hereof which includes any part of
the portions subject to .such limitations.
(3) Restricted Rights. The Government shall have restricted
rights in computer software, listed or described in a license
or agreement made a part of this contract, which the parties have
agreed will be furnished with restricted rights, provided, however,
notwithstanding any contrary provision in any such license or
agreement, the Government shall have the rights in (a) (9) (i )
through (v). Such restricted rights are of no effect unless the
computer software is marked by the Contractor with the following
legend:
RESTRICTED RIGHTS LEGEND
Use, duplication or disclosure is subject to
restrictions stated in Contract No .................
with ......... (Name of Contractor) ..........
and the related computer software documentation includes a
prominent statement of the restrictions applicable to the computer
software.
(4) No legend shall be marked on, nor shall any limitation
or restriction on rights of use be asserted as to, any data or com-
puter software which the Contractor has previously delivered to
the Government without restriction. The limited or restricted
rights provided for by this paragraph shall not impair the right
of the Government to use similar or identical data or computer
software acquired from other sources.
(c) Material Covered by Copyright.
(1) In addition to the rights granted under the provisions of
(b) above, the Contractor agrees to and does hereby grant to the
Government a royalty-free, nonexclusive and irrevocable license
throughout the world for Government purposes to publish, trans-
late, reproduce, deliver, perform, dispose of, and to authorize
others so to do, all technical data and unlimited rights computer
software prepared or required to be delivered under the contract,
now or hereafter covered by copyright.
(2) Copyrighted matter shall not be included in technical
data furnished hereunder without the written permission of the
copyright owner for the Government to use such copyrighted
matter in the manner described in (c) (1) above, unless the
written approval of the Contracting Officer is obtained.
(3) The Contractor shall report to the Government (or
higher-tier Contractor) promptly and in reasonable written detail
each notice or claim of copyright infringement received by the
Contractor with respect to any technical data or computer soft-
ware delivered hereunder.
(d) Removal of Unauthorized Markings. Notwithstanding any
provision of this contract concerning inspection and acceptance,
the Government may correct, cancel, or ignore any marking not
authorized by the terms of this contract on any technical data
or computer software furnished hereunder, if:
(i) the Contractor fails to respond within sixty (60) days
to a written inquiry by the Government concerning the
propriety of the markings, or
(ii) the Contractor's response fails to substantiate, within
sixty (60) days after written notice, the propriety of limited
rights markings by clear and convincing evidence, or of
restricted rights markings by identification of the restrictions
set forth in the contract.
In either case the Government shall give written notice to the
Contractor of the action taken.
(e) Relation to Patents. Nothing contained in this clause shall
imply a license to the Government under any patent or be con-
strued as affecting the scope of any license or other right other-
wise granted to the Government under any patent.
(f) Limitation on Charges for Data and Computer Software.
The Contractor recognizes that the Government or a foreign
government with funds derived through the Military Assistance
Program or otherwise through the United States Government may
contract for property or services with respect to which the vendor
may he liable to the Contractor for charges for the use of technical
data or computer software on account of such a contract. The
Contractor further recognizes that it is the policy of the Govern-
ment not to pay in connection with its contracts, or to allow to be
paid in connection with contracts made with funds derived through
the Military Assistance Program or otherwise through the United
States Government, charges for data or computer software which
the Government has a right to use and disclose to others, which is
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in the public domain, or which the Government has been given
without restrictions upon its use and disclosure to others. This
policy does not apply to reasonable reproduction, handling, mail-
ing, and similar administrative costs incident to the furnishing
of such data or computer software. In recognition of this policy,
the Contractor agrees to participate in and make appropriate
arrangements for the exclusion of such charges from such con-
tracts, or for the refund of amounts received by the Contractor
with respect to any such charges not so excluded.
(g) Acquisition of Data and Computer Software from Subcon-
tractors.
(1) Whenever any technical data or computer software is to
be obtained from a subcontractor under this contract, the Con-
tractor shall use this same clause in the subcontract, without
alteration, and no other clause shall be used to enlarge or
diminish the Government's or the Contractor's rights in that sub-
contractor data or computer software which is required for the
Government.
(2) Technical data required to be delivered by a subcon-
tractor shall normally be delivered to the next-higher tier Con-
tractor. However, when there is a requirement in the prime con-
tract for data which may be submitted with limited rights pur-
suant to (b) (2) above, a subcontractor may fulfill such require-
ment by submitting such data directly to the Government rather
than through the prime Contractor.
(3) The Contractor and higher-tier subcontractors will not
use their power to award subcontracts as economic leverage to
acquire rights in technical data or computer software from their
subcontractors for themse:fves.
7-104.17 CONVICT LABOR (1975 OCT.)
In connection with the performance of work under this contract,
the Contractor agrees not: to employ any person undergoing sen-
tence of imprisonment except as provided by Public Law 89-176,
September 10, 1965 (18 U.S.C. 4082 (c) (2) ) and Executive Order
11755, December 29, 1973.
7-103.16(a) CONTRACT WORK HOURS AND SAFETY
STANDARDS ACT-OVERTIME COMPENSA-
TION (1971 NOV.)
This contract, to the extent that it is of a character specified
in the Contract Work Hours and Safety Standards Act (40 U.S.C.
327-333), is subject to tie following provisions and to all other
applicable provisions and exceptions of such Act and the regula-
tions 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
and Safety 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 damage shall be
computed with respect to each individual laborer or mechanic
employed in violation of t.te 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 para-
graph (a).
(e) 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
administratively be determined to be necessary to satisfy any
liabilities of such Contractor or subcontractor for unpaid wages
and liquidated damages as provided in the provisions of paragraph
(b).
(d) Subcontracts. The Contractor shall insert paragraphs (a)
through (d) of this clause in all subcontracts, and shall require
their inclusion in all subcontracts of 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.
7-103.17 WALSH-HEALEY PUBLIC CONTRACTS ACT (1958
JAN.)
If this contract is for the manufacture or furnishing of mate-
rials, supplies, articles, or equipment in an amount which exceeds
or may exceed $10,000 and is otherwise subject to the Walsh-
Healey Public Contracts Act, as amended (41 U.S.C. 35-45),
there are hereby incorporated by reference all representations and
stipulations required by said Act and regulations issued thereunder
by the Secretary of Labor, such representation and stipulations
being subject to all applicable rulings and interpretations of the
Secretary of Labor which are now or may hereafter be in effect.
ARTICLE 20
7-103.18 EQUAL OPPORTUNITY (1976 JUL.) (MODIFIED)
During the performance of this contract, the Contractor agrees
as follows:
(1) The Contractor will not discriminate against any em-
ployee or applicant for employment because of race, color, religion,
sex, 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, color,
religion, sex, or national origin. Such action shall include but not
be limited to the following: Employment, upgrading, demotion,
or transfer, recruitment or recruitment advertising; layoff or termi-
nation, rates of pay or other forms of compensation; and selection
for training, including apprenticeship. 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 Equal Opportunity clause.
(2) 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 employment
without regard to race, color, religion, sex, or national origin.
(3) The Contractor will send to each labor union or repre..
sentative of workers with which he has a collective bargaining
agreement or other contract or understanding a notice to be
provided by the agency Contracting Officer, advising the labor
union or workers' representative of the contractor's commitments
under this Equal Opportunity clause and shall post copies of the
notice in conspicuous places available to employees and applicants
for employment,
(4) The Contractor will comply with all provisions of Execu-
tive Order No. 11246 of September 24, 1965, as amended by
Executive Order No. 11375 of October 13, 1967, and of the rules,
regulations, and relevant orders of the Secretary of Labor.
(5) The Contractor will furnish all information and reports
required by Executive Order No. 11246 of September 24, 1965,
as amended by Executive Order No. 11375 of October 13, 1967,
and by the rules, regulations, and orders of the Secretary of Labor
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or pursuant thereto, and will permit access to his books, records,
and accounts by the contracting agency and the Secretary of
Labor for purposes of investigation to ascertain compliance with
such rules, regulations and orders,
(6) In the event o F the Contractor's noncompliance with the
Equal Opportunity clause of this contract or with any of the said
rules, regulations, or orders, this contract may be canceled, termi-
nated or suspended in whole or in part, and the Contractor may
be declared ineligible for further Government contracts in ac-
cordance with procedures authorized in Executive Order No.
11246 of September 24, 1965, as amended by Executive Order
No. 11375 of October 13, 1967, and such other sanctions may be
imposed and remedies invoked as provided in Executive Order
No. 11246 of September 24, 1965, as amended by Executive Order
No. 11375 of October 13, 1967, or by rule, regulation, or order
of the Secretary of Labcr, or as otherwise provided by law.
(7) The Contractor will include the provisions of Paragraphs
(1) through (7) in every subcontract or purchase order unless
exempted by rules, regulations, or orders of the Secretary of Labor
issued pursuant to section 204 of Executive Order No. 11246 of
September 24, 1965, as amended by Executive Order No. 11375
of October 13, 1967, so that such provisions will be binding upon
each subcontractor or verdor. The Contractor will take such action
with respect to any subcontract or purchase order as the con-
tracting agency may direct as a means of enforcing such pro-
visions including sanctions for noncompliance: Provided, however,
that in the event the Contractor becomes involved in, or is
threatened with, litigation with a subcontractor or vendor as a
result of such direction by the contracting agency, the Contractor
may request the United States to enter into such litigation to
protect the interests of the United States.
(8) Notwithstanding any provision above relating to dis-
closure of records, such access will not be granted to this contract
or to related records which might tend to reveal sponsor identity
if the association of the sponsor with this contract is classified,
without prior written approval of the Contracting Officer.
7-1903.41(n) SERVICE CONTRACT ACT OF 1965 (1968 SEP.)
This contract, to the extent that it is of the character to which the
Service Contract Act of 1965 (P.L. 89-286) applies, is subject to
the following provisions and to all other applicable provisions of
the Act and the regulations of the Secretary of Labor thereunder
(29 CFR Parts 4 and 151.6).
(a) Compensation. Each service employee employed in the
performance of this contract by the Contractor or any subcontractor
shall be paid not less than the minimum monetary wage and shall
be furnished fringe benefits in accordance with the wages and
fringe benefits determined by the Secretary of Labor or his
authorized representative, as specified in any attachment to this
contract. If there is such an attachment, any class of service
employees which is not listed therein, but which is to be employed
under this contract, shall be classified by the Contractor so as to
provide a reasonable relationship between such classifications and
those listed in the attachment, and shall be paid such monetary
wages and furnished such fringe benefits as are determined by
agreement of the interested parties, who shall be deemed to be
the contracting agency, th,? Contractor, and the employees who
will perform on the contract or their representatives. If the in-
terested parties do not agree on a classification or reclassification
which is, in fact, conformable, the Contracting Officer shall submit
the question, together with his recommendation, to the Admin-
istrator of the Wage and Hour and Public Contracts Divisions,
Department of Labor, or his authorized representative for final
determination. Failure to pay such employees the compensation
agreed upon by the interest=d parties or finally determined by the
Administrator or his authorized representative shall be a violation
of this contract. No employee engaged in performing work on this
contract shall in any event be paid less than the minimum wage
specified under section 6(a)(1) of the Fair Labor Standards Act
of 1938, as amended.
(b) Obligation to furnish fringe benefits. The Contractor or sub-
contractor may discharge the obligation to furnish fringe benefits
specified in the attachment or determined conformably thereto
by furnishing any equivalent combinations of fringe benefits, or
by making equivalent or differential payments in cash, pursuant
to applicable rules of the Administrator of the Wage and Hour
and Public Contracts Divisions, Department of Labor (Subpart B
of Part 4 (29 CFR) ).
(c) Minimum wage. In the absence of a. minimum wage attach-
ment for this contract, neither the Contractor nor any subcontractor
under this contract shall pay any of his employees performing
work under the contract (regardless of whether they are service
employees) less than the minimum wage specified by section
6 (a) (1) of the Fair Labor Standards Act of 1938 as amended.
However, in cases where section 6(e)(2) of the Fair Labor
Standards Act of 1938 is applicable, the rates specified therein
will apply. Nothing in this provision shall relieve the Contractor
or any subcontractor of any other obligation under law or con-
tract for the payment of a higher wage to any employee.
(d) Notification to employees. The Contractor and any sub-
contractor under this contract shall notify each service employee
commencing work on this contract of the minimum monetary wage
and any fringe benefits required to be paid pursuant to this con-
tract, or shall post a notice of such wages and benefits in a
prominent and accessible place at the worksite, using such poster
as may be provided by the Department of Labor.
(e) Safe and sanitary working conditions. The Contractor or
subcontractor shall not permit any part of the services called for
by this contract to be performed in buildings or surroundings or
under working conditions provided by or under the control or
supervision of the Contractor or subcontractor which are unsani-
tary or hazardous or dangerous to the health or safety of service
employees engaged to furnish these services. Except insofar as a
noncompliance can be justified as provided in section 1516.1(c)
of Title 29 CFR, this will require compliance with the applicable
standards, specifications, and codes developed and published by
the U.S. Department of Labor, any other agency of the United
States, and any nationally recognized professional organization
such as, without limitation, the following:
National Bureau of Standards, U.S. Department of Commerce.
Public Health Service, U.S. Department of Health, Education, and
Welfare.
Bureau of Mines, U.S. Department of the Interior
United States of America Standards Institute (American Standards
Association).
National Fire Protection Association.
American Society of Mechanical Engineers.
American Society for Testing and Materials.
American Conference of Government Industrial Hygienists.
Information as to the latest standards, specifications, and codes
applicable to the contract is available at the office of the Director
of the Bureau of Labor Standards, U.S. Department of Labor,
Railway Labor Building, 400 First Street, N.W., Washington, D.C.
20212, or at any of the regional offices of the Bureau of Labor
Standards as follows:
(1) North Atlantic Region, 341 Ninth Avenue, Room 920,
New York, N.Y. 10001 (Connecticut, Maine, Massachusetts, New
Hampshire, New York, Rhode Island, Vermont, New Jersey, and
Puerto Rico).
(2) Middle Atlantic Region, 1110-B Federal Building, Charles
Center, 31 Hopkins Plaza, Baltimore, Md. 21201 (Delaware, Dis-
trict of Columbia, Maryland, North Carolina, Pennsylvania, Vir-
ginia, and West Virginia).
(3) South Atlantic Region, 1371 Peachtree Street N.E., Suite
723, Atlanta, Ga. 30309 (Alabama, Florida, Georgia, Mississippi,
South Carolina, and Tennessee).
(4) Great Lakes Region, 848 Federal Office Building, 219
South Dearborn Street, Chicago, Ill. 60604 (Illinois, Indiana,
Kentucky, Michigan, Minnesota, Ohio, and Wisconsin).
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(5) Mid-Western Region, 2100 Federal Office Building, 911
Walnut Street, Kansas City, Mo. 64106 (Colorado, Idaho, Iowa,
Kansas, Missouri, Montana, Nebraska, North Dakota, South Dakota,
Utah, and Wyoming).
(6) Western Gulf Region, 411 North Akard Street, Room 601,
Dallas, Tex. 75201 (Arktmsas, Louisiana, New Mexico, Oklahoma,
and Texas).
(7) Pacific Region, 10353 Federal Building, 450 Golden Cate
Avenue, Box 36017, San Francisco, Calif. 94102 (Alaska, Arizona,
California, Hawaii, Nevada, Oregon, Washington, and Guam).
(f) Records. The Contractor and each subcontractor perform-
ing work subject to the Act shall make and maintain for three
years from the completion of the work, records containing the
information specified below for each employee subject to the Act
and shall make them available for inspection and transcription
by authorized representatives of the Administrator of the Wage
and Hour and Public Contracts Division, U.S. Department of
Labor.
(1) His name and address.
(2) His work classification or classifications, rate or rates
of monetary wages and fringe benefits provided, rate or rates
of fringe benefit payments in lieu thereof, and total daily and
weekly compensation.
(3) His daily and weekly hours so worked.
(4) Any deductions, rebates, or refunds from his total daily
or weekly compensation.
(5) A list of monetary wages and fringe benefits for those
classes of service employees not included in the minimum wage
attachment to this contract, but for which such wage rates or
fringe benefits have been determined by the interested parties
or by the Administrator of the Wage and Hour and Public Con-
tracts Division, Department of Labor, or his authorized repre-
sentative pursuant to the labor standards in paragraph (a) of
this clause. A copy of the report required by paragraph (j) of
this clause shall be deemed to be such a list.
(g) Withholding of payments and termination of contract.
The Contracting Officer shall withhold or cause to be withheld
from the Government Prime Contractor under this or any other
Government contract with the Prime Contractor such sums as he,
or an appropriate, officer of the Labor Department, decides may
be necessary to pay underpaid employees. Additionally, any failure
to comply with the requirements of this clause relating to the
Service Contract Act of 1965 may be grounds for termination
of the right to proceed with the contract work. In such event,
the Government may enter into other contracts or arrangements
for completion of the work, charging the Contractor in default
with any additional cost.
(h) Subcontractors. The Contractor agrees to insert the para-
graphs of this clause relating to the Service Contract Act of 1965
in all subcontracts. The term "Contractor" as used in these para-
graphs in any subcontract, shall be deemed to refer to the sub-
contractor, except in the term "Government Prime Contractor."
(i) Service employee. As used in this clause relating to the
Service Contract Act of 1965, the term "service employee" means
guards, watchmen, and any person engaged in a recognized trade
or craft, or other skilled mechanical craft, or in unskilled, semi-
skilled, or skilled manual' labor occupations; and any other em-
ployee including a foreman or supervisor in a position having trade,
craft, or laboring experience as the paramount requirement; and
shall include all such persons regardless of any contractual rela-
tionship that may be alleged to exist between a Contractor or sub-
contractor and such persons.
(j) Contractor's report. If there is a wage determination attach-
ment to this contract and one or more classes of service employees
which are not listed thereon are to be employed under the con-
tract, the Contractor shall report to the Contracting Officer the
monetary wages to be paid and the fringe benefits to be provided
each such class of service employee. Such report shall be made
promptly as soon as such compensation has been determined as
provided in paragraph (a) of this clause.
(k) Regulations incorporated by reference. All interpretations
of the Service Contract Act of 1965 expressed in Subpart C of
Part 4 (29 CFR) are hereby incorporated by reference in this
contract.
(1) These clauses relating to the Service Contract Act of 1965
shall not apply to the following:
(1) Any contract of the United States or District of Columbia
for construction, alteration and/or repair, including painting and
decorating of public buildings or public works;
(2) Any work required to be done in accordance with the
provisions of the Walsh-Healey Public Contracts Act (49 Stat.
2036);
(3) Any contract for the carriage of freight or personnel by
vessel, airplane, bus, truck, express, railway line, or oil or gas
pipeline where published tariff rates are in effect, or where such
carriage is subject to rates covered by section 22 of the Interstate
Commerce Act;
(4) Any contract for the furnishing of services by radio,
telephone, telegraph, or cable companies, subject to the Communi-
cations Act of 1934;
(5) Any contract for public utility services, including electric
light and power, water, steam, and gas;
(6) Any employment contract providing for direct services
to a Federal agency by an individual or individuals;
(7) Any contract with the Post Office Department, the
principal purpose of which is the operation of postal contract
stations;
(8) Any services to be furnished outside the United States.
For geographic purposes, the "United States" is defined in sec-
tion 8(d) of the Service Contract Act to include any State of
the United States, the District of Columbia, Puerto Rico, the
Virgin Islands, Outer Continental Shelf Lands, as defined in the
Outer Continental Shelf Lands Act, American Samoa, Guam, Wake
Island, Eniwetok Atoll, Kawajalein Atoll, Johnston Island. It does
not include any other territory under the jurisdiction of the
United States or any United States base or possession within a
foreign country.
(9) Any of the following contracts exempted from all pro-
visions of the Service Contract Act of 1965, pursuant to section
4(b) of the Act, which exemptions the Secretary of Labor hereby
finds necessary and proper in the public interest or to avoid serious
impairment of the conduct of Government business: Contracts
entered into by the United States with common carriers for the
carriage of mail by rail, air (except air star routes), bus, and
ocean vessel, where such carriage is performed on regularly sched-
uled runs of the trains, airplanes, buses, and vessels over regularly
established routes and accounts for an insubstantial portion of
the revenue therefrom.
(m) Notwithstanding any of the provisions in paragraphs (a)
through (k) of this clause, relating to the Service Contract Act
of 1965, the following employees may be employed in accordance
with the following variations, tolerances, and exemptions, which
the Secretary of Labor hereby finds pursuant to section 4(b) of
the Act to be necessary and proper in the public interest, or to
avoid serious impairment of the conduct of Government business:
(1) (i) Apprentices, student-learners, and workers whose earn-
ing capacity is impaired by age, physical, or mental
deficiency or injury may be employed at wages lower
than the minimum wages otherwise required by
section 2(a)(1) or 2(b)(1) of the Service Contract
Act of 1965, without diminishing any fringe benefits
or cash payments in lieu thereof required under sec-
tion 2(a)(2) of that Act, in accordance with the pro-
cedures prescribed for the employment of apprentices,
student-learners, handicapped persons, and handi-
capped clients of sheltered workshops under section 14
of the Fair Labor Standards Act of 1938, in the
regulations issued by the Administrator of the Wage
and Hour and Public Contracts Divisions of the De-
partment of Labor (Parts 520, 521, 524, and 525 of
29 CFR).
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(ii) The Administrator will issue certificates under the
Service Contract Act of 1965 for the employment of
apprentices, student-learners, handicapped persons, or
handicapped clients of sheltered workshops not sub-
ject to the Fair Labor Standards Act of 1938, or
subject to different minimum rates of pay under the
two acts, authorizing appropriate rates of minimum
wages (but without changing requirements concern-
ing fringe benefits or supplementary cash payments
in lieu thereof), applying procedures prescribed by
the applicable regulations issued under the Fair Labor
Standards Act of 1938 (Parts 520, 521, 524, and 525
of 29 CFR).
(iii) The Administrator will also withdraw, annul, or can-
cel such certificates in accordance with the regula-
tions in Parts 525 and 528 of Title 29 of the Code
of Federal Regulations.
(2) An employee engaged in an occupation in which he
customarily and regularly receives more than $20 a month in
tips may have the amount of his tips credited by his employer
against the minimum wage required by section 2 (a) (1) or section
(2)(b)(1) of the Act, in accordance with the regulations in Part
531 of 29 CFR: Provided, however, That the amount of such
credit may not exceed K cents per hour.
794, 798). See "Contractor's Security Agreement" and "Security
Requirements for Contractors" which are incorporated herein by
reference only.
(c) Subcontractors. When it is deemed necessary to disclose
classified information to a subcontractor to accomplish the pur-
poses of this contract the Contractor will request permission of
the Contracting Officer prior to such disclosure. Upon the grant-
ing of permission, the Contractor shall cause to be inserted
in all subcontracts under this contract provisions similar to (a)
above, and Articles 36 and 44 below.
(d) Employment of Aliens. No aliens employed by the Con-
tractor shall be permitted to have access to the plans or specifica-
tions, or the work under construction, or to participate in the
contract trials, without the written consent beforehand of the
Contracting Officer.
Non-Publicity: It is a specific condition of the agreement that
the Contractor shall not use or allow to be used any aspect of this
agreement for publicity or advertisement purposes. The Con-
tractor may request a waiver of the foregoing but shall not deviate
therefrom unless so authorized in writing by the Contracting
Officer.
7-104.39 INTEREST (1972 MAY)
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 from the date due until paid and shall be subject
to adjustments as provide3 by Part 6 of Appendix E of the Armed
Services Procurement Regulation, as in effect on the date of this
contract. The interest race per annum shall be the interest rate
in effect which has been established by the Secretary of the
Treasury pursuant to Public Law 92-41; 85 Stat. 97 for the Re-
negotiation Board, as of the date the amount becomes due as
herein provided. Amounu 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,
including demand consequent upon default termination; (iii)
the date of transmittal by the Government to the Contractor of
a proposed supplemental agreement to confirm completed ne-
gotiations fixing the amount; or (iv) if this contract provides
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.
Security Requirements (Applicable only if the Schedule of the
Contract specifies a Security Classification)
(a) The Contractor shall not initiate or perform any classified
work specified in the contract until he is in compliance with such
security measures as may be required by the Security Representa-
tive of the Contracting Officer and he has received written notice
of approval thereof from 1:he Contracting Officer.
(b) Disclosure of Information. It is understood that disclosure
of information relating to the work contracted for hereunder, to
any person not entitled to receive it, or failure to safeguard all
TOP SECRET, SECRET, and CONFIDENTIAL matter that may
come to the Contractor o:r any person under his control in con-
nection with the work under this contract, may subject the Con-
tractor, his agents, employees and subcontractors to criminal
liability under the laws of the United States (18 U.S. Code 793,
Standard Price: The price for any standard commercial equip-
ment hereunder is not in excess of that charged by the Contractor
to the public or other Government activities for like equipment,
quantities and conditions.
Inspection: Unless specified otherwise in this contractual docu-
ment, inspection during the course of the performance of the work
hereunder may be made by technical representative(s) of the
Contracting Officer. In any event, final inspection and acceptance
shall be at consignee destination.
Late Delivery: In the event the Contractor encounters difficulty
in meeting performance requirements, or when he anticipates dif-
ficulty in complying with the contract delivery schedule or date,
he shall immediately notify the Contracting Officer in writing
giving pertinent details; provided, however, that this data shall be
informational only in character and that this provision shall not
be construed as a waiver by the Government of any delivery
schedule or date for any rights or remedies provided by law or
under this contract.
7-104.71 F.O.B. DESTINATION (1969 APR.)
Supplies shall be delivered to the destination consignee's wharf
(if destination is a port city and supplies are for export), ware-
house unloading platform, or receiving dock, at the expense of the
Contractor. The Government shall not be liable for any delivery,
storage, demurrage, accessorial, or other charges involved prior
to the actual delivery (or "constructive placement" as defined in
carrier tariffs) of the supplies to the destination, unless such
charges are caused by an act or order of the Government acting in
its contractual capacity. If rail carrier is used, supplies will be
delivered to the specified unloading platform of the consignee.
If motor carrier (including "piggy-back") is used, supplies will be
delivered to truck tailgate at the unloading platform of the con-
signee. If the Contractor uses rail carrier or freight forwarder for
less than carload shipments, he shall assure that the carrier will
furnish tailgate delivery if transfer to truck is required to complete
delivery to consignee.
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7-104.76 F.O.B. DESTINATION-EVIDENCE OF SHIPMENT
(1968 JUN.)
If this contract is awarded on an f.o.b. destination basis and if
transportation is accomplished by:
(i) common carrier, the Contractor agrees to furnish in
support of his invoice, a copy of the signed commercial bill
of lading indicating the carrier's receipt of the supplies cov-
ered by the invoice for transportation to the destination
specified in the contract;
(ii) parcel post, the Contractor agrees to furnish a certifi-
cate of mailing with his invoice; and
(iii) other than common carrier or parcel post, the Con-
tractor agrees to attach to his invoice a receipted copy of the
appropriate delivery document showing receipt at the destina-
tion specified in the contract.
Personal Delivery: In the event any item under this contract
is personally delivered to the Technical Representative of the Con-
tracting Officer, a signed. receipt in duplicate must be obtained
from said representative and one copy attached to any invoice
submitted for reimbursement for such item (s) or forwarded to the
Contracting Officer. Failure to do so will result in suspension of
payment, since the Disbursing Officer is prohibited from making
payment without evidence of delivery to other than the designated
consignee.
Packing and Packaging: Packing and packaging shall be in
accordance with standard commercial practice for domestic ship-
ment, as set forth in the Uniform Freight Classification for com-
mercial practice, to assure arrival at destination in serviceable
condition. Exterior of the container (s) shall bear the item num-
bers and consignee address.
Manuals for Production-Type Items: The Contractor shall
furnish with each production-type item and each standard com-
mercial type item deliverable hereunder, a manual or other data
necessary for the user to satisfactorily inspect, operate and main-
tain the equipment.
Shipping Instruction: If not specified in the contract, names
of consignees of all supplies or equipment to be delivered by the
Contractor hereunder will ba furnished to the Contractor in writing
by the Contracting Officer at a later date. Request therefor
shall be made to the Contracting Officer not later than thirty (30)
days prior to the date on which any of the articles are ready for
shipment.
Protected Shipment: In the event any material or items which
may be concerned hereunder are, or may later become SECRET
or CONFIDENTIAL and when the size or weight of such ma-
terial or items classified SECRET or CONFIDENTIAL makes
shipment by registered mail impracticable, commercial ship-
ment should be made as directed by the Contracting Officer.
The material must be securely crated and banded and prior to
shipment the Contractor shall advise the Contracting Officer
of (1) the date the material will be shipped, (2) the approximate
date of arrival, and (3) the approximate weight, size, and
number of cartons. Bulk shipments of TOP SECRET material
shall be made only in accordance with specific instructions which
will be furnished the Contractor by the Contracting Officer upon
notification that the material'. is ready for shipment.
ARTICLE 35
Identification and Marking of Shipments:
1. General:
It is an express condition of this contract that the Con-
tractor will make no reference of any nature to the purchaser in
connection with the shipment of materials or the shipping docu-
ments pertaining to this contract. This includes, but it is not
limited to the items being furnished, instruction books, blue-
prints, manuals, packing lists, instruction plates or identification
plates. Neither shall there be any reference to the purchaser
on or in any shipping container, shipping documents or billing
documents.
II. Bills of Lading:
The Bill of Lading shall show the consignee as cited on
Schedule "A" of the contract.
III. Exterior Markings:
A. No stenciling shall be applied to the shipping container
except for the following:
(1) Weight, dimensions and cubic content of container.
(2) Caution markings for handling purposes, such as;
"DELICATE INSTRUMENT," "THIS SIDE UP," "FRAG-
ILE," and "CENTER OF BALANCE" (on large items), etc.
B. The consignee address as given above in paragraph II
shall be marked on a shipping tag or label that shall be
securely fixed on the container by use of a waterproof adhesive
or stapled to the container. Such markings shall be protected
by a coat of transparent water-repellant material.
C. Container Numbering
(1) Each exterior container shall bear a number relative
to the total number of containers in the shipment, e.g., PKG.
1 of 5.
(2) Set marking-where an equipment item constitutes a
set, and is packed and shipped unassembled in two or more
separate pieces, each container shall be marked with the set
or assembly number, the number of the container relative to
the number of containers comprising the complete set, and
the total number of containers in the particular set or as-
sembly, together with a brief description of the component
part contained therein. Thus, a box containing a control
panel which is the third container of a group of four making
up set number two would require the following special set
markings: Set No. 2, Package 3 of 4, Control Panel.
(3) Container numbering shall not be stenciled on the
containers but shall be applied by tag or label as described
in paragraph III B.
IV. Interior Markings:
A. No markings shall be applied on any interior packaging
material or container that would identify the purchaser.
B. Each primary wrapper, envelope, bag, folding carton or
other packaging material, enclosing each assembly, part or
group of similar parts shall be marked or labeled so that it may
be readily identified against the packing list. Each secondary
and all other overwrap material shall be marked as to the con-
tents enclosed in the package. The markings shall include the
following:
(1) One of the following headings:
a. Part of basic unit (removed to facilitate packing)
b. Operating Spare Parts
c. Base Spare Parts
d. Tools
e. Service Equipment
f. Other category indicated in the contract
(2) Brief nomenclature
(3) Quantity
Items that are not enclosed in a wrapper or carton shall be iden-
tified with a tag that includes the above information.
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V. Packing Lists:
A master packing list shall accompany each shipment or
be forwarded under separate cover so that it reaches the con-
signee prior to the receipt of the shipment. The master pack-
ing list shall include:
(1) Name and address of consignor
(2) Name and address of consignee as in paragraph II
above
(3) Contract or Purchase order number
(4) Government Bill of Lading Number covering the ship-
ment if any
(5) Items being shipped shall be listed as required under
one or more of the headings listed in paragraph IV B (1)
above
(6) Stock and item number
(7) Nomenclatur s of item
(8) Quantity of each item
(9) Location of each item by container number and set
number when applicable
(10) Any data srecifically required to be included on the
packing list, by the terms of the contract.
VI. Unassembled Items:
A. Identification of connection components.
When it is necessary tD remove components to facilitate pack-
ing, all connecting wires, conduits, leads and other objects dis-
connected shall be tagged in such a manner so as to readily
identify lines of the various components.
B. Shipping bolts, collars, etc.
All objects that are attached to assembles for packing purposes
that require removal before the item can be put in operation,
shall be labelled accordingly in a conspicuous manner.
ARTICLE 36
Disclosure of Foreign Interest in United States Domestic Concern:
(a) The Contractor warrants that it has fully disclosed to
the Contracting Officer all information known to the Contractor
pertaining to the existence of any foreign interest in or control
of the Contractor. The 'Contractor further covenants to make
such information promptly known to the Contracting Officer should
such information be subsequently acquired at any time prior
to the final settlement of this contract.
(b) For purposes of this, Article, the following definitions shall
be deemed to be conclusive:
(1) "foreign"-in the case of a natural person, one who
is a citizen of any country other than the United States. In
the case of any other entity, one whose principal place of
business, or principal source of income, or actual control is
in or exerted from any country other than the United States.
(2) "interest"-beneficial or legal ownership of 10 per-
cent or more of the common stock of the Contractor by one
or more foreign persons or entities, or beneficial or legal
foreign ownership of any debt or debt security of the Con-
tractor whose owner or possessor is entitled (prior to default)
to any right of inspection of the Contractor's books or to
exercise any control or limitation over the Contractor's
business.
(3) "control"-membership on the board of directors or as
an officer of the Contractor of any foreign citizen, or of any
other person who represents in any capacity any foreign entity.
(c) The Contractor shall make a reasonable investigation of its
stock or other ownership and shall diligently keep itself informed
of the identity of the beneficial owners of any of its common stocks
held in `street name' or by any nominee, advising the Contracting
Officer of any significant inability to comply with this requirement.
It is recognized that interest: and control are factual matters and
that foreign interest and control may exist and be experienced
through other than the means defined above. The Contractor shall,
in any case in which it believes that foreign influence exists or is
being sought to be obtainec! over its affairs promptly notify the
Contracting Officer of all of the pertinent facts, even if such
influence is not exerted to the degree specified above.
(d) The Contractor hereby agrees that acquisition of a foreign
interest in, control of, or influence over, the Contractor may be
a basis for termination of this Contract. If such a condition is
created through no act of omission or commission of the Con-
tractor, the termination shall be for the convenience of the Gov-
ernment. However, if the acquisition of foreign influence, interest,
or control has been brought about by any act of omission or com-
mission on the part of the Contractor, and the Contract is termi-
nated, said actions of omission or commission shall be deemed
to be an act of default and the remedies of the parties determined
accordingly.
(e) Breach of any of the warranties, covenants and undertakings
of this provision may be regarded as a total breach of the Contract
and no implied waiver of this term may be created by any action
or inaction on the part of the Contracting Officer.
7-104.22 EQUAL OPPORTUNITY PRE-AWARD CLEARANCE
OF SUBCONTRACTS (1971 OCT.)
Notwithstanding the clause of this contract entitled "Subcon-
tracts," the Contractor shall not enter into a first-tier subcontract
for an estimated or actual amount of $1,000,000 or more without
obtaining in writing from the Contracting Officer a clearance that
the proposed subcontractor is in compliance with equal opportunity
requirements and therefore is eligible for award.
7-104.36 Minority Business Enterprises. (1971 Nov.) (Modified)
(A) UTILIZATION OF MINORITY BUSINESS ENTER-
PRISES (1971 NOV.) (Applicable if amount of this contract
is greater than $10.000.)
(a) It is the policy of the Government that Minority Busi-
ness Enterprises shall have the maximum practicable op-
portunity to participate in the performance of Government
contracts.
(b) The Contractor agrees to use his best efforts to carry
out this policy in the award of his subcontracts to the fullest
extent consistent with the efficient performance of this con-
tract. As used in this contract, the term "minority business
enterprise" means a business, at least 50 percent of which
is owned by minority group members or, in case of publicly-
owned businesses, at least 51 percent of the stock of which is
owned by minority group members. For the purposes of this
definition, minority group members are Negroes, Spanish-
speaking American persons, American-Orientals, American-
Indians, American Eskimos, and American Aleuts. Contractors
may rely on written representations by subcontractors regard-
ing their status as minority business enterprises in lieu of an
independent investigation.
(B) MINORITY BUSINESS ENTERPRISES SUBCONTRACT-
ING PROGRAM (1971 NOV.) (Applicable if the amount
of this Contract exceeds $500,000, and if, in the opinion
of the Contracting Officer, it offers substantial subcon-
tracting possibilities, and the inclusion of this clause is
identified in the schedule to the contract. Nothing herein
shall prevent the Contractor from voluntarily agreeing to
include this clause, if urged to do so by the Contracting
Officer in an appropriate case, even if the Contract does not
exceed $500,000.)
(a) The Contractor agrees to establish and conduct a pro-
gram which will enable minority business enterprises (as de-
fined in the clause, entitled, "Utilization of Minority Business
Enterprises") to be considered fairly as subcontractors and
suppliers under this contract. In this connection, the Con-
tractor shall:
(1) Designate a liaison officer who will administer the
Contractor's "Minority Business Enterprise Program."
(2) Provide adequate and timely consideration of the po-
tentialities of known minority business enterprises in all "make-
or-buy" decisions.
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(3) Assure that known minority business enterprises will
have an equitable opportunity to compete for subcontracts,
particularly by arranging solicitations, time for the prepara-
tion of bids, quantitie?3, specifications, and delivery schedules
so as to facilitate the participation of minority business enter-
prises.
(4) Maintain records showing (i) procedures which have
been adopted to comply with the policies set forth in this
clause, including the establishment of a source list of minority
business enterprises, (ii) awards to minority business enter-
prises on the source list, and (iii) specific efforts to identify
and award contracts to minority business enterprises.
(5) Include the "Utilization of Minority Business Enter-
prises" clause in subcontracts which offer substantial minority
business enterprise subcontracting opportunities.
(6) Cooperate with the Contracting Officer in any studies
and surveys of the Contractor's minority business enterprises
procedures and practices that the Contracting Officer may
from time to time conduct.
(7) Submit periodic reports of subcontracting to known
minority business enterprises with respect to the records re-
ferred to in subparagraph (4) above, in such form and manner
and at such time (not more often than quarterly) as the Con-
tracting Officer may prescribe.
(b) The Contractor further agrees to insert, in any sub-
contract hereunder which may exceed $500,000 provisions
which shall conform substantially to the language of this
clause, including this paragraph (b), and to notify the Con-
tracting Officer of the names of such subcontractors.
7-104.82 PAYMENT OF INTEREST ON CONTRACTORS'
CLAIMS (1976 JUL.)
(a) If an appeal is filed by the Contractor from a final
decision of the Contracting Officer under the DISPUTES
clause of this contract, denying a claim arising under the
contract, simple interest on the amount of the claim finally
determined owed by tie Government shall be payable to the
Contractor. Such interest shall be at the rate established by
the Secretary of the Treasury pursuant to Public Law 92-41,
85 STAT 97, from the date the Contractor furnishes to the
Contracting Officer his written appeal under the DISPUTES
clause of this contract, to the date of (i) a final judgment by
a court of competent jurisdiction, or (ii) mailing to the
Contractor of a supplemental agreement for execution either
confirming completed negotiations between the parties or
carrying out a decision of a board of contract appeals.
(b) Notwithstanding (a) above, (i) interest shall be
applied only from the date payment was due, if such date
is later than the filing of appeal; and (ii) interest shall not be
paid for any period of time that the Contracting Officer
determines the Contractor has unduly delayed in pursuing
his remedies before a board of contract appeals or a court
of competent jurisdiction.
ARTICLE 40
7-103.27 LISTING OF EMPLOYMENT OPENINGS (1975 JUN.)
(This clause is applicable pursuant to 41 CFR 50-250 if this
contract is for $10,000 or more.)
(a) The Contractor, to provide special emphasis to the employ-
ment of qualified disabled veterans and veterans of the Vietnam
era, agrees that all suitable employment openings of the Contractor
which exist at the time of the execution of this contract and those
which occur during the performance of this contract, including
those not generated by this contract and including those occurring
at an establishment of the Contractor other than the one wherein
the contract is being performed but excluding those of indepen-
dently operated corporate affiliates, shall be offered for listing at
the appropriate office of the State employment service system
wherein the opening occurs, and to provide reports to such office
regarding employment openings and hires as may be required.
(b) Listing of employment openings with the employment serv-
ice system pursuant to this clause shall be made at least con-
currently with the use of any other recruitment service or effort
and shall involve the normal obligations which attach to the placing
of a bona fide job order, including the acceptance of referrals of
veterans and non-veterans. Listing of employment openings does
not require the hiring of any particular job applicant or from any
particular group of job applicants referred by the employment
service system. Nothing contained herein is intended to relieve
the Contractor from any requirements in any Executive Order or
regulation regarding non-discrimination in employment.
(c) (1) Reports required shall include, but not be limited to,
periodic reports which shall be filed at least quarterly with the
appropriate local State employment service office or, where the
Contractor has more than one establishment in a State, with the
central office of that State employment service. Such reports shall
indicate for each establishment (i) the number of individuals who
were hired during the reporting period, (ii) the number of those
hired who were disabled veterans, and (iii) the number of those
hired who were non-disabled veterans of the Vietnam era. The
Contractor shall maintain copies of the reports submitted until
the expiration of one year after final payment under the contract,
during which time they shall be made available, upon request,
for examination by any authorized representatives of the Con-
tracting Officer or the Secretary of Labor.
(2) Whenever the Contractor becomes contractually bound
to the listing provisions of this clause, he shall advise the employ-
ment service system in each state wherein he has establishments,
of the name and location of each such establishment in the State.
As long as the Contractor is contractually bound to these pro-
visions and has so advised the State employment service system,
there is no need to advise the State system of subsequent contracts.
The Contractor may advise the State system when he is no longer
bound by this contract clause.
(3) If the contract is with a State or local government, the
procedures set forth in subparagraphs (1) and (2) of this para-
graph (c) are not required.
(d) This clause does not apply to the listing of employment
openings which occur and are filled outside the 50 States, the
District of Columbia, Guam, Puerto Rico, and the Virgin Islands.
(e) This clause does not apply to openings which the Contractor
proposes to fill from within his own organization or to fill pur-
suant to a customary and traditional employer-union hiring arrange-
ment. This exclusion does not apply to a particular opening once
an employer decides to consider applicants outside of his own
organization or employer-union arrangements for that opening.
(f) As used in this clause:
(1) "All suitable employment openings" includes, but is not
limited to, openings which occur in the following job categories:
production and nonproduction; plant and office; laborers and
mechanics; supervisory and nonsupervisory; technical; and execu-
tive, administrative, and professional openings which are com-
pensated on a basis of less than $18,000 per year. This term
includes full-time employment, temporary employment of more
than three (3) days' duration, and part-time employment.
(2) "Appropriate office of the State employment service
system" means the local office of the Federal-State national system
of public employment offices with assigned responsibility for serving
the area of the establishment where the employment opening is to
be filled, including the District of Columbia, Guam, Puerto Rico,
and the Virgin Islands.
(3) "Openings which the Contractor proposes to fill from
within his own organization" means employment openings for
which no consideration will be given to persons outside the Con-
tractor's organization (including any affiliates, subsidiaries, and
the parent companies), and includes any openings which the Con-
tractor proposes to fill from regularly established "recall" and
"rehire" lists.
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(4) "Openings which the Contractor proposes to fill from
within his own organization or to fill pursuant to a customary and
traditional employer-union hiring arrangement" means employ-
ment openings for which no consideration will be given to persons
outside of a special hiring arrangement, including openings which
the Contractor propose, to fill from union hiring halls, which is
part of the customary and traditional employment relationship
existing between the Contractor and representatives of his em-
ployees.
(5) "Disabled veteran" means a person entitled to disability
compensation under laws administered by the Veterans Admin-
istration for disability rated at thirty percent (30%) or more, or
a person whose discharge or release from active duty was for a
disability incurred or aggravated in line of duty.
(6) "Veteran of the Vietnam era" means a person who was
discharged or released within the 48 months preceding his applica-
tion for employment covered under this part and who (i) served
on active duty for a period of more than 180 days, any part of
which occurred after August 5, 1964, and was discharged or
released therefrom with other than a dishonorable discharge, or
(ii) was discharged or released from active duty for service-con-
nected disability if any part of such duty was performed after
August 5, 1964.
(g) The Contractor agrees to place this clause (excluding this
paragraph (g)) in any subcontract directly under this contract
provided, such subcontract is for $10,000 or more. (Subcontracts
for personal services are exempted from this requirement.)
(h) Failure of the Contractor to comply with the requirements
of this clause may result :in termination for default of the contract
concerned.
3-1204 COST ACCOUNTING STANDARDS (1976 JUL.)
(a) The clauses in 7-1 D4.83 shall be inserted in all negotiated
contracts exceeding $100,1)00, except when the price is based on
established catalog or market prices of commercial items sold in
substantial quantities to the general public or is set by law or
regulation. In addition to the foregoing exceptions, the clause
shall not be included in the following contracts:
(i) contracts awarded pursuant to Small Business Re-
stricted Advertising (see 1-706.5(b) and 1-706.7(c));
(ii) contracts awarded pursuant to Partial Small Business
Set-Aside (see 1-706.6);
(iii) contracts awarded pursuant to the authority of Section
8(a) of the Small Business Act (15 U.S.C. 637(a) (see
1-705.5)) ;
(iv) contracts awarded pursuant to the Labor Surplus
Area Set-Aside Procedure (1-804);
(v) contracts for which the Cost Accounting Standards
Board has approved a waiver or exemption pursuant to
Paragraph 331.30 of Appendix 0; or
(vi) contracts which are executed and performed in their
entirety outside the United States, its territories and
possessions.
(b) Consistent with (v) above, the Cost Accounting Standards
Board has provided for the exemption of contracts of $500,000
or less under certain circumstances. Section 331.30(b) (8) of
Appendix 0 prescribes the circumstances under which such an
exemption is applicable. In order to effectively administer the
requirements of that Section, the solicitation notice in 7-2003.67(b)
shall be inserted in all solicitations requiring the inclusion of the
solicitation notice in 7-2003.67(a).
7-104.83(a) COST ACCOUNTING STANDARDS (1975 FEB.)
(Modified)
(a) Unless the Cost Accounting Standards Board has prescribed
rules or regulations exempting the Contractor or his contract from
standards, rules, and regulations promulgated pursuant to 50
U.S.C. App. 2168 (Public Law 91-379, August 15, 1970), the
Contractor, in connection with this contract shall:
(1) By submission of a Disclosure Statement, disclose in
writing his cost accounting practices as required by regulations
of the Cost Accounting Standards Board. The required disclosures
must be made prior to contract award unless the Contracting Officer
provides a written notice to the Contractor authorizing post-award
submission in accordance with regulations of the Cost Accounting
Standards Board. The practices disclosed for this contract shall
be the same as the practices currently disclosed and applied on
all other contracts and subcontracts being performed by the Con-
tractor and which contain this Cost Accounting Standards clause.
If the Contractor has notified the Contracting Officer that the
Disclosure Statement contains trade secrets and commercial or
financial information which is privileged and confidential, the
Disclosure Statement will be protected and will not be released
outside the government.
(2) Follow consistently the cost accounting practices disclosed
pursuant to (1) above in accumulating and reporting contract
performance cost data concerning this contract. If any change in
disclosed practices is made for purposes of any contract or sub-
contract subject to Cost Accounting Standards Board requirements,
the change must be applied prospectively to this contract, and
the Disclosure Statement must be amended accordingly. If the
contract price or cost allowance of this contract is affected by
such changes, adjustment shall be made in accordance with sub-
paragraph (a) (4) or (a) (5) below, as appropriate.
(3) Comply with all Cost Accounting Standards in effect
on the date of award of this contract or if the Contractor has
submitted cost or pricing data, on the date of final agreement on
price as shown on the Contractor's signed certificate of current
cost or pricing data. The Contractor shall also comply with any
Cost Accounting Standard which hereafter becomes applicable
to a contract or subcontract of the Contractor. Such compliance
shall be required prospectively from the date of applicability to
such contract or subcontract.
(4) (A) Agree to an equitable adjustment as provided in the
changes clause of this contract if the contract cost is affected by a
change which, pursuant to (3) above, the contractor is required
to make to his established cost accounting practices whether such
practices are covered by a Disclosure Statement or not.
(4) (B) Negotiate with the Contracting Officer to determine
the terms and conditions under which a change to either a dis-
closed cost accounting practice or an established cost accounting
practice, other than a change under (4) (A) above, may be made.
A change to a practice may be proposed by either the government
or the contractor, provided however, that no agreement may be
made under this provision that will increase costs paid by the
United States.
(5) Agree to an adjustment of the contract price or cost
allowance, as appropriate, if he or a subcontractor fails to comply
with an applicable Cost Accounting Standard or to follow any
practice disclosed pursuant to subparagraphs (a)( 1) and (a) (2)
above and such failure results in any increased costs paid by the
United States. Such adjustment shall provide for recovery of the
increased costs to the United States together with interest thereon
computed at the rate determined by the Secretary of the Treasury
pursuant to Public Law 92-41, 85 Stat. 97, or seven percent
(7%) per annum, whichever is less, from the time the payment
by the United States was made to the time the adjustment is
effected.
(b) If the parties fail to agree whether the Contractor or a sub-
contractor has complied with an applicable Cost Accounting
Standard, rule, or regulation of the Cost Accounting Standards
Board and as to any cost adjustment demanded by the United
States, such failure to agree shall be a dispute concerning a question
of fact within the meaning of the disputes clause of this contract.
(c) The Contractor shall permit any authorized representatives
of the head of the agency, of the Cost Accounting Standards
Board, or of the Comptroller General of the United States to
examine and make copies of any documents, papers, or records
relating to compliance with the requirements of this clause,
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provided, such access will not be granted to this contract or to
related records which might tend to reveal sponsor identity if the
association of the sponsor with this contract is classified, without
prior written approval of the Contracting Officer.
(d) The Contractor shall include in all negotiated subcontracts
which he enters into the substance of this clause except paragraph
(b), and shall require such inclusion in all other subcontracts of
any tier, except that this requirement shall apply only to negotiated
subcontracts in excess of $100,000 where the price negotiated is
not based on:
(i) Established catalog or market prices of commercial
items sold in substantial quantities to the general public, or
(ii) Prices set by law or regulation and except that the
requirement shall not apply to negotiated subcontracts other-
wise exempt from the requirement to accept the Cost
Accounting Standards clause by reason of Section 331.30(b)
of Title 4 Code of Federal Regulations (4 CFR 331.30(b) ).
NOTE: (1) Subcontractors shall be required to submit their
Disclosure Statements to the Contractor. However, if a subcon-
tractor has previously submitted his Disclosure Statement to a
Government Administrative Contracting Officer (ACO) he may
satisfy that requirement by certifying to the Contractor the date
of such Statement and the address of the ACO.
(2) In any case where a subcontractor determines that the
Disclosure Statement information is privileged and confidential
and declines to provide it to his Contractor or higher tier sub-
contractor, the Contractor may authorize direct submission of that
subcontractor's Disclosure Statement to the same Government
offices to which the Contractor was required to make submission
of his Disclosure Statemert. Such authorization shall in no way
relieve the Contractor of liability as provided in paragraph (a)(5)
of this clause. In view of the foregoing and since the contract may
be subject to adjustment under this clause by reason of any failure
to comply with rules, regulations, and Standards of the Cost
Accounting Standards Board in connection with covered sub-
contracts, it is expected that the Contractor may wish to include
a clause in each such subcontract requiring the subcontractor to
appropriately indemnify the Contractor. However, the inclusion
of such a clause and the terms thereof are matters for negotiation
and agreement between the Contractor and the subcontractor,
provided that they do not conflict with the duties of the Contractor
tinder its contract with the Government. It is also expected that
any subcontractor subject to such indemnification will generally
require substantially similar indemnification to be submitted by
his subcontractors.
(e) The terms defined in Section 331.20 of Part 331 of Title 4,
Code of Federal Regulations (4 CFR 331.20) shall have the same
meanings herein. As there defined, "negotiated subcontract" means
"any subcontract except a firm fixed-price subcontract made by a
Contractor or subcontractor after receiving offers from at least
two firms not associated with each other or such Contractor or
subcontractor, providing (1) the solicitation to all competing firms,
is identical, (2) price is the only consideration in selecting the
subcontractor from among fie competing firms solicited, and (3)
the lowest offer received in compliance with the solicitation from
among those solicited is accepted."
sixty (60) days (or such other date as may be mutually
agreed to) after award of a contract requiring such change;
(ii) for any change to cost accounting practices proposed
in accordance with paragraph (a) (4) (B) of the clause of
this contract entitled "Cost Accounting Standards" not less
than sixty (60) days (or such other date as may be mutually
agreed to) prior to the effective date of the proposed change;
(iii) for any failure to comply with an applicable Cost
Accounting Standard or to follow a disclosed practice as
contemplated by paragraph (a) (5) of the clause of this
contract entitled "Cost Accounting Standards" within sixty
(60) days (or such other date as may be mutually agreed
to) after the date of agreement of such noncompliance by
the Contractor.
(b) Submit a cost impact proposal in the form and manner
specified by the cognizant Contracting Officer within sixty (60)
days (or such other date as may be mutually agreed to) after
the date of determination of the adequacy and compliance of a
change submitted pursuant to (a) (i ), (ii), or (iii) above.
(c) Agree to appropriate contract and subcontract amend-
ments to reflect adjustments established in accordance with para-
graphs (a) (4) and (a) (5) of the clause of this contract entitled
"Cost Accounting Standards."
(d) Include the substance of this clause in all negotiated
subcontracts containing the clause entitled "Cost Accounting
Standards." In addition, include a provision in these subcontracts
which will require such subcontractors, within thirty (30) days
after receipt of award, to submit the following information to the
Contract Administration Office cognizant of the subcontractor's
facility.
(1) Subcontractor's name and subcontract number.
(2) Dollar amount and date of award.
(3) Name of Contractor making the award.
(4) A statement as to whether the subcontractor has made
or proposes to make any changes to accounting practices
that affect prime contracts or subcontracts containing
the Cost Accounting Standards clause unless such changes
have already been reported. If award of the subcontract
results in making a Cost Accounting Standard (s) effective
for the first time, this shall also be reported.
(e) In the event an adjustment is required to be made to
any subcontract hereunder, notify the Contracting Officer in
writing of such adjustment and agree to an adjustment in the price
or estimated cost and fee of this contract, as appropriate, based
upon the adjustment established under the subcontract. Such notice
shall be given within thirty (30) days after receipt of the proposed
subcontract adjustment, and shall include a proposal for adjust-
ment to such higher tier subcontract or prime contract as appro-
priate.
(f) When the Cost Accounting Standards clause and this
clause are included in subcontracts, the term "Contracting Officer"
shall be suitably altered to identify the purchaser (principal
contractor).
(b) ADMINISTRATION OF COST ACCOUNTING STAND-
ARDS (1975 MAR.)
For the purpose of administering Cost Accounting Standards
requirements under this contract, the Contractor shall:
(a) Submit to the cognizant Contracting Officer a description
of the accounting change and the general dollar magnitude of the
change to reflect the sum of all increases and the sum of all
decreases for all contracts containing the Cost Accounting Standards
clause (7-104.83(a)):
(i) for any change in cost accounting practices required
to comply with a new Cost Accounting Standard in accordance
with paragraphs (a)(3,' and (a) (4) (A) of the clause of
this contract entitled "Cost Accounting Standards" within
7-103.15 RHODESIA AND CERTAIN COMMUNIST AREAS
(1974 NOV.)
(a) Unless he first obtains the written approval of the Con-
tracting Officer, the Contractor shall not acquire for use in the
performance of this contract:
(i) any supplies or services originating from sources within
Rhodesia (except chrome) and the communist areas of North
Korea, North Vietnam, or Cuba;
(ii) any supplies, however processed, which are or were
located in or transported from or through North Korea, North
Vietnam, or Cuba.
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(b) The Contractor agrees to insert the provisions of this clause,
including this paragraph (b), in all subcontracts hereunder.
7-104.41 AUDIT (1975 JUN.) (Modified) (Applies to all contracts,
other than those entered into by formal advertising
which are not expected to exceed $100,000)
(a) General. The Contracting Officer or his representatives shall
have the audit and inspection rights described in the applicable
paragraphs (b), (c) and (d) below.
(b) Examination of Costs. If this is a cost reimbursement type,
incentive, time and materials, labor hour, or price redeterminable
contract, or any combination thereof, the Contractor shall main-
tain, and the Contracting Officer or his representatives shall have
the right to examine books, records, documents, and other evi-
dence 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. Such right of examination shall
include inspection at all reasonable times of the Contractor's
plants, or such parts thereof, as may be engaged in the performance
of this contract.
(c) Cost or Pricing Data. If the Contractor submitted cost or
pricing data in connection with the pricing of this contract or
any change or modification thereto, unless such pricing was 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 Contracting
Officer or his representatives who are employees of the United
States Government shall have the right to examine all books,
records, documents and other data of the Contractor related to
the negotiation, pricing or performance of such contract, change
or modification, for the purpose of evaluating the accuracy, com-
pleteness and currency of the cost or pricing data submitted. Addi-
tionally, in the case of pricing any change or modification exceed-
ing $100,000 to formally advertised contracts, the Audit Repre-
sentative designated by the Contracting Officer or his representa-
tives who are employees of the United States Government shall
have such rights. The right of examination shall extend to all
documents necessary to permit adequate evaluation of the cost
or pricing data submitted, along with the computations and
projections used therein.
(d) Reports. If the Contractor is required to furnish Cost
Information Reports (CIR) or Contract Fund Status Reports
(CFSR), the Contracting Officer or his representatives shall have
the right to examine books, records, documents, and supporting
materials, for the purpose of evaluating (i) the effectiveness of
the Contractor's policies and procedures to produce data com-
patible with the objectives of these reports, and (ii) the data
reported.
(e) Availability. The materials described in (b), (c) and (d)
above shall be made available at the office of the Contractor, at
all reasonable times, for inspection, audit, or reproduction, until
the expiration of three years from the date of final payment
under this contract or such lesser time specified in Appendix M
of the Armed Services Procurement Regulation, and for such
longer period, if any, as is required by applicable statute, or by
other clauses of this contract, or by (1) and (2) below:
(1) If this contract is completely or partially terminated, the
records relating to the work terminated shall be made available
for a period of three years From the date of any resulting final
settlement.
(2) Records which relate to appeals under the "Disputes"
clause of this contract, or litigation or the settlement of claims
arising out of the performance of this contract, shall be made
available until such appeals, litigation, or claims have been
disposed of.
(f) The Contractor shall insert a clause containing all the
provisions of this clause, including this paragraph (f), in all
subcontracts exceeding $10,000 hereunder, except altered as
necessary for proper identification of the contracting parties and
the Contracting Officer under the Government prime contract.
(g) If any of the materials described in (b), (c), or (d) above
shall be classified, upon final settlement of the contract, and upon
request of the contracting officer, all such materials shall be
forwarded to the Contracting Officer for retention for the period
of time prescribed in (e) above.
ARTICLE 44
Telephone Security
(Applicable only if the Schedule of the contract specifies a
Security Classification.)
The Contractor shall bring to the attention of all of its em-
ployees who are granted access to classified information perti-
nent to this contract the fact that telephones are not a secure means
of transmitting classified information. Hostile governments are
known to have a capability of monitoring telephone conversations,
especially those transmitted via microwave (assume all). Your
employees and/or consultants accordingly may not discuss classi-
fied information by telephone either with the Sponsor or others.
This clause should be included in any classified subcontracts
issued under this basic contract.
7-103.29 CLEAN AIR AND WATER (1975 OCT.)
(Applicable only if the contract exceeds $100,000, or the Con-
tracting Officer has determined that orders under an indefinite
quantity contract in any one year will exceed $100,000, or a
facility to be used has been the subject of a conviction under the
Clean Air Act (42 U.S.C. 1857c-8(c)(1)) or the Federal Water
Pollution Control Act (33 U.S.C. 1319(c)) and is listed by EPA,
or the contract is not otherwise exempt.)
(a) The Contractor agrees as follows:
(1) to comply with all the requirements of section 114 of
the Clean Air Act, as amended (42 U.S.C. 1857, et seq., as
amended by Public Law 91-604) and section 308 of the
Federal Water Pollution Control Act (33 U.S.C. 1251, as
amended by Public Law 92-500), respectively, relating to
inspection, monitoring, entry, reports, and information, as
well as other requirements specified in section 114 and section
308 of the Air Act and the Water Act, respectively, and all
regulations and guidelines issued thereunder before the award
of this contract;
(ii) that no portion of the work required by this prime
contract will be performed in a facility listed on the Environ-
mental Protection Agency List of Violating Facilities on the
date this contract was awarded unless and until the EPA
eliminates the name of such facility or facilities from such
listing;
(iii) to use his best efforts to comply with clean air
standards and clean water standards at the facilities in which
the contract is being performed; and
(iv) to insert the substance of the provisions of this clause
in any nonexempt subcontract, including this paragraph (iv).
(b) The terms used in this clause have the following meanings:
(1) The term "Air Act" means the Clean Air Act, as amended
(42 U.S.C. 1857 et seq., as amended by Public Law 91-604).
(2) The term "Water Act" means Federal Water Pollution
Control Act, as amended (33 U.S.C. 1251 et seq., as amended
by Public Law 92-500).
(3) The term "clean air standards" means any enforceable
rules, regulations, guidelines, standards, limitations, orders, con-
trols, prohibitions, or other requirements which are contained in,
issued under, or otherwise adopted pursuant to the Air Act or
Executive Order 11738, an applicable implementation plan as
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described in section 110(d) of the Clean Air Act* (42 U.S.C.
1857c-5 (d) ), an approved implementation procedure or plan under
section 111(c) or section 111(d), respectively, of the Air Act
(42 U.S.C. 1857c-6(c) or (d) ), or an approved implementation
procedure under section 112(d) of the Air Act (42 U.S.C.
1857c-7(d)).
(4) The term "clean water standards" means any enforceable
limitation, control, condition, prohibition, standard or other re-
quirement which is promulgated pursuant to the Water Act or
contained in a permit issued to a discharger by the Environmental
Protection Agency or by a State under an approved program,
as authorized by section 402 of the Water Act (33 U.S.C. 1342),
or by a local government to ensure compliance with pretreatment
regulations as required by section 307 of the Water Act (33 U.S.C.
1317).
(5) The term "compliance" means compliance with clean
air or water standards. Compliance shall also mean compliance
with a schedule or plan ordered or approved by a court of com-
petent jurisdiction, the Environmental Protection Agency or an
air or water pollution control agency in accordance with the
requirement of the Air Act or Water Act and regulations issued
pursuant thereto.
(6) The term "facility" means any building, plant, installation,
structure, mine, vessel or other floating craft, location, or site
of operations, owned, leased, or supervised by a Contractor or sub-
contractor, to be utilized in the performance of a contract or sub-
contract. Where a location or site of operations contains or includes
more than one building, plant, installation, or structure, the entire
location or site shall be deemed to be a facility except where the
Director, Office of Federal Activities, Environmental Protection
Agency, determines that independent facilities are co-located in one
geographical area.
(7) The term "nonexempt contract or subcontract" means a
contract or subcontract of more than $100,000 which is not other-
wise exempted pursuant to the EPA regulations implementing the
Air Act and Water Act (40 CFR 15.5), as further implemented
in ASPR 1-2302.4 or in FPR 1-1.2302-4 (whichever is applicable)
and the procedures of the Department awarding the contract.
7-103.28 EMPLOYMENT OF THE HANDICAPPED (1975
OCT.) (Modified)
(This clause applies to all rionexempt contracts and subcontracts
which exceed $2,500 as follows: (i) Part A applies to contracts
and subcontracts which provide for performance in less than ninety
(90) days, (ii) Parts A and B apply to contracts and subcontracts
which provide for performance in ninety (90) days or more and the
amount of the contract or subcontract is less than $500,000, and
(iii) Parts A, B, and C apply to contracts and subcontracts which
provide for performance in ninety (90) days or more and the
amount of the contract or subcontract is $500,000 or more.)
and take appropriate action consistent with the requirements of
20 CFR 741.29 and (ii) maintain on file for three years, the record
regarding the complaint and the actions taken.
(c) The Contractor agrees that, if a handicapped individual
files a complaint with the Department of Labor that he has not
complied with the requirements of the Act, (i) he will cooperate
with the Department in its investigation of the complaint, and
(ii) he will provide all pertinent information regarding his employ-
ment practices with respect to the handicapped.
(d) The Contractor agrees to comply with the rules and regu-
lations of the Secretary of Labor in 29 CFR Ch. VI, Part 741.
(e) In the event of the Contractor's noncompliance with the
requirements of this clause, the contract may be terminated or
suspended in whole or in part.
(f) This clause shall be included in all subcontracts over $2,500.
(g) The Contractor agrees (i) to establish an affirmative action
program, including appropriate procedures consistent with the
guidelines and the rules of the Secretary of Labor, which will
provide the affirmative action regarding the employment and ad-
vancement of the handicapped required by Public Law 93-112,
(ii) to publish the program in his employee's or personnel hand-
book or otherwise distribute a copy to all personnel, (iii) to review
his program on or before March 31 of each year and to make such
changes as may be appropriate, and (iv) to designate one of his
principal officials to be responsible for the establishment and opera-
tion of the program.
(h) The. Contractor agrees to permit the examination, by ap-
propriate contracting agency officials or the Assistant Secretary
of Labor for Employment Standards (hereinafter referred to as
the "Assistant Secretary") or his designee, of pertinent books,
documents, papers and records concerning his employment and
advancement of the handicapped. Such access will not be granted
to this contract or to related records which might tend to reveal
sponsor identity if the association of the sponsor with this con-
tract is classified, without prior written approval of the Contracting
Officer.
(i) The Contractor agrees to post in conspicuous places, avail-
able to employees and applicants for employment, notices in a
form to be prescribed by the Assistant Secretary, provided by the
Contracting Officer, stating the Contractor's obligation under the
law to take affirmative action to employ and advance in employ-
ment qualified handicapped employees and applicants for employ-
ment and the rights and remedies available.
(j) The Contractor will notify each labor union or representa-
tive or workers with whom he has a collective bargaining agree-
ment or other contract understanding, that the Contractor is bound
by the terms of Section 503 of the Rehabilitation Act, and is com-
mitted to take affirmative action to employ and advance in employ-
ment physically and mentally handicapped individuals.
(a) The Contractor will not discriminate against any employee
or applicant for employment because of physical or mental handi-
cap in regard to any position for which the employee or applicant
for employment is qualified. The Contractor agrees to take
affirmative action to employ, s,dvance in employment and other-
wise treat qualified handicapped individuals without discrimina-
tion based upon their physical or mental handicap in all employ-
ment practices such as the following: employment, upgrading,
demotion or transfer, recruitment or recruitment advertising, layoff
or termination, rates of pay or other forms of compensation, and
selection for training, including apprenticeship.
(b) The Contractor agrees -that, if a handicapped individual
files a complaint with the Contractor that he is not complying with
the requirements of the Act, he will (i) investigate the complaint
(k) The Contractor agrees to submit a copy of his affirmative
action program to the Assistant Secretary within ninety (90) days
after the award to him of a contract or subcontract.
(1) The Contractor agrees to submit a summary report to the
Assistant Secretary by March 31 of each year during performance
of the contract, and by March 31 of the year following completion
of the contract, in the form prescribed by the Assistant Secretary,
covering employment and complaint experience, accommodations
made, and all steps taken to effectuate and carry out the commit-
ments set forth in the affirmative action program.
(m) If the association of the sponsor with this contract is
classified, the reports described in (k) and (1) above shall be
sent to the Contracting Officer instead of to the Assistant Secre-
tary of Labor.
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7-104.4 NOTICE TO THE GOVERNMENT OF LABOR
DISPUTES (1953 SEP.)
(a) Whenever the Contractor has knowledge that any actual
or potential labor dispute is delaying or threatens to delay the
timely performance of this contract, the Contractor shall immedi-
ately give notice thereof, including all relevant information with
respect thereto, to the Contracting Officer.
(b) The Contractor agrees to insert the substance of this clause,
including this paragraph (b), in any subcontract hereunder as to
which a labor dispute may delay the timely performance of this
contract; except that each such subcontract shall provide that in
the event its timely performance is delayed or threatened by delay
by any actual or potential labor dispute, the subcontractor shall
immediately notify his next higher tier subcontractor, or the prime
contractor, as the case may be, of all relevant information with
respect to such dispute.
Authority of Sponsor's Employees: The Contracting Officer is
the only employee of the Sponsor authorized to enter into con-
tracts, amendments, or to direct changes pursuant to the "Changes"
clause or other clauses hereunder permitting equitable adjustment
affecting the contract price. Consequently, the Contracting Officer
is the only employee of the Sponsor who is authorized to commit
government funds pertaining to the execution of this contract.
Unless otherwise specified herein, no other employee of the
Sponsor has the authority to initiate a course of action affecting
the price of this contract. Should any action by an employee of
the Sponsor other than the Contracting Officer imply a commitment
on the part of the government which would affect the price of
this contract, the contractor must notify the Contracting Officer
and receive his approval prior to proceeding. Otherwise, the
Contractor proceeds at his own risk.
ARTICLE 49
7-105.1 ALTERATIONS IN CONTRACT (1949 JUL.)
The following alterations have been made in the provisions of
this contract.
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