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Instructions in § 597.103-1 apply. § 597.203-2 Changes.

Instructions in § 597.103-2 apply.

§ 597.203-5 Inspection of supplies and correction of defects.

Appropriate language to accomplish the requirements in § 597.103-5 shall be included in solicitations and resultant contracts.

§ 597.203-6 Assignment of claims. Instructions in § 597.103-8 apply. § 597.203-12 Disputes.

Instructions in § 597.103-12 apply. § 597.205 Additional clauses.

The clauses set forth in § 7.205 of this title may be used in accordance with instructions therein when it is desired to cover the subject matter thereof in contracts.

[37 FR 25926, Dec. 6, 1972]

§ 597.250 Medical services at Government-owned contractor-operated installations.

The following clauses shall be included in all contracts at Government-owned contractor-operated installations

MEDICAL SERVICES (FEBRUARY 1965)

The Contractor shall provide medical services, as a minimum, of a scope which shall include (1) treatment of on-the-job illnesses and dental conditions requiring emergency attention, (11) preemployment examinations, and (iii) preventive programs related to health.

Subpart C-Clauses for Fixed-Price
Research and Development Contracts
§ 597.302 Required clauses.
Definitions.

§ 597.302-1

Instructions in § 597.103–1 apply.

§ 597.302-4 Inspection.

Appropriate language to accomplish the requirements in § 597.103-5 shall be included in solicitations and resultant contracts.

§ 597.302-5 Assignment of claims. Instructions in § 597.103-8 apply. § 597.302-11 Disputes.

Instructions in § 597.103-12 apply. § 597.304 Additional clauses.

The clauses set forth in § 7.304 of this title may be used in accordance with instructions therein when it is desired to cover the subject matter thereof in contracts.

[37 FR 25926, Dec. 6, 1972]

§ 597.304-1 Changes.

Instructions in § 597.103-2 apply. Subpart D-Clauses for Cost-Reimbursement Type Research and Development Contracts

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Instructions in § 597.103-1 apply.

§ 597.402-5 Inspection and correction of defects.

Appropriate language to accomplish the requirements in § 597.103-5 shall be included in solicitations and resultant contracts.

§ 597.402-6 Assignment of claims. Instructions in § 597.103-8 apply. § 597.402-11 Disputes.

Instructions in § 597.103-12 apply. § 597.404 Additional clauses.

The clauses set forth in § 7.404 of this title may be used in accordance with instructions therein when it is desired to cover the subject matter thereof in contracts.

[37 FR 25926, Dec. 6, 1972] § 597.404-1 Changes.

Instructions in § 597.103-2 apply.

§ 597.450 Medical services at Government-owned contractor-operated installations.

Include the clause in § 597.250 in accordance with instructions therein.

Subpart E-[Reserved]

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§ 597.605-2 Changes.

Instructions in § 597.103-2 apply. § 597.605-17 Disputes.

Instructions in § 597.103-12 apply. § 597.605-31 Assignment of claims. Instructions in § 597.103-8 except for paragraph (a) apply.

§ 597.607 Required clauses for fixedprice architectengineer contracts.1 [Reserved]

§ 597.607-4

§ 597.607-5 Disputes.

Instructions in § 597.103-12 apply. [87 FR 25926, Dec. 6, 1972]

$597.607-6 Assignment of claims.

Instruction in § 597.103-8 except for paragraph (a) apply.

[37 FR 25926, Dec. 6, 1972]

Subpart G-Clauses for Facilities Contracts

597.702 Required clauses for consolidated facilities contracts.

§ 597.702-1 Definitions.

Instructions in § 597.103-1 apply. $597.702-4 Changes.

Instructions in § 597.103-2 apply. 187 FR 25926, Dec. 6, 1972.

§ 597.702-25 Period of this contract.

Requests for authorization to provide for a period of more than 5 years shall be forwarded through the cognizant head of procuring activity to the addressee in § 591.150(b) (6) of this chapter. [35 F.R. 8566, June 3, 1970]

§ 597.702-28 Disputes.

Instructions in § 597.103-12 apply. § 597.702-37 Assignment of claims. Instructions in § 597.103-8 apply. § 597.703 Required clauses for facilities acquisition contracts.

§ 597.703-1 Definitions.

Instructions in § 597.103-1 apply. § 597.703-4 Changes.

Instructions in § 597.103-2 apply. § 597.703-20 Disputes.

Instructions in § 597.103-12 apply. § 597.703-29 Assignment of claims. Instructions in § 597.103-8 apply.

§ 597.704 Required clauses for facilities

use contracts.

§ 597.704-1 Definitions.

Instructions in § 597.103-1 apply. § 597.704-18 Period of this contract. Instructions in § 597.702-25 apply. § 597.704-21 Disputes.

Instructions in § 597.103-12 apply. § 597.704-23 Assignment of claims. Instructions in § 597.103-8 apply. § 597.706 Facilities use contracts with nonprofit educational institutions. § 597.706-3 Definitions.

Instructions in § 597.103-1 apply. § 597.706-16 Period of this contract. Instructions in § 597.702-25 apply.

§ 597.706-18 Disputes.

Instructions in § 597.103-12 apply.

Subpart H-[Reserved]

Subpart -Clauses for Time and Material and Labor Hour Contracts § 597.901 Required clauses. § 597.901-1

Definitions.

Instructions in § 597.103–1 apply.

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Subpart B-General Principles Applicable to the Settlement of FixedPrice Type Contracts Terminated for Convenience and to the Settlement of All Terminated Cost-Reimbursement Type Contracts

§ 598.201 Authority of contracting offi

cers.

(a) Procuring contracting officers shall exercise the authority to terminate a contract for convenience of the Government only after proper authorization and instructions from the activity which requested the contract to be established.

(b) Contracting officers shall not terminate contracts for convenience if the contractor is in unexcusable default and the Government has a legal right to terminate for default, even though the Government's requirements for performance no longer exist. This prohibition shall not preclude a no-cost termination settlement agreement as provided in § 8.6024(c) of this title.

(c) Termination of contracts awarded as a result of a MIPR shall be in accordance with § 5.1112 of this title. § 598.202 Prior clearance of significant contract terminations.

Reports Control Symbol SAOSA-62 has been assigned the reporting requirement in § 8.202 of this title for purchasing offices within the Department of the Army. This report does not apply to overseas contracts.

[36 F.R. 8948, May 15, 1971]

§ 598.212 Review and approval of proposed settlements.

§ 598.212-4 Action by Board.

(a) All actions by a Settlement Review Board shall be taken at duly constituted meetings of the Board. The written opinion of the Board setting forth its approval or disapproval of a proposed settlement shall be signed by each Board member present. The written opinion shall not be a repetition of the contracting officer's memorandum but shall contain all pertinent facts which prompted the Board's approval or disapproval.

(b) A proposed settlement which was reached by mutual agreement, if disapproved by the Board, shall be returned to the contracting officer for further negotiation within the framework of the Board's opinion. Upon conclusion of further negotiation, the new proposed

settlement shall be submitted to the Board for further consideration.

(c) A proposed settlement which resulted from the contracting officer's redetermination, if disapproved by the Board, shall be returned to the contracting officer for redetermination or negotiation and resubmission to the Board.

(d) Except as provided in § 8.212-4 of this title, the contracting officer may not proceed with a proposed settlement until approval of the Settlement Review Board has been obtained.

Subpart C-Additional Principles Applicable to the Settlement of Terminated Fixed-Price Contracts

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§ 598.307-2 Bases for settlement proposals.

Requests for approval of the Secretary of the Army for the use of bases other than inventory or total cost in a termination claim shall be forwarded through the cognizant head of procuring activity to the addressee in § 591.150(b) (6) of this chapter.

Subpart D-[Reserved]

Subpart E-[Reserved]

Subpart F-Termination for Default § 598.602 Termination of fixed-price supply contracts for default.

§ 598.602-3 Procedure for default.

(a) Contracts which involve outstanding guaranteed loans, progress payments, or advance payments, except where the contractor is in bankruptcy, shall be terminated for default only after the procuring activity has coordinated the action with the U.S. Army Materiel Command, the U.S. Continental Army Command, or the Deputy for Materiel Acquisition, Office of the Assistant Secretary of the Army (Installations and Logistics), as applicable. In addition, prior to termination, all such cases except those involving bankruptcy shall be coordinated with the Director of Contract Financing, Office of the Comptroller of the Army [the addressee in § 591.150(b) (5) of this chapter] who shall coordinate when necessary with the contract financing offices of other Military Departments. Cases forwarded shall include the following data

(1) Contract number, item, and dollar value;

(2) Government financing outstanding;

(3) Statement as to probable jeopardy to repayment of loans in event of default;

(4) Alternative actions in lieu of default;

(5) Status of deliveries, i.e. scheduled versus actual;

(6) Production problems, if any, and Government assistance furnished to resolve them;

(7) Statement as to whether the contractor was certified by the Small Business Administration;

(8) Date of report "Contractors in Difficulty Authorized Guaranteed Loans, Progress Payments, or Advance Payments," Reports Control Symbol OSD1477 (see 163.30 of this title);

(9) Other pertinent information to insure clear understanding of the case; and

(10) Recommendation of the head of procuring activity.

(b) Copies of notices of intent to terminate any small business contractor for default shall be furnished the nearest Regional Office of the Small Business Administration [SBA] after coordination with the Small Business and Labor Surplus Advisor serving the purchasing office. The SBA Regional Office will determine whether the contractor has any outstanding loans which were made with SBA's participation or any Certificates of Competency which were issued by SBA. Contracts involving a small business contractor to whom a Certificate of Competency was issued or to whom loans were made with SBA's participation shall not be terminated for default without prior written approval of the Head of Procuring Activity.

(c) When considering a termination for default pursuant to subparagraph (a) (f) of the Default clause (§ 8.707 of this title), contracting officers should come to a decision within a reasonable time and should avoid actions which could be construed as waiving the delivery requirements. In a number of cases before the Armed Services Board of Contract Appeals (ASBCA) where the decision to terminate for default was unreasonably delayed or where inconsistent actions occurred, that Board invoked what is known as the doctrine of "waiver of due date" and converted default terminations into terminations for convenience pursuant to subparagraph (e) of the Default clause. To avoid this, con

tracting officers should seek legal advice at an early point in the decision making process.

[34 FR 9524, June 18, 1969, as amended at 37 FR 7087, Apr. 8, 1972]

§ 598.650 Contract completion by surety.

A surety under a performance bond is not obligated to complete contract work in the event of default by the contractor. However, to minimze its liability under the bond, the surety may assist the contractor, prior to termination of the contractor's right to proceed, by providing financial or other assistance.

[36 F.R. 20683, Oct. 28, 1971]

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