Purchasing Manual - Appendix B - Contract Clauses

206 Pages·2001·0.74 MB·English

Contents
Purchasing Manual
Appendix B
Contract Clauses
Appendix B — Contract Clauses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 353
B.1 General . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 353
B.1.1 Applicability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 353
B.1.2 Numbering of Clauses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 353
B.2 Clause Prescriptions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 353
B.2.1 Clauses Prescribed in this Appendix . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 353
B.2.2 Clauses Prescribed in Chapters 1 through 9 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 356
B.3 Clauses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 357
352 Issue 1, January 31, 1997
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Contents
B.1 Purchasing Manual
Appendix B
Contract Clauses
B.1 General
Applicability
B.1.1
This appendix sets forth general clauses to be included in solicitations and
contracts. Special clauses may be prescribed and set forth in handbooks
or directives implementing or supplementing this manual (see 1.1.1.b).
Applicable clauses must be included in sections A through H of the
solicitation and the contract, following the format prescribed in A.2.1.
Numbering of Clauses
B.1.2
Purchasing Manual clauses are numbered with a prefix indicating the
Purchasing Manual chapter or appendix prescribing their use. Thus, Clause
8-6, Rights in Technical Data, is prescribed in chapter 8, and Clause B-1,
Definitions, is prescribed in this appendix. In parentheses to the right of the
clause title is a reference to the chapter (or appendix), section, and part
where the clause is prescribed. Other clauses are numbered or identified as
set forth in the relevant handbook.
B.2 Clause Prescriptions
Clauses Prescribed in this Appendix
B.2.1
a. Include the following clauses in all contracts not awarded using
commercial procedures (see 4.3):
(1) Clause B-1, Definitions
(2) Clause B-2, Changes; or, for construction, Clause B-37, Changes
(Construction)
(3) Clause B-5, Certificate of Conformance
(4) Clause B-8, Assignment of Claims
(5) Clause B-9, Claims and Disputes
(6) Clause B-10, Pricing of Adjustments
(7) Clause B-14, Examination of Records
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Contract Clauses B.2.1
(8) Clause B-15, Notice of Delay
(9) Clause B-16, Suspensions and Delays
(10) Clause B-19, Excusable Delays
(11) Clause B-20, Invoices
(12) Clause B-21, Change-Order Accounting
(13) Clause B-22, Interest
(14) Clause B-25, Advertising of Contract Awards
(15) Clause B-29, Order of Precedence
(16) Clause B-30, Permits and Responsibilities
b. In addition to the clauses in paragraph a above, include the following
clauses in all fixed-price contracts not awarded using commercial
procedures (see 4.3):
(1) Clause B-11, Termination for Convenience or for mail highway
transportation Clause B-71, Termination for Convenience
(Transportation) or B-72, Termination for Convenience —
Emergency Contracts
(2) Clause B-13, Termination for Default
c. In addition to the clauses in paragraphs a and b above, include the
following clauses in all fixed-price supply contracts not awarded using
commercial procedures (see 4.3):
(1) Clause B-4, Variation in Quantity
(2) Clause B-7, Responsibility for Supplies
d. In addition to the clauses in paragraph a above, include the following
clauses in all non-fixed-priced contracts:
(1) Clause B-12, Termination for Convenience or Default
(2) Clause B-17, Disallowance of Costs
(3) Clause B-18, Subcontracts
e. Include the following clauses in contracts when applicable, following
guidance in the relevant handbook:
(1) Clause B-23, Guaranteed Shipping Weight
(2) Clause B-24, Frequency Authorization
(3) Clause B-26, Protection of Postal Service Buildings, Equipment,
and Vegetation
(4) Clause B-27, Performance at Occupied Postal Premises
(5) Clause B-28, Safety and Health Standards
f. Include Clause B-3, Contract Type, in all contracts awarded without
the issuance of a written solicitation not using commercial procedures
(see 4.3).
g. Include Clause B-30, Permits and Responsibilities (Services), in all
service contracts performed on Postal Service premises.
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B.2.1 Purchasing Manual
h. Include the following clauses in all construction contracts other than
Repair and Alteration or Indefinite-Quantity Construction Contracts:
(1) Clause B-32, Differing Site Conditions
(2) Clause B-33, Inspection and Acceptance (Construction)
(3) Clause B-34, Notice to Proceed and Commencement,
Prosecution and Completion of Work
(4) Clause B-35, Specifications and Drawings(5)
(6) Clause B-36, Postal Service Partial Occupancy
(7) Clause B-37, Changes (Construction)
(8) Clause B-38, Accident Prevention
(9) Clause B-39, Indemnification
(10) Clause B-40, Construction Cost Breakdown
(11) Clause B-41, Conditions Affecting the Work
(12) Clause B-42, Performance of Work by Supplier
(13) Clause B-43, Superintendence by Supplier
(14) Clause B-44, Use of Premises
(15) Clause B-45, Other Contracts
(16) Clause B-46, Subcontracts (Construction)
(17) Clause B-47, Permits and Responsibilities
(18) Clause B-48, Payment (Construction)
(19) Clause B-49, Buildings Codes, Fees and Charges
(20) Clause B-50, Protection of Existing Vegetation, Structures,
Utilities, and Improvements
(21) Clause B-51, Heat
(22) Clause B-52, Debris and Clean Up
(23) Clause B-53, Survey Monuments and Benchmarks
(24) Clause B-54, (Reserved)
(25) Clause B-55, Standard References
(26) Clause B-56, Shop Drawings, Coordination Drawings, and
Schedules
(27) Clause B-57, Record “As Built” Drawings
(28) Clause B-58, Spare-Parts Data
(29) Clause B-59, Construction Progress Chart
(30) Clause B-60, Reserved
(31) Clause B-61, Warranty (Construction)
(32) Clause B-62, Samples
(33) Clause B-63, Materials and Workmanship
i. The Clauses in paragraph i may be used in Repair and Alteration and
Indefinite-Quantity Construction Contracts, as applicable.
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Contract Clauses B.2.2
j. Include the following clauses in all mail transportation highway
contracts:
(1) Clause B-64, Accountability of the Supplier (Highway)
(2) Clause B-65, Adjustments to Compensation
(3) Clause B-66, Reserved
(4) Clause B-67, Changes (Transportation)
(5) Clause B-68, Changes in Corporate Ownership or Corporate
Officers
(6) Clause B-69, Events of Default
(7) Clause B-70, Release of Supplier
(8) Clause B-71, Termination for Convenience (Transportation)
(9) Clause B-72, Termination for Convenience — Emergency
Contracts
(10) Clause B-73, Trailer Damage
(11) Clause B-74, Payment (Highway)
k. Include the following clauses in all mail transportation contracts other
than highway:
(1) Clause B-75, Accountability of the Supplier (Non-Highway)
(2) Clause B-76, Excusable Delays (Mail Transportation
Non-Highway)
(3) Clause B-77, Protection of the Mail
l. Include the following clauses in all mail transportation contracts as
applicable:
(1) Clause B-78, Renewal
(2) Clause B-79, Forfeiture of Compensation
(3) Clause B-80, Laws and Regulations Applicable
(4) Clause B-81, Information or Access by Third Parties
(5) Clause B-82, Access by Officials
m. The following clause must be included in all air taxi contracts that
provide for economic price adjustments:
(1) Clause B-83, Payment (Air Taxi)
Clauses Prescribed in Chapters 1 through 9
B.2.2
Instructions for clauses prescribed in chapters 1 through 9 are found by the
parenthetical reference to the right of each clause title.
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B.3 Purchasing Manual
B.3 Clauses
No. Title Page
B-1 Definitions (January 1997) 362
B-2 Changes (January 1997) 363
B-3 Contract Type (January 1997) 363
B-4 Variation in Quantity (January 1997) 363
B-5 Certificate of Conformance (January 2000) 364
B-6 (Reserved) 364
B-7 Responsibility for Supplies (January 1997) 364
B-8 Assignment of Claims (January 1997) 365
B-9 Claims and Disputes (January 1997) 365
B-10 Pricing of Adjustments (January 1997) 367
B-11 Termination for Convenience (January 1997) 367
B-12 Termination for Convenience or Default (January 1997) 369
B-13 Termination for Default (January 1997) 373
B-14 Examination of Records (January 1997) 374
B-15 Notice of Delay (January 1997) 375
B-16 Suspensions and Delays (January 1997) 375
B-17 Disallowance of Costs (January 1997) 375
B-18 Subcontracts (January 1997) 376
B-19 Excusable Delays (January 1997) 377
B-20 Invoices (January 1997) 378
B-21 Change-Order Accounting (January 1997) 378
B-22 Interest (January 1997) 379
B-23 Guaranteed Shipping Weight (January 1997) 379
B-24 Frequency Authorization (January 1997) 379
B-25 Advertising of Contract Awards (January 1997) 380
B-26 Protection of Postal Service Buildings, Equipment, and 380
Vegetation (January 1997)
B-27 Performance at Occupied Postal Premises (January 1997) 380
B-28 Safety and Health Standards (January 1997) 380
B-29 Order of Precedence (January 1997) 381
B-30 Permits and Responsibilities (January 1997) 381
B-31 (Reserved) 382
B-32 Differing Site Conditions (January 1997) 382
B-33 Inspection and Acceptance (Construction) (January 1997) 382
B-34 Notice to Proceed and Commencement, Prosecution and 383
Completion of Work (January 1997)
B-35 Specifications and Drawings (January 1997) 383
B-36 Postal Service Partial Occupancy (January 1997) 384
B-37 Changes (Construction) (January 1997) 384
B-38 Accident Prevention (January 1997) 385
B-39 Indemnification (January 1997) 386
B-40 Construction Cost Breakdown (January 1997) 386
B-41 Conditions Affecting the Work (January 1997) 386
B-42 Performance of Work by Supplier (January 1997) 386
B-43 Superintendence by Supplier (January 1997) 387
B-44 Use of Premises (January 1997) 387
B-45 Other Contracts (January 1997) 387
B-46 Subcontracts (Construction) (January 1997) 387
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Contract Clauses B.3
B-47 Permits and Responsibilities (Construction) (January 1997) 388
B-48 Payment (Construction) (January 1997) 388
B-49 Building Codes, Fees, and Charges (January 1997) 389
B-50 Protection of Existing Vegetation, Structures, Utilities, and 389
Improvements (January 1997)
B-51 Heat (January 1997) 390
B-52 Debris and Cleanup (January 1997) 390
B-53 Survey Monuments and Bench Marks (January 1997) 390
B-54 (Reserved) 391
B-55 Standard References (January 1997) 391
B-56 Shop Drawings, Coordination Drawings, and Schedules (January 392
1997)
B-57 Record “As Built” Drawings (January 1997) 393
B-58 Spare-Parts Data (January 1997) 393
B-59 Construction Progress Chart (January 1997) 394
B-60 (Reserved) 394
B-61 Warranty (Construction) (January 1997) 394
B-62 Samples (January 1997) 395
B-63 Materials and Workmanship (January 1997) 396
B-64 Accountability of the Supplier (Highway) (January 1997) 397
B-65 Adjustments to Compensation (January 1997) 398
B-66 (Reserved) 398
B-67 Changes (Transportation) (January 1997) 398
B-68 Changes in Corporate Ownership or Officers (January 1997) 400
B-69 Events of Default (January 1997) 401
B-70 Release of Supplier (January 1997) 402
B-71 Termination for Convenience (Transportation) (January 1997) 402
B-72 Termination for Convenience — Emergency Contracts (January 402
1997)
B-73 Trailer Damage (January 1997) 402
B-74 Payment (Highway) (January 1997) 403
B-75 Accountability of the Supplier (Non-Highway) (January 1997) 404
B-76 Excusable Delays (Mail Transportation Non-Highway) (January 405
1997)
B-77 Protection of the Mail (January 1997) 405
B-78 Renewal (January 1997) 405
B-79 Forfeiture of Compensation (January 1997) 406
B-80 Laws and Regulations Applicable (January 1997) 406
B-81 Information or Access by Third Parties (January 1997) 406
B-82 Access by Officials (January 1997) 406
B-83 Payment (Air Taxi) (January 1997) 406
1-1 Privacy Protection (November 2001) 407
1-2 Advance Payments (January 1997) 409
1-3 Progress Payments (January 1997) 414
1-4 (Reserved) 417
1-5 Gratuities or Gifts (January 1997) 417
1-6 Contingent Fees (January 1997) 417
1-7 (Reserved) 418
1-8 Organizational Conflict of Interest (January 1997) 418
1-9 Preference for Domestic Supplies (April 2000) 419
1-10 Preference for Domestic Construction Materials (January 1997) 420
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B.3 Purchasing Manual
1-11 Prohibition Against Contracting with Former Officers or PCES 420
Executives (January 1997)
1-12 Year 2000 Warranty — Commercial Items (May 1997) 421
1-13 Year 2000 Warranty — Noncommercial Items (May 1997) 421
1-14 Use of Former Postal Service Employees (October 2001) 421
2-1 Inspection and Acceptance — Supplies (June 1999) 422
2-2 Quality Assurance I (January 1997) 422
2-3 Quality Assurance II (January 1997) 423
2-4 First Article Approval — Supplier Testing (January 1997) 423
2-5 First Article Approval — Postal Service Testing (January 1997) 424
2-6 Delayed Acceptance (January 1997) 425
2-7 Incorporation of Warranty (January 1997) 426
2-8 Warranty (January 1997) 426
2-9 Definition of Delivery Terms and Supplier’s Responsibilities 426
(January 1997)
2-10 Liquidated Damages (January 1997) 430
2-11 Postal Service Property — Fixed-Price (January 1997) 430
2-12 Postal Service Property — Short Form (January 1997) 434
2-13 Postal Service Property — Non-Fixed-Price (January 1997) 434
2-14 Postal Service Property Furnished “As Is” (January 1997) 441
2-15 Special Tooling (January 1997) 442
2-16 Special Test Equipment (January 1997) 445
2-17 Option for Increased Quantity (January 1997) 446
2-18 Option Item (January 1997) 446
2-19 Option to Extend (Services Contract) (January 1997) 446
2-20 Option to Renew (with Preliminary Notice) (January 1997) 447
2-21 Component Parts (January 1997) 447
2-22 Value Engineering Incentive (January 1997) 447
2-23 Reimbursement — Postal Service Testing (January 1996) 450
2-24 Inspection and Acceptance — Non-fixed Price (January 1997) 451
2-25 Unpriced Options (January 1997) 451
2-26 Payment — Fixed Price (January 1997) 452
2-27 Incentive Price Revision (January 1997) 452
2-28 Economic Price Adjustment — Labor and Materials (January 456
1997)
2-29 Economic Price Adjustment (Index Method) (January 1997) 458
2-30 Allowable Cost and Payment (January 1997) 458
2-31 Limitation of Cost (January 1997) 461
2-32 Limitation of Funds (January 1997) 462
2-33 Cost Contract — No Fee (January 1997) 464
2-34 Cost-Sharing Contract — No Fee (January 1997) 464
2-35 Incentive Fee (January 1997) 464
2-36 Fixed Fee (January 1997) 466
2-37 Award Fee (January 1997) 466
2-38 Payment (Time-and-Materials and Labor-Hour Contracts) 467
(January 1997)
2-39 Ordering (November 2000) 469
2-40 Delivery-Order Limitations (January 1997) 469
2-41 Definite Quantity (January 1997) 470
2-42 Indefinite Quantity (January 1997) 470
2-43 Requirements (January 1997) 471
2-44 Contract Definitization (January 1997) 472
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Contents
Contract Clauses B.3
2-45 Execution and Commencement of Work (January 1997) 473
2-46 Limitation of Postal Service Liability (January 1997) 473
2-47 Payment of Allowable Costs Before Definitization (January 1997) 473
2-48 Inspection and Acceptance — Services (June 1999) 474
2-49 Quality Assurance — Services (June 1999) 475
3-1 Small, Minority, and Women-owned Business Subcontracting 476
Requirements (February 1999)
3-2 Participation of Small, Minority, and Woman-owned Businesses 477
(February 1999)
4-1 (Reserved) 478
4-2 Contract Terms and Conditions — Commercial Items (January 478
1997)
4-3 Contract Terms and Conditions Required to Implement Statutes 481
or Executive Orders — Commercial Items (December 1999)
4-4 Nondisclosure (Professional Services) (January 1997) 482
4-5 Inspection of Professional Service (January 1997) 482
4-6 Invoices (Professional Services) (January 1997) 483
4-7 Records Ownership (January 1997) 483
4-8 Key Personnel (January 1997) 483
4-9 Inspection and Acceptance — Systems (January 1997) 483
4-10 Liquidated Damages — Industrial Supply or Service Items Not 486
Ready for Use (January 1997)
4-11 Use of Hardware or Software Monitors (January 1997) 486
4-12 Site Preparation (January 1997) 487
4-13 Software License Warranty and Indemnification (January 1997) 487
4-14 Software Development Warranty (January 1997) 488
4-15 Warranty Exclusion and Limitation of Damages (January 1997) 488
4-16 Substitution of Information Technology (January 1997) 489
4-17 Technology Enhancement (January 1997) 489
4-18 Information Technology Accessibility Standards (June 2001) 490
5-1 Price Reduction for Defective Cost or Pricing Data (January 491
1997)
5-2 Subcontractor Cost or Pricing Data (January 1997) 491
5-3 Predetermined Indirect Cost Rates (January 1997) 491
6-1 Bankruptcy (January 1997) 492
6-2 Contracting Officer’s Representative (January 1997) 492
7-1 Patent Infringement Bond Requirements (January 1997) 492
7-2 Additional Bond Security (January 1997) 493
7-3 Deposit of Assets Instead of Surety Bonds (January 1997) 493
7-4 Insurance (January 1997) 493
7-5 Errors and Omissions (January 1997) 494
7-6 Federal, State, and Local Taxes (January 1997) 494
7-7 Federal, State, and Local Taxes (Short Form) (January 1997) 495
7-8 Federal, State, and Local Taxes (Noncompetitive Contract) 496
(January 1997)
7-9 State and Local Taxes (Indefinite Delivery Equipment Rental) 497
(January 1997)
8-1 Patent Rights (January 1997) 497
8-2 Authorization and Consent (January 1997) 503
8-3 Notice and Assistance Regarding Patent and Copyright 503
Infringement (January 1997)
8-4 Patent Indemnity (January 1997) 504
8-5 Waiver of Indemnity (January 1997) 504
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B.3 Purchasing Manual
8-6 Rights in Technical Data (January 1997) 504
8-7 Withholding Payment (Technical Data and Computer Software) 508
(January 1997)
8-8 Additional Data Requirements (January 1997) 509
8-9 Rights in Computer Software (January 1997) 509
8-10 Rights in Data — Special Works (January 1997) 514
8-11 Rights in Data — Existing Works (January 1997) 515
8-12 Refund of Royalties (January 1997) 515
8-13 Intellectual Property Rights (January 1997) 515
8-14 Acquisition of Additional Rights in Data (January 1997) 516
8-15 Patent Rights — Supplier Retention (January 1997) 517
8-16 Postal Service Title in Technical Data and Computer Software 525
(January 1997)
8-17 Delivery of Limited Rights and Restricted Computer Software 531
(January 1997)
8-18 Manufacture of Repair Parts (January 1997) 532
9-1 Convict Labor (January 1997) 532
9-2 Contract Work Hours and Safety Standards Act — Overtime 532
Compensation (January 1997)
9-3 Davis-Bacon Act (January 1997) 533
9-4 Compliance by States with Labor Standards (January 1997) 538
9-5 Contract Work Hours and Safety Standards Act — Safety 539
Standards (January 1997)
9-6 Walsh-Healey Public Contracts Act (January 1997) 539
9-7 Equal Opportunity (January 1997) 539
9-8 Affirmative Action Compliance Requirements for Construction 541
(January 1997)
9-9 Equal Opportunity Preaward Compliance of Subcontracts 546
(January 1997)
9-10 Service Contract Act (January 1997) 546
9-11 Service Contract Act — Short Form (January 1997) 554
9-12 Fair Labor Standards Act and Service Contract Act — Price 554
Adjustment (January 1997)
9-13 Affirmative Action for Handicapped Workers (January 1997) 555
9-14 Affirmative Action for Disabled Veterans and Veterans of the 556
Vietnam Era (January 1997)
Clause B-1 Definitions (January 1997) (B.2.1)
As used in this contract, the following terms have the following meanings:
a. Contracting officer. The person executing this contract on behalf of the
Postal Service, and any other officer or employee who is a properly
designated contracting officer; the term includes, except as otherwise
provided in the contract, the authorized representative of a contracting
officer acting within the limits of the authority conferred upon that
person.
b. Subcontracts. Except as otherwise provided in the contract, the term
includes purchase orders under this contract.
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