EB-GT, Revision OCT 1996 - page two
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64.    FAR 52.215-1, EXAMINATION OF RECORDS BY COMPTROLLER  GENERAL (JUL 1995) (EB-MODIFIED)
    (MANDATORY)
    (Applies if this Purchase Order exceeds $100,000.)
    A.    This clause applies if this Purchase Order exceeds $100,000.
    B.    The Comptroller General of the United States or a duly authorized representative from the General Accounting Office shall, until 3 years after final payment under this Purchase Order or for any shorter period specified in Federal Acquisition Regulation (FAR) Subpart 4.7, Contractor Records Retention, have access to and the right to examine any of the Seller's directly pertinent books, documents, papers, or other records involving transactions related to this Purchase Order.
    C.    The Seller agrees to include in lower-tier subcontracts under this Purchase Order a clause to the effect that the Comptroller General or a duly authorized representative from the General Accounting Office shall, until 3 years after final payment under the subcontract or for any shorter period specified in FAR Subpart 4.7, have access to and the right to examine any of the subcontractor's directly  pertinent books, documents, papers, or other records involving transactions related to the subcontract.  "Subcontract," as used in this clause, excludes (1) Purchase Orders not exceeding the FAR Part 13 Small Purchase Limitation and (2) subcontracts or Purchase Orders for public utility services at rates established to apply uniformly to the public, plus any applicable reasonable connection charge.
    D.    The periods of access and examination in paragraphs B. and C. above for records relating to (1) appeals under the Buyer's Prime Contract "Disputes" clause, (2) litigation or settlement of claims arising from the performance of this Purchase Order, or (3) costs and expenses of this contract to which the Comptroller General or a duly authorized representative from the General Accounting Office has taken exception shall continue until such appeals, litigation, claims, or exceptions are disposed of.

65.    FAR 52.215-2, AUDIT - NEGOTIATION
    (JUL 1995) (MANDATORY)
    (Applies if this order exceeds the simplified acquisition threshold in FAR Part 13 ($100,000 as of FAC 90-29 OF 7/3/95.))
    Incorporated into this order by reference.

66.    DFARS 252.215-7000, PRICING ADJUSTMENTS (DEC 1991)     
    The term "pricing adjustment," as used in paragraph (a) of the clauses entitled "Price Reduction for Defective Cost or Pricing Data - Modifications," "Subcontractor Cost or Pricing Data," and "Subcontractor Cost or Pricing Data - Modifications," means the aggregate increases and/or decreases in cost plus applicable profits.

67.    FAR 52.215-22, PRICE REDUCTION FOR DEFECTIVE COST OR     PRICING DATA (JAN 1991)
    (EB-MODIFIED)
    (Applies if this order exceeds the threshold for submission of cost or pricing data at FAR 15.804-2(a)(1) unless an exception from submission of certified cost or pricing data at FAR 15.804-1 applies.)
    A.    If any price, including profit or fee, negotiated in connection with this Purchase Order, or any cost reimbursable under this Purchase Order, was increased by an significant amount because (1) Seller or a subcontractor furnished cost or pricing data that were not complete, accurate, and current as certified in its Certificate of Current or Cost or Pricing Data, (2) a subcontractor or prospective subcontractor furnished Seller cost or pricing data that were not complete, accurate, and current as certified in the Seller's Certificate of Current Cost or Pricing Data, or (3) any of these parties furnished data of any description that were not accurate, the price or cost should be reduced accordingly and the Purchase Order shall be modified to reflect the reduction.
    B.    Any reduction in the Purchase Order price under paragraph A., above due to defective data from a prospective subcontractor that was not subsequently awarded the subcontract shall be limited to the amount, plus applicable overhead and profit markup, by which (1) the actual subcontract or (2) the actual cost to Seller, if there was no subcontract, was less than the prospective subcontract cost estimate submitted by Seller; provided, that the actual subcontract price was not itself affected by defective cost or pricing data.
    C.    (1)  If the Buyer determines under paragraph A. of this clause that a price or cost reduction should be made, the Seller agrees not to raise the following matters as a defense:
            (a)    The Seller or subcontractor was a sole source supplier or otherwise was in a superior bargaining position and thus the price of the Purchase Order would not have been modified even if accurate, complete, and current cost or pricing data had been submitted.
            (b)    The Buyer should have known that the cost or pricing data in issue were defective even though the Seller or subcontractor took no affirmative action to bring the character of the data to the attention of the Buyer.
            (c)    The Purchase Order was based on an agreement about the total cost of the Purchase Order and there was no agreement about the cost of each item procured under the Purchase Order.
            (d)    The Seller or subcontractor did not submit a Certificate of Current Cost or Pricing Data.
        (2) (a) Except as prohibited by subdivision C.(2)(b) of this clause, an offset in an amount determined appropriate by the Buyer based upon the facts shall be allowed against the amount of a Purchase Order price reduction if:
            (i)     the Seller certifies to the Buyer that, to the best of the Seller's knowledge and belief, the Seller is entitled to the offset in the amount requested; and
            (ii)        the Seller proves that the cost or pricing data were available before the date of agreement on the price of the Purchase Order (or price of the modification) and that the data were not submitted before such data.
        (b)  An offset shall not be allowed
                    if:
            (i)  the understated data was known by the Seller to be understated when the Certificate of Current cost or Pricing Data was signed; or
            (ii)  the Buyer proves that the facts demonstrate that the Purchase Order  price would not have increased in the amount to be offset even if the available data had been submitted before the date of agreement on price.
    D.    Seller shall provide Buyer current, complete and accurate cost and pricing data and shall certify the same in accordance with applicable statute, regulation and requirements of the Buyer, and the Seller shall indemnify and hold the Buyer harmless from all loss, damage expense, and cost caused or arising out of Seller's failure or alleged failure to comply herewith.

68.    FAR 52.215-23, PRICE REDUCTION FOR DEFECTIVE COST OR     PRICING DATA - MODIFICATIONS (DEC 1994)
    (EB-MODIFIED)
    A.    This clause shall become operative only for any modifications to this Purchase Order involving a pricing adjustment expected to exceed the threshold for submission of cost or pricing data at FAR 15.804-2(a)(1), except that this clause does not apply to any modification for which the price is:
        (1) based on adequate price competition;
        (2)  based on established catalog or market prices of commercial items sold in substantial quantities to the general public; or
        (3)  set by law or regulation.
    B.    If any price, including profit or fee, negotiated in connection with any modification under this clause, or any cost reimbursable under this contract, was increased by a significant amount because (1) Seller or a subcontractor furnished cost or pricing data that were not complete, accurate, and current as certified in its Certificate of Current or Cost or Pricing Data, (2) a subcontractor or prospective subcontractor furnished Seller cost or pricing data that were not complete, accurate, and current as certified in the Contractor's Certificate of Current Cost or Pricing Data, or (3) any of these parties furnished data of any description that were not accurate, the price or cost shall be reduced accordingly and the Purchase Order shall be modified to reflect the reduction.  This right to a price reduction is limited to that resulting from defects in data relating to modifications for which this clause becomes operative under paragraph A., above.
    C.    Any reduction in the Purchase Order price under paragraph B. above, due to defective data from a prospective subcontractor that was not subsequently awarded the subcontract shall be limited to the amount, plus applicable overhead and profit markup, by which (1) the actual subcontract or (2) the actual cost to Seller, if there was no subcontract, was less than the prospective subcontract cost estimate submitted by Seller; provided, that the actual subcontract price was not itself affected by defective cost or pricing data.
    D.    (1)  If the Buyer determines under paragraph B. of this clause that a price or cost reduction should be made, the Seller agrees not to raise the following matters as a defense:
            (a)    The Seller or subcontractor was a sole source supplier or otherwise was in a superior bargaining position and thus the price of the Purchase Order would not have been modified even if accurate, complete, and current cost or pricing data had been submitted.
            (b)    The Buyer should have known that the cost or pricing data in issue were defective even though the Seller or subcontractor took no affirmative action bring the character of the data to the attention of the Buyer.
            (c)    The Purchase Order was based on an agreement about the total cost of the Purchase Order and there was no agreement about the cost of each item procured under the Purchase Order.
            (d)    The Seller or subcontractor did not submit a Certificate of Current Cost or Pricing Data.
        (2)    (a)    Except as prohibited by subdivision D.(2)(b) of this clause, an offset in an amount determined appropriate by the Buyer based upon the facts shall be allowed against the amount of a Purchase Order price reduction if:
                (i)  the Seller certifies to the Buyer that, to the best of the Seller's knowledge and belief, the Seller is entitled to the offset in the amount requested; and
                (ii)  the Seller proves that the cost or pricing data were available before the date of agreement on the price of the Purchase Order (or price of the modification) and that the data were not submitted before such date.
           (b)  An offset shall not be allowed
                    if:
                (i)  the understated data was known by the Seller to be understated when the Certificate of Current cost or Pricing Data was signed; or
                (ii)  the Buyer proves that the facts demonstrate that the Purchase Order  price would not have increased in the amount to be offset even if the available data had been submitted before the date of agreement on price.
    E.    Seller shall provide Buyer current, complete and accurate cost and pricing data and shall certify the same in accordance with applicable statute, regulation and requirements of the Buyer, and the Seller shall indemnify and hold the Buyer harmless from all loss, damage expense, and cost caused or arising out of Seller's failure or alleged failure to comply herewith.

69.    FAR 52.215-24, SUBCONTRACTOR COST OR PRICING DATA
    (DEC 1994) (EB-MODIFIED) (MANDATORY)
    A.    Before awarding any subcontract expected to exceed the threshold for submission of Cost or Pricing Data at FAR 15.804-2(a)(1) when entered into, or before pricing any subcontract modification involving a pricing adjustment expected to exceed  the threshold for submission of Cost or Pricing Data at FAR 15.804-2(a)(1), Seller shall require the subcontractor to submit cost or pricing data (actually or by specific identification in writing), unless the price is:
        (1)  based on adequate price competition;
        (2)  based on established catalog or market prices of commercial items sold in substantial quantities to the general public; or
        (3)  set by law or regulation.
    B.    Seller shall require the subcontractor to certify in substantially the form prescribed in Subsection 15.804-4 of the Federal Acquisition Regulation (FAR) substituting Buyer's name for "Contacting Officer" that, to the best of its knowledge and belief, the data submitted under paragraph A. above were accurate, complete, and current as of the date of agreement on the negotiated price of the subcontract or subcontract modification.
    C.    In each subcontract that exceeds the threshold for submission of Cost or Pricing Data at FAR 15.804-2(a)(1) where entered into, Seller shall insert either:
        (1)  the substance of this clause, including this paragraph C., if paragraph A. above requires submission of cost or pricing data for the subcontract; or
        (2)  the substance of the clause of FAR 52.215-25, "Subcontractor Cost or Pricing Data - Modifications."

70.    FAR 52.215-25, SUBCONTRACTOR COST OR PRICING DATA -     MODIFICATIONS (OCT  1995)
    (EB MODIFIED) (MANDATORY)
    A.    The requirements of paragraphs B. and C. of this clause shall (1) become operative only for any modification to this Purchase Order involving a pricing adjustment expected to exceed the threshold for submission of Cost or Pricing Data at FAR 15.804-2(a)(1) and (2) be limited to such modifications.
    B.    Before awarding any subcontract expected to exceed the threshold for submission of Cost or Pricing Data at FAR 15.804-2(a)(1), on the date of agreement on price or the date of award, whichever is later; or before pricing any subcontract modification involving a pricing adjustment expected to exceed the threshold for submission of cost or pricing data at FAR 15.804-2(a)(1), the Seller shall require the subcontractor to submit cost or pricing data (actually or by specific identification in writing), unless an exception under FAR 15.804-1 applies.
    C.    The Seller shall require the subcontractor to certify in substantially the form prescribed in FAR 15.804-4  that, to the best of its knowledge and belief, the data submitted under paragraph B. above were accurate, complete, and current as of the date of agreement on the negotiated price of the subcontract or subcontract modification.
    D.    The  Seller shall insert the substance of this clause, including this paragraph D., in each subcontract that exceeds the threshold for submission of Cost or Pricing Data at FAR 15.804-2(a)(1) on the date of agreement on price or the date of award, whichever is later.

71.    FAR 52.215-26 INTEGRITY OF UNIT PRICES (MANDATORY)
    (Applies if items of supplies are being furnished.)
    Incorporated by reference into this order, less paragraph (c).

72.    FAR 52.215-30, FACILITIES CAPITAL COST OF MONEY (SEP 1987)
    (Applies if Seller proposed facilities capital cost of money in its offer, otherwise, the clause entitled "Waiver of Facilities Capital Cost of Money" applies.)
    A.    Facilities capital cost of money will be an allowable cost under the contemplated Purchase Order, if the criteria for allowability in subparagraph 31.205-10(a)(2) of the Federal Acquisition Regulation are met.  One of the allowability criteria requires the prospective Seller to propose facilities capital cost of money in its offer.
    B.    If the prospective Seller does not propose this cost, the resulting Purchase Order will include the clause "Waiver" of Facilities Capital Cost of Money."

73.    FAR 52.215-31, WAIVER OF FACILITIES CAPITAL COST OF     MONEY (SEP 1987)
    (Applies if Seller did not propose facilities capital cost of money in its offer.)
    The Seller did not include facilities capital cost of money as a proposed cost of this Purchase Order.  Therefore, it is an unallowable cost under this Purchase Order.

74.    FAR 52.230-2, COST ACCOUNTING STANDARDS (AUG 1992)     (MANDATORY)    
    1.    If the Buyer's Prime Contract under which this Purchase Order is issued invokes an earlier revision of the Cost Accounting Standards clause than AUG 1992, then (a) applies; if it invokes AUG 1992 or later revision, then (b) applies:
        (a)    If this is a negotiated order (as defined in FAR 52.230-3, (SEP 1987) in excess of $100,000 , unless otherwise excepted or exempted pursuant to FAR 30.301(b) (effective as of SEP 1987), Cost Accounting Standards as required by the current revision of FAR 52.230-2 (Cost Accounting Standards) are applicable and hereby incorporated by reference as if set forth in full except that paragraph (b) is deleted and "United States" in paragraph (a)(4)(ii) means "Buyer or United States."
        (b)    If this is a negotiated order in excess of $500,000, unless otherwise excepted or exempted under 48 CFR, Subparts 9903.201-1 and 9903.201-2, Cost Accounting Standards as required by the current revision of FAR 52.230-2 (Cost Accounting Standards) are applicable and hereby incorporated by reference as if set forth in full except that paragraph (b) is deleted and "United States" in paragraph (a)(4)(ii) means "Buyer or United States."
    2.    Seller shall communicate and otherwise deal directly with the Government Contracting Officer to the extent practicable and permissible as to all matters relating to Cost Accounting Standards.  Seller shall provide Buyer with copies of all communications between Seller and the Government Contracting Officer respecting this clause, provided Seller shall not be required to disclose to Buyer such communications containing information that is privileged and confidential to the Seller.
    3.    In addition to any other remedies provided by law or under this order, Seller agrees to indemnify and hold Buyer harmless to the full extent of any loss, damage, or expense if Buyer is subjected to any liability as the result of a failure of Seller or its lower-tier subcontractors to comply with the requirements of this clause.    

75.    FAR 52.230-3, DISCLOSURE AND CONSISTENCY OF COST     ACCOUNTING PRACTICES (NOV 1993)
    (MANDATORY)     
    1.    If the Buyer's Prime Contract under which this Purchase Order is issued invokes an earlier revision of the Cost Accounting Standards clause than AUG 1992, then (a) applies; if it invokes AUG 1992 or later revision, then (b) applies:
        (a)    If this is a negotiated order (as defined in FAR 52.230-3, SEP 1987) in excess of $100,000 , unless otherwise excepted or exempted pursuant to FAR 30.301(b), and if Seller is eligible under FAR 30.302(b), in effect on SEP 1987, to elect to use this clause 52.230-3 and does so elect, FAR 52.230-3 (current revision) is applicable and and is hereby incorporated by reference as if set forth in full except that paragraph (b) of FAR 52.230-3 is deleted and "United States" in paragraph (a)(3)(ii) means "Buyer or United States."  If this clause applies to this order, the clause entitled "Cost Accounting Standards" hereof shall not apply.
        (b)    If this is a negotiated order in excess of $500,000, unless otherwise excepted or exempted from CAS applicability under 48 CFR, Subparts 9903.201-1 and 9903.201-2, and if Seller is eligible under FAR 30.201-4(b) (current revision) to elect to use this clause 52.230-3 and does so elect, FAR 52.230-3 is applicable and is incorporated in this order by reference as if set forth in full, except that paragraph (b) of FAR 52.230-3 is deleted and "United States" in paragraph (a)(3)(ii) means "Buyer or United States".  If this clause applies to this order, the clause entitled' Cost Accounting Standards" hereof shall not apply.
    2.    Seller shall communicate and otherwise deal directly with the Government Contracting Officer to the extent practicable and permissible as to all matters relating to Cost Accounting Standards.  Seller shall provide Buyer with copies of all communications between Seller and the Government Contracting Officer respecting this clause, provided Seller shall not be required to disclose to Buyer such communications containing information that is privileged and confidential to the Seller.
    3.    In addition to any other remedies provided by law or under this order, Seller agrees to indemnify and hold Buyer harmless to the full extent of any loss, damage, or expense if Buyer is subjected to any liability as the result of a failure of Seller or its lower-tier subcontractors to comply with the requirements of this clause.

76.    FAR 52.230-5, ADMINISTRATION OF COST ACCOUNTING     STANDARDS (FEB 1995) (MANDATORY)     
    (If this order is subject to either the clause entitled "Cost Accounting Standards" or the clause entitled "Disclosure and Consistency of Cost Accounting Practices" set forth above, this clause FAR 52.230-5, Administration of Cost Accounting Standards (FEB 1995) is applicable and is incorporated in this order by reference as if set forth in full.)

77.    DFARS 252.231-7000, SUPPLEMENTAL COST PRINCIPLES (DEC     1991) (EB-MODIFIED)     
    When the allowability of costs under this Purchase Order is determined in accordance with Part 31 of the Federal Acquisition Regulation (FAR), allowability shall also be determined in accordance with Part 231 of the Defense FAR Supplement in effect on the date of this Purchase Order.

78.    DFARS 252.231-7001, PENALTIES FOR UNALLOWABLE COSTS     (MAY 1994) (EB-MODIFIED)     
    (a)    Definition.
        "Proposal" means either--
        (1)    A final indirect cost rate proposal submitted by the Seller after the expiration of its fiscal year which--
            (i)  Relates to any payment made on the basis of billing rates or
            (ii) Will be used in negotiating the final contract price; or
        (2)    The final statement of costs incurred and estimated to be incurred under the Incentive Price Revision clause (if applicable), which is used to establish the final contract price.
    (b)    Sellers which include unallowable indirect costs in a proposal may be subject to penalties.  The penalties are prescribed in 10 U.S.C 2324, as amended by section 818 of Pub. L. 102-484, which is implemented in Subpart 231.70 of the Defense Federal Acquisition Regulation Supplement (DFARS).
    (c)    The Seller shall not include in any proposal any cost which is unallowable, as defined in Part 31 of the Federal Acquisition Regulation (FAR).
    (d)    If the Buyer's Contracting Officer determines that a cost submitted by the Seller in its proposal is expressly unallowable under a FAR or DFARS cost principle that defines the allowability of specific selected costs, the Seller shall be assessed a penalty equal to--
        (1)    The amount of the disallowed cost allocated to this Purchase Order; plus
        (2)    Simple interest, to be computed--
            (i)  On the amount the Seller was paid (whether as a progress or billing payment) in excess of the amount to which the Seller was entitled, and
            (ii)  Using the applicable rate effective for each six month interval prescribed by the Secretary of the Treasury pursuant to Pub. L. 92-41 (85 Stat. 97).
    (e)    If the Contracting Officer determines that a cost submitted by the Seller in its proposal includes a cost previously determined to be unallowable for that Seller, then the Seller will be assessed a penalty in an amount equal to two times the amount of the disallowed cost allocated to this Purchase Order.
    (f)    Determinations under (d) and (e) of this clause are final decisions within the meaning of the Contract Disputes Act of 1978 (41 U.S.C. 604, et seq.).
    (g)    Pursuant to the criteria in DFARS 231.7002-5, the Contracting Officer may waive the penalties in (d) or (e) of this clause.
    (h)    Contractor submission of unallowable costs is also subject to the provisions of 18 U.S.C. 287 and 31 U.S.C. 3729.
    (i)    Payment by the Seller of any penalty assessed under this clause does not constitute repayment to the Government of any unallowable cost which has been paid by the Buyer or Government to the Seller.

79.    DFARS 252.242-7001, CERTIFICATION OF INDIRECT COSTS
    (DEC 1991) (EB-MODIFIED)     
    (Applies if this Purchase Order provides for (a) interim reimbursement of indirect costs; (b) establishment of final indirect cost rates; or (c) contract financing that includes interim payment of indirect costs, e.g., progress payments.)
    (a)    The Seller shall--
        (1)    Certify any proposal to establish or modify billing rates or to establish final indirect cost rates;
        (2)    Use the format in paragraph (c) of this clause to certify; and
        (3)    Have the certificate signed by an individual of the Seller's organization at a level no lower than a vice president or chief financial officer of the business segment of the Seller that submits the proposal.
    (b)    Failure by the Seller to submit a signed certificate, as described in this clause, shall result in payment of indirect costs at rates unilaterally established by the Government.
    (c)    The certificate of indirect costs shall read as follows:

CERTIFICATE OF INDIRECT COSTS

This is to certify that to the best of my knowledge and belief:
1.    I have reviewed this indirect cost proposal;
2.    All costs included in this proposal _______identify proposal and date)_____     to establish billing or final indirect cost rates for ________identify period covered by rate)_____     are allowable in accordance with the requirements of contracts to which they apply and with the cost principles of the Department of Defense applicable to those contracts: 3.    This proposal does not include any costs which are unallowable under applicable cost principles of the Department of Defense, such as (without limitation): advertising and public relations costs, contributions and donations, entertainment costs, fines and penalties, lobbying costs, defense of fraud proceedings, and goodwill; and 4.    All costs included in this proposal are properly allocable to Defense contracts on the basis of a beneficial or causal relationship between the expenses incurred and the contracts to which they are allocated in accordance with applicable acquisition regulations.
I declare under penalty of perjury that the foregoing if true and correct.

    Firm:_________________________________

    Signature:_____________________________

    Name of Corporation Official:______________

    _____________________________________

    Title: _________________________________

    Date of Execution:______________________


80.    FAR 52.242-1, NOTICE OF INTENT TO DISALLOW COSTS
    (APR 1984) (EB-MODIFIED)     
    (Applies if this is a cost-reimbursement, fixed price incentive, or price redeterminable purchase order.)     (a)    Notwithstanding any other clause of this Purchase Order-
        (1)    The Buyer may at any time issue to the Seller a written notice of intent to disallow specified costs incurred or planned for incurrence under this Purchase Order that have been determined not to be allowable under the purchase order terms; and
        (2)    The Seller may after receiving a notice under subparagraph (1) above, submit a written response to the Buyer with justification for allowance of the costs.  If the Seller does respond within 60 days, the Buyer shall, within 60 days of receiving the response, either make a written withdrawal of the notice or issue a written decision.
    (b)    Failure to issue a notice under this Notice of Intent to Disallow Costs clause shall not affect the Buyer's or Government's rights to take exception to incurred costs.


81.    SUBCONTRACTOR TRAVEL AND PER DIEM COSTS
    Unless agreed to in writing by the Buyer, Seller agrees that:
    (a)    Travel and per diem costs which are to be paid to or reimbursed to Seller under this Purchase Order shall not  exceed the amounts determined to be allowable by Federal Acquisition Regulation (FAR) Subpart 31.2.
    (b)    Costs incurred for lodging, meals and incidental expenses (M&IE) shall be considered to be reasonable and allowable only to the extent  that they do not exceed on a daily basis the maximum per diem rates in effect at the time of travel as set forth in the -
        (i)  Federal Travel Regulation (FTR) for travel in the lower 48 continental United States; or,
        (ii)   Joint Travel Regulations (JTR), Volume 2, Appendix A for travel in Alaska, Hawaii, Puerto Rico, and territories and possessions of the United States; or,
        (iii)  Standardized Regulations (Government Civilians, Foreign Areas), Section 925, "Maximum Travel Per Diem Allowances for Foreign Areas" or elsewhere.
        Lodging and M&IE - Under the FTR, the per diem allowance for each day is established on the basis of the actual amount the traveler pays for lodgings (including all taxes and service charges) plus an allowance for M&IE, the total not to exceed the applicable maximum per diem rate for the location concerned.
        Seller shall obtain and maintain receipts for lodging for audit purposes to substantiate invoiced amounts.
        Airfare - When it is necessary to use air travel, Seller agrees that, except for special circumstances identified in FAR 31-205-46(0), airfare costs in excess of the lowest customary standard, coach, or equivalent airfare offered during normal business hours are unallowable and EB is not obligated to reimburse any airfare costs in excess of these amounts.
    (c)    Travel to Electric Boat, Groton, CT
    When travel to Electric Boat in support of this Purchase Order requires overnight accommodations, Seller may obtain Electric Boat contracted room rates at certain area hotels in order to comply with FTR lodging limitations for this area.  When making reservations at one of these hotels, Seller is to identify itself as an Electric Boat subcontractor and to request the contracted rate.
        Seller is not required to utilize any of these hotels.  However, when this Order provides for the reimbursement of lodging costs, EB will not be obligated to reimburse any such costs in excess of the FTR amount.
        Electric Boat makes no assurances of, and accepts no liability for, the availability of rooms at the contract rates at these area hotels.
        Seller should contact the Buyer named on this Purchase Order for a current listing of area hotels with whom Electric Boat has contracted room rates.

82.    FAR 52.216-5, PRICE REDETERMINATION - PROSPECTIVE
     (APR 1984) - PARTIAL (MANDATORY)  (EB-MODIFIED)
    (As required by FAR 52.244-2, this article applies if this is a price redetermination, incentive price revision, or cost-reimbursement type purchase order issued as a subcontract to a cost-reimbursement or letter type prime contract.
    (a) - (g)    NOT APPLICABLE     (h)    Quarterly limitation on payments statement.  This paragraph (h) applies only during periods for which firm prices have not been established.
        (1)    Within 45 days after the end of the quarter of the Seller's fiscal year in which a delivery is first made (or services are first performed) and accepted by the Buyer under this subcontract, and for each quarter thereafter, the Seller  shall submit to the Buyer  (with a copy to the Seller's contracting office and the Seller's  government contract auditor) a statement, cumulative from the beginning of the subcontract, showing--
            (i)  The total subcontract price of all supplies delivered (or services performed) and accepted by the Buyer and for which final prices have been established;
            (ii)  The total costs (estimated to the extent necessary) reasonably incurred for, and properly allocable solely to, the supplies delivered (or services performed) and accepted by theBuyer and for which final prices have not been established;
            (iii)  The portion of the total interim profit (used in establishing the initial subcontract price or agreed to for the purpose of this paragraph (h)) that is in direct proportion to the supplies delivered (or services performed) and accepted by the Buyer and for which final prices have not been established; and
            (iv)  The total amount of all invoices or vouchers for supplies delivered (or services performed) and accepted by the Buyer (including amounts applied or to be applied to liquidate progress payments).
        (2)    The statement required by subparagraph (1) above need not be submitted for any quarter for which either no costs are to be reported under subdivision (1)(ii) above, or revised billing prices have been established above, and do not exceed the existing contract price, the Seller's price-redetermination proposal, or a price based on the most recent quarterly statement, whichever is least.
        (3)    Notwithstanding any provision of this subcontract authorizing greater payments, if on any quarterly statement the amount under subdivision (1)(iv) above exceeds the sum due the Seller, as computed in accordance with subdivisions (1)(i), (ii), and (iii) above, the Seller shall immediately refund or credit to the Buyer the amount of this excess.  The Seller may, when appropriate, reduce this refund or credit by the amount of previous refunds or credits affected under this clause.  If any portion of the excess has been applied to the liquidation of progress payments, then that portion may, instead of being refunded, be added to the unliquidated progress payment account, consistent with the Progress Payments clause.  The Seller shall provide complete details to support any claimed reductions in refunds.
        (4)    If the Seller fails to submit the quarterly statement within 45 days after the end of each quarter and it is later determined that the Buyer has overpaid the Seller, the Seller shall repay the excess to the Buyer  immediately.  Unless repaid within 30 days after the end of the statement submittal period, the amount of the excess shall bear interest, computed from the date the quarterly statement was due to the date of repayment, at the rate established in accordance with the Interest clause.  
    (i)    Subcontracts.  No subcontract placed under this contract may provide for payment on a cost-plus-a-percentage-of-cost basis.  The Seller shall--        (1)    Insert in each price redetermination or incentive price revision subcontract the substance of paragraph (h) above, and of this paragraph (i),  modified to  reflect the position of the Seller  as purchaser and of the lower-tier subcontractor as vendor.
        (2)    Include in each cost-reimbursement lower-tier subcontract a requirement that each lower-tier price redetermination or incentive price revision subcontract contain the substance of paragraph (h) above, and this paragraph (i).
    (j)-(k)    NOT APPLICABLE

83.    FAR 52.216-6, PRICE REDETERMINATION     RETROACTIVE
    (APR 1984) PARTIAL (MANDATORY) (EB-MODIFIED)
    (As required by FAR 52.244-2, this article applies if this is a price redetermination, incentive price revision or cost-reimbursement type purchase order issued as a subcontract to a cost-reimbursement or letter type prime contract.
    (a) - (f)    NOT APPLICABLE
    (g)    Quarterly limitation on payments statement.  This paragraph (g) shall apply until final price redetermination under this subcontract has been completed.
        (1)    Within 45 days after the end of the quarter of the Seller's fiscal year in which a delivery is first made (or services are first performed) and accepted by the Buyer  under this subcontract, and for each quarter thereafter, the Seller shall submit to the Buyer (with a copy to the Seller's contracting office and the Seller's government contract auditor), a statement, cumulative from the beginning of the subcontract, showing--
            (i)  The total contract price of all supplies delivered (or services performed) and accepted by the Buyer and for which final prices have been established;
            (ii)  The total costs (estimated to the extent necessary) reasonably incurred for, and properly allocable solely to, the supplies delivered (or services performed) and accepted by the Buyer t and for which final prices have not been established;
            (iii)  The portion of the total interim profit (used in establishing the initial subcontract  price or agreed to for the purpose of this paragraph (g)) that is in direct proportion to the supplies delivered (or services performed) and accepted by the Buyer and for which final prices have not been established; and
            (iv)  The total amount of all invoices or vouchers for supplies delivered (or services performed) and accepted by the Buyer (including amounts applied or to be applied to liquidate progress payments).
        (2)    Notwithstanding any provision of this subcontract authorizing greater payments, if on any quarterly statement the amount under subdivision (1)(iv) above exceeds the sum due the Seller, as computed in accordance with subdivisions (i), (ii), and (iii) above, the Seller shall immediately refund or credit to the Buyer the amount of this excess.  The Seller may, when appropriate, reduce this refund or credit by the amount of previous refunds or credits effected under this clause.  If any portion of the excess has been applied to the liquidation of progress payments, then that portion may, instead of being refunded, be added to the unliquidated progress payment account, consistent with the Progress Payments clause.  The Seller shall provide complete details to support any claimed reduction in refunds.
        (3)    If the Seller fails to submit the quarterly statement within 45 days after the end of each quarter and it is later determined that the Buyer has overpaid the Seller, the Seller shall repay the excess to the Buyer  immediately.  Unless repaid within 30 days after the end of the statement submittal period, the amount of the excess shall bear interest, computed from the date the quarterly statement was due to the date of repayment, at the rate established in accordance with the Interest clause.
    (h)    Subcontracts.  No subcontract placed under this contract may provide for payment on a cost-plus-a-percentage-of-cost basis.  The Seller shall--
        (1)    Insert in each price redetermination or incentive price revision subcontract the substance of paragraph (g) above, and of this paragraph (h), modified to reflect the position of the Seller  as purchaser and of the lower-tier subcontractor as vendor; and
        (2)    Include in each cost-reimbursement lower-tier subcontract a requirement that each lower-tier price redetermination or incentive price revision subcontract contain the substance of paragraph (g) above, and this paragraph (h).
    (i)-(j)    NOT APPLICABLE

84.    FAR 52.216-16, INCENTIVE PRICE REVISION - FIRM TARGET (4/84)     (PARTIAL) (EB-MODIFIED (MANDATORY)
    (This article applies if this is a price redetermination, incentive price revision, or cost reimbursement type purchase order.)
    (a) - (f)    NOT APPLICABLE
    (g)    Quarterly limitation on payments statement.  This paragraph (g) shall apply until final price revision under this contract has been completed.
        (1)    Within 45 days after the end of each quarter of the Seller's fiscal year in which a delivery is first made ( or services are first performed) and accepted by the Buyer under this contract, and for each quarter thereafter, the Seller shall submit to the Buyer (with a copy to the Seller's contracting office and the Seller's government contract auditor) a statement, cumulative from the beginning of the subcontract, showing---
            (i)  The total subcontract price of all supplies delivered (or services performed) and accepted by the Buyer and for which final prices have been established;
            (ii)  The total costs (estimated to the extent necessary) reasonably incurred for, and properly allocable solely to, the supplies delivered (or services performed) and accepted by the Buyer and for which final prices have not been established;
            (iii)  The portion of the total target profit (used in establishing the initial subcontract  price or agreed to for the purpose of this paragraph (g)) that is in direct proportion to the supplies delivered (or services performed) and accepted by the Buyer and for which final prices have not been established, when the amount stated under subdivision (ii), immediately above, differs from the aggregate target costs of the supplies or services; and
            (iv)  The total amount of all invoices or vouchers for supplies delivered (or services performed) and accepted by the Buyer (including amounts applied or to be applied to liquidate progress payments).
        (2)    Notwithstanding any provision of this subcontract authorizing greater payments, if on any quarterly statement the amount under subdivision (1)(iv) above exceeds the sum due the Seller, as computed in accordance with subdivisions (1)(i), (ii), and (iii) above, the Seller shall immediately refund or credit to the Buyer the amount of this excess.  The Seller may, when appropriate, reduce this refund or credit by the amount of previous refunds or credits effected under this clause.  If any portion of the excess has been applied to the liquidation of progress payments, then that portion may, instead of being refunded, be added to the unliquidated progress payment account consistent with the Progress Payments clause.  The Seller shall provide complete details to support any claimed reductions in refunds.
        (3)    If the Seller fails to submit the quarterly statement within 45 days after the end of each quarter and it is later determined that the Buyer has overpaid the Seller, the Seller shall repay the excess to the Buyer immediately.  Unless repaid within 30 days after the end of the statement submittal period, the amount of the excess shall bear interest, computed from the date the quarterly statement was due to the date of repayment, at the rate established in accordance with the Interest clause.
    (h)    Subcontracts.  No subcontract placed under this contract may provide for payment on a cost-plus-a-percentage-of-cost basis.  The Seller shall--
        (1)    Insert in each price redetermination or incentive price revision subcontract the substance of paragraph (g), above, and of this paragraph (h), modified to reflect the position of the Seller as purchaser and of the subcontractor as vendor; and
        (2)    Include in each cost-reimbursement lower-tier subcontract a requirement that each lower-tier price redetermination or incentive price revision subcontract contain the substance of paragraph (g) above and of this paragraph (h).
    (i)-(h)    NOT APPLICABLE

85.    FAR 52.216-17, INCENTIVE PRICE REVISION-SUCCESSIVE     TARGETS (APR 1984) (PARTIAL) (MANDATORY) (EB-MODIFIED)
    (As required by FAR 52.244-2, this article applies if this is a price redetermination, incentive price revision or cost-reimbursement type purchase order issued as a subcontract to a cost-reimbursement or letter type prime contract.
    (a) - (h)    NOT APPLICABLE
    (i)    Quarterly limitation on payments statement.  This paragraph (i) shall apply until a firm fixed or a total final price is established.
        (1)    Within 45 days after the end of the quarter of the Seller's fiscal year in which a delivery is first made (or services are first performed) and accepted by the Buyer under this subcontract, and for each quarter thereafter, the Seller  shall submit to the Buyer (with a copy to the Seller'scontracting office and the Seller's government contract auditor), a statement, cumulative from the beginning of the subcontract, showing--
            (i)  The total subcontract price of all supplies delivered (or services performed) and accepted by the Buyer and for which final prices have been established;
            (ii)  The total costs (estimated to the extent necessary) reasonably incurred for, and properly allocable solely to, the supplies delivered (or services performed) and accepted by the Buyer  and for which final prices have not been established;
            (iii)  The portion of the total interim profit (used in establishing the initial subcontract  price or agreed to for the purpose of this paragraph (i)) that is in direct proportion to the supplies delivered (or services performed) and accepted by the Buyer and for which final prices have not been established when the amount stated under subdivision (ii), immediately above, differs from the aggregate firm target costs of the supplies or services; and
            (iv)  The total amount of all invoices or vouchers for supplies delivered (or services performed) and accepted by the Buyer (including amounts applied or to be applied to liquidate progress payments).
        (2)    Notwithstanding any provision of this subcontract authorizing greater payments, if on any quarterly statement the amount under subdivision (1)(iv) above exceeds the sum due the Seller, as computed in accordance with subdivisions (1)(i), (ii), and (iii) above, the Seller shall immediately refund or credit to the Buyer the amount of this excess.  The Seller  may, when appropriate, reduce this refund or credit by the amount of previous refunds or credits effected under this clause.  If any portion of the excess has been applied to the liquidation of progress payments, then that portion may, instead of being refunded, be added to the unliquidated progress payment account, consistent with the Progress Payments clause.  The Seller shall provide complete details to support any claimed reduction in refunds.
        (3)    If the Seller fails to submit the quarterly statement within 45 days after the end of each quarter and it is later determined that the Buyer has overpaid the Seller, the Seller shall repay the excess to the Buyer  immediately.  Unless repaid within 30 days after the end of the statement submittal period, the amount of the excess shall bear interest, computed from the date the quarterly statement was due to the date of repayment, at the rate established in accordance with the Interest clause.
    (j)    Subcontracts.  No subcontract placed under this contract may provide for payment on a cost-plus-a-percentage-of-cost basis.  The Seller shall--
        (1)    Insert in each price redeter-mination or incentive price revision subcontract the substance of paragraph (i) above, and of this paragraph (j), modified to reflect the position of the Seller  as purchaser and of the lower-tier subcontractor as vendor; and
        (2)    Include in each cost-reimbursement lower-tier subcontract a requirement that each lower-tier price redetermination or incentive price revision subcontract contain the substance of paragraph (i) above, and this paragraph (j).
    (k)-(p)    NOT APPLICABLE

86.    FAR 52.215-27, TERMINATION OF DEFINED BENEFIT PENSION     PLANS (SEP 89) (EB-MODIFIED TO CHANGE PARTIES) (MANDATORY)
    (Applies if the applicability requirements of FAR 15-804-8(e) are met.)
    The Seller shall promptly notify the Buyer in writing when it determines that it will terminate a defined benefit pension plan or otherwise recapture such pension fund assets.  If pension fund assets revert to the Seller or are constructively received by it under a termination or otherwise, the Seller shall make a refund or give a credit to the Buyer for its equitable share as required by FAR 31.205-6(j)(4).  The Seller shall include the substance of this clause in all subcontracts under this contract which meet the applicability requirement of FAR 15.804-8(e).

87.    FAR 52.215-39, REVERSION OR ADJUSTMENT OF PLANS FOR     POST-RETIREMENT BENEFITS (PRB) OTHER THAN PENSIONS
    (FEB 1995) (MANDATORY)
    (This article applies if the applicability requirements of FAR 15.804-8(f) are met (Certified cost or pricing data is anticipated to be required for this order or if any pre-award or post-award cost determinations will be subject to FAR Subpart 31.2.))
    Incorporated into this order by reference.

88.    LIMITATION ON PRICE ADJUSTMENTS
    This clause applies if this Purchase Order is a subcontract under a shipbuilding contract subject to 10 U.S.C. 2405.
    If the shipbuilding contract under which this subcontract is being issued was entered into before 10/13/94, the following applies:
    (a)    Electric Boat Corporation will not adjust any price for submarine contract material for any amount set forth in a claim, request for equitable adjustment, or demand for payment under the contract  (or incurred due to the preparation, submission, or adjudication of any such claim, request, or demand) arising out of events occurring more than 15 months before the submission of the claim, request, or demand.
    (b)    For the purposes of subsection (a),  a claim, request or demand shall be considered to have been submitted only when the contractor has provided the certification required by section 6(c)(1) of the Contract Disputes Act of 1978 (41 U.S.C. 605(c)(1)) and the supporting data for the claim, request, or demand.

    If the shipbuilding contract under which this subcontract is being issued was entered into on 10/13/94 or later, the following applies:
    (a)    Electric Boat Corporation will not adjust any price for submarine contract material for any amount set forth in a claim, request for equitable adjustment, or demand for payment under the contract  (or incurred due to the preparation, submission, or adjudication of any such claim, request, or demand) arising out of events occurring more than 69 months before the submission of the claim, request, or demand.
    (b)    For the purposes of subsection (a),  a claim, request or demand shall be considered to have been submitted only when the contractor has provided the certification required by section 6(c)(1) of the Contract Disputes Act of 1978 (41 U.S.C. 605(c)(1)) and the supporting data for the claim, request, or demand.

89.    DFARS 252.243-7000, ENGINEERING CHANGE PROPOSALS
    (MAY 1994) (EB-MODIFIED)
    (a)    The Buyer may at any time, in writing, request the Seller to prepare and submit an Engineering Change Proposal (ECP) for engineering changes within the scope of this Purchase Order, as hereafter set forth.  Upon receipt of such request, the Seller shall submit to the Buyer an Engineering change Proposal in accordance with the instructions of MIL-STD-973, in effect on the date of Buyer's prime contract award.
    (b)    The Seller may initiate Engineering Change Proposals.  Any Seller ECP shall set forth a "not to exceed" price and delivery adjustment or a "not less than" price and delivery adjustment, acceptable to the Seller if the Buyer subsequently orders such ECP.  If ordered, the equitable increase shall not exceed, nor shall the equitable decrease be less than, such "not to exceed" or "not less than" amounts.
    (c)    Concurrently with the submission of any ECP under this Purchase Order in which the proposed aggregate cost is $500,000 or greater, the Seller shall submit to the Buyer a completed SF1411.  At the time of agreement upon the price of the ECP, the Seller shall submit a signed Certificate of Current Cost or Pricing Data.

90.    DFARS 252.243-7001, PRICING OF CONTRACT MODIFICATIONS
    (DEC 1991) (EB-MODIFIED)     
    When costs are a factor in any price adjustment under this contract, the contract cost principals and procedures in FAR Part 31 and DFARS Part 231, in effect on the date of Buyer's prime contract.

91.    FAR 52.212-13, STOP-WORK ORDER (AUG 1989) AND ALT I
    (APR 84) (EB-MODIFIED)
    (a)    If Buyer's Contracting Officer issues a Stop Work Order to Buyer affecting that portion of the prime contract for which Buyer has awarded this subcontract, Seller agrees that Buyer may require Seller to stop all, or any part, of the work called for by this Purchase Order for a period of 90 days after the order is delivered to the Seller, and for any further period to which the parties may agree.  The order shall be specifically identified as a stop-work order issued under this clause.  Upon receipt of the order, the Seller shall immediately comply with its terms and take all reasonable steps to minimize the incurrence of costs allocable to the work covered by the order during the period of work stoppage.  Within a period of 90 days after a stop-work is delivered to the Seller, or within any extension of that period to which the parties shall have agreed, the Buyer shall either -
        (1)  Cancel the stop-work order; or
        (2)  Terminate the work covered by the order as provided in the "Default", or the "Termination" clause of this Puchase Order.
    (b)    If a stop-work order issued under this clause is canceled or the period of the order or any extension thereof expires, the Seller shall resume work.  The Buyer shall make an equitable adjustment in the delivery schedule or contract price, or both, and the contract shall be modified, in writing, accordingly, if-
        (1)  The stop-work order results in an increase in the time required for, or in the Seller's cost properly allocable to, the performance of any part of this Purchase Order; and
        (2)  The Seller asserts its right to the adjustment within 30 days after the end of the period of work stoppage; provided, that, if the Buyer decides  the facts justify the action, the Buyer may receive and act upon the claim submitted at any time before final payment under this Purchase Order.
    (c)    If a stop-work order is not canceled and the work covered by the order is terminated for the convenience of the Buyer or Government, the Buyer shall allow reasonable costs resulting from the stop-work order in arriving at the termination settlement
.    (d)    If a stop-work order is not canceled and the work covered by the order is terminated for default, the Buyer shall allow, by equitable adjustment or otherwise, reasonable costs resulting from the stop-work order.
    Alternate I (APR 1984).  If the clause is inserted in a cost-reimbursement contract, in paragraph (b) substitute the words  "an equitable adjustment in the delivery schedule, the estimated cost, the fee, or a combination thereof, and in any other terms of the purchase order that may be affected" for the words "an equitable adjustment in the delivery schedule or  purchase order price, or both."

92.    FAR 52.243-7, NOTIFICATION OF CHANGES (APR 1984)
    (EB-MODIFIED)     
    (Applies if this Purchase Order equals or exceeds $1,000,000.)    
    A.    (Definitions.)
        "Buyer," as used in this clause,
refers to Electric Boat.  "Specifically Authorized Representative (SAR)" refers to only the employee of EB's Materials Management Department authorized in the text of this purchase order to bind Electric Boat contractually.  No other employee of Electric Boat (except the SAR's superiors), whether a member of the Materials Management or any other department, is authorized to amend this subcontract.
    B.    (Notice.)
        The primary purpose of this clause is to obtain prompt reporting of acts or omissions of Electric Boat employees that the Seller considers to constitute a change to this Purchase Order.  Except for changes identified as such in writing and signed by the Buyer's SAR, Seller shall notify the Buyer's SAR in writing promptly, within thirty (30) calendar days from the date that the Seller identifies any conduct by Electric Boat employees (including actions, inactions, and written or oral communications) that the Seller regards as a change to the Purchase Order terms and conditions.  On the basis of the most accurate information available to Seller, the notice shall state:
        (1)    the date, nature, and circumstances of the conduct regarded as a change;
        (2)    the name, function, and activity of each Electric Boat employee and Seller official or employee involved in or knowledgeable about such conduct;
        (3)    the identification of any documents and the substance of any oral communication involved in such conduct;
        (4)    in the instance of alleged acceleration of scheduled performance or delivery, the basis upon which it arose;
        (5)    the particular elements of Purchase Order performance for which Seller may seek an equitable adjustment under this clause, including:
            (a)    what Purchase Order line items have been or may be affected by the alleged change;
            (b)    what labor or materials or both have been or may be added, deleted, or wasted by the alleged change;
            (c)    to the extent practicable, what delay and disruption in the manner and sequence of performance and effect on continued performance have been or may be caused by the alleged change;
            (d)    what adjustments to Purchase Order price, delivery schedule, and other provisions affected by the alleged change are estimated; and
        (6)    the Seller's estimate of the time by which the Buyer's SAR must respond to the Seller's notice to minimize cost, delay or disruption of performance.
    C.    (Continued Performance.)
        Following submission of the notice required by B. above, the Seller shall diligently continue performance of the Purchase Order to the maximum extent possible in accordance with its terms and conditions as construed by the Seller, unless the notice reports a direction of Buyer SAR, in either of which events the Seller shall continue performance; provided, however, that if the Seller regards the direction or communication as a change as described in B. above, notice shall be given in the manner provided.  All directions, communications, interpretations, orders and similar actions of the SAR shall be reduced to writing promptly and copies furnished to the Seller and to Buyer's SAR.  Electric Boat management shall promptly countermand any action which exceeds the authority of the SAR.
    D.    (Electric Boat  Response.)
        The SAR shall promptly, within thirty (30) calendar days after receipt of notice, respond to the notice in writing.  In responding, the SAR Officer shall either:
        (1)    confirm that the conduct of which Seller gave notice constitutes a change and when necessary direct the mode of further performance;
        (2)    countermand any communication regarded as a change;
        (3)    deny that the conduct of which Seller gave notice constitutes a change and when necessary direct the mode of further performance; or
        (4)    in the event the Seller's notice information is inadequate to make a decision under (1), (2), or (3) above, advise the Seller what additional information is required, and establish the date by which it should be furnished and the date thereafter by which the Buyer's SAR will respond.
    E.    (Equitable Adjustments.)
        (1)    If the SAR confirms that Electric Boat's conduct effected a change as alleged by the Seller, and the conduct causes an increase or decrease in the Seller's cost of, or the time required for, performance of any part of the work under this Purchase Order, whether changed or not changed by such conduct, an equitable adjustment shall be made:
            (a)    in the Purchase Order price or delivery schedule or both; and
            (b)    in such other provisions of the Purchase Order as may be affected.
        (2)    The Purchase Order shall be modified in writing accordingly.  In the case of drawings, designs or specifications which are defective and for which Electric Boat is responsible, the equitable adjustment shall include the cost and time extension for delay reasonably incurred by the Seller in attempting to comply with the defective drawings, designs or specifications before the Seller identified, or reasonably should have identified, such defect.  When the cost of property made obsolete or excess as a result of a change confirmed by the SAR under this clause is included in the equitable adjustment, the SAR Officer shall have the right to prescribe the manner of disposition of the property.  The equitable adjustment shall not include increased costs or time extensions for delay resulting from Seller's failure to provide notice or to continue performance as provided, respectively, in B. and C. above.

93.    NAVSEA 5252.233-9103, DOCUMENTATION OF REQUESTS FOR     EQUITABLE ADJUSTMENT (MAY 1993) (EB-MODIFIED)
    (a)    For the purposes of this requirement, the term "change" includes not only a change made pursuant to a written order designated as a "change order" but also (i) an engineering change proposed by the Buyer or the Seller pursuant to the "Other Change Proposals" or other requirements of this Purchase Order and (ii) any act or omission to act on the part of the Buyer or Government in respect of which a request is made for equitable adjustment under the "CHANGES" clause or any other article or requirement of this purchase order.
    (b)    Whenever the Seller requests or proposes an equitable adjustment of $500,000 or more in respect of a change made pursuant to a written order designated as a "change order" or in respect of a proposed engineering change and when ever the Seller requests an equitable adjustment in any amount in respect of any other act or omission to act on the part of the Buyer or Government, the proposal supporting such request shall include the following information for each individual item or element of the request:
        (1)    A description (i) of the work required by the Purchase Order before the change, which has been deleted by the change, and (ii) of the work deleted by the change which already has been completed.  The description is to include a list of identifiable components, equipment, and other identifiable property involved.  Also, the status of manufacture, procurement or installation of such property is to be indicated.  Separate description is to be furnished for design and production work.  Items of identifiable raw material, purchased parts, components and other identifiable hardware, which are made excess by the change and which are not to be retained by the Seller, are to be listed for later disposition;
        (2)    Description of work necessary to undo work already completed which has been deleted by the change;
        (3)    Description of work which is substituted or added by the change.  A list of identifiable components and equipment (not bulk materials or items) involved, should be included.  Separate descriptions are to be furnished for design work and production work;
        (4)    Description of interference and inefficiencies in performing the change;
        (5)    Description of disruption attributable solely to the change; which description shall include the following information:
            (i)    Description of each identifiable element of disruption and how work has been, or may be, disrupted;
            (ii)    The calendar period of time during which disruption occurred, or may occur;
            (iii)    Area(s) of the Seller's operations where disruption occurred, or may occur;
            (iv)    Trade(s) or functions disrupted, with a breakdown of manhours and material for each trade or function;
            (v)    Scheduling of trades before, during, and after the period of disruption insofar as such scheduling may relate to or be affected by the estimated disruption;
            (vi)    Description of any measures taken to lessen the disruptive effect of the change.
        (6)    Delay in delivery attributable solely to the change;
        (7)    Other work or increased costs attributable to the change;
        (8)    Supplementing the foregoing, a narrative statement of the nature of the alleged Buyer act or omission, when the alleged Buyer or Government act or omission occurred, and the "casual" relationship between the alleged Buyer or Government act or omission and the claimed consequences therefor, cross-referenced to the detailed information provided as required above.
    (c)    Each proposal submitted in accordance with this requirement shall include a copy of the Seller's labor budget at the cost class level in effect as of the date the event began, the cost incurred at the cost level as of the same date, and the proposed effect of the change at the cost class level.
    (d)    It is recognized that an individual request for equitable adjustment may not include all of the factors listed in subparagraphs (b) (1) through (b) (8) above, or that the Seller may not reasonably be able to furnish complete information on all of the factors listed in subparagraphs (b) (1) through (b) (8) above.  Accordingly, the Seller is only required to set forth in its request for equitable adjustment information with respect to those factors which are relevant to the individual request for equitable adjustment, or in the level of detail which is reasonably available to the Seller.
    (e)    In addition to any information required under paragraph (b) above, each proposal submitted in support of a claim for equitable adjustment, under any requirement of this Purchase Order, in an amount which requires certified cost or pricing data, if requested by the Buyer, shall contain a duly executed Standard Form (SF) 1411 with respect to each individual claim item.  The information furnished shall be in sufficient detail to permit the Buyer to cross-reference the claimed increased costs, or delay in delivery, or both, as appropriate, as set forth in the SF 1411, with the information submitted pursuant to subparagraphs (b) (1) through (b) (8) hereof.
    (f)    The certification requirements as set forth in the clause of this Purchase Order entitled "CERTIFICATION OF CLAIMS AND REQUESTS FOR ADJUSTMENT OR RELIEF" (DFARS 252.233-7000) shall be complied with.

94.    DFARS 252.233-7000, CERTIFICATION OF CLAIMS AND     REQUESTS FOR ADJUSTMENT OR RELIEF
    (MAY 1994) (EB-MODIFIED)
     (a)    Any Purchase Order claim, request for equitable adjustment to Purchase Order terms, request for relief under Pub. L. 85-804, or other similar request exceeding $100,000 shall bear, at the time of submission, the following certificate given by an individual who has knowledge of the basis of the claim or request, knowledge of the accuracy and completeness of the supporting data, and knowledge of the claim or request:
    I certify that the claim is made in good faith, that the supporting data are accurate and complete to the best of my knowledge and belief; that the amount requested accurately reflects the Purchase Order adjustment for which the Seller believes the Buyer ad/or Government is liable; and that I am duly authorized to certify the claim on behalf of the Seller.
        ___________________________             (Official 's Name)
        ___________________________                 (Title)
    (b)    The certification in paragraph (a) of this clause requires full disclosure of all relevant facts, including cost and pricing data.
    (c)    The certification requirement in paragraph (a) of this clause does not apply to:
        (1)    Requests for routine purchase order payments; for example, those for payment for accepted supplies and services, routine vouchers under cost-reimbursement type contracts, and progress payment invoices; or
        (2)    Final adjustments under incentive provisions of purchase orders.
    (d)    In those situations where no claim certification for the purposes of 10 U.S.C. 2401e has been submitted prior to the inception of a contract dispute, a single certification, using the language prescribed by the Contract Disputes Act (41 U.S.C. 601 et seq.) but signed by an individual who is authorized to bind the contractor and who has knowledge of the basis of the claim or request, knowledge of the accuracy and completeness of the supporting data, and knowledge of the claim or request, will satisfy the certification requirements of both statutes.
    (e)    If this is a request for equitable adjustment under a substantially completed Purchase Order a completed Purchase Order, the certification will be expanded to include the following:
    This claim includes only costs for performing the alleged change, and does not include any costs which have already been reimbursed or which have been separately claimed.  All indirect costs claims are properly allocable to the alleged change in accordance with applicable acquisition regulations.  I am aware that the submission of a false claim to the Government can result in the assessment of significant criminal and civil penalties and fines.

95.    NAVSEA 5252.233-9107, EQUITABLE ADJUSTMENTS:  WAIVER     AND RELEASE OF CLAIMS (JAN 1983) (EB-MODIFIED)
     (a)    Whenever the Seller, after receipt of a change made pursuant to the clause of this Purchase Order entitled "CHANGES" or after affirmation of a constructive change thereunder, submits any claim for equitable adjustment under the foregoing, such claim shall include all types of adjustments in the total amounts to which the foregoing entitle the Seller, including but not limited to adjustments arising out of delays or disruptions or both caused by such change.
    (b)    Further, the Seller agrees (except as the parties may otherwise agree) that, if required by the Buyer, it will execute a release, in form and substance satisfactory to the Buyer, as part of the Purchase Order Supplement setting forth the aforesaid equitable adjustment, and that such release shall discharge the Buyer, Government, their officers, agents and employees, from any further claims including, but not limited to, further claims arising out of delays or disruptions or both, caused by the aforesaid change.

96.    RESERVED




 

   
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