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not be liable for any excess costs for failure to perform, unless the supplies or services to be furnished by the subcontractor were obtainable from other sources in sufficient time to permit the Contractor to meet the required delivery schedule.

(d) If this contract is terminated as provided in paragraph (a) of this clause, the Government, in addition to any other rights provided in this clause, may require the Contractor to transfer title and deliver to the Government, in the manner and to the extent directed by the Contracting Officer, (i) any completed supplies, and (ii) such partially completed supplies and materials, parts, tools, dies, jigs, fixtures, plans, drawings, information, and contract rights (hereinafter called "manufacturing materials") as the Contractor has specifically produced or specifically acquired for the performance of such part of this contract as has been terminated; and the Contractor shall, upon direction of the Contracting Officer, protect and preserve property in possession of the Contractor in which the Government has an interest. Payment for completed supplies delivered to and accepted by the Government shall be at the contract price. Payment for manufacturing materials delivered to and accepted by the Government and for the protection and preservation of property shall be in an amount agreed upon by the Contractor and Contracting Officer; failure to agree to such amount shall be a dispute concerning a question of fact within the meaning of the clause of this contract entitled "Disputes."

(e) If, after notice of termination of this contract under the provisions of paragraph (a) of this clause it is determined that the failure to perform this contract is due to causes beyond the control and without the fault or negligence of the Contractor or subcontractor pursuant to the provisions of paragraph (c) of this clause, such notice of default shall be deemed to have been issued pursuant to the clause of this contract entitled "Termination for Convenience of the Government," and the rights and obligations of the parties hereto shall in such event be governed by such clause. (Except as otherwise provided in this contract, this paragraph (e) applies only if this contract contains such clause.)

(f) The rights and remedies of the Government provided in this clause shall not be exclusive and are in addition to any other rights and remedies provided by law or under this contract.

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(a) The disputes clause in § 1-7.10112 of this title will be incorporated in all contracts and grant agreements awarded and performed within the United States, or awarded to U.S. Nationals but performed outside of the United States, or performed outside of the United States by persons or business entities which have a place of business within the United States. Appeals resulting from disputes under this clause will be handled in accordance with Part 6-60 of this chapter.

(b) Contracts other than those cited in § 6-7.101-12(a) will incorporate the following disputes clause:

DISPUTES

(a) Except as otherwise provided in this contract, any dispute arising under this contract which is not disposed of by agreement shall be decided by the Contracting Officer,, who shall reduce his decision to writing and mail or otherwise furnish a copy thereof to the Contractor. The decision of the Contracting Officer shall be final and conclusive unless within 30 days from the date of receipt of such copy, the Contractor mails or otherwise furnishes to the Contracting Officer a written appeal addressed to the Deputy Under Secretary of State for Administration whose decision shall be final and conclusive. Pending final decision of a dispute hereunder, the Contractor shall proceed diligently with the performance of the contract and in accordance with the Contracting Officer's decision.

(b) Within 30 days after receipt of a notice of appeal received under the disputes clause in 6-7.101-12(b), the Contracting Officer will submit the notice of appeal and the contract file, including the documents specified in 6-60.303-2, to the Deputy Under Secretary of State for Administration, attention L/O, for decision. [31 F.R. 6624, May 4, 1966]

§ 6-7.101-22 Federal, State, and local

taxes.

Except as may be otherwise provided in this contract, the contract price in

66-090 O-67-3

Icludes all taxes and duties in effect and applicable to this contract on the tax inclusive date, except taxes from which the Government, the Contractor, or the transactions or property covered by this contract are then exempt. Unless spe

cifically excluded, duties are included in the contract price.

§ 6-7.101-28 Termination for convenience of the Government.

TERMINATION FOR THE CONVENIENCE OF THE GOVERNMENT

The Government shall have the right to terminate this contract at any time by giving written notice to the Contractor not less than 10 days prior to the effective date of termination. Should this contract be terminated pursuant to this clause prior to the date it would otherwise expire, the following shall apply:

(a) The Government shall complete all payments which shall then be due.

(b) The Contractor shall deliver to the Government all work in process under this contract requested by the Government.

(c) The Government shall pay to the Contractor any sum which is determined by the Contracting Officer as equitable for any work in process, which sum shall include any costs incurred by the Contractor in terminating any subcontract.

(d) Should the Contractor be unwilling to accept the sum so determined by the Contracting Officer the matter shall be treated as a dispute concerning a question of fact within the meaning of the clause entitled "Disputes" in the General Provisions.

§ 6-7.150 Additional required clauses.

The clauses in this § 6-7.150 shall be used in procurement by fixed price contracts outside the United States provided, however that any clause in § 67.150 need not be used if its use is prohibited by local laws or regulations, is contrary to local customs or practice or would be detrimental to the interests of the Government through increased costs or other reasons. Whenever a clause is not used, the contract file must contain a signed statement justifying such action. § 6-7.150-1 Government saved harmless.

GOVERNMENT SAVED HARMLESS

The Contractor shall hold and save the Government, its officers, agents and employees, harmless from liability of any nature or kind, including costs and expenses, for or on account of any or all suits or damages of any character whatsoever resulting from injuries or damages sustained by any person or persons or property by virtue of performance of this contract.

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with a view toward securing a contract or securing favorable treatment with respect to the awarding, amending, or the making of any determinations with respect to this contract.

(b) In the event that this contract is terminated as provided in paragraph (a) above, the Government shall have the same rights and remedies provided in the clause entitled "Default" in the General Provisions with respect to defaults of the Contractor, and any other rights and remedies provided by law or under this contract.

§ 6-7.151-5 Language version.

LANGUAGE VERSION

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In connection with any discount provided for, time will be computed from date of delivery of the supplies to carrier when delivery and acceptance are at point or origin or from date of delivery at destination or port of embarkation when delivery and acceptance are at either of those points, or from date correct invoice or voucher is received in the office specified by the Government if the latter date is later than the date of delivery. Payment is deemed to be made, for the purpose of earning the discount, on the date of mailing of the Government check.

§ 6-7.151-9 Requirements clause.

The following clause is applicable only to requirements contracts prepared in accordance with § 1-3.405-5(b).

REQUIREMENTS CLAUSE

(a) The Government agrees to purchase all of its requirements of (specific property or services) for use at (designated activities) during the period from to

from the Contractor. The Government shall not, however, be obligated to make any purchases in excess of its actual requirements.

(b) The Contractor agrees to furnish up to (maximum delivery obligation) of (specific property or services) while this contract remains in effect. The Contractor shall not, however, be obligated to deliver in excess of (quantity) during any (time) period, nor less than (quantity) in any delivery.

(c) Subject to paragraph (b) above, and upon the placing of orders by the Government at least days before the date of requested delivery, the Contractor agrees to make deliveries under this contract at any of the following designated point(s) :

(d) The Government shall use a purchase order (Foreign Service Form 455) in making purchases against this contract.

§ 6-7.151-10

Indefinite quantity clause. The following clause is applicable only to indefinite quantity contracts prepared in accordance with § 1-3.405-5 (c).

INDEFINITE QUANTITY CLAUSE

(a) The Contractor agrees to furnish up to (max. delivery obligation) of (specific property or services) during the period from to to the Government. The Contractor shall not, however, be obligated to deliver in excess of (quantity) during any (time) period, nor less than (quantity) in any delivery.

(b) Subject to paragraph (a) above, and upon the placing of orders by the Government at least day(s) before the date of requested delivery, the Contractor agrees to make deliveries under this contract at any of the following designated points:

(c) The Government agrees to purchase a minimum of (minimum order obligation) of (specific property or services) while this contract is in effect.

(d) The Government shall use a purchase order (Foreign Service Form 455) in placing orders against this contract up to the Government's minimum purchase obligation, and in making purchases against this contract over the Government's minimum purchase obligation.

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May 6, 1964 (29 F.R. 6254). The manufacturers must be furnished proof of export within 6 months after the sale.

(b) Taxable articles purchased for presentation abroad as gifts to foreign dignitaries and taxable articles purchased for presentation as gifts to foreign dignitaries visiting in the United States but which are almost immediately taken out of the United States may be exempt from any retailers or manufacturers excise taxes in accordance with letter of October 18, 1963 from Chief, Excise Tax Branch, Internal Revenue Service on file in Supply and Transportation Services Division.

(c) With respect to purchases from vendors in the United States for export to a Foreign Service Post, the following statement will be included in purchase

§ 6-11.205 Exemptions from other Fed- orders for items subject to excise taxes: eral taxes.

This is to certify that the item(s) covered by this purchase order is/are for export solely for the use of the American Foreign Service post shown above. It is, therefore, requested that the extra signed copy of the purchase dence of intent to export. Final proof of order furnished herewith be accepted as eviexportation may be obtained from the U.S. Despatch Agent, handling the shipment; such proof to be accepted in lieu of payment

of excise tax.

[31 F.R. 6624, May 4, 1966]

(a) With respect to motor vehicles purchased by the Department of State or the U.S. Information Agency for use by such agencies in foreign countries, the Secretary of the Treasury has granted an exemption from the federal excise tax imposed by 26 U.S.C. 4061(a) provided such vehicles are exported from the United States by such agencies within a period of 6 months from the date of delivery of such vehicles to the agencies, notwithstanding any use made by such agencies of the vehicles within the United States during the 6-month period. The contract for sale of such vehicles In certain instances purchases by posts must include a statement to the effect are exempt from various taxes in ferthat the sale of the vehicles is made for eign countries. It is incumbent upon the exclusive use of the United States and procurement officers to ascertain such qualifies for the exemption under order exemptions and to take maximum adof the Secretary of the Treasury dated vantage of them.

Subpart 6-11.3-State and Local
Taxes

§ 6-11.301

Applicability.

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