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to be delivered under the contract, in whatever form, and for all commodities the cost of which (including charges for use) is subject to reimbursement in U.S. dollars. With respect to any such commodities which cost more than $2,500 to procure or acquire (including charges for use), a United States origin and an appropriate certificate of source and origin will be required. For cost reimbursement contracts, the certification requirement is generally met by the Contractor furnishing Form AID-281 suppliers' certificates, as provided in the contract. This form is set out in Appendix A to AID Regulation 1 published in part 201, Title 22 of the Code of Federal Regulations, and reproduced in AID Manual Order 1456.1. (Certain AID contracts set a $5,000 limit below which certificates are not required. Certain contracts also provide for the use of Form AID-280. Unless modified, such requirements govern the contracts in which they appear.) § 7-6.5206 AID policy and Buy Ameri

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7-7.602 7-7.602-9

Contracts

Additional standardized clauses. Workmen's compensation insurance (Defense Base Act). 7-7.602-10 Federal, State, and local taxes.

AUTHORITY: The provisions of this Part 7-7 issued under sec. 621, 75 Stat. 445, as amended; 22 U.S.C. 2381.

SOURCE: The provisions of this Part 7-7 appear at 30 F.R. 12978, Oct. 12, 1965, unless otherwise noted.

§ 7-7.000 Scope of part.

A number of standard clauses which appear in AID contracts have not been included in the initial issuance of this Part 7-7. Subsequent revisions will include such clauses. See also the forms included in Part 7-16.

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persons or board (other than the Contracting Officer) authorized to act for the head of the agency or the Secretary.

(b) The term "Contracting Officer" means the person executing this contract on behalf of the Government, and any other officer or civilian employee who is a properly designated Contracting Officer; and the term includes, except as otherwise provided in this contract, the authorized representative of a Contracting Officer acting within the limits of his authority.

(c) Except as otherwise provided in this contract, the term "subcontracts" includes purchase orders under this contract.

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The clause set forth in FPR 1-7.10114 is not generally included in AID contracts when more stringent source requirements are stated in the contract or when inclusion is not appropriate under FPR 1-6.104-5. (See Executive Order No. 11223, dated May 12, 1965, 30 F.R. 6635). Clauses setting forth the AID source restrictions will be included in AIDPR 7-6.5208 and AIDPR 7-16.

§ 7-7.101-19 Officials not to benefit.

If the procurement is made by an overseas field procurement activity or in other cases where appropriate, the following clause may be substituted for the provision in FPR 1-7.101-19.

UNITED STATES OFFICIALS NOT TO BENEFIT

No member of or delegate to the Congress of the United States of America, or resident commissioner of the United States of America shall be admitted to any share or part of this contract, or to any benefit that might arise therefrom; but this provision shall not be construed to extend to this contract if made with a corporation for its general benefit.

§ 7-7.101-22 Federal, State, and local

taxes.

Whenever the FPR clauses are used and it is appropriate, the contract shall contain a provision explaining that the taxes referred to are United States Federal, State, and local taxes. § 7-7.101-34

Workmen's compensation insurance (Defense Base Act).

As a general rule, waivers will be obtained for persons employed outside the United States who are not United States citizens or residents, provided adequate protection will be given such persons. See AIDPR 7-10.402.

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The Foreign Aid and Related Agencies Appropriation Act, 1963, and subsequent appropriation Acts, have imposed the following requirement:

None of the funds appropriated or made available pursuant to this Act for carrying out the Foreign Assistance Act of 1961, as amended, may be used for making payments on any contract for procurement to which the United States is a party entered into after the date of enactment of this Act which does not contain a provision authorizing the termination of such contract for the convenience of the United States.

See, for example, section 110 of the Foreign Assistance and Related Agencies Appropriation Act, 1965.

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§ 7-10.305

Procedures to be followed in the event of loss or damage to Government property.

The Contractor must properly report all the circumstances of loss promptly to the Contracting Officer and advise whether any parties other than the Contractor were responsible and what steps have been taken to recover from them. The Contractor will protect Government subrogation rights. § 7-10.351

Liability insurance for operation of motor vehicles.

If a Contractor or any of its employees or their dependents transport or cause to be transported privately owned motor vehicles to a cooperating country, or they

or any of them purchase a motor vehicle within a cooperating country, the Contractor must give assurance that adequate liability coverage is provided and kept in force. Before such a motor vehicle is operated in a cooperating country, and whenever requested, the Contractor will provide the Mission Director, or his designee, with satisfactory evidence of such coverage by an insurance carrier satisfactory to him. Coverage will be for amounts equal in dollars or currency of the cooperating country to not less than $10,000/$20,000 for personal injury and $5,000 for property damage, or equal to not less than such other minimums as the Mission Director may prescribe from time to time. The cost of such insurance is not reimbursable.

Subpart 7-10.4—Insurance Under

Fixed-Price Contracts

§ 7-10.402

Workmen's compensation insurance overseas.

(a) The words "the Defense Base Act" may be deleted from the clause set forth in FPR 1-10.402(a) and the following substituted for it: "United States Public Law 208, 77th Congress".

(b) If the Contractor provides satisfactory coverage for them, waivers are generally granted for employees serving overseas under an AID contract who are not hired in the United States and are not citizens or bona fide residents of the United States. If a waiver is granted, the Contractor must provide, for nationals or permanent residents of the country in which the services are to be rendered, security for compensation benefits pursuant to the applicable law of the country for injury or death in the course of employment, or in the absence of such law, adequate employers' liability insurance, and for all other employees not covered by the Defense Base Act, the Contractor must provide adequate employers' liability insurance. Application for waivers is made by the Contracting Officer directly to the Director, Bureau of Employees' Compensation, Department of Labor, on Labor Department Form BEC 565, an original and 4 copies of which are forwarded to the Director. The following clause is included in all contracts for which a waiver of the kind described above will be applicable: WORKMEN'S COMPENSATION INSURANCE (42 U.S.C. 1651, ET SEQ.)

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