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<br />Pricing Data - Price Adjustments. or any subcontract clause there!n required,
<br />furnished cost or pricing data which was not complete, accurate and current as
<br />certified in the subcontractor.8 Certificate of Current Cost or Pricing Data;
<br />ClUI a subcontractor or prospective subcontractor furnished cost or
<br />pcicinq data which was required to be complete, accurate and current
<br />and to be submitted to support a subcontract cost estimate furnished
<br />by the Contractor but which was not complete, accurate and current as
<br />of the date certified in the COntractor's Certificate of CUrrent Cost
<br />or PriCing Data, or
<br />(tv) the Contraetor or a subcontractor
<br />furnished any data. not within (1),
<br />not accurate, as submitted:
<br />the price shall be reduced accordingly and the contract shall be modified in
<br />"lCiting as lDay be necessary to reflect such reduction. 1I0wever, any reduction
<br />in the contcact price due to defective subcontract data of a prospective
<br />subcontractor, when the subcontract was not subsequently awarded to such
<br />subcontractor, will be limited to the aJIlOunt (plus applicable overhead and
<br />profit markup) by which the actual subcontract, or actual cost to the
<br />Contractor if there was no subcontract, was les8 than the prospective
<br />subcontract cost estimate sublllitted by the Contractor, provided the actual
<br />subcontract price was not affected by defective cost or pricing data.
<br />Notel Since the contract is subject to reduction under this clause by reason
<br />of defective cost or pricing data submitted in connection with certain
<br />subcontracts, it is expected that the contractor .ay wish to include a clause
<br />1n each such subcontract requicilll} the subcontractor to appropriately
<br />indMnify the contractor. However. the inclusion of such a clause and the
<br />ter.s thereof are matters for negotiation and agreement between the contractor
<br />and the subcontractor. provided that they are consistent with OAR 2)-203
<br />relating to Disputes provisions in Subcontracts. It is also expected that any
<br />subcontractor subject to such indemnification will generally require
<br />substantially similar indelllnifIcation for defective cost or pricing data
<br />required to be submitted by his lower tier subcontractors. (OAR 7-104.29(b))
<br />
<br />or prospective subcontractor
<br />(11) or (lii) above, which was
<br />
<br />64. ^UDIT BY DEPARTMENT OF DEFENSE (1982 DEe)
<br />(The following clause is applicable unless this contract was entered into
<br />by formal advertising and is not in excess of $100,000)
<br />(a) General. The Contracting Officer or his representatives shall have
<br />the audit and inspection rights described in the applicable paragraphs (b).
<br />(c) and {d) below.
<br />(bl E:Jtamination of Costs. If this is a cost reimburselllent type,
<br />incentive, time and materials, labor hour, or price redeterminable contract,
<br />or any combination thereof, the COntractor shall maintain, and the Contracting
<br />Officer or his representatives shall have the right to examine books, records,
<br />documents, and other evidence and accounting procedures and practices,
<br />sufficient to reflect properly all direct and indirect costs of whatever
<br />nature claimed to have been incurred and anticipated to be incurred for the
<br />perfo[1llance of this contract. Such right of exalDination shall include
<br />inspection at all reasonable times of the Contractor's plants, or such parts
<br />thereof, as may be engaged In the pe~formance of this contract.
<br />lc) Cost or Pr icinq Data. If the Contracto~ submitted cost or pricing
<br />data in connection with the pricing of this contract or any change or
<br />modification thereto, unless such pricing was based on adequate price
<br />competition, established catalog or market prices of commercial items ~old in
<br />substantial quantities to the general public, or prices set by law or
<br />regulation, the Contracting Officer or his representatives who are employees
<br />of the United States Government shall have the right to exallline all books,
<br />records, documents and other data of the Contractor related to the
<br />negotiation, pricing or perfoulance of such contract, change 01' lllOdification,
<br />for the purpose of evaluating the accuracy, colllpleteness and currency of the
<br />cost or pricing data submitted. Additionally, in the case of pricing any
<br />change 01' modification to formally advertised contracts, the Comptroller
<br />General of the United States or his representatives who are employees of the
<br />United States Government shall ,lave such rights. The right of exaJlllination
<br />shall extend to all documents necessary to permit adequate evaluation of the
<br />cost or pricin<j data SUbmitted. along with the computations and projections
<br />used therein..
<br />(d) Reports. if the COntra::tor is required to furnish Contractor COst
<br />Data Reports (COlR) , COntract Fund Status Reports (CFSR), or Cost Performance
<br />Reports (CPR) the Contracting Officer or his representatives shall have the
<br />rl<jht to examine books. records, other documents. and supporting materials,
<br />for the purpose of evaluating (i) the effectiveness of the Contractor's
<br />policies and procedures to produce data compatible with the Objectives of
<br />these reports. and {iil the data reported.
<br />(el Availability. The lIIaterlah described in {bl, (cl and (d) above
<br />shall be made available at the office of the COntractor, at all reasonable
<br />times, for inspection, audit, or reproduction, until the expiration of three
<br />years fro. the date of final payment under this contract or such lesser time
<br />specified in Appendix H of the Defense ^cquisition Regulation, and for such
<br />longer period, if any, as is required by applicable statute, or by other
<br />clauses of this contract, or by (1) and (2) below I
<br />(1) If this contract is completely or partially terminated, the
<br />records relating to the work terminated shall be made available for a periOd
<br />of three years from the date of /lny resulting final settlement.
<br />(2) Records which relate to appeals under the -Disputes. clause of
<br />this contract, or litigation or the settlement of clahls arising out of the
<br />perfocp'ance of this contract, shall be made available until such appeals,
<br />litigation, or claims have been disposed of.
<br />(f) The Contractor shall insert a clause containing all the provisions of
<br />
<br />6l. INTEREST (1983 FEB)
<br />Notwithstanding any other provision of this contract, unless paid within
<br />thirty (l01 days, all aaaunts thftt become payable by the Contractor to the
<br />Government under this contract (net of any applicable tax credit under the
<br />Internal Revenue Code) shall bear simple interest from the date due until paid
<br />and shall be subject to adjustments as pr:ovided by Pal:t 6 of Appendix E of the
<br />Defense Acquisition Regulation, as in effect on the date of this contract.
<br />The interest rate shall be the rate, established by the Secretary of the
<br />Treasury as provided in Section 12 of the Contract Disputes Act of 1978
<br />(Public Law 95-563), which is applicable to the per iad in which the amount
<br />becomes due, as her:ein provided, and then at the rate applicable for six-month
<br />period as fixed by th.e Secretary until the alllount is paid. .\mounts shall be
<br />due upon the earliest one of (1) the date fixed pursuant to this contract,
<br />(1 i) the date of the first written demand for payment, consistent with this
<br />contract, including demand consequent upon default termination, (Hi) the date
<br />of transmittal by the GoverRfllent to the Contractor: of a proposed supplemental
<br />agreement to confiem cOlllpleted negotiation13 fixinq the alllount, or (lvl if this
<br />contract provides for revision of prices, the date of written notice to the
<br />Contractor stating the alllOunt of refund payable 1n connection with a pricing
<br />proposal or in connection with a negotiated pricinq agree_ent not confirmed by
<br />contract supplement. (DAR 7-104.39)
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<br />Cl Hay 8))
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<br />(l May &3)
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