**FAA Acquisition Management System Clauses**

**Change 1 - July 22, 1996**

This document transmits revisions, additions, and deletions to FAA
Acquisition Management System clauses and provisions. Unless otherwise
specified, these changes are effective July 22, 1996 and apply to all
screening information requests and contracts issued after July 22, 1996.

Revised or added clauses and provisions are denoted by JULY 1996 in the
title of the clause or provision.

**A. [CLAUSES REVISED]{.underline}**

The following summarizes clause revisions:

1\. [Clause 3.1-1, "Clauses and Provisions Incorporated by
Reference,"]{.underline} was revised to delete language referring to
availability of full text versions of FAA clauses in the Federal
Register. This revised clause was distributed separately on June 20,
1996 and the effective date was also June 20, 1996.

2\. [Clause 3.2.4-20, "Indefinite Quantity,"]{.underline} is revised to
state the minimum quantity *shall* be ordered, to delete the statement
that the contractor will not be entitled to an equitable adjustment if
the minimum quantity is not ordered, and to make minor editorial and
format changes.

3\. [Clause 3.4.1-10, "Insurance-Work on Federal Aviation Administration
Installation,"]{.underline} is revised to replace "Federal Aviation
Administration" with "Government" in the clause title and body, to add a
statement requiring the FAA contract number to be listed on the
insurance certificate, and to make minor format changes.

4\. [Clause 3.4.1-12, "Insurance,"]{.underline} is revised to add a
statement requiring the FAA contract number to be listed on the
insurance certificate, to revise the language regarding minimum limits
for general liability and automobile insurance, to add other categories
of insurance and applicable minimum limits, to make minor editorial and
format changes.

5\. [Clause 3.4.1-13, "Errors and Omissions,"]{.underline} is revised to
add a statement requiring the FAA contract number to be listed on the
insurance certificate, and to make minor format changes.

6\. [Clause 3.6.2-7, "Preaward On-Site Equal Opportunity Compliance
Review,"]{.underline} is revised to delete the language regarding
procedures for urgent requests, to make minor editorial and format
changes.

7\. [Clause 3.2.6-12, "Affirmative Action for Special Disabled and
Vietnam Era Veterans,"]{.underline} is revised to correct the clause
number to 3.6.2-12 and make minor format changes.

8\. [Clause 3.6.4-2, "Buy American Act-Supplies,"]{.underline} is
revised to add a definition of foreign offer, to add criteria for
evaluating the cost of foreign offers, to delete language regarding an
offeror's certification of domestic content, to remove the statement
regarding annulling the contract for violation of the offeror's
certification requirement of the clause, to make minor editorial and
format changes.

9\. [Clause 3.6.4-3, "Buy American Act-Construction
Material,"]{.underline} is revised to add language regarding exceptions
to the Buy American Act, to delete the language regarding notification
of foreign construction material to the Contracting Officer, and to make
minor editorial and format changes.

10\. [Clause 3.6.4-4, "Buy American Act-Construction Material under
Trade Agreements Act and North American Free Trade
Agreement,"]{.underline} is revised to change the clause title, to
delete the definition of designated country, to add a new definition for
unavailable construction material, to delete reference to Trade
Agreements Act, to add conditions when NAFTA country construction
material is exempt from Buy American Act, to delete the clause Alternate
I, and to make minor editorial and format changes.

[11. Clause 3.6.4-5, "Buy American-Steel and Manufactured
Products,"]{.underline} is revised to delete the language regarding
annulling the contract for violation of the offeror's certification
requirement of the clause, and to make minor format changes.

12\. [Clause 3.6.4-6, "Balance of Payments Program,"]{.underline} is
revised to add a statement regarding applicability to contracts outside
of the U.S., to delete the language regarding notifying the Contracting
Officer of foreign end products, to expand language pertaining to
evaluation of offers, and to make minor format changes.

13\. [Clause 3.6.4-8, "Buy American Act-North American Free Trade
Agreement Implementation Act-Balance of Payments Program,"]{.underline}
is revised to change the clause title, to add language regarding
evaluation of offers, to add language regarding NAFTA country
exemptions, to delete language regarding notifying the Contracting
Officer of foreign end products, and to make minor format changes.

14\. [Clause 3.1.10-15, "Changes-Construction, Dismantling, Demolition,
or Removal of Improvements,"]{.underline} is revised to correct the
clause number to 3.10.1-15, and to make minor format changes.

**B. [CLAUSES ADDED]{.underline}**

The following clauses are added:

1\. [Clause 3.2.5-11, "Drug Free Workplace,"]{.underline} was
inadvertently omitted from the version of FAA clauses dated April 1996,
and is being transmitted at this time. There are no revisions to this
clause; the effective date was May 20, 1996.

2\. [Clause 3.6.1-8, "Notification of Competition Limited to Eligible
SEDB Concerns,"]{.underline} is added to permit competition among
socially and economically disadvantaged business concerns only.

3\. [Clause 3.6.4-14, "Balance of Payments Program-Construction
Materials-NAFTA,"]{.underline} is added to implement NAFTA requirements
for construction contracts outside of the U.S..

4\. [Clause 3.6.4-15, "Buy American Act Certificate,"]{.underline} is
added to notify offerors of domestic content requirements and to allow
offeror's to disclose any non-domestic material.

5\. [Clause 3.6.4-16, "Balance of Payments Program
Certificate,"]{.underline} is added to notify offerors of domestic
content requirements and to allow offeror's to disclose any non-domestic
material.

6\. [Clause 3.6.4-17, "Buy American Act-NAFTA Implementation Act-Balance
of Payments Certificate,"]{.underline} is added to notify offerors of
domestic content requirements and to allow offeror's to disclose any
non-domestic material.

7\. [Clause 3.8.2-17, "Key Personnel and Facilities,"]{.underline} is
added to allow offerors to list any essential personnel or facilities.

8\. [Clause 3.10.1-19, "Modification Cost Proposal-Price Breakdown
(Construction),"]{.underline} was inadvertently omitted from the version
of FAA clauses dated April 1996, and is being transmitted at this time.
There are no revisions to this clause; the effective date was May 20,
1996.

9\. [Clause 3.10.1-20, "Warranty-Construction,"]{.underline} was
inadvertently omitted from the version of FAA clauses dated April 1996,
and is being transmitted at this time. There are no revisions to this
clause; the effective date was May 20, 1996.

10\. [Clause 3.10.1-22, "Contracting Officer's Technical
Representative,"]{.underline} is added to notify contractors of any
Government personnel who may assist with contract administration.

11\. [Clause 3.10.1-23, "Contracting Officer's
Representative-Construction Contracts,"]{.underline} is added to is
added to notify contractors of any Government personnel who may assist
with contract administration.

**C. [CLAUSES REMOVED]{.underline}**

The following clauses are removed and reserved:

1\. [Clause 3.6.4-7, "Buy American Act\--Trade Agreements\--Balance of
Payments Program,"]{.underline} is removed and reserved. The
requirements pertaining to non-discriminatory treatment of eligible
products in the Trade Agreements Act (except NAFTA requirements) no
longer apply to the FAA as a result of the World Trade Organization's
Government Procurement Agreement.

2\. [Clause 3.10.1-21, "Warranty - Small Construction
Contracts,"]{.underline} is removed and reserved. More desirable
warranty provisions are provided by clause 3.10.1-20,
"Warranty-Construction."

**D. [DISPOSITION OF THIS CHANGE]{.underline}**

The following clauses are deleted in their entirety and the attached
revised, or new, clauses are substituted, or added, as applicable:

**Delete** **Replace with**

[Clause]{.underline} [Dated]{.underline} [Clause]{.underline}
[Dated]{.underline}

3.1-1 April 1996 3.1-1 June 1996

3.2.4-20 April 1996 3.2.4-20 July 1996

\-\-- \-\-- 3.2.5-11 April 1996

3.4.1-10 April 1996 3.4.1-10 July 1996

3.4.1-12 April 1996 3.4.1-12 July 1996

3.4.1-13 April 1996 3.4.1-13 July 1996

\-\-- \-\-- 3.6.1-8 July 1996

3.6.2-7 April 1996 3.6.2-7 July 1996

3.2.6-12 April 1996 3.6.2-12 July 1996

3.6.4-2 April 1996 3.6.4-2 July 1996

3.6.4-3 April 1996 3.6.4-3 July 1996

3.6.4-4 April 1996 3.6.4-4 July 1996

3.6.4-5 April 1996 3.6.4-5 July 1996

3.6.4-6 April 1996 3.6.4-6 July 1996

3.6.4-7 April 1996 \-\-- \-\--

3.6.4-8 April 1996 3.6.4-8 July 1996

\-\-- \-\-- 3.6.4-1 4 July 1996

\-\-- \-\-- 3.6.4-15 July 1996

\-\-- \-\-- 3.6.4-16 July 1996

\-\-- \-\-- 3.8.2-17 July 1996

3.1.10-15 April 1996 3.10.1-15 July 1996

\-\-- \-\-- 3.10.1-19 April 1996

\-\-- \-\-- 3.10.1-20 April 1996

3.10.1-21 April 1996 \-\-- \-\--

\-\-- \-\-- 3.10.1-22 July 1996

\-\-- \-\-- 3.10.1-23 July 1996

**E. ATTACHMENT**

Revised and added clauses are attached to this change.

**Attachment**

**[Revised/Added Clauses]{.underline}**

3.1-1, Clauses and Provisions Incorporated by Reference

3.2.4-20, Indefinite Quantity

3.2.5-11, Drug Free Workplace

3.4.1-10, Insurance-Work on a Government Installation

3.4.1-12, Insurance

3.4.1-13, Errors and Omissions

3.6.1-8, "Notification of Competition Limited to Eligible SEDB Concerns

3.6.2-7, Preaward On-Site Equal Opportunity Compliance Review

3.6.2-12, Affirmative Action for Special Disabled and Vietnam Era
Veterans

3.6.4-2, Buy American Act-Supplies

3.6.4-3, Buy American Act-Construction Materials

3.6.4-4, Buy American Act-Construction Materials under North American
Free Trade Agreement

3.6.4-5, Buy American-Steel and Manufactured Products

3.6.4-6, Balance of Payments Program

3.6.4-8, Buy American Act-NAFTA Implementation Act-Balance of Payments
Program

3.6.4-14, Balance of Payments Program-Construction Materials-NAFTA

3.6.4-15, Buy American Act Certificate

3.6.4-16, Balance of Payments Program Certificate

3.6.4-17, Buy American Act-NAFTA Implementation Act-Balance of Payments
Certificate

3.8.2-17, Key Personnel and Facilities

3.10.1-15, Changes-Construction, Dismantling, Demolition, or Removal of
Improvements

3.10.1-19, Modification Cost Proposal-Price Breakdown (Construction)

3.10.1-20, Warranty-Construction

3.10.1-22, Contracting Officer's Technical Representative

3.10.1-23, Contracting Officer's Representative-Construction Contracts

3.1-1 Clauses and Provisions Incorporated by Reference

CLAUSES AND PROVISIONS INCORPORATED BY REFERENCE (JUNE 1996)

This screening information request (SIR) or contract, as applicable,
incorporates by reference one or more provisions or clauses with the
same force and effect as if they were given in full text. Upon request,
the Contracting Officer will make the full text available, or offerors
and contractors may obtain the full text via Internet from the Federal
Aviation Administration (FAA) home page (http://www.faa.gov).

*(End of clause)*

3.2.4-20 Indefinite Quantity

INDEFINITE QUANTITY (JULY 1996)

\(a\) This is an indefinite-quantity contract for the supplies or
services specified, and effective for the period stated, in the
Schedule. The quantities of supplies and services specified in the
Schedule are estimates only and are not purchased by this contract.

\(b\) Delivery or performance shall be made only as authorized by orders
issued in accordance with the "Ordering" clause. The Contractor shall
furnish to the Government, when and if ordered, the supplies or services
specified in the Schedule up to and including the quantity designated in
the Schedule as the maximum. The Government shall order at least the
quantity of supplies or services designated in the Schedule as the
minimum.

\(c\) Except for any limitations on quantities in the "Order
Limitations" clause or in the Schedule, there is no limit on the number
of orders that may be issued. The Government may issue orders requiring
delivery to multiple destinations or performance at multiple locations.

\(d\) Any order issued during the effective period of this contract and
not completed within that period shall be completed by the Contractor
within the time specified in the order. The contract shall govern the
Contractor\'s and Government\'s rights and obligations with respect to
that order to the same extent as if the order were completed during the
contract\'s effective period; provided, that the Contractor shall not be
required to make any deliveries under this contract after \_\_\_\_\_\_
\[insert date\].

(*End of clause*)

3.2.5-11 Drug Free Workplace

DRUG-FREE WORKPLACE (APRIL 1996)

\(a\) Definitions. As used in this clause,

"Controlled substance" means a controlled substance in schedules I
through V of section 202 of the Controlled Substances Act (21 U.S.C.
812) and as further defined in regulation at 21 CFR 1308.11 - 1308.15.

"Conviction" means a finding of guilt (including a plea of nolo
contendere) or imposition of sentence, or both, by any judicial body
charged with the responsibility to determine violations of the Federal
or State criminal drug statutes.

"Criminal drug statute" means a Federal or non-Federal criminal statute
involving the manufacture, distribution, dispensing, possession, or use
of any controlled substance.

"Drug-free workplace" means the site(s) for the performance of work done
by the Contractor in connection with a specific contract at which
employees of the Contractor are prohibited from engaging in the unlawful
manufacture, distribution, dispensing, possession, or use of a
controlled substance.

"Employee" means an employee of a Contractor directly engaged in the
performance of work under a Government contract.

"Directly engaged" is defined to include all direct cost employees and
any other Contractor employee who has other than a minimal impact or
involvement in contract performance.

"Individual" means an offeror/contractor that has no more than one
employee including the offeror/contractor.

\(b\) The Contractor, if other than an individual shall within 30
calendar days after award (unless a longer period is agreed to in
writing for contracts of 30 calendar days or more performance duration),
or as soon as possible for contracts of less than 30 calendar days
performance duration:

\(1\) Publish a statement notifying its employees that the unlawful
manufacture, distribution, dispensing, possession, or use of a
controlled substance is prohibited in the Contractor\'s workplace and
specifying the actions that will be taken against employees for
violations of such prohibition;

\(2\) Establish an ongoing drug-free awareness program to inform such
employees about:

\(i\) The dangers of drug abuse in the workplace;

\(ii\) The Contractor\'s policy of maintaining a drug-free workplace;

\(iii\) Any available drug counseling, rehabilitation, and employee
assistance programs; and

\(iv\) The penalties that may be imposed upon employees for drug abuse
violations occurring in the workplace;

\(3\) Provide all employees engaged in performance of the contract with
a copy of the statement required by subparagraph (b)(1) of this clause;

\(4\) Notify such employees in writing in the statement required by
subparagraph (b)(1) of this clause that, as a condition of continued
employment on this contract, the employee will:

\(i\) Abide by the terms of the statement; and

\(ii\) Notify the employer in writing of the employee\'s conviction
under a criminal drug statute for a violation occurring in the workplace
no later than 5 calendar days after such conviction.

\(5\) Notify the Contracting Officer in writing within 10 calendar days
after receiving notice under subdivision (b)(4)(ii) of this clause, from
an employee or otherwise receiving actual notice of such conviction. The
notice shall include the position title of the employee;

\(6\) Within 30 calendar days after receiving notice under subdivision
(b)(4)(ii) of this clause of a conviction, take one of the following
actions with respect to any employee who is convicted of a drug abuse
violation occurring in the workplace:

\(i\) Taking appropriate personnel action against such employee, up to
and including termination; or

\(ii\) Require such employee to satisfactorily participate in a drug
abuse assistance or rehabilitation program approved for such purposes by
a Federal, State, or local health, law enforcement, or other appropriate
agency.

\(7\) Make a good faith effort to maintain a drug-free workplace through
implementation of subparagraphs (b)(1) though (b)(6) of this clause.

\(c\) The Contractor, if an individual, agrees by award of the contract
or acceptance of a purchase order, not to engage in the unlawful
manufacture, distribution, dispensing, possession, or use of a
controlled substance in the performance of this contract.

\(d\) In addition to other remedies available to the Government, the
Contractor\'s failure to comply with the requirements of paragraphs (b)
or (c) of this clause may render the Contractor subject to suspension of
contract payments, termination of the contract for default, and
suspension or debarment.

*(End of clause)*

3.4.1-10 Insurance\--Work on Government Installation

INSURANCE\--WORK ON GOVERNMENT INSTALLATION (JULY 1996)

\(a\) The Contractor shall, at its own expense, provide and maintain
during the entire performance of this contract, at least the kinds and
minimum amounts of insurance required in the "Schedule" or elsewhere in
the contract.

\(b\) Before commencing work under this contract, the Contractor shall
certify to the Contracting Officer in writing by letter or certificate
of insurance, reflecting the FAA's contract number, that the required
insurance has been obtained. The policies evidencing required insurance
shall contain an endorsement to the effect that any cancellation or any
material change adversely affecting the Federal Aviation
Administration\'s interest shall not be effective (1) for such period as
the laws of the State in which this contract is to be performed
prescribe, or (2) until 30 days after the insurer or the Contractor
gives written notice to the Contracting Officer, whichever period is
longer.

\(c\) The Contractor shall insert the substance of this clause,
including this paragraph (c), in subcontracts under this contract that
require work on a Government installation and shall require
subcontractors to provide and maintain the insurance required in the
"Schedule" or elsewhere in the contract. The Contractor shall maintain a
copy of all subcontractors\' proofs of required insurance, and shall
make copies (reflecting the FAA's contract number to ensure proper
filing of documents) available to the Contracting Officer upon request.

*(End of clause)*

3.4.1-12 Insurance

INSURANCE (JULY 1996)

\(a\) During the term of this contract and any extension, the contractor
shall maintain at its own expense the insurance required by this clause.
Insurance companies shall be acceptable to the Federal Aviation
Administration. Policies shall include all terms and provisions required
by the Federal Aviation Administration.

\(b\) The contractor shall maintain and furnish evidence of the
following insurance, with the stated minimum limits:

\(1\) Worker's Compensation and Employer's Liability. The contractor
shall comply with applicable Federal and State workers' compensation and
occupational disease statutes. The contractor shall maintain employer's
liability coverage of at least \$100,000, except in States with
exclusive or monopolistic funds that do not permit worker's compensation
to be written by private carriers.

\(2\) General Liability. The contractor shall maintain bodily injury
general liability insurance written on a comprehensive form of policy of
at least \$100,000\* per person and \$500,000\* per occurrence. Property
damage limits, if any, will be set forth elsewhere in the "Schedule."

\(3\) Automobile Liability. If automobiles will be used in connection
with performance of this contract, the contractor shall maintain
automobile liability insurance written on a comprehensive form of policy
with coverage of at least \$200,000\* per person and \$500,000\* per
occurrence for bodily injury and \$20,000\* per occurrence for property
damage.

\(4\) Aircraft Liability. If aircraft will be used in connection with
performance of this contract, the contractor shall maintain aircraft
public and passenger liability insurance with coverage of at least
\$200,000\* per person and \$500,000\* per occurrence for bodily injury
other than passenger liability, and \$200,000\* per occurrence for
property damage. Coverage for passenger liability bodily injury shall be
at least \$200,000\* multiplied by the number of seats or passengers,
whichever is greater.

\(5\) Watercraft Liability When watercraft will be used in connection
with performing the contract, the contractor shall provide watercraft
liability insurance. Limits shall be at least \$1,000,000\* per
occurrence. The policy shall include coverage for owned, non-owned and
hired watercraft.

\(6\) Environmental Impairment Liability. When the contract may involve
hazardous wastes, the contractor shall provide environmental impairment
liability insurance with coverage of at least \$1,000,000\* bodily
injury per occurrence and \$1,000,000\* property damage per occurrence.
Such insurance shall include coverage for the clean up, removal,
storage, disposal, transportation, and use of pollutants.

\(7\) Medical Malpractice. When the contract will involve health care
services, the contractor shall maintain medical malpractice liability
insurance with coverage of at least \$500,000\* per occurrence.

\(c\) Each policy shall include substantially the following provision:

"It is a condition of this policy that the company furnish written
notice to the U.S. Federal Aviation Administration 30 days in advance of
the effective date of any reduction in or cancellation of this policy."

\(d\) The contractor shall furnish a certificate of insurance or, if
required by the Contracting Officer, true copies of liability policies
and manually countersigned endorsements of any changes, including the
FAA's contract number to ensure proper filing of documents. Insurance
shall be effective, and evidence of acceptable insurance furnished,
before beginning performance under this contract. Evidence of renewal
shall be furnished not later than five days before a policy expires.

\(e\) The maintenance of insurance coverage as required by this clause
is a continuing obligation, and the lapse or termination of insurance
coverage without replacement coverage being obtained will be grounds for
termination for default.

\*Unless modified in the "Schedule"

(*End of clause)*

3.4.1-13 Errors and Omissions

ERRORS AND OMISSIONS (JULY 1996)

\(a\) The contractor warrants that it is insured for \$200,000 (unless
another amount is set forth in the "Schedule") for errors and omissions
per claim in an amount in excess of the minimum set forth in the
"Schedule" in the performance of this contract.

\(b\) Unless the contractor's policy is prepaid, noncancelable, and
issued for a period at least equal to the term of this contract on an
occurrence basis, the contractor must have the policy amended to include
substantially the following provision:

"It is a condition of this policy that the company furnish written
notice to the U.S. Federal Aviation Administration 30 days in advance of
the effective date of any reduction in or cancellation of this policy."

\(c\) The contractor must furnish a certificate of insurance or, if
required by the Contracting Officer, true copies of liability policies
and manually countersigned endorsements of any changes, including the
FAA's contract number to ensure proper filing of documents.. Insurance
must be effective, and evidence of acceptable insurance furnished,
before beginning performance under this contract. Evidence of renewal
must be furnished not later than five days before a policy expires

(*End of clause)*

3.6.1-8 Notification of Competition Limited to Eligible SEDB Concerns

NOTIFICATION OF COMPETITION LIMITED TO

ELIGIBLE SEDB CONCERNS (JULY 1996)

\(a\) Offers are solicited only from "eligible socially and economically
disadvantaged business (SEDB)" concerns. As used herein, an "eligible
SEDB" concern is a small business concern expressly certified by the
Small Business Administration (SBA) for participation in the SBA's 8(a)
program and which meets the following criteria at the time of submission
of offer:

\(1\) SIC code \_\_\_\_\_\_\_\_\_ \[insert SIC code assigned to the
acquisition by the contracting activity\] is specifically included in
the offeror's approved business plan;

\(2\) The offeror is in conformance with the 8(a) support limitation set
forth in its approved business plan; and

\(3\) The offeror is in conformance with the Business Activity Targets
set forth in its approved business plan or any remedial action direct by
the SBA.

\(b\) By submission of its offer, the offeror certifies that it meets
all of the criteria set forth in paragraph (a) of this clause.

(c)(1) Agreement. A manufacturer or regular dealer submitting an offer
in its own name agrees to furnish, in performing the contract, only end
items manufactured or produced by small business concerns inside the
United States, its territories or possessions, the Commonwealth of
Puerto Rico, or the Trust Territory of the Pacific Islands. However ,
this requirement does not apply in connection with construction or
service contracts.

\(2\) The \_\_\_\_\_\_\_\_\_\_\_\_\_\[insert name of contractor\] will
notify the \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\[insert name of contracting
agency\] Contracting Officer in writing immediately upon entering an
agreement (either oral or written) to transfer all or part of its stock
or other ownership interest to any other party.

*(End of clause)*

3.6.2-7 Preaward On-Site Equal Opportunity Compliance Review

PREAWARD ON-SITE EQUAL OPPORTUNITY COMPLIANCE REVIEW (JULY 1996)

An award in the amount of \$1 million or more will not be made under
this screening information request unless the offeror and each of its
known first-tier subcontractors (to whom it intends to award a
subcontract of \$1 million or more are found, on the basis of a
compliance review, to be able to comply with the provisions of the
"Equal Opportunity" clause of this screening information request.

*(End of provision)*

3.6.2-12 Affirmative Action for Special Disabled and Vietnam Era
Veterans

AFFIRMATIVE ACTION FOR SPECIAL DISABLED AND

VIETNAM ERA VETERANS (JULY 1996)

\(a\) Definitions.

\(1\) "Appropriate office of the State employment service system," as
used in this clause, means the local office of the Federal-State
national system of public employment offices assigned to serve the area
where the employment opening is to be filled, including the District of
Columbia, Guam, Puerto Rico, Virgin Islands, American Samoa, and the
Trust Territory of the Pacific Islands.

\(2\) "Openings that the Contractor proposes to fill from within its own
organization," as used in this clause, means employment openings for
which no one outside the Contractor\'s organization (including any
affiliates, subsidiaries, and the parent companies) will be considered
and includes any openings that the Contractor proposes to fill from
regularly established \'recall\' lists.

\(3\) "Openings that the Contractor proposes to fill under a customary
and traditional employer-union hiring arrangement," as used in this
clause, means employment openings that the Contractor proposes to fill
from union halls, under their customary and traditional employer-union
hiring relationship.

\(4\) "Suitable employment openings," as used in this clause\--(1)
Includes, but is not limited to, openings that occur in jobs categorized
as\--(i) Production and nonproduction; (ii) Plant and office; (iii)
Laborers and mechanics; (iv) Supervisory and nonsupervisory; (v)
Technical; and (vi) Executive, administrative, and professional
positions compensated on a salary basis of less than \$25,000 a year;
and (2) Includes full-time employment, temporary employment of over 3
days, and part-time employment, but not openings that the Contractor
proposes to fill from within its own organization or under a customary
and traditional employer-union hiring arrangement, nor openings in an
educational institution that are restricted to students of that
institution.

\(b\) General.

\(1\) Regarding any position for which the employee or applicant for
employment is qualified, the Contractor shall not discriminate against
the individual because the individual is a special disabled or Vietnam
Era veteran. The Contractor agrees to take affirmative action to employ,
advance in employment and otherwise treat qualified special disabled and
Vietnam Era veterans without discrimination based upon their disability
or veterans\' status in all employment practices such as\--(i)
Employment; (ii) Upgrading; (iii) Demotion or transfer; (iv)
Recruitment; (v) Advertising; (vi) Layoff or termination; (vii) Rates of
pay or other forms of compensation; and (viii) Selection for training,
including apprenticeship.

\(2\) The Contractor agrees to comply with the rules, regulations, and
relevant orders of the Secretary of Labor (Secretary) issued under the
Vietnam Era Veterans\' Readjustment Assistance Act of 1972 (the Act), as
amended.

\(c\) Listing openings.

\(1\) The Contractor agrees to list all suitable employment openings
existing at contract award or occurring during contract performance, at
an appropriate office of the State employment service system in the
locality where the opening occurs. These openings include those
occurring at any Contractor facility, including one not connected with
performing this contract. An independent corporate affiliate is exempt
from this requirement.

\(2\) State and local government agencies holding Federal contracts of
\$10,000 or more shall also list all their suitable openings with the
appropriate office of the State employment service.

\(3\) The listing of suitable employment openings with the State
employment service system is required at least concurrently with using
any other recruitment source or effort and involves the obligations of
placing a bona fide job order, including accepting referrals of veterans
and nonveterans. This listing does not require hiring any particular job
applicant or hiring from any particular group of job applicants and is
not intended to relieve the Contractor from any requirements of
Executive orders or regulations concerning nondiscrimination in
employment.

\(4\) Whenever the Contractor becomes contractually bound to the listing
terms of this clause, it shall advise the State employment service
system, in each State where it has establishments, of the name and
location of each hiring location in the State. As long as the Contractor
is contractually bound to these terms and has so advised the State
system, it need not advise the State system of subsequent contracts. The
Contractor may advise the State system when it is no longer bound by
this contract clause.

\(5\) Under the most compelling circumstances, an employment opening may
not be suitable for listing, including situations when (i) the
Government\'s needs cannot reasonably be supplied, (ii) listing would be
contrary to national security, or (iii) the

requirement of listing would not be in the Government\'s interest.

\(d\) Applicability.

\(1\) This clause does not apply to the listing of employment openings
which occur and are filled outside the 50 States, the District of
Columbia, Puerto Rico, Guam, Virgin Islands, American Samoa, and the
Trust Territory of the Pacific Islands.

\(2\) The terms of paragraph (c) above of this clause do not apply to
openings that the Contractor proposes to fill from within its own
organization or under a customary and traditional employer-union hiring
arrangement. This exclusion does not apply to a particular opening once
an employer decides to consider applicants outside of its own
organization or employer-union arrangement for that opening.

\(e\) Postings.

\(1\) The Contractor agrees to post employment notices stating (i) the
Contractor\'s obligation under the law to take affirmative action to
employ and advance in employment qualified special disabled veterans and
veterans of the Vietnam era, and (ii) the rights of applicants and
employees.

\(2\) These notices shall be posted in conspicuous places that are
available to employees and applicants for employment. They shall be in a
form prescribed by the Director, Office of Federal Contract Compliance
Programs, Department of Labor (Director), and provided by or through the
Contracting Officer.

\(3\) The Contractor shall notify each labor union or representative of
workers with which it has a collective bargaining agreement or other
contract understanding, that the Contractor is bound by the terms of the
Act, and is committed to take affirmative action to employ, and advance
in employment, qualified special disabled and Vietnam Era veterans.

\(f\) Noncompliance. If the Contractor does not comply with the
requirements of this clause, appropriate actions may be taken under the
rules, regulations, and relevant orders of the Secretary issued pursuant
to the Act.

\(g\) Subcontracts. The Contractor shall include the terms of this
clause in every subcontract or purchase order of \$10,000 or more unless
exempted by rules, regulations, or orders of the Secretary. The
Contractor shall act as specified by the Director to enforce the terms,
including action for noncompliance

ALTERNATE I

Add the following as a preamble to the basic clause:

Notice: The following term(s) of this clause are waived for this
contract: \[List term(s).\]

*(End of clause)*

3.6.4-2 Buy American Act\--Supplies

BUY AMERICAN ACT\--SUPPLIES (JULY 1996)

\(a\) The Buy American Act (41 U.S.C. 10) and Executive Order No. 10582,
dated December 17, 1954, as amended, provide that the Government give
preference to domestic end products.

\(b\) Definitions:

\(1\) "Components," as used in this clause, means those articles,
materials, and supplies incorporated directly into the end products.

\(2\) "Domestic end product," as used in this clause, means (1) an
unmanufactured end product mined or produced in the United States, or
(2) an end product manufactured in the United States, if the cost of its
components mined, produced, or manufactured in the United States exceeds
50 percent of the cost of all its components. Components of foreign
origin of the same class or kind as the products referred to in
subparagraphs (c)(2) or (3) of this clause shall be treated as domestic.
Scrap generated, collected, and prepared for processing in the United
States is considered domestic.

\(3\) "End products," as used in this clause, means those articles,
materials, and supplies to be acquired for public use under this
contract.

\(4\) "Foreign offer," as used in this clause, means an offered price
for a foreign end product, including transportation to destination and
duty (whether or not a duty free entry certificate is issued).

\(c\) The Contractor shall deliver only domestic end products, except
those\--

\(1\) For use outside the United States;

\(2\) That the FAA determines are not mined, produced, or manufactured
in the United States in sufficient and reasonably available commercial
quantities of a satisfactory quality;

\(3\) For which the FAA determines that domestic preference would be
inconsistent with the public interest; or

\(4\) For which the FAA determines the cost to be unreasonable.

\(i\) Unless the FAA determines otherwise, the offered price of a
domestic end product is unreasonable when the lowest acceptable domestic
offer exceeds the lowest acceptable foreign offer, inclusive of duty,
by:

\(A\) More than 6 percent, if a domestic offer is from a large business
that is not a labor surplus area concern; or

\(B\) More than 12 percent, if a domestic offer is from a small business
concern or any labor surplus area concern.

\(ii\) The evaluation in subparagraph (i) above shall be applied on an
item by item basis or to any group of items on which award may be made,
as specifically provided by the screening information request.

\(iii\) If an award of more than \$250,000 would be made to a domestic
concern if the 12 percent factor were applied, but not if the 6 percent
factor were applied, the FAA will decide whether award to the domestic
concern would involve unreasonable cost.

(*End of clause*)

3.6.4-3 Buy American Act\--Construction Materials

BUY AMERICAN ACT\--CONSTRUCTION MATERIALS (JULY 1996)

\(a\) The Buy American Act (41 U.S.C. 10) and Executive Order No. 10582,
dated December 17, 1954, as amended, provide that the Government give
preference to domestic construction material. The restrictions of the
Buy American Act do not apply when the FAA determines use of a
particular domestic construction material: (i) would unreasonably
increase the cost; (ii) would be impracticable; or (iii) is not mined,
produced, or manufactured in sufficient and reasonably available
commercial quantities of a satisfactory quality.

\(b\) Definitions:

\(1\) "Components," as used in this clause, means those articles,
materials, and supplies incorporated directly into construction
materials.

\(2\) "Construction material," as used in this clause, means an article,
material, or supply brought to the construction site for incorporation
into the building or work. Construction material also includes an item
brought to the site pre-assembled from articles, materials or supplies.
However, emergency life safety systems, such as emergency lighting, fire
alarm, and audio evacuation systems, which are discrete systems
incorporated into a public building or work and which are produced as a
complete system, shall be evaluated as a single and distinct
construction material regardless of when or how the individual parts or
components of such systems are delivered to the construction site.

\(3\) "Domestic construction material," as used in this clause, means
(i) an unmanufactured construction material mined or produced in the
United States, or (ii) a construction material manufactured in the
United States, if the cost of its components mined, produced, or
manufactured in the United States exceeds 50 percent of the cost of all
its components. Components of foreign origin of the same class or kind
as the construction materials determined to be unavailable shall be
treated as domestic.

\(c\) The Contractor agrees that only domestic construction material
will be used by the Contractor, subcontractors, material men, and
suppliers in the performance of this contract, except for foreign
construction materials, if any, listed in this contract.

(*End of clause*)

3.6.4-4 Buy American Act\--Construction Materials Under North American
Free Trade Agreement

BUY AMERICAN ACT\--CONSTRUCTION MATERIALS UNDER NORTH AMERICAN FREE
TRADE AGREEMENT (JULY 1996)

\(a\) Definitions. As used in the clause\--

\(1\) "Components" means those articles, materials, and supplies
incorporated directly into construction materials.

\(2\) "Construction material" means an article, material, or supply
brought to the construction site for incorporation into the building or
work. Construction material also includes an item brought to the site
pre-assembled from articles, materials, or supplies. However, emergency
life safety systems, such as emergency lighting, fire alarm, and audio
evacuation systems, which are discrete systems incorporated into a
public building or work and which are produced as a complete system,
shall be evaluated as a single and distinct construction material
regardless of when or how the individual parts or components of such
systems are delivered to the construction site.

\(3\) "Domestic construction material" means (1) an unmanufactured
construction material mined or produced in the United States, or (2) a
construction material manufactured in the U.S., if the cost of its
components mined, produced, or manufactured in the United States exceeds
50 percent of the cost of all its components. Components of foreign
origin of the same class or kind as the construction materials
determined to be unavailable shall be treated as domestic.

\(4\) "North American Free Trade Agreement (NAFTA) country" means Canada
or Mexico.

\(5\) "NAFTA country construction material" means a construction
material that (1) is wholly the growth, product, or manufacture of a
NAFTA country, or (2) in the case of a construction material which
consists in whole or in part of materials from another country or
instrumentality, has been substantially transformed in a NAFTA country
into a new and different construction material distinct from the
materials from which it was transformed.

\(6\) "Unavailable construction materials," as determined by the FAA,
means those articles, materials, and supplies not mined produced, or
manufactured in the United States in sufficient and reasonably available
commercial quantities of a satisfactory quality (upon request, the
Contracting Officer will provide lists of articles, materials, and
supplies excepted from the Buy American Act).

\(b\) The Buy American Act (41 U.S.C. 10) provides that the Government
give preference to domestic material. In addition, the North American
Free Trade Agreement (NAFTA), provides that NAFTA construction materials
are exempted from application of the Buy American Act when:

\(1\) The acquisition value of the construction contract is \$6,500,000
or more; and

\(2\) NAFTA country construction material will be used.

\(c\) The Contractor agrees that only domestic construction materials,
or NAFTA country construction materials will be used by the Contractor,
subcontractors, material men and suppliers in the performance of this
contract, except for other foreign construction materials, if any,
listed in this contract.

(*End of clause*)

3.6.4-5 Buy American\--Steel and Manufactured Products

BUY AMERICAN\--STEEL AND MANUFACTURED PRODUCTS (JULY 1996)

\(a\) Section 9129 of the Aviation Safety and Capacity Expansion Act of
1990 (Subtitle B of Title IX of Pub. L. 101-508, the Omnibus Budget
Reconciliation Act of 1990) requires the use of steel and manufactured
products produced in the United States when a project such as that
covered by this contract receives funding.

\(b\) The Contractor shall deliver only steel and manufactured products
produced in the United States. This requirement shall not apply where
the Secretary or his or her designee has found\--

\(1\) That its application would be inconsistent with the public
interest;

\(2\) That such materials are not produced in the United States in
sufficient and reasonably available quantities and of a satisfactory
quality;

\(3\) In the case of the procurement of facilities and equipment under
the Airport and Airway Improvement Act of 1982, (i) the cost of
components and subcomponents which are produced in the United States is
more than 60 percent of the cost of all components to be delivered under
this contract, and (ii) final assembly of the facility or equipment to
be delivered under this contract has taken place in the United States;
or

\(4\) That inclusion of domestic material will increase the cost of the
overall contract by more than 25 percent.

\(c\) In calculating components\' costs, labor costs involved in final
assembly shall not be included in the calculation.

\(d\) This clause takes precedence over the provisions of clause "Buy
American Act\--Supplies" and clause "Buy American Act\--Construction
Materials" in respect to their applicability to steel and manufactured
products.

\(e\) The offeror warrants that steel and manufactured products to be
used in the project are produced in the United States, and that
components of unknown origin are considered to have been produced or
manufactured outside the United States. Should any end product be of
foreign origin, the Contractor shall identify, in writing, such products
and country of origin to the Contracting Officer prior to contract
award. Such information is required in implementation of Section 9129 of
the Aviation Safety and Capacity Expansion Act of 1990, (Subtitle B of
Title IX of P. L. 101‑508, the Omnibus Budget Reconciliation Act of
1990).

(*End of clause*)

3.6.4-6 Balance of Payments Program

BALANCE OF PAYMENTS PROGRAM (JULY 1996)

\(a\) This clause, which applies to contracts for use outside of the
United States, implements the Balance of Payments Program by providing a
preference for domestic end products or services over foreign end
products or services.

\(b\) Definition:

\(1\) "Components," as used in this clause, means those articles,
materials, and supplies directly incorporated into the end products.

\(2\) "Domestic end product," as used in this clause, means:

\(i\) An unmanufactured end product mined or produced in the United
States; or

\(ii\) An end product manufactured in the United States, if the cost of
its components mined, produced, or manufactured in the United States
exceeds 50 percent of the cost of all its components. Components of
foreign origin of the same class or kind as those that the agency
determines are not mined, produced, or manufactured in the United States
in sufficient reasonably available commercial quantities of a
satisfactory quality shall be treated as domestic. Components of unknown
origin shall be considered foreign. Scrap generated, collected, and
prepared for processing in the United States is considered domestic.

\(3\) "Domestic services," as used in this clause, means services
performed in the United States. If services provided under a single
contract are performed both in and outside the United States, they shall
be considered domestic if 25 percent or less of their total cost is
attributable to services (including incidental supplies used in
connection with these services) performed outside the United States.

\(4\) "End product," as used in this clause, means an article, material,
or supply acquired for public use under this contract.

\(5\) "Foreign end product," as used in this clause, means a product
other than a domestic end product.

\(c\) The Contractor agrees that there will be delivered under this
contract only domestic end products or services unless, in its offer, it
specified delivery of foreign end products or services in the provision
"Balance of Payments Program Certificate." . An offer based on supplying
a foreign end product or service, if accepted, will permit the
Contractor to supply a product or service without regard to the
requirements of this clause.

\(d\) Offers will be evaluated in accordance with the following. Each
offer of an end product other than a domestic end product shall be
increased by 50 percent. If this procedure results in a tie between a
foreign offer as evaluated and a domestic offer, the domestic offer
shall be considered the successful offer. Any domestic end product offer
that exceeds such evaluated other end product shall be considered
unreasonable in cost or inconsistent with the public interest.

(*End of clause*)

3.6.4-7 RESERVED

3.6.4-8 Buy American Act\--NAFTA Implementation Act\--Balance of
Payments Program

BUY AMERICAN ACT\--NAFTA IMPLEMENTATION ACT\--

BALANCE OF PAYMENTS PROGRAM (JULY 1996)

\(a\) Definitions. As used in this clause\--

\(1\) "Components" means those articles, materials, and supplies
incorporated directly into the end products. Domestic end product means
(i) an unmanufactured end product mined or produced in the United
States, or (ii) an end product manufactured in the United States, if the
cost of its components mined, produced, or manufactured in the United
States exceeds 50 percent of the cost of all its components. A component
shall also be considered to have been mined, produced, or manufactured
in the United States (regardless of its source in fact) if the end
product in which it is incorporated is manufactured in the United States
and the component is of a class or kind (i) determined by the
Government, to be not mined, produced, or manufactured in the United
States in sufficient and reasonably available commercial quantities of a
satisfactory quality, or (ii) to which the agency head concerned has
determined that it would be inconsistent with the public interest to
apply the restrictions of the Buy American Act.

\(2\) "End products" means those articles, materials, and supplies to be
acquired under this contract for public use.

\(3\) "Foreign end product" means an end product other than a domestic
end product.

\(4\) "North American Free Trade Agreement (NAFTA) country" means Canada
or Mexico.

\(5\) "NAFTA country end product" means an article that (i) is wholly
the growth, product, or manufacture of a NAFTA country, or (ii) in the
case of an article which consists in whole or in part of materials from
another country or instrumentality, has been substantially transformed
in a NAFTA country into a new and different article of commerce with a
name, character, or use distinct from that of the article or articles
from which it was transformed. The term refers to a product offered for
purchase under a supply contract, but for purposes of calculating the
value of the end product includes services (except transportation
services) incidental to its supply; provided, that the value of those
incidental services does not exceed that of the product itself.

\(b\) This clause implements the Buy American Act (41 U.S.C. 10), the
North American Free Trade Agreement Implementation Act (Pub. L. 103-182,
107 Stat. 2057), and the Balance of Payments Program by providing a
preference for domestic end products over foreign end products, except
for certain foreign end products which meet the requirements for
classification as NAFTA country end products.

\(c\) The Contracting Officer has determined that the NAFTA applies to
this acquisition. Unless otherwise specified, the Acts apply to all
items in the schedule. The Contractor agrees to deliver under this
contract only domestic end products unless in its offer, it specifies
delivery of foreign end products in the provision "Buy American
Act-North American Free Trade Agreement Implementation Act-Balance of
Payments Program Certificate." An offer based on supplying a NAFTA
country end product requires the Contractor to supply a NAFTA country
end product or, at the Contractor's option, a domestic end product.

\(d\) The restrictions of the Buy American Act or the Balance of
Payments Program will be applied to foreign offers, except as follows:

\(1\) Canadian end products under supply contracts with an estimated
value above \$25,000 and Mexican end products under supply contracts
with an estimated value above \$50,000.

\(2\) NAFTA country construction materials under construction contracts
with an estimated acquisition value of \$6,500,000 or more.

(*End of clause*)

3.6.4-14 Balance of Payments Program\--Construction Material\--NAFTA

BALANCE OF PAYMENTS PROGRAM\--CONSTRUCTION MATERIAL\--NAFTA (JULY 1996)

\(a\) This clause applies to construction contracts outside of the
United States.

\(b\) Definitions. As used in this clause:

\(1\) "Construction material," as used in this clause, means an article,
material, or supply brought to the construction site for incorporation
into the building or work. Construction material also includes an item
brought to the site pre-assembled from articles, materials or supplies.
However, emergency life safety systems, such as emergency lighting, fire
alarm, and audio evacuation systems, which are discrete systems
incorporated into a public building or work and which are produced as a
complete system, shall be evaluated as a single and distinct
construction material regardless of when or how the individual parts or
components of such systems are delivered to the construction site.

\(2\) "Domestic construction material," as used in this clause, means
(i) an unmanufactured construction material mined or produced in the
United States, or (ii) a construction material manufactured in the
United States, if the cost of its components mined, produced, or
manufactured in the United States exceeds 50 percent of the cost of all
its components. Components of foreign origin of the same class or kind
as the construction materials determined to be unavailable shall be
treated as domestic.

\(3\) "NAFTA country construction material" means a construction
material that (a) is wholly the growth, product, or manufacture of a
NAFTA country in the case of a construction material which consists in
whole or in part of materials from another country or instrumentality,
has been substantially transformed in a designated country into a new
and different construction material distinct from the materials from
which it was transformed.

\(4\) "North American Free Trade Agreement (NAFTA) country" means Canada
or Mexico.

\(5\) "Unavailable construction materials," as determined by the FAA,
are those articles, materials, and supplies not mined produced, or
manufactured in the United States in sufficient and reasonably available
commercial quantities of a satisfactory quality (upon request, the
Contracting Officer will provide lists of articles, materials, and
supplies excepted from the Buy American Act).

\(c\) The Balance of Payments Program provides that the FAA give
preference to domestic construction material.

\(d\) The Contractor agrees that only domestic construction material or
NAFTA country construction material will be used by the Contractor,
subcontractors, material men, and suppliers in the performance of this
contract, except for any nondomestic material, if any, listed in this
contract.

(*End of clause*)

3.6.4-15 Buy American Act Certificate

BUY AMERICAN ACT CERTIFICATE (JULY 1996)

\(a\) The offeror certifies that each end product, except as listed
below, is a domestic end product (as defined in the clause "Buy American
Act-Supplies,") and components of unknown origin are considered to have
been mined, produced, or manufactured outside the United States.

Excluded End Product Country of Origin

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

\[list as necessary\]

\(b\) The offeror agrees to furnish any additional information as the
Contracting Officer may request to verify the above information and to
evaluate the offer. Offerors may obtain from the Contracting Officer
lists of articles, materials, and supplies excepted from the Buy
American Act.

*(End of provision)*

3.6.4-16 Balance of Payments Program Certificate

BALANCE OF PAYMENTS PROGRAM CERTIFICATE (JULY 1996)

\(a\) The offeror certifies that each end product or service, except as
listed below, is a domestic end product or service (as defined in the
clause "Balance of Payments Program") and components of unknown origin
are considered to have been mined, produced, or manufactured outside the
United States.

Excluded End Product Country of Origin

or Service

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

\[list as necessary\]

\(b\) The offeror agrees to furnish any additional information as the
Contracting Officer may request to verify the above information and to
evaluate the offer. Offerors may obtain from the Contracting Officer
lists of articles, materials, and supplies excepted from the Buy
American Act.

*(End of provision)*

3.6.4-17 Buy American Act\--NAFTA Implementation Act\--Balance of
Payments Certificate

BUY AMERICAN ACT\--NAFTA IMPLEMENTATION ACT\--BALANCE OF PAYMENTS

CERTIFICATE (JULY 1996)

\(a\) The offeror certifies that each end product or service, except as
listed below, is a domestic end product or service (as defined in the
clause "Buy American Act-NAFTA Implementation Act-Balance of Payments
Program") and components of unknown origin are considered to have been
mined, produced, or manufactured outside the United States.

Excluded End Product Country of Origin

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

\[list as necessary\]

\(b\) Under certain circumstances, offers of North American Free Trade
Agreement (NAFTA) country end products (as defined in the clause "Buy
American Act-North American Free Trade Agreement Act Implementation
Act-Balance of Payments") will be given the same preference as domestic
end products. To obtain this preference, offerors must identify below
those end products that are NAFTA country end products. Products that
are not identified and certified below will not be deemed NAFTA country
end products

Excluded End NAFTA Country of Origin

Product

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

\[list as necessary\]

\(c\) The offeror agrees to furnish any additional information as the
Contracting Officer may request to verify the above information and to
evaluate the offer. Offerors may obtain from the Contracting Officer
lists of articles, materials, and supplies excepted from the Buy
American Act.

*(End of provision)*

3.8.2-17 Key Personnel and Facilities

KEY PERSONNEL AND/OR FACILITIES (JULY 1996)

\(a\) The personnel and/or facilities as specified below are considered
essential to the work being performed hereunder and may, with the
consent of the contracting parties, be changed from time to time during
the course of the contract.

\(b\) Prior to removing, replacing, or diverting any of the specified
personnel and/or facilities, the Contractor shall notify in writing, and
receive consent from, the Contracting Officer reasonably in advance of
the action and shall submit justification (including proposed
substitutions) in sufficient detail to permit evaluation of the impact
on this contract.

\(c\) No diversion shall be made by the Contractor without the written
consent of the Contracting Officer.

\(d\) The key personnel and/or facilities under this contract are:

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

\[List key personnel and/or facilities\]

*(End of clause)*

3\. 10.1-15 Changes\--Construction, Dismantling, Demolition, or Removal
of Improvements

CHANGES\--CONSTRUCTION, DISMANTLING, DEMOLITION, OR REMOVAL OF
IMPROVEMENTS (JULY 1996)

\(a\) The Contracting Officer may, at any time, without notice to the
sureties, if any, by written order designated or indicated to be a
change order, make changes in the work within the general scope of the
contract, including changes-

\(1\) In the specifications (including drawings and designs);

\(2\) In the method or manner of performance of the work;

\(3\) In the Government-furnished facilities, equipment, materials,
services, or site; or

\(4\) Directing acceleration in the performance of the work.

\(b\) Any other written or oral order (which, as used in this paragraph
(b), includes direction, instruction, interpretation, or determination)
from the Contracting Officer that causes a change shall be treated as a
change order under this clause; provided, that the Contractor gives the
Contracting Officer written notice stating (1) the date, circumstances,
and source of the order and (2) that the Contractor regards the order as
a change order.

\(c\) Except as provided in this clause, no order, statement, or conduct
of the Contracting Officer shall be treated as a change under this
clause or entitle the Contractor to an equitable adjustment.

\(d\) If any change under this clause causes an increase or decrease in
the Contractor\'s cost of, or the time required for, the performance of
any part of the work under this contract, whether or not changed by any
such order, the Contracting Officer shall make an equitable adjustment
and modify the contract in writing. However, except for an adjustment
based on defective specifications, no adjustment for any change under
paragraph (b) of this clause shall be made for any costs incurred more
than 20 days before the Contractor gives written notice as required. In
the case of defective specifications for which the Government is
responsible, the equitable adjustment shall include any increased cost
reasonably incurred by the Contractor in attempting to comply with the
defective specifications.

\(e\) The Contractor must assert its right to an adjustment under this
clause within 30 days after (1) receipt of a written change order under
paragraph (a) of this clause or (2) the furnishing of a written notice
under paragraph (b) of this clause, by submitting to the Contracting
Officer a written statement describing the general nature and amount of
proposal, unless this period is extended by the Government. The
statement of proposal for adjustment may be included in the notice under
paragraph (b) above.

\(f\) No proposal by the Contractor for an equitable adjustment shall be
allowed if asserted after final payment under this contract.

(*End of clause*)

3.10.1-19 Modification Cost Proposal - Price Breakdown (Construction)

MODIFICATION COST PROPOSAL - PRICE BREAKDOWN

(CONSTRUCTION) (APRIL 1996)

\(a\) The contractor, in connection with any proposal it makes for a
contract modification, shall furnish a price breakdown, itemized as
required by the Contracting Officer. The breakdown shall be in enough
detail to permit an analysis of all material, labor, equipment,
subcontract, and overhead costs, as well as profit, and shall cover all
work involved in the modification, whether such work was deleted, added
or changed. Any amount claimed for subcontracts shall be supported by
similar price breakdowns from those subcontractors.

\(b\) In addition, if the proposal includes a time extension, a
justification thereof shall also be furnished. Notwithstanding any other
provisions of this contract, it is mutually understood that the time
extension for changes in the work will depend upon the extent, if any,
by which the changes cause delay in the completion of the various
elements of work. The contract completion dates will be extended only
for those specific elements so delayed and the remaining contract
completion dates for all other portions of the work will not be altered.

\(c\) The proposal, together with the price breakdown and time extension
justification, shall be furnished by the date specified by the
Contracting Officer.

*(End of clause)*

3.10.1-20 Warranty\--Construction

WARRANTY\--CONSTRUCTION (APRIL 1996)

\(a\) In addition to any other warranties in this contract, the
Contractor warrants, except as provided in paragraph (i) of this clause,
that work performed under this contract conforms to the contract
requirements and is free of any defect in equipment, material, or design
furnished, or workmanship performed by the Contractor or any
subcontractor or supplier at any tier.

\(b\) This warranty shall continue for a period of 1 year from the date
of final acceptance of the work. If the Government takes possession of
any part of the work before final acceptance, this warranty shall
continue for a period of 1 year from the date the Government takes
possession.

\(c\) The Contractor shall remedy at the Contractor's expense any
failure to conform, or any defect. In addition, the Contractor shall
remedy at the Contractor's expense any damage to Government owned or
controlled real or personal property, when that damage is the result of
:

\(1\) The Contractor's failure to conform to contract requirements; or

\(2\) Any defect of equipment, material, workmanship, or design
furnished by the Contractor.

\(d\) The Contractor shall restore any work damaged in fulfilling the
terms and conditions of this clause. The Contractor's warranty with
respect to work repaired or replaced will run for 1 year from the date
of repair or replacement.

\(e\) The Contracting Officer will notify the Contractor, in writing,
within a reasonable time after the discovery of any failure, defect, or
damage.

\(f\) If the Contractor fails to remedy any failure, defect, or damage
within a reasonable time after receipt of notice, the Government shall
have the right to replace, repair, or otherwise remedy the failure,
defect, or damage at the Contractor's expense.

\(g\) With respect to all warranties, express or implied, from
subcontractors, manufacturers, or suppliers for work performed and
materials furnished under this contract, the Contractor shall­:

\(1\) Obtain all warranties that would be given in normal commercial
practice;

\(2\) Require all warranties to be executed, in writing, for the benefit
of the Government, if directed by the Contracting Officer, and

\(3\) Enforce all warranties for the benefit of the Government if
directed by the Contracting Officer.

\(h\) In the event the Contractor's warranty under paragraph (b) of this
clause has expired, the Government may bring suit at its expense to
enforce a subcontractor's, manufacturer's, or supplier's warranty.

\(i\) Unless a defect is caused by the negligence of the Contractor or
subcontractor or supplier at any tier, the Contractor shall not be
liable for the repair of any defects of material or design furnished by
the Government nor for the repair of any damage that results from any
defect in Government furnished material or design.

\(j\) This warranty shall not limit the Government's rights under the
Inspection and Acceptance clause of this contract with respect to latent
defects, gross mistakes, or fraud.

*(End of clause)*

3.10.1-21 RESERVED

3.10.1-22 Contracting Officer's Technical Representative

CONTRACTING OFFICER\'S TECHNICAL REPRESENTATIVE (JULY 1996)

\(a\) The Contracting Officer may designate other Government personnel
(known as the Contracting Officer's Technical Representative) to act as
his or her authorized representative for contract administration
functions which do not involve changes to the scope, price, schedule, or
terms and conditions of the contract. The designation will be in
writing, signed by the Contracting Officer, and will set forth the
authorities and limitations of the representative(s) under the contract.
Such designation will not contain authority to sign contractual
documents, order contract changes, modify contract terms, or create any
commitment or liability on the part of the Government different from
that set forth in the contract.

\(b\) The Contractor shall immediately contact the Contracting Officer
is there is any question regarding the authority of an individual to act
on behalf of the Contracting Officer under this contract.

*(End of clause)*

3.10.1-23 Contracting Officer's Representatives-Construction Contracts

CONTRACTING OFFICER'S REPRESENTATIVES -

CONSTRUCTION CONTRACTS (JULY 1996)

\(a\) The Contracting Officer may appoint other Government personnel to
accomplish certain contract administration matters. While there shall be
various titles and divisions of duties for these individuals,
generically they are known as Contracting Officer's Technical
Representatives (COTR's). The Contracting Officer will provide written
notice of COTR appointment(s), setting forth the authorities and
limitations, to the Contractor within \_\_\_\_ calendar days prior to
the notice to proceed. COTR duties may include, but are not limited to:

\(1\) Perform as the authorized representative of the Contracting
Officer for technical matters, including interpretation of
specifications and drawings, and inspection and review of work
performed.

\(2\) Perform as the authorized representative of the Contracting
Officer for administrative matters, including reviewing payments, and
updated delivery schedules.

\(b\) These representatives are authorized to act for the Contracting
Officer in all specifically delegated matters pertaining to the
contract, except: (1) contract modifications that change the contract
price or cost, technical requirements or time for performance, unless
delegated field modification authority; (2) suspension or termination of
the Contractor's right to proceed, either for default or for convenience
; (3) final decisions on any matters subject to appeal, e.g., disputes
under the "Contract Disputes" clause; and (4) final acceptance under the
contract.

*(End of clause)*

**END OF CHANGE 1 - JULY 22, 1996**