Prospective suppliers should carefully


read this publication as the


applicable terms within


become an integral


part of contracts with the


U.S. Government Printing Office.


This copy should be retained


for reference.


GPO Publication 310.2 

Effective December 1, 1987 

(Rev. 6-01) 
CTCN 01–01 APRIL 10, 2001 

Table of Contents 

SOLICITATION PROVISIONS 

1. Preparation of bids / 1


2. Information furnished to bidders / 1


3. Amendments to solicitations / 1


4. Submission of bids / 1


5. Telegraphic bids / 1


6. Facsimile bids / 1


7.	 Late submissions, modifications, and withdrawals of


bids / 1


8.	 Late submissions, modifications, and withdrawals of


proposals / 2


9. Failure to submit bid / 2


10. False statements in bids / 2 

11. Postponement of bid opening / 2 

12. Discounts / 2 

13. Contract award—sealed bid / 2 

14. Contract award—competitive negotiation / 3 

15. Certification of independent price determination / 3 

16. Government furnished property / 3 

17.	 Utilization of small, small disadvantaged, and womenowned small business concerns / 3 

18. Service of protest / 3 

19. Recovered materials program / 3 

REPRESENTATIONS, CERTIFICATIONS, BID ACCEPTANCE 

R–1. Small business concern / 5 C–5. Certification regarding debarment, suspension, proposed


R–2. Small disadvantaged business concern / 5 debarment, and other responsibility matters / 5


R–3. Women-owned small business concern / 5 C–6. Certification of nonsegregated facilities / 6


C–1. Covenant against contingent fees / 5 Notice to prospective subcontractors of requirements for


C–2. Buy American certification / 5 certification of nonsegregated facilities / 6


C–3. Certification of clean air and water / 5 Bid acceptance period / 6


C–4. Certificate of independent price determination / 5 Referenced documents / 6


SUPPLEMENTAL SPECIFICATIONS 

General 

1. Ink / 7


2. Quality / 7


3. Packing / 7 

4. Labeling and marking / 8


5. Deliveries / 8


6. Shipping instructions / 8


7. Drayage and special charges / 8


8. Palletizing / 8


9. Imprints / 9 

10. Reproduction media / 9


11. Certificate of conformance / 9


1. Contractual responsibility / 13


2. Order of precedence / 13


3. Workday / 13


4. Changes / 13


5. Disputes / 13


6. Subcontracts / 14


12. Changes on multipart sets / 9


13. Timework / 9 

14. Departmental random copies (blue label) / 9 

Proofs 

15. General requirements / 10 

16. Author’s alterations / 10 

17. Proofing procedures / 10 

18. Proofs / 10 

Labeling and marking specifications (facsimile label) 

11 

Design for Type III pallet / 12 

CONTRACT CLAUSES 

7. Government furnished property (GFP) / 14


8. Use of Government furnished property / 15


9. Risk of loss / 15 

10. Return of Government property / 15


11. Quantity variations / 15


12. Notice of compliance with schedules / 15


13. Failure to ship/deliver full quantities / 17 

14. Inspection and tests / 17


15. Warranty / 18


16.	 Notice and assistance regarding patent and copyright


infringement / 19


17. Patent indemnity / 19


18. Reproduction of printing prohibited / 20 

19. Termination for convenience of the Government / 20


20. Default / 22 

21. Actual damages / 23 

22. Liquidated damages / 23 

23. Delay in deliveries / 23 

24. Payments on purchase order / 24 

25. Partial payment / 25 

26. Payment for accelerated delivery / 25 

27. Federal, State and local taxes / 25 

28.	 Mandatory information for electronic funds transfer 

payment / 25 

29. Assignment of claims / 27 

30. Convict labor / 27 

31.	 Contract Work Hours and Safety Standard Act—overtime compensation / 28 

32. Walsh-Healey Public Contracts Act / 28 

33. Equal opportunity / 29 

34. Nondiscrimination because of age / 30 

35. Affirmative action for workers with disabilities / 30 

36.	 Affirmative action for Disabled veterans and veterans 

of the Vietnam era / 30 

i

CTCN 01–01 APRIL 10, 2001


37. Buy American Act / 32 46. Contract cost principles and procedures / 35


38. Advertising of award prohibited / 32 47. Joint ventures / 36


39. Maintenance of Records on Recovered Materials in 48. Protest after award / 36


Paper Products / 32 49. Anti-kickback procedures / 36


40. Examination of records / 32 50. Bankruptcy / 37


41. Audit and records—sealed bidding / 33 51. Cancellation, recission, and recovery of funds for illegal


42.	 Price reduction for defective cost or pricing data—modi- or improper activity / 37


fications—sealed bidding / 33 52. Price or fee adjustment for illegal or improper activity


43. Audit—Negotiation / 34 38


44. Gratuities / 35 53. Restrictions on subcontractor sales to the Government


45. Covenant against contingent fees / 35 39


ii

CTCN 01–01 APRIL 10, 2001


Solicitation Provisions


1. Preparation of Bids.1 

(a) Bidders are expected to examine the specifications and 

all instructions. Failure to do so is at the bidder’s risk. 

(b) Each bidder shall furnish the information required by 

the Invitation for Bid (IFB). The bid must be signed by a

duly authorized official of the firm, otherwise it will not be 

considered. Erasures or other changes shall be initialed by 

the person signing the bid. Bids signed by an agent shall be 

accompanied by evidence of that authority from an official of 

the firm, unless such evidence has previously been furnished 

to the Government Printing Office (GPO). 

(c) Bidders shall include anticipated items of cost for production and normal waste, spoilage, etc., in their bids. 

(d) In case of discrepancy between a unit price and extended 

price, the unit price will be presumed to be correct, subject 

however to correction to the same extent and in the same 

manner as any other mistake. 

2. Information Furnished to Bidders. 

Any information given to a prospective bidder concerning 

a solicitation will be furnished to all prospective bidders as

an amendment to the solicitation, if such information is necessary to bidders in submitting bids, or if the lack of such 

information would be prejudicial to other prospective bidders. 

Oral explanations or instructions given before the opening of 

bids will not be binding. 

3. Amendments to Solicitations. 

(a) If a solicitation is amended, then all terms and conditions 

which are not modified remain unchanged.

(b) Bidders and offerors shall acknowledge receipt of any 

amendment material to a solicitation by (1) signing and returning the amendment, (2) identifying the amendment number 

and date in the space provided for this purpose on the form 

for submitting a bid or offer, (3) letter or telegram, or (4) 

by facsimile if facsimile bids or offers are authorized in the

solicitation. The Government must receive the acknowledgment 

by the time specified for opening of bids or receipt of offers. 

4. Submission of Bids. 

(a) Bids and bid modifications shall be submitted in sealed 

envelopes or packages (unless submitted by electronic means) 

(1) addressed to the office specified in the solicitation, and 

(2) showing the time specified for receipt, the solicitation number, and the name and address of the bidder. 

(b) Bidders using commercial carrier services shall ensure 

that the bid is addressed and marked on the outermost envelope or wrapper as prescribed in subparagraphs (a)(1) and (2) 

of this provision when delivered to the office specified in the 

solicitation. 

(c) Telegraphic bids will not be considered unless authorized

by the solicitation; however, bids may be modified or withdrawn by written or telegraphic notice. 

(d) Facsimile bids, modifications, or withdrawals, will not 

be considered unless authorized by the solicitation. 

(e) Bidders are invited to be present at the opening of bids. 

(f) Bids that reject any of the representations, certifications,

terms, conditions, or provisions of the solicitation, may be excluded from consideration. 

5. Telegraphic Bids. 

(a) Telegraphic bids must arrive at the place, and by the 

time, specified in the solicitation. 

(b) Telegraphic bids shall refer to the solicitation and include 

the items or subitems, quantities, unit prices, time and place

of delivery, all representations and other information required 

by the solicitation, and a statement of agreement with all the 

terms, conditions, and provisions of the IFB. 

(c) Bidders must promptly sign and submit complete copies 

of the bids in confirmation of their telegraphic bid. 

1 The sealed bidding terminology as used throughout these provisions, specifications, and clauses is synonymous with their negotiated procurement counterparts 

unless specifically stated otherwise. 

(d) The term telegraphic bids, as used in this provision, includes mailgrams. 

6. Facsimile Bids. 

(a) Definition. Facsimile bid, means a bid, modification of 

a bid, or withdrawal of a bid that is transmitted to and received by the Government via electronic equipment that communicates and reproduces both printed and handwritten material. 

(b) Facsimile bids must arrive at the place and by the time, 

specified in the solicitation. 

(c) Facsimile bids must contain the required signatures. 

(d) The Government reserves the right to make award solely 

on the facsimile bid. However, if requested to do so by the

Contracting Officer, the apparently successful bidder agrees 

to promptly submit the complete original signed copy. 

(e) Telephone number and compatibility characteristics of receiving facsimile equipment (e.g. make and model number, receiving speed, communications protocol) will be furnished in 

the solicitation. 

(f) If the bidder chooses to transmit a facsimile bid, the 

Government will not be responsible for any failure attributable 

to the transmission or receipt of the facsimile bid including, 

but not limited to, the following: 

(1) Receipt of garbled or incomplete bid. 

(2) Availability or condition of the receiving facsimile

equipment. 

(3) Incompatibility between the sending and receiving 

equipment. 

(4) Delay in transmission or receipt of bid. 

(5) Failure of the bidder to properly identify the bid. 

(6) Illegibility of bid.

(7) Security of bid data. 

7. Late Submissions, Modifications, and Withdrawals of 

Bids. 

(a) Any bid received at the office designated in the solicitation after the exact time specified for receipt will not be considered unless it was received before award is made and it— (1) was sent by registered or certified mail not later than 

the fifth calendar day before the date specified for receipt of 

bids (e.g., a bid submitted in response to a solicitation requiring

receipt of bids by the 20th of the month must have been mailed 

by the 15th); 

(2) was sent by mail (or telegram or facsimile, if authorized) or hand-carried (including delivery by a commercial carrier) if it is determined by the Government that the late receipt 

was due primarily to Government mishandling after receipt 

at the Government installation; or 

(3) was sent by U.S. Postal Service Express Mail Next 

Day Service—Post Office to Addressee, not later than 5 P.M. 

at the place of mailing two workdays prior to the date specified 

for receipt of bids. The term ‘‘workdays’’ excludes weekends 

and U.S. Federal holidays. 

(b) Any modification or withdrawal of a bid is subject to 

the same conditions as in paragraph (a) of this provision. 

(c) The only acceptable evidence to establish the date of 

mailing of a late bid, modification, or withdrawal sent either 

by registered or certified mail is the U.S. Postal Service postmark both on the envelope or wrapper and on the original 

receipt from the U.S. Postal Service. Both postmarks must 

show a legible date or the bid, modification, or withdrawal 

shall be processed as if mailed late. ‘‘Postmark’’ means a printed, stamped, or otherwise placed impression (exclusive of a 

postage machine impression) that is readily indentifiable without further action as having been supplied and affixed by employees of the U.S. Postal Service on the date of mailing. Therefore, bidders should request the postal clerk to place a legible 

hand cancellation bull’s-eye postmark on both the receipt and 

the envelope or wrapper. 

(d) The only acceptable evidence to establish the time of 

receipt at the Government installation is the time/date stamp 

of that installation on the bid wrapper or other documentary 

evidence of receipt maintained by the installation. 

1

(e) The only acceptable evidence to establish the date of 

mailing of a late bid, modification, or withdrawal sent by U.S. 

Postal Service Express Mail Next Day Service—Post Office to 

Addressee is the date entered by the post office receiving clerk 

on the ‘‘Express Mail Next Day Service—Post Office to Addressee’’ label and the postmark on the envelope or wrapper

and on the original receipt from the U.S. Postal Service. ‘‘Postmark’’ has the same meaning as defined in paragraph (c) of 

this provision. Therefore, bidders should request the postal 

clerk to place a legible hand cancellation bull’s-eye postmark 

on both the receipt and the envelope or wrapper. 

(f) Notwithstanding paragraph (a) of this provision, a late

modification of an otherwise successful bid that makes its 

terms more favorable to the Government will be considered 

at any time it is received and may be accepted. 

(g) Bids may be withdrawn by written notice or telegram 

(including mailgram) received at any time before the exact 

time set for receipt of bids. If the solicitation authorizes facsimile bids, bids may be withdrawn via facsimile received at 

any time before the exact time set for receipt of bids, subject 

to the conditions specified in the provision entitled ‘‘Facsimile 

Bids.’’ A bid may be withdrawn in person by a bidder or its 

authorized representative if, before the exact time set for receipt of bids, the identity of the person requesting withdrawal

is established and the person signs a receipt for the bid. 

8. Late Submissions, Modifications, and Withdrawals of 

Proposals. 

(a) Any proposal received at the office designated in the 

solicitation after the exact time specified for receipt will not 

be considered unless it is received before award is made and 

it— (1) was sent by registered or certified mail not later than

the fifth calendar day before the date specified for receipt of 

offers (e.g., an offer submitted in response to a solicitation 

requiring receipt of offers by the 20th of the month must have 

been mailed by the 15th); 

(2) was sent by mail (or telegram or facsimile, if authorized) or hand carried (including delivery by a commercial carrier) if it is determined by the Government that the late receipt 

was due primarily to Government mishandling after receipt 

at the Government installation; 

(3) was sent by U.S. Postal Service Express Mail Next 

Day Service—Post Office to Addressee, not later than 5 P.M. 

at the place of mailing two workdays prior to the date specified

for receipt of proposals. The term ‘‘workdays’’ excludes weekends and U.S. Federal holidays; or 

(4) is the only proposal received. 

(b) Any modification of a proposal or quotation, except a 

modification resulting from the Contracting Officer’s request 

for ‘‘best and final’’ offer, is subject to the same conditions

as in subparagraphs (a)(1), (2), and (3) of this provision. 

(c) A modification resulting from the Contracting Officer’s request for ‘‘best and final’’ offer received after the time and 

date specified in the request will not be considered unless 

received before award and the late receipt is due solely to 

mishandling by the Government after receipt at the Government installation. 

(d) The only acceptable evidence to establish the date of 

mailing of a late proposal or modification sent either by U.S. 

Postal Service registered or certified mail is the U.S. Postal 

Service postmark both on the envelope or wrapper and on 

the original receipt from the U.S. Postal Service. Both postmarks must show a legible date or the proposal, quotation, 

or modification shall be processed as if mailed late. ‘‘Postmark’’ 

means a printed, stamped, or otherwise placed impression (exclusive of a postage meter machine impression) that is readily 

identifiable without further action as having been supplied and 

affixed by employees of the U.S. Postal Service on the date 

of mailing. Therefore, offerors or quoters should request the 

postal clerk to place a legible hand cancellation bull’s-eye postmark on both the receipt and the envelope or wrapper. 

(e) The only acceptable evidence to establish the time of 

receipt at the Government installation is the time/date stamp 

of that installation on the proposal wrapper or other documentary evidence of receipt maintained by the installation. 

(f) The only acceptable evidence to establish the date of mailing of a late offer, modification, or withdrawal sent by Express 

Mail Next Day Service—Post Office to Addressee is the date 

entered by the post office receiving clerk on the ‘‘Express Mail 

Next Day Service—Post Office to Addressee’’ label and the postmark on both the envelope or wrapper and on the original 

receipt from the U.S. Postal Service. ‘‘Postmark’’ has the same 

meaning as defined in paragraph (d) of this provision. Therefore, offerors or quoters should request the postal clerk to place 

a legible hand cancellation bull’s-eye postmark on both the 

receipt and the envelope or wrapper. 

(g) Notwithstanding paragraph (a) of this provision, a late

modification of an otherwise successful proposal that makes 

its terms more favorable to the Government will be considered 

at any time it is received and may be accepted. 

(h) Proposals may be withdrawn by written notice or telegram (including mailgram) received at any time before award. 

If the solicitation authorizes facsimile proposals, proposals may

be withdrawn via facsimile received at any time before award, 

subject to the conditions specified in the provision entitled 

‘‘Facsimile Proposals.’’ Proposals may be withdrawn in person 

by an offeror or an authorized representative, if the representative’s identity is made known and the representative signs 

a receipt for the proposal before award. 

9. Failure to Submit Bid. 

Recipients of solicitations who do not respond with a bid

should not return the solicitation, unless it specifies otherwise. 

Instead, they should advise the issuing office by letter or postcard whether they want to receive future solicitations for similar requirements. If a recipient does not submit a bid and 

does not notify the issuing office that future solicitations are 

desired, the recipient’s name may be removed from the applicable mailing list. 

10. False Statements in Bids. (May 1999)

Bidders must provide full, accurate, and complete information as required by the solicitation and its attachments. The 

penalty for making false statements in bids is prescribed in 

18 U.S.C. 1001. 

11. Postponement of Bid Opening. (May 1999) 

If an emergency or unanticipated event interrupts normal 

Government processes so as to cause postponement of the

scheduled bid opening, and urgent Government requirements 

preclude amendment of the solicitation or other notice of an 

extension of the opening date, the time specified for receipt 

of bids will be deemed to be extended to the same time of 

day specified in the solicitation on the first workday on which 

normal Government processes resume. 

12. Discounts. 

Prompt payment discounts offered by bidders will be applied

by the Government as follows: 

(a) Evaluation. 

(1) Unless otherwise provided in the specifications, prompt 

payment discounts offered for payment in less than 20 calendar 

days will not be considered in evaluating bids for award. 

(2) When prices are offered in response to an IFB, any

prompt payment discount which is eligible for consideration 

in the evaluation of bids (i.e. for a period of 20 days or more) 

will be applied directly to the prices offered. 

(3) When the IFB contains basic prices and the bid consists 

of the basic prices plus a percentage or the basic prices minus 

a percentage, such percentage will be applied first to determine

the evaluated price offered. An eligible prompt payment discount will be applied directly to the evaluated price offered. 

(b) Payment. 

(1) When the prompt payment discount is earned by reason 

of payment within the offered prompt payment period, the full 

discount will be deducted whether or not it was eligible for 

consideration in the evaluation of bids. 

(2) When payment is made after the expiration of the 

prompt payment discount period and the offered prompt payment discount exceeds 5 percent, any percentage in excess of 

5 percent will be considered by the Government to be a special 

discount which the bidder or offeror agrees that the Government will be entitled to regardless of when payment is made, 

and the special discount will be deducted from the payment. 

(3) For the purpose of earning the discount, time will be 

computed from the date a correct invoice is received by the 

GPO to the date indicated on the Government check. 

13. Contract Award—Sealed Bid. 

(a) The Government will evaluate bids in response to the 

solicitation without discussions and will award a contract to 

the responsible bidder whose bid, conforming to the solicitation, 

2

will be most advantageous to the Government, considering only

price and the price related factors specified elsewhere in the

solicitation. 

(b) The Government may (1) reject any or all bids, (2) accept

other than the lowest bid, and (3) waive informalities or minor

irregularities in bids received.

(c) A written award or acceptance of a bid mailed or otherwise furnished to the successful bidder within the time for 

acceptance specified in the bid shall result in a binding contract

without further action by either party.

(d) The Government may reject a bid as nonresponsive if

the prices bid are materially unbalanced between line items

or subline items. A bid is materially unbalanced when it is

based on prices significantly less than cost for some work and

prices which are significantly overstated in relation to cost

for other work, and if there is reasonable doubt that the bid 

will result in the lowest overall cost to the Government even 

though it may be the low evaluated bid, or if it is so unbalanced as to be tantamount to allowing an advanced payment. 

14. Contract Award—Competitive Negotiation.

(a) The Government may accept within the time specified

therein, any offer, whether or not there are negotiations subsequent to its receipt, unless the offer is withdrawn by written

notice received by the Government prior to award. If subsequent negotiations are conducted, they shall not constitute a

rejection or counter offer on the part of the Government.

(b) The right is reserved to accept other than the lowest

offer, to reject any or all offers, or waive informalities or minor

irregularities.

(c) The Government may award a contract, based on initial

offers received, without discussion of such offers. Accordingly,

each initial offer should be submitted on the most favorable 

terms from a price and technical standpoint which the offeror

can submit to the Government. 

(d) Any financial data submitted with any offer hereunder

or any representation concerning facilities or financing will

not form a part of any resulting contract; provided, however,

that if the resulting contract contains a clause providing for

price reduction for defective cost or pricing data, the contract

price will be subject to reduction if cost or pricing data furnished hereunder is incomplete, inaccurate, or not current.

(e) The contract will be awarded to that responsible offeror

whose offer conforming to the solicitation will be most advantageous to the Government, cost or price and other factors 

(specified elsewhere in the solicitation) considered. 

15. Certification of Independent Price Determination. 

(a) The certification, on the reverse of the ‘‘bid’’ form, is 

not applicable to a foreign bidder submitting a bid for a contract which requires performance or delivery outside the United 

States, its possessions, and Puerto Rico. 

(b) A bid will not be considered for award where paragraphs 

C–4 (a), (c), or (d) of the certification has been deleted or 

modified. Where paragraph C–4(b) of the certification has been

deleted or modified, the bid will not be considered for award 

unless the bidder furnishes with the bid a signed statement 

which sets forth in detail the circumstances of the disclosure 

and the Director, Procurement Services, or designee, determines that such disclosure was not made for the purpose of 

restricting competition. 

16. Government Furnished Property. 

No material, labor or facilities will be furnished by the Government unless otherwise provided in IFB. 

17. Utilization of Small, Small Disadvantaged and

Women-Owned Small Business Concerns. (May 1999) 

(a) It is the policy of the United States that small business 

concerns, small business concerns owned and controlled by socially and economically disadvantaged individuals and small 

business concerns owned and controlled by women shall have 

the maximum practicable opportunity to participate in performing contracts let by any Federal agency, including contracts and subcontracts for subsystems, assemblies, components, and related services for major systems. It is further 

the policy of the United States that its prime contractors establish procedures to ensure the timely payment of amounts due 

pursuant to the terms of their subcontracts with small business

concerns, small business concerns owned and controlled by socially and economically disadvantaged individuals and small 

business concerns owned and controlled by women. 

(b) The contractor hereby agrees to carry out this policy 

in the awarding of subcontracts to the fullest extent consistent 

with efficient contract performance. The contractor further 

agrees to cooperate in any studies or surveys as may be conducted or may be necessary to determine the extent of the 

contractor’s compliance with this provision. 

(c) As used in the contract, the term ‘‘small business concern’’ 

shall mean a small business as defined pursuant to section 

3 of the Small Business Act and relevant regulations promulgated thereto. The term ‘‘small business concern owned and 

controlled by socially and economically disadvantaged individuals’’ shall mean a small business concern (1) which is at 

least 51 percent unconditionally owned by one or more socially 

and economically disadvantaged individuals; or, in the case 

of any publicly owned business, at least 51 per centum of 

the stock of which is unconditionally owned by one or more 

socially and economically disadvantaged individuals; and (2) 

whose management and daily business operations are controlled by one or more of such individuals. This term also 

means a small business concern that is at least 51 percent 

unconditionally owned by an economically disadvantaged Indian tribe or Native Hawaiian organization, or a publicly 

owned business having at least 51 percent of its stock unconditionally owned by one of these entities which has its management and daily business controlled by members of an economically disadvantaged Indian tribe or Native Hawaiian organization, and which meets the requirements of 13 CFR 124. The 

contractor shall presume that socially and economically disadvantaged individuals include Black Americans, Native Americans, Asian-Pacific Americans, Subcontinent Asian Americans, 

and other minorities, or any other individual found to be disadvantaged pursuant to section 8(a) of the Small Business Act. 

The contractor shall presume that socially and economically 

disadvantaged entities also include Indian tribes and Native 

Hawaiian organizations. 

(d) The term ‘‘small business concern owned and controlled 

by women’’ shall mean a small business concern— 

(1) Which is at least 51 percent owned by one or more 

women, or, in the case of any publicly owned business, at 

least 51 percent of the stock of which is owned by one or 

more women; and 

(2) Whose management and daily business operations are 

controlled by one or more women. 

(e) Contractors acting in good faith may rely on written representations by their subcontractors regarding their status as 

a small business concern, a small business concern owned and 

controlled by socially and economically disadvantaged individuals or a small business concern owned and controlled by 

women. 

18. Service of Protest. (May 1999) 

(a) Protests (as defined in section 3 of GPO Instruction 305.7) 

that are filed directly with the Government Printing Office 

(GPO), and copies of any protests that are filed with the General Accounting Office (GAO), shall be served on the Contracting Officer at the procurement office from which the solicitation was issued by obtaining written and dated acknowledgement of receipt from the official or location designated by the 

Contracting Officer, where a protest may be served on the 

Contracting Officer. 

(b) The copy of any protest shall be received by the official 

or in the office designated above within 1 day of filing a protest 

with the GAO. 

19. Recovered Materials Program. (May 1999) 

(a) The Government Printing Office is promoting the use 

of recovered materials to the maximum extent practicable in 

its contracts, provided all specification requirements are met. 

Offerors are encouraged to supply paper and paper products 

that contain recovered materials even in the absence of a specific solicitation provision or contract clause requiring such materials. 

(b) Recovered materials shall mean ‘‘recovered fiber’’ or 

‘‘postconsumer recovered fiber.’’ However, when used in conjunction with the cotton/linen content of paper, ‘‘recovered 

fiber’’ means a postconsumer fiber and ‘‘recovered material’’ 

means a preconsumer fiber. 

(c) By submission of a bid or offer, or by substantial performance on a small purchase, the offeror certifies that the paper 

to be supplied contains at least the minimum percentage of 

recovered materials in paper products as specified. This certifi3

cation concerns a matter within the jurisdiction of an agency covered materials used in performance of the contract, (2) that 

of the United States, and the making of a false, fictitious, the paper and paper products are in compliance with the specior fraudulent certification may render the maker subject to fication requirements, and (3) the paper is manufactured in 

prosecution under Title 18, United States Code, Section 1001. accordance with the Environmental Protection Agency (EPA) 

The Government reserves the right to require proof of such Paper Products Recovered Materials Advisory Notice (61 FR 

certification prior to first delivery and thereafter as may be 26985, May 29, 1996) whether the products are manufactured 

otherwise provided for under the provisions of the contract. by the contractor or another paper mill. The contractor, if not 

(d) When the use of recovered materials is specified, the the manufacturer, shall obtain this information from the paper 

contractor shall maintain manufacturer/mill accounting and manufacturer. The contractor shall maintain and make availrecord summaries on the fiber weight content used as feed- able to the Government, these documents for 1 year after expistock, for purposes of Government audit, that will verify (1) ration of the contract. Nothing in this provision shall excuse 

the contractor’s certification of the minimum percentage of re- the contractor from furnishing the specified paper. 

4

CTCN 01–01 APRIL 10, 2001 

Representations, Certifications, Bid Acceptance Period 

REPRESENTATIONS. 

R–1. Small Business. By submission of a bid, the bidder

represents that the bidder is a small business concern, unless 

the bid contains an affirmative representation that the bidder

is not a small business concern. 

R–2. Small Disadvantaged Business Concern. By submission of a bid, the bidder represents that the bidder is not 

a small disadvantaged business concern, unless the bid itself

contains an affirmative representation that the bidder is is 

a small disadvantaged business concern.

R–3. Women-Owned Small Business Concern. By submission of a bid, the bidder represents that the bidder is not 

a women-owned small business concern, unless the bid itself 

contains an affirmative representation that the bidder is a women-owned small business concern. 

CERTIFICATIONS. 

C–1. Covenant Against Contingent Fees. Submission of 

a bid without statement of exception shall constitute certification. 

(a) The contractor warrants that no person or agency has

been employed or retained to solicit or obtain a contract upon

an agreement or understanding for a contingent fee, except

a bona fide employee or agency. For breach or violation of

this warranty, the Government shall have the right to annul

the contract without liability or, in its discretion, to deduct

from the contract price or consideration, or otherwise recover,

the full amount of the contingent fee.

(b) ‘‘Bona fide agency’’ means an established commercial or 

selling agency, maintained by a contractor for the purpose of

securing business, that neither exerts nor proposes to exert

improper influence to solicit or obtain Government contracts

nor holds itself out as being able to obtain any Government

contract or contracts through improper influence. ‘‘Bona fide employee’’ means a person, employed by a contractor and subject to the contractor’s supervision and control

as to time, place, and manner of performance, who neither

exerts nor proposes to exert improper influence to solicit or

obtain Government contracts nor holds out as being able to

obtain any Government contract or contracts through improper

influence. ‘‘Contingent fee’’ means any commission, percentage, brokerage, or other fee that is contingent upon the success that a

person or concern has in securing a Government contract. ‘‘Improper influence’’ means any influence that induces or

tends to induce a Government employee or officer to give consideration or to act regarding a Government contract on any

basis other than the merits of the matter. 

C–2. Buy American Certification. Except as may be listed 

with the bid itself, the bidder certifies with the submission 

of a bid that each end product is a domestic end product (as 

defined in clause 37 ‘‘Buy American Act’’ in Contract Clauses), 

and that components of unknown origin have been considered 

to have been mined, produced, or manufactured outside the

United States. Any exception listed with the bid itself must 

list both the excluded end products and the country of origin 

of each. 

C–3. Clean Air and Water. Submission of a bid without 

statement of exception shall constitute certification. (Applicable if the bid or offer exceeds $100,000, or the Contracting Officer has determined that orders under an indefinite 

quantity contract in any year will exceed $100,000, or a facility 

to be used has been the subject of a conviction under the 

Clean Air Act (42 U.S.C. 7413 (C)(1)) or the Federal Water 

Pollution Control Act (33 U.S.C. 1319(c)) and is listed by EPA,

or is not otherwise exempt.) 

(a) Any facility to be utilized in the performance of the proposed contract has not been listed on the Environmental Protection Agency List of Violating Facilities. 

(b) The Contracting Officer will be promptly notified, prior 

to award, of the receipt of any communication from the Director, Office of Federal Activities, Environmental Protection 

Agency, indicating that any facility which he/she proposes to 

use for the performance of the contract is under consideration 

to be listed on the EPA List of Violating Facilities. 

(c) Bidder will include substantially this certification, including this paragaph (c), in every nonexempt subcontract. 

C–4. Certificate of Independent Price Determination. 

Submission of a bid without statement of exception shall constitute certification. 

(a) The offeror certifies that— 

(1) The prices in the offer have been arrived at independently, without, for the purpose of restricting competition, any 

consultation, communication, or agreement with any other offeror or competitor relating to (i) those prices; (ii) the intention 

to submit an offer; or (iii) the methods or factors used to 

calculate the prices offered. 

(2) The prices in the offer have not been and will not 

be knowingly disclosed by the offeror, directly or indirectly, 

to any other offeror or competitor before bid opening (in the 

case of a sealed bid solicitation) or contract award (in the 

case of a negotiated solicitation) unless otherwise required by 

law; and 

(3) No attempt has been made or will be made by the 

offeror to induce any other concern to submit or not to submit 

an offer for the purpose of restricting competition. 

(b) Each signature on the offer is considered to be a certification by the signatory that the signatory— 

(1) Is the person in the offeror’s organization responsible 

for determining the prices being offered in the bid or proposal, 

and that the signatory has not participated and will not participate in any action contrary to subparagraphs (a)(1) through 

(a)(3) of this provision; or 

(2)(i) Has been authorized, in writing, to act as agent for 

the following principals in certifying that those principals have 

not participated, and will not participate in any action contrary 

to subparagraphs (a)(1) through (a)(3) of this provision [insert 

full name of person(s) in the offeror’s organization responsible 

for determining the prices offered in the bid or proposal, and 

the title of his or her position in the offeror’s organization]; 

(ii) As an authorized agent, does certify that the principals 

named in subdivision (b)(2)(i) of this provision have not participated, and will not participate, in any action contrary to subparagraphs (a)(1) through (a)(3) of this provision; and 

(iii) As an agent, has not personally participated, and will 

not participate, in any action contrary to subparagraphs (a)(1) 

through (a)(3) of this provision. 

(c) If the offeror deletes or modifies subparagraph (a)(2) of 

this provision, the offeror must furnish with its offer a signed 

statement setting forth in detail the circumstances of the disclosure. 

C–5. Certification Regarding Debarment, Suspension, 

Proposed Debarment, and Other Responsibility Matters 

(Jan. 1999). By submission of a bid— (a)(1) The offeror certifies, to the best of its knowledge and 

belief, that— 

(i) The offeror and/or any of its principals— 

(A) Are not presently debarred, suspended, proposed for 

debarment, or declared ineligible for the award of contracts 

by any Federal agency; 

(B) Have not, within a 3-year period preceding this offer, 

been convicted of or had a civil judgment rendered against 

them for: commission of fraud or a criminal offense in connection with obtaining, attempting to obtain, or performing a public (Federal, state, or local) contract or subcontract; violation 

of Federal or state antitrust statutes relating to the submission 

of offers; or commission of embezzlement, theft, forgery, bribery, falsification or destruction of records, making false statements, tax evasion, or receiving stolen property; and 

(C) Are not presently indicted for, or otherwise criminally 

or civilly charged by a governmental entity with commission 

of any of the offenses enumerated in subdivision (a)(1)(i)(B) 

of this provision. 

(ii) The offeror has not, within a three-year period preceding this offer, had one or more contracts terminated for 

default by any Federal agency. 

(2) ‘‘Principals,’’ for the purposes of this certification, means 

officers; directors; owners; partners; and, persons having primary management or supervisory responsibilities within a busi5

CTCN 01–01 

ness entity (e.g., general manager; plant manager; head of a

subsidiary, division, or business segment, and similar positions). 

This Certification Concerns a Matter Within the Jurisdiction 

of an Agency of the United States and the Making of a False,

Fictitious, or Fraudulent Certification May Render the Maker

Subject to Prosecution Under Section 1001, Title 18, United

States Code. 

(b) The offeror shall provide immediate written notice to

the Contracting Officer if, at any time prior to contract award,

the offeror learns that its certification was erroneous when 

submitted or has become erroneous by reason of changed circumstances. 

(c) A certification that any of the items in paragraph (a)

of this provision exists will not necessarily result in withholding of an award under the solicitation. However, the certification will be considered in connection with a determination 

of the offeror’s responsibility. Failure of the offeror to furnish

a certification or provide such additional information as requested by the Contracting Officer may render the offeror nonresponsible.

(d) Nothing contained in the foregoing shall be construed

to require establishment of a system of records in order to

render, in good faith, the certification required by paragraph

(a) of this provision. The knowledge and information of an

offeror is not required to exceed that which is normally possessed by a prudent person in the ordinary course of business

dealings.

(e) The certification in paragraph (a) of this provision is 

a material representation of fact upon which reliance was 

placed when making award. If it later determined that the 

offeror knowingly rendered an erroneous certification, in addition to other remedies available to the Government, the Contracting Officer may terminate the contract resulting from the

solicitation for default. 

C–6. Certification of Nonsegregated Facilities (Jan. 

1999). Submission of a bid without statement of exception shall 

constitute certification. 

(a) ‘‘Segregated facilities,’’ as used in this provision, means

any waiting rooms, work areas, rest rooms and wash rooms, 

restaurants and other eating areas, time clocks, locker rooms 

and other storage or dressing areas, parking lots, drinking 

fountains, recreation or entertainment areas, transportation, 

APRIL 10, 2001 

and housing facilities provided for employees, that are segregated by explicit directive or are in fact segregated on the 

basis of race, color, religion, or national origin because of habit, 

local custom, or otherwise. 

(b) By submission of an offer, the offeror certifies that it 

does not and will not maintain or provide for its employees 

any segregated facilities at any of its establishments, and that 

it does not and will not permit its employees to perform their 

services at any location under its control where segregated 

facilities are maintained. The offeror agrees that a breach of 

this certification is a violation of the Equal Opportunity clause 

in the contract. 

(c) The offeror further agrees that (except where it has obtained identical certifications from proposed subcontractors for 

specific time periods) it will— 

(1) Obtain identical certifications from proposed subcontractors before the award of subcontracts under which the 

subcontractor will be subject to the Equal Opportunity clause; 

(2) Retain the certifications in the files; and 

(3) Forward the following notice to the proposed subcontractors (except if the proposed subcontractors have submitted identical certifications for specific time periods); 

NOTICE TO PROSPECTIVE SUBCONTRACTORS OF 

REQUIREMENT FOR CERTIFICATION OF 

NONSEGREGATED FACILITIES 

A Certification of Nonsegregated Facilities must be submitted 

before the award of a subcontract under which the subcontractor will be subject to the Equal Opportunity clause. The 

certification may be submitted either for each subcontract or 

for all subcontracts during a period (i.e., quarterly, semiannually, or annually). 

Note: The penalty for making false statements in offers is 

prescribed in 18 U.S.C. 1001. 

BID ACCEPTANCE PERIOD 

The bidder agrees, if their bid is accepted within 60 calendar 

days (unless a different period is submitted with the bid) from 

the date for receipt of bids, to furnish the specified items at 

the price set opposite each item, delivered at the designated 

point(s), in exact accordance with specifications. 

Referenced Documents


All referenced documents, including any amendments, are 

incorporated by reference and become an integral part of the 

contract. A referenced document is that version which is in 

effect at time of award. Copies of these documents may be 

obtained as indicated below. 

Government Paper Specifications Standards is for sale, on 

a subscription basis, by the Superintendent of Documents, U.S. 

Government Printing Office, Washington, DC 20402. 

Standard samples may be obtained with cost information 

by addressing (1) Chief, Paper and Materials Control Section, 

Production Planning Division, Room C–838, Stop POL, Washington, DC 20401; (2) Chief, Paper and Physical Testing Division, Stop QC; or (3) your contracting officer. 

Copies of DMS Reg. 1 may be obtained from U.S. Department 

of Commerce, Business and Defense Service Administration, 

Washington, DC 20230. 

The U.S. Government Printing Office Style Manual is for 

sale by the Superintendent of Documents, U.S. Government 

Printing Office, Washington, DC 20402. 

Copies of Federal specifications are available by calling 202– 

619–8925. 

Domestic Mail Manual (DMM) and International Mail Manual (IMM) are for sale by the Superintendent of Documents, 

GPO, Washington, DC 20402. 

ANSI Standards are for sale by the American National 

Standards Institute, 1430 Broadway, New York, NY 10018. 

Free Government Printing Office forms are available to bidders at the Government Printing Office, Printing Procurement 

Department, Bid Section, Room B104, Washington, D.C. 20401 

or at any of the Regional Printing Procurement Offices. 

General printing procurement information and electronic 

posting of central and regional office solicitations are available 

via the internet at http://www.gpo.gov/procurement. 

6

Supplemental Specifications


GENERAL 

1. Ink. 

(a) If lithographic ink is used in the performance of the 

contract, the ink shall contain not less than the following percentages of vegetable oil: 

(1) News ink, 40 percent, 

(2) Sheet-fed and forms ink, 20 percent, and 

(3) Heat-set ink, 10 percent. 

(b) High quality color process printing on high speed heatset presses is excepted when slow drying time significantly 

increases production costs. 

2. Quality. 

(a) The quality requirements indicated in the specifications 

represent the minimum acceptable level. 

(b) Notwithstanding the minimum acceptable level, the following shall also apply: 

(1) Printing and binding shall be held to a high standard 

of imposition; makeready; press running; clear, sharp printing; 

binding; and good quality in every respect. 

(2) Marginally punched continuous forms shall be manufactured for satisfactory performance and must reflect good quality imaging and registration between parts, as applicable. 

(3) Microfilming shall be manufactured in such manner, 

within specifications, to provide the user with products capable 

of good legibility when read directly on reader screens and 

when used on printers to reproduce paper copies. 

(c) Contractors must have a quality control system that will 

assure product quality acceptable to the Government. See article 14 ‘‘Inspection and Tests’’ of Contract Clauses. 

(d) Specific quality requirements are further defined in GPO 

Publication 310.1, Quality Assurance Through Attributes Program, as revised. 

3. Packing. 

The method of packing indicated in the specifications must 

be accomplished in accordance with the following interpretations. The method and manner of packaging for preservation 

and required storage and/or transportation shall be in accordance with either the National Motor Freight Classification 

(NMFC) or the Uniform Freight Classification (UFC) tariff. 

The material used in packing must be of such quality as to 

insure arrival of the printed matter at its destination in a 

satisfactory and usable condition. Each packing unit must be 

uniform in size and quantity contained therein. Unless otherwise indicated, each shipping container must not exceed 20.4 

kg (45 pounds) when fully packed. Quantities which fill less 

than one-half a shipping container may be wrapped in shipping 

bundles. 

(a) Numbered products. Numbered products must be packaged in numerical sequence. Inner packages must be placed 

in shipping containers and shipping containers placed on pallets or skids (if pallets or skids are used) in numerical sequence. The low numbers must be on top unless otherwise 

ordered. The label(s) placed on each package and shipping bundle or container must also carry the first and last number 

contained therein. 

(b) Kraft paper wrapping. Wrap in packages not to exceed 

254 mm (10 inches) in height or in quantities as ordered. 

Place a piece of lightweight chipboard or newsboard, cut to 

the same size as the printed work, on top and bottom of the 

printed work, tight-wrap with kraft paper, and seal. 

(c) Shrink-film wrapping. Wrap in packages not to exceed 

254 mm (10 inches) in height or in quantities as ordered. 

Place a piece of lightweight chipboard or newsboard, cut to 

the same size as the printed work, on the bottom of the printed 

work, and wrap with heat-shrink film of suitable thickness 

and quality. The label may be placed inside the wrap, on the 

top or on the end. 

(d) Boxing. Solid pack in suitable paperboard boxes, which 

have closely fitted sides and ends. Tops and bottoms must 

be securely fastened. 

(e) Tying. Tie in packages not to exceed 254 mm (10 inches) 

in height, or in quantities as ordered. Place a piece of lightweight chipboard or newsboard, cut to the same size as the 

printed work, on top and bottom of the printed work, and 

tie in one position around both the length and width with 

substantial cord or twine. The cord or twine must be wrapped 

at least twice in each direction. 

(f) Banding. Band with a strip of heavy kraft paper, not 

less than 51 mm (2 inches) in width, around the short dimension of the form. The ends of the band must overlap and be 

held together with a suitable adhesive or gummed tape. 

(g) Kraft paper wrapping and tying. Prepare as indicated 

under paragraph (b) except tying shall be substituted for sealing. 

(h) Shipping bundles. The contents of bundles shall first 

be protected by using a good grade of corrugated mailing board 

on all sides and ends, then wrapped in 2 or more layers of 

heavy kraft paper and tied in both directions with heavy twine 

or rope. 

(i) Individual mailing containers. Containers may be ordered 

plain or printed with title and stock number in 18 point caps 

on the spine, in black ink, positioned so sealing tape will not 

cover the type. All containers must be packed solidly; in the 

event the product does not fit snugly, open-cell pads or 

thicknesses of corrugated board must be added to prevent shifting during transit. 

(1) For domestic use: Containers are to be one-piece, made 

of ‘‘B’’ fluted material and have a minimum bursting strength 

of 1 300 kPa (200 pounds per square inch) or a minimum 

edge crush test (ECT) of 5 600 Newtons per meter width (32 

pounds per inch width). Folders (containers with open corners) 

may not be used when the thickness of the contents exceeds 

2 inches. When the thickness of the contents exceeds 2 inches, 

containers with closed corners such as mailers or regular slotted cartons (RSC) must be used. Containers must be packed 

and sealed in a manner that will insure acceptance and safe 

delivery by the U.S. Postal Service. 

(2) For overseas use: Containers are to be one-piece, made 

of ‘‘B’’ fluted material and have a minimum bursting strength 

of 1 800 kPa (275 pounds per square inch) or a minimum 

ECT of 7 700 Newtons per meter width (44 pounds per inch 

width). A flap at one end of the container must not be fastened 

in order that postal inspection may be accomplished in accordance with international postal regulations. This tuck-in flap 

must be of sufficient length to hold the product securely, without danger of opening, but permit ready opening and reclosing 

without damage to the product or the container. Containers 

must be formed, packed, and sealed (with the exception of 

one flap) in a manner that will assure acceptance and safe 

delivery by the carrier. Each container must be marked as 

to the contents therein. Folders (containers with open corners) 

are not acceptable for mailing to overseas destinations. 

(j) Shipping containers. Only new corrugated or solid fiberboard containers may be used. Containers must be made in 

accordance with ASTM D5118 and any amendments thereto. 

Unless otherwise provided in the specifications, containers 

shall have a minimum bursting strength of 1 800 kPa (275 

pounds per square inch) or a minimum ECT of 7 700 Newtons 

per meter width (44 pounds per inch width). Containers must 

be packed solidly (top and sides) with material laid flat on 

the bottom of the containers (never stand on end); top and 

bottom pads of corrugated fiberboard shall be used and be 

in contact with the top and bottom of the container. In the 

event the material does not fit snugly on the top or sides, 

open-cell pads or thicknesses of corrugated board must be 

added. Top and bottom flaps must be closed and fastened firmly 

with water-resistant adhesive. Adhesive must be applied over 

not less than 50 percent of the area of contact between the 

inner and outer flaps. The bottom flaps may be stapled instead 

of glued, provided this is done before the container is packed. 

(k) At contractor’s option, containers may be sealed with 

tape which must completely cover the butted edges of the flaps 

and extend at least 2 inches on the ends of the containers. 

Tapes may be either a minimum 3-inch wide fiberglass rein7

forced nonstripable gummed paper tape that conforms to Commercial Item Description A-A-1671B and any amendments

thereto; a minimum 2-inch wide waterproof, pressure-sensitive

adhesive tape that conforms to ASTM D5486 and any amendments thereto; or a minimum 1-inch wide Type III, pressuresensitive, filament tape that conforms to ASTM D5330 and

any amendments thereto.

(l) Noncompliance with the packaging specifications may be

cause for the Government to reject the shipment, at destination, and return it to the contractor at his expense. After giving

notice of the deficiency and affording the contractor an opportunity and a reasonable time to correct, the Government may,

at its option, repackage in accordance with the specifications

and charge all costs to the contractor. 

4. Labeling and Marking.

Shipping and packing labels must be furnished by the contractor in accordance with specifications. Contractors are not

permitted to display advertisements on skids, pallets, shipping

containers, or boxes. All labels and entries made thereon must 

conform to and be in accordance with the ‘‘Labeling and Marking Specifications’’ and accurately reflect the contents (including quantity) of all packaged units.

(a) Inner packages. Each inner package must be marked or 

labeled with the following: Department name and requisition

number, form number (including revision date, if any), title, 

and quantity. Boxes and wrapped packages shall be marked 

or labeled on one end (never top, bottom, or sides), banded 

packages on the band, and tied packages on the chipboard 

or newsboard. Shrink film packages must be labeled, not 

marked, on the top or the end; labels may be placed inside

the wrap. 

(b) Shipping containers. Each shipping container must have 

a shipping label permanently affixed to one end (never top, 

bottom, or sides). The label must be reproduced (same size) 

from the facsimile included with the GFP in black ink on 

white paper. The label must be filled in accurately and legibly

in black, using bold characters at least 6 mm (one-quarter 

inch) high, except the ‘‘From’’ box which may be smaller. The 

name and requisition number of the receiving department must 

be used in the ‘‘Dept.’’ box and ‘‘Dept. Req. No.’’ box of shipping 

container labels in lieu of the name and requisition number 

of the ordering department. Label entries must remain clear

and legible for a period of at least 2 years under normal storage 

and warehouse conditions. 

(c) Bar Code Markings. When indicated, bar code markings 

will be required on inner packages and/or shipping containers. 

Bar code using standard 3 of 9 (Code 39) Bar Code System, 

for noncontact reading, in accordance with Military Standard

1189. The bar code label must be positioned in accordance 

with Federal Standard 123. 

(d) Shipping bundles. The information required on the facsimile label must appear in a convenient location on each shipping bundle. 

(e) Mailed shipments. A separate mailing label conforming

to postal regulations must be used for all shipments by U.S. 

mail. 

(f) Noncompliance with labeling and marking specifications 

may be cause for the Government to reject the shipment, at 

destination, and return it to the contractor at his expense. 

After giving notice of the deficiency and affording the contractor an opportunity and a reasonable time to correct, the 

Government may, at its option, relabel and/or remark in accordance with the specifications and charge all costs to the 

contractor. 

5. Deliveries. 

The contractor shall ship directly to the destinations stated 

in the specifications. Unless otherwise indicated, truck deliveries must be made at the point of destination between the

hours of 8:30 a.m. and 3:30 p.m., on Federal workdays. Shipments must be consigned as specified and the unloading and 

delivery charges borne by the contractor, and free of all charges 

for boxing, cartage, and freight, unless otherwise indicated. 

The maximum weight of any shipping crate, including contents, 

must not exceed 113.4 kg (250 pounds). When printing is delivered on skids or pallets, the gross weight of the skid and 

paper must not exceed 907.2 kg (2,000 pounds). 

6. Shipping Instructions. 

(a) The term ‘‘contractor’s city’’ is considered to be the commercial zone (as defined by the Interstate Commerce Commission) of the municipality in which the contractor’s plant is 

located. If the municipality in which the contractor is located 

is encompassed in whole, or in part, by the commercial zone 

of an adjacent larger municipality, the contractor will be 

deemed to be located in such larger municipality and the commercial zone of the larger municipality will apply. All consignments to destinations within the contractor’s city must be delivered by the specified date at the contractor’s expense. 

(b) In the event the contractor has offered prices f.o.b. destination, the GPO may, at its option, order material shipped 

(1) f.o.b. contractor’s city (and furnish Government bills of lading), (2) by parcel post, or (3) by any premium method. Upon 

exercise of such option, a deduction of the contractor’s documented bid price for shipping or, if documentation is not available, the applicable published commercial freight costs will be 

made from the voucher. An adjustment will be made for parcel 

post or any premium shipping costs prepaid by the contractor 

upon presentation with the voucher of parcel post receipts properly filled out, stamped, and/or receipted by the U.S. Postal 

Service, commercial carrier airway bill, or freight bill. Parcel 

post charges and/or freight charges must be included on Standard Form 1034 as a separate item, supported by the paid 

receipts. Such receipts cannot be returned, as they become 

a permanent part of the contract file. 

(c) In the event the contractor has offered prices f.o.b. contractor’s city, GBL’s will be furnished for all freight and express 

shipments destined outside the commercial zone of the contractor’s bidded f.o.b. point. The method of shipping and instructions for the preparation of GBL’s will be furnished with the 

GBL’s. When GBL’s are issued, the contractor is required to 

distribute them immediately after shipment in accordance with 

the accompanying instructions. 

(d) The GPO, at its option, may order the contractor to effect 

shipment via commercial bill of lading or U.S. Postal Service. 

If so directed, the contractor must prepay all charges and will 

be reimbursed for such charges upon presentation, with the 

voucher, of Postal Service receipts (properly filled out and 

stamped by the post office) or copies of each paid commercial 

carrier’s airway bill or freight bill as applicable. 

(e) Local commercial zone and f.o.b. destination deliveries 

to the GPO, its warehouses and distribution centers must be 

complete shipments to each address, received between 8:30 

a.m. and 3:30 p.m. local time, on workdays and tailgated by 

the carrier unless the rear door of the vehicle has a minimum 

height opening of 2032 mm (80 inches). 

7. Drayage and Special Charges. 

(a) Whenever shipments are made under bills of lading (Government or commercial), charges made by a carrier for delivery 

of materials to a contractor’s plant when the specifications 

provide such materials will be delivered ‘‘f.o.b. contractor’s 

city,’’ or charges made by a carrier for picking up materials 

from a contractor’s plant for delivery to designated destinations 

when the specifications provide that delivery is to be made 

‘‘f.o.b. contractor’s city,’’ are not payable by the Government 

but are payable by the contractor and if paid by the Government such costs will be recovered by deduction from the contractor’s voucher. Also, charges made by a carrier for winch 

or other special services are not payable by the Government 

but are payable by the contractor and if paid by the Government such costs will be recovered by deduction from the contractor’s voucher. 

(b) Charges for local drayage, dunnage, labor, blocking, and/ 

or bracing will be allowed when the contractor is ordered to 

combine less-than-carload shipments for two or more orders 

so as to take advantage of full carload rates. Rail shipments 

will be utilized only when full carload rates do not exceed 

truckload rates and when both the contractor and the consignee 

have rail facilities and time is not of the essence. 

8. Palletizing. 

(a) When indicated in specifications, the contractor will be 

required to furnish pallets for bulk shipments, in shipping containers, when the containers fill two layers or more on the 

pallet. 

(b) Pallets must be type III, size 2, group 2 (or group 3 

contractor’s option) made in accordance with Federal Specification NN–P–71C and any amendments thereto. Full entry must 

be on the long dimension. (See page 11.) 

(c) Material may be secured on pallet by stretch-wrap plastic, 

plastic shrink-wrap, steel strapping or plastic or nylon strap8

CTCN 01–01 

ping over edge protectors. Fasten with straps over edge protectors when the containers fill more than 2 layers on the pallet. 

Pallets shall be suitably packed so as to insure acceptance 

and safe delivery by common carrier. Maximum height allowed 

including pallet is 1397 mm (55 inches). Maximum gross 

weight is 907.2 kg (2,000 lbs). Pack flush to corners, top side 

up, label facing out, without overhang at any edge. Voids must 

be to the center of the pallet. Pack with care. Loaded pallets 

may be stored four high at destination. 

(d) Noncompliance with the palletizing specifications may be 

cause for the Government to reject the shipment at destination 

and return it to the contractor at his expense. After giving 

notice of deficiency and affording the contractor an opportunity 

and a reasonable time to correct, the Government, at its option, 

may repalletize in accordance with the specifications and 

charge all costs to the contractor. 

9. Imprints Unless Otherwise Specified. 

The contractor must set a GPO imprint in 6-point sans serif 

type, consisting of an open star and imprint followed by the 

current calendar year, an em dash, and the jacket number 

e.g., ✩ U.S. GOVERNMENT PRINTING OFFICE: 1986—000– 

000 and in cases of term contracts the print order number 

shall be included e.g., 1986—000–000/00000. The imprint must 

appear at the bottom of the last printed page on books and 

pamphlets; at the bottom of the back on face and back products; at the bottom of face only products (except letterheads, 

certificates, etc.); or in the stub of multipart sets. There shall 

be no additional charge to the Government to fulfill this requirement. Commercial identification mark(s) of any kind must 

not appear on any product ordered. 

10. Reproduction Media. 

(a) Reproduction media not required to be delivered to the 

government may, unless otherwise specified, be derived from 

camera, projection, laser, or other reproduction method, provided that the quality assurance levels and standards are met. 

(b) Films required to be delivered to the government must 

be exactly the same as the printed product and conform to 

the American Standard Specifications for Safety Photographic 

Film designated ANSI IT9.6—1991, be suitable for making 

press plates, and possess a strong, dimensionally stable base. 

Films must be wrong reading on the emulsion side. Tests will 

be conducted to determine compliance. If films do not meet 

the stated requirements the contractor will be required to remake them to conform at no additional cost to the Government. 

(1) The screen angle of all halftones appearing on any 

one page of reprint copy may not be exactly the same. Therefore, each halftone must be reproduced so as to obtain the 

best possible results without moire. Square halftones by opaquing or by applying a suitable tape that permits no light penetration. The tape must not bleed at the edges which would 

cause the negatives to stick together during normal handling 

or storage. 

(2) Opaque must be smooth, free from coarse particles, 

and must not interfere with contact in the printing frame. 

Opaque must not rub off nor smudge during normal handling 

and storage of films. 

(3) The films delivered to the Government must be the 

final films used for printing and must be suitable for making 

press plates for subsequent reprinting without any retouching, 

opaquing, surprinting, or any other hand or camera work. 

Films must be one piece for each color with all elements in 

proper position by compositing or stripping. Strips must be 

cut clean and joined so that adjoining edges meet but do not 

overlap, bind, or leave voids. Each film must contain at least 

three register marks composited (not stripped) for each color; 

the register marks must be positioned on opposite sides of 

the image. Films must have a minimum 13 mm (1/2’’) working 

margin on all four sides of the image. Register marks, jacket 

number, ‘‘ring’’ or ‘‘circle’’ folio numbers, etc., appearing on 

the copy must remain on the films, but must not print on 

the final product. Films produced by attaching pieces of film 

on goldenrod, or base films with transparent windows with 

attached illustration film, will not be accepted. 

(4) Films produced in press signatures or films containing 4-color process images, duotones, and multi-color images (type, line, or screen), must be returned to the Government in complete press signatures and must include two 

untrimmed press sheets for the entire product including color 

bars and an imposition guide which includes the following: 

APRIL 10, 2001 

type of press (sheet-fed or web), size of press sheet used, breakdown of signatures used including page counts, and page layout

for each signature.

(5) Films furnished by the Government on flats or masks

must be returned to the Government on flats or masks in 

the same condition as they were received by the contractor.v

(6) All other films furnished by the Government must

be removed from the masks or flats with all stripping materials

cleanly removed, gathered in page sequence (if applicable) and

packed flat.

(7) All films returned to the Government must be packed

carefully to ensure they are notdamaged in transit. 

11. Certificate of Conformance. 

When ‘‘Postage and Fees Paid’’ mailing labels or indicia are

used for mailing by the contractor, the contractor must complete GPO Form 712 ‘‘Certificate of Conformance,’’ which will 

be supplied by the GPO as a three-part carbon-interleaved

set. Particular emphasis is directed to the instructions printed

on the top of the certificate and to the terms and conditions

printed on the back of part 3. Contractors are advised that

the Postal Service will require postmasters to validate the certificate. 

12. Changes on Multipart Sets.

(a) Changes will be indicated and will be referred to as

Marginal (Mar), Minor (Mi), or Major (Maj).

(b) Marginal (Mar) changes are defined as the change or 

deletion of one line of words, phrases, designating letters or 

numbers, etc., not affecting the spacing of the base form. Copy 

designations appearing within 25 mm (1 inch) of the bottom

or top of the form will be restricted to three lines or less, 

all other marginal changes are restricted to one line. 

(c) Minor (Mi) changes are defined as (a) two ‘‘marginal’’ 

changes per part; (b) any deletion(s) without the insertion of 

new copy except the deletion of line(s) as provided for under 

‘‘marginal change’’; (c) any deletion(s) with the insertion of

not more than 25 mm (1 inch) of new copy in one location. 

(d) Major (Maj) changes are defined as any change which 

does not fall into the definitions of marginal or minor changes. 

(e) Not more than one change as defined above shall be 

applied to any one part. 

(f) Alignment. The printing on each form of each set manufactured must be properly aligned so that the printing will register within 0.8 mm (1⁄32-inch) when the forms are gathered 

into sets. Misregister greater than 0.8 mm (1⁄32-inch) may be 

cause for rejection. 

(g) Perforations. Stub and alignment perforations must be

such as to guarantee easy separation of all parts in one operation, but sufficient strength must be retained to prevent disengagement of any part under normal handling and shipping 

conditions. Stub perforations shall be on parts only, unless 

otherwise ordered. 

13. Timework. 

Operations which cannot be properly classified under any 

other measurable item shall be charged as timework. Generally, timework charges will not be applicable. Each item and 

the time required therefore must be indicated separately and 

fully described on or with the contractor’s voucher; otherwise, 

the charges will not be allowed. The Government Printing Office reserves the right to determine the appropriate amount 

of time to be allowed for all such charges. 

14. Departmental Random Copies (Blue Label). 

(a) Orders must be divided into equal sublots in accordance

with the chart below. A random copy must be selected from 

each sublot. Copies must not be chosen from the same general 

area in each sublot. The contractor will be required to execute 

a furnished statement certifying that copies were selected as 

directed. The random copies constitute a part of the total quantity ordered, and no additional charge will be allowed. 

Books Forms 

Number Number 

Quantity Ordered of Quantity Ordered of 

Sublots Sublots 

500–3,200 .................................. 50 12,000–35,000 ........................... 125


3,201–10,000 ............................. 80 35,001 and over ......................... 200


10,001–35,000 ........................... 125


35,001 and over ......................... 200


9

(b) These randomly selected copies must be packed separately 

and identified by a special Government-furnished blue label, 

affixed to each affected container. The container and its contents shall be recorded separately on all shipping documents 

and sent in accordance with the distribution list. 

(c) A copy of the PRINT ORDER/SPECIFICATION and a 

signed Government-furnished certificate of selection, shall be 

included. 

PROOFS 

15. General Requirements. 

(a) All proofs must be accompanied by the original GFP and 

submitted for approval when indicated in the specifications 

and/or print order, and shall be sent to the U.S. Government 

Printing Office, Contract Compliance Section, Stop PPSC, 

Washington, DC 20401, or the regional printing procurement 

office in which the order originated, unless otherwise specified. 

(b) It will be the contractor’s responsibility to perform all 

necessary proofreading to insure that all proofs are in conformity with the copy submitted. 

(c) All proofs must be collated in sets and numbered in sequence, have the proof date at the top and the jacket number 

at the bottom, both at least 13 mm (1⁄2-inch) from the type 

areas, and there must be at least a 25 mm (1 inch) clear 

margin around the type image. Contractor’s firm name must 

not appear on any proofs. All packages of proofs and manuscript MUST BE IDENTIFIED BY THE JACKET NUMBER 

AND, WHEN APPLICABLE, THE PROGRAM AND PRINT 

ORDER NUMBERS on the outside of the package. 

(d) Electrostatic or similar proofs will be acceptable for coldtype or photocomposition and shall be on clean, white paper, 

with all images clearly legible and of uniform density. Proofs 

made on dry or wet copying machines which utilize grayishcolored paper, or proofs which exhibit dirty or spotty backgrounds, pasteup shadows, or blurred, faint, or missing images 

will not be accepted. 

(e) Proofs may not be submitted in installments unless authorized in the specifications. 

(f) No additional production time will be allowed for revised 

proofs or new preproduction samples or advance copies, etc., 

that may be required due exclusively to printer’s errors. 

(g) Unless otherwise specified, the contractor must not proceed with production or print any portion of an order prior 

to receiving an ‘‘OK to proceed’’ or an ‘‘OK to print’’ from 

the Government Printing Office. 

16. Author’s Alterations. 

(a) Author’s alterations consist of all marks made by the 

author at variance with the original Government furnished 

mechanical or electronic media as submitted to the contractor, 

but do not include corrections made by the author due to the 

failure of the contractor to follow the furnished material literally. 

(b) Proof of charge. Charges for author’s alterations will not 

be honored unless the voucher which is submitted to the Government Printing Office is supported by all marked proofs, 

or facsimiles thereof, showing author’s alteration marks. 

Charges will not be allowed for proofing operations or materials 

which are due to the fuult of the contractor. 

17. Proofing Procedures. 

(a) Intermediate Operations. At each proof stage other than 

the final (reproduction proofs), the contractor will be required 

to make all marked corrections and submit the specified number of sets of proofs, accompanied by the manuscript copy or 

the last proof set received containing the author’s marks. These 

marked proofs will be returned to the contractor for billing 

purposes. 

(b) Contractor Errors. 

(1) Contractor errors consist of mistakes (i) made in variance of the original furnished media (mechanical or electronic), 

or (ii) introduced in the correction of author’s alterations. 

(2) Errors discovered and marked on proofs by Government 

personnel will not be all inclusive and shall be an indication 

only that mistakes have been introduced by the contractor. 

It is the responsibility of the contractor to determine the extent 

of the errors made and their subsequent correction. 

18. Proofs. 

(a) Photocomposition. Proofs must be on white photographic 

paper which has been fixed and washed in such manner that 

it will be commercially stable (not less than 5 years). 

(b) Coldtype Composition. Proofs may be either photoprints 

complying with the requirements for paper as listed in par. 

(b) above, or on a good grade of white paper not less than 

0.097 mm (0.0038 inch) thick. 

(c) Pasteup. Corrections, display lines, page numbers, and/ 

or running heads may be mortised (stripped) or mounted on 

the reproduction proofs using thin, double-coated adhesive tape. 

The use of cement, glue, or wax will not be accepted, except 

when mounting columns in a multi-column format. No corrections or alterations which are made by chemical opaques or 

by pasting over finished copy will be accepted. 

(d) It is the responsibility of the contractor to inspect repros/ 

camera copy to insure their suitability for use as camera copy. 

10

CTCN 01–01 APRIL 10, 2001


LABELING AND MARKING SPECIFICATIONS


INNER PACKAGES: Each inner package must be marked 

or labeled with the following: department name and requisition 

number, form number (including revision date, if any), title, 

and quantity. Mark or label boxes and wrapped packages on 

one end (never top, bottom, or sides), banded packages on the 

band, and tied packages on the chipboard or newsboard. Shrink 

film packages must be labeled, not marked, on the top or 

the end; labels may be placed inside the wrap. 

SHIPPING CONTAINERS: Each shipping container must 

have a shipping label applied to one end (not top, bottom, 

or sides). The label shall be reproduced to 200 mm x 156 

mm (77⁄8 x 61⁄8′′) from the facsimile below in black ink on 

white paper. The label must be filled in accurately and legibly, 

using bold characters at least 6 mm (1⁄4′′) high, except the 

‘‘From’’ box which may be smaller. The name and requisition 

number of the receiving department must be used in the 

‘‘Dept.’’ box and ‘‘Dept. Req. No.’’ box of shipping container 

labels in lieu of the name and requisition number of the ordering department. Label entries must remain clear and legible 

for a period of at least two years under normal warehouse 

conditions. Label information may be rearranged on shipping 

containers of such dimensions that preclude acceptance of 200 

mm x 156 mm (77⁄8 x 61⁄8′′) labels. 

SHIPPING BUNDLES: The information required in the facsimile below must appear in a convenient location on each 

shipping bundle. 

MAILED SHIPMENTS: A separate mailing label conforming 

to Postal Regulations must be used for all shipments by U.S. 

mail. 

CAUTION: Noncompliance with the labeling and marking 

specifications may be cause for the Government to reject the 

shipment, at destination, and return it to the contractor at 

his expense. After giving notice of the deficiency and affording 

the contractor an opportunity and a reasonable time to correct, 

the Government may, at its option, relabel and/or remark in 

accordance with the specifications and charge all costs to the 

contractor. 

11

12

Contract Clauses


1. Contractual Responsibility. 

Awards by GPO for printing, binding, and related services are the sole responsibility of GPO 

and not of its customer agencies. Modifications 

shall have no force or effect unless addressed before the fact to and subsequently confirmed in 

writing by the Contracting Officer. Failure to comply with this clause may be cause for nonpayment 

of additional costs incurred or rejection of the 

order. 

2. Order of Precedence. 

In the event of an inconsistency, the inconsistency shall be resolved by giving precedence in the 

following order: (a) specifications; (b) supplemental 

specifications; (c) solicitation provisions; (d) contract clauses; and (e) other provisions whether incorporated by reference or otherwise. 

3. Workday. 

(a) The term ‘‘workday’’ is defined as Monday 

through Friday of each week, exclusive of the days 

on which Federal Government holidays are observed. Also excluded are those days on which the 

Government Printing Office is not open for the 

transaction of business, such as days of national 

mourning, hazardous weather, etc. 

(b) References to ‘‘days’’ other than ‘‘workdays’’ 

shall mean calendar days. 

4. Changes. 

(a) The Contracting Officer may at any time, 

by written order, and without notice to the sureties, if any, make changes within the general scope 

of this contract in any one or more of the following: 

(1) Drawings, designs, or specifications when 

the supplies to be furnished are to be specially 

manufactured for the Government in accordance 

with the drawings, designs, or specifications. 

(2) Method of shipment or packing. 

(3) Place of delivery. 

(b) If any such change causes an increase or 

decrease in the cost of, or the time required for, 

performance of any part of the work, whether or 

not changed by the order, the Contracting Officer 

shall make an equitable adjustment in the contract price, the delivery schedule, or both, and 

shall modify the contract. 

(c) The contractor must submit any ‘‘proposal 

for adjustment’’ (hereafter referred to as proposal) 

under this clause within 30 days from the date 

of receipt of the written order. However, if the 

Contracting Officer decides that the facts justify 

it, the Contracting Officer may receive and act 

upon a proposal submitted anytime before final 

payment. 

(d) If the contractor’s proposal includes the cost 

of property made obsolete or excess by the change, 

the Contracting Officer shall have the right to prescribe the manner of the disposition of the property. 

(e) Failure to agree to any adjustment shall be 

a dispute under the Disputes clause. However, 

nothing in this clause shall excuse the contractor 

from proceeding with the contract as changed. 

5. Disputes. 

(a) Except as otherwise provided, all disputes 

concerning a question of fact arising under this 

contract which is not disposed of by agreement 

shall be decided by the Contracting Officer, who 

shall render a decision in writing and mail or otherwise furnish a copy to the contractor. 

(b) ‘‘Claim,’’ as used in this clause, means a 

written demand or written assertion by one of the 

contracting parties seeking, as a matter of right, 

the payment of money in a sum certain, the adjustment or interpretation of contract terms, or 

other relief arising under the contract. A claim 

arising under a contract is a claim that can be 

resolved under a contract clause that provides for 

the relief sought by the claimant. However, a written demand or written assertion by the contractor 

seeking the payment of money exceeding $50,000 

shall not be a claim until certified as required 

by subparagraph (c)(2) of this clause. A voucher, 

invoice, or other routine request for payment that 

is not in dispute when submitted is not a claim. 

The submission may be converted into a claim 

by complying with the submission and certification 

requirements of this clause, if it is disputed either 

as to liability or amount or is not acted upon in 

a reasonable time. 

(c)(1) A claim by the contractor shall be made 

in writing and submitted to the Contracting Officer for a written decision. A claim by the Government against the contractor shall be subject to 

a written decision by the Contracting Officer. 

13

(2)(i) Contractors shall provide the certification 

specified in subparagraph (c)(2)(iii) of this clause 

when submitting any claim exceeding $50,000. 

(ii) The certification requirement does not apply 

to issues in controversy that have not been submitted as all or part of a claim. 

(iii) The certification shall state as follows: ‘‘I 

certify that the claim is made in good faith; that 

the supporting data are accurate and complete to 

the best of my knowledge and belief; that the 

amount requested accurately reflects the contract 

adjustment for which the contractor believes the 

Government is liable; and that I am duly authorized to certify the claim on behalf of the contractor.’’ 

(3) The certification may be executed by any 

person duly authorized to bind the contractor with 

respect to the claim. 

(d) For contractor claims of $50,000 or less, the 

Contracting Officer must, if requested in writing 

by the contractor, render a decision within 60 days 

of the request. For contractor-certified claims over 

$50,000, the Contracting Officer must, within 60 

days, decide the claim or notify the contractor of 

the date by which the decision will be made. 

(e) The decision of the Contracting Officer shall 

be final and conclusive unless, within 90 days from 

the date of receipt of such copy, the contractor 

mails or otherwise furnishes a written notice of 

appeal to the Government Printing Office Board 

of Contract Appeals. 

(f) The decision of the Board shall be final and 

conclusive unless determined by a court of competent jurisdiction to have been fraudulent, capricious, or arbitrary, or so grossly erroneous as necessarily to imply bad faith, or not supported by 

substantial evidence. 

(g) In connection with any appeal under this 

clause, the contractor shall be afforded an opportunity to be heard and to offer evidence in support 

of its appeal. Pending final decision of a dispute 

hereunder, the contractor shall proceed diligently 

with performance and in accordance with the Contracting Officer’s decision. 

(h) This clause does not preclude consideration 

of law questions in connection with decisions provided for in paragraph (d); provided, that nothing 

shall be construed as making final the decision 

of any administrative official, representative, or 

board on a question of law. 

(i) The contractor shall proceed diligently with 

performance of the contract, pending final resolution of any request for relief, claim, appeal, or 

action arising under the contract, and comply with 

any decision of the contracting Officer. 

6. Subcontracts. 

(a) The contractor may make contracts with any 

other party for the furnishing of any part of the 

supplies or work called for, with the exception that 

the predominant production function required in 

the performance of the contract shall not be subcontracted. If the predominant production function 

is other than presswork, it shall be so identified 

in the specifications. 

(b) The term ‘‘Presswork’’ includes, but is not 

limited to digital imaging, laser, inkjet, and 

bublejet printing. 

7. Government Furnished Property (GFP). 

The contractor is required to examine the furnished property immediately upon receipt. If at 

that time there is disagreement with the description or the requirements as presented in the specification (or print order/GPO Form 2511), and prior 

to the performance of any work, the contractor 

shall contact the U.S. Government Printing Office, 

Central Office Printing Procurement Division, 

Washington, DC 20401, or the originating Regional Printing Procurement Office, and contest 

the description. (Failure to examine the GFP/specifications and bring any discrepancies to the attention of the Contracting Officer will not relieve the 

contractor of responsibility to perform.) The Contracting Officer will then investigate and make 

a determination which will be final. If the decision 

is reached that the original description is proper, 

the contractor will be required to proceed with 

the work. Failure to agree to the description shall 

be a dispute within the meaning of the Disputes 

clause. If the decision is reached that the description is erroneous, the Contracting Officer will proceed in one of the following manners: 

(a) In the case of sealed bids, either an equitable 

adjustment will be negotiated with the contractor 

or the order will be terminated. 

(b) In the case of a print order placed through 

a term contract, an equitable adjustment will be 

negotiated and a supplemental agreement issued. 

However, in multiple award contracts where GPO 

determines contractor sequence on each print 

order, GPO will recompute the print order sequence using the revised specifications. If this results in a different contractor having the overall 

low cost for that print order, the order may be 

terminated in accordance with the Termination for 

the Convenience of the Government clause and, 

if terminated, will be offered to the new low contractor. 

(c) The Contracting Officer may at his/her option, when requested, furnish the contractor with 

14

materials or supplies not readily obtainable in the 

open market which are required by the contractor 

for performance. In such event, the cost to the 

Government of the materials or supplies, plus any 

handling and administrative costs, shall be deducted from the contract price of the items, supplies, or work herein contracted for in such manner and at such times as the Contracting Officer 

may specify. 

8. Use of Government Furnished Property. 

The Government furnished property shall, unless otherwise provided or approved by the Contracting Officer, be used only for performance of 

the requirement. 

9. Risk of Loss. 

Unless otherwise provided, the contractor assumes the risk of, and shall be responsible for, 

any loss or damage to Government property (including U.S. Government bill(s) of lading (GBL’s)) 

provided under the contract upon receipt by its 

agent (including pickup delivery services) for delivery to the contractor or any of its subcontractors. 

The contractor shall be liable for loss, damage or 

destruction of Government property caused by its 

negligence. Should the property be destroyed or 

damaged by an act of God and the contractor used 

sound judgment in protecting it, then the contractor shall be absolved of liability. 

10. Return of Government Property. 

(a) Government furnished production media 

such as positives, negatives, artwork, camera copy, 

shall be returned to the agency upon completion 

or termination of the contract, without demand 

by the Government, at the contractor’s expense 

unless specifically provided otherwise in the specifications or by the Contracting Officer. 

(b) GBL’s shall be returned via certified mail, 

return receipt requested. 

(c) The contractor agrees to return all excess 

paper, supplies, or materials received from the 

Government resulting from overdelivery of such 

materials, more economical production than anticipated, or for any other reason, at the Government’s expense unless specifically provided otherwise. The contractor shall request advice from the 

Contracting Officer as to the disposition of the 

excess materials. The contractor warrants, in submitting a claim upon the Government, that all 

such materials, supplies, and excess paper have 

been returned to the Government. It shall be the 

responsibility of the contractor to secure evidence 

of return of such Government property in the form 

of delivery receipts signed by an authorized officer 

or agent of GPO, or any other receipt acceptable 

to the Government. 

11. Quantity Variations. 

(a) No variation in the quantity of any item 

ordered will be permitted unless authorized in the 

specifications. If authorized, the extent of the variation will also be prescribed. 

(b) Unless otherwise indicated, any plus quantity within the variation permitted must be prorated to all destinations. The contractor shall contact the Contracting Officer for direction before 

delivery of an order with an authorized minus 

quantity. 

(c) Any plus quantity of printed matter in excess 

of the permissible variation, which was printed 

on Government furnished property, is the property 

of the Government. The right to purchase overruns 

on other than Government furnished property at 

(1) a negotiated rate, or (2) the additional rate 

contained in the contract, is reserved to the Government, at its option. If, however, such overruns 

are not purchased by the Government, they shall 

be disposed of by the contractor so as to preclude 

their use for any purpose other than salvage. (See 

the clause ‘‘Reproduction of Printing Prohibited’’.) 

Requests for information regarding disposal of 

overruns must be furnished in writing to the Contracting Officer as soon as possible. Delay in requesting or receiving instructions concerning such 

overruns shall not delay shipment of the basic 

order beyond the date specified in the contract. 

(d) Notwithstanding any authorized variation in 

quantity, the contractor shall take every precaution to insure a full count of all quantities ordered for delivery to the U.S. Government Printing 

Office, Washington, D.C. 20401, marked either 

‘‘Consigned Stock,’’ ‘‘Depository Copies,’’ ‘‘Sales 

Copies,’’ ‘‘File Copies,’’ ‘‘Capitol—Hold for Binding,’’ or other ‘‘Doc Title,’’ or ‘‘Plain Titles.’’ Shortages occurring in these or other consignments will 

be cause for requiring the contractor to make up 

shortages at no additional cost to the Government. 

12. Notice of Compliance With Schedules. 

In order to successfully and adequately maintain 

progress records, GPO must have certain information concerning shipment/delivery. The contractor, 

therefore, must furnish contract compliance information required in accordance with the following: 

(a) Orders originating from the Central Office 

Printing Procurement Department. 

(1) If material, such as copy, negatives, paper, 

GBL’s, etc., to be furnished by the Government 

15

has not been received on or before the dates 

scheduled, the contractor shall immediately notify the Contract Compliance Section by telephone. (See subpar. (6) below.) 

(2) Immediately after shipment/delivery of 

proofs (if required), the contractor shall notify 

the Contract Compliance Section of the date of 

shipment/delivery and advise of the method used 

(e.g. certified mail, local delivery, etc.). 

(3) When pickup of shipments has been prearranged by the Transportation Management 

Section, the contractor must notify the Traffic 

Manager no later than 3:00 p.m. (EDT or EST) 

of the workday prior to the scheduled pickup 

day of any inability to release the completed 

product. 

(4) If shipment/delivery of the finished product 

has not been made on the scheduled date(s), 

the contractor shall immediately notify the Contract Compliance Section by telephone of the 

failure to ship/deliver as scheduled, the reasons 

for the failure, and a revised date(s) for shipment/delivery. 

(5) Immediately after shipment(s)/delivery(s) 

have been made the contractor shall notify the 

Contract Compliance Section by telephone of the 

fact and identify the method used; e.g., U.S. 

Postal Service, common carrier, local delivery 

service or contractor-owned transportation. The 

name of the contractor, GBL or freight bill number, and name of the carrier must be furnished 

in the case of shipment by common carrier; only 

the name of the company is required in the case 

of local delivery service. 

(6) Toll free WATS lines are available for use 

in making the above progress reports. The numbers for these telephone lines are set forth in 

the specifications. 

(b) Orders originating from regional printing 

procurement offices. The contractor will be furnished a preaddressed postage-free card (GPO 

Form 138). This card is to be used by the contractor to report compliance or noncompliance with 

the established schedule for shipment/delivery of 

the finished job. This card is to be completed and 

mailed the same day shipment/delivery is made. 

In the event shipment/delivery has not been made 

on the scheduled date(s), the contractor shall state 

the reason for not making shipment/delivery and 

indicate the date(s) on which it will be made. This 

card is to be completed and mailed not later than 

the day each shipment/delivery is scheduled. 

(c) Extension of schedules. 

(1) In the event a delay is caused by any action of the Government, including failure to furnish purchase/print order, copy, GBL and/or materials as scheduled, the shipping/delivery schedule will be extended automatically by the total 

number of workdays that work was delayed 

PLUS 1 workday for each day of delay; such 

period of grace for any schedule will not exceed 

3 workdays. For example: 

Order, etc., 1 workday late+1 workday grace=2 

workdays extension 

Order, etc., 2 workdays late+2 workdays 

grace=4 workdays extension 

Order, etc., 3 workdays late+3 workdays 

grace=6 workdays extension 

Order, etc., over 3 workdays late: total number 

of workdays late+3 workdays grace=total number of workdays extension. No more than 3 

workdays grace will be allowed on any one 

order. 

(2) If, as a result of Government-caused delay, 

additional time is required beyond that provided 

for in paragraph (c)(1), the contractor shall mail 

or otherwise furnish a written request to the 

Contracting Officer within 10 calendar days 

from the end of the Government-caused delay. 

If, in the opinion of the Contracting Officer, additional time beyond the 10 calendar days for 

submitting such written request is warranted, 

it may be granted. If time does not permit written notification, telephone or telegraph notification can be made. In those cases, written confirmation of the request must be promptly provided. 

(3) In the event no adjustment of schedule 

has been requested, the contractor will be considered to be delinquent if shipment/delivery has 

not been made by the date established by the 

automatic extension. 

(4) In the event an adjustment of schedule 

has been requested in writing by the contractor 

and is approved by the Contracting Officer, the 

contractor will be required to meet the adjusted 

shipping/delivery date and will be considered to 

be delinquent if it is not met. 

(5) (Applicable to contracts for Composition 

only.) In the event any of the following situations occur, and at the written request of the 

contractor, the schedule may be extended by 

such time as the Contracting Officer determines 

to be fair and reasonable: 

(i)	 Additional manuscript copy for composition 

or additional artwork is furnished. 

(ii)	 The actual units of production exceed the 

estimated number of units indicated in the 

specifications by more than 20 percent. 

16

(iii)	 Author’s alterations are excessive in the 

opinion of the Contracting Officer. 

13. Failure to Ship/Deliver Full Quantities. 

The contractor shall be considered delinquent 

on an order that ships/delivers with any shortage 

that is not authorized. 

14. Inspection and Tests. 

(a) Definition. ‘‘Supplies,’’ as used in this clause 

includes but is not limited to raw materials, components, intermediate assemblies, end products, 

and supplies by lot. 

(b) The contractor shall provide and maintain 

an inspection system acceptable to the GPO covering supplies under the contract and shall tender 

to the Government for acceptance only supplies 

that have been inspected in accordance with the 

inspection system and have been found by the contractor to be in conformity with contract requirements. As part of the system, the contractor shall 

prepare records evidencing all inspections made 

under the system and the outcome. These records 

shall be kept complete and made available to the 

GPO until expiration of the warranty period. The 

GPO may perform reviews and evaluations, as reasonably necessary to ascertain compliance with 

this paragraph, which shall be conducted in a 

manner that will not unduly delay performance. 

The right of review, whether exercised or not, does 

not relieve the contractor of contractual obligations. 

(c) The Government has the right to inspect and 

test all supplies called for, to the extent practicable, at all places and times, including the period of manufacture, and in any event before acceptance. The Government shall perform inspections and tests in a manner that will not unduly 

delay performance and assumes no contractual obligation to perform any inspection and test for the 

benefit of the contractor unless specifically set 

forth elsewhere. 

(d) If the Government performs inspection or 

test on the premises of the contractor or a subcontractor, the contractor shall furnish, and shall require subcontractors to furnish, without additional 

charge, all reasonable facilities and assistance for 

the safe and convenient performance of these duties. Except as otherwise provided, the Government shall bear the expense of Government inspections or tests made at other than the contractor’s or subcontractor’s premises; provided, that in 

case of rejection, the Government shall not be liable for any reduction in the value of inspection 

or test samples. 

(e)(1) When supplies are not ready at the time 

specified by the contractor for inspection or test 

or an unreasonable amount of time is taken to 

produce satisfactory press sheets, the Contracting 

Officer may charge to the contractor the additional 

cost of inspection or test. 

(2) The Contracting Officer may also charge the 

contractor for any additional cost of inspection or 

test when prior rejection makes reinspection or 

retest necessary. 

(f) The Government has the right either to reject 

or to require correction of nonconforming supplies. 

Supplies are nonconforming when they are defective in material or workmanship or are otherwise 

not in conformity with contract requirements. The 

Government may reject nonconforming supplies 

with or without disposition instructions. 

(g) The contractor shall, promptly after notice, 

remove supplies rejected or required to be corrected. However, the Contracting Officer may require or permit correction in place, promptly after 

notice, by and at the expense of the contractor. 

The contractor shall not tender for acceptance, corrected or rejected supplies without disclosing the 

former rejection or requirement for correction, and, 

when required, shall disclose the corrective action 

taken. 

(h) If the contractor fails to promptly remove, 

replace, or correct rejected supplies that are required to be removed or to be replaced or corrected, the Government may either: 

(1) by contract or otherwise, remove, replace, 

or correct the supplies and charge the cost to 

the contractor, or 

(2) terminate for default as provided in the 

Default clause. 

Unless the contractor corrects or replaces the supplies within the established delivery schedule, the 

Contracting Officer may require their later delivery and make an equitable price reduction. Failure 

to agree to a price reduction shall be a dispute 

concerning a question of fact within the meaning 

of the Disputes clause. 

(i)(1) If the contract provides for the performance of Government quality assurance at source, 

or if requested by the Government, the contractor 

shall furnish advance notification of the time (i) 

when contractor inspection or tests will be performed in accordance with the terms and conditions of the contract, and (ii) when the supplies 

will be ready for Government inspection. 

(2) The GPO request shall specify the period 

and method of the advance notification and the 

Government representative to whom it shall be 

furnished. 

17

(j) The Government shall accept or reject supplies as promptly as practicable after delivery, unless otherwise provided in the contract. Government failure to inspect and accept or reject the 

supplies shall not relieve the contractor from responsibility, nor impose liability on the Government, for nonconforming supplies. 

(k) Inspections and tests by the Government do 

not relieve the contractor of responsibility for defects or other failures to meet contract requirements discovered before acceptance. Acceptance 

shall be conclusive, except for latent defects, fraud, 

gross mistakes amounting to fraud, or as otherwise provided in the contract. 

(l) If acceptance is not conclusive for any of the 

reasons in paragraph (k) hereof, the Government, 

in addition to any other rights and remedies provided by law, or under other provisions of the contract, shall have the right to require the contractor 

(1) at no increase in contract price, to correct or 

replace the defective or nonconforming supplies at 

the original point of delivery or at the contractor’s 

plant at the Contracting Officer’s election, and in 

accordance with a delivery schedule as may be 

agreed upon between the contractor and the Contracting Officer; provided, that the Contracting Officer may require a reduction in the contract price 

if the contractor fails to meet such delivery schedule, or (2) within a reasonable time after receipt 

by the contractor of notice of defects or nonconformance, to repay such portion of the contract 

as is equitable under the circumstances if the Contracting Officer elects not to require correction or 

replacement. When supplies are returned to the 

contractor, the contractor shall bear the transportation cost from the original point of delivery to 

the contractor’s plant and return to the original 

point when that point is not the contractor’s plant. 

If the contractor fails to perform or act as required 

in (1) or (2) above and does not cure such failure 

within a period of 5 days (or such longer period 

as the Contracting Officer may authorize in writing) after receipt of notice from the Contracting 

Officer specifying such failure, the Government 

shall have the right by contract or othwise to replace or correct such supplies and charge to the 

contractor the cost occasioned the Government 

thereby. 

15. Warranty. 

(a) Definitions. As used in this clause— 

‘‘Acceptance’’ means the act of an authorized 

representative of the Government by which the 

Government assumes for itself, or as an agent of 

another, ownership of existing supplies, or approves specific services as partial or complete performance of the contract. 

‘‘Correction’’ means the elimination of a defect. 

‘‘Supplies’’ means the end item furnished by the 

contractor and related services required under the 

contract. The word does not include ‘‘data.’’ 

(b) Contractor’s obligations. (1) Notwithstanding 

inspection and acceptance by the Government of 

supplies furnished under the contract, or any condition of the contract concerning the conclusiveness thereof, the contractor warrants that for 120 

days from the date of the check tendered as final 

payment— 

(i) All supplies furnished under the contract 

will be free from defects in material or workmanship and will conform to all requirements 

of the contract; and 

(ii) The preservation, packaging, packing, and 

marking, and the preparation for, and method 

of, shipment of such supplies will conform with 

the requirements of the contract. 

(2) When return, correction, or replacement is 

required, transportation charges and responsibility 

for the supplies while in transit shall be borne 

by the contractor. However, the contractor’s liability for the transportation charges shall not exceed 

an amount equal to the cost of transportation by 

the usual commercial method of shipment between 

the place of delivery specified in the contract and 

the contractor’s plant, and return. 

(3) Any supplies or parts thereof, corrected or 

furnished in replacement under this clause, shall 

also be subject to the terms of this clause to the 

same extent as supplies initially delivered. The 

warranty, with respect to supplies or parts thereof, 

shall be equal in duration to that in paragraph 

(b)(1) of this clause and shall run from the date 

of delivery of the corrected or replaced supplies. 

(4) All implied warranties of merchantability 

and ‘‘fitness for a particular purpose’’ are excluded 

from any obligation contained in this clause. 

(c) Remedies available to the Government. (1) 

The Contracting Officer or his/her authorized representative shall give written notice to the contractor of any breach of warranties in paragraph 

(a)(1) above within 120 days, unless otherwise 

specified, from the date of the check tendered as 

final payment. 

(2) Within a reasonable time after the notice, 

the Contracting Officer may either— 

(i) Require, by written notice, the prompt correction or replacement of any supplies or parts 

thereof (including preservation, packaging, packing, and marking) that do not conform with the 

18

requirements of the contract within the meaning 

of paragraph (b)(1) of this clause; or 

(ii) Retain such supplies and reduce the contract price by an amount equitable under the 

circumstances. 

(3)(i) If the contract provides for inspection of 

supplies by sampling procedures, conformance of 

supplies or components subject to warranty shall 

be determined by the applicable sampling procedures in the contract. The Contracting Officer— 

(A) May, for sampling purposes, group any 

supplies delivered under the contract; 

(B) Shall require the size of the sample to 

be that required by sampling procedures specified in the contract for the quantity of supplies 

on which warranty action is proposed; 

(C) May project warranty sampling results 

over supplies in the same shipment or other supplies contained in other shipments even though 

all of such supplies are not present at the point 

of reinspection; provided, that the supplies remaining are reasonably representative of the 

quantity on which warranty action is proposed; 

and 

(D) Need not use the same lot size as on original inspection or reconstitute the original inspection lots. 

(ii) Within a reasonable time after notice of any 

breach of the warranties specified in paragraph 

(b)(1) of this clause, the Contracting Officer may 

excercise one or more of the following options: 

(A) Require an equitable adjustment in the 

contract price for any group of supplies. 

(B) Screen the supplies grouped for warranty 

action under this clause at the contractor’s expense and return all nonconforming supplies to 

the contractor for correction or replacement. 

(C) Require the contractor to screen the supplies at locations designated by the Government 

within the continental United States and to correct or replace all nonconforming supplies. 

(D) Return the supplies grouped for warranty 

action under this clause to the contractor (irrespective of the f.o.b. point or the point of acceptance) for screening and correction or replacement. 

(4)(i) The Contracting Officer may, by contract 

or otherwise, correct or replace the nonconforming 

supplies from another source and charge to the 

contractor the cost occasioned to the Government 

thereby if the contractor— 

(A) Fails to make redelivery of the corrected 

or replaced supplies within the time established 

for their return; or 

(B) Fails either to accept return of the nonconforming supplies or fails to make progress after 

their return to correct or replace them so as 

to endanger performance of the delivery schedule, and in either of these circumstances does 

not cure such failure within a period of 5 days 

(or such longer period as the Contracting Officer 

may authorize in writing) after receipt of notice 

from the Contracting Officer specifying such failure. 

(ii) Instead of correction or replacement by the 

Government, the Contracting Officer may require 

an equitable adjustment of the contract price. In 

addition, if the contractor fails to furnish timely 

disposition instructions, the Contracting Officer 

may dispose of the nonconforming supplies for the 

contractor’s account in a reasonable manner. The 

Government is entitled to reimbursement from the 

contractor, or from proceeds of such disposal, for 

the reasonable expenses of the care and disposition 

of the nonconforming supplies, as well as for excess costs incurred or to be incurred. 

(5) The rights and remedies of the Government 

provided in this clause are in addition to, and 

do not limit, any rights afforded to the Government by any other clause. 

16. Notice and Assistance Regarding Patent 

and Copyright Infringement. 

(a) The contractor shall report to the Contracting Officer, promptly and in reasonable written detail, each notice or claim of patent or copyright infringement based on performance of the 

contract of which the contractor has knowledge. 

(b) In the event of any claim or suit against 

the Government, due to alleged patent or copyright infringement arising out of performance or 

out of the use of any supplies furnished or work 

or services performed hereunder, the contractor 

shall furnish to the Government, when requested 

by the Contracting Officer, all evidence and information in possession of the contractor pertaining 

to such suit or claim. Such evidence and information shall be furnished at the expense of the contractor. 

(c) The contractor agrees to include, and require 

inclusion of this clause in all subcontracts at any 

tier for supplies or services (including those for 

material, supplies, models, samples, or design or 

testing services) expected to exceed $25,000. 

17. Patent Indemnity. 

(a) The contractor shall indemnify the Government and its officers, agents, and employees 

against liability, including costs, for infringement 

19

of any United States patent (except a patent 

issued upon an application which is now or may 

hereafter be withheld from issue pursuant to a 

secrecy order under 35 U.S.C. 181) arising out 

of the manufacture or delivery of supplies or the 

performance of services, under the contract, or out 

of the use or disposal by or for the account of 

the Government of such supplies. 

(b) This indemnity shall not apply unless the 

contractor shall have been informed as soon as 

practicable by the Government of the suit or action 

alleging such infringement, and shall have been 

given such opportunity as is afforded by applicable 

laws, rules, or regulations to participate in the 

defense thereof; and, further, such indemnity shall 

not apply if: 

(1) An infringement resulting from compliance 

with specific written instructions of the Contracting Officer directing a change in the supplies to be delivered or in the materials or equipment to be used, or directing a manner of performance of the contract not normally used by 

the contractor; or 

(2) An infringement resulting from addition 

to or change in supplies or components furnished that was made subsequent to delivery 

or performance; or 

(3) A claimed infringement is unreasonably 

settled without the consent of the contractor, 

unless required by final decree of a court of competent jurisdiction. 

18. Reproduction of Printing Prohibited. 

No printing or other work to be performed shall 

be reproduced by the contractor for sale or for 

any purpose other than that provided. 

19. Termination for the Convenience of the 

Government. 

(a) The Government from time to time may terminate performance of work in whole or in part 

if the Contracting Officer determines that a termination is in the Government’s interest. The Contracting Officer shall terminate by delivering to 

the contractor a Notice of Termination specifying 

the extent of termination and the effective date. 

(b) After receipt of a Notice of Termination, and 

except as directed by the Contracting Officer, the 

contractor shall immediately proceed with the following obligations, regardless of any delay in determining or adjusting any amounts due under 

this clause: 

(1) Stop work as specified in the notice. 

(2) Place no further subcontracts or orders (referred to as subcontracts in this clause) for materials, services, or facilities, except as necessary 

to complete the continued portion of the contract. 

(3) Terminate all subcontracts to the extent 

they relate to the work terminated. 

(4) Assign to the Government, as directed by 

the Contracting Officer, all right, title, and interest under the subcontracts terminated, in 

which case the Government shall have the right 

to settle or to pay any termination settlement 

proposal arising out of those terminations. 

(5) With approval or ratification to the extent 

required by the Contracting Officer, settle all 

outstanding liabilities and termination settlement proposals arising from the termination of 

subcontracts; the approval or ratification will be 

final for purposes of this clause. 

(6) As directed by the Contracting Officer, 

transfer title and deliver to the Government (i) 

work in process, completed work, supplies, and 

other material produced or acquired for the work 

terminated, and (ii) the completed or partially 

completed plans, drawings, information, and 

other property that, if the contract had been 

completed, would be required to be furnished 

to the Government. 

(7) Complete performance of the work not terminated. 

(8) Take any action that may be necessary, 

or that the Contracting Officer may direct, for 

the protection and preservation of property that 

is in the possession of the contractor and in 

which the Government has or may acquire an 

interest. 

(9) Use its best efforts to sell, as directed or 

authorized by the Contracting Officer, any property of the types referred to in subparagraph 

(6) above; provided, however, that the contractor 

(i) is not required to extend credit to any purchaser and (ii) may acquire the property under 

the conditions prescribed by, and at prices approved by, the Contracting Officer. The proceeds 

of any transfer or disposition will be applied 

to reduce any payments to be made by the Government, credited to the price or cost of the 

work, or paid in any other manner directed by 

the Contracting Officer. 

(10) Use its best efforts to sell, as directed 

or authorized by the Contracting Officer, termination inventory other than that retained by the 

Government under subparagraph (6) above; provided, however, that the contractor (i) is not required to extend credit to any purchaser and 

(ii) may acquire the property under the conditions prescribed by, and at prices approved by, 

20

the Contracting Officer. The proceeds of any 

transfer or disposition will be applied to reduce 

any payments to be made by the Government 

under this contract, credited to the price or cost 

of the work, or paid in any other manner directed by the Contracting Officer. 

(c) After termination, the contractor shall submit 

a final termination settlement proposal on GPO 

Form 911 to the Contracting Officer. The contractor shall submit the proposal promptly, but 

no later than 3 months from the effective date 

of termination, unless extended in writing by the 

Contracting Officer upon written request of the 

contractor within this 3-month period. However, 

if the Contracting Officer determines that the facts 

justify it, a termination settlement proposal may 

be received and acted on after 3 months from the 

effective date of termination or any extension 

thereof. If the contractor fails to submit the proposal within the time allowed, the Contracting Officer may determine, on the basis of information 

available, the amount, if any, due the contractor 

because of the termination and shall pay the 

amount determined. 

(d) Subject to paragraph (c) above, the contractor 

and the Contracting Officer may agree upon the 

whole or any part of the amount to be paid because of the termination. The amount may include 

a reasonable allowance for profit on work done. 

However, the agreed amount, whether under this 

paragraph (d) or paragraph (e) below, exclusive 

of costs shown in subparagraph (e)(3) below, may 

not exceed the total contract price as reduced by 

(1) the amount of payments previously made, and 

(2) the contract price of work not terminated. The 

contract shall be modified and the contractor paid 

the agreed amount. Paragraph (e) below shall not 

limit, restrict, or affect the amount that may be 

agreed upon to be paid under this paragraph. 

(e) If the contractor and the Contracting Officer 

fail to agree on the whole amount to be paid because of the termination of work, the Contracting 

Officer shall pay the contractor the amounts determined by the Contracting Officer as follows, but 

without duplication of any amounts agreed on 

under paragraph (d) above: 

(1) The contract price for completed supplies 

or services accepted by the Government (or sold 

or acquired under subparagraph (b)(9) above) 

not previously paid for, adjusted for any savings 

of freight and other charges. 

(2) The total of— 

(i)	 The costs incurred in the performance of 

the work terminated, including initial costs 

and preparatory expenses allocable thereto, 

but excluding any costs attributable to supplies or services paid or to be paid under 

subparagraph (e)(1) above; 

(ii)	 The cost of settling and paying termination 

settlement proposals under terminated subcontracts that are properly chargeable to 

the terminated portion of the contract if 

not included in subdivision (i) above; and 

(iii)	 A sum, as profit on subdivision (i) above, 

determined by the Contracting Officer to 

be fair and reasonable; however, if it appears that the contractor would have sustained a loss on the entire contract had 

it been completed, the Contracting Officer 

shall allow no profit under this subdivision 

(iii) and shall reduce the settlement to reflect the indicated rate of loss. 

(3) The reasonable costs of settlement of the 

work terminated, including— 

(i)	 Accounting, legal, clerical, and other expenses reasonably necessary for the preparation of termination settlement proposals 

and supporting data; 

(ii)	 The termination and settlement of subcontracts (excluding the amounts of such 

settlement); and 

(iii)	 Storage, transportation, and other costs incurred, reasonably necessary for the preservation, protection, or disposition of the termination inventory. 

(f) Except for normal spoilage, and except to the 

extent that the Government expressly assumed the 

risk of loss, the Contracting Officer shall exclude 

from the amounts payable to the contractor under 

paragraph (e) above, (1) the fair value, as determined by the Contracting Officer, of property that 

is destroyed, lost, stolen, or damaged so as to become undeliverable to the Government or to a 

buyer; and (2) the value of property that does not 

conform to contract specifications. 

(g) The cost principles and procedures of Procurement Directive 306.2 shall govern all costs 

claimed, agreed to, or determined under this 

clause. 

(h) The contractor shall have the right of appeal, 

under the Disputes clause from any determination 

made by the Contracting Officer under paragraph 

(c), (e), or (j), except that if the contractor failed 

to submit the termination settlement proposal or 

request for equitable adjustment within the time 

provided in paragraph (c) or (j), and failed to re21

quest a time extension, there is no right of appeal. 

If the Contracting Officer has made a determination of the amount due under paragraph (c), (e), 

or (j), the Government shall pay the contractor 

(1) the amount determined by the Contracting Officer if there is no right of appeal or if no timely 

appeal has been taken, or (2) the amount finally 

determined on an appeal. 

(i) In arriving at the amount due the contractor 

under this clause, there shall be deducted— 

(1) All unliquidated advance or other payments to the contractor under the terminated 

portion; 

(2) Any claim which the Government has 

against the contractor under this contract; and 

(3) The agreed price for, or the proceeds of 

sale of, materials, supplies, or other things acquired by the contractor or sold under the provisions of this clause and not recovered by or credited to the Government. 

(j) If the termination is partial, the contractor 

may file a proposal with the Contracting Officer 

for an equitable adjustment of the price(s) of the 

continued portion. The Contracting Officer shall 

make any equitable adjustment agreed upon. Any 

proposal by the contractor for an equitable adjustment under this clause shall be requested within 

90 days from the effective date of termination unless extended in writing by the Contracting Officer. 

(k)(1) The Government may, under the terms 

and conditions it prescribes, make partial payments and payments against costs incurred by the 

contractor for the terminated portion, if the Contracting Officer believes the total of these payments will not exceed the amount to which the 

contractor will be entitled. 

(2) If the total payments exceed the amount finally determined to be due, the contractor shall 

repay the excess to the Government upon demand, 

together with interest computed at the rate established by the Secretary of the Treasury under 50 

U.S.C. App. 1215(b)(2). Interest shall be computed 

for the period from the date the excess payment 

is received by the contractor to the date the excess 

is repaid. Interest shall not be charged on any 

excess payment due to a reduction in the contractor’s termination settlement proposal because of 

retention or other disposition of termination inventory until 10 days after the date of the retention 

or disposition, or a later date determined by the 

Contracting Officer because of the circumstances. 

(l) Unless otherwise provided or by statute, the 

contractor shall maintain all records and documents relating to the terminated portion for 3 

years after final settlement. This includes all 

books and other evidence bearing on the contractor’s costs and expenses. The contractor shall 

make these records and documents available to 

the Government, at the contractor’s office, at all 

reasonable times, without any direct charge. If approved by the Contracting Officer, photographs, 

microphotographs, or other authentic reproductions may be maintained instead of original 

records and documents. 

20. Default. 

(a)(1) The Government may, subject to paragraphs (c) and (d) below, by written notice of default to the contractor, terminate the contract in 

whole or in part if the contractor fails to— 

(i) Deliver the supplies or to perform the services within the time specified or any extension thereof; 

(ii) Make progress, so as to endanger performance (but see subparagraph (a)(2) below); 

or 

(iii) Perform any of the other provisions. 

(2) The Government’s right to terminate under 

subdivision (1) (ii) and (iii) above, may be exercised if the contractor does not cure such failure 

within 10 days (or such other period as the Contracting Officer may determine to be reasonable 

and authorize in writing) after receipt of the notice 

from the Contracting Officer specifying the failure. 

(b) If the Government terminates in whole or 

in part, it may acquire, under the terms and in 

the manner the Contracting Officer considers appropriate, supplies or services similar to those terminated, and the contractor will be liable to the 

Government for any excess costs for those supplies 

or services. However, the contractor shall continue 

the work not terminated. 

(c) Except for defaults of subcontractors at any 

tier, the contractor shall not be liable for any excess costs if the failure to perform arises from 

causes beyond the control and without the fault 

or negligence of the contractor. Examples of such 

causes include acts of God or of the public enemy, 

acts of the Government in either its sovereign or 

contractual capacity, fires, floods, epidemics, quarantine restrictions, strikes, freight embargoes, and 

unusually severe weather. In each instance, the 

failure to perform must be beyond the control and 

without the fault or negligence of the contractor. 

(d) If the failure to perform is caused by the 

default of a subcontractor at any tier, and if the 

cause of the default is beyond the control of both 

the contractor and subcontractor, and without the 

fault or negligence of either, the contractor shall 

22

not be liable for any excess costs for failure to 

perform unless the subcontracted supplies or services were obtainable from other sources in sufficient time for the contractor to meet the required 

delivery schedule. 

(e) If terminated for default, the Government 

may require the contractor to transfer title and 

deliver to the Government, as directed by the Contracting Officer, any completed supplies, and partially completed supplies and materials, parts, 

tools, dies, jigs, fixtures, plans, drawings, information, and contract rights (collectively referred to 

as ‘‘manufacturing materials’’ in this clause) that 

the contractor has specifically produced or acquired for the terminated portion. Upon direction 

of the Contracting Officer, the contractor shall also 

protect and preserve property in its possession in 

which the Government has an interest. 

(f) The Government shall pay the contract price 

for completed supplies delivered and accepted. The 

contractor and Contracting Officer shall agree on 

the amount of payment for manufacturing materials delivered and accepted and for the protection 

and preservation of the property. Failure to agree 

will be a dispute under the Disputes clause. The 

Government may withhold from these amounts 

any sum the Contracting Officer determines to be 

necessary to protect the Government against loss 

because of outstanding liens or claims of former 

lien holders. 

(g) If, after termination, it is determined that 

the contractor was not in default, or that the default was excusable, the rights and obligations of 

the parties shall be the same as if the termination 

had been issued for the convenience of the Government. 

(h) The rights and remedies of the Government 

in this clause are in addition to any other rights 

and remedies provided by law or under this contract. 

21. Actual Damages. 

Unless otherwise prescribed, the contractor is, 

upon failure to provide services, materials, supplies, and equipment within the time specified for 

delivery, chargeable with all expenses caused the 

Government by reason of such delays in delivery 

for which no extension of time is provided, as actual damages to the Government on account of 

such delays. Also, the contractor will be charged, 

as actual damages, for all expenses caused the 

Government occasioned by delivery of materials, 

supplies, and equipment not conforming to specifications. 

22. Liquidated Damages. 

Liquidated damages may be charged for contractor failure to ship/deliver or perform within 

the time specified, or any extension thereof, only 

if prescribed in the contract. 

(a) When such damages for delay are to be 

charged, the Government will assess, and deduct, 

not by way of penalty, liquidated damages at the 

rate specified. The damages will be computed on 

the basis of the number of workdays delayed from 

the date shipment/delivery was due to the actual 

date of shipment/delivery. 

(b) Should the contractor default on the specified 

shipping/delivery schedules, the contractor will be 

assessed liquidated damages against that part or 

parts of an order which have not been shipped/ 

delivered to the specified destination on the specified date. Liquidated damages will not be assessed 

if the contractor has shipped/delivered at least 90 

percent of the quantity ordered for shipment to 

a specified destination on or before the scheduled 

date. 

(c) When prescribed, liquidated damages will 

apply to all shipments/deliveries except the following: materials furnished the contractor which 

are to be returned to the Government; sample copies or materials for file or storage purposes; and 

shipments marked either ‘‘File Copies’’ or ‘‘Depository Copies’’ sent to the Government Printing Office. However, payment of an order will be withheld until evidence of shipment/receipt of such material or copies is furnished. 

(d) Alternatively, GPO may terminate in whole 

or in part as provided in paragraph (a) of the 

Default clause, and in that event the contractor 

shall be liable, in addition to the excess costs provided in paragraph (b) thereof, for such liquidated 

damages accruing until such time as GPO may 

reasonably obtain shipment/delivery or performance of similar supplies or services. 

(e) The contractor shall not be liable for liquidated damages when the delay arises out of 

causes beyond the control and without the fault 

or negligence of the contractor, as defined in paragraph (c) of the Default clause. In such event, 

and subject to the Disputes clause, the Contracting 

Officer shall determine the facts and extent of the 

delay. 

23. Delay in Deliveries. 

Damages shall not be applied against the contractor for delays in shipment/delivery occasioned 

by unforeseeable causes beyond the control and 

without the fault or negligence of the contractor 

as detailed in paragraph (c) of the Default clause; 

23

provided, that the contractor shall, within 10 calendar days (by telephone or telegraph, confirmed 

promptly in writing, if the remaining production 

time is less than 10 days) from the beginning of 

such delay, notify the Contracting Officer in writing of the cause of the delay; provided further, 

that such notice to the Contracting Officer shall 

contain the justification for such delay. In the 

event that Government bills of lading are furnished and the contractor elects to make more 

shipments/deliveries than provided for by the specifications or the number of bills of lading which 

are furnished, the contractor will not be relieved 

of any damages for delays in shipment/delivery 

occasioned by its failure to request additional bills 

of lading which may be required or any increased 

cost of shipment/delivery. 

24. Payments on Purchase Order. 

(a) Payment will be made to the contractor upon 

submission of a proper voucher (Standard Form 

1034, Public Voucher for Purchases and Services 

Other than Personal; GPO Form 2511, Print 

Order; or the contractor’s own invoice), in accordance with GPO Publication 300.3, Billing Instructions. Vouchers must be submitted to Comptroller—FMCE, Office of Financial Management, 

U.S. Government Printing Office, Washington, DC 

20401. The following are required in support of 

the charges: 

(1) Any of the forms listed below, properly 

filled out, signed, and dated will be accepted 

as evidence of shipment: 

(i)	 Memorandum copy of Government bill of 

lading (Standard Form 1103a), signed and 

dated by the carrier on the date material 

is picked up. The date must be the actual 

pickup date. 

(ii)	 U.S. Postal Service certificates of mailings 

(see Section 931, Domestic Mail Manual) 

or other form evidencing payment of postage which may be acceptable by the Contracting Officer, properly filled out, 

stamped, and initialed or signed by the 

postmaster or a Postal Service clerk. These 

forms must show the amount of postage 

paid, number of copies mailed, jacket number, and GPO purchase or print order numbers. 

(iii)	 Where shipments are prepaid, and reimbursement for such charges will be made 

to the contractor, the contractor must submit with its voucher U.S. Postal Service 

receipts evidencing payment of postage or 

a copy of the commercial carrier prepaid 

airway bill or freight bill. 

(iv)	 A properly executed GPO Form 712, ‘‘Certificate of Conformance,’’ for ordered products which are mailed using Governmentfurnished postage and fees paid labels. 

(v)	 A copy of the contractor’s own delivery receipt when contractor-owned transportation 

is utilized. 

(vi)	 Small parcel carrier receipts in any form 

providing the correct GPO identifiers appear on the receipt. 

(2) The following forms, filled out, signed, and 

dated will be accepted as evidence of delivery: 

(i)	 A copy of the commercial carriers’ airway 

bill or freight bill. 

(ii) U.S. Postal Service receipts. 

(iii)	 A copy of contractor’s own delivery receipt 

signed by a representative of the Government. 

(iv)	 A valid receipt from a small package carrier 

signed by a representative of the Government. 

(3) Evidence of return of plates, patterns, negatives, excess stock, and other articles supplied 

by GPO shall be in the form of delivery receipts, 

signed by a representative of the Government. 

U.S. Postal Service receipts, Government bill of 

lading memorandum copies, or copies of commercial carrier airway bills or freight bills will be 

acceptable as proof of shipment. 

(4) One completed copy of the specified product (except classified documents) only when required by the contract. 

(5) A copy of the print order or purchase order 

as applicable. 

(b) The submission of a voucher to GPO is a 

certification by the contractor that the contractor 

has furnished the supplies or services called for 

in the contract in accordance with all applicable 

requirements, and that the supplies or services 

are of the quality specified and conform in all respects with the contract requirements, including 

specifications, drawings, preservation, packaging, 

packing, marking requirements, and physical item 

identification (part or form number), and are in 

the quantity shown on the attached acceptance 

document. 

24

(c) Checks tendered by GPO in payment of any 

invoice submitted by the contractor, whether equal 

to or less than the amount invoiced, are tendered 

as final payment. Acceptance of payment of any 

check so tendered shall operate as a bar to the 

assertion of any exceptions by the contractor to 

the amount paid by GPO unless the contractor 

notifies the Contracting Officer in writing within 

60 calendar days of the date of such check. Such 

notice shall specify the exceptions taken to the 

sum tendered, and the reasons therefor. 

25. Partial Payment. 

Partial payments may be made provided vouchers are submitted in accordance with the clause 

‘‘Payments on Purchase Order,’’ and the amounts 

billed are properly supported by acceptable evidence of shipment or delivery. 

26. Payment for Accelerated Delivery. 

Reimbursement to the contractor for any additional costs incurred for accelerated delivery authorized by the Contracting Officer, shall be paid 

upon approval by GPO of the actual net increase 

in manufacturing expense. A contract modification 

(GPO Form 913) will be issued by the Contracting 

Officer authorizing a maximum amount reimbursable to the contractor. However, if the actual expense incurred is less than the authorized maximum amount, GPO’s liability shall extend to that 

lesser amount only. In the determination of actual 

expenses incurred, the Contracting Officer may require the contractor to furnish labor or other 

records which will clearly substantiate the additional expense incurred. 

27. Federal, State, and Local Taxes. 

Definition of terms used in this clause are— 

‘‘Contract date’’ means the date set for bid opening 

or, if it is a negotiated contract or a modification, 

the effective date of the contract or modification. 

‘‘All applicable Federal, State, and local taxes 

and duties’’ means all taxes and duties, in effect 

on the contract date, that the taxing authority 

is imposing and collecting on the transactions or 

property covered by the contract. 

‘‘After-imposed Federal tax’’ means any new or 

increased Federal excise tax or duty, or tax that 

was exempted or excluded on the contract date 

but whose exemption was later revoked or reduced 

during the contract period, on the transactions or 

property covered by the contract that the contractor is required to pay or bear as the result 

of legislative, judicial, or administrative action 

taking effect after the contract date. It does not 

include social security tax or other employment 

taxes. 

‘‘After-relieved Federal tax’’ means any amount 

of Federal excise tax or duty, except social security 

or other employment taxes, that would otherwise 

have been payable on the transactions or property 

covered by the contract, but which the contractor 

is not required to pay or bear, or for which the 

contractor obtains a refund or drawback, as the 

result of legislative, judicial, or administrative action taking effect after the contract date. 

(a) The contract price includes all applicable 

Federal, State, and local taxes and duties. 

(b) The contract price shall be increased by the 

amount of any after-imposed Federal tax, provided 

the contractor warrants in writing that no amount 

for such newly imposed Federal excise tax or duty 

or rate increase was included in the contract price, 

as a contingency reserve or otherwise. 

(c) The contract price shall be decreased by the 

amount of any after-relieved Federal tax. 

(d) The contract price shall be decreased by the 

amount of any Federal excise tax or duty, except 

social security or other employment taxes, that 

the contractor is required to pay or bear, or does 

not obtain a refund of, through the contractor’s 

fault, negligence, or failure to follow instructions 

of the Contracting Officer. 

(e) No adjustment shall be made in the contract 

price under this clause unless the amount of the 

adjustment exceeds $250. 

(f) The contractor shall promptly notify the Contracting Officer of all matters relating to any Federal excise tax or duty that reasonably may be 

expected to result in either an increase or decrease 

in the contract price and shall take appropriate 

action as the Contracting Officer directs. 

(g) The Government shall, without liability, furnish evidence appropriate to establish exemption 

from any Federal, State, or local tax when the 

contractor requests such evidence and a reasonable basis exists to sustain the exemption. 

28. Mandatory Information for Electronic 

Funds Transfer Payment. (May 1999) 

(a) Method of payment. Payments by the Government Printing Office under the contract, including 

invoice and contract financing payments, may be 

made by check or electronic funds transfer (EFT) 

at the option of the GPO. If payment is made 

by EFT, GPO may, at its option, also forward the 

associated payment information by electronic 

transfer. As used in this clause, the term ‘‘EFT’’ 

refers to the funds transfer and may also include 

the information transfer. 

25

(b) Mandatory submission of contractor’s EFT 

information. The contractor is required, as a condition to any payment under the contract, to provide 

GPO with the information required to make payment by EFT as described in paragraph (d) of 

this clause, unless the payment office determines 

that submission of the information is not required. 

(c) Contractor’s EFT information. Prior to submission of the first request for payment under the 

contract, the contractor shall provide the information required to make contract payment by EFT, 

as described in paragraph (d) of this clause, directly to GPO. In the event that the EFT information changes, the contractor shall be responsible 

for providing the changed information to GPO. 

(d) Required EFT information. GPO makes payment by EFT through an Automated Clearing 

House (ACH) subject to the banking laws of the 

United States. The contractor shall provide the 

EFT information on SF 3881, a copy of which can 

be obtained by calling 1-800-BILLGPO. 

(e) Suspension of payment. (1) Notwithstanding 

the provisions of any other clause of the contract, 

the Government is not required to make any payment under the contract until after receipt, by 

the designated payment office, of the correct EFT 

payment information from the contractor in accordance with paragraph (b) of this clause. Until 

receipt of the correct EFT information, any invoice 

or contract financing request shall be deemed not 

to be a valid invoice or contract financing request 

as defined in the Prompt Payment clause of the 

contract. 

(2) If the EFT information changes after submission of correct EFT information, the Government 

shall begin using the changed EFT information 

no later than the 30th day after its receipt to 

the extent payment is made by EFT. However, 

the contractor may request that no further payments be made until the changed EFT information 

is implemented by the payment office. If such suspension would result in a late payment under the 

Prompt Payment clause of the contract, the contractor’s request for suspension shall extend the 

due date for payment by the number of days of 

the suspension. 

(f) Contractor EFT arrangements. The contractor 

shall designate a single financial agent capable 

of receiving and processing the electronic funds 

transfer using the EFT methods described in paragraph (d) of this clause. The contractor shall pay 

all fees and charges for receipt and processing of 

transfers. 

(g) Liability for uncompleted or erroneous transfers. (1) If an uncompleted or erroneous transfer 

occurs because the Government failed to use contractor-provided EFT information in the correct 

manner, the Government remains responsible 

for— 

(i) Making a correct payment; 

(ii) Paying any prompt payment penalty due; 

and 

(iii) Recovering any erroneously directed 

funds. 

(2) If an uncompleted or erroneous transfer occurs because contractor-provided EFT information 

was incorrect at the time of Government release 

of the EFT payment transaction instruction to the 

Federal Reserve System, and— 

(i) If the funds are no longer under the control 

of the payment office, the Government is deemed 

to have made payment and the contractor is 

responsible for recovery of any erroneously directed funds; or 

(ii) If the funds remain under the control of 

the payment office, the Government retains the 

right to either make payment by mail or suspend the payment in accordance with paragraph 

(e) of this clause. 

(h) EFT and prompt payment. (1) A payment 

shall be deemed to have been made in a timely 

manner in accordance with the Prompt Payment 

clause of the contract if, in the EFT payment 

transaction instructions given to the Federal Reserve System, the date specified for settlement of 

the payment is on or before the prompt payment 

due date, provided the specified payment date is 

a valid date under the rules of the Federal Reserve 

System. 

(2) When payment cannot be made by EFT because of incorrect EFT information provided by 

the contractor, no interest penalty is due after 

the date of the uncompleted or erroneous payment 

transaction; provided, that notice of the defective 

EFT information is issued to the contractor within 

7 days after the Government is notified of the 

defective information. 

(i) EFT and assignment of claims. If the contractor assigns the proceeds of the contract as provided for in the Assignment of Claims clause of 

the contract, the assignee shall provide the assignee EFT information required by paragraph (d) 

of this clause. In all respects, the requirements 

of this clause shall apply to the assignee as if 

it were the contractor. EFT information which 

shows the ultimate recipient of the transfer to be 

other than the contractor, in the absence of a proper assignment of claims acceptable to the Government, is incorrect EFT information within the 

meaning of paragraph (e) of this clause. 

26

(j) Payment office discretion. If the contractor 

does not wish to receive payment by EFT methods 

for one or more payments, the contractor may submit a request to the designated payment office 

to refrain from requiring EFT information or using 

the EFT payment method. The decision to grant 

the request is solely that of the Government. 

(k) Change of EFT information by financial 

agent. The contractor agrees that the contractor’s 

financial agent may notify the Government of a 

change to the routing transit number, contractor 

account number, or account type. The Government 

shall use the changed data in accordance with 

paragraph (e)(2) of this clause. The contractor 

agrees that the information provided by the agent 

is deemed to be correct information as if it were 

provided by the contractor. The contractor agrees 

that the agent’s notice of changed EFT data is 

deemed to be a request by the contractor in accordance with paragraph (e)(2) that no further payments be made until the changed EFT information 

is implemented by the payment office. 

29. Assignment of Claims. 

(a) Pursuant to the provisions of the Assignment 

of Claims Act of 1940, as amended (31 U.S.C. 

3727, 41 U.S.C. 15) (hereinafter the act), if this 

contract provides for payments aggregating $1,000 

or more, claims for moneys due or to become due 

the contractor from the Government may be assigned to a bank, trust company, or other financial 

institution, including any Federal lending agency, 

and may thereafter be further assigned and reassigned to any such institution. 

(b) Any such assignment or reassignment shall 

cover all amounts payable and not already paid, 

and shall not be made to more than one party, 

except that any such assignment or reassignment 

may be made to one party as agent or trustee 

for two or more parties participating in such financing. 

(c) Unless otherwise provided, payments to an 

assignee of any moneys due or to become due shall 

not, to the extent provided in the act, as amended, 

be subject to reduction or setoff. (The preceding 

sentence applies only if the contract is made in 

time of war or national emergency as defined in 

the act and is with the Department of Defense, 

the General Services Administration, the Department of Energy, the National Aeronautics and 

Space Administration, the Federal Aviation Administration, or any other department or agency 

of the United States designated by the President 

pursuant to clause 4 of the proviso of sec. 1 of 

the act.) 

(d) In no event shall copies of the contract or 

of any plans, specifications, or other similar documents relating to work to be performed if marked 

‘‘Top Secret,’’ ‘‘Secret,’’ or ‘‘Confidential,’’ be furnished to any assignee of any claim arising or 

to any other person not entitled to receive the 

same. However, a copy of any part or all of the 

contract so marked may be furnished, or any information contained therein may be disclosed, to such 

assignee upon the prior written authorization of 

the Contracting Officer. 

(e) Assignment of claim forms shall be furnished 

to the Contracting Officer who awarded the contract on behalf of the GPO. 

30. Convict Labor. 

The contractor agrees not to employ in the performance of the contract any person undergoing 

a sentence of imprisonment which has been imposed by any court of a State, the District of Columbia, the Commonwealth of Puerto Rico, the 

Virgin Islands, Guam, American Samoa, the Commonwealth of the Mariana Islands, or the Trust 

Territory of the Pacific Islands. This limitation, 

however, shall not prohibit the employment by the 

contractor in the performance of the contract of 

persons on parole or probation to work at paid 

employment during the term of their sentence or 

persons who have been pardoned or who have 

served their terms. Nor shall it prohibit the employment by the contractor in the performance of 

the contract of persons confined for violation of 

the laws of any of the States, the District of Columbia, the Commonwealth of Puerto Rico, the 

Virgin Islands, American Samoa, the Commonwealth of the Mariana Islands, or the Trust Territory of the Pacific Islands who are authorized to 

work at paid employment in the community under 

the laws of such jurisdiction, if— 

(a)(1) The worker is paid or is in an approved 

work training program on a voluntary basis; 

(2) Representatives of local union central bodies 

or similar labor union organizations have been 

consulted; 

(3) Such paid employment will not result in the 

displacement of employed workers, or be applied 

in skills, crafts, or trades in which there is a surplus of available gainful labor in the locality, or 

impair existing contracts for services; and 

(4) The rates of pay and other conditions of employment will not be less than those payed or provided for work of a similar nature in the locality 

in which the work is being performed; and 

(b) The Attorney General of the United States 

has certified that the work-release laws or regula27

tions of the jurisdiction involved are in comformity 

with the requirements of executive order 11755, 

as amended by executive orders 12608 and 12943. 

31. Contract Work Hours and Safety Standards Act—Overtime Compensation. 

The contract, to the extent that it is of a character specified in the Contract Work Hours and 

Safety Standards Act (40 U.S.C. 327–334), is subject to the following provisions and to all other 

applicable provisions and exceptions of such Act 

and the regulations of the Secretary of Labor 

thereunder. 

(a) Overtime requirements. No contractor or subcontractor contracting for any part of the contract 

work which may require or involve the employment of laborers or mechanics shall require or permit such laborers or mechanics in any workweek 

in which the individual is employed on such work 

to work in excess of 40 hours in such workweek 

unless such laborer or mechanic receives compensation at a rate not less than one and onehalf times the basic rate of pay for all hours 

worked in excess of 40 hours in such workweek. 

(b) Violation, liability for unpaid wages, and liquidated damages. In the event of any violation 

of the provisions set forth in paragraph (a) of this 

clause, the contractor and any subcontractor responsible therefore shall be liable for the unpaid 

wages. In addition, such contractor and subcontractor shall be liable to the United States (in 

the case of work done under contract for the District of Columbia or a territory, to such District 

or to such territory), for liquidated damages. Such 

liquidated damages shall be computed with respect 

to each individual laborer or mechanic employed 

in violation of the provisions set forth in paragraph (a) of the contract in the sum of $10 for 

each calendar day on which such individual was 

required or permitted to work in excess of the 

standard workweek of 40 hours without payment 

of the overtime wages required by the provisions 

set forth in paragraph (a) of this clause. 

(c) Withholding for unpaid wages and liquidated 

damages. The Contracting Officer shall upon his 

or her own action or upon written request of an 

authorized representative of the Department of 

Labor withhold or cause to be withheld from any 

moneys payable on account of work performed by 

the contractor or subcontractor under any such 

contract or any other Federal contract with the 

same prime contractor, or any other federally assisted contract subject to the Contract Work Hours 

and Safety Standards Act which is held by the 

same prime contractor, such sums as may be determined to be necessary to satisfy any liabilities 

of such contractor or subcontractor for unpaid 

wages and liquidated damages as provided in the 

provisions set forth in paragraph (b) of this clause. 

(d) Payrolls and basic records. The contractor 

or subcontractor shall maintain payrolls and basic 

payroll records during the course of contract work 

and shall preserve them for a period of 3 years 

from the completion of the contract for all laborers 

and mechanics working on the contract. Such 

records shall contain the name and address of 

each such employee, social security number, correct classifications, hourly rates of wages paid, 

daily and weekly number of hours worked, deductions made, and actual wages paid. 

(2) The records to be maintained under paragraph (d)(1) of this clause shall be made available 

by the contractor or subcontractor for inspection, 

copying, or transcription by authorized representatives of the Contracting Officer or the Department 

of Labor. The contractor or subcontractor shall 

permit such reresentatives to interview employees 

during working hours on the job. 

(e) Subcontracts. The contractor or subcontractor 

shall insert in any subcontracts exceeding 

$100,000 the provisions set forth in paragraphs 

(a) through (e) of this clause and also a clause 

requiring the subcontractors to include these provisions in any lower tier subcontracts. The prime 

contractor shall be responsible for compliance by 

any subcontractor or lower tier subcontractor with 

the provisions set forth in paragraphs (a) through 

(e) of this clause. 

32. Walsh-Healey Public Contracts Act. 

If the contract is for the manufacture or furnishing of materials, supplies, articles or equipment in an amount that exceeds or may exceed 

$10,000, and is otherwise subject to the WalshHealey Public Contracts Act, as amended (41 

U.S.C. 35–45), the following terms and conditions 

apply: 

(a) All stipulations required by the Act and regulations issued by the Secretary of Labor (41 CFR 

Chapter 50) are incorporated by reference. These 

stipulations are subject to all applicable rulings 

and interpretations of the Secretary of Labor that 

are now, or may hereafter, be in effect. 

(b) All employees whose work relates to this contract shall be paid not less than the minimum 

wage prescribed by regulations issued by the Secretary of Labor (41 CFR 50–202.2). Learners, student learners, apprentices, and handicapped workers may be employed at less than the prescribed 

minimum wage (see 41 CFR 50–202.3) to the same 

28

extent that such employment is permitted under 

Section 14 of the Fair Labor Standards Act (41 

U.S.C. 40). 

33. Equal Opportunity. 

(a) If, during any 12-month period (including 

the 12 months preceding award), the contractor 

has been or is awarded nonexempt Federal contracts and/or subcontracts that have an aggregate 

value in excess of $10,000, the contractor shall 

comply with subparagraphs (b) (1) through (11) 

below. Upon request, the contractor shall provide 

information necessary to determine the applicability of this clause. 

(b) During performance, the contractor agrees 

as follows: 

(1) The contractor shall not discriminate 

against any employee or applicant for employment because of race, color, religion, sex, or national origin. 

(2) The contractor shall take affirmative action 

to ensure that applicants are employed, and that 

employees are treated during employment, without regard to their race, color, religion, sex, or 

national origin. This shall include, but not be 

limited to: 

(i) employment, 

(ii) upgrading, 

(iii) demotion, 

(iv) transfer, 

(v) recruitment or recruitment advertising, 

(vi) layoff or termination, 

(vii) rates of pay or other forms of compensation, 

and 

(viii) selection for training, including apprenticeship. 

(3) The contractor shall post in conspicuous 

places available to employees and applicants for 

employment the notices to be provided by the 

Contracting Officer that explain this clause. 

(4) The contractor shall, in all solicitations or 

advertisement for employees placed by or on behalf of the contractor, state that all qualified 

applicants will receive consideration for employment without regard to race, color, religion, sex, 

or national origin. 

(5) The contractor shall send, to each labor 

union or representative of workers with which 

it has a collective-bargaining agreement or other 

contract or understanding, the notice to be provided by the Contracting Officer advising the 

labor union or workers’ representative of the 

contractor’s commitments under this clause, and 

post copies of the notice in conspicuous places 

available to employees and applicants for employment. 

(6) The contractor shall comply with Executive 

Order 11246, as amended, and the rules, regulations, and orders of the Secretary of Labor. 

(7) The contractor shall furnish to GPO all 

information required by Executive Order 11246, 

as amended, and by the rules, regulations, and 

orders of the Secretary of Labor. Standard Form 

100 (EEO–1), or any successor form, is the prescribed form to be filed within 30 days following 

the award, unless filed within 12 months preceding the date of award. 

(8) The contractor shall permit access to its 

books, records, and accounts by the Contracting 

Officer for the purposes of investigation to ascertain the contractor’s compliance with the applicable rules, regulations, and orders. 

(9) If the Contracting Officer determines that 

the contractor is not in compliance with this 

clause or any rule, regulation, or order of the 

Secretary of Labor, this contract may be canceled, terminated, or suspended in whole or in 

part and the contractor may be declared ineligible for further Government contracts, under 

the procedures authorized in Executive Order 

11246, as amended. In addition, sanctions may 

be imposed and remedies invoked against the 

contractor as provided in Executive Order 

11246, as amended, the rules, regulations, and 

orders of the Secretary of Labor, or as otherwise 

provided by law. 

(10) The contractor shall include the terms 

and conditions of subparagraph (b)(1) through 

(11) of this clause in every subcontract or purchase order that is not exempted by the rules, 

regulations, or orders of the Secretary of Labor 

issued under Executive Order 11246, as amended, so that these terms and conditions will be 

binding upon each subcontractor or vendor. 

(11) The contractor shall take such action with 

respect to any subcontract or purchase order as 

the Contracting Officer may direct as a means 

of enforcing these terms and conditions, including sanctions for noncompliance; provided, that 

if the contractor becomes involved in, or is 

threatened with, litigation with a subcontractor 

or vendor as a result of any direction, the contractor may request the United States to enter 

into the litigation to protect the interests of the 

United States. 

(c) Notwithstanding any other clause in this contract, disputes relative to this clause will be governed by the procedures in 41 CFR 60–1.1. 

29

34. Nondiscrimination Because of Age. 

During performance, the contractor agrees to 

conform to the provisions of the Age Discrimination in Employment Act of 1967 (Public Law 90– 

202, 29 U.S.C. 621, et. seq., as amended) and the 

regulations issued pursuant thereto by the Secretary of Labor (Title 29 CFR, Part 1625). 

35. Affirmative Action for Workers With Disabilities. 

This clause applies to all nonexempt contracts 

and subcontracts over $2,500. 

(a) General. (1) Regarding any position for which 

the employee or applicant for employment is qualified, the contractor shall not discriminate against 

any employee or applicant because of physical or 

mental handicap. The contractor agrees to take 

affirmative action to employ, advance in employment, and otherwise treat qualified individuals 

with disabilities without discrimination based 

upon their physical or mental disability in all employment practices such as— 

(i) Recruitment, advertising, and job application procedures; 

(ii) Hiring, upgrading, promotion, award of 

tenure, demotion, transfer, layoff, termination, 

right of return from layoff, and rehiring; 

(iii) Rates of pay or any other form of compensation and changes in compensation; 

(iv) Job assignments, job classifications, organizational structures, position descriptions, lines 

of progression, and seniority lists; 

(v) Leaves of absence, sick leave, or any other 

leave; 

(vi) Fringe benefits available by virtue of employment, whether or not administered by the 

contractor; 

(vii) Selection and financial support for training, including apprenticeships, professional 

meetings, conferences, and other related activities, and selection for leaves of absence to pursue training; 

(viii) Activities sponsored by the contractor, 

including social or recreational programs; and 

(ix) Any other term, condition, or privilege of 

employment. 

(2) The contractor agrees to comply with the 

rules, regulations, and relevant orders of the Secretary of Labor (Secretary) issued under the Rehabilitation Act of 1973 (29 U.S.C. 793) (the Act), 

as amended. 

(b) 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 individuals with disabilities; 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. The contractor shall ensure 

that applicants and employees with disabilities are 

informed of the contents of the notice (e.g., the 

contractor may have the notice read to a visually 

disabled individual, or may lower the posted notice 

so that it might be read by a person in a wheelchair). The notices shall be in a form prescribed 

by the Deputy Assistant Director for Federal Contract Compliance of the U.S. Department of Labor 

(Deputy Assistant Director), and shall be 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 Section 503 of the Act and is committed 

to take affirmative action to employ, and advance 

in employment, qualified individuals with physical 

or mental disabilities. 

(c) 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. 

(d) Subcontracts. The contractor shall include 

the terms of this clause in every subcontract or 

purchase order in excess of $10,000 unless exempted by rules, regulations, or orders of the Secretary. 

The contractor shall act as specified by the Deputy 

Assistant Secretary to enforce the terms, including 

action for noncompliance. 

36. Affirmative Action for Special Disabled 

and Vietnam Era Veterans. 

This clause is applicable if the contract is for 

$10,000 or more. 

(a) Definitions. As used in this clause— 

‘‘All employment openings’’ includes all positions 

except executive and top management positions, 

those positions that will be filled from within the 

contractor’s organization, and positions lasting 3 

days or less. This term includes full-time employment, temporary employment of more than 3 days’ 

duration, and part-time employment. 

‘‘Appropriate office of the State employment 

service system’’ means the local office of the Federal-State national system of public employment 

offices with assigned responsibilities to serve the 

area where the employment opening is to be filled, 

including the District of Columbia, Guam, the 

30

Commonwealth of Puerto Rico, and the Virgin Islands. 

‘‘Positions that will be filled from within the 

contractor’s organization’’ means employment 

openings for which no consideration will be given 

to persons outside the contractor’s organization 

(including any affiliates, subsidiaries, and parent 

companies) and includes any opening that the contractor proposes to fill from regularly established 

‘‘recall’’ lists. The exception does not apply to a 

particular opening once an employer decides to 

consider applicants outside of its organization. 

‘‘Veteran of the Vietnam era’’ means a person 

who— 

(1) Served on active duty for a period of more 

than 180 days, any part of which occurred between August 5, 1964, and May 7, 1975, and 

was discharged or released therefrom with other 

than a dishonorable discharge; or 

(2) Was discharged or released from active 

duty for a service-connected disability if any 

part of such active duty was performed between 

August 5, 1964, and May 7, 1975. 

(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 disabled 

veteran or a veteran of the Vietnam era. The contractor agrees to take affirmative action to employ, 

advance in employment, and otherwise treat qualified disabled veterans and veterans of the Vietnam 

era 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 Veteran’s Readjustment Assistance Act 

of 1972 (the Act), as amended. 

(c) Listing openings. (1) The contractor agrees 

to list all 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 the 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 employment openings with the appropriate 

office of the State employment service. 

(3) The listing of 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. 

(d) Applicability. (1) This clause does not apply 

to the listing of employment openings that occur 

and are filled outside the 50 States, the District 

of Columbia, the Commonwealth of Puerto Rico, 

Guam, and the Virgin Islands. 

(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 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 Deputy Assistant Secretary for 

Federal Contract Compliance Programs, Department of Labor (Deputy Assistant Secretary), 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 affirma31

tive action to employ, and advance in employment, 

qualified disabled veterans and veterans of the 

Vietnam era. 

(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 Deputy 

Assistant Secretary to enforce the terms, including 

action for noncompliance. 

37. Buy American Act. 

The Buy American Act (41 U.S.C. §§ 10a–10d) 

provides that the Government give preference to 

domestic end products. 

(a) 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 (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 the products referred to in subparagraphs (b) (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 the 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). 

(b) The contractor shall deliver only domestic 

end products, except those— 

(1) For use outside the United States; 

(2) That the Government determines are not 

mined, produced, or manufactured in the United 

States in sufficient and reasonably available 

quantities of a satisfactory quality; 

(3) For which the Public Printer determines 

that domestic preference would be inconsistent 

with the public interest; or 

(4) For which the Public Printer determines 

the cost to be unreasonable. 

(c) The offered price of a domestic end product 

will be determined unreasonable by the Public 

Printer when the lowest acceptable domestic offer 

exceeds the lowest acceptable foreign offer, inclusive of duty, by— 

(1) More than 6 percent, if the domestic offer 

is from a large business that is not a labor surplus area concern; or 

(2) More than 12 percent, if the domestic offer 

is from a small business concern or any labor 

surplus area concern. 

38. Advertising of Award Prohibited. 

It shall be strictly understood and agreed that 

all contracts will be treated confidentially in every 

respect and that the contractor shall refrain from 

the use of its imprint, label, and any other publicity or advertising concerning the furnishing of 

articles to the Government. 

39. Maintenance of Records on Recovered 

Materials in Paper Products. 

The contractor shall maintain manufacturer/mill 

accounting and record summaries on the fiber 

weight content used as feedstock, for purposes of 

Government audit, that will verify (a) the contractor’s certification of the minimum percentage of 

recovered materials used in performance of the 

contract, (b) that the paper and paper products 

are in compliance with the specification requirements, and (c) the paper is manufactured in accordance with the Environmental Protection Agency Paper Products Recovered Materials Advisory 

Notice (61 FR 26985, May 29, 1996) whether the 

products are manufactured by the contractor or 

another paper mill. The contractor, if not the manufacturer, shall obtain this information from the 

paper manufacturer. The contractor shall maintain, and make available to the Government, these 

documents for one year after the expiration of the 

contract. Nothing in this clause shall excuse the 

contractor from furnishing the specified paper. 

40. Examination of Records. 

(a) This clause applies if the contract exceeds 

$10,000 and was entered into by negotiation. 

(b) The GPO Office of Inspector General or 

Comptroller General of the United States (or a 

duly authorized representative from the General 

Accounting Office) shall, until 3 years after final 

payment, have access to and the right to examine 

any of the contractor’s directly pertinent books, 

documents, papers, or other records involving 

transactions related to the contract. 

(c) The contractor agrees to include in first-tier 

subcontracts, a clause to the effect that the GPO 

32

Office of Inspector General or Comptroller General 

(or a duly authorized representative from the General Accounting Office) shall, until 3 years after 

final payment under the subcontract, have access 

to and the right to examine any of the subcontractor’s directly pertinent books, documents, papers, 

or other records involving transactions related to 

the subcontract. ‘‘Subcontract,’’ as used in this 

clause, excludes (1) purchase orders not exceeding 

$10,000, and (2) subcontracts or purchase orders 

for public utility services at rates established to 

apply uniformly to the public, plus any applicable 

reasonable connection charge. 

(d) The period of access and examination in 

paragraphs (b) and (c) above for records relating 

to (1) appeals under the Disputes clause, (2) litigation or settlement of claims arising from the performance, or (3) costs and expenses to which the 

Inspector General or Comptroller General (or a 

duly authorized representative from the General 

Accounting Office) has taken exception shall continue until such appeals, litigation, claims, or exceptions are disposed of. 

41. Audit and Records—Sealed Bidding. 

This clause is effective when the contract 

amount exceeds $100,000: 

(a) As used in this clause, ‘‘records’’ includes 

books, documents, accounting procedures and practices, and other data, regardless of type and regardless of whether such items are in written 

form, in the form of computer data, or in any 

other form. 

(b) Cost or pricing data. If the contractor has 

submitted cost or pricing data in connection with 

the pricing of any modification to the contract, 

the Contracting Officer or an authorized representative of the Contracting Officer, in order to evaluate the accuracy, completeness, and currency of 

the cost or pricing data, shall have the right to 

examine and audit all of the contractor’s records, 

including computations and projections, related 

to— 

(1) The proposal for the modification; 

(2) The discussions conducted on the proposal(s), including those related to negotiating; 

(3) Pricing of the modification; or 

(4) Performance of the modification. 

(c) Comptroller General/GPO Inspector General. 

In the case of pricing any modification, the GPO 

Office of Inspector General or Comptroller General 

of the United States, or authorized representatives, shall have the same rights as specified in 

paragraph (b) of this clause. 

(d) Availability. The contractor shall make available at its office at all reasonable times the materials described in paragraph (a) of this clause, for 

examination, audit, or reproduction, until 3 years 

after final payment under the contract: 

(1) If the contract is completely or partially 

terminated, the records relating to the work terminated shall be made available for 3 years 

after any resulting final termination settlement. 

(2) Records pertaining to appeals under the 

Disputes clause or to litigation or the settlement 

of claims arising under the performance of the 

contract shall be made available until disposition of such appeals, litigation, or claims. 

(e) The contractor shall insert a clause containing all the provisions of this clause, including 

this paragraph (e), in all subcontracts expected 

to exceed $50,000 for submission of cost or pricing 

data, altering the clause only as necessary to identify properly the contracting parties and the GPO 

under the Government prime contract. 

42. Price Reduction for Defective Cost or 

Pricing Data—Modifications—Sealed Bidding. 

(a) This clause shall become operative only for 

any modification to the contract involving aggregate increases and/or decreases in costs, plus applicable profits, expected to exceed $100,000 except 

that this clause does not apply to a modification 

for which the price is— 

(1) Based on adequate price competition; 

(2) Based on established catalog or market 

prices of commercial items sold in substantial 

quantities to the general public; or 

(3) Set by law or regulation. 

(b) If any price, including profit, negotiated in 

connection with any modification under this 

clause, was increased by any significant amount 

because (1) the contractor or a subcontractor furnished cost or pricing data that were not complete, 

accurate, and current as certified in its Certificate 

of Current Cost or Pricing Data, (2) a subcontractor or prospective subcontractor furnished the 

contractor cost or pricing data that were not complete, accurate, and current as certified in the contractor’s Certificate of Current Cost or Pricing 

Data, or (3) any of these parties furnished data 

of any description that were not accurate, the price 

shall be reduced accordingly and the contract shall 

be modified to reflect the reduction. This right 

to a price reduction is limited to that resulting 

from defects in data relating to modifications for 

which this clause becomes operative under paragraph (a) of this clause. 

33

(c) Any reduction in the contract price under 

paragraph (b) of this clause due to defective data 

from a prospective subcontractor that was not subsequently awarded the subcontract shall be limited 

to the amount, plus applicable overhead and profit 

markup, by which (1) the actual subcontract or 

(2) the actual cost to the contractor, if there was 

no subcontract, was less than the prospective subcontract cost estimate submitted by the contractor; 

provided, that the actual subcontract price was 

not itself affected by defective cost or pricing data. 

(d)(1) If the Contracting Officer determines 

under paragraph (b) of this clause that a price 

or cost reduction should be made, the contractor 

agrees not to raise the following matters as a defense: 

(i) The contractor or subcontractor was a sole 

source supplier or otherwise was in a superior 

bargaining position and thus the price of the 

contract would not have been modified even if 

accurate, complete, and current cost or pricing 

data had been submitted. 

(ii) The Contracting Officer should have 

known that the cost or pricing data in issue 

were defective even though the contractor or 

subcontractor took no affirmative action to bring 

the character of the data to the attention of 

the Contracting Officer. 

(iii) The contract was based on an agreement 

about the total cost of the contract and there 

was no agreement about the cost of each item 

procured under the contract. 

(iv) The contractor or subcontractor did not 

submit a certificate of current cost or pricing 

data. 

(2)(i) Except as prohibited by subparagraph 

(d)(2)(ii) of this clause, an offset in an amount 

determined appropriate by the Contracting Officer 

based upon the facts shall be allowed against the 

amount of a contract price reduction if— 

(A) The contractor certifies to the Contracting 

Officer that, to the best of the contractor’s 

knowledge and belief, the contractor is entitled 

to the offset in the amount requested; and 

(B) The contractor proves that the cost or pricing data were available before the date of agreement on the price of the contract (or price of 

the modification) and that the data were not 

submitted before such date. 

(ii) An offset shall not be allowed if— 

(A) The understated data was known by the 

contractor to be understated when the certificate 

of current cost or pricing data was signed; or 

(B) The Government proves that the facts 

demonstrate that the contract price would not 

have increased in the amount to be offset even 

if the available data had been submitted before 

the date of agreement on price. 

(e) If any reduction in the contract price under 

this clause reduces the price of items for which 

payment was made prior to the modification reflecting the price reduction, the contractor shall 

be liable to and shall pay the United States at 

the time such overpayment is repaid— 

(1) Simple interest on the amount of such 

overpayment to be computed from the date(s) 

of overpayment to the contractor to the date 

the Government is repaid by the contractor at 

the applicable underpayment rate effective for 

each quarter prescribed by the Secretary of the 

Treasury under 26 U.S.C. 6621(a)(2); and 

(2) A penalty equal to the amount of the overpayment, if the contractor or subcontractor 

knowingly submitted cost or pricing data which 

were incomplete, inaccurate, or noncurrent. 

43. Audit—Negotiation. 

(a) Examination of costs. If the contract is a 

cost-reimbursement, incentive, time-and-materials, 

labor-hour, or price-redeterminable contract, or 

any combination of these, the contractor shall 

maintain—and the Contracting Officer, or a representative who is an employee of the Government, shall have the right to examine and audit— 

books, records, documents, and other evidence and 

accounting procedures and practices, sufficient to 

reflect properly all costs claimed to have been incurred or anticipated to be incurred in performing 

the contract. This right of examination shall include inspection at all reasonable times of the contractor’s plants, or parts of them, engaged in performing the contract. 

(b) Cost or pricing data. If, pursuant to law, 

the contractor has been required to submit cost 

or pricing data in connection with pricing the contract or any modification to the contract, the Contracting Officer, or representatives of the Contracting Officer who are employees of the Government, shall have the right to examine and audit 

all books, records, documents, and other data of 

the contractor (including computations and projections) related to negotiating, pricing, or performing 

the contract or modification, in order to evaluate 

the accuracy, completeness, and currency of the 

cost or pricing data. The right of examination shall 

extend to all documents necessary to permit adequate evaluation of the cost of pricing data submitted, along with the computations and projections used. 

34

CTCN 01–01 

(c) Reports. If the contractor is required to furnish cost, funding, or performance reports, the 

Contracting Officer, or representatives of the Contracting Officer who are employees of the Government, shall have the right to examine and audit 

books, records, other documents, and supporting 

materials, for the purpose of evaluating (1) the 

effectiveness of the contractor’s policies and procedures to produce data compatible with the objectives of these reports and (2) the data reported. 

(d) Availability. The contractor shall make available at its office at all reasonable times the materials described in paragraphs (a) and (b) above, 

for examination, audit, or reproduction, until 3 

years after final payment under the contract— 

(1) If the contract is completely or partially 

terminated, the records relating to the work terminated shall be made available for 3 years 

after any resulting final termination settlement; 

and 

(2) Records relating to appeals under the Disputes clause or to litigation of the settlement 

of claims arising under the contract shall be 

made available until such appeals, litigation, or 

claims are disposed of. 

(e) The contractor shall insert a clause containing all the terms of this clause, including this 

paragraph (e), in all subcontracts over $50,000 

under the contract, altering the clause only as necessary to identify properly the contracting parties 

and the Contracting Officer under the Government 

prime contract. 

44. Gratuities. 

(a) The right of the contractor to proceed may 

be terminated by written notice if, after notice 

and hearing, the Public Printer or a designee determines that the contractor, its agent, or another 

representative— 

(1) Offered or gave a gratuity (e.g., an entertainment or gift) to an officer, official, or employee of the Government; and 

(2) Intended, by the gratuity, to obtain a contract or favorable treatment under a contract. 

(b) The facts supporting this determination may 

be reviewed by any court having lawful jurisdiction. 

(c) If the contract is terminated under paragraph 

(a) above, the Government is entitled— 

(1) To pursue the same remedies as in a 

breach of the contract; and 

(2) In addition to any other damages provided 

by law, to exemplary damages of not less than 

3 nor more than 10 times the cost incurred by 

the contractor in giving gratuities to the person 

APRIL 10, 2001 

concerned, as determined by the Public Printer 

or a designee. (This subparagraph (c)(2) is applicable only if the contract uses money appropriated to the Department of Defense.) 

(d) 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 the contract. 

45. Covenant Against Contingent Fees. 

(a) The contractor warrants that no person or 

agency has been employed or retained to solicit 

or obtain the contract upon an agreement or understanding for a contingent fee, except a bona 

fide employee or agency. For breach or violation 

of this warranty, the Government shall have the 

right to annul the contract without liability or, 

in its discretion, to deduct from the contract price 

or consideration, or otherwise recover, the full 

amount of the contingent fee. 

(b) ‘‘Bona fide agency,’’ as used in this clause, 

means an established commercial or selling agency, maintained by a contractor for the purpose 

of securing business, that neither exerts nor proposes to exert improper influence to solicit or obtain Government contracts nor holds itself out as 

being able to obtain any Government contract or 

contracts through improper influence. 

‘‘Bona fide employee,’’ as used in this clause, 

means a person, employed by a contractor and 

subject to the contractor’s supervision and control 

as to time, place, and manner of performance, who 

neither exerts nor proposes to exert improper influence to solicit or obtain Government contracts 

nor holds out as being able to obtain any Government contract or contracts through improper influence. 

‘‘Contingent fee,’’ as used in this clause, means 

any commission, percentage, brokerage, or other 

fee that is contingent upon the success that a person or concern has in securing a Government contract. 

‘‘Improper influence,’’ as used in this clause, 

means any influence that induces or tends to induce a Government employee or officer to give consideration or to act regarding a Government contract on any basis other than the merits of the 

matter. 

46. Contract Cost Principles and Procedures. 

When required, contracts shall be subject to 

GPO Instruction 305.9, Contract Cost Principles 

and Procedures, dated May 25, 1999. 

35

47. Joint Ventures. 

The Government will recognize the integrity and 

validity of contractor team arrangements only for 

contracts valued in excess of $25,000. Agreements 

shall be in writing and signed by all parties to 

a joint venture and contain the following before 

acceptance by the Government: 

(a) The agreement shall give the Government 

the right to enforce the terms of the contract 

against the coventurers on a joint and/or severable 

basis. 

(b) The agreement must contain a statement 

from the attorney for each venturer that the joint 

venture is within the corporate power of each venturer. 

(c) One party to the joint venture shall have 

total control of all phases of contract performance. 

Control must include delegated authority to fix 

the responsibilities of the other coventurers. 

(d) One party to the joint venture must perform 

the contract primary production function. All other 

parties must perform at least one of the remaining 

production functions as described in the solicitation. 

(e) Invoices for all phases of contract performance must be submitted by only one party to the 

joint venture. All payments will be made in the 

name of the joint venture. 

(f) The agreement should identify each venturer’s contribution toward contract completion 

such as materials, personnel, and expenses. 

(g) The joint venture agreement must be limited 

solely to the objective of the contract. 

(h) A copy of the executed agreement must be 

submitted with the proposal or bid. 

48. Protest After Award. (May 1999) 

(a) Upon receipt of a notice of protest (as defined 

in section 3 of GPO Instruction 305.7) or a determination that a protest is likely (see section 4(d) 

of GPO Instruction 305.7), the Contracting Officer 

may, by written order to the contractor, direct the 

contractor to stop performance of the work called 

for by the contract. The order shall be specifically 

identified as a stop-work order issued under this 

clause. Upon receipt of the order, the contractor 

shall immediately comply with its terms and take 

all reasonable steps to minimize the incurrence 

of costs allocable to the work covered by the order 

during the period of work stoppage. Upon receipt 

of the final decision in the protest, the Contracting 

Officer shall either— 

(1) Cancel the stop-work order; or 

(2) Terminate the work covered by the order 

as provided in the Default, or the Termination 

for Convenience of the Government, clause of 

the contract. 

(b) If a stop-work order issued under this clause 

is canceled either before or after a final decision 

in the protest, the contractor shall resume work. 

The Contracting Officer shall make an equitable 

adjustment in the delivery schedule or contract 

price, or both, and the contract shall be modified, 

in writing, accordingly, if— 

(1) The stop-work order results in an increase 

in the time required for, or in the contractor’s 

cost properly allocable to, the performance of 

any part of the contract; and 

(2) The contractor asserts its right to an adjustment within 30 days after the end of the 

period of work stoppage; provided that, if the 

Contracting Officer decides the facts justify the 

action, the Contracting Officer may receive and 

act upon a proposal at any time before final 

payment under the contract. 

(c) If a stop-work order is not canceled and the 

work covered by the order is terminated for the 

convenience of the Government, the Contracting 

Officer shall allow reasonable costs resulting from 

the stop-work order in arriving at the termination 

settlement. 

(d) If a stop-work order is not canceled and the 

work covered by the order is terminated for default, the Contracting Officer shall allow, by equitable adjustment or otherwise, reasonable costs resulting from the stop-work order. 

(e) The Government’s rights to terminate the 

contract at any time are not affected by action 

taken under this clause. 

(f) If, as a result of the contractor’s intentional 

misstatement, misrepresentation, or 

miscertification, a protest related to the contract 

is sustained and the Government pays costs, as 

provided in 4(c)(2) or 6(h)(1) of GPO Instruction 

305.7, the Government may require the contractor 

to reimburse the Government the amount of such 

costs. In addition to any other remedy available, 

the Government may collect this debt by offsetting 

the amount against any payment due the contractor under any contract between the contractor 

and the Government. 

49. Anti-Kickback Procedures. (May 1999) 

(a) Definitions. 

‘‘Kickback,’’ as used in this clause, means any 

money, fee, commission, gratuity, thing of value, 

or compensation of any kind which is provided, 

directly or indirectly, to any prime contractor, 

prime contractor employee, subcontractor, or subcontractor employee for the purpose of improperly 

36

CTCN 01–01 

obtaining or rewarding favorable treatment in connection with a prime contract or in connection 

with a contract relating to a prime contract. 

‘‘Person,’’ as used in this clause, means a corporation, partnership, business association of any 

kind, trust, joint-stock company, or individual. 

‘‘Prime contract,’’ as used in this clause, means 

a contract or contractual action entered into by 

the United States for the purpose of obtaining supplies, materials, equipment, or services of any 

kind. 

‘‘Prime contractor,’’ as used in this clause, means 

a person who has entered into a prime contract 

with the United States. 

‘‘Prime contractor employee,’’ as used in this 

clause, means any officer, partner, employee, or 

agent of a prime contractor. 

‘‘Subcontract,’’ as used in this clause, means a 

contract or contractual action entered into by a 

prime contractor or subcontractor for the purpose 

of obtaining supplies, materials, equipment, or 

services of any kind under a prime contract. 

‘‘Subcontractor,’’ as used in this clause, (1) 

means any person, other than the prime contractor, who offers to furnish or furnishes any supplies, materials, equipment, or services of any kind 

under a prime contract or a subcontract entered 

into in connection with such prime contract, and 

(2) includes any person who offers to furnish or 

furnishes general supplies to the prime contractor 

or a higher tier subcontractor. 

‘‘Subcontractor employee,’’ as used in this clause, 

means any officer, partner, employee, or agent of 

a subcontractor. 

(b) The Anti-Kickback Act of 1986 (41 U.S.C. 

51–58) (the Act), prohibits any person from— 

(1) Providing or attempting to provide or offering to provide any kickback; 

(2) Soliciting, accepting, or attempting to accept any kickback; or 

(3) Including, directly or indirectly, the 

amount of any kickback in the contract price 

charged by a prime contractor to the United 

States or in the contract price charged by a subcontractor to a prime contractor or higher tier 

subcontractor. 

(c)(1) The contractor shall have in place and follow reasonable procedures designed to prevent and 

detect possible violations described in paragraph 

(b) of this clause in its own operations and direct 

business relationships. 

(2) When the contractor has reasonable grounds 

to believe that a violation described in paragraph 

(b) of this clause may have occurred, the contractor shall promptly report in writing the posAPRIL 10, 2001 

sible violation. Such reports shall be made to the 

GPO inspector general or the Department of Justice. 

(3) The contractor shall cooperate fully with any 

Federal agency investigating a possible violation 

described in paragraph (b) of this clause. 

(4) The Contracting Officer may (i) offset the 

amount of the kickback against any monies owed 

by the United States under the prime contract 

and/or (ii) direct that the prime contractor withhold from sums owed a subcontractor under the 

prime contract the amount of the kickback. The 

Contracting Officer may order that monies withheld under subparagraph (c)(4)(ii) of this clause 

be paid over to the Government unless the Government has already offset those monies under 

subparagraph (c)(4)(i) of this clause. In either case, 

The prime contractor shall notify the Contracting 

Officer when the monies are withheld. 

(5) The contractor agrees to incorporate the substance of this clause, including subparagraph (c)(5) 

but excepting subparagraph (c)(1), in all subcontracts under contracts exceeding $100,000. 

50. Bankruptcy. (May 1999) 

In the event the contractor enters into proceedings relating to bankruptcy, whether voluntary or involuntary, the contractor agrees to furnish, by certified mail or electronic commerce 

method authorized by the contract, written notification of the bankruptcy to the Contracting Officer 

responsible for administering the contract, This 

notification shall be furnished within 5 days of 

the initiation of the proceedings relating to bankruptcy filing. This notification shall include the 

date on which the bankruptcy petition was filed, 

the identity of the court in which the bankruptcy 

petition was filed, and a listing of Government 

contract numbers and contracting offices for all 

Government contracts against which final payment has not been made. This obligation remains 

in effect until final payment under the contract. 

51. Cancellation, Recission, and Recovery of 

Funds for Illegal or Improper Activity. (May 

1999) 

This clause is prescribed for contracts that exceed $100,000. 

(a) If the Government receives information that 

a contractor or a person has engaged in conduct 

constituting a violation of subsection (a), (b), (c), 

or (d) of Section 27 of the Office of Federal Procurement Policy Act (41 U.S.C. 423) (the Act), as 

amended by section 4304 of the 1996 National De37

fense Authorization Act for Fiscal Year 1996 (Pub. 

L. 104–106), the Government may— 

(1) Cancel the solicitation, if the contract has 

not yet been awarded or issued; or 

(2) Rescind the contract with respect to 

which— 

(i)	 The contractor or someone acting for the 

contractor has been convicted for an offense 

where the conduct constitutes a violation 

of subsection 27(a) or (b) of the Act for the 

purpose of either— 

(A) Exchanging the information covered 

by such subsections for anything of value; 

or 

(B) Obtaining or giving anyone a competitive advantage in the award of a Federal 

agency procurement contract; or 

(ii)	 The head of the contracting activity has determined, based upon a preponderance of 

the evidence, that the contractor or someone acting for the contractor has engaged 

in conduct constituting an offense punishable under subsections 27(e)(1) of the Act. 

(b) If the Government rescinds the contract 

under paragraph (a) of this clause, the Government is entitled to recover, in addition to any penalty prescribed by law, the amount expended 

under the contract. 

(c) The rights and remedies of the Government 

specified herein are not exclusive, and are in addition to any other rights and remedies provided 

by law, regulation, or under this contract. 

52. Price or Fee Adjustment for Illegal or Improper Activity. (May 1999) 

This clause is prescribed for contracts that exceed $100,000. 

(a) The Government, at its election, may reduce 

the price of a fixed-price type contract and the 

total cost and fee under a cost-type contract by 

the amount of profit or fee determined as set forth 

in paragraph (b) of this clause if the head of the 

contracting activity or designee determines that 

there was a violation of subsection 27(a), (b), or 

(c) of the Office of Federal Procurement Policy Act, 

as amended (41 U.S.C. 423), as implemented in 

section 3.104 of the Federal Acquisition Regulation. 

(b) The price or fee reduction referred to in paragraph (a) of this clause shall be— 

(1) For cost-plus-fixed-fee contracts, the 

amount of the fee specified in the contract at 

the time of award; 

(2) For cost-plus-incentive-fee contracts, the 

target fee specified in the contract at the time 

of award, notwithstanding any minimum fee or 

‘‘fee floor’’ specified in the contract; 

(3) For cost-plus-award-fee contracts— 

(i)	 The base fee established in the contract at 

the time of contract award; 

(ii)	 If no base fee is specified in the contract, 

30 percent of the amount of each award 

fee otherwise payable to the contractor for 

each award fee evaluation period or at each 

award fee determination point. 

(4) For fixed-price-incentive contracts, the 

Government may— 

(i)	 Reduce the contract target price and contract target profit both by an amount equal 

to the initial target profit specified in the 

contract at the time of contract award; or 

(ii)	 If an immediate adjustment to the contract 

target price and contract target profit 

would have a significant adverse impact on 

the incentive price revision relationship 

under the contract, or adversely affect the 

contract financing provisions, the Contracting Officer may defer such adjustment 

until establishment of the total final price 

of the contract. The total final price established in accordance with the incentive 

price revision provisions of the contract 

shall be reduced by an amount equal to 

the initial target profit specified in the contract at the time of contract award and 

such reduced price shall be the total final 

contract price. 

(5) For firm-fixed-price contracts, by 10 percent of the initial contract price or a profit 

amount determined by the Contracting Officer 

from records or documents in existence prior to 

the date of the contract award. 

(c) The Government may, at its election, reduce 

a prime contractor’s price or fee in accordance with 

the procedures of paragraph (b) of this clause for 

violations of the Act by its subcontractors by an 

amount not to exceed the amount of profit or fee 

reflected in the subcontract at the time the subcontract was first definitively priced. 

(d) In addition to the remedies in paragraphs 

(a) and (c) of this clause, the Government may 

terminate the contract for default. The rights and 

remedies of the Government specified herein are 

not exclusive, and are in addition to any other 

rights and remedies provided by law or under the 

contract. 

38

CTCN 01–01 APRIL 10, 2001 

53. Restrictions on Subcontractor Sales to the under the contract or under any follow-on producGovernment. (May 1999) tion contract. 

(a) Except as provided in paragraph (b) of this (b) The prohibition in (a) of this clause does 

clause, the contractor shall not enter into any not preclude the contractor from asserting rights
 agreement with an actual or prospective subcon- that are otherwise authorized by law or regulation.
 tractor, nor otherwise act in any manner, which (c) The contractor agrees to incorporate the sub-
 has or may have the effect of restricting sales stance of this clause, including this paragraph (c),
 by such subcontractors directly to the Government in all subcontracts under this contract which ex-
 of any item or process (including computer soft-


ware) made or furnished by the subcontractor ceed $100,000.


39